Bill Text: NY A09059 | 2011-2012 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing 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, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).
Spectrum: Committee Bill
Status: (Passed) 2012-03-30 - signed chap.59 [A09059 Detail]
Download: New_York-2011-A09059-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing 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, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).
Spectrum: Committee Bill
Status: (Passed) 2012-03-30 - signed chap.59 [A09059 Detail]
Download: New_York-2011-A09059-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
9059--C
I N A S S E M B L Y
January 17, 2012
___________
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 -- again reported from said committee with
amendments, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
erty tax law relating to oil and gas charges, in relation to the
effective date of such chapter (Part A); to amend the real property
tax law, the tax law, the administrative code of the city of New York
and the state finance law, in relation to the suspension of STAR
exemptions and related benefits of persons who are delinquent in the
payment of outstanding state tax liabilities (Part B); to amend the
tax law, in relation to reforming excise tax on tobacco products,
imposing a fixed rate of tax on loose tobacco, and imposing a retail
tax on cigars (Part C); 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 (Part D);
to amend the tax law, in relation to making technical amendments to
the tax treatment of diesel fuel to reflect industry practice (Part
E); to amend the tax law, in relation to the power of the commissioner
of taxation and finance to refuse to issue a certificate of authority
to collect the sales and compensating use taxes imposed by article 28
of the tax law and pursuant to the authority of article 29 of the tax
law (Part F); to amend the tax law and part U of chapter 61 of the
laws of 2011, amending the real property tax law, the general munici-
pal law, the public officers law, the tax law, the abandoned property
law, the state finance law and the administrative code of the city of
New York, relating to establishing standards for electronic real prop-
erty tax administration, allowing 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, improving sales tax compliance and
repealing certain provisions of the tax law and the administrative
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12674-04-2
A. 9059--C 2
code of the city of New York relating thereto, in relation to making
permanent provisions relating to mandatory electronic filing of tax
documents and improving sales tax compliance; and to repeal certain
provisions of the tax law and the administrative code of the city of
New York relating thereto (Part G); to amend the tax law, in relation
to the personal income tax credits for solar energy systems equipment
and the sales and use tax exemption provided for such equipment (Part
H); to amend the tax law, in relation to extending the empire state
commercial production tax credit; and to amend part V of chapter 62 of
the laws of 2006 relating to the empire state commercial production
tax credit, in relation to the effectiveness thereof (Part I); to
amend the public housing law, in relation to the credit against income
tax for persons or entities investing in low-income housing (Part J);
to amend the tax law, in relation to extending the biofuel production
tax credit; and to amend part X of chapter 62 of the laws of 2006,
amending the tax law relating to providing tax credits for biofuel
production plants, in relation to the effectiveness thereof (Part K);
to amend chapter 58 of the laws of 2006, relating to providing an
enhanced earned income tax credit, in relation to the effectiveness
thereof (Part L); to amend the civil practice law and rules and the
debtor and creditor law, in relation to prohibiting banking insti-
tutions from deducting levy processing fees from tax and child support
levy proceeds (Part M); to amend the tax law, in relation to tax rates
and exclusions under the metropolitan commuter transportation mobility
tax for professional employer organizations and to amend part B of
chapter 56 of the laws of 2011 amending the tax law relating to the
tax rates and exclusions under the metropolitan commuter transporta-
tion mobility tax, in relation to the effectiveness thereof (Part N);
to amend the racing, pari-mutuel wagering and breeding law, in
relation to licenses for simulcast facilities, sums relating to track
simulcast, simulcast of out-of-state thoroughbred races, simulcasting
of races run by out-of-state harness tracks and distributions of
wagers; to amend chapter 281 of the laws of 1994 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and 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; to amend the racing, pari-mutuel
wagering and breeding law, in relation to extending certain provisions
thereof (Part O); intentionally omitted (Part P); to amend the tax law
and the administrative code of the city of New York, in relation to
facilitating the compliance of room remarketers with their obligation
to collect sales tax on their sales of occupancy (Part Q); to amend
the tax law, in relation to providing tax relief to working families
(Part R); to amend the tax law, in relation to program six certified
capital companies and to repeal section 84 of part A of chapter 62 of
the laws of 2011 relating to constituting chapter 18-A of the consol-
idated laws relating to financial services, relating to making certain
provisions permanent (Part S); intentionally omitted (Part T); to
amend the labor law, in relation to the deadline for employer applica-
tions to the New York youth tax credit program (Part U); to amend
section 12 of part AA of chapter 57 of the laws of 2010, amending the
administrative code of the city of New York relating to the hotel room
occupancy tax, in relation to making certain amendments to the hotel
room occupancy tax apply retroactively (Part V); to amend the tax law,
in relation to emerging technologies tax credits (Part W); to amend
A. 9059--C 3
the tax law and the administrative code of the city of New York, in
relation to transitional provisions relating to the enactment and
implementation of the federal Gramm-Leach-Bliley act (Part X); and to
amend the tax law, in relation to video lottery gaming (Part Y)
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 2012-2013
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through Y. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes a reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Section 2 of chapter 540 of the laws of 1992, amending the
14 real property tax law relating to oil and gas charges, as amended by
15 section 1 of part II of chapter 56 of the laws of 2009, is amended to
16 read as follows:
17 S 2. This act shall take effect immediately and shall be deemed to
18 have been in full force and effect on and after April 1, 1992; provided,
19 however that any charges imposed by section 593 of the real property tax
20 law as added by section one of this act shall first be due for values
21 for assessment rolls with tentative completion dates after July 1, 1992,
22 and provided further, that this act shall remain in full force and
23 effect until March 31, [2012] 2015, at which time section 593 of the
24 real property tax law as added by section one of this act shall be
25 repealed.
26 S 2. This act shall take effect immediately and shall be deemed to
27 have been in full force and effect on and after April 1, 2012.
28 PART B
29 Section 1. Subdivision 3 of section 425 of the real property tax law
30 is amended by adding a new paragraph (f) to read as follows:
31 (F) COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S ELIGIBILITY
32 FOR THE STAR EXEMPTION MUST NOT BE SUSPENDED PURSUANT TO SECTION ONE
33 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW DUE TO THE PAST-DUE STATE TAX
34 LIABILITIES OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY PROVISION
35 OF LAW TO THE CONTRARY, WHERE A PROPERTY'S ELIGIBILITY FOR A STAR
36 EXEMPTION HAS BEEN SUSPENDED PURSUANT TO SUCH SECTION, THE FOLLOWING
37 PROVISIONS SHALL BE APPLICABLE:
38 (I) THE PROPERTY SHALL BE INELIGIBLE FOR A BASIC OR ENHANCED STAR
39 EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
40 ANCE OF NOTICE BY THE DEPARTMENT OF THE SUSPENSION OF ITS ELIGIBILITY
41 FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
42 BLE TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH A
43 PROPERTY ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR OTHER
A. 9059--C 4
1 PERSON HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED TO
2 IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
3 (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
4 OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
5 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
6 IN THE MANNER PRESCRIBED BY SUCH SECTION. NEITHER AN ASSESSOR NOR A
7 BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER SUCH A CHAL-
8 LENGE.
9 (III) THE PROPERTY SHALL REMAIN INELIGIBLE FOR THE STAR EXEMPTION
10 UNTIL THE DEPARTMENT NOTIFIES THE ASSESSOR THAT THE SUSPENSION OF ITS
11 ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE
12 EXEMPTION MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT THE
13 ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.
14 (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
15 STAR EXEMPTION PURSUANT TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
16 THIS SECTION, A SUSPENSION OF A STAR EXEMPTION DUE TO A TAXPAYER'S
17 PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON
18 THE COOPERATIVE APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
19 BY THAT TAXPAYER.
20 S 2. The tax law is amended by adding a new section 171-y to read as
21 follows:
22 S 171-Y. ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES THROUGH THE
23 SUSPENSION OF ELIGIBILITY FOR STAR EXEMPTIONS. 1. THE COMMISSIONER IS
24 HEREBY AUTHORIZED TO DEVELOP A PROGRAM TO COLLECT DELINQUENT STATE TAX
25 LIABILITIES FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY OF
26 PROPERTIES FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY OWNERS
27 HAVE PAST-DUE STATE TAX LIABILITIES. FOR THE PURPOSES OF THIS SECTION,
28 THE TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT LIMITED
29 TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
30 FEE ADMINISTERED BY THE COMMISSIONER THAT IS OWED BY A TAXPAYER; THE
31 TERM "PAST-DUE STATE TAX LIABILITY" OR "PAST-DUE STATE TAX LIABILITIES"
32 MEANS ANY STATE TAX LIABILITY OR LIABILITIES WHICH HAVE BECOME FIXED AND
33 FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE
34 OR JUDICIAL REVIEW AND FOR WHICH THE TAXPAYER HAS NOT MADE PAYMENT
35 ARRANGEMENTS FOR THAT LIABILITY SATISFACTORY TO THE COMMISSIONER; THE
36 TERM "TAXPAYER" SHALL MEAN THE INDIVIDUAL RESPONSIBLE FOR THE PAYMENT OF
37 ANY OF THE PAST-DUE STATE TAX LIABILITIES; AND THE TERM "STAR EXEMPTION"
38 MEANS THE EXEMPTION FROM REAL PROPERTY TAXATION AUTHORIZED BY SECTION
39 FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
40 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE ADMINISTRATION
41 OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
42 (A) THE CRITERIA FOR IDENTIFYING TAXPAYERS WITH PAST-DUE STATE TAX
43 LIABILITIES.
44 (B) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL DETERMINE WHETHER
45 PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
46 (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
47 THAT THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL BE
48 SUSPENDED UNLESS THEY EITHER SATISFY THEIR PAST-DUE STATE TAX LIABIL-
49 ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
50 DATE TO BE SPECIFIED IN THE NOTICE.
51 (D) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS OF
52 PROPERTIES WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED DUE
53 TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
54 (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
55 ON A PROSPECTIVE BASIS BY EITHER SATISFYING THEIR PAST-DUE STATE TAX
A. 9059--C 5
1 LIABILITIES OR MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMIS-
2 SIONER.
3 (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
4 THE SUSPENSION OF A PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION HAS
5 BEEN LIFTED.
6 (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
7 NATE AND EXECUTE THEIR OBLIGATIONS PURSUANT TO THIS SECTION AND PARA-
8 GRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF
9 THE REAL PROPERTY TAX LAW.
10 (H) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL APPLY A TAXPAYER'S
11 LOSS IN STAR BENEFITS AS AN OFFSET TO SUCH TAXPAYER'S PAST-DUE STATE TAX
12 LIABILITY.
13 (I) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL REDUCE NET STAR BENE-
14 FITS BY PAST-DUE STATE TAX LIABILITIES.
15 (J) ANY OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY TO CARRY
16 OUT THE PROVISIONS OF THIS SECTION.
17 3. THE DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST FORTY-FIVE DAYS
18 PRIOR TO THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR OF THE
19 SUSPENSION OF THE ELIGIBILITY FOR THE STAR EXEMPTION OF PROPERTY WHICH
20 IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
21 (A) SUCH NOTICE SHALL INCLUDE A STATEMENT THAT THE DEPARTMENT WILL
22 NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE ELIGIBILITY FOR THE STAR
23 EXEMPTION OF PROPERTY WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER UNLESS
24 THE TAXPAYER FULLY SATISFIES THE OUTSTANDING STATE TAX LIABILITIES OR
25 OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
26 ACCORDANCE WITH LAW. HOWEVER, IN ANY CASE WHERE A TAXPAYER FAILS TO
27 COMPLY WITH THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT AS DESCRIBED
28 HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
29 IMMEDIATELY NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE PROPERTY'S
30 ELIGIBILITY FOR THE STAR EXEMPTION.
31 (B) SUCH NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY FOR THE
32 TAXPAYER TO PAY THE PAST-DUE LIABILITY, MAKE PAYMENT ARRANGEMENTS OR
33 OTHERWISE REQUEST ADDITIONAL INFORMATION.
34 (C) SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO PROTEST
35 THE NOTICE IS LIMITED TO RAISING ISSUES THAT CONSTITUTE A MISTAKE OF
36 FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
37 (D) SUCH NOTICE SHALL ALSO INCLUDE A STATEMENT THAT THE SUSPENSION OF
38 THE PROPERTY'S STAR EXEMPTION WILL CONTINUE UNTIL THE TAXPAYER HAS
39 SATISFIED HIS OR HER PAST-DUE STATE TAX LIABILITIES OR HAS MADE PAYMENT
40 ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER, AND THAT THE PROPERTY
41 WILL BE PERMANENTLY INELIGIBLE FOR THE STAR EXEMPTION FOR ANY SCHOOL
42 YEARS THAT COMMENCE WHILE ITS ELIGIBILITY FOR THE STAR EXEMPTION IS
43 SUSPENDED.
44 (E) SUCH NOTICE MAY ALSO INCLUDE ANY OTHER INFORMATION THAT THE
45 COMMISSIONER DEEMS NECESSARY.
46 4. IF THE TAXPAYER FAILS TO SATISFY HIS OR HER PAST-DUE STATE TAX
47 LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
48 FIED IN THE NOTICE, THE DEPARTMENT SHALL NOTIFY THE ASSESSOR OF THE
49 SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
50 5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE NOTICE ISSUED BY
51 THE DEPARTMENT PURSUANT TO THIS SECTION FOR THE PURPOSE OF SUSPENDING
52 THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
53 BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED IN
54 THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
55 ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE
56 AGAINST THE DEPARTMENT OR ASSESSOR REGARDING SUCH SUSPENSION. FOR THE
A. 9059--C 6
1 PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT" IS LIMITED TO CLAIMS
2 THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
3 PAST-DUE STATE TAX LIABILITIES WERE SATISFIED; OR (III) THE DEPARTMENT
4 INCORRECTLY FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE TERMS
5 OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
6 PERIOD FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION. HOWEVER,
7 NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
8 RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX HUNDRED
9 FIFTY-FOUR OF THIS CHAPTER TO THE EXTENT THAT HE OR SHE IS ELIGIBLE
10 PURSUANT TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT THE
11 ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED BY THE
12 FILING OF A PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978 (TITLE
13 ELEVEN OF THE UNITED STATES CODE).
14 6. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE DEPART-
15 MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
16 ANY TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE STAR
17 EXEMPTION PURSUANT TO THIS SECTION AND PARAGRAPH (F) OF SUBDIVISION
18 THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW
19 AND A DESCRIPTION OF SUCH PROPERTY.
20 7. ACTIVITIES TO COLLECT STATE TAX LIABILITIES UNDERTAKEN BY THE
21 DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
22 OR IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT
23 OR ENFORCE PAST-DUE STATE TAX LIABILITIES UNDER ANY OTHER APPLICABLE
24 PROVISION OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX LIABIL-
25 ITY INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT TO
26 PARAGRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE
27 OF THE REAL PROPERTY TAX LAW AND THIS SECTION SHALL BE APPLIED AS AN
28 OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABIL-
29 ITY.
30 S 3. Subsection (e) of section 697 of the tax law is amended by adding
31 a new paragraph 3-b to read as follows:
32 (3-B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS
33 SUBSECTION, THE COMMISSIONER MAY DISCLOSE TO ASSESSORS THE INFORMATION
34 DESCRIBED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER THAT IS
35 NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROPER IDENTIFICATION
36 OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO OWNS PROPERTY WITH
37 A STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSUANT TO SUCH SECTION
38 AND PARAGRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED
39 TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
40 S 4. The tax law is amended by adding a new section 1304-E to read as
41 follows:
42 S 1304-E. RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE STATE
43 TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABILITY, AS
44 THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAP-
45 TER, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
46 SUCH TAXPAYER UNDER SECTION THIRTEEN HUNDRED FOUR OF THIS ARTICLE FOR
47 THE TAXABLE YEAR SHALL BE RECALCULATED BY THE COMMISSIONER SO AS TO
48 REDUCE OR ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE
49 HUNDRED EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN, AS
50 ADJUSTED PROVIDED THAT THE AMOUNT THAT A TAXPAYER'S CITY PERSONAL INCOME
51 TAX LIABILITY MAY BE INCREASED AS A RESULT OF THE RECALCULATION OF THE
52 APPLICABLE TAX RATE PURSUANT TO THIS SECTION, SHALL BE LIMITED TO THE
53 AMOUNT OF SUCH TAXPAYER'S PAST-DUE STATE TAX LIABILITY. SUCH RECALCU-
54 LATION SHALL BE TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER MAY
55 ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT
56 OF SUCH RECALCULATION. THE AMOUNT BY WHICH A TAXPAYER'S CITY PERSONAL
A. 9059--C 7
1 INCOME TAX LIABILITY INCREASES AS A RESULT OF THE RECALCULATION OF THE
2 APPLICABLE TAX RATE PURSUANT TO THIS SECTION SHALL BE APPLIED AS AN
3 OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABIL-
4 ITY.
5 S 5. Paragraph 1 of subsection (e) of section 1310 of the tax law, as
6 amended by section 3 of part A of chapter 56 of the laws of 1998, is
7 amended to read as follows:
8 (1) For taxable years beginning after nineteen hundred ninety-seven, a
9 state school tax reduction credit shall be allowed as provided in the
10 following tables. The credit shall be allowed against the taxes author-
11 ized by this article reduced by the credits permitted by this article.
12 If the credit exceeds the tax as so reduced, the taxpayer may receive,
13 and the comptroller, subject to a certificate of the commissioner, shall
14 pay as an overpayment, without interest, the amount of such excess. For
15 purposes of this subsection, no credit shall be granted to (A) an indi-
16 vidual with respect to whom a deduction under subsection (c) of section
17 one hundred fifty-one of the internal revenue code is allowable to
18 another taxpayer for the taxable year, OR (B) A TAXPAYER WHO OWES A
19 PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS DEFINED IN SECTION ONE
20 HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER, THAT IS EQUAL TO OR GREATER THAN
21 THE STATE SCHOOL TAX REDUCTION CREDIT AMOUNT, ON THE LAST DAY OF THE
22 TAXABLE YEAR PROVIDED THAT IF A TAXPAYER OWES A PAST-DUE STATE TAX
23 LIABILITY THAT IS LESS THAN THE STATE SCHOOL TAX REDUCTION CREDIT
24 AMOUNT, SUCH TAX CREDIT SHALL BE GRANTED IN AN AMOUNT THAT IS REDUCED BY
25 THE AMOUNT OF THE PAST-DUE STATE TAX LIABILITY. IF A TAXPAYER WITH A
26 PAST-DUE STATE TAX LIABILITY CLAIMS THIS CREDIT, ANY AMOUNT OWED AS A
27 RESULT OF THE DENIAL OF THIS CREDIT SHALL BE TREATED AS A MATHEMATICAL
28 ERROR AND THE COMMISSIONER MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER
29 FOR SUCH AMOUNT. THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY
30 INCREASES AS A RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS
31 SECTION SHALL BE APPLIED AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAY-
32 ER'S PAST-DUE STATE TAX LIABILITY.
33 S 6. The administrative code of the city of New York is amended by
34 adding a new section 11-1704.2 to read as follows:
35 S 11-1704.2 RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE
36 STATE TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABIL-
37 ITY, AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THE
38 TAX LAW, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
39 SUCH TAXPAYER UNDER SECTION 11-1701 OF THIS SUBCHAPTER FOR THE TAXABLE
40 YEAR SHALL BE RECALCULATED BY THE COMMISSIONER OF TAXATION AND FINANCE
41 SO AS TO REDUCE OR ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY
42 CHAPTER THREE HUNDRED EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINE-
43 TY-SEVEN, AS ADJUSTED, PROVIDED THAT THE AMOUNT THAT A TAXPAYER'S CITY
44 PERSONAL INCOME TAX LIABILITY MAY BE INCREASED AS A RESULT OF THE RECAL-
45 CULATION OF THE APPLICABLE TAX RATE PURSUANT TO THIS SECTION, SHALL BE
46 LIMITED TO THE AMOUNT OF SUCH TAXPAYER'S PAST-DUE STATE TAX LIABILITY.
47 SUCH RECALCULATION SHALL BE TREATED AS A MATHEMATICAL ERROR AND THE
48 COMMISSIONER OF TAXATION AND FINANCE MAY ISSUE A NOTICE AND DEMAND TO
49 THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT OF SUCH RECALCULATION. THE
50 AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT
51 OF THE RECALCULATION OF THE APPLICABLE TAX RATE PURSUANT TO THIS SECTION
52 SHALL BE APPLIED AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S
53 PAST-DUE STATE TAX LIABILITY.
54 S 7. Paragraph 1 of subdivision (c) of section 11-1706 of the adminis-
55 trative code of the city of New York, as amended by section 6 of part A
56 of chapter 56 of the laws of 1998, is amended to read as follows:
A. 9059--C 8
1 (1) For taxable years beginning after nineteen hundred ninety-seven, a
2 state school tax reduction credit shall be allowed as provided in the
3 following tables. The credit shall be allowed against the taxes author-
4 ized by this article reduced by the credits permitted by this article.
5 If the credit exceeds the tax as so reduced, the taxpayer may receive,
6 and the comptroller, subject to a certificate of the commissioner, shall
7 pay as an overpayment, without interest, the amount of such excess. For
8 purposes of this subdivision, no credit shall be granted to (A) an indi-
9 vidual with respect to whom a deduction under subsection (c) of section
10 one hundred fifty-one of the internal revenue code is allowable to
11 another taxpayer for the taxable year, OR (B) A TAXPAYER WHO OWES A
12 PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS DEFINED IN SECTION ONE
13 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW, ON THE LAST DAY OF THE TAXABLE
14 YEAR. IF A TAXPAYER WITH A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
15 CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
16 BE TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER OF TAXATION AND
17 FINANCE MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT.
18 THE AMOUNT BY WHICH A TAXPAYER'S CITY PERSONAL INCOME TAX LIABILITY
19 INCREASES AS A RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS
20 SECTION SHALL BE APPLIED AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAY-
21 ER'S PAST-DUE STATE TAX LIABILITY.
22 S 8. Paragraph (a) of subdivision 3 of section 54-f of the state
23 finance law, as added by section 139 of part A of chapter 389 of the
24 laws of 1997, is amended to read as follows:
25 (a) The amount of such reimbursement shall be estimated by the commis-
26 sioner of taxation and finance on or before December first of the year
27 preceding the state fiscal year during which such amount is to be paid
28 begins. The commissioner shall use the best available information at his
29 or her disposal to estimate such amount. In addition to such methods and
30 information the commissioner may use in making such estimate, he or she
31 shall consult with the city department of finance during the preparation
32 of the determination of such amount. SUCH REIMBURSEMENT SHALL DISREGARD
33 THE AMOUNT OF BENEFITS RECALCULATED PURSUANT TO SECTION THIRTEEN HUNDRED
34 FOUR-E OF THE TAX LAW AND CREDITS DENIED PURSUANT TO PARAGRAPH ONE OF
35 SUBSECTION (E) OF SECTION THIRTEEN HUNDRED TEN OF THE TAX LAW.
36 S 9. This act shall take effect immediately; provided however that
37 sections four through seven of this act shall apply to taxable years
38 beginning on or after January 1, 2012.
39 PART C
40 Section 1. The article heading of article 20 of the tax law, as
41 amended by chapter 71 of the laws of 1959, is amended to read as
42 follows:
43 TAX ON CIGARETTES, CIGARS AND TOBACCO PRODUCTS
44 S 2. Subdivision 2 of section 470 of the tax law, as amended by
45 section 15 of part D of chapter 134 of the laws of 2010, is amended to
46 read as follows:
47 2. "Tobacco products." Any [cigar, including a little cigar, or]
48 tobacco, other than cigarettes AND CIGARS, intended for consumption [by
49 smoking, chewing, or as snuff].
50 S 3. Subdivision 6 of section 470 of the tax law, as added by chapter
51 61 of the laws of 1989, is amended to read as follows:
52 6. ["Wholesale price." The established price for which a manufacturer
53 sells tobacco products to a distributor, before the allowance of any
54 discount, trade allowance, rebate or other reduction.
A. 9059--C 9
1 In the absence of such an established price, a manufacturer's invoice
2 price of any tobacco product shall be presumptive evidence of the whole-
3 sale price of such tobacco product, and in its absence the price at
4 which such tobacco products were purchased shall be presumed to be the
5 wholesale price, unless evidence of a lower wholesale price shall be
6 established or any industry standard of markups relating to the purchase
7 price in relation to the wholesale price shall be established.] "LOOSE
8 TOBACCO." ANY TOBACCO PRODUCTS, OTHER THAN SNUFF AND LITTLE CIGARS.
9 S 4. Subdivision 8 of section 470 of the tax law, as amended by
10 section 1 of part K of chapter 61 of the laws of 2005, is amended to
11 read as follows:
12 8. "Wholesale dealer." Any person who (a) sells cigarettes, CIGARS or
13 tobacco products to retail dealers or other persons for purposes of
14 resale, or (b) owns, operates or maintains one or more cigarette, CIGAR
15 or tobacco product vending machines in, at or upon premises owned or
16 occupied by any other person, or (c) sells cigarettes, CIGARS or tobacco
17 products to an Indian nation or tribe or to a reservation cigarette
18 seller on a qualified reservation.
19 S 5. Subdivision 9 of section 470 of the tax law, as amended by chap-
20 ter 61 of the laws of 1989, is amended to read as follows:
21 9. "Retail dealer." Any person other than a wholesale dealer engaged
22 in selling cigarettes, CIGARS or tobacco products.
23 S 6. Subdivision 12 of section 470 of the tax law, as added by chapter
24 61 of the laws of 1989, is amended to read as follows:
25 12. "Distributor." Any person who imports or causes to be imported
26 into this state any CIGAR OR tobacco product (in excess of fifty cigars
27 or one pound of tobacco) for sale, or who manufactures any CIGAR OR
28 tobacco product in this state, and any person within or without the
29 state who is authorized by the commissioner [of taxation and finance] to
30 make returns and pay the tax on CIGARS OR tobacco products sold, shipped
31 or delivered by [him] SUCH PERSON to any person in the state.
32 S 7. Subdivision 18 of section 470 of the tax law, as added by section
33 1 of part QQ-1 of chapter 57 of the laws of 2008, is amended to read as
34 follows:
35 18. "Snuff." Any finely cut, ground, or powdered tobacco that is not
36 intended to be smoked. SNUFF INCLUDES BOTH MOIST AND DRY SNUFF, AND ANY
37 SMOKELESS TOBACCO PRODUCT SIMILAR IN COMPOSITION AND MAKEUP TO SNUFF.
38 SNUFF DOES NOT INCLUDE CHEWING TOBACCOS SUCH AS PLUG OR TWIST TOBACCO.
39 S 8. Subdivision 19 of section 470 of the tax law, as amended by
40 section 17 of part D of chapter 134 of the laws of 2010, is amended to
41 read as follows:
42 19. "Cigar." Any roll of tobacco wrapped in leaf tobacco or in any
43 substance containing tobacco (other than any roll of tobacco that is a
44 cigarette as defined in subdivision one of this section). "Cigar" shall
45 NOT include[, except where expressly excluded,] any little cigar.
46 S 9. Section 470 of the tax law is amended by adding a new subdivision
47 20 to read as follows:
48 20. "RECEIPT." THE AMOUNT RECEIVED IN OR BY REASON OF ANY SALE, CONDI-
49 TIONAL OR OTHERWISE, OF CIGARS. RECEIPT IS EXPRESSED IN MONEY, WHETHER
50 PAID IN CASH, CREDIT OR PROPERTY OF ANY KIND OR NATURE, AND SHALL BE
51 DETERMINED WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF FEDERAL EXCISE
52 TAXES, MANUFACTURER'S COUPONS, THE COST OF THE SERVICE SOLD OR THE COST
53 OF MATERIALS, LABOR OR SERVICES USED OR OTHER COSTS, INTEREST OR
54 DISCOUNT PAID OR ANY OTHER EXPENSES WHATSOEVER.
A. 9059--C 10
1 S 10. Paragraph (a) of subdivision 1 of section 471-b of the tax law,
2 as amended by section 18 of part D of chapter 134 of the laws of 2010,
3 is amended to read as follows:
4 (a) Such tax on LOOSE tobacco [products other than snuff and little
5 cigars] shall be at the rate of [seventy-five percent of the wholesale
6 price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
7 RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
8 BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER, and is intended
9 to be imposed only once upon the sale of any LOOSE tobacco [products
10 other than snuff and little cigars].
11 S 11. Section 471-b of the tax law is amended by adding a new subdivi-
12 sion 4 to read as follows:
13 4. THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY TO CIGARS ON OR
14 AFTER, JUNE FIRST, TWO THOUSAND TWELVE.
15 S 12. Subdivision (a) of section 471-c of the tax law, as amended by
16 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i)
17 and (ii) as amended by section 20 and paragraph (iii) as added by
18 section 21 of part D of chapter 134 of the laws of 2010, is amended to
19 read as follows:
20 (a) There is hereby imposed and shall be paid a tax on all tobacco
21 products used in the state by any person, except that no such tax shall
22 be imposed (1) if the tax provided in section four hundred seventy-one-b
23 of this article is paid, or (2) on the use of tobacco products which are
24 exempt from the tax imposed by said section, or (3) on the use of [two
25 hundred fifty cigars or less, or] five pounds or less of tobacco other
26 than roll-your-own tobacco[,] or thirty-six ounces or less of roll-your-
27 own tobacco brought into the state on, or in the possession of, any
28 person.
29 (i) Such tax on LOOSE tobacco [products other than snuff and little
30 cigars] shall be at the rate of [seventy-five percent of the wholesale
31 price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
32 RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
33 BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER.
34 (ii) Such tax on snuff shall be at the rate of two dollars per ounce
35 and a proportionate rate on any fractional parts of an ounce, provided
36 that cans or packages of snuff with a net weight of less than one ounce
37 shall be taxed at the equivalent rate of cans or packages weighing one
38 ounce. Such tax shall be computed based on the net weight as listed by
39 the manufacturer.
40 (iii) Such tax on little cigars shall be at the same rate imposed on
41 cigarettes under this article and is intended to be imposed only once
42 upon the sale of any little cigars.
43 S 13. The tax law is amended by adding a new section 471-f to read as
44 follows:
45 S 471-F. IMPOSITION OF CIGAR TAX. 1. THERE IS HEREBY IMPOSED AND THERE
46 SHALL BE PAID A TAX OF FIFTY PERCENT UPON THE RECEIPTS FROM EVERY RETAIL
47 SALE OF CIGARS, EXCEPT THAT NO TAX SHALL BE IMPOSED ON CIGARS SOLD UNDER
48 SUCH CIRCUMSTANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH TAX,
49 OR SOLD TO THE UNITED STATES, OR SOLD TO OR BY A VOLUNTARY UNINCORPORAT-
50 ED ORGANIZATION OF THE ARMED FORCES OF THE UNITED STATES OPERATING A
51 PLACE FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE
52 APPROPRIATE EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT
53 PROVIDED IN SUCH REGULATIONS AND POLICY STATEMENTS OF SUCH AN AGENCY
54 APPLICABLE TO SUCH SALES. SUCH TAX IS INTENDED TO BE IMPOSED ONLY ONCE
55 UPON THE SALE OF ANY CIGARS. IT SHALL BE PRESUMED THAT ALL CIGARS WITHIN
56 THE STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
A. 9059--C 11
1 BURDEN OF PROOF THAT ANY CIGARS ARE NOT TAXABLE HEREUNDER SHALL BE UPON
2 THE PERSON IN POSSESSION THEREOF.
3 2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
4 TAX SHALL BE UPON THE CONSUMER, AND THAT ANY RETAIL DEALER WHO SHALL PAY
5 THE TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER OR
6 CONSUMER.
7 3. THE DISTRIBUTOR SHALL BE LIABLE UNDER SECTION FOUR HUNDRED SEVEN-
8 TY-ONE-H OF THIS ARTICLE FOR THE PREPAYMENT OF THE CIGAR TAX ON CIGARS
9 WHICH HE OR SHE IMPORTS OR CAUSES TO BE IMPORTED INTO THE STATE, OR
10 WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
11 IZED BY THE COMMISSIONER TO MAKE RETURNS AND PREPAY THE CIGAR TAX ON
12 CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE
13 STATE SHALL BE LIABLE FOR THE PREPAYMENT OF THE CIGAR TAX ON ALL CIGARS
14 SO SOLD, SHIPPED OR DELIVERED.
15 4. SEPARATE STATEMENT OF TAX. DISTRIBUTORS, WHOLESALE DEALERS, AND
16 RETAIL DEALERS REQUIRED TO COLLECT OR PASS THROUGH THE TAX IMPOSED BY
17 THIS SECTION SHALL STATE, CHARGE, AND SHOW THAT TAX SEPARATELY FROM THE
18 PRICE OR CHARGE, AND ALSO SEPARATELY FROM ANY OTHER TAX IMPOSED BY THIS
19 ARTICLE OR OTHER LAW ON ANY SALES SLIP, INVOICE, RECEIPT, OR OTHER
20 STATEMENT OR MEMORANDUM OF THE PRICE OR CHARGE, PAID OR PAYABLE, GIVEN
21 TO THE CUSTOMER.
22 S 14. The tax law is amended by adding a new section 471-g to read as
23 follows:
24 S 471-G. USE TAX ON CIGARS. (A) THERE IS HEREBY IMPOSED ON ALL CIGARS
25 USED IN THE STATE BY ANY PERSON, EXCEPT THAT NO SUCH TAX SHALL BE
26 IMPOSED (1) IF THE TAX PROVIDED IN SECTION FOUR HUNDRED SEVENTY-ONE-F OF
27 THIS ARTICLE IS PAID, OR (2) ON THE USE OF CIGARS WHICH ARE EXEMPT FROM
28 THE TAX IMPOSED BY SAID SECTION, OR (3) ON THE USE OF FIFTY CIGARS OR
29 LESS BROUGHT INTO THE STATE ON, OR IN THE POSSESSION OF, ANY PERSON.
30 THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX OF FIFTY PERCENT
31 UPON ALL RECEIPTS PAID OR REQUIRED TO BE PAID FROM EVERY RETAIL SALE OF
32 CIGARS.
33 (B) WITHIN TWENTY-FOUR HOURS AFTER LIABILITY FOR THE TAX ACCRUES, EACH
34 SUCH PERSON SHALL FILE WITH THE COMMISSIONER A RETURN IN SUCH FORM AS
35 THE COMMISSIONER MAY PRESCRIBE TOGETHER WITH A REMITTANCE OF THE TAX
36 SHOWN TO BE DUE THEREON. FOR PURPOSES OF THIS ARTICLE, THE WORD "USE"
37 MEANS THE EXERCISE OF ANY RIGHT OR POWER ACTUAL OR CONSTRUCTIVE AND
38 SHALL INCLUDE BUT IS NOT LIMITED TO THE RECEIPT, STORAGE OR ANY KEEPING
39 OR RETENTION FOR ANY LENGTH OF TIME, BUT SHALL NOT INCLUDE POSSESSION
40 FOR SALE. ALL THE OTHER PROVISIONS OF THIS ARTICLE, IF NOT INCONSISTENT,
41 SHALL APPLY TO THE ADMINISTRATION AND ENFORCEMENT OF THE TAX IMPOSED BY
42 THIS SECTION IN THE SAME MANNER AS IF THE LANGUAGE OF SAID PROVISIONS
43 HAD BEEN INCORPORATED IN FULL INTO THIS SECTION.
44 S 15. The tax law is amended by adding a new section 471-h to read as
45 follows:
46 S 471-H. PREPAYMENT OF CIGAR TAX. (A)(1) EVERY DISTRIBUTOR SHALL PAY,
47 AS A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY SECTION FOUR HUNDRED
48 SEVENTY-ONE-F OF THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF THIS
49 ARTICLE, A TAX ON CIGARS POSSESSED FOR SALE OR USE IN THIS STATE, EXCEPT
50 NO TAX SHALL BE REQUIRED TO BE PREPAID ON CIGARS SOLD UNDER CIRCUM-
51 STANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH PREPAYMENT OR
52 SOLD TO THE UNITED STATES OR SOLD TO OR BY A VOLUNTARY UNINCORPORATED
53 ORGANIZATION OF THE ARMED FORCES OF THE UNITED STATES OPERATING A PLACE
54 FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE APPRO-
55 PRIATE EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT PROVIDED IN
A. 9059--C 12
1 SUCH REGULATIONS AND WRITTEN POLICY STATEMENTS OF SUCH AN AGENCY APPLI-
2 CABLE TO SUCH SALES.
3 (2) THE COMMISSIONER MAY, IN THE COMMISSIONER'S DISCRETION, REQUIRE
4 ANY DISTRIBUTOR TO FILE WITH THE DEPARTMENT A BOND ISSUED BY A SURETY
5 COMPANY APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO
6 SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS IN THE
7 STATE OR OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN SUCH AMOUNT
8 AS THE COMMISSIONER MAY FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE FROM
9 SUCH DISTRIBUTOR PURSUANT TO THIS SECTION. IF SECURITIES ARE DEPOSITED
10 AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE
11 CUSTODY OF THE COMMISSIONER AND MAY BE SOLD BY THE COMMISSIONER IF IT
12 BECOMES NECESSARY TO DO SO IN ORDER TO RECOVER ANY SUMS DUE FROM SUCH
13 DISTRIBUTOR PURSUANT TO THIS SECTION, BUT NO SUCH SALE SHALL BE HAD
14 UNTIL AFTER SUCH DISTRIBUTOR SHALL HAVE HAD AN OPPORTUNITY TO LITIGATE
15 THE VALIDITY OF ANY PREPAYMENT OF TAX IF IT ELECTS TO DO SO. UPON ANY
16 SUCH SALE, THE SURPLUS, IF ANY, ABOVE THE SUMS DUE UNDER THIS SECTION
17 SHALL BE RETURNED TO SUCH DISTRIBUTOR.
18 (3) WHERE CIGARS ARE IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE,
19 OR MANUFACTURED IN THE STATE, THE AMOUNT OF THE CIGAR TAX REQUIRED TO BE
20 PREPAID PURSUANT TO THIS SECTION SHALL BE TWENTY CENTS ON EACH CIGAR.
21 (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE TAXES REQUIRED
22 TO BE PREPAID PURSUANT TO THIS SECTION SHALL BE ADMINISTERED AND
23 COLLECTED IN A LIKE MANNER AS THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED
24 SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE. ALL THE
25 PROVISIONS OF THIS ARTICLE RELATING TO OR APPLICABLE TO THE ADMINIS-
26 TRATION, COLLECTION AND DISPOSITION OF THE TAXES IMPOSED BY SUCH
27 SECTIONS SHALL APPLY TO THE TAX REQUIRED TO BE PREPAID UNDER THIS
28 SECTION SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH PREPAY-
29 MENTS OF TAX WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH
30 MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE
31 TAX SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND
32 EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL
33 IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON-
34 SISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE TAX
35 REQUIRED TO BE PREPAID BY THIS SECTION. FOR PURPOSES OF THIS SECTION,
36 ANY REFERENCE IN THIS ARTICLE TO THE TAX OR TAXES IMPOSED BY SECTIONS
37 FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTI-
38 CLE SHALL BE DEEMED TO REFER TO THE TAX REQUIRED TO BE PREPAID PURSUANT
39 TO THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
40 (C) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
41 OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO THIS SECTION MORE THAN
42 ONCE UPON CIGARS POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN THE
43 PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL HAVE BEEN
44 SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED SEVEN-
45 TY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE AND PURSUANT TO
46 THE AUTHORITY OF THIS ARTICLE WITH RESPECT TO THE RETAIL SALE OR THE USE
47 OF CIGARS. NOTHING IN THIS SECTION SHALL MODIFY OR AFFECT THE TAXES
48 IMPOSED BY SECTIONS FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVEN-
49 TY-ONE-G OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE SALE, OR TO THE
50 USE, OF SUCH CIGARS.
51 (D) THE DISTRIBUTOR SHALL BE LIABLE FOR THE PREPAID TAX ON CIGARS
52 WHICH HE OR SHE IMPORTS OR CAUSES TO BE IMPORTED INTO THE STATE, OR
53 WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
54 IZED BY THE COMMISSIONER TO MAKE RETURNS AND PAY THE PREPAID TAX ON
55 CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE
A. 9059--C 13
1 STATE SHALL BE LIABLE FOR THE PREPAID TAX ON ALL CIGARS SO SOLD, SHIPPED
2 OR DELIVERED.
3 S 16. The tax law is amended by adding a new section 471-i to read as
4 follows:
5 S 471-I. REFUNDS AND CREDITS WITH RESPECT TO CIGARS.
6 (A) RETAIL DEALER. (1) A RETAIL DEALER OF CIGARS WHO OR WHICH IS
7 REQUIRED TO COLLECT THE TAXES IMPOSED BY SECTION FOUR HUNDRED
8 SEVENTY-ONE-F OF THIS ARTICLE SHALL BE ALLOWED A REFUND OR CREDIT
9 AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED TO THE
10 COMMISSIONER PURSUANT TO THE PROVISIONS OF SECTION FOUR HUNDRED SEVEN-
11 TY-ONE-F OF THIS ARTICLE UPON THE RETAIL SALE OF CIGARS IN THE AMOUNT OF
12 THE TAX ON SUCH CIGARS PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN
13 THE PRICE PAID BY SUCH RETAIL DEALER PURSUANT TO THE PROVISIONS OF
14 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE.
15 (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH RETAIL DEALER FOR
16 THE TAX PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID
17 BY SUCH RETAIL DEALER UPON ANY CIGARS PURSUANT TO THE PROVISIONS OF
18 SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE IF SUCH CIGARS ARE
19 SOLD AT RETAIL BY SUCH RETAIL DEALER UNDER CIRCUMSTANCES WHERE THE TAXES
20 IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE AND PURSU-
21 ANT TO THE AUTHORITY OF THIS ARTICLE ARE NOT REQUIRED BY THE PROVISIONS
22 OF THIS ARTICLE TO BE COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL
23 SALE THEREOF.
24 (B) EXPORT, DESTRUCTION, TAX PAID IN ERROR. WHENEVER ANY CIGARS UPON
25 WHICH THE PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
26 THIS ARTICLE HAS BEEN PAID HAVE BEEN SOLD AND SHIPPED TO ANOTHER STATE
27 FOR SALE OR USE THERE OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
28 BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED THAT
29 ANY TAX REQUIRED TO BE PREPAID BY SUCH SECTION FOUR HUNDRED
30 SEVENTY-ONE-H OF THIS ARTICLE SHALL HAVE BEEN PAID IN ERROR, THE
31 DISTRIBUTOR OR DEALER, AS THE CASE MAY BE, SHALL BE ENTITLED TO A REFUND
32 OR CREDIT OF THE ACTUAL AMOUNT OF PREPAID TAX SO PAID WITH RESPECT TO
33 CIGARS WHICH WILL NOT BE POSSESSED FOR SALE OR USE IN THIS STATE.
34 (C) REFUNDS OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO THE
35 PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL
36 BE ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR PASSED THROUGH TO THE
37 RETAIL DEALER, OR THE PURCHASER OR USER, EXCEEDS THE AMOUNT OF TAX
38 REQUIRED TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED BY
39 THE PROVISIONS OF THIS ARTICLE.
40 (D) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
41 EXTENT THAT THE TAX REQUIRED TO BE PREPAID PURSUANT TO SECTION FOUR
42 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE HAS BEEN PREPAID BY OR PASSED
43 THROUGH TO SUCH RETAIL DEALER, PURCHASER OR USER, BUT ONLY TO THE EXTENT
44 THAT THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTI-
45 CLE TOGETHER WITH THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-G
46 OF THIS ARTICLE REQUIRED TO BE PAID, COLLECTED AND REMITTED HAS BEEN
47 PAID, COLLECTED AND REMITTED.
48 (E) SUCH REFUNDS AND CREDITS SHALL BE SUBJECT TO THE PROVISIONS OF
49 SECTION FOUR HUNDRED SEVENTY-SIX OF THIS ARTICLE AS IF SUCH SECTION WAS
50 INCORPORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
51 REFUNDS AND CREDITS AUTHORIZED BY THIS SECTION INCLUDING THE PERIODS OF
52 LIMITATIONS ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER; PROVIDED,
53 HOWEVER, THAT, AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-SIX OF THIS
54 ARTICLE, NO INTEREST SHALL BE ALLOWED OR PAID UPON ANY REFUND MADE OR
55 CREDIT ALLOWED PURSUANT TO SUBDIVISIONS (A) AND (B) OF THIS SECTION. THE
A. 9059--C 14
1 COMMISSIONER SHALL PROCESS APPLICATIONS FOR REFUND AS EXPEDITIOUSLY AS
2 POSSIBLE.
3 S 17. The tax law is amended by adding a new section 471-j to read as
4 follows:
5 S 471-J. SPECIAL PROVISION AS TO IMPOSITION OF TAXES ON CERTAIN
6 CIGARS. IF A PERSON SHALL RECEIVE ANY CIGARS, UPON WHICH CIGARS THIS
7 STATE WAS WITHOUT POWER TO IMPOSE THE TAXES UNDER THIS ARTICLE, AND SUCH
8 PERSON SHALL THEREAFTER POSSESS SUCH CIGARS FOR SALE OR USE ANY SUCH
9 CIGARS IN SUCH MANNER AND UNDER SUCH CIRCUMSTANCES AS MAY SUBJECT THE
10 SAME TO THE TAXING POWER OF THIS STATE WITH RESPECT TO SUCH POSSESSION
11 FOR SALE OR USE, SUCH PERSON SHALL BE LIABLE FOR THE TAX IMPOSED BY
12 SECTION FOUR HUNDRED SEVENTY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS
13 ARTICLE, AS THE CASE MAY BE WITH RESPECT TO SUCH SALE OR USE, AND SHALL
14 MAKE THE SAME REPORTS AND RETURNS, PAY THE SAME TAXES AND BE SUBJECT TO
15 ALL OTHER PROVISIONS OF THIS ARTICLE RELATING TO DISTRIBUTORS OR RETAIL
16 DEALERS, EXCEPT THAT SUCH A PERSON SHALL NOT BE SUBJECT TO THE
17 PROVISIONS OF SECTIONS FOUR HUNDRED SEVENTY-TWO AND FOUR HUNDRED EIGHTY
18 OF THIS ARTICLE IF SUCH PERSON DOES NOT OFFER CIGARS FOR SALE.
19 S 18. The tax law is amended by adding a new section 471-k to read as
20 follows:
21 S 471-K. COLLECTION OF TAX FROM CUSTOMER; FILING OF RETURNS AND
22 PAYMENT.
23 (A)(1) EVERY RETAIL DEALER SHALL COLLECT THE TAX IMPOSED BY SECTION
24 FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE FROM THE CUSTOMER WHEN
25 COLLECTING THE RECEIPT TO WHICH IT APPLIES. EACH CUSTOMER SHALL BE GIVEN
26 SOME INDICIA OF SALE, INCLUDING SALES SLIP, INVOICE, RECEIPT OR OTHER
27 STATEMENT OR MEMORANDUM OF THE PRICE, UPON WHICH THE TAX SHALL BE STAT-
28 ED, CHARGED AND SHOWN SEPARATELY.
29 (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS
30 OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER RELATING TO THE PERSONAL LIABIL-
31 ITY FOR THE TAX, ADMINISTRATION AND COLLECTION AND DETERMINATION OF TAX,
32 INCLUDING SECTION ELEVEN HUNDRED THIRTY-EIGHT OF THIS CHAPTER RELATING
33 TO DETERMINATION OF TAX BUT NOT INCLUDING SECTION ELEVEN HUNDRED FORTY-
34 FIVE OF THIS CHAPTER, SHALL APPLY TO THE TAX IMPOSED BY SECTION FOUR
35 HUNDRED SEVENTY-ONE-F OF THIS ARTICLE IN THE SAME MANNER AND WITH THE
36 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH PROVISIONS OF SUCH
37 ARTICLE TWENTY-EIGHT HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE,
38 EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
39 A PROVISION OF THIS SECTION OR IS NOT RELEVANT THERETO AND WITH SUCH
40 OTHER MODIFICATIONS AS MAY BE NECESSARY TO ADAPT THE LANGUAGE OF SUCH
41 PROVISIONS TO THE PROVISIONS OF THIS SECTION. PROVIDED, HOWEVER ALL
42 TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER
43 UNDER SECTIONS FOUR HUNDRED SEVENTY-ONE-F, FOUR HUNDRED SEVENTY-ONE-G,
44 AND FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL BE DEPOSITED AND
45 DISPOSED OF PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE.
46 PROVIDED, THE COMMISSIONER MAY REQUIRE RETURNS TO BE FILED WITH HIM OR
47 HER AT SUCH TIMES AND CONTAINING SUCH INFORMATION AS HE OR SHE MAY
48 PRESCRIBE.
49 (B) (1) (I) NO PERSON SHALL PURCHASE CIGARS IN THIS STATE, EXCLUDING A
50 PURCHASE AT RETAIL, UNLESS THE TAX REQUIRED TO BE PREPAID BY SECTION
51 FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE HAS BEEN ASSUMED BY A
52 DISTRIBUTOR REGISTERED UNDER THIS ARTICLE IN ACCORDANCE WITH A CERTIF-
53 ICATION UNDER THIS PARAGRAPH OR PAID BY SUCH DISTRIBUTOR, AND, IN EACH
54 OF SUCH INSTANCES, IS PASSED THROUGH TO SUCH PURCHASER. IN ADDITION TO
55 ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH MAY APPLY, ANY PERSON WHO
56 PURCHASES CIGARS IN VIOLATION OF THIS SUBPARAGRAPH SHALL BE JOINTLY AND
A. 9059--C 15
1 SEVERALLY LIABLE TO PAY THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR
2 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITH RESPECT TO SUCH CIGARS.
3 (II) FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
4 TO PREVENT EVASION OF THE TAX ON CIGARS IMPOSED BY AND PURSUANT TO THIS
5 ARTICLE, IT SHALL BE PRESUMED THAT ALL CIGARS IMPORTED, MANUFACTURED OR
6 SOLD, RECEIVED OR POSSESSED IN THE STATE IS INTENDED FOR USE, DISTRIB-
7 UTION, STORAGE OR SALE IN THE STATE AND SUBJECT TO THE TAX REQUIRED TO
8 BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE UNTIL
9 THE CONTRARY IS ESTABLISHED. IT SHALL BE FURTHER PRESUMED THAT ALL
10 CIGARS SO IMPORTED, MANUFACTURED, SOLD, RECEIVED OR POSSESSED IN THE
11 STATE BY ANY PERSON ARE SUBJECT TO THE TAX REQUIRED TO BE PREPAID UNDER
12 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE AND SUCH PERSON IS
13 RESPONSIBLE FOR SUCH PREPAYMENT. THE BURDEN OF PROVING THAT ANY CIGARS
14 ARE NOT SO SUBJECT SHALL BE UPON THE PERSON SO RESPONSIBLE FOR SUCH
15 PREPAYMENT WITH RESPECT TO SUCH CIGARS.
16 (III) UPON EACH SALE OF CIGARS, OTHER THAN A SALE AT RETAIL, THE SELL-
17 ER MUST GIVE TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE, AT THE
18 TIME OF DELIVERY OF SUCH CIGARS, A CERTIFICATION CONTAINING SUCH INFOR-
19 MATION AS THE COMMISSIONER SHALL REQUIRE WHICH SHALL INCLUDE A STATEMENT
20 TO THE EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR REGISTERED UNDER THIS
21 ARTICLE, THAT HE OR SHE HAS ASSUMED THE PAYMENT OF OR PAID THE TAX
22 REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS
23 ARTICLE AND, IN EACH CASE, IS PASSING THROUGH SUCH TAX OR (B) THAT SUCH
24 SELLER IS PASSING THROUGH SUCH TAX WHICH WAS SO PREVIOUSLY ASSUMED OR
25 PAID BY AN IDENTIFIED DISTRIBUTOR OR WHOLESALE DEALER REGISTERED UNDER
26 THIS ARTICLE, AND PASSED THROUGH TO HIM OR HER.
27 (IV) IF THE CERTIFICATION REQUIRED BY THIS PARAGRAPH HAS BEEN
28 FURNISHED TO THE PURCHASER BY THE SELLER AT DELIVERY AND ACCEPTED IN
29 GOOD FAITH, THE BURDEN OF PROVING THAT THE TAX REQUIRED TO BE PAID BY
30 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS ASSUMED OR PAID
31 BY A DISTRIBUTOR REGISTERED UNDER THIS ARTICLE AND PASSED THROUGH SHALL
32 BE SOLELY ON THE SELLER.
33 (V) WHERE THE CERTIFICATION REQUIRED UNDER THIS PARAGRAPH IS NOT
34 FURNISHED BY THE SELLER AT DELIVERY OF CIGARS, IT SHALL BE PRESUMED THAT
35 THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
36 THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR REGISTERED AS
37 SUCH UNDER THIS ARTICLE AND THAT THE PURCHASER IN SUCH CASE IS JOINTLY
38 AND SEVERALLY LIABLE FOR THE TAX.
39 S 19. Subdivision 3 of section 472 of the tax law, as added by chapter
40 61 of the laws of 1989 and as further amended by section 104 of part A
41 of chapter 62 of the laws of 2011, is amended to read as follows:
42 3. The commissioner [of taxation and finance] may appoint dealers in
43 CIGARS AND tobacco products, manufacturers of CIGARS AND tobacco
44 products and other persons within or without the state as distributors
45 and may authorize them to make returns and to pay the tax on CIGARS AND
46 tobacco products sold, shipped or delivered by them to any person in the
47 state. The commissioner may, in his OR HER discretion, require the
48 deposit of a bond issued by a surety company approved by the superinten-
49 dent of financial services as to solvency and responsibility and author-
50 ized to transact business in this state, or other security acceptable to
51 the commissioner in an amount and form satisfactory to him OR HER as a
52 condition of appointing any such person as a distributor. If securities
53 are deposited as security under this subdivision, such securities shall
54 be kept in the custody of the commissioner [of taxation and finance] and
55 may be sold by the commissioner if it becomes necessary so to do in
56 order to recover any sums due from such distributor pursuant to this
A. 9059--C 16
1 article, but no such sale shall be had until after such distributor
2 shall have had an opportunity to litigate the validity of any tax if it
3 elects so to do. Upon any such sale, the surplus, if any, above the sums
4 due under this article shall be returned to such distributor.
5 S 20. Section 473-a of the tax law, as added by chapter 61 of the laws
6 of 1989, is amended to read as follows:
7 S 473-a. Returns and payment of CIGARS PREPAID AND tobacco products
8 [tax] TAXES by distributors. 1. (A) Every distributor shall, on or
9 before the twentieth day of each month, file with the commissioner [of
10 taxation and finance] a return on forms to be prescribed and furnished
11 by the commissioner, showing the quantity and [wholesale price] WEIGHT
12 of all tobacco products OR QUANTITY OF CIGARS imported or caused to be
13 imported into the state by him OR HER or manufactured in the state by
14 him OR HER, during the preceding calendar month. Every distributor
15 authorized by the commissioner to make returns and pay the tax on CIGARS
16 OR tobacco products sold, shipped or delivered by him OR HER to any
17 person in the state shall file a return showing the quantity and [whole-
18 sale price] WEIGHT of all tobacco products so sold, shipped or delivered
19 during the preceding calendar month. Provided, however, the commissioner
20 may, if he OR SHE deems it necessary in order to insure the payment of
21 the taxes imposed by this article, require returns to be made at such
22 times and covering such periods as he OR SHE may deem necessary, and, by
23 regulation, may permit the filing of returns on a quarterly, semi-annual
24 or annual basis, or may waive the filing of returns by a distributor for
25 such time and upon such terms as he OR SHE may deem proper if satisfied
26 that no tax imposed by this article is or will be payable by him OR HER
27 during the time for which returns are waived. Such returns shall contain
28 such further information as the commissioner may require.
29 (B) EVERY DISTRIBUTOR SHALL, ON OR BEFORE THE TWENTIETH DAY OF EACH
30 MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED AND
31 FURNISHED BY THE COMMISSIONER, SHOWING THE QUANTITY OF ALL CIGARS
32 IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM OR HER OR MANU-
33 FACTURED IN THE STATE BY HIM OR HER, DURING THE PRECEDING CALENDAR
34 MONTH. EVERY DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS
35 AND PAY THE CIGAR PREPAID TAX ON CIGARS SOLD, SHIPPED OR DELIVERED BY
36 HIM OR HER TO ANY PERSON IN THE STATE SHALL FILE A RETURN SHOWING THE
37 QUANTITY OF ALL CIGARS SO SOLD, SHIPPED OR DELIVERED DURING THE PRECED-
38 ING CALENDAR MONTH. PROVIDED, HOWEVER, THE COMMISSIONER MAY, IF HE OR
39 SHE DEEMS IT NECESSARY IN ORDER TO INSURE THE PAYMENT OF THE CIGAR
40 PREPAID TAX IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE AT SUCH
41 TIMES AND COVERING SUCH PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY
42 REGULATION, MAY PERMIT THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL
43 OR ANNUAL BASIS, OR MAY WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR
44 SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATISFIED
45 THAT NO CIGAR PREPAID TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE
46 BY HIM OR HER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS
47 SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
48 2. Every distributor shall pay to the commissioner with the filing of
49 such return the tax on CIGARS OR tobacco products for such month imposed
50 under this article.
51 S 21. Subdivisions 2, 3 and 4 of section 474 of the tax law, subdivi-
52 sion 2 as amended by chapter 552 of the laws of 2008, subdivision 3 as
53 added and subdivision 4 as amended by chapter 61 of the laws of 1989,
54 are amended to read as follows:
55 2. Every person who shall possess or transport more than [two hundred]
56 fifty cigars, or more than five pounds of tobacco other than roll-your-
A. 9059--C 17
1 own tobacco[,] or more than thirty-six ounces of roll-your-own tobacco
2 upon the public highways, roads or streets of the state, shall be
3 required to have in [his] SUCH PERSON'S actual possession invoices or
4 delivery tickets for such CIGARS OR tobacco products. Such invoices or
5 delivery tickets shall show the name and address of the consignor or
6 seller, the name and address of the consignee or purchaser, the
7 quantity, WEIGHT and brands of the CIGARS OR tobacco products trans-
8 ported, and the name and address of the person who has or shall assume
9 the payment of the tax [and the wholesale price] or the tax paid or
10 payable. The absence of such invoices or delivery tickets shall be prima
11 facie evidence that such person is a dealer in CIGARS OR tobacco
12 products in this state and subject to the requirements of this article.
13 3. Every dealer or distributor or employee thereof, or other person
14 acting on behalf of a dealer or distributor, who shall possess or trans-
15 port more than fifty cigars or more than one pound of tobacco upon the
16 public highways, roads or streets of the state, shall be required to
17 have in his OR HER actual possession invoices or delivery tickets for
18 such CIGARS OR tobacco products. Such invoices or delivery tickets shall
19 show the name and address of the consignor or seller, the name and
20 address of the consignee or purchaser, the quantity, WEIGHT and brands
21 of the CIGARS OR tobacco products transported, and the name and address
22 of the person who has or shall assume the payment of the tax [and the
23 wholesale price] or the tax paid or payable. The absence of such
24 invoices or delivery tickets shall be prima facie evidence that the tax
25 imposed by this article on CIGARS OR tobacco products has not been paid
26 and is due and owing.
27 4. At the time of delivering cigarettes to any person each agent or
28 wholesale dealer, and at the time of delivering CIGARS OR tobacco
29 products to any person each distributor or wholesale dealer of CIGARS OR
30 tobacco products, shall make a true duplicate invoice showing the date
31 of delivery, the number of packages and number of cigarettes contained
32 therein, in each shipment of cigarettes delivered, and the items and
33 quantity and [wholesale price] WEIGHT of each item in each shipment of
34 tobacco products OR QUANTITY OF CIGARS delivered, and the name of the
35 purchaser to whom delivery is made, and shall retain the same for a
36 period of three years subject to the use and inspection of the commis-
37 sioner [of taxation and finance]. Each dealer shall procure and retain
38 invoices showing the number of packages and number of cigarettes
39 contained therein, in each shipment of cigarettes received by him OR
40 HER, and the items and quantity and [wholesale price] WEIGHT of each
41 item in each shipment of CIGARS OR tobacco products received by him OR
42 HER, the date thereof, and the name of the shipper, and shall retain the
43 same for a period of three years subject to the use and inspection of
44 the commissioner [of taxation and finance]. The commissioner [of taxa-
45 tion and finance] by regulation may provide that whenever cigarettes,
46 CIGARS or tobacco products are shipped into the state, the railroad
47 company, express company, trucking company or other public carrier
48 transporting any shipment thereof shall file with the commissioner [of
49 taxation and finance] a copy of the freight bill within ten days after
50 the delivery in the state of each shipment. All dealers shall maintain
51 and keep for a period of three years such other records of cigarettes,
52 CIGARS or tobacco products received, sold or delivered within the state
53 as may be required by the commissioner [of taxation and finance]. The
54 commissioner [of taxation and finance] is hereby authorized to examine
55 the books, papers, invoices and other records of any person in
56 possession, control or occupancy of any premises where cigarettes,
A. 9059--C 18
1 CIGARS or tobacco products are placed, stored, sold or offered for sale,
2 and the equipment of any such person pertaining to the stamping of ciga-
3 rettes or the sale and delivery of cigarettes, CIGARS or tobacco
4 products taxable under this article, as well as the stock of cigarettes,
5 CIGARS or tobacco products in any such premises or vehicle. To verify
6 the accuracy of the tax imposed and assessed by this article, each such
7 person is hereby directed and required to give to the commissioner [of
8 taxation and finance] or his OR HER duly authorized representatives, the
9 means, facilities and opportunity for such examinations as are herein
10 provided for and required.
11 S 22. The section heading of section 475 of the tax law, as amended by
12 chapter 227 of the laws of 1956, is amended to read as follows:
13 General powers of the [tax commission] COMMISSIONER.
14 S 23. Section 476 of the tax law, as amended by chapter 61 of the laws
15 of 1989, is amended to read as follows:
16 S 476. Refunds; sales of stamps. Whenever any cigarettes upon which
17 stamps have been placed or CIGARS OR tobacco products upon which the tax
18 has been paid have been sold and shipped into another state for sale or
19 use there or have become unfit for use and consumption or unsalable, or
20 have been destroyed, or whenever the commissioner [of taxation and
21 finance] shall have determined that any tax imposed by this article
22 shall have been paid in error, the agent, dealer or CIGAR OR tobacco
23 products distributor, as the case may be, shall be entitled to a refund
24 of the actual amount of tax so paid, provided application therefor is
25 filed with the commissioner [of taxation and finance] within two years
26 after the stamps were affixed to such cigarettes or the tax was paid
27 upon such CIGARS OR tobacco products, except if an agreement under the
28 provisions of section four hundred seventy-eight OF THIS ARTICLE
29 (extending the period for determination of tax imposed by this article)
30 is made within the two-year period for the filing of an application for
31 refund provided for in this section, the period for filing an applica-
32 tion for refund shall not expire prior to six months after the expira-
33 tion of the period within which a determination may be made pursuant to
34 the agreement or any extension thereof. If the commissioner [of taxation
35 and finance] is satisfied that any dealer is entitled to a refund he OR
36 SHE shall issue to such dealer stamps of sufficient value to cover the
37 refund of the tax on cigarettes or may, subject to audit by the comp-
38 troller, make a refund of the tax on cigarettes or on CIGARS OR tobacco
39 products. No person shall sell or offer for sale any stamp or stamps
40 issued under this article except by written permission of the commis-
41 sioner [of taxation and finance]. The commissioner [of taxation and
42 finance] may redeem unused stamps lawfully in possession of any person.
43 The commissioner [of taxation and finance] may prescribe necessary rules
44 and regulations concerning refunds, sales of stamps, and redemptions
45 under the provisions of this article.
46 S 24. Paragraph (d) of subdivision 1 of section 480 of the tax law, as
47 added by chapter 629 of the laws of 1996, is amended to read as follows:
48 (d) Each applicant shall file satisfactory proof that it will maintain
49 a secure separate warehousing facility for the purpose of receiving and
50 distributing cigarettes, CIGARS or tobacco products and conducting its
51 wholesale business. Such proof shall consist of a copy of a deed, or a
52 copy of an executed lease for a minimum period of two years, to a sepa-
53 rate, secure warehouse. If the applicant carries on another business in
54 conjunction with the warehouse facility, the other business shall also
55 be identified.
A. 9059--C 19
1 S 25. Paragraph (j) of subdivision 1 of section 480 of the tax law, as
2 amended by chapter 629 of the laws of 1996, is amended to read as
3 follows:
4 (j) The commissioner may for cause refuse to issue, or may suspend or
5 revoke a wholesaler's license, or may forbid a retail dealer to continue
6 selling cigarettes, CIGARS or tobacco products or may forbid a person
7 required to be appointed as a distributor of CIGARS OR tobacco products
8 who has not been so appointed from selling cigarettes, CIGARS or tobacco
9 products, after an opportunity for hearing has been afforded. A
10 violation of any provision of this article or of any regulation issued
11 under it shall be cause to forbid a retail dealer to continue selling
12 cigarettes, CIGARS or tobacco products.
13 S 26. Paragraph (k) of subdivision 1 of section 480 of the tax law, as
14 amended by chapter 262 of the laws of 2000, is amended to read as
15 follows:
16 (k) No agent shall sell cigarettes and no distributor shall sell
17 CIGARS OR tobacco products to an unlicensed wholesale dealer, or to a
18 wholesale dealer whose license has been suspended or revoked, or to a
19 retail dealer who is not registered under section four hundred eighty-a
20 of this article, or whose registration has been suspended or revoked,
21 and no wholesale dealer shall sell cigarettes, CIGARS or tobacco
22 products to a retail dealer who is not registered under section four
23 hundred eighty-a of this article, or whose registration has been
24 suspended or revoked, and no retail dealer shall sell cigarettes, CIGARS
25 or tobacco products unless such dealer is registered under section four
26 hundred eighty-a of this article.
27 S 27. Paragraph (l) of subdivision 1 of section 480 of the tax law, as
28 added by chapter 629 of the laws of 1996, is amended to read as follows:
29 (l) Paragraphs (b), (c) and (g) of this subdivision shall not apply to
30 the filing of an application for a license as a wholesale dealer that is
31 based solely upon the ownership, operation or maintenance of one or more
32 cigarette, CIGAR or tobacco products vending machines in, at or upon
33 premises owned or occupied by another person, or that is based solely
34 upon the sale of CIGARS OR tobacco products for resale, or that is based
35 upon both the ownership, operation or maintenance of one or more ciga-
36 rette, CIGAR or tobacco products vending machines in, at or upon prem-
37 ises owned or occupied by another person and the sale of CIGARS OR
38 tobacco products for resale.
39 S 28. Subparagraph (iv) of paragraph (b) of subdivision 3 of section
40 480 of the tax law, as amended by chapter 61 of the laws of 1989, is
41 amended to read as follows:
42 (iv) Has knowingly aided and abetted the sale of cigarettes, CIGARS or
43 tobacco products by a person which such licensee or controlling person
44 knows (A) has not been licensed by the commissioner [of taxation and
45 finance] and (B) is a wholesale dealer pursuant to the terms of subdivi-
46 sion eight of section four hundred seventy of this [chapter] ARTICLE.
47 S 29. Subdivision 4 of section 480 of the tax law, as amended by chap-
48 ter 61 of the laws of 1989, is amended to read as follows:
49 4. If the commissioner [of taxation and finance] considers it neces-
50 sary for the proper administration of the cigarette tax, CIGAR TAX or
51 tobacco products tax imposed by this article or the cigarette marketing
52 standards contained in article twenty-A of this chapter he OR SHE may
53 require every person under this article who holds a license to file a
54 new application for a license in such form and at such time as the
55 commissioner may prescribe and to surrender such license. The commis-
56 sioner may require such filing and such surrender not more often than
A. 9059--C 20
1 once every three years. Upon the filing of such application with the
2 proper fee and the surrender of such license, the commissioner shall
3 issue, within such time as he OR SHE may prescribe, a new license to
4 each applicant.
5 S 30. Paragraphs (a) and (b) of subdivision 1 of section 480-a of the
6 tax law, as added by chapter 190 of the laws of 1990, are amended to
7 read as follows:
8 (a) [On and after January first, nineteen hundred ninety-one, every]
9 EVERY retail dealer shall publicly display a certificate of registration
10 from the department in each place of business in this state through
11 which it sells cigarettes, CIGARS or tobacco products at retail. A
12 retail dealer who has no regular place of business shall publicly
13 display such certificate on each of its carts, stands, trucks or other
14 merchandising devices through which it sells cigarettes, CIGARS or
15 tobacco products in this state.
16 (b) Every person who owns or, if the owner is not the operator, then
17 any person who operates one or more vending machines through which ciga-
18 rettes, CIGARS or tobacco products are sold in this state, regardless of
19 whether located on the premises of the vending machine owner or, if the
20 owner is not the operator, then the premises of the operator or the
21 premises of any other person, must register each such vending machine
22 with the department. [On and after January first, nineteen hundred nine-
23 ty-one, a] A vending machine registration certificate, in such form as
24 may be prescribed by the commissioner [of taxation and finance], shall
25 be affixed to each vending machine through which cigarettes, CIGARS or
26 tobacco products are sold in this state.
27 S 31. Paragraphs (a) and (b) of subdivision 2 of section 480-a of the
28 tax law, as amended by section 1 of part T of chapter 61 of the laws of
29 2011, are amended to read as follows:
30 (a) (i) Every retail dealer and every person owning or, if the owner
31 is not the operator, then any person operating one or more vending
32 machines through which cigarettes, CIGARS or tobacco products are sold
33 in this state, who is required under section eleven hundred thirty-six
34 of this chapter to file a return for the quarterly period ending on the
35 last day of August OF EACH YEAR, [nineteen hundred ninety or for the
36 quarterly period ending on the last day of August in any year thereaft-
37 er,] must file an application for registration under this section with
38 that quarterly return, in such form as shall be prescribed by the
39 commissioner.
40 (ii) Each retail dealer must pay an application fee with the quarterly
41 return of three hundred dollars for each retail place of business in
42 this state through which it sells cigarettes, CIGARS or tobacco
43 products.
44 (iii) Every person who owns or, if the owner is not the operator, then
45 any person who operates one or more vending machines through which ciga-
46 rettes, CIGARS or tobacco products are sold in this state, regardless of
47 whether located on the premises of the vending machine owner or, if the
48 owner is not the operator, then the premises of the operator or the
49 premises of any other person, must pay an application fee with the quar-
50 terly return of one hundred dollars for each vending machine. The
51 department will issue a registration certificate, as prescribed by the
52 commissioner, after receipt of a registration application and the appro-
53 priate registration fee, prior to the next succeeding January first.
54 (b) Every retail dealer and every person who owns or, if the owner is
55 not the operator, then any person who operates one or more vending
56 machines through which cigarettes, CIGARS or tobacco products are sold
A. 9059--C 21
1 in this state who commences business after the last day of August[,
2 nineteen hundred ninety,] or who commences selling cigarettes, CIGARS or
3 tobacco products at retail through a new or different place of business
4 in this state after such date, or who commences selling cigarettes,
5 CIGARS or tobacco products through new or different vending machines
6 after such date, must file with the commissioner an application for
7 registration, in a form prescribed by him or her, at least thirty days
8 prior to commencing business or commencing sales. Each application must
9 be accompanied by an application fee of three hundred dollars for each
10 retail place of business and one hundred dollars for each vending
11 machine to be registered. The department, within ten days after receipt
12 of an application for registration under this paragraph and payment of
13 the proper fee for application for registration, will issue a registra-
14 tion certificate, as prescribed by the commissioner, for each retail
15 place of business or cigarette, CIGAR or tobacco products vending
16 machine registered.
17 S 32. Paragraph (d) of subdivision 2 of section 480-a of the tax law,
18 as amended by chapter 760 of the laws of 1992, is amended to read as
19 follows:
20 (d) Except as otherwise provided in this section, all the provisions
21 of article twenty-eight of this chapter relating to the personal liabil-
22 ity for the tax, administration, collection and determination of tax,
23 and deposit and disposition of revenue, including section eleven hundred
24 thirty-eight of this chapter relating to determination of tax and
25 section eleven hundred forty-five of this chapter (but only paragraphs
26 one and two of subdivision (a) of such section) relating to penalties
27 and interest for failure to file a return or pay tax within the time
28 required, shall apply to the applications for registration and the fees
29 for filing such applications required by this section and the penalty
30 imposed pursuant to subdivision three of this section, as if such appli-
31 cations were returns required under section eleven hundred thirty-six of
32 this chapter and such filing fees, penalties and interest were taxes
33 required to be paid pursuant to such article twenty-eight, in the same
34 manner and with the same force and effect as if the language of such
35 provisions of such article twenty-eight had been incorporated in full
36 into this article, except to the extent that any such provision is
37 either inconsistent with a provision of this section or is not relevant
38 thereto and with such other modifications as may be necessary to adapt
39 the language of such provisions to the provisions of this section.
40 [Section] ANY REFERENCE TO A CERTIFICATE OF AUTHORITY SHOULD BE READ TO
41 MEAN A CERTIFICATE OF REGISTRATION FOR THE PURPOSE OF THIS SECTION.
42 PARAGRAPHS ONE THROUGH THREE OF SUBDIVISION A AND SUBDIVISIONS B AND C
43 OF SECTION eleven hundred thirty-four of [such article twenty-eight]
44 THIS CHAPTER shall not apply to this section AS WELL AS ANY LANGUAGE
45 CONTAINED IN SUCH SECTION REFERRING TO AN OFFICER, DIRECTOR, PARTNER OR
46 EMPLOYEE OF SUCH PERSON, AND, WHERE SUCH PERSON IS A LIMITED LIABILITY
47 COMPANY, ALSO A MEMBER OR MANAGER OF SUCH PERSON, IN THE OFFICER'S,
48 DIRECTOR'S, PARTNER'S, MEMBER'S, MANAGER'S OR EMPLOYEE'S CAPACITY AS A
49 PERSON REQUIRED TO COLLECT TAX ON BEHALF OF SUCH PERSON OR ANOTHER
50 PERSON. Provided, however, that the commissioner [of taxation and
51 finance] shall refund or credit an application fee paid with respect to
52 the registration of a vending machine or a retail place of business in
53 this state through which cigarettes, CIGARS or tobacco products were to
54 be sold if, prior to the beginning of the calendar year with respect to
55 which such registration relates, the certificate of registration
56 described in paragraph (a) of this subdivision is returned to the
A. 9059--C 22
1 department [of taxation and finance], or if such certificate has been
2 destroyed, the retail dealer or vending machine operator satisfactorily
3 accounts to the commissioner for the missing certificate, but such vend-
4 ing machine or retail place of business may not be used to sell ciga-
5 rettes, CIGARS or tobacco products in this state during such calendar
6 year, unless it is re-registered. The provisions of section eleven
7 hundred thirty-nine of this chapter shall apply to the refund or credit
8 authorized by the preceding sentence and for such purposes, such refund
9 or credit shall be deemed a refund of tax paid in error provided, howev-
10 er, no interest shall be allowed or paid on any such refund.
11 S 33. Paragraph (b) of subdivision 3 of section 480-a of the tax law,
12 as amended by section 125-a of part C of chapter 58 of the laws of 2009,
13 is amended to read as follows:
14 (b) Any person who owns or, if the owner is not the operator, then any
15 person who operates one or more vending machines through which ciga-
16 rettes, CIGARS or tobacco products are sold in this state and who
17 violates the provisions of this section, after due notice and an oppor-
18 tunity for a hearing, for a first violation is liable for a civil fine
19 not less than seven hundred fifty dollars but not to exceed two thousand
20 dollars and for a second or subsequent violation within three years
21 following a prior finding of violation be liable for a civil fine not
22 less than two thousand dollars but not to exceed six thousand dollars.
23 S 34. Clause (B) of subparagraph (i) of paragraph (a) of subdivision 1
24 of section 481 of the tax law, as amended by chapter 61 of the laws of
25 1989, is amended to read as follows:
26 (B) If a tax on cigarettes, CIGARS or on tobacco products under this
27 article is not paid when due by any other person, the person liable for
28 the payment of such tax shall be subject to a penalty of fifty per
29 centum of the amount of such tax determined to be due as provided in
30 this article plus one per centum of such amount for each month or frac-
31 tion thereof during which such failure to pay continues after the expi-
32 ration of the first month after such tax became due.
33 S 35. Subparagraph (i) of paragraph (b) of subdivision 1 of section
34 481 of the tax law, as amended by chapter 604 of the laws of 2008, is
35 amended to read as follows:
36 (i) In addition to any other penalty imposed by this article, the
37 commissioner may (A) impose a penalty of not more than one hundred fifty
38 dollars for each two hundred cigarettes, or fraction thereof, in excess
39 of one thousand cigarettes in unstamped or unlawfully stamped packages
40 in the possession or under the control of any person or (B) impose a
41 penalty of not more than two hundred dollars for each ten unaffixed
42 false, altered or counterfeit cigarette tax stamps, imprints or
43 impressions, or fraction thereof, in the possession or under the control
44 of any person. In addition, the commissioner may impose a penalty of not
45 more than seventy-five dollars for each fifty cigars or one pound of
46 tobacco, or fraction thereof, in excess of [two hundred] fifty cigars or
47 five pounds of tobacco in the possession or under the control of any
48 person and a penalty of not more than one hundred fifty dollars for each
49 fifty cigars or pound of tobacco, or fraction thereof, in excess of five
50 hundred cigars or ten pounds of tobacco in the possession or under the
51 control of any person, with respect to which the CIGAR OR tobacco
52 products tax has not been paid or assumed by a distributor or CIGAR OR
53 tobacco products dealer; provided, however, that any such penalty
54 imposed shall not exceed seven thousand five hundred dollars in the
55 aggregate. The commissioner may impose a penalty of not more than seven-
56 ty-five dollars for each fifty cigars or one pound of tobacco, or frac-
A. 9059--C 23
1 tion thereof, in excess of fifty cigars or one pound of tobacco in the
2 possession or under the control of any CIGAR OR tobacco products dealer
3 or distributor appointed by the commissioner, and a penalty of not more
4 than one hundred fifty dollars for each fifty cigars or pound of tobac-
5 co, or fraction thereof, in excess of [two hundred] fifty cigars or five
6 pounds of tobacco in the possession or under the control of any such
7 dealer or distributor, with respect to which the CIGAR OR tobacco
8 products tax has not been paid or assumed by a distributor or a CIGAR OR
9 tobacco products dealer; provided, however, that any such penalty
10 imposed shall not exceed fifteen thousand dollars in the aggregate.
11 S 36. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of
12 subdivision 1 of section 481 of the tax law, as added by chapter 262 of
13 the laws of 2000, are amended to read as follows:
14 (B)(I) not less than twenty-five dollars but not more than one hundred
15 dollars for each fifty cigars or one pound of tobacco, or fraction ther-
16 eof, in excess of [two hundred] fifty cigars or five pounds of tobacco
17 knowingly in the possession or knowingly under the control of any
18 person, with respect to which the CIGAR OR tobacco products tax has not
19 been paid or assumed by a distributor or CIGAR OR tobacco products deal-
20 er; and
21 (II) not less than fifty dollars but not more than two hundred dollars
22 for each fifty cigars or pound of tobacco, or fraction thereof, in
23 excess of [five] ONE hundred cigars or ten pounds of tobacco knowingly
24 in the possession or knowingly under the control of any person, with
25 respect to which the CIGAR OR tobacco products tax has not been paid or
26 assumed by a distributor or CIGAR OR tobacco products dealer; provided,
27 however, that any such penalty imposed under this clause shall not
28 exceed ten thousand dollars in the aggregate.
29 (C)(I) not less than twenty-five dollars but not more than one hundred
30 dollars for each fifty cigars or one pound of tobacco, or fraction ther-
31 eof, in excess of fifty cigars or one pound of tobacco knowingly in the
32 possession or knowingly under the control of any person, with respect to
33 which the CIGAR OR tobacco products tax has not been paid or assumed by
34 a distributor or CIGAR OR tobacco products dealer; and
35 (II) not less than fifty dollars but not more than two hundred dollars
36 for each fifty cigars or pound of tobacco, or fraction thereof, in
37 excess of [two hundred fifty] ONE HUNDRED cigars or five pounds of
38 tobacco knowingly in the possession or knowingly under the control of
39 any person, with respect to which the CIGAR OR tobacco products tax has
40 not been paid or assumed by a distributor or a CIGAR OR tobacco products
41 dealer; provided, however, that any such penalty imposed under this
42 clause shall not exceed twenty thousand dollars in the aggregate.
43 S 37. Subdivision 2 of section 481 of the tax law, as amended by chap-
44 ter 61 of the laws of 1989 and paragraph (a) as amended by chapter 552
45 of the laws of 2008, is amended to read as follows:
46 2. (a) The possession within this state of more than four hundred
47 cigarettes in unstamped or unlawfully stamped packages, or more than
48 [two hundred] fifty cigars, or more than five pounds of tobacco other
49 than roll-your-own tobacco, or more than thirty-six ounces of roll-your-
50 own tobacco by any person other than an agent or distributor, as the
51 case may be, at any one time shall be presumptive evidence that such
52 cigarettes, CIGARS or tobacco products are subject to tax as provided by
53 this article.
54 (b) Nothing in this section shall apply to common or contract carriers
55 or warehousemen while engaged in lawfully transporting or storing
56 CIGARS, tobacco products or unstamped packages of cigarettes as merchan-
A. 9059--C 24
1 dise, nor to any employee of such carrier or warehouseman acting within
2 the scope of his OR HER employment, nor to public officers or employees
3 in the performance of their official duties requiring possession or
4 control of CIGARS, tobacco products or unstamped or unlawfully stamped
5 packages of cigarettes, nor to temporary incidental possession by
6 employees or agents of persons lawfully entitled to possession, nor to
7 persons whose possession is for the purpose of aiding police officers in
8 performing their duties.
9 S 38. The tax law is amended by adding new section 481-a to read as
10 follows:
11 S 481-A. PENALTIES AND INTEREST FOR RETAIL DEALERS. (A) (1) (I) ANY
12 PERSON FAILING TO FILE A RETURN OR TO PAY OR PAY OVER ANY TAX TO THE
13 COMMISSIONER WITHIN THE TIME REQUIRED BY OR PURSUANT TO THIS ARTICLE
14 (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR FILING OR PAYING)
15 SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF TAX DUE IF
16 SUCH FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL ONE
17 PERCENT FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH SUCH
18 FAILURE CONTINUES, NOT EXCEEDING THIRTY PERCENT IN THE AGGREGATE.
19 PROVIDED, HOWEVER, IN THE CASE OF A FAILURE TO FILE SUCH RETURN WITHIN
20 SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF SUCH RETURN BY OR PURSU-
21 ANT TO THIS ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR
22 FILING), THE PENALTY IMPOSED BY THIS SUBPARAGRAPH SHALL NOT BE LESS THAN
23 THE LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE AMOUNT
24 REQUIRED TO BE SHOWN AS TAX ON SUCH RETURN. FOR THE PURPOSE OF THE
25 PRECEDING SENTENCE, THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN
26 SHALL BE REDUCED BY THE AMOUNT OF ANY PART OF THE TAX WHICH IS PAID ON
27 OR BEFORE THE DATE PRESCRIBED FOR PAYMENT OF THE TAX AND BY THE AMOUNT
28 OF ANY CREDIT AGAINST THE TAX WHICH MAY BE CLAIMED UPON THE RETURN. IN
29 THE CASE OF A FAILURE TO FILE A RETURN BY A PERSON REQUIRED TO REGISTER
30 WITH THE COMMISSIONER AS PROVIDED IN SECTION FOUR HUNDRED EIGHTY-A OF
31 THIS ARTICLE, IN NO EVENT SHALL THE PENALTY FOR FAILURE TO FILE A RETURN
32 BE LESS THAN ONE HUNDRED FIFTY DOLLARS.
33 (II) IF ANY AMOUNT OF TAX IS NOT PAID ON OR BEFORE THE LAST DATE
34 PRESCRIBED IN THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT AT THE
35 RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM OR AT THE UNDERPAYMENT
36 RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF
37 SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, WHICHEVER IS GREATER,
38 SHALL BE PAID FOR THE PERIOD FROM SUCH LAST DATE TO THE DATE PAID,
39 WHETHER OR NOT ANY EXTENSION OF TIME FOR PAYMENT WAS GRANTED. INTEREST
40 UNDER THIS SUBPARAGRAPH SHALL NOT BE PAID IF THE AMOUNT THEREOF IS LESS
41 THAN ONE DOLLAR.
42 (III) IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS
43 DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY
44 REMIT ALL OF SUCH PENALTY AND THAT PORTION OF SUCH INTEREST THAT EXCEEDS
45 THE INTEREST THAT WOULD BE PAYABLE IF SUCH INTEREST WERE COMPUTED AT THE
46 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
47 TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER. THE COMMIS-
48 SIONER MAY PROMULGATE RULES AND REGULATIONS AS TO WHAT CONSTITUTES
49 REASONABLE CAUSE.
50 (IV) ANY PERSON REQUIRED BY THIS ARTICLE TO FILE A RETURN, WHO OMITS
51 FROM THE TOTAL AMOUNT OF CIGAR EXCISE TAX REQUIRED TO BE SHOWN ON A
52 RETURN AN AMOUNT WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT
53 OF SUCH TAXES REQUIRED TO BE SHOWN ON THE RETURN SHALL BE SUBJECT TO A
54 PENALTY EQUAL TO TEN PERCENT OF THE AMOUNT OF SUCH OMISSION. IF THE
55 COMMISSIONER DETERMINES THAT SUCH OMISSION WAS DUE TO REASONABLE CAUSE
56 AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT ALL OF SUCH PENALTY.
A. 9059--C 25
1 (V) ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS CIGARS AT RETAIL AND
2 WHO SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH PERSON'S CUSTODY OR
3 POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGARS ON WHICH (A) THE
4 PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
5 CLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS SUCH UNDER
6 THIS ARTICLE, OR (B) THE PREPAID TAX IMPOSED BY SUCH SECTION FOUR
7 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS REQUIRED TO HAVE BEEN PASSED
8 THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE COST OF SUCH
9 CIGARS TO SUCH PERSON, SHALL BE LIABLE FOR A PENALTY IN THE AMOUNT OF
10 TWICE THE TAX NOT SO ASSUMED OR PAID, OR INCLUDED. SUCH PENALTY SHALL
11 BE DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES
12 IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE RELATING
13 THERETO SHALL BE DEEMED ALSO TO REFER TO THE PENALTY IMPOSED BY THIS
14 SUBPARAGRAPH. SUCH PENALTY MAY BE DETERMINED AT ANY TIME WITHIN THREE
15 YEARS AFTER SUCH CIGARS SHALL HAVE COME INTO SUCH PERSON'S CUSTODY OR
16 POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
17 GRAPH, SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH PERSON'S
18 CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGAR ON WHICH
19 (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS
20 SUCH UNDER THIS ARTICLE, OR (B) SUCH TAX WAS REQUIRED TO HAVE BEEN
21 PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE COST OF
22 SUCH CIGARS TO SUCH PERSON, WHERE SUCH PERSON HAS KNOWLEDGE OF THE
23 REQUIREMENT THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED AND WHERE,
24 TO SUCH PERSON'S KNOWLEDGE, SUCH TAXES HAVE NOT BEEN SO PAID OR ASSUMED
25 OR SO INCLUDED. FOR PURPOSES OF THIS SUBPARAGRAPH, IT SHALL BE PRESUMP-
26 TIVE EVIDENCE THAT SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN
27 SUCH PERSON'S CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL
28 CIGARS ON WHICH (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBU-
29 TOR AUTHORIZED AS SUCH UNDER THIS ARTICLE OR (B) SUCH TAX WAS REQUIRED
30 TO HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN
31 THE COST OF SUCH CIGARS TO SUCH PERSON WHERE SUCH PERSON HAS NOT
32 RECEIVED THE CERTIFICATION REQUIRED BY SECTION FOUR HUNDRED
33 SEVENTY-ONE-K OF THIS ARTICLE AT THE TIME OF DELIVERY OF SUCH CIGARS OR,
34 IN THOSE CIRCUMSTANCES WHERE THE COMMISSIONER HAS AUTHORIZED THE DELIV-
35 ERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE CIGARS, AT THE
36 TIME PRESCRIBED BY THE COMMISSIONER.
37 (2) IF THE FAILURE TO PAY OR PAY OVER ANY TAX TO THE COMMISSIONER
38 WITHIN THE TIME REQUIRED BY THIS ARTICLE IS DUE TO FRAUD, IN LIEU OF THE
39 PENALTIES AND INTEREST PROVIDED FOR IN SUBPARAGRAPHS (I) AND (II) OF
40 PARAGRAPH ONE OF THIS SUBDIVISION, THERE SHALL BE ADDED TO THE TAX (I) A
41 PENALTY OF TWO TIMES THE AMOUNT OF THE TAX DUE, PLUS (II) INTEREST ON
42 SUCH UNPAID TAX AT THE RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM
43 OR THE UNDERPAYMENT RATE OF INTEREST SET BY THE COMMISSIONER PURSUANT TO
44 SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS
45 CHAPTER, WHICHEVER IS GREATER, FOR THE PERIOD BEGINNING ON THE LAST DAY
46 PRESCRIBED BY THIS ARTICLE FOR THE PAYMENT OF SUCH TAX (DETERMINED WITH-
47 OUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON THE DAY ON
48 WHICH SUCH TAX IS PAID.
49 (3) (I) ANY PERSON REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
50 UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS ARTICLE WHO, WITHOUT
51 POSSESSING A VALID CERTIFICATE OF REGISTRATION, SELLS CIGARETTES, CIGARS
52 AND TOBACCO PRODUCTS SHALL, IN ADDITION TO ANY OTHER PENALTY IMPOSED BY
53 THIS CHAPTER, BE SUBJECT TO A PENALTY IN AN AMOUNT NOT EXCEEDING FIVE
54 HUNDRED DOLLARS FOR THE FIRST DAY ON WHICH SUCH SALES OR PURCHASES ARE
55 MADE, PLUS AN AMOUNT NOT EXCEEDING TWO HUNDRED DOLLARS FOR EACH SUBSE-
A. 9059--C 26
1 QUENT DAY ON WHICH SUCH SALES OR PURCHASES ARE MADE, NOT TO EXCEED TEN
2 THOUSAND DOLLARS IN THE AGGREGATE.
3 (II) IF THE COMMISSIONER DETERMINES THAT ANY FAILURE OR ACT DESCRIBED
4 IN THIS PARAGRAPH WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL
5 NEGLECT, HE OR SHE MAY REMIT ALL OR PART OF SUCH PENALTY.
6 (4) ANY PERSON REQUIRED BY THIS ARTICLE TO DISPLAY A CERTIFICATE OF
7 REGISTRATION, WHO FAILS TO DISPLAY SUCH CERTIFICATE IN THE MANNER
8 REQUIRED BY THIS ARTICLE OR ANY RULE OR REGULATION ADOPTED BY THE
9 COMMISSIONER IN CONNECTION WITH SUCH REQUIREMENT SHALL, IN ADDITION TO
10 ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, BE SUBJECT TO A PENALTY OF
11 FIFTY DOLLARS. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE WAS DUE
12 TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT
13 ALL OR PART OF SUCH PENALTY.
14 (5) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SUBDIVISION SHALL
15 BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM THIS
16 ARTICLE. SUCH PENALTIES AND INTEREST MAY BE DETERMINED, ASSESSED,
17 COLLECTED AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS
18 ARTICLE. INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
19 (B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
20 OF THIS CHAPTER.
21 (C) ANY PERSON FAILING TO FILE A RETURN OR TO PAY ANY TAX REQUIRED TO
22 BE PREPAID TO THE COMMISSIONER WITH RESPECT TO CIGARS PURSUANT TO THE
23 PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITHIN
24 THE TIME REQUIRED BY THIS ARTICLE SHALL, IN ADDITION TO ANY OTHER PENAL-
25 TY PROVIDED IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A
26 PENALTY EQUAL TO THE AMOUNT OF TAX REQUIRED TO BE SO PREPAID PURSUANT TO
27 THE PROVISIONS OF SUCH SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
28 CLE. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE TO FILE A RETURN
29 OR TO PAY ANY SUCH TAX WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILL-
30 FUL NEGLECT, HE OR SHE MAY REMIT ALL OR ANY PART OF SUCH PENALTY.
31 (D) THE CERTIFICATE OF THE COMMISSIONER TO THE EFFECT THAT A TAX HAS
32 NOT BEEN PAID, THAT A RETURN, BOND OR REGISTRATION CERTIFICATE HAS NOT
33 BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED PURSUANT TO THE
34 PROVISIONS OF THIS ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THEREOF.
35 (E) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
36 WHO FAILS TO MAKE OR MAINTAIN OR MAKE AVAILABLE TO THE COMMISSIONER
37 THESE RECORDS IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS
38 FOR THE FIRST PERIOD OR PART THEREOF FOR WHICH THE FAILURE OCCURS AND
39 NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH ADDITIONAL PERIOD OR PART
40 THEREOF FOR WHICH THE FAILURE OCCURS. THIS PENALTY IS IN ADDITION TO ANY
41 OTHER PENALTY PROVIDED FOR IN THIS ARTICLE BUT MAY NOT BE IMPOSED AND
42 COLLECTED MORE THAN ONCE FOR FAILURES FOR THE SAME PERIOD OR PART THERE-
43 OF. IF THE COMMISSIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR
44 MAKE AVAILABLE RECORDS IN ANY PERIOD WAS ENTIRELY DUE TO REASONABLE
45 CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENAL-
46 TY IMPOSED FOR THAT PERIOD. THESE PENALTIES WILL BE PAID AND DISPOSED OF
47 IN THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE PENALTIES
48 WILL BE DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME
49 MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND ALL THE PROVISIONS OF
50 THIS ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENAL-
51 TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
52 THIS SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE OR
53 MAINTAIN THE REQUIRED RECORDS WHEN THE RECORDS MADE OR MAINTAINED BY
54 THAT PERSON FOR A PERIOD MAKE IT VIRTUALLY IMPOSSIBLE TO VERIFY SALES
55 RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
A. 9059--C 27
1 (F) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
2 FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT WILL BE SUBJECT TO A
3 PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
4 DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
5 ANY OTHER PENALTY PROVIDED BY LAW.
6 (G) AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS, REPORTS,
7 STATEMENTS OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT TAX
8 BE EVADED, FOR A FEE OR OTHER COMPENSATION OR AS AN INCIDENT TO THE
9 PERFORMANCE OF OTHER SERVICES FOR WHICH THAT PERSON RECEIVES COMPEN-
10 SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
11 RATION OR PRESENTATION UNDER THIS ARTICLE, OR IN CONNECTION WITH ANY
12 MATTER ARISING UNDER THIS ARTICLE, OF ANY RETURN, REPORT, DECLARATION,
13 STATEMENT OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY MATE-
14 RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
15 NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
16 AUTHORIZED OR REQUIRED TO PRESENT THAT RETURN, REPORT, DECLARATION,
17 STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
18 SAND DOLLARS.
19 (H) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
20 ANY PORTION OR ALL OF THE RECORDS HE OR SHE IS REQUIRED TO MAKE AND
21 MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
22 ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
23 TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH PERIOD OR PART
24 THEREOF FOR WHICH THESE ELECTRONIC RECORDS ARE NOT PRESENTED AND MADE
25 AVAILABLE AND ACCESSIBLE UPON REQUEST, NOTWITHSTANDING THAT THE RECORDS
26 MAY ALSO BE MAINTAINED AND AVAILABLE IN HARD COPY FORMAT. THIS PENALTY
27 IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN THIS ARTICLE, BUT
28 MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR A FAILURE FOR THE
29 SAME PERIOD OR PART THEREOF. PROVIDED, HOWEVER, NOTHING IN THIS SUBDI-
30 VISION WILL PREVENT THE SEPARATE IMPOSITION, IF APPLICABLE, OF ANY
31 PENALTY IMPOSED BY THIS SECTION FOR THE SAME PERIOD OR PART THEREOF. IF
32 THE COMMISSIONER DETERMINES THAT THE FAILURE TO PRESENT AND MAKE ELEC-
33 TRONICALLY MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A PERIOD WAS
34 ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
35 SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT PERIOD. THESE PENALTIES
36 WILL BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
37 THIS ARTICLE. THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,
38 PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
39 AND ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE DEEMED
40 ALSO TO APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION. FOR PURPOSES
41 OF THE PENALTY IMPOSED BY THIS SUBDIVISION, A FAILURE TO PRESENT AND
42 MAKE AVAILABLE AND ACCESSIBLE A RECORD MAINTAINED IN ELECTRONIC FORMAT
43 INCLUDES NOT ONLY THE DENIAL OF ACCESS TO THE REQUESTED RECORDS THAT
44 WERE MAINTAINED ELECTRONICALLY, BUT ALSO THE FAILURE TO MAKE AVAILABLE
45 TO THE COMMISSIONER THE INFORMATION, KNOWLEDGE, OR MEANS NECESSARY TO
46 ACCESS AND OTHERWISE USE THE ELECTRONICALLY MAINTAINED RECORDS IN THE
47 INSPECTION AND EXAMINATION OF THESE RECORDS.
48 S 39. Subdivision (h) of section 1111 of the tax law, as amended by
49 section 1 of part Q-3 of chapter 62 of the laws of 2003, is amended to
50 read as follows:
51 (h) Receipts subject to tax under subdivision (a) of section eleven
52 hundred five on retail sales of cigarettes, CIGARS and tobacco products
53 and consideration given or contracted to be given for cigarettes, CIGARS
54 and tobacco products the uses of which are subject to tax under section
55 eleven hundred ten shall be deemed to include any tax imposed on ciga-
56 rettes, CIGARS and tobacco products by article twenty of this chapter
A. 9059--C 28
1 and any tax imposed on cigarettes AND CIGARS by chapter thirteen of
2 title eleven of the administrative code of the city of New York.
3 S 40. Subdivision (e) of section 1814 of the tax law, as amended by
4 section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009,
5 is amended to read as follows:
6 (e) Nothing in this section shall apply to common or contract carriers
7 or warehousemen while engaged in lawfully transporting or storing
8 unstamped packages of cigarettes as merchandise, or lawfully transport-
9 ing or storing CIGARS OR tobacco products, nor to any employee of such
10 carrier or warehouseman acting within the scope of his OR HER employ-
11 ment, nor to public officers or employees in the performance of their
12 official duties requiring possession or control of unstamped or unlaw-
13 fully stamped packages of cigarettes or possession or control of CIGARS
14 OR tobacco products, nor to temporary incidental possession by employees
15 or agents of persons lawfully entitled to possession, nor to persons
16 whose possession is for the purpose of aiding police officers in
17 performing their duties.
18 S 41. Paragraphs 3 and 4 of subdivision (h) of section 1814 of the tax
19 law, as amended by section 28 of subpart I of part V-1 of chapter 57 of
20 the laws of 2009, are amended to read as follows:
21 (3) Any person, other than a distributor appointed by the commissioner
22 under article twenty of this chapter, who shall knowingly transport or
23 have in his OR HER custody, possession or under his OR HER control twen-
24 ty-five hundred or more cigars or fifty or more pounds of tobacco upon
25 which the taxes imposed by article twenty of this chapter have not been
26 assumed or paid by a distributor appointed by the commissioner under
27 article twenty of this chapter, or other person treated as a distributor
28 pursuant to section four hundred seventy-one-d of this chapter shall be
29 guilty of a misdemeanor. Provided further, that any person who has twice
30 been convicted under this subdivision shall be guilty of a class E felo-
31 ny for any subsequent violation of this section, regardless of the
32 amount of CIGARS OR tobacco products involved in such violation.
33 (4) For purposes of this subdivision, such person shall knowingly
34 transport or have in his OR HER custody, possession or under his OR HER
35 control tobacco PRODUCTS or cigars on which such taxes have not been
36 assumed or paid by a distributor appointed by the commissioner where
37 such person has knowledge of the requirement of the tax on CIGARS AND
38 tobacco products and, where to his OR HER knowledge, such taxes have not
39 been assumed or paid on such CIGARS OR tobacco products by a distributor
40 appointed by the commissioner [of taxation and finance].
41 S 42. Section 1814-a of the tax law, as added by chapter 61 of the
42 laws of 1989, is amended to read as follows:
43 S 1814-a. Person not appointed as a [tobacco products] distributor OF
44 CIGARS OR TOBACCO PRODUCTS. (a) Any person who, while not appointed as a
45 distributor of CIGARS OR tobacco products pursuant to the provisions of
46 article twenty of this chapter, imports or causes to be imported into
47 the state more than fifty cigars or more than one pound of tobacco, for
48 sale within the state, or produces, manufactures or compounds CIGARS OR
49 tobacco products within the state shall be guilty of a misdemeanor
50 punishable by a fine of not more than five thousand dollars or by a term
51 of imprisonment not to exceed thirty days. If, within any ninety day
52 period, one thousand or more cigars or five hundred pounds or more of
53 tobacco are imported or caused to be imported into the state for sale
54 within the state or are produced, manufactured or compounded within the
55 state by any person while not appointed as a distributor of CIGARS OR
56 tobacco products, such person shall be guilty of a misdemeanor. Provided
A. 9059--C 29
1 further, that any person who has twice been convicted under this section
2 shall be guilty of a class E felony for any subsequent violation of this
3 section, regardless of the amount of CIGARS OR tobacco products involved
4 in such violation.
5 (b) For purposes of this section, the possession or transportation
6 within this state by any person, other than a CIGAR OR tobacco products
7 distributor appointed by the commissioner [of taxation and finance], at
8 any one time of seven hundred fifty or more cigars or fifteen pounds or
9 more of tobacco shall be presumptive evidence that such tobacco products
10 are possessed or transported for the purpose of sale and are subject to
11 the tax imposed by section four hundred seventy-one-b, SECTION FOUR
12 HUNDRED SEVENTY-ONE-F OR SECTION FOUR HUNDRED SEVENTY-ONE-H of this
13 chapter. With respect to such possession or transportation, any
14 provisions of article twenty of this chapter providing for a time period
15 during which the tax imposed by such article may be paid shall not
16 apply.
17 S 43. The section heading, subdivisions (a), (b) and (c) of section
18 1846-a of the tax law, as amended by chapter 556 of the laws of 2011,
19 are amended to read as follows:
20 Forfeiture action with respect to CIGARS AND tobacco products. (a)
21 Whenever a police officer designated in section 1.20 of the criminal
22 procedure law or a peace officer designated in subdivision four of
23 section 2.10 of such law, acting pursuant to his OR HER special duties,
24 shall discover any tobacco products in excess of five hundred cigars or
25 ten pounds of tobacco which are being imported for sale in the state
26 where the person importing or causing such CIGARS AND tobacco products
27 to be imported has not been appointed as a distributor pursuant to
28 section four hundred seventy-two of this chapter, such police officer or
29 peace officer is hereby authorized and empowered forthwith to seize and
30 take possession of such CIGARS AND tobacco products. Such CIGARS AND
31 tobacco products seized by a police officer or peace officer shall be
32 turned over to the commissioner. Such seized CIGARS AND tobacco products
33 shall be forfeited to the state. All CIGARS AND tobacco products
34 forfeited to the state shall be destroyed or used for law enforcement
35 purposes, except that CIGARS OR tobacco products that violate, or are
36 suspected of violating, federal trademark laws or import laws shall not
37 be used for law enforcement purposes. If the commissioner determines the
38 CIGARS OR tobacco products may not be used for law enforcement purposes,
39 the commissioner must, within a reasonable time thereafter, upon publi-
40 cation in the state registry of a notice to such effect before the day
41 of destruction, destroy such forfeited CIGARS OR tobacco products. The
42 commissioner may, prior to any destruction of CIGARS OR tobacco
43 products, permit the true holder of the trademark rights in the CIGARS
44 OR tobacco products to inspect such forfeited products in order to
45 assist in any investigation regarding such CIGARS OR tobacco products.
46 (b) In the alternative, the commissioner, on reasonable notice by mail
47 or otherwise, may permit the person from whom said CIGARS OR tobacco
48 products were seized to redeem the said CIGARS OR tobacco products by
49 the payment of the tax due, plus a penalty of fifty per centum thereof,
50 plus interest on the amount of tax due for each month or fraction there-
51 of after such tax became due (determined without regard to any extension
52 of time for filing or paying) at the rate applicable under subparagraph
53 (ii) of paragraph (a) of subdivision one of section four hundred eight-
54 y-one of this chapter and the costs incurred in such proceeding, which
55 total payment shall not be less than five dollars; provided, however,
56 that such seizure and sale or redemption shall not be deemed to relieve
A. 9059--C 30
1 any person from fine or imprisonment provided for in this article for
2 violation of any provision of article twenty of this chapter.
3 (c) In the alternative, the commissioner may dispose of any CIGARS OR
4 tobacco products seized pursuant to this section, except those that
5 violate, or are suspected of violating, federal trademark or import
6 laws, by transferring them to the department of corrections and communi-
7 ty supervision for sale to or use by inmates in such institutions.
8 S 44. The section heading of section 1847 of the tax law, as amended
9 by chapter 61 of the laws of 1989, is amended to read as follows:
10 Seizure and forfeiture of vehicles or other means of transportation
11 used to transport or for deposit or concealment of cigarettes or used to
12 import CIGARS OR tobacco products.
13 S 45. Subdivision (b) of section 1847 of the tax law, as added by
14 chapter 61 of the laws of 1989, is amended to read as follows:
15 (b) Any peace officer designated in subdivision four of section 2.10
16 of the criminal procedure law, acting pursuant to his OR HER special
17 duties, or any police officer designated in section 1.20 of the criminal
18 procedure law may seize any vehicle or other means of transportation
19 used to import CIGARS OR tobacco products in excess of five hundred
20 cigars or ten pounds of tobacco for sale where the person importing or
21 causing such CIGARS OR tobacco products to be imported has not been
22 appointed a distributor pursuant to section four hundred seventy-two of
23 this chapter, other than a vehicle or other means of transportation used
24 by any person as a common carrier in transaction of business as such
25 common carrier, and such vehicle or other means of transportation shall
26 be subject to forfeiture as hereinafter in this section provided.
27 S 46. This act shall take effect July 1, 2012; provided, however, that
28 section eleven of this act shall take effect immediately.
29 PART D
30 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006,
31 amending the tax law relating to providing exemptions, reimbursements
32 and credits from various taxes for certain alternative fuels, as amended
33 by section 2 of part L of chapter 61 of the laws of 2011, is amended to
34 read as follows:
35 S 19. This act shall take effect immediately; provided, however, that
36 sections one through thirteen of this act shall take effect September 1,
37 2006 and shall be deemed repealed on September 1, [2012] 2014 and such
38 repeal shall apply in accordance with the applicable transitional
39 provisions of sections 1106 and 1217 of the tax law, and shall apply to
40 sales made, fuel compounded or manufactured, and uses occurring on or
41 after such date, and with respect to sections seven through eleven of
42 this act, in accordance with applicable transitional provisions of
43 sections 1106 and 1217 of the tax law; provided, however, that the
44 commissioner of taxation and finance shall be authorized on and after
45 the date this act shall have become a law to adopt and amend any rules
46 or regulations and to take any steps necessary to implement the
47 provisions of this act; provided further that sections fourteen through
48 sixteen of this act shall take effect immediately and shall apply to
49 taxable years beginning on or after January 1, 2006.
50 S 2. This act shall take effect immediately.
51 PART E
A. 9059--C 31
1 Section 1. Subdivision 14 of section 282 of the tax law, as amended by
2 section 1 of part K of chapter 61 of the laws of 2011, is amended to
3 read as follows:
4 14. "Diesel motor fuel" shall mean No. 1 Diesel fuel, No. 2 Diesel
5 fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
6 late and also motor fuel suitable for use in the operation of an engine
7 of the diesel type, excluding, however, any product specifically desig-
8 nated "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
9 tion of a motor vehicle engine.
10 S 2. Paragraph (b) of subdivision 3 of section 282-a of the tax law,
11 as amended by section 5 of part K of chapter 61 of the laws of 2011, is
12 amended to read as follows:
13 (b) The tax on the incidence of sale or use imposed by subdivision one
14 of this section shall not apply to: (i) the sale or use of non-highway
15 Diesel motor fuel, but only if all of such fuel is consumed other than
16 on the public highways of this state (except for the use of the public
17 highway by farmers to reach adjacent farmlands); provided, however, this
18 exemption shall in no event apply to a sale of non-highway Diesel motor
19 fuel which involves a delivery at a filling station or into a repository
20 which is equipped with a hose or other apparatus by which such fuel can
21 be dispensed into the fuel tank of a motor vehicle (except for delivery
22 at a farm site which qualifies for the exemption under subdivision (g)
23 of section three hundred one-b of this chapter); or (ii) a sale to the
24 consumer consisting of not more than twenty gallons of water-white kero-
25 sene to be used and consumed exclusively for heating purposes; or (iii)
26 the sale to or delivery at a filling station or other retail vendor of
27 water-white kerosene provided such filling station or other retail
28 vendor only sells such water-white kerosene exclusively for heating
29 purposes in containers of no more than twenty gallons; or (iv) a sale of
30 kero-jet fuel to an airline for use in its airplanes or a use of kero-
31 jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
32 by a registered distributor of Diesel motor fuel to a fixed base opera-
33 tor registered under this article as a distributor of kero-jet fuel only
34 where such fixed base operator is engaged solely in making or offering
35 to make retail sales not in bulk of kero-jet fuel directly into the fuel
36 tank of an airplane for the purpose of operating such airplane; [or]
37 (vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
38 registered under this article as a distributor of kero-jet fuel only
39 where such fuel is delivered directly into the fuel tank of an airplane
40 for use in the operation of such airplane; OR (VII) THE SALE OF PREVI-
41 OUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON REGISTERED UNDER THIS
42 ARTICLE AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL
43 SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
44 ERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED WITH A
45 HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
46 DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
47 S 3. Paragraph 5 of subdivision (a) of section 301-b of the tax law,
48 as added by chapter 190 of the laws of 1990, is amended to read as
49 follows:
50 (5) [Crude oil and liquefied] LIQUIFIED petroleum gases, such as
51 butane, ethane or propane.
52 S 4. Subdivision (e) of section 301-b of the tax law, as amended by
53 section 21 of part K of chapter 61 of the laws of 2011, is amended to
54 read as follows:
A. 9059--C 32
1 (e) Sales of QUALIFIED BIODIESEL, non-highway diesel motor fuel and
2 residual petroleum product to registered distributors of diesel motor
3 fuel and registered residual petroleum product businesses.
4 (1) [Non-highway] QUALIFIED BIODIESEL AND NON-HIGHWAY Diesel motor
5 fuel sold by a person registered under article twelve-A of this chapter
6 as a distributor of diesel motor fuel to a person registered under such
7 article twelve-A as a distributor of diesel motor fuel where such sale
8 is not a retail sale or a sale that involves a delivery at a filling
9 station or into a repository equipped with a hose or other apparatus by
10 which such QUALIFIED BIODIESEL OR non-highway Diesel motor fuel can be
11 dispensed into the fuel tank of a motor vehicle.
12 (2) Residual petroleum product sold by a person registered under this
13 article as a residual petroleum product business to a person registered
14 under this article as a residual petroleum product business where such
15 sale is not a retail sale. Provided, however, that the commissioner may
16 require such documentary proof to qualify for any exemption provided in
17 this section as the commissioner deems appropriate, including the expan-
18 sion of any certifications required pursuant to section two hundred
19 eighty-five-a or two hundred eighty-five-b of this chapter to cover the
20 taxes imposed by this article.
21 (3) "QUALIFIED BIODIESEL" MEANS SUCH TERM AS DEFINED IN SUBDIVISION
22 TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
23 S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
24 amended by section 39 of part K of chapter 61 of the laws of 2011, is
25 amended to read as follows:
26 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
27 on account of the taxes imposed by this article and pursuant to the
28 authority of article twenty-nine of this chapter, a tax upon the sale or
29 use of diesel motor fuel in this state. The tax shall be computed based
30 upon the number of gallons of diesel motor fuel sold or used. Provided,
31 however, if the tax has not been imposed prior thereto, it shall be
32 imposed on the delivery of diesel motor fuel to a retail service
33 station. The collection of such tax shall not be made applicable to the
34 sale or use of diesel motor fuel under circumstances which preclude the
35 collection of such tax by reason of the United States constitution and
36 of laws of the United States enacted pursuant thereto. The prepaid tax
37 on diesel motor fuel shall not apply to (i) the sale of previously
38 untaxed non-highway Diesel motor fuel to a person registered as a
39 distributor of Diesel motor fuel other than a sale to such person which
40 involves a delivery at a filling station or into a repository which is
41 equipped with a hose or other apparatus by which such fuel can be
42 dispensed into the fuel tank of a motor vehicle, [or] (ii) the sale to
43 or delivery at a filling station or other retail vendor of water-white
44 kerosene provided such filling station or other retail vendor only sells
45 such water-white kerosene exclusively for heating purposes in containers
46 of no more than twenty gallons or to the sale of CNG or hydrogen; OR
47 (III) THE SALE OF PREVIOUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON
48 REGISTERED UNDER ARTICLE TWELVE-A OF THIS CHAPTER AS A DISTRIBUTOR OF
49 DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR (B) A
50 SALE TO SUCH PERSON WHICH INVOLVES A DELIVERY AT A FILLING STATION OR
51 INTO A REPOSITORY WHICH IS EQUIPPED WITH A HOSE OR OTHER APPARATUS BY
52 WHICH SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF A
53 MOTOR VEHICLE. "QUALIFIED BIODIESEL" MEANS SUCH TERM AS DEFINED IN
54 SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
55 TER.
A. 9059--C 33
1 S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
2 amended by section 39-a of part K of chapter 61 of the laws of 2011, is
3 amended to read as follows:
4 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
5 on account of the taxes imposed by this article and pursuant to the
6 authority of article twenty-nine of this chapter, a tax upon the sale or
7 use of diesel motor fuel in this state. The tax shall be computed based
8 upon the number of gallons of diesel motor fuel sold or used. Provided,
9 however, if the tax has not been imposed prior thereto, it shall be
10 imposed on the delivery of diesel motor fuel to a retail service
11 station. The collection of such tax shall not be made applicable to the
12 sale or use of diesel motor fuel under circumstances which preclude the
13 collection of such tax by reason of the United States constitution and
14 of laws of the United States enacted pursuant thereto. The prepaid tax
15 on diesel motor fuel shall not apply to (i) the sale of [previously
16 untaxed] non-highway Diesel motor fuel to a person registered as a
17 distributor of Diesel motor fuel other than a sale to such person which
18 involves a delivery at a filling station or into a repository which is
19 equipped with a hose or other apparatus by which such fuel can be
20 dispensed into the fuel tank of a motor vehicle, [or] (ii) the sale to
21 or delivery at a filling station or other retail vendor of water-white
22 kerosene provided such filling station or other retail vendor only sells
23 such water-white kerosene exclusively for heating purposes in containers
24 of no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY UNTAXED
25 QUALIFIED BIODIESEL TO A PERSON REGISTERED UNDER ARTICLE TWELVE-A OF
26 THIS CHAPTER AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A
27 RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
28 DELIVERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED
29 WITH A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
30 DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE. "QUALIFIED BIODIESEL"
31 MEANS SUCH TERM AS DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO
32 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
33 S 7. This act shall take effect June 1, 2012; provided, however, that
34 the amendments to paragraph 2 of subdivision (a) of section 1102 of the
35 tax law made by section five of this act shall be subject to the expira-
36 tion and reversion of such paragraph pursuant to section 19 of part W1
37 of chapter 109 of the laws of 2006, as amended, when upon such date the
38 provisions of section six of this act shall take effect; provided,
39 further, that sections five and six of this act shall apply to sales
40 made and uses occurring on and after such effective date in accordance
41 with the applicable transitional provisions in sections 1106 and 1217 of
42 the tax law.
43 PART F
44 Section 1. Subparagraph (B) of paragraph 4 of subdivision (a) of
45 section 1134 of the tax law, as amended by chapter 2 of the laws of
46 1995, is amended to read as follows:
47 (B) Where a person files a certificate of registration for a certif-
48 icate of authority under this subdivision and in considering such appli-
49 cation the commissioner ascertains that (i) any tax imposed under this
50 chapter or any related statute, as defined in section eighteen hundred
51 of this chapter, has been finally determined to be due from such person
52 and has not been paid in full, (ii) [a] ANY tax [due under this article
53 or any law, ordinance or resolution enacted pursuant to the authority of
54 article twenty-nine] IMPOSED UNDER THIS CHAPTER OR ANY RELATED STATUTE,
A. 9059--C 34
1 AS DEFINED IN SECTION EIGHTEEN HUNDRED of this chapter, has been finally
2 determined to be due from an officer, director, partner or employee of
3 such person, and, where such person is a limited liability company, also
4 a member or manager of such person, in the officer's, director's, part-
5 ner's, member's, manager's or employee's capacity as a person required
6 to collect tax on behalf of such person or another person and has not
7 been paid, (iii) such person has been convicted of a crime provided for
8 in this chapter within one year from the date on which such certificate
9 of registration is filed, (iv) an officer, director, partner or employee
10 of such person, and, where such person is a limited liability company,
11 also a member or manager of such person, which officer, director, part-
12 ner, member, manager or employee is a person required to collect tax on
13 behalf of such person filing a certificate of registration has in the
14 officer's, director's, partner's, member's, manager's or employee's
15 capacity as a person required to collect tax on behalf of such person or
16 of another person been convicted of a crime provided for in this chapter
17 within one year from the date on which such certificate of registration
18 is filed, (v) a shareholder owning more than fifty percent of the number
19 of shares of stock of such person (where such person is a corporation)
20 entitling the holder thereof to vote for the election of directors or
21 trustees, who owned more than fifty percent of the number of such shares
22 of another person (where such other person is a corporation) at the time
23 any tax imposed under this chapter or any related statute as defined in
24 section eighteen hundred of this chapter was finally determined to be
25 due and where such tax has not been paid in full, or at the time such
26 other person was convicted of a crime provided for in this chapter with-
27 in one year from the date on which such certificate of registration is
28 filed, or (vi) a certificate of authority issued to such person has been
29 revoked or suspended pursuant to subparagraph (A) of this paragraph
30 within one year from the date on which such certificate of registration
31 is filed, the commissioner may refuse to issue a certificate of authori-
32 ty.
33 S 2. Subdivision (g) of section 1146 of the tax law, as added by chap-
34 ter 577 of the laws of 1997, is amended to read as follows:
35 (g) (1) Notwithstanding the provisions of subdivision (a) of this
36 section, if the commissioner determines that a person required to
37 collect tax is liable for any tax, penalty or interest under this arti-
38 cle or is liable for a penalty under subdivision (e) of section eleven
39 hundred forty-five of this article with respect to any failure, upon
40 request in writing of such person, the commissioner shall disclose in
41 writing to such person [(1)] (I) the name of any other person required
42 to collect tax or any other person liable for such penalty under such
43 subdivision (e) whom the commissioner has determined to be liable for
44 the same tax, penalty or interest or for such penalty with respect to
45 such failure, and [(2)] (II) whether the commissioner has attempted to
46 collect such tax, penalty or interest or such penalty from such other
47 person, the general nature of such collection activities, and the amount
48 collected.
49 (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, FOR
50 THE PURPOSES OF SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
51 SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART, IF THE COMMISSIONER
52 DETERMINES THAT ANY TAX IMPOSED UNDER THIS CHAPTER OR ANY RELATED STAT-
53 UTE, AS DEFINED IN SECTION EIGHTEEN HUNDRED OF THIS CHAPTER, HAS BEEN
54 FINALLY DETERMINED TO BE DUE FROM A PERSON REQUIRED TO COLLECT TAX AND
55 HAS NOT BEEN PAID, UPON WRITTEN REQUEST OF THE PERSON WHO FILED THE
56 CERTIFICATE OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY THAT WAS
A. 9059--C 35
1 REFUSED, THE COMMISSIONER MAY DISCLOSE TO SUCH PERSON THE NAME AND
2 AMOUNT OF TAX DUE OF THE PERSON OR PERSONS REQUIRED TO COLLECT TAX WHOSE
3 TAX LIABILITY OR LIABILITIES WERE GROUNDS FOR THE REFUSAL TO ISSUE THE
4 CERTIFICATE OF AUTHORITY.
5 S 3. This act shall take effect immediately.
6 PART G
7 Section 1. Paragraph 10 of subsection (g) of section 658 of the tax
8 law is REPEALED.
9 S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
10 istrative code of the city of New York is REPEALED.
11 S 3. Paragraph 5 of subsection (u) of section 685 of the tax law is
12 REPEALED.
13 S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
14 trative code of the city of New York is REPEALED.
15 S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending
16 the real property tax law, the general municipal law, the public offi-
17 cers law, the tax law, the abandoned property law, the state finance law
18 and the administrative code of the city of New York, relating to estab-
19 lishing standards for electronic real property tax administration,
20 allowing the department of taxation and finance to use electronic commu-
21 nication means to furnish tax notices and other documents, mandatory
22 electronic filing of tax documents, debit cards issued for tax refunds,
23 improving sales tax compliance and repealing certain provisions of the
24 tax law and the administrative code of the city of New York relating
25 thereto, is amended to read as follows:
26 S 23. This act shall take effect immediately; provided, however, that:
27 (a) the amendments to section 29 of the tax law made by section thir-
28 teen of this act shall apply to tax documents filed or required to be
29 filed on or after the sixtieth day after which this act shall have
30 become a law [and shall expire and be deemed repealed December 31,
31 2012], provided however that the amendments to paragraph 4 of subdivi-
32 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
33 of section 29 of the tax law made by section thirteen of this act with
34 regard to individual taxpayers shall take effect September 15, 2011 but
35 only if the commissioner of taxation and finance has reported in the
36 report required by section seventeen-b of this act that the percentage
37 of individual taxpayers electronically filing their 2010 income tax
38 returns is less than eighty-five percent; provided that the commissioner
39 of taxation and finance shall notify the legislative bill drafting
40 commission of the date of the issuance of such report in order that the
41 commission may maintain an accurate and timely effective data base of
42 the official text of the laws of the state of New York in furtherance of
43 effectuating the provisions of section 44 of the legislative law and
44 section 70-b of the public officers law;
45 (b) sections fourteen, fifteen, sixteen and seventeen of this act
46 shall take effect September 15, 2011 but only if the commissioner of
47 taxation and finance has reported in the report required by section
48 seventeen-b of this act that the percentage of individual taxpayers
49 electronically filing their 2010 income tax returns is less than eight-
50 y-five percent;
51 (c) sections fourteen-a and fifteen-a of this act shall take effect
52 September 15, 2011 and expire and be deemed repealed December 31, 2012
53 but shall take effect only if the commissioner of taxation and finance
54 has reported in the report required by section seventeen-b of this act
A. 9059--C 36
1 that the percentage of individual taxpayers electronically filing their
2 2010 income tax returns is eighty-five percent or greater; AND
3 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
4 act shall take effect January 1, 2013 but only if the commissioner of
5 taxation and finance has reported in the report required by section
6 seventeen-b of this act that the percentage of individual taxpayers
7 electronically filing their 2010 income tax returns is less than eight-
8 y-five percent[; and
9 (e) sections twenty-one and twenty-one-a of this act shall expire and
10 be deemed repealed December 31, 2012].
11 S 6. Paragraph 5 of subdivision (a), paragraph 2 of subdivision (b)
12 and subdivision (c) of section 29 of the tax law, paragraph 5 of subdi-
13 vision (a) and subdivision (c) as amended and paragraph 2 of subdivision
14 (b) as added by section 13 of part U of chapter 61 of the laws of 2011,
15 are amended to read as follows:
16 (5) "Tax document" means a return, report or any other document relat-
17 ing to a tax or other matter administered by the commissioner. SUCH TAX
18 DOCUMENT DOES NOT INCLUDE REPORTS OR ANY OTHER DOCUMENTS SUCH AS FORMS,
19 INFORMATION SCHEDULES, ATTACHMENTS, OR LISTS, IF SUCH REPORTS OR DOCU-
20 MENTS ARE NOT AVAILABLE TO FILE ELECTRONICALLY.
21 (2) If a tax return preparer prepared more than five original tax
22 documents during any calendar year beginning on or after January first,
23 two thousand eleven, and if in any succeeding calendar year that tax
24 return preparer prepares one or more authorized [returns] TAX DOCUMENTS
25 using tax software, then, for such succeeding calendar year and for each
26 subsequent calendar year thereafter, all authorized tax documents
27 prepared by that tax return preparer must be filed electronically, in
28 accordance with instructions prescribed by the commissioner. PROVIDED,
29 HOWEVER, TAX DOCUMENTS THAT ARE NOT AVAILABLE TO FILE ELECTRONICALLY BUT
30 PREPARED BY USING SOFTWARE SHALL NOT BE APPLIED FOR PURPOSES OF THE
31 ELECTRONIC FILING REQUIREMENT UNDER THIS SUBDIVISION.
32 (c) If a taxpayer does not utilize a tax return preparer to prepare an
33 authorized tax document, but instead prepares that document itself using
34 tax software, then all authorized tax documents prepared by the taxpayer
35 using tax software must be filed electronically, in accordance with
36 instructions prescribed by the commissioner. PROVIDED, HOWEVER, TAX
37 DOCUMENTS THAT ARE NOT AVAILABLE TO FILE ELECTRONICALLY BUT PREPARED
38 USING SOFTWARE SHALL NOT BE APPLIED FOR PURPOSES OF THE ELECTRONIC
39 FILING REQUIREMENT UNDER THIS SUBDIVISION.
40 S 7. This act shall take effect immediately.
41 PART H
42 Section 1. Paragraphs 2, 3 and 7 of subsection (g-1) of section 606 of
43 the tax law, paragraphs 2 and 7 as amended by chapter 378 of the laws of
44 2005, subparagraph (B) of paragraph 2 as amended by chapter 251 of the
45 laws of 2006, paragraph 3 as amended and paragraph 7 as renumbered by
46 chapter 128 of the laws of 2007, are amended to read as follows:
47 (2) Qualified solar energy system equipment expenditures. (A) The term
48 "qualified solar energy system equipment expenditures" means expendi-
49 tures for:
50 (I) the purchase of solar energy system equipment which is installed
51 in connection with residential property which is [(i)] (I) located in
52 this state and [(ii) which is] (II) used by the taxpayer as his or her
53 principal residence at the time the solar energy system equipment is
54 placed in service;
A. 9059--C 37
1 (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
2 MENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT OWNED BY A
3 PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH RESIDEN-
4 TIAL PROPERTY WHICH IS: (I) LOCATED IN THIS STATE; AND (II) USED BY THE
5 TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR ENERGY
6 SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
7 (III) THE PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
8 LEAST TEN YEARS WHERE THE POWER PURCHASED IS GENERATED BY SOLAR ENERGY
9 SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER AND IS
10 INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS: (I) LOCATED
11 IN THIS STATE; AND (II) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL
12 RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM IS PLACED IN SERVICE.
13 (B) Such qualified expenditures shall include expenditures for materi-
14 als, labor costs properly allocable to on-site preparation, assembly and
15 original installation, architectural and engineering services, and
16 designs and plans directly related to the construction or installation
17 of the solar energy system equipment.
18 (C) Such qualified expenditures shall not include interest or other
19 finance charges.
20 (D) SUCH QUALIFIED SOLAR ENERGY SYSTEM EQUIPMENT EXPENDITURES
21 DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH
22 SHALL INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE
23 YEAR UNDER SUCH AGREEMENT.
24 (E) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBDIVISION, A TAXPAYER MAY
25 CLAIM CREDIT FOR EXPENDITURES DESCRIBED IN CLAUSE (II) OR (III) OF
26 SUBPARAGRAPH (A) OF THIS PARAGRAPH FOR THREE CONSECUTIVE TAXABLE YEARS;
27 PROVIDED, HOWEVER, THAT THE AMOUNT CLAIMED IN ANY TAXABLE YEAR SHALL NOT
28 EXCEED THE AMOUNT OF SUCH EXPENDITURES IN THAT YEAR AND THE TOTAL AMOUNT
29 OF CREDITS CLAIMED BY A TAXPAYER FOR ALL TAXABLE YEARS SHALL BE THE
30 LESSER OF TWELVE AND ONE-HALF PERCENT OF THE TOTAL AMOUNT TO BE PAID
31 UNDER THE WRITTEN AGREEMENTS DESCRIBED IN SUCH CLAUSES, OR FIVE THOUSAND
32 DOLLARS; AND PROVIDED FURTHER THAT NO CREDIT SHALL BE ALLOWED FOR
33 EXPENDITURES DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF
34 THIS PARAGRAPH WHERE THE WRITTEN AGREEMENT DESCRIBED IN SUCH CLAUSES WAS
35 ENTERED INTO ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
36 (3) Solar energy system equipment. The term "solar energy system
37 equipment" shall mean an arrangement or combination of components
38 utilizing solar radiation, which, when installed in a residence, produc-
39 es energy designed to provide heating, cooling, hot water or electricity
40 for use in such residence. Such arrangement or components shall not
41 include equipment connected to solar energy system equipment that is a
42 component of part or parts of a non-solar energy system or which uses
43 any sort of recreational facility or equipment as a storage medium.
44 Solar energy system equipment that generates electricity for use in a
45 residence must conform to applicable requirements set forth in section
46 sixty-six-j of the public service law. Provided, however, where solar
47 energy system equipment is purchased and installed by a condominium
48 management association or a cooperative housing corporation, for
49 purposes of this subsection only, the term ["ten kilowatts"]
50 "TWENTY-FIVE KILOWATTS" in such section sixty-six-j shall be read as
51 "fifty kilowatts."
52 (7) When credit allowed. The credit provided for herein shall be
53 allowed with respect to the taxable year, commencing after nineteen
54 hundred ninety-seven, in which the solar energy system equipment is
55 placed in service, OR WHEN THE EXPENDITURES DESCRIBED IN CLAUSE (II) OR
A. 9059--C 38
1 (III) OF SUBPARAGRAPH (A) OF PARAGRAPH TWO OF THIS SUBSECTION ARE
2 INCURRED, AS APPLICABLE.
3 S 2. Subdivision (ee) of section 1115 of the tax law, as added by
4 chapter 306 of the laws of 2005, is amended to read as follows:
5 (ee) Receipts from the retail sale of [residential] solar energy
6 systems equipment and of the service of installing such systems shall be
7 exempt from tax under this article. For the purposes of this subdivi-
8 sion, "[residential] solar energy systems equipment" shall mean an
9 arrangement or combination of components [installed in a residence] that
10 utilizes solar radiation to produce energy designed to provide heating,
11 cooling, hot water and/or electricity IN A BUILDING OR A STRUCTURE.
12 Such arrangement or components shall not [include] EXCEED AN INSTALLED
13 CAPACITY RATING OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT THEREOF AND
14 SHALL NOT INCLUDE equipment that is part of a non-solar energy system or
15 [which uses any sort of recreational facility or equipment as a storage
16 medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
17 S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law,
18 as amended by section 3 of part GG of chapter 57 of the laws of 2010, is
19 amended to read as follows:
20 (1) Either, all of the taxes described in article twenty-eight of this
21 chapter, at the same uniform rate, as to which taxes all provisions of
22 the local laws, ordinances or resolutions imposing such taxes shall be
23 identical, except as to rate and except as otherwise provided, with the
24 corresponding provisions in such article twenty-eight, including the
25 definition and exemption provisions of such article, so far as the
26 provisions of such article twenty-eight can be made applicable to the
27 taxes imposed by such city or county and with such limitations and
28 special provisions as are set forth in this article. The taxes author-
29 ized under this subdivision may not be imposed by a city or county
30 unless the local law, ordinance or resolution imposes such taxes so as
31 to include all portions and all types of receipts, charges or rents,
32 subject to state tax under sections eleven hundred five and eleven
33 hundred ten of this chapter, except as otherwise provided. (i) Any local
34 law, ordinance or resolution enacted by any city of less than one
35 million or by any county or school district, imposing the taxes author-
36 ized by this subdivision, shall, notwithstanding any provision of law to
37 the contrary, exclude from the operation of such local taxes all sales
38 of tangible personal property for use or consumption directly and
39 predominantly in the production of tangible personal property, gas,
40 electricity, refrigeration or steam, for sale, by manufacturing, proc-
41 essing, generating, assembly, refining, mining or extracting; and all
42 sales of tangible personal property for use or consumption predominantly
43 either in the production of tangible personal property, for sale, by
44 farming or in a commercial horse boarding operation, or in both; and,
45 unless such city, county or school district elects otherwise, shall omit
46 the provision for credit or refund contained in clause six of subdivi-
47 sion (a) or subdivision (d) of section eleven hundred nineteen of this
48 chapter. (ii) Any local law, ordinance or resolution enacted by any
49 city, county or school district, imposing the taxes authorized by this
50 subdivision, shall omit the [residential] solar energy systems equipment
51 exemption provided for in subdivision (ee) and the clothing and footwear
52 exemption provided for in paragraph thirty of subdivision (a) of section
53 eleven hundred fifteen of this chapter, unless such city, county or
54 school district elects otherwise as to either such [residential] solar
55 energy systems equipment exemption or such clothing and footwear
56 exemption.
A. 9059--C 39
1 S 4. Paragraph 1 of subdivision (n) of section 1210 of the tax law,
2 as added by chapter 306 of the laws of 2005, is amended to read as
3 follows:
4 (1) Any city having a population of one million or more in which the
5 taxes imposed by section eleven hundred seven of this chapter are in
6 effect, acting through its local legislative body, is hereby authorized
7 and empowered to elect to provide the same exemptions from such taxes as
8 the [residential] solar energy systems equipment exemption from state
9 sales and compensating use taxes described in subdivision (ee) of
10 section eleven hundred fifteen of this chapter by enacting a resolution
11 in the form set forth in paragraph two of this subdivision; whereupon,
12 upon compliance with the provisions of subdivisions (d) and (e) of this
13 section, such enactment of such resolution shall be deemed to be an
14 amendment to such section eleven hundred seven and such section eleven
15 hundred seven shall be deemed to incorporate such exemptions as if they
16 had been duly enacted by the state legislature and approved by the
17 governor.
18 S 5. Subsection (g-1) of section 606 of the tax law is amended by
19 adding a new paragraph 9 to read as follows:
20 (9) CREDIT RECAPTURE. IF, AT ANY TIME DURING ITS LEASING, SUCH QUALI-
21 FIED SOLAR ENERGY SYSTEM EQUIPMENT CEASES TO BE QUALIFIED, A RECAPTURE
22 AMOUNT MUST BE ADDED BACK IN THE YEAR IN WHICH SUCH CESSATION OCCURS.
23 (A) CESSATION OF QUALIFICATION. QUALIFIED SOLAR ENERGY SYSTEM EQUIP-
24 MENT CEASES TO BE QUALIFIED IF:
25 (I) THE SOLAR ENERGY SYSTEM EQUIPMENT NO LONGER QUALIFIES AS DESCRIBED
26 IN SUBPARAGRAPH (II) OR (III) OF PARAGRAPH TWO OF THIS SUBSECTION, OR
27 (II) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
28 DISPOSES OR CEASES TO USE THE SOLAR ENERGY SYSTEM EQUIPMENT.
29 (B) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
30 ALLOWABLE UNDER THIS SUBSECTION MULTIPLIED BY A FRACTION, THE NUMERATOR
31 OF WHICH IS THE TOTAL LEASE PERIOD FOR THE EQUIPMENT MINUS THE NUMBER OF
32 LEASE YEARS PRIOR TO, BUT NOT INCLUDING THE RECAPTURE YEAR, AND THE
33 DENOMINATOR OF WHICH IS THE TOTAL LEASE PERIOD.
34 S 6. This act shall take effect immediately, provided that:
35 (1) section one of this act shall apply to leases of solar energy
36 system equipment and purchases of power under written agreements entered
37 into on or after such effective date; and
38 (2) sections two, three and four of this act shall apply to sales made
39 or uses occurring on or after September 1, 2012 in accordance with the
40 applicable transitional provisions of section 1106 and 1217 of the tax
41 law.
42 PART I
43 Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax
44 law, as amended by chapter 440 of the laws of 2006, is amended to read
45 as follows:
46 (1) A taxpayer which is a qualified commercial production company, or
47 which is a sole proprietor of a qualified commercial production company,
48 and which is subject to tax under article nine-A or twenty-two of this
49 chapter, shall be allowed a credit against such tax, pursuant to the
50 provisions referenced in subdivision [(d)] (C) of this section, to be
51 computed as provided in this section. Provided, however, to be eligible
52 for such credit, at least seventy-five percent of the production costs
53 (excluding post production costs) paid or incurred directly and predomi-
54 nantly in the actual filming or recording of the qualified commercial
A. 9059--C 40
1 must be costs incurred in New York state. THE TAX CREDIT ALLOWED PURSU-
2 ANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANU-
3 ARY FIRST, TWO THOUSAND SEVENTEEN.
4 S 2. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
5 added by section 3 of part V of chapter 62 of the laws of 2006, is
6 amended to read as follows:
7 (a) Allowance of credit. A taxpayer that is eligible pursuant to
8 provisions of section twenty-eight of this chapter shall be allowed a
9 credit to be computed as provided in such section against the tax
10 imposed by this article. THE TAX CREDIT ALLOWED PURSUANT TO THIS
11 SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
12 THOUSAND SEVENTEEN.
13 S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
14 added by section 5 of part V of chapter 62 of the laws of 2006, is
15 amended to read as follows:
16 (1) Allowance of credit. A taxpayer that is eligible pursuant to the
17 provisions of section twenty-eight of this chapter shall be allowed a
18 credit to be computed as provided in such section against the tax
19 imposed by this article. THE TAX CREDIT ALLOWED PURSUANT TO THIS
20 SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
21 THOUSAND SEVENTEEN.
22 S 4. Section 10 of part V of chapter 62 of the laws of 2006, relating
23 to the empire state commercial production tax credit, is amended to read
24 as follows:
25 S 10. This act shall take effect immediately [and shall apply to taxa-
26 ble years beginning on and after January 1, 2007 and shall expire and be
27 deemed repealed on December 31, 2011]; provided, however that the IMB
28 credit for energy taxes under subsection (t-1) and the state film
29 production credit under subsection (gg) of section 606 of the tax law
30 contained in section four of this act shall expire on the same date as
31 provided in subdivision (a) of section 49 of part Y of chapter 63 of the
32 laws of 2000, as amended and section 9 of part P of chapter 60 of the
33 laws of 2004, as amended, respectively.
34 S 5. This act shall take effect immediately and shall be deemed to
35 have been in full force and effect on and after December 31, 2011;
36 provided however, notwithstanding the provisions of article 5 of the
37 general construction law, the provisions of part V of chapter 62 of the
38 laws of 2006, as amended, are hereby revived and shall continue in full
39 force and effect as such provisions existed on December 31, 2011.
40 PART J
41 Section 1. Subdivision 4 of section 22 of the public housing law, as
42 amended by section 1 of part F of chapter 61 of the laws of 2011, is
43 amended to read as follows:
44 4. Statewide limitation. The aggregate dollar amount of credit which
45 the commissioner may allocate to eligible low-income buildings under
46 this article shall be [thirty-two] FORTY million dollars. The limitation
47 provided by this subdivision applies only to allocation of the aggregate
48 dollar amount of credit by the commissioner, and does not apply to
49 allowance to a taxpayer of the credit with respect to an eligible low-
50 income building for each year of the credit period.
51 S 2. Subdivision 4 of section 22 of the public housing law, as amended
52 by section one of this act, is amended to read as follows:
53 4. Statewide limitation. The aggregate dollar amount of credit which
54 the commissioner may allocate to eligible low-income buildings under
A. 9059--C 41
1 this article shall be [forty] FORTY-EIGHT million dollars. The limita-
2 tion provided by this subdivision applies only to allocation of the
3 aggregate dollar amount of credit by the commissioner, and does not
4 apply to allowance to a taxpayer of the credit with respect to an eligi-
5 ble low-income building for each year of the credit period.
6 S 3. This act shall take effect immediately; provided, however,
7 section two of this act shall take effect April 1, 2013.
8 PART K
9 Section 1. Subdivision (a) of section 28 of the tax law, as amended by
10 section 1 of part A of chapter 57 of the laws of 2010, is amended to
11 read as follows:
12 (a) General. A taxpayer subject to tax under article nine, nine-A or
13 twenty-two of this chapter shall be allowed a credit against such tax
14 pursuant to the provisions referenced in subdivision (d) of this
15 section. The credit (or pro rata share of earned credit in the case of a
16 partnership) for each gallon of biofuel produced at a biofuel plant on
17 or after January first, two thousand six shall equal fifteen cents per
18 gallon after the production of the first forty thousand gallons per year
19 presented to market. The credit under this section shall be capped at
20 two and one-half million dollars per taxpayer per taxable year for up to
21 no more than four consecutive taxable years per biofuel plant. If the
22 taxpayer is a partner in a partnership or shareholder of a New York S
23 corporation, then the cap imposed by the preceding sentence shall be
24 applied at the entity level, so that the aggregate credit allowed to all
25 the partners or shareholders of each such entity in the taxable year
26 does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
27 PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
28 JANUARY FIRST, TWO THOUSAND TWENTY.
29 S 2. Section 187-c of the tax law, as added by section 2 of part X of
30 chapter 62 of the laws of 2006, is amended to read as follows:
31 S 187-c. Biofuel production credit. A taxpayer shall be allowed a
32 credit to be computed as provided in section twenty-eight of this chap-
33 ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
34 SIX, against the tax imposed by this article. Provided, however, that
35 the amount of such credit allowed against the tax imposed by section one
36 hundred eighty-four of this article shall be the excess of the amount of
37 such credit over the amount of any credit allowed by this section
38 against the tax imposed by section one hundred eighty-three of this
39 article. In no event shall the credit under this section be allowed in
40 an amount which will reduce the tax payable to less than the applicable
41 minimum tax fixed by section one hundred eighty-three or one hundred
42 eighty-five of this article. If, however, the amount of the credit
43 allowed under this section for any taxable year reduces the tax to such
44 amount, the excess shall be treated as an overpayment of tax to be cred-
45 ited or refunded in accordance with the provisions of section six
46 hundred eighty-six of this chapter. Provided, however, the provisions of
47 subsection (c) of section one thousand eighty-eight of this chapter
48 notwithstanding, no interest shall be paid thereon. THE TAX CREDIT
49 ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
50 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
51 S 3. Subdivision 38 of section 210 of the tax law, as added by section
52 3 of part X of chapter 62 of the laws of 2006, is amended to read as
53 follows:
A. 9059--C 42
1 38. Biofuel production credit. A taxpayer shall be allowed a credit,
2 to be computed as provided in section twenty-eight of this chapter, AS
3 ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
4 against the tax imposed by this article. The credit allowed under this
5 subdivision for any taxable year shall not reduce the tax due for such
6 year to less than the higher of the amounts prescribed in paragraphs (c)
7 and (d) of subdivision one of this section. However, if the amount of
8 credit allowed under this subdivision for any taxable year reduces the
9 tax to such amount, any amount of credit thus not deductible in such
10 taxable year shall be treated as an overpayment of tax to be credited or
11 refunded in accordance with the provisions of section one thousand
12 eighty-six of this chapter. Provided, however, the provisions of
13 subsection (c) of section one thousand eighty-eight of this chapter
14 notwithstanding, no interest shall be paid thereon. THE TAX CREDIT
15 ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
16 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
17 S 4. Subsection (jj) of section 606 of the tax law, as added by
18 section 5 of part X of chapter 62 of the laws of 2006, is amended to
19 read as follows:
20 (jj) Biofuel production credit. A taxpayer shall be allowed a credit
21 to be computed as provided in section twenty-eight of this chapter, AS
22 ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
23 against the tax imposed by this article. If the amount of the credit
24 allowed under this subsection for any taxable year shall exceed the
25 taxpayer's tax for such year, the excess shall be treated as an overpay-
26 ment of tax to be credited or refunded in accordance with the provisions
27 of section six hundred eighty-six of this article, provided, however,
28 that no interest shall be paid thereon. THE TAX CREDIT ALLOWED PURSUANT
29 TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY
30 FIRST, TWO THOUSAND TWENTY.
31 S 5. Section 6 of part X of chapter 62 of the laws of 2006, amending
32 the tax law relating to providing tax credits for biofuel production
33 plants, is amended to read as follows:
34 S 6. This act shall take effect immediately [and shall apply to taxa-
35 ble years commencing on and after January 1, 2006 and before January 1,
36 2013]; provided, however that the IMB credit for energy taxes under
37 subsection (t-1) and the state film production credit under subsection
38 (gg) of section 606 of the tax law contained in section four of this act
39 shall expire on the same date as provided in subdivision (a) of section
40 49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
41 of part P of chapter 60 of the laws of 2004, as amended, respectively.
42 S 6. This act shall take effect immediately.
43 PART L
44 Section 1. Section 2 of part I of chapter 58 of the laws of 2006,
45 relating to providing an enhanced earned income tax credit, is amended
46 to read as follows:
47 S 2. This act shall take effect immediately and shall apply to taxable
48 years beginning on or after January 1, 2006 [and before January 1,
49 2013].
50 S 2. This act shall take effect immediately.
51 PART M
A. 9059--C 43
1 Section 1. Section 5232 of the civil practice law and rules is amended
2 by adding a new subdivision (i) to read as follows:
3 (I) NO BANKING INSTITUTION SHALL SETOFF AND APPLY A LEVY PROCESSING
4 FEE AGAINST THE PROCEEDS OF A LEVY FOR TAXES IMPOSED BY OR PURSUANT TO
5 THE AUTHORITY OF THE TAX LAW OR FOR CHILD SUPPORT REGARDLESS OF ANY
6 TERMS OF AGREEMENT, OR SCHEDULE OF FEES, OR OTHER CONTRACT BETWEEN THE
7 DEBTOR AND THE BANKING INSTITUTION.
8 S 2. Subdivision (d) of section 151 of the debtor and creditor law, as
9 amended by chapter 553 of the laws of 1990, is amended to read as
10 follows:
11 (d) the issuance of any execution against any of the property of a
12 creditor, EXCEPT AS PROVIDED FOR IN SUBDIVISION (I) OF SECTION FIFTY-TWO
13 HUNDRED THIRTY-TWO OF THE CIVIL PRACTICE LAW AND RULES;
14 S 3. This act shall take effect on the ninetieth day after it shall
15 have become a law.
16 PART N
17 Section 1. Subsection (a) of section 801 of the tax law, as amended by
18 section 2 of part B of chapter 56 of the laws of 2011, is amended to
19 read as follows:
20 (a) For the sole purpose of providing an additional stable and reli-
21 able dedicated funding source for the metropolitan transportation
22 authority and its subsidiaries and affiliates to preserve, operate and
23 improve essential transit and transportation services in the metropol-
24 itan commuter transportation district, a tax is hereby imposed on
25 EMPLOYERS AND INDIVIDUALS AS FOLLOWS: (1) FOR employers who engage in
26 business within the MCTD [(1)], THE TAX IS IMPOSED at a rate of (A)
27 eleven hundredths (.11) percent OF THE PAYROLL EXPENSE for employers
28 with payroll expense no greater than three hundred seventy-five thousand
29 dollars in any calendar quarter, (B) twenty-three hundredths (.23)
30 percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
31 er than three hundred seventy-five thousand dollars and no greater than
32 four hundred thirty-seven thousand five hundred dollars in any calendar
33 quarter, and (C) thirty-four hundredths (.34) percent OF THE PAYROLL
34 EXPENSE for employers with payroll expense in excess of four hundred
35 thirty-seven thousand five hundred dollars in any calendar quarter[,
36 and]. IF THE EMPLOYER IS A PROFESSIONAL EMPLOYER ORGANIZATION, AS
37 DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
38 TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE ATTRIBUTABLE
39 TO EACH CLIENT WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
40 WITH SUCH ORGANIZATION AND THE PAYROLL EXPENSE ATTRIBUTABLE TO SUCH
41 ORGANIZATION ITSELF, MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
42 BY THE APPLICABLE RATE SET FORTH IN THIS PARAGRAPH AND ADDING THOSE
43 PRODUCTS TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
44 thirty-four hundredths (.34) percent of the net earnings from self-em-
45 ployment of individuals that are attributable to the MCTD if such earn-
46 ings attributable to the MCTD exceed fifty thousand dollars for the tax
47 year.
48 S 2. Section 4 of part B of chapter 56 of the laws of 2011 amending
49 the tax law relating to the tax rates and exclusions under the metropol-
50 itan commuter transportation mobility tax is amended to read as follows:
51 S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
52 YEARS BEGINNING ON OR AFTER JANUARY 1, 2012; provided however, that
53 section one of this act and the amendments in section two of this act
A. 9059--C 44
1 that concern employers shall take effect for the quarter beginning on
2 April 1, 2012.
3 S 3. This act shall take effect immediately; provided however that the
4 amendment in section one of this act concerning professional employer
5 organizations shall take effect for the quarter beginning on April 1,
6 2012.
7 PART O
8 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
9 racing, pari-mutuel wagering and breeding law, as amended by section 1
10 of part S of chapter 61 of the laws of 2011, is amended to read as
11 follows:
12 (a) Any racing association or corporation or regional off-track
13 betting corporation, authorized to conduct pari-mutuel wagering under
14 this chapter, desiring to display the simulcast of horse races on which
15 pari-mutuel betting shall be permitted in the manner and subject to the
16 conditions provided for in this article may apply to the board for a
17 license so to do. Applications for licenses shall be in such form as may
18 be prescribed by the board and shall contain such information or other
19 material or evidence as the board may require. No license shall be
20 issued by the board authorizing the simulcast transmission of thorough-
21 bred races from a track located in Suffolk county. The fee for such
22 licenses shall be five hundred dollars per simulcast facility per year
23 payable by the licensee to the board for deposit into the general fund.
24 Except as provided herein, the board shall not approve any application
25 to conduct simulcasting into individual or group residences, homes or
26 other areas for the purposes of or in connection with pari-mutuel wager-
27 ing. The board may approve simulcasting into residences, homes or other
28 areas to be conducted jointly by one or more regional off-track betting
29 corporations and one or more of the following: a franchised corporation,
30 thoroughbred racing corporation or a harness racing corporation or asso-
31 ciation; provided (i) the simulcasting consists only of those races on
32 which pari-mutuel betting is authorized by this chapter at one or more
33 simulcast facilities for each of the contracting off-track betting
34 corporations which shall include wagers made in accordance with section
35 one thousand fifteen, one thousand sixteen and one thousand seventeen of
36 this article; provided further that the contract provisions or other
37 simulcast arrangements for such simulcast facility shall be no less
38 favorable than those in effect on January first, two thousand five; (ii)
39 that each off-track betting corporation having within its geographic
40 boundaries such residences, homes or other areas technically capable of
41 receiving the simulcast signal shall be a contracting party; (iii) the
42 distribution of revenues shall be subject to contractual agreement of
43 the parties except that statutory payments to non-contracting parties,
44 if any, may not be reduced; provided, however, that nothing herein to
45 the contrary shall prevent a track from televising its races on an
46 irregular basis primarily for promotional or marketing purposes as found
47 by the board. For purposes of this paragraph, the provisions of section
48 one thousand thirteen of this article shall not apply. Any agreement
49 authorizing an in-home simulcasting experiment commencing prior to May
50 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
51 extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,
52 however, that any party to such agreement may elect to terminate such
53 agreement upon conveying written notice to all other parties of such
54 agreement at least forty-five days prior to the effective date of the
A. 9059--C 45
1 termination, via registered mail. Any party to an agreement receiving
2 such notice of an intent to terminate, may request the board to mediate
3 between the parties new terms and conditions in a replacement agreement
4 between the parties as will permit continuation of an in-home experiment
5 until June thirtieth, two thousand [twelve] THIRTEEN; and (iv) no
6 in-home simulcasting in the thoroughbred special betting district shall
7 occur without the approval of the regional thoroughbred track.
8 S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
9 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
10 section 2 of part S of chapter 61 of the laws of 2011, is amended to
11 read as follows:
12 (iii) Of the sums retained by a receiving track located in Westchester
13 county on races received from a franchised corporation, for the period
14 commencing January first, two thousand eight and continuing through June
15 thirtieth, two thousand [twelve] THIRTEEN, the amount used exclusively
16 for purses to be awarded at races conducted by such receiving track
17 shall be computed as follows: of the sums so retained, two and one-half
18 percent of the total pools. Such amount shall be increased or decreased
19 in the amount of fifty percent of the difference in total commissions
20 determined by comparing the total commissions available after July twen-
21 ty-first, nineteen hundred ninety-five to the total commissions that
22 would have been available to such track prior to July twenty-first,
23 nineteen hundred ninety-five.
24 S 3. The opening paragraph of subdivision 1 of section 1014 of the
25 racing, pari-mutuel wagering and breeding law, as amended by section 3
26 of part S of chapter 61 of the laws of 2011, is amended to read as
27 follows:
28 The provisions of this section shall govern the simulcasting of races
29 conducted at thoroughbred tracks located in another state or country on
30 any day during which a franchised corporation is conducting a race meet-
31 ing in Saratoga county at Saratoga thoroughbred racetrack until June
32 thirtieth, two thousand [twelve] THIRTEEN and on any day regardless of
33 whether or not a franchised corporation is conducting a race meeting in
34 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
35 two thousand [twelve] THIRTEEN. On any day on which a franchised corpo-
36 ration has not scheduled a racing program but a thoroughbred racing
37 corporation located within the state is conducting racing, every off-
38 track betting corporation branch office and every simulcasting facility
39 licensed in accordance with section one thousand seven (that have
40 entered into a written agreement with such facility's representative
41 horsemen's organization, as approved by the board), one thousand eight,
42 or one thousand nine of this article shall be authorized to accept
43 wagers and display the live simulcast signal from thoroughbred tracks
44 located in another state or foreign country subject to the following
45 provisions:
46 S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
47 and breeding law, as amended by section 4 of part S of chapter 61 of the
48 laws of 2011, is amended to read as follows:
49 1. The provisions of this section shall govern the simulcasting of
50 races conducted at harness tracks located in another state or country
51 during the period July first, nineteen hundred ninety-four through June
52 thirtieth, two thousand [twelve] THIRTEEN. This section shall supersede
53 all inconsistent provisions of this chapter.
54 S 5. The opening paragraph of subdivision 1 of section 1016 of the
55 racing, pari-mutuel wagering and breeding law, as amended by section 5
A. 9059--C 46
1 of part S of chapter 61 of the laws of 2011, is amended to read as
2 follows:
3 The provisions of this section shall govern the simulcasting of races
4 conducted at thoroughbred tracks located in another state or country on
5 any day during which a franchised corporation is not conducting a race
6 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
7 thirtieth, two thousand [twelve] THIRTEEN. Every off-track betting
8 corporation branch office and every simulcasting facility licensed in
9 accordance with section one thousand seven that have entered into a
10 written agreement with such facility's representative horsemen's organ-
11 ization as approved by the board, one thousand eight or one thousand
12 nine of this article shall be authorized to accept wagers and display
13 the live full-card simulcast signal of thoroughbred tracks (which may
14 include quarter horse or mixed meetings provided that all such wagering
15 on such races shall be construed to be thoroughbred races) located in
16 another state or foreign country, subject to the following provisions;
17 provided, however, no such written agreement shall be required of a
18 franchised corporation licensed in accordance with section one thousand
19 seven of this article:
20 S 6. The opening paragraph of section 1018 of the racing, pari-mutuel
21 wagering and breeding law, as amended by section 6 of part S of chapter
22 61 of the laws of 2011, is amended to read as follows:
23 Notwithstanding any other provision of this chapter, for the period
24 July twenty-fifth, two thousand one through September eighth, two thou-
25 sand [eleven] TWELVE, when a franchised corporation is conducting a race
26 meeting within the state at Saratoga Race Course, every off-track
27 betting corporation branch office and every simulcasting facility
28 licensed in accordance with section one thousand seven (that has entered
29 into a written agreement with such facility's representative horsemen's
30 organization as approved by the board), one thousand eight or one thou-
31 sand nine of this article shall be authorized to accept wagers and
32 display the live simulcast signal from thoroughbred tracks located in
33 another state, provided that such facility shall accept wagers on races
34 run at all in-state thoroughbred tracks which are conducting racing
35 programs subject to the following provisions; provided, however, no such
36 written agreement shall be required of a franchised corporation licensed
37 in accordance with section one thousand seven of this article.
38 S 7. Section 32 of chapter 281 of the laws of 1994, amending the
39 racing, pari-mutuel wagering and breeding law and other laws relating to
40 simulcasting, as amended by section 7 of part S of chapter 61 of the
41 laws of 2011, is amended to read as follows:
42 S 32. This act shall take effect immediately and the pari-mutuel tax
43 reductions in section six of this act shall expire and be deemed
44 repealed on July 1, [2012] 2013; provided, however, that nothing
45 contained herein shall be deemed to affect the application, qualifica-
46 tion, expiration, or repeal of any provision of law amended by any
47 section of this act, and such provisions shall be applied or qualified
48 or shall expire or be deemed repealed in the same manner, to the same
49 extent and on the same date as the case may be as otherwise provided by
50 law; provided further, however, that sections twenty-three and twenty-
51 five of this act shall remain in full force and effect only until May 1,
52 1997 and at such time shall be deemed to be repealed.
53 S 8. Section 54 of chapter 346 of the laws of 1990, amending the
54 racing, pari-mutuel wagering and breeding law and other laws relating to
55 simulcasting and the imposition of certain taxes, as amended by section
A. 9059--C 47
1 8 of part S of chapter 61 of the laws of 2011, is amended to read as
2 follows:
3 S 54. This act shall take effect immediately; provided, however,
4 sections three through twelve of this act shall take effect on January
5 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
6 ing law, as added by section thirty-eight of this act, shall expire and
7 be deemed repealed on July 1, [2012] 2013; and section eighteen of this
8 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
9 two of this act shall take effect as of the same date as chapter 772 of
10 the laws of 1989 took effect.
11 S 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
12 pari-mutuel wagering and breeding law, as amended by section 9 of part S
13 of chapter 61 of the laws of 2011, is amended to read as follows:
14 (a) The franchised corporation authorized under this chapter to
15 conduct pari-mutuel betting at a race meeting or races run thereat shall
16 distribute all sums deposited in any pari-mutuel pool to the holders of
17 winning tickets therein, provided such tickets be presented for payment
18 before April first of the year following the year of their purchase,
19 less an amount which shall be established and retained by such fran-
20 chised corporation of between twelve to seventeen per centum of the
21 total deposits in pools resulting from on-track regular bets, and four-
22 teen to twenty-one per centum of the total deposits in pools resulting
23 from on-track multiple bets and fifteen to twenty-five per centum of the
24 total deposits in pools resulting from on-track exotic bets and fifteen
25 to thirty-six per centum of the total deposits in pools resulting from
26 on-track super exotic bets, plus the breaks. The retention rate to be
27 established is subject to the prior approval of the racing and wagering
28 board. Such rate may not be changed more than once per calendar quarter
29 to be effective on the first day of the calendar quarter. "Exotic bets"
30 and "multiple bets" shall have the meanings set forth in section five
31 hundred nineteen of this chapter. "Super exotic bets" shall have the
32 meaning set forth in section three hundred one of this chapter. For
33 purposes of this section, a "pick six bet" shall mean a single bet or
34 wager on the outcomes of six races. The breaks are hereby defined as the
35 odd cents over any multiple of five for payoffs greater than one dollar
36 five cents but less than five dollars, over any multiple of ten for
37 payoffs greater than five dollars but less than twenty-five dollars,
38 over any multiple of twenty-five for payoffs greater than twenty-five
39 dollars but less than two hundred fifty dollars, or over any multiple of
40 fifty for payoffs over two hundred fifty dollars. Out of the amount so
41 retained there shall be paid by such franchised corporation to the
42 commissioner of taxation and finance, as a reasonable tax by the state
43 for the privilege of conducting pari-mutuel betting on the races run at
44 the race meetings held by such franchised corporation, the following
45 percentages of the total pool for regular and multiple bets five per
46 centum of regular bets and four per centum of multiple bets plus twenty
47 per centum of the breaks; for exotic wagers seven and one-half per
48 centum plus twenty per centum of the breaks, and for super exotic bets
49 seven and one-half per centum plus fifty per centum of the breaks. For
50 the period June first, nineteen hundred ninety-five through September
51 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
52 three per centum and such tax on multiple wagers shall be two and one-
53 half per centum, plus twenty per centum of the breaks. For the period
54 September tenth, nineteen hundred ninety-nine through March thirty-
55 first, two thousand one, such tax on all wagers shall be two and six-
56 tenths per centum and for the period April first, two thousand one
A. 9059--C 48
1 through December thirty-first, two thousand [twelve] THIRTEEN, such tax
2 on all wagers shall be one and six-tenths per centum, plus, in each such
3 period, twenty per centum of the breaks. Payment to the New York state
4 thoroughbred breeding and development fund by such franchised corpo-
5 ration shall be one-half of one per centum of total daily on-track pari-
6 mutuel pools resulting from regular, multiple and exotic bets and three
7 per centum of super exotic bets provided, however, that for the period
8 September tenth, nineteen hundred ninety-nine through March thirty-
9 first, two thousand one, such payment shall be six-tenths of one per
10 centum of regular, multiple and exotic pools and for the period April
11 first, two thousand one through December thirty-first, two thousand
12 [twelve] THIRTEEN, such payment shall be seven-tenths of one per centum
13 of such pools.
14 S 10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
15 ing and breeding law, as amended by section 10 of part S of chapter 61
16 of the laws of 2011, is amended to read as follows:
17 5. The provisions of this section shall expire and be of no further
18 force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
19 S 11. This act shall take effect immediately.
20 PART P
21 Intentionally omitted
22 PART Q
23 Section 1. Subdivision (e) of section 1105 of the tax law, as amended
24 by section 4 of part AA of chapter 57 of the laws of 2010, is amended to
25 read as follows:
26 (e) (1) The rent for every occupancy of a room or rooms in a hotel in
27 this state, except that the tax shall not be imposed upon (i) a perma-
28 nent resident, or (ii) where the rent is not more than at the rate of
29 two dollars per day.
30 (2) [When] EXCEPT AS PROVIDED IN SUBDIVISION (R) OF SECTION ELEVEN
31 HUNDRED ELEVEN OF THIS PART, WHEN occupancy is provided, for a single
32 consideration, with property, services, amusement charges, or any other
33 items, the separate sale of which is not subject to tax under this arti-
34 cle, the entire consideration shall be treated as rent subject to tax
35 under paragraph one of this subdivision; provided, however, that where
36 the amount of the rent for occupancy is stated separately from the price
37 of such property, services, amusement charges, or other items, on any
38 sales slip, invoice, receipt, or other statement given the occupant, and
39 such rent is reasonable in relation to the value of such property,
40 services, amusement charges or other items, only such separately stated
41 rent will be subject to tax under paragraph one of this subdivision.
42 S 2. Section 1111 of the tax law is amended by adding a new subdivi-
43 sion (r) to read as follows:
44 (R) (1) IN REGARD TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY
45 ROOM REMARKETERS, WHEN OCCUPANCY IS PROVIDED FOR A SINGLE CONSIDERATION
46 WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS, WHETHER
47 OR NOT SUCH OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDER-
48 ATION FOR SUCH TRANSACTION SHALL BE COMPUTED AS FOLLOWS: EITHER THE
49 TOTAL CONSIDERATION RECEIVED BY THE ROOM REMARKETER MULTIPLIED BY A
50 FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDERATION PAYABLE FOR
51 THE OCCUPANCY BY THE ROOM REMARKETER AND THE DENOMINATOR OF WHICH SHALL
52 BE SUCH CONSIDERATION PAYABLE FOR THE OCCUPANCY PLUS THE CONSIDERATION
A. 9059--C 49
1 PAYABLE BY THE REMARKETER FOR THE OTHER ITEMS BEING SOLD, OR BY ANY
2 OTHER METHOD AS MAY BE AUTHORIZED BY THE COMMISSIONER. IF THE ROOM
3 REMARKETER FAILS TO SEPARATELY STATE THE TAX ON THE RENT SO COMPUTED ON
4 A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN TO THE OCCUPANT
5 IN THE MANNER PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION OR FAILS
6 TO MAINTAIN RECORDS OF THE PRICES OF ALL COMPONENTS OF A TRANSACTION
7 COVERED BY THIS PARAGRAPH, THE ENTIRE CONSIDERATION SHALL BE TREATED AS
8 RENT SUBJECT TO TAX UNDER PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION
9 ELEVEN HUNDRED FIVE OF THIS PART. NOTHING HEREIN SHALL BE CONSTRUED TO
10 SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR PROPERTY OR AMUSEMENT
11 CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR EXEMPT FROM TAX UNDER
12 THIS ARTICLE OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
13 CHAPTER. A ROOM REMARKETER'S RECORDS OF THE CONSIDERATION PAYABLE FOR
14 ALL COMPONENTS OF A TRANSACTION COVERED BY THIS PARAGRAPH ARE RECORDS
15 REQUIRED TO BE MAINTAINED FOR PURPOSES OF SUBDIVISION (A) OF SECTION
16 ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
17 (2) IN REGARD TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY ROOM
18 REMARKETERS, INCLUDING A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS
19 SUBDIVISION, THE REQUIREMENTS OF THE SECOND SENTENCE OF PARAGRAPH ONE OF
20 SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE
21 SHALL BE DEEMED SATISFIED IF THE REMARKETER GIVES THE CUSTOMER A SALES
22 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE ("INVOICE")
23 PRIOR TO THE CUSTOMER'S COMPLETION OF HIS OR HER OCCUPANCY, ON WHICH THE
24 AMOUNT OF TAX DUE UNDER THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF
25 ARTICLE TWENTY-NINE OF THIS CHAPTER IS STATED. THE ROOM REMARKETER MUST
26 KEEP EITHER A COPY OF THE INVOICE AS REQUIRED BY SUBDIVISION (A) OF
27 SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE, OR ELECTRONIC
28 RECORDS THAT ACCURATELY REFLECT THE INFORMATION THAT IS ON THE INVOICE
29 PROVIDED TO THE CUSTOMER.
30 (3) IN REGARD TO THE REPORTING AND THE PAYMENT TO THE COMMISSIONER BY
31 ROOM REMARKETERS OF SALES TAX DUE ON OCCUPANCIES, SUBDIVISION (A) OF
32 SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS ARTICLE SHALL BE READ TO
33 REQUIRE A ROOM REMARKETER TO REPORT SUCH SALES TAX DUE, INCLUDING IN
34 REGARD TO A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION,
35 ON THE RETURN DUE FOR THE FILING PERIOD IN WHICH THE OCCUPANCY ENDS AND,
36 AT THE TIME OF FILING SUCH RETURN, TO PAY TO THE COMMISSIONER THE TOTAL
37 AMOUNT DESCRIBED BY SUCH SUBDIVISION (A).
38 S 3. Subdivision (e) of section 1119 of the tax law, as added by
39 section 5 of part AA of chapter 57 of the laws of 2010, is amended to
40 read as follows:
41 (e) Subject to conditions and limitations provided in this subdivi-
42 sion, a room remarketer shall be allowed a refund or credit against the
43 amount of tax collected and required to be remitted under section eleven
44 hundred thirty-seven of this article in the amount of the tax it paid to
45 an operator of a hotel under section eleven hundred four of this arti-
46 cle, where applicable, and subdivision (e) of section eleven hundred
47 five of this article. Provided, however, that, in order to qualify for a
48 refund or credit under this subdivision for any sales tax quarterly
49 period, the room remarketer must, for that quarter, (1) be registered
50 for sales tax purposes under section eleven hundred thirty-four of this
51 article; (2) collect the taxes imposed by section eleven hundred four of
52 this article, where applicable, and subdivision (e) of section eleven
53 hundred five of this article; and (3) furnish the certificate of author-
54 ity number of the operator to whom the applicant paid the tax in its
55 application for refund or credit if required on that form or upon
56 request. PROVIDED THAT IF THE ROOM REMARKETER REQUESTS THE OPERATOR'S
A. 9059--C 50
1 CERTIFICATE OF AUTHORITY NUMBER AND IS NOT PROVIDED WITH THAT NUMBER,
2 THE ROOM REMARKETER MAY SATISFY THIS REQUIREMENT BY PROVIDING THE OPERA-
3 TOR'S NAME, BUSINESS ADDRESS, TELEPHONE NUMBER, AND THE ADDRESS OF THE
4 HOTEL WHERE THE OCCUPANCY TOOK PLACE. An application for refund or cred-
5 it under this subdivision must be filed with the commissioner within the
6 time provided by subdivision (a) of section eleven hundred thirty-nine
7 of this article. The application must be in the form prescribed by the
8 commissioner. Where an application for credit has been filed, the appli-
9 cant may immediately take the credit on the return that is due coinci-
10 dent with or immediately subsequent to the time that the applicant files
11 the application for credit. However, the taking of the credit on the
12 return is deemed to be part of the application for credit. The procedure
13 for granting or denying the applications for refund or credit and review
14 of those determinations shall be as provided in subdivision (e) of
15 section eleven hundred thirty-nine of this article. An operator, includ-
16 ing a room remarketer, who is paid tax by a room remarketer must upon
17 request provide the remarketer with its certificate of authority number,
18 provided that the operator's failure to do so does not change the
19 requirement set forth in paragraph three of this subdivision.
20 S 4. Paragraph 4 of subdivision a of section 11-2502 of the adminis-
21 trative code of the city of New York, as amended by section 8 of part AA
22 of chapter 57 of the laws of 2010, is amended to read as follows:
23 (4) (I) When occupancy is provided, for a single consideration, with
24 property, services, amusement charges, or any other items, the separate
25 sale of which is not subject to tax under this chapter, the entire
26 consideration shall be treated as rent subject to tax under paragraph
27 one of this subdivision; provided, however, that where the amount of the
28 rent for occupancy is stated separately from the price of such property,
29 services, amusement charges or other items on any sales slip, invoice,
30 receipt, or other statement given the occupant and such rent is reason-
31 able in relation to the value of such property, services, amusement
32 charges, or other items, only such separately stated rent will be
33 subject to tax under [paragraph one of] this subdivision.
34 (II) IN REGARD TO THE COLLECTION OF TAX ON OCCUPANCIES BY REMARKETERS,
35 WHEN OCCUPANCY IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROPERTY,
36 SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS, WHETHER OR NOT SUCH
37 OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDERATION FOR SUCH
38 SALE SHALL BE COMPUTED AS FOLLOWS: THE TOTAL CONSIDERATION FOR THE SALE
39 MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDER-
40 ATION PAID TO THE HOTEL FOR THE OCCUPANCY AND THE DENOMINATOR OF WHICH
41 SHALL BE THE CONSIDERATION PAID TO THE HOTEL FOR THE OCCUPANCY PLUS THE
42 CONSIDERATION PAID TO THE PROVIDERS OF THE OTHER ITEMS BEING SOLD, OR BY
43 ANY OTHER REASONABLE METHOD PURSUANT TO WHICH THE RENT PORTION OF
44 CONSIDERATION WOULD BE NO LESS THAN THE COMPUTATION OF RENT PORTION OF
45 CONSIDERATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. NOTHING HEREIN
46 SHALL BE CONSTRUED TO SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR
47 PROPERTY OR AMUSEMENT CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR
48 EXEMPT FROM TAX UNDER THIS CHAPTER.
49 S 5. Paragraph 5 of subdivision a of section 11-2502 of the adminis-
50 trative code of the city of New York, as amended by section 8 of part AA
51 of chapter 57 of the laws of 2010, is amended to read as follows:
52 (5) A room remarketer shall be allowed a refund or credit against the
53 taxes collected and required to be remitted pursuant to section 11-2505
54 of this chapter in the amount of the tax it paid to the operator of the
55 hotel or another room remarketer under [paragraph three of] this subdi-
56 vision. Provided, however, that in order to qualify for a refund or
A. 9059--C 51
1 credit under this paragraph with respect to any quarterly period, as
2 described in subdivision a of section 11-2504 of this chapter, the room
3 remarketer must, with respect to such quarter, (i) be registered for
4 hotel room occupancy tax purposes under section 11-2514 of this chapter,
5 and (ii) collect the taxes imposed by paragraphs two and three of this
6 subdivision. Subject to the conditions and limitations of this para-
7 graph, the provisions of section 11-2507 of this chapter shall apply to
8 refunds or credits under this paragraph.
9 S 6. Subdivision f of section 11-2502 of the administrative code of
10 the city of New York, as amended by local law number 43 of the city of
11 New York for the year 2009 and paragraph 2 as renumbered by section 9 of
12 part AA of chapter 57 of the laws of 2010, is amended to read as
13 follows:
14 f. The tax to be collected shall be stated [and charged] separately
15 from the rent [and shown separately on any record thereof, at the time
16 when the occupancy is arranged or contracted for and charged for and
17 upon every evidence of occupancy or any bill or statement or charge made
18 for said occupancy issued or delivered by the operator or room remarket-
19 er] ON A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE
20 ("INVOICE") GIVEN TO THE OCCUPANT PRIOR TO THE OCCUPANT'S COMPLETION OF
21 HIS OR HER OCCUPANCY AND BE VERIFIABLE FROM THE BOOKS AND RECORDS OF AN
22 OPERATOR OR ROOM REMARKETER RESPONSIBLE FOR COLLECTING AND REMITTING THE
23 TAX.
24 (1) Where an occupant rents a room directly from an operator, the tax
25 shall be paid by the occupant to the operator as trustee for and on
26 account of the city, and the operator shall be liable for the collection
27 of the tax on the rent and for the payment of the tax on the rent.
28 (2) The operator or room remarketer and any officer of any corporate
29 operator or room remarketer shall be personally liable for the portion
30 of the tax collected or required to be collected under this chapter, and
31 the operator shall have the same right in respect to collecting the tax
32 from the occupant, or in respect to nonpayment of the tax by the occu-
33 pant as if the tax were a part of the rent for the occupancy payable at
34 the time such tax shall become due and owing, including all rights of
35 eviction, dispossession, repossession and enforcement of any innkeeper's
36 lien that he or she may have in the event of nonpayment of rent by the
37 occupant; provided however, that the commissioner of finance shall be
38 joined as a party in any action or proceeding brought by the operator to
39 collect or enforce collection of the tax.
40 S 7. This act shall take effect September 1, 2012 and shall apply to
41 occupancies that commence on or after such date.
42 PART R
43 Section 1. Paragraph 1 of subsection (a) of section 601 of the tax
44 law, as added by section 1 of part A of chapter 56 of the laws of 2011,
45 is amended to read as follows:
46 (1) (A) [For] NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, FOR
47 TAXABLE YEARS BEGINNING TWO THOUSAND TWELVE AND THEREAFTER, IF ADJUSTED
48 GROSS INCOME OF EACH RESIDENT MARRIED INDIVIDUAL FILING JOINT RETURNS
49 AND RESIDENT SURVIVING SPOUSE IS BELOW $30,000, THE FOLLOWING BRACKETS
50 AND DOLLAR AMOUNTS SHALL APPLY:
51 IF THE NEW YORK ADJUSTED GROSS INCOME THE TAX IS:
52 IS:
A. 9059--C 52
1 NOT OVER $25,000 0% OF ADJUSTED GROSS INCOME
2 OVER $25,000 BUT NOT OVER $30,000 ONE-SIXTH OF THE TAX CALCULATED
3 UNDER SUBPARAGRAPH (B) OR (C)
4 OF THIS PARAGRAPH FOR EVERY
5 ADDITIONAL $1,000 OF EXCESS OVER
6 $25,000 OF ADJUSTED GROSS INCOME,
7 PLUS ONE-SIXTH OF SUCH TAX
8 (B) EXCEPT FOR TAXPAYERS SUBJECT TO SUBPARAGRAPH (A) OF THIS PARA-
9 GRAPH, FOR taxable years beginning after two thousand eleven and before
10 two thousand fifteen:
11 If the New York taxable income is: The tax is:
12 Not over $16,000 4% of taxable income
13 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
14 $16,000
15 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
16 $22,000
17 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
18 $26,000
19 Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess over
20 $40,000
21 Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess over
22 $150,000
23 Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess over
24 $300,000
25 Over $2,000,000 $135,466 plus 8.82% of excess over
26 $2,000,000
27 [(B) For] (C) EXCEPT FOR TAXPAYERS SUBJECT TO SUBPARAGRAPH (A) OF THIS
28 PARAGRAPH, FOR taxable years beginning after two thousand fourteen, the
29 following brackets and dollar amounts shall apply, as adjusted by the
30 cost of living adjustment prescribed in section six hundred one-a of
31 this part for tax years two thousand thirteen and two thousand fourteen:
32 If the New York taxable income is: The tax is:
33 Not over $16,000 4% of taxable income
34 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
35 $16,000
36 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
37 $22,000
38 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over
39 $26,000
40 Over $40,000 $1,946 plus 6.85% of excess over
41 $40,000
42 S 2. Paragraph 1 of subsection (b) of section 601 of the tax law, as
43 added by section 3 of part A of chapter 56 of the laws of 2011, is
44 amended to read as follows:
45 (1) (A) [For] NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, FOR
46 TAXABLE YEARS BEGINNING TWO THOUSAND TWELVE AND THEREAFTER, IF ADJUSTED
47 GROSS INCOME OF EACH RESIDENT HEAD OF HOUSEHOLD IS BELOW $22,500, THE
48 FOLLOWING BRACKETS AND DOLLAR AMOUNTS SHALL APPLY:
49 IF THE NEW YORK ADJUSTED GROSS THE TAX IS:
50 INCOME IS:
A. 9059--C 53
1 NOT OVER $18,750 0% OF ADJUSTED GROSS INCOME
2 OVER $18,750 BUT NOT OVER $22,500 ONE-SIXTH OF THE TAX CALCULATED
3 UNDER SUBPARAGRAPH (B) OR (C) OF
4 THIS PARAGRAPH FOR EVERY
5 ADDITIONAL $750 OF EXCESS OVER
6 $18,750 OF ADJUSTED GROSS INCOME,
7 PLUS ONE-SIXTH OF SUCH TAX
8 (B) EXCEPT FOR TAXABLE YEARS SUBJECT TO SUBPARAGRAPH (A) OF THIS PARA-
9 GRAPH, FOR taxable years beginning after two thousand eleven and before
10 two thousand fifteen:
11 If the New York taxable income is: The tax is:
12 Not over $12,000 4% of taxable income
13 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
14 $12,000
15 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
16 $16,500
17 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
18 $19,500
19 Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess over
20 $30,000
21 Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess over
22 $100,000
23 Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess over
24 $250,000
25 Over $1,500,000 $101,575 plus 8.82% of excess over
26 $1,500,000
27 [(B) For] (C) EXCEPT FOR TAXPAYERS SUBJECT TO SUBPARAGRAPH (A) OF THIS
28 PARAGRAPH, FOR taxable years beginning after two thousand fourteen, the
29 following brackets and dollars amounts shall apply, as adjusted by the
30 cost of living adjustment prescribed in section six hundred one-a of
31 this part for tax years two thousand thirteen and two thousand fourteen:
32 If the New York taxable income is: The tax is:
33 Not over $12,000 4% of taxable income
34 Over $12,000 but not over $16,500 $480 plus 4.5% of excess over
35 $12,000
36 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over
37 $16,500
38 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over
39 $19,500
40 Over $30,000 $1,460 plus 6.85% of excess over
41 $30,000
42 S 3. Paragraph 1 of subsection (c) of section 601 of the tax law, as
43 added by section 5 of part A of chapter 56 of the laws of 2011, is
44 amended to read as follows:
45 (1) (A) [For] NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, FOR
46 TAXABLE YEARS BEGINNING TWO THOUSAND TWELVE AND THEREAFTER, IF ADJUSTED
47 GROSS INCOME OF EACH RESIDENT UNMARRIED INDIVIDUAL, RESIDENT MARRIED
48 INDIVIDUALS FILING SEPARATE RETURNS AND RESIDENT ESTATE AND TRUSTS, IS
49 BELOW $15,000, THE FOLLOWING BRACKETS AND DOLLAR AMOUNTS SHALL APPLY:
A. 9059--C 54
1 IF THE NEW YORK ADJUSTED GROSS THE TAX IS:
2 INCOME IS:
3 NOT OVER $12,500 0% OF ADJUSTED GROSS INCOME
4 OVER $12,500 BUT NOT OVER $15,000 ONE-SIXTH OF THE TAX CALCULATED
5 UNDER SUBPARAGRAPH (B) OR (C) OF
6 THIS PARAGRAPH FOR EVERY
7 ADDITIONAL $500 OF EXCESS OVER
8 $12,500 OF ADJUSTED GROSS INCOME,
9 PLUS ONE-SIXTH OF SUCH TAX
10 (B) EXCEPT FOR TAXPAYERS SUBJECT TO SUBPARAGRAPH (A) OF THIS PARA-
11 GRAPH, FOR taxable years beginning after two thousand eleven and before
12 two thousand fifteen:
13 If the New York taxable income is: The tax is:
14 Not over $8,000 4% of taxable 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 5.90% of excess over
20 $13,000
21 Over $20,000 but not over $75,000 $973 plus 6.45% of excess over
22 $20,000
23 Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess over
24 $75,000
25 Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess over
26 $200,000
27 Over $1,000,000 $67,633 plus 8.82% of excess over
28 $1,000,000
29 [(B) For] (C) EXCEPT FOR TAXPAYERS SUBJECT TO SUBPARAGRAPH (A) OF THIS
30 PARAGRAPH, FOR taxable years beginning after two thousand fourteen, the
31 following brackets and dollars amounts shall apply, as adjusted by the
32 cost of living adjustment prescribed in section six hundred one-a of
33 this part for tax years two thousand thirteen and two thousand fourteen:
34 If the New York taxable income is: The tax is:
35 Not over $8,000 4% of taxable income
36 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
37 $8,000
38 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
39 $11,000
40 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over
41 $13,000
42 Over $20,000 $973 plus 6.85% of excess over
43 $20,000
44 S 4. This act shall take effect immediately.
45 PART S
46 Section 1. The opening paragraph of paragraph 7 of subdivision (a) of
47 section 11 of the tax law, as amended by section 19 of part A of chapter
48 63 of the laws of 2005, is amended to read as follows:
A. 9059--C 55
1 "Qualified business" - A QUALIFIED SEED FUND OR an independently owned
2 and operated business that meets all of the following conditions as of
3 the time of the first investment in the business:
4 S 2. Paragraph 10 of subdivision (a) of section 11 of the tax law, as
5 amended by section 19 of part A of chapter 63 of the laws of 2005, is
6 amended to read as follows:
7 (10) "Qualified investment" - the investment of cash by a certified
8 capital company in a qualified business for the purchase of any debt,
9 equity or hybrid security, of any nature and description whatever,
10 including a debt instrument or security which has the characteristics of
11 debt but which provides for conversion into equity or equity partic-
12 ipation instruments such as options or warrants, provided however, in
13 the case of certified capital programs three, four [and], five[,] AND
14 SIX that any such debt instrument have a maturity of at least twenty-
15 four months from the date such debt is incurred; and further provided
16 that a certified capital company, after the investment and assuming full
17 conversion and exercise of any equity participation instruments, shall
18 not own more than fifty percent of the voting equity of the qualified
19 business, except in the case of a follow-on investment where a specific
20 exemption is granted by the department under subparagraph (D) of para-
21 graph one of subdivision (c) of this section OR AN INVESTMENT IN A QUAL-
22 IFIED SEED FUND BY A PROGRAM SIX CERTIFIED CAPITAL COMPANY. Further-
23 more, except in the case of a follow-on investment, if a certified
24 capital company owns more than fifteen percent of the equity in a compa-
25 ny or has a seat on the board of directors of such company, then a
26 certified capital company cannot invest in such company unless the
27 following conditions are met: (i) at least one other investor who is not
28 an affiliate of the certified capital company participates in the same
29 round of investment on the same terms and conditions as the certified
30 capital company; and (ii) the certified capital company and its affil-
31 iates invest no more than fifty percent of the total investment made in
32 that round of investment.
33 S 3. Subdivision (a) of section 11 of the tax law is amended by adding
34 two new paragraphs 17 and 18 to read as follows:
35 (17) "QUALIFIED SEED FUND" - IS ANY FUND THAT HAS BEEN CERTIFIED BY
36 THE SUPERINTENDENT AS SUCH BY RULE OR REGULATION. THE SUPERINTENDENT MAY
37 CERTIFY PARTNERSHIPS, CORPORATIONS, TRUSTS, OR LIMITED LIABILITY COMPA-
38 NIES ORGANIZED ON A FOR-PROFIT BASIS, OR NOT-FOR-PROFIT FUNDS, WHICH
39 SUBMIT AN APPLICATION TO BE DESIGNATED AS A QUALIFIED SEED FUND OPERATOR
40 IF SUCH APPLICANT IS LOCATED, HEADQUARTERED AND LICENSED OR REGISTERED
41 TO CONDUCT BUSINESS IN NEW YORK. QUALIFIED SEED FUNDS SHALL BE UNDER
42 EXPERIENCED PROFESSIONAL MANAGEMENT FAMILIAR WITH SEED CAPITAL INVEST-
43 MENT, APPROPRIATE BUSINESS PRACTICES AND TECHNOLOGY-ORIENTED PRODUCTS
44 AND SERVICES, AND FORMED FOR THE PURPOSE OF PROVIDING PRIVATE EQUITY TO
45 TECHNOLOGY-BASED COMPANIES IN THEIR FORMATIVE STAGES AND INVEST IN QUAL-
46 IFIED ENTERPRISES LOCATED WITHIN NEW YORK STATE. QUALIFIED SEED FUNDS
47 MUST DEMONSTRATE (A) CAPACITY TO PERFORM DUE DILIGENCE IN MAKING INVEST-
48 MENT DECISIONS AND TO PROVIDE MANAGEMENT EXPERTISE AND OTHER VALUE-ADDED
49 SERVICES; (B) FINANCIAL RESOURCES FOR IDENTIFYING AND INVESTING
50 SEED-STAGE COMPANIES; AND (C) ABILITY TO EVALUATE EMERGING TECHNOLOGY
51 COMMERCIALIZATION.
52 (18) "MATCH" - A CASH INVESTMENT IN OR LOAN TO A QUALIFIED BUSINESS
53 MADE NO MORE THAN THREE MONTHS BEFORE OR SIX MONTHS AFTER AN INVESTMENT
54 OF CERTIFIED CAPITAL BY A CERTIFIED CAPITAL COMPANY PROGRAM SIX IN SUCH
55 QUALIFIED BUSINESS, OTHER THAN AN INVESTMENT MADE WITH CERTIFIED CAPI-
56 TAL. THE TERM SHALL ALSO INCLUDE CASH INVESTED IN OR LENT TO A QUALIFIED
A. 9059--C 56
1 BUSINESS BY A CERTIFIED CAPITAL COMPANY THAT HAS INVESTED ONE HUNDRED
2 PERCENT OF ITS CERTIFIED CAPITAL IN QUALIFIED BUSINESSES.
3 S 4. Paragraph 9 of subdivision (b) of section 11 of the tax law, as
4 amended by section 19 of part A of chapter 63 of the laws of 2005, is
5 amended to read as follows:
6 (9) The superintendent shall start accepting applications to become a
7 certified capital company in certified capital company program two by
8 November first, nineteen hundred ninety-nine, and shall start accepting
9 applications to become a certified capital company in certified capital
10 company program three by August first, two thousand, and shall begin
11 accepting applications to become a certified capital company in certi-
12 fied capital company program four by the later of August first, two
13 thousand four or not more than sixty days after the effective date of
14 section one of part D of chapter fifty-nine of the laws of two thousand
15 four and shall begin accepting applications to become a certified capi-
16 tal company in certified capital company program five by the later of
17 July first, two thousand five or not more than sixty days after the
18 effective date of the chapter of the laws of two thousand five which
19 amended this paragraph, AND SHALL BEGIN ACCEPTING APPLICATIONS TO BECOME
20 A CERTIFIED CAPITAL COMPANY IN PROGRAM SIX BY JULY FIRST, TWO THOUSAND
21 TWELVE OR NOT MORE THAN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THE CHAP-
22 TER OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED THIS PARAGRAPH.
23 S 5. Subparagraph (A) of paragraph 1 of subdivision (c) of section 11
24 of the tax law, as amended by section 19 of part A of chapter 63 of the
25 laws of 2005, is amended to read as follows:
26 (A) Within two years after the starting date of a specific certified
27 capital company program of a certified capital company, at least twen-
28 ty-five percent of its certified capital allocable to such certified
29 capital company program must be placed in qualified investments AND IN
30 THE CASE OF PROGRAM SIX, AT LEAST TEN PERCENT OF ITS CERTIFIED CAPITAL
31 MUST HAVE BEEN PLACED IN QUALIFIED SEED FUNDS. ALL QUALIFIED INVESTMENTS
32 MADE IN QUALIFIED SEED FUNDS UNDER PROGRAM SIX SHALL COUNT TOWARDS THE
33 TWENTY-FIVE PERCENT INVESTMENT REQUIREMENT OF THIS SUBPARAGRAPH.
34 S 6. Subparagraph (C) of paragraph 1 of subdivision (c) of section 11
35 of the tax law, as amended by section 19 of part A of chapter 63 of the
36 laws of 2005, is amended to read as follows:
37 (C) Within four years after the starting date of a specific certified
38 capital company program of a certified capital company, at least fifty
39 percent of its certified capital allocable to such certified capital
40 company program must be placed in qualified investments, at least fifty
41 percent of which must have been placed in early stage businesses, except
42 that in the case of program four and any subsequent program, at least
43 twenty-five percent of which must have been placed in early stage busi-
44 nesses and an additional twenty-five percent of which must have been
45 placed in start-up businesses, and except that in the case of qualified
46 investments made in qualified businesses located in empire zones estab-
47 lished pursuant to article eighteen-B of the general municipal law under
48 the provisions of certified capital company program three, program four
49 and program five from allocations of certified capital made specifically
50 for such targeted investments in such zones, the requirement for quali-
51 fied investments in early stage and start-up businesses shall not apply.
52 AN INVESTMENT IN A QUALIFIED SEED FUND SHALL COUNT TOWARDS THE REQUIRE-
53 MENT UNDER PROGRAM SIX FOR QUALIFIED INVESTMENTS IN EARLY STAGE BUSI-
54 NESSES.
A. 9059--C 57
1 S 7. Subparagraph (D) of paragraph 1 of subdivision (c) of section 11
2 of the tax law, as amended by section 19 of part A of chapter 63 of the
3 laws of 2005, is amended to read as follows:
4 (D) A certified capital company, at least fifteen working days prior
5 to making a proposed investment in a specific business, shall certify in
6 writing to the superintendent that (i) the business in which it proposes
7 to invest meets the definition of a qualified business as set forth in
8 subdivision (a) of this section or, in the case of a follow-on invest-
9 ment, that such business continues to meet the requirements set forth in
10 subparagraphs (A) and (C) of paragraph seven of subdivision (a) of this
11 section and, in either case, an explanation of its determination that
12 the business meets such requirements, [and] (ii) with respect to certi-
13 fied capital company program three, program four and program five,
14 whether or not such business is located in an empire zone established
15 pursuant to article eighteen-B of the general municipal law or in an
16 underserved area outside an empire zone AND (III) WITH RESPECT TO CERTI-
17 FIED CAPITAL COMPANY PROGRAM SIX, WHETHER OR NOT SUCH INVESTMENT IS IN A
18 QUALIFIED SEED FUND. The certification to the superintendent shall
19 include a sworn statement from the business in which the certified capi-
20 tal company proposes to invest, which statement shall evidence the
21 intention of the business to maintain its headquarters in New York and
22 conduct its primary business operations in the state of New York after
23 its receipt of the investment by the certified capital company. If the
24 superintendent determines that the business does not meet the definition
25 of a qualified business, or, in the case of a follow-on investment, that
26 such business does not meet the requirements set forth in subparagraphs
27 (A) and (C) of paragraph seven of subdivision (a) of this section, then
28 it shall, within the fifteen working day period prior to the making of
29 the proposed investment, notify the certified capital company of its
30 determination and provide an explanation thereof, provided, however,
31 that the department may, upon written request of a certified capital
32 company and at the discretion of the department, grant, in writing, an
33 exemption to the percentage limitations of paragraph ten of subdivision
34 (a) of this section.
35 S 8. Subparagraph (F) of paragraph 1 of subdivision (c) of section 11
36 of the tax law, as amended by section 19 of part A of chapter 63 of the
37 laws of 2005, is amended to read as follows:
38 (F) If within ten years after the starting date of certified capital
39 company program four [or], program five OR PROGRAM SIX, and within
40 twelve years after the starting date of certified capital company
41 programs one, two, and three, one hundred percent of the certified capi-
42 tal allocable to a certified capital company participating in [such]
43 program ONE, TWO, THREE, FOUR OR FIVE has not been placed in qualified
44 investments AND, WITH RESPECT TO PROGRAM SIX, ONE HUNDRED PERCENT OF THE
45 CERTIFIED CAPITAL HAS NOT BEEN PLACED IN QUALIFIED INVESTMENTS WITH TEN
46 PERCENT OF SUCH AMOUNT BEING PLACED IN QUALIFIED SEED FUNDS, the specif-
47 ic certified capital company shall no longer be permitted to receive
48 management fees; provided that such restriction shall not apply (i) with
49 respect to certified capital company programs one, two, and three, to
50 any certified capital company that has not, prior to October thirty-
51 first, two thousand four, received, as opposed to accrued, any manage-
52 ment fees, or (ii) with respect to any certified capital company
53 program, to a certified capital company in which at least fifty percent
54 of the voting stock, capital, membership interests, or other beneficial
55 ownership interests, as the case may be, are owned by an entity that is
56 managed, directly or indirectly, by a non-profit corporation.
A. 9059--C 58
1 S 9. Paragraph 1 of subdivision (c) of section 11 of the tax law is
2 amended by adding a new subparagraph (G) to read as follows:
3 (G) IF WITHIN ONE YEAR OF THE STARTING DATE OF CERTIFIED CAPITAL
4 COMPANY PROGRAM SIX, THE CERTIFIED CAPITAL COMPANY HAS NOT ACHIEVED A
5 MATCH OF AT LEAST ONE HUNDRED PERCENT OF THE AMOUNT OF QUALIFIED INVEST-
6 MENTS MADE BY SUCH CERTIFIED CAPITAL COMPANY WITH PROGRAM SIX CERTIFIED
7 CAPITAL AS OF SUCH DATE, THE SPECIFIC CERTIFIED CAPITAL COMPANY SHALL
8 NOT BE PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT HAS ACHIEVED SUCH
9 MATCH. IF WITHIN THREE YEARS OF THE STARTING DATE OF CERTIFIED CAPITAL
10 COMPANY PROGRAM SIX, THE CERTIFIED CAPITAL COMPANY HAS NOT ACHIEVED A
11 MATCH OF AT LEAST ONE HUNDRED PERCENT OF THE AMOUNT OF QUALIFIED INVEST-
12 MENTS MADE BY SUCH CERTIFIED CAPITAL COMPANY WITH PROGRAM SIX CERTIFIED
13 CAPITAL COMPANY AS OF SUCH DATE, THE SPECIFIC CERTIFIED CAPITAL COMPANY
14 SHALL NOT BE PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT HAS ACHIEVED
15 SUCH MATCH. IF WITHIN FIVE YEARS OF THE STARTING DATE OF CERTIFIED CAPI-
16 TAL COMPANY PROGRAM SIX, THE CERTIFIED CAPITAL COMPANY HAS NOT ACHIEVED
17 A MATCH OF AT LEAST ONE HUNDRED PERCENT OF THE AMOUNT OF QUALIFIED
18 INVESTMENTS MADE BY SUCH CERTIFIED CAPITAL COMPANY WITH PROGRAM SIX
19 CERTIFIED CAPITAL COMPANY AS OF SUCH DATE, THE SPECIFIC CERTIFIED CAPI-
20 TAL COMPANY SHALL NOT BE PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT
21 HAS ACHIEVED SUCH MATCH.
22 S 10. Subparagraph (A) of paragraph 6 of subdivision (c) of section
23 11 of the tax law, as amended by section 19 of part A of chapter 63 of
24 the laws of 2005, is amended to read as follows:
25 (A) As soon as practicable after the receipt of certified capital or
26 an irrevocable funding commitment subject only to the receipt of an
27 allocation pursuant to subdivision (h) of this section, (i) the name of
28 each certified investor from which the certified capital was received,
29 including such certified investor's insurance tax identification number;
30 (ii) the amount of each certified investor's investment of certified
31 capital; and (iii) the date on which the certified capital was received.
32 Provided, however, that requests for allocation of tax credits with
33 respect to certified capital company program two by certified capital
34 companies on behalf of their certified investors which are received by
35 the superintendent on or before March first, two thousand shall be
36 treated as having been received on March first, two thousand for tax
37 credits to be utilized in two thousand one, and if satisfactory, shall
38 be given equal priority for allocation, and provided, however, that
39 requests for allocation of tax credits with respect to certified capital
40 company program three by certified capital companies on behalf of their
41 certified investors which are received by the superintendent on or
42 before December first, two thousand shall be treated as having been
43 received on December first, two thousand for tax credits to be utilized
44 in two thousand two, and if satisfactory, shall be given equal priority
45 for allocation, and provided, however, that requests for allocation of
46 tax credits with respect to certified capital company program four by
47 certified capital companies on behalf of their certified investors which
48 are received by the superintendent on or before December first, two
49 thousand four shall be treated as having been received on December
50 first, two thousand four for tax credits to be utilized in two thousand
51 six, and if satisfactory, shall be given equal priority for allocation,
52 and provided, however, that requests for allocation of tax credits with
53 respect to certified capital company program five by certified capital
54 companies on behalf of their certified investors which are received by
55 the superintendent on or before the later of (i) November first, two
56 thousand five and (ii) the one hundred twentieth day after the date on
A. 9059--C 59
1 which the superintendent began accepting applications for certification
2 in connection with certified capital company program five pursuant to
3 paragraph nine of subdivision (b) of this section shall be treated as
4 having been received on such later date for tax credits to be utilized
5 in two thousand seven, and if satisfactory, shall be given equal priori-
6 ty for allocation, AND PROVIDED, HOWEVER, THAT REQUESTS FOR ALLOCATION
7 OF TAX CREDITS WITH RESPECT TO CERTIFIED CAPITAL COMPANY PROGRAM SIX BY
8 CERTIFIED CAPITAL COMPANIES ON BEHALF OF THEIR CERTIFIED INVESTORS WHICH
9 ARE RECEIVED BY THE SUPERINTENDENT ON OR BEFORE THE LATER OF (I) NOVEM-
10 BER FIRST, TWO THOUSAND TWELVE AND (II) THE ONE HUNDRED TWENTIETH DAY
11 AFTER THE DATE ON WHICH THE SUPERINTENDENT BEGAN ACCEPTING APPLICATIONS
12 FOR CERTIFICATION IN CONNECTION WITH CERTIFIED CAPITAL PROGRAM SIX
13 PURSUANT TO PARAGRAPH NINE OF SUBDIVISION (B) OF THIS SECTION SHALL BE
14 TREATED AS HAVING BEEN RECEIVED ON SUCH LATER DATE FOR TAX CREDITS TO BE
15 UTILIZED IN TWO THOUSAND SIXTEEN, AND IF SATISFACTORY, SHALL BE GIVEN
16 EQUAL PRIORITY FOR ALLOCATION.
17 S 11. Subparagraph (B) of paragraph 6 of subdivision (c) of section 11
18 of the tax law, as amended by section 19 of part A of chapter 63 of the
19 laws of 2005, is amended to read as follows:
20 (B) On an annual basis, on or before January thirty-first of each
21 year, (i) the amount of the certified capital company's certified capi-
22 tal at the end of the immediately preceding year; (ii) whether or not
23 the certified capital company has invested more than fifteen percent of
24 its total certified capital in any one business; (iii) all qualified
25 investments that the certified capital company made during the previous
26 calendar year, including the number of employees of each qualified busi-
27 ness in which it has made investments at the time of such investment and
28 as of December first of the preceding calendar year. For any qualified
29 business where the certified capital company no longer has an invest-
30 ment, the certified capital company shall provide employment figures for
31 such company as of the last day before the investment was terminated.
32 Such report shall provide a separate accounting by each certified capi-
33 tal company program; [and] (iv) all qualified investments made in empire
34 zones and underserved areas outside such empire zones as required under
35 certified capital company program three, certified capital company
36 program four and certified capital company program five; AND (V) WITH
37 RESPECT TO CERTIFIED CAPITAL COMPANY PROGRAM SIX, ALL QUALIFIED INVEST-
38 MENTS MADE IN UNDERSERVED AREAS, ALL QUALIFIED INVESTMENTS MADE IN QUAL-
39 IFIED SEED FUNDS, INCLUDING THE NUMBER OF EMPLOYEES OF EACH BUSINESS IN
40 WHICH A QUALIFIED SEED FUND HAS MADE INVESTMENTS AT THE TIME OF SUCH
41 INVESTMENT AND AS OF DECEMBER FIRST OF THE PRECEDING CALENDAR YEAR AND
42 THE MATCH ACHIEVED BY THE CERTIFIED CAPITAL COMPANY. FOR ANY BUSINESS
43 WHERE THE QUALIFIED SEED FUND NO LONGER HAS AN INVESTMENT, THE CERTIFIED
44 CAPITAL COMPANY SHALL PROVIDE EMPLOYMENT FIGURES FOR SUCH COMPANY AS OF
45 THE LAST DAY BEFORE THE INVESTMENT WAS TERMINATED.
46 S 12. Paragraph 1 of subdivision (d) of section 11 of the tax law, as
47 amended by section 19 of part A of chapter 63 of the laws of 2005, is
48 amended to read as follows:
49 (1) A certified capital company may make qualified distributions at
50 any time. In order for a certified capital company to make a distrib-
51 ution other than a qualified distribution from a certified capital
52 company program, to its equity holders, either (A) the aggregate cumula-
53 tive amount of all qualified investments for such program must equal or
54 exceed one hundred percent of its certified capital allocable to such
55 certified capital company program AND WITH RESPECT TO PROGRAM SIX, THE
56 CERTIFIED CAPITAL COMPANY MUST HAVE ACHIEVED A MATCH OF AT LEAST NINETY
A. 9059--C 60
1 PERCENT OF THE CERTIFIED CAPITAL ALLOCABLE TO SUCH CERTIFIED CAPITAL
2 COMPANY, or (B) it must have received written authorization to make such
3 distribution from the superintendent. In no event, however, shall any
4 such distribution to its equity holders, other than a qualified distrib-
5 ution, be made by a certified capital company from a certified capital
6 company program unless an amount equal cumulatively to at least ninety
7 percent of its certified capital of such program is invested in compa-
8 nies that conduct their principal business operations in New York state.
9 S 13. Paragraph 5 of subdivision (e) of section 11 of the tax law, as
10 amended by section 19 of part A of chapter 63 of the laws of 2005, is
11 amended to read as follows:
12 (5) Once a certified capital company has invested an amount cumula-
13 tively equal to one hundred percent of its certified capital with
14 respect to a particular certified capital company program in qualified
15 investments and has met all other requirements under this subdivision,
16 INCLUDING THE REQUIREMENT THAT A PROGRAM SIX CERTIFIED CAPITAL COMPANY
17 INVEST TEN PERCENT OF ITS CERTIFIED CAPITAL IN QUALIFIED SEED FUNDS AND
18 ACHIEVE A MATCH OF AT LEAST NINETY PERCENT OF THE CERTIFIED CAPITAL
19 ALLOCABLE TO SUCH CERTIFIED CAPITAL COMPANY, the certified capital
20 company shall no longer be subject to regulation by the superintendent
21 and shall no longer be subject to the requirements of subdivision (c) of
22 this section with respect to such program. Upon receiving documented
23 certification by a certified capital company that it has invested, WITH
24 RESPECT TO PROGRAMS ONE, TWO, THREE, FOUR AND FIVE, an amount equal to
25 one hundred percent of its certified capital AND, WITH RESPECT TO
26 PROGRAM SIX, AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF ITS CERTIFIED
27 CAPITAL WITH TEN PERCENT OF SUCH CERTIFIED CAPITAL INVESTED IN QUALIFIED
28 SEED FUNDS AND, WITH RESPECT TO PROGRAM SIX, ACHIEVED A MATCH OF AT
29 LEAST NINETY PERCENT OF THE CERTIFIED CAPITAL ALLOCABLE TO SUCH CERTI-
30 FIED CAPITAL COMPANY, the department shall have sixty days to notify
31 such certified capital company that it has or has not met such require-
32 ment with a reason for such determination if it has not, in the judgment
33 of the department, met such requirement. If the department does not
34 provide such notification within sixty days, the certified capital
35 company shall then be deemed to have met such requirement.
36 S 14. Subdivision (h) of section 11 of the tax law is amended by
37 adding a new paragraph 6 to read as follows:
38 (6) CERTIFIED CAPITAL COMPANY PROGRAM SIX. THE AGGREGATE AMOUNT OF
39 CERTIFIED CAPITAL FOR WHICH TAXPAYERS MAY BE ALLOCATED AND ALLOWED TAX
40 CREDITS PURSUANT TO THIS PARAGRAPH AND SUBDIVISION (K) OF SECTION
41 FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER MAY NOT EXCEED ONE HUNDRED FIFTY
42 MILLION DOLLARS FOR CALENDAR YEAR TWO THOUSAND SIXTEEN, WHICH CERTIFIED
43 CAPITAL MAY BE INVESTED IN CERTIFIED CAPITAL COMPANIES BEGINNING IN
44 CALENDAR YEAR TWO THOUSAND TWELVE.
45 DURING ANY CALENDAR YEAR IN WHICH THE LIMITATION DESCRIBED IN THIS
46 PARAGRAPH WILL LIMIT THE AMOUNT OF CERTIFIED CAPITAL, CERTIFIED CAPITAL
47 WILL BE ALLOCATED IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING OF
48 INFORMATION DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVI-
49 SION (C) OF THIS SECTION. THE SUPERINTENDENT SHALL ADVISE ANY CERTIFIED
50 CAPITAL COMPANY IN WRITING, WITHIN FIFTEEN DAYS AFTER RECEIVING SUCH
51 FILING, WHETHER THE LIMITATIONS OF THIS PARAGRAPH THEN IN EFFECT WILL BE
52 APPLICABLE WITH RESPECT TO THE INVESTMENTS AND CREDITS DESCRIBED IN SUCH
53 FILING WITH THE SUPERINTENDENT.
54 CERTIFIED CAPITAL MAY BE RAISED BY EACH CERTIFIED CAPITAL COMPANY WITH
55 RESPECT TO CERTIFIED CAPITAL COMPANY PROGRAM SIX AT ANY TIME SUBSEQUENT
56 TO ITS CERTIFICATION DATE, AND CREDITS SHALL BE ALLOCATED TO AND IRREVO-
A. 9059--C 61
1 CABLY VESTED BY THE STATE IN CERTIFIED INVESTORS AT THE TIME OF EACH
2 SUCH INVESTMENT AS PROVIDED IN THIS PARAGRAPH, ALTHOUGH SUCH CREDITS
3 SHALL NOT BE FIRST ALLOWED OR INCURRED FOR STATE TAX PURPOSES, UNTIL, AT
4 THE EARLIEST, TAX YEARS BEGINNING IN TWO THOUSAND SIXTEEN. IN ORDER TO
5 SATISFY THE REQUIREMENTS OF PARAGRAPH FIVE OF SUBDIVISION (E) OF THIS
6 SECTION, A CERTIFIED CAPITAL COMPANY MUST HAVE MADE, ON A CUMULATIVE
7 BASIS, (A) AN AMOUNT OF QUALIFIED INVESTMENTS IN QUALIFIED BUSINESSES
8 LOCATED IN UNDERSERVED AREAS EQUAL TO AT LEAST TWO-THIRDS OF THE CERTI-
9 FIED CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY WITH RESPECT TO
10 CERTIFIED CAPITAL COMPANY PROGRAM SIX, (B) QUALIFIED INVESTMENTS IN
11 QUALIFIED SEED FUNDS IN AN AMOUNT EQUAL TO AT LEAST TEN PERCENT OF THE
12 CERTIFIED CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY WITH RESPECT
13 TO CERTIFIED CAPITAL COMPANY PROGRAM SIX AND (C) QUALIFIED INVESTMENTS
14 IN QUALIFIED BUSINESSES THAT ARE INVOLVED IN COMMERCE FOR THE PRIMARY
15 PURPOSE OF DEVELOPING AND MANUFACTURING PRODUCTS AND SYSTEMS COVERED BY
16 THE ACTIVITIES SET FORTH IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
17 THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW AND HAVE A RATIO
18 OF RESEARCH AND DEVELOPMENT EXPENDITURES TO NET SALES WHICH EQUALS OR
19 EXCEEDS SIX PERCENT DURING THE FISCAL YEAR IMMEDIATELY PRECEDING THE
20 QUALIFIED INVESTMENT IN AN AMOUNT EQUAL TO AT LEAST THIRTY-THREE PERCENT
21 OF THE CERTIFIED CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY WITH
22 RESPECT TO PROGRAM SIX; PROVIDED, HOWEVER, THAT ALL QUALIFIED INVEST-
23 MENTS IN QUALIFIED SEED FUNDS SHALL COUNT TOWARD THE AMOUNT REQUIRED BY
24 SUBPARAGRAPH (C) OF THIS PARAGRAPH.
25 S 15. Subdivision (i) of section 11 of the tax law, as amended by
26 section 19 of part A of chapter 63 of the laws of 2005, is amended to
27 read as follows:
28 (i) Maximum certified capital. The maximum amount of certified capital
29 per certified capital company program invested in one or more certified
30 capital companies allowed in any one year to any one certified investor
31 shall not exceed ten million dollars for certified capital company
32 programs one and three, [and] eight million dollars for certified capi-
33 tal company programs two, four and five, AND FIFTEEN MILLION DOLLARS
34 FROM CERTIFIED CAPITAL COMPANY PROGRAM SIX for such year, provided,
35 however, that if the aggregate amount of certified capital for such
36 year, as set forth in subdivision (h) of this section, has not been
37 reached sixty days prior to the end of the year to which such aggregate
38 amount applies, the provisions of this subdivision shall cease to apply
39 for the remainder of such year. In addition, the aggregate amount of tax
40 credits allowed in any taxable year to any affiliated group of taxpayers
41 in relation to certified capital may not exceed such maximum amount,
42 whether or not such taxpayers file a combined return pursuant to subdi-
43 vision (f) of section fifteen hundred fifteen of this chapter. For
44 purposes of the preceding sentence, the term "affiliated group" shall
45 have the same meaning as described in section 1504 of the internal
46 revenue code, except that the references to "at least eighty percent" in
47 such section 1504 shall be read as "more than fifty percent".
48 S 16. Subdivision (j) of section 11 of the tax law, as amended by
49 section 19 of part A of chapter 63 of the laws of 2005, is amended to
50 read as follows:
51 (j) Reports. The superintendent shall report to the governor, the
52 temporary president of the senate, and the speaker of the assembly, on
53 or before June first of each year beginning in the year two thousand,
54 the number of certified capital companies holding certified capital; the
55 amount of certified capital invested in each certified capital company;
56 the cumulative amount that each certified capital company has invested
A. 9059--C 62
1 as of January first of the year two thousand and the cumulative total
2 each year thereafter; the cumulative amount that the investments of each
3 certified capital company have leveraged in terms of capital invested by
4 other sources of capital in qualified businesses at the same time or
5 subsequent to investments made by a certified capital company in such
6 businesses; the total amount of tax credits granted under this section
7 each year that credits have been awarded under this section and subdivi-
8 sion (k) of section fifteen hundred eleven of this chapter; the perform-
9 ance of each certified capital company with regard to the requirements
10 for recertification set forth in subdivision (c) of this section; the
11 classification of companies in which each certified capital company has
12 invested according to industrial sector and size of company; the total
13 gross number of jobs created by investments made by each certified capi-
14 tal company using certified capital and the number of jobs retained; the
15 location of companies in which each certified capital company has
16 invested in a manner to indicate if the requirements for qualified
17 investments in qualified businesses located in empire zones established
18 pursuant to article eighteen-B of the general municipal law set forth
19 for programs three, four and five and in underserved areas outside such
20 empire zones have been met; the total gross number of jobs created in
21 empire zones established pursuant to article eighteen-B of the general
22 municipal law and in underserved areas outside such empire zones made by
23 each certified capital company using certified capital in certified
24 capital company programs three, four and five, reported by geographic
25 location of each empire zone and underserved area and the number of jobs
26 retained; and those certified capital companies that have been decerti-
27 fied, or have had their certifications revoked, including the reasons
28 for decertification or revocation; THE LOCATION OF COMPANIES IN WHICH
29 EACH CERTIFIED CAPITAL COMPANY HAS INVESTED IN A MANNER TO INDICATE IF
30 THE REQUIREMENTS FOR QUALIFIED INVESTMENTS IN QUALIFIED BUSINESSES
31 LOCATED IN UNDERSERVED AREAS AS SET FORTH IN PROGRAM SIX; THE TOTAL
32 GROSS NUMBER OF JOBS CREATED IN UNDERSERVED AREAS USING CERTIFIED CAPI-
33 TAL IN CERTIFIED CAPITAL COMPANY PROGRAM SIX AND THE NUMBER OF JOBS
34 RETAINED; THE AMOUNT OF QUALIFIED INVESTMENTS MADE INTO QUALIFIED SEED
35 FUNDS FOR PROGRAM SIX CERTIFIED CAPITAL COMPANIES; THE CLASSIFICATION OF
36 COMPANIES IN WHICH EACH QUALIFIED SEED FUND HAS INVESTED ACCORDING TO
37 INDUSTRIAL SECTOR AND SIZE OF COMPANY; THE TOTAL GROSS NUMBER OF JOBS
38 CREATED BY INVESTMENTS MADE BY EACH QUALIFIED SEED FUND USING THE NUMBER
39 OF JOBS RETAINED.
40 S 17. Paragraph 2 of subdivision (k) of section 1511 of the tax law,
41 as amended by section 2 of part S of chapter 407 of the laws of 1999, is
42 amended to read as follows:
43 (2) Ten percent of such credit shall be allowed in the taxable year to
44 which such investment is allocated pursuant to PARAGRAPHS ONE THROUGH
45 FIVE OF subdivision (h) of section eleven of this chapter and in each of
46 the nine following taxable years. TWENTY-FIVE PERCENT OF SUCH CREDIT
47 SHALL BE ALLOWED IN THE TAXABLE YEAR TO WHICH SUCH INVESTMENT IS ALLO-
48 CATED PURSUANT TO PARAGRAPH SIX OF SUBDIVISION (H) OF SECTION ELEVEN OF
49 THIS CHAPTER AND IN EACH OF THE THREE FOLLOWING TAXABLE YEARS. In addi-
50 tion, in any taxable year subsequent to the taxable year for which
51 [such] ANY investment is so allocated UNDER SUBDIVISION (H), any amount
52 carried forward under paragraphs three and four of this subdivision may
53 be carried forward indefinitely until such credits are utilized.
54 S 18. Section 84 of part A of chapter 62 of the laws of 2011 relating
55 to constituting chapter 18-A of the consolidated laws relating to finan-
56 cial services is REPEALED.
A. 9059--C 63
1 S 19. This act shall take effect immediately.
2 PART T
3 Intentionally Omitted.
4 PART U
5 Section 1. Subdivision (d) of section 25-a of the labor law, as added
6 by section 1 of part D of chapter 56 of the laws of 2011, is amended to
7 read as follows:
8 (d) To participate in the New York youth works tax credit program, an
9 employer must submit an application (in a form prescribed by the commis-
10 sioner) to the commissioner after January first, two thousand twelve but
11 no later than [June first] NOVEMBER THIRTIETH, two thousand twelve. The
12 qualified employees must start their employment on or after January
13 first, two thousand twelve but no later than [July first] DECEMBER THIR-
14 TY-FIRST, two thousand twelve. The commissioner shall establish guide-
15 lines and criteria that specify requirements for employers to partic-
16 ipate in the program including criteria for certifying qualified
17 employees. Any regulations that the commissioner determines are neces-
18 sary may be adopted on an emergency basis notwithstanding anything to
19 the contrary in section two hundred two of the state administrative
20 procedure act. Such requirements may include the types of industries
21 that the employers are engaged in. The commissioner may give preference
22 to employers that are engaged in demand occupations or industries, or in
23 regional growth sectors, including those identified by the regional
24 economic development councils, such as clean energy, healthcare,
25 advanced manufacturing and conservation. In addition, the commissioner
26 shall give preference to employers who offer advancement and employee
27 benefit packages to the qualified individuals.
28 S 2. This act shall take effect immediately.
29 PART V
30 Section 1. Section 12 of part AA of chapter 57 of the laws of 2010
31 amending the administrative code of the city of New York relating to the
32 hotel room occupancy tax, is amended to read as follows:
33 S 12. This act shall take effect September 1, 2010 and shall apply in
34 accordance with the applicable transitional provisions of sections 1106
35 and 1217 of the tax law, EXCEPT THAT SECTIONS SIX, SEVEN, EIGHT, NINE,
36 TEN AND ELEVEN OF THIS ACT SHALL BE RETROACTIVE TO AND SHALL BE DEEMED
37 TO HAVE BEEN IN FULL FORCE AND EFFECT AS OF SEPTEMBER 1, 2009.
38 S 2. This act shall take effect immediately.
39 PART W
40 Section 1. Subdivision 12-G of section 210 of the tax law, as amended
41 by section 1-a of part A of chapter 63 of the laws of 2005 and paragraph
42 (f) as amended by section 2 of part A of chapter 57 of the laws of 2010,
43 is amended to read as follows:
44 12-G. Qualified emerging technology company facilities, operations and
45 training credit. (a) A taxpayer that is a qualified emerging technology
46 company pursuant to the provisions of [section thirty-one hundred two-e
47 (and specifically for the activities referenced in paragraph (b) of
48 subdivision one of such section thirty-one hundred two-e) of the public
A. 9059--C 64
1 authorities law, and that meets the eligibility requirements in] para-
2 graph (b) of this subdivision, AND WHOSE PRIMARY PRODUCTS AND SERVICES
3 ARE CLASSIFIED AS EMERGING TECHNOLOGIES PURSUANT TO THE PROVISIONS OF
4 PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF
5 THE PUBLIC AUTHORITIES LAW, shall be allowed a credit against the tax
6 imposed by this article. The amount of credit shall be equal to the sum
7 of the amounts specified in paragraphs (c), (d), and (e) of this subdi-
8 vision subject to the limitations in paragraph (f) of this subdivision.
9 (b) An eligible taxpayer shall (i) have no more than one hundred full-
10 time employees, of which at least seventy-five percent are employed in
11 New York state, (ii) have a ratio of research and development funds to
12 net sales, as referred to in section thirty-one hundred two-e of the
13 public authorities law, which equals or exceeds six percent during its
14 taxable year, [and] (iii) HAVE TOTAL ANNUAL PRODUCT SALES OF TEN MILLION
15 DOLLARS OR LESS, AND (IV) have gross revenues, along with the gross
16 revenues of its affiliates and related members, not exceeding twenty
17 million dollars for the taxable year immediately preceding the year the
18 taxpayer is allowed a credit under this subdivision. For purposes of
19 this paragraph, the term "related member" shall have the same meaning as
20 set forth in clauses (A) and (B) of subparagraph one of paragraph (o) of
21 subdivision nine of section two hundred eight of this article, and the
22 term "affiliates" shall mean those corporations that are members of the
23 same affiliated group (as defined in section fifteen hundred four of the
24 internal revenue code) as the taxpayer.
25 (c) An eligible taxpayer shall be allowed a credit for eighteen per
26 centum of the cost or other basis for federal income tax purposes of
27 research and development property as defined in paragraph (b) of subdi-
28 vision twelve of this section that is acquired by the taxpayer by
29 purchase as defined in section 179(d) of the internal revenue code and
30 placed in service during the taxable year. Provided, however, for the
31 purposes of this paragraph only, an eligible taxpayer shall be allowed a
32 credit for such percentage of the (i) cost or other basis for federal
33 income tax purposes for property used in the testing or inspection of
34 materials and products,
35 (ii) the costs or expenses associated with quality control of the
36 research and development,
37 (iii) fees for use of sophisticated technology facilities and proc-
38 esses,
39 (iv) fees for the production or eventual commercial distribution of
40 materials and products resulting from the activities of an eligible
41 taxpayer as long as such activities [fall under the activities listed in
42 paragraph (b) of subdivision one of section thirty-one hundred two-e of
43 the public authorities law] ARE DIRECTLY RELATED TO THE PRIMARY PRODUCTS
44 AND SERVICES OF THE TAXPAYER CLASSIFIED AS EMERGING TECHNOLOGIES PURSU-
45 ANT TO THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
46 THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW. The costs,
47 expenses and other amounts for which a credit is allowed and claimed
48 under this paragraph shall not be used in the calculation of any other
49 credit allowed under this article.
50 (d) An eligible taxpayer shall be allowed a credit for nine per centum
51 of "qualified research expenses" paid or incurred by the taxpayer in the
52 taxable year. "Qualified research expenses" shall mean expenses associ-
53 ated with in-house research and processes, and costs associated with the
54 dissemination of the results of the products that directly result from
55 such research and development activities; provided, however, that such
56 costs shall not include advertising or promotion through media. In addi-
A. 9059--C 65
1 tion, costs associated with the preparation of patent applications,
2 patent application filing fees, patent research fees, patent examina-
3 tions fees, patent post allowance fees, patent maintenance fees, and
4 grant application expenses and fees shall be eligible for such credit.
5 In no case shall the credit allowed under this paragraph apply to
6 expenses for litigation or the challenge of another entity's intellectu-
7 al property rights, or for contract expenses involving outside paid
8 consultants.
9 (e) An eligible taxpayer shall be allowed a credit for qualified high-
10 technology training expenditures as described in this paragraph paid or
11 incurred by the taxpayer. (i) The amount of credit shall be one hundred
12 percent of the training expenses described in subparagraph (iii) of this
13 paragraph, subject to a limitation of no more than four thousand dollars
14 per employee per year for such training expenses.
15 (ii) Qualified high-technology training shall include a course or
16 courses taken and satisfactorily completed by an employee of the taxpay-
17 er at an accredited, degree granting post-secondary college or universi-
18 ty in New York state that (A) directly relates to the [activities
19 referred to in paragraph (b) of subdivision one of section thirty-one
20 hundred two-e of the public authorities law] PRIMARY PRODUCTS AND
21 SERVICES OF THE TAXPAYER CLASSIFIED AS EMERGING TECHNOLOGIES PURSUANT TO
22 THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE
23 HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW, and
24 (B) is intended to upgrade, retrain or improve the productivity or
25 theoretical awareness of the employee. Such course or courses may
26 include, but are not limited to, instruction or research relating to
27 techniques, meta, macro, or micro-theoretical or practical knowledge
28 bases or frontiers, or ethical concerns related to such activities. Such
29 course or courses shall not include classes in the disciplines of
30 management, accounting or the law or any class designed to fulfill the
31 discipline specific requirements of a degree program at the associate,
32 baccalaureate, graduate or professional level of these disciplines.
33 Satisfactory completion of a course or courses shall mean the earning
34 and granting of credit or equivalent unit, with the attainment of a
35 grade of "B" or higher in a graduate level course or courses, a grade of
36 "C" or higher in an undergraduate level course or courses, or a similar
37 measure of competency for a course that is not measured according to a
38 standard grade formula.
39 (iii) Qualified high-technology training expenditures shall include
40 expenses for tuition and mandatory fees, software required by the insti-
41 tution, fees for textbooks or other literature required by the institu-
42 tion offering the course or courses, minus applicable scholarships and
43 tuition or fee waivers not granted by the taxpayer or any affiliates of
44 the taxpayer, that are paid or reimbursed by the taxpayer. Qualified
45 high-technology expenditures do not include room and board, computer
46 hardware or software not specifically assigned for such course or cours-
47 es, late-charges, fines or membership dues and similar expenses. Such
48 qualified expenditures shall not be eligible for the credit provided by
49 this section unless the employee for whom the expenditures are disbursed
50 is continuously employed by the taxpayer in a full-time, full-year posi-
51 tion primarily located at a qualified site during the period of such
52 coursework and lasting through at least one hundred eighty days after
53 the satisfactory completion of the qualifying course-work. Qualified
54 high-technology training expenditures shall not include expenses for
55 in-house or shared training outside of a New York state higher education
56 institution or the use of consultants outside of credit granting cours-
A. 9059--C 66
1 es, whether such consultants function inside of such higher education
2 institution or not.
3 (iv) If a taxpayer relocates from an academic business incubator
4 facility partnered with an accredited post-secondary education institu-
5 tion located within New York state, which provides space and business
6 support services to taxpayers, to another site, the credit provided in
7 this section shall be allowed for all expenditures referenced in subpar-
8 agraph (iii) of this paragraph paid or incurred in the two preceding
9 taxable years that the taxpayer was located in such an incubator facili-
10 ty for employees of the taxpayer who also relocate from said incubator
11 facility to such New York site and are employed and primarily located by
12 the taxpayer in New York. Such expenditures in the two preceding years
13 shall be added to the amounts otherwise qualifying for the credit
14 provided by this subdivision that were paid or incurred in the taxable
15 year that the taxpayer relocates from such a facility. Such expendi-
16 tures shall include expenses paid for an eligible employee who is a
17 full-time, full-year employee of said taxpayer during the taxable year
18 that the taxpayer relocated from an incubator facility notwithstanding
19 (i) that such employee was employed full or part-time as an officer,
20 staff-person or paid intern of the taxpayer when such taxpayer was
21 located at such incubator facility or (ii) that such employee was not
22 continuously employed when such taxpayer was located at the incubator
23 facility during the one hundred eighty day period referred to in subpar-
24 agraph (iii) of this paragraph, provided such employee received wages or
25 equivalent income for at least seven hundred fifty hours during any
26 twenty-four month period when the taxpayer was located at the incubator
27 facility. Such expenditures shall include payments made to such employee
28 after the taxpayer has relocated from the incubator facility for quali-
29 fied expenditures if such payments are made to reimburse an employee for
30 expenditures paid by the employee during such two preceding years. The
31 credit provided under this subparagraph shall be allowed in any taxable
32 year that the taxpayer qualifies as an eligible taxpayer.
33 (v) For purposes of this subdivision the term "academic year" shall
34 mean the annual period of sessions of a post-secondary college or
35 university.
36 (vi) For the purposes of this subdivision the term "academic incubator
37 facility" shall mean a facility providing low-cost space, technical
38 assistance, support services and educational opportunities, including
39 but not limited to central services provided by the manager of the
40 facility to the tenants of the facility, to an entity located in New
41 York state. Such entity's primary [activity] PRODUCTS AND SERVICES must
42 be [an activity described in] CLASSIFIED AS EMERGING TECHNOLOGIES PURSU-
43 ANT TO paragraph (b) of subdivision one of section thirty-one hundred
44 two-e of the public authorities law, and such entity must be in the
45 formative stage of development. The academic incubator facility and the
46 entity must act in partnership with an accredited post-secondary college
47 or university located in New York state. An academic incubator facili-
48 ty's mission shall be to promote job creation, entrepreneurship, tech-
49 nology transfer, and provide support services to incubator tenants,
50 including, but not limited to, business planning, management assistance,
51 financial-packaging, linkages to financing services, and coordinating
52 with other sources of assistance.
53 (f) An eligible taxpayer may claim credits under this subdivision for
54 four consecutive taxable years, except, if a taxpayer is located in an
55 academic incubator facility and relocates within New York state to a
56 nonacademic incubator site, then the taxpayer (i) may make a revocable
A. 9059--C 67
1 election to defer the credit provided under this subdivision to the
2 first taxable year beginning after the taxpayer relocates from an
3 academic incubator facility, and (ii) shall be eligible for such credit
4 for five consecutive taxable years. In no case shall the credit allowed
5 by this subdivision to a taxpayer exceed two hundred [and] fifty thou-
6 sand dollars per year. If the taxpayer is a partner in a partnership or
7 shareholder of a New York S corporation, then the limit imposed by the
8 preceding sentence shall be applied at the entity level, so that the
9 aggregate credit allowed to all the partners or shareholders of each
10 such entity in the taxable year does not exceed two hundred [and] fifty
11 thousand dollars.
12 (g) The credit allowed under this subdivision for any taxable year
13 shall not reduce the tax due for such year to less than the higher of
14 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
15 this section. However, if the amount of credit allowed under this subdi-
16 vision for any taxable year reduces the tax to such amount, any amount
17 of credit not deductible in such taxable year shall be treated as an
18 overpayment of tax to be credited or refunded in accordance with the
19 provisions of section ten hundred eighty-six of this chapter. Provided,
20 however, the provisions of subsection (c) of section ten hundred eight-
21 y-eight of this chapter notwithstanding, no interest shall be paid ther-
22 eon.
23 (h) The credit allowed under this subdivision shall not be applicable
24 for taxable years beginning on or after January first, two thousand
25 [twelve] SEVENTEEN.
26 S 2. Subsection (nn) of section 606 of the tax law, as amended by
27 section 1-a of part A of chapter 63 of the laws of 2005 and paragraph 6
28 as amended by section 3 of part A of chapter 57 of the laws of 2010, is
29 amended to read as follows:
30 (nn) Qualified emerging technology company facilities, operations and
31 training credit. (1) A taxpayer that is a qualified emerging technology
32 company pursuant to the provisions of [section thirty-one hundred two-e
33 (and specifically for the activities referenced in paragraph (b) of
34 subdivision one of such section thirty-one hundred two-e) of the public
35 authorities law, and that meets the eligibility requirements in] para-
36 graph two of this subsection, AND WHOSE PRIMARY PRODUCTS AND SERVICES
37 ARE CLASSIFIED AS EMERGING TECHNOLOGIES PURSUANT TO THE PROVISIONS OF
38 PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF
39 THE PUBLIC AUTHORITIES LAW, shall be allowed a credit against the tax
40 imposed by this article. The amount of credit shall be equal to the sum
41 (or pro rata share of the sum in the case of a partnership) of the
42 amounts specified in paragraphs three, four, and five of this
43 subsection, subject to the limitations in paragraph six of this
44 subsection.
45 (2) An eligible taxpayer shall (i) have no more than one hundred full-
46 time employees, of which at least seventy-five percent are employed in
47 New York state,
48 (ii) have a ratio of research and development funds to net sales, as
49 referred to in section thirty-one hundred two-e of the public authori-
50 ties law, which equals or exceeds six percent during its taxable year,
51 [and]
52 (iii) HAVE TOTAL ANNUAL PRODUCT SALES OF TEN MILLION DOLLARS OR LESS,
53 AND
54 (IV) have gross revenues, along with the gross revenues of its affil-
55 iates and related members, not exceeding twenty million dollars for the
56 taxable year immediately preceding the year the taxpayer is allowed a
A. 9059--C 68
1 credit under this subsection. For purposes of this paragraph, the term
2 "related member" shall have the same meaning as set forth in clauses (A)
3 and (B) of subparagraph one of paragraph (o) of subdivision 9 of section
4 two hundred eight of this chapter, and the term "affiliates" shall mean
5 those corporations that are members of the same affiliated group (as
6 defined in section fifteen hundred four of the internal revenue code) as
7 the taxpayer.
8 (3) An eligible taxpayer shall be allowed a credit for eighteen per
9 centum of the cost or other basis for federal income tax purposes of
10 research and development property as defined in subparagraph (B) of
11 paragraph two of subsection (a) of this section that is acquired by the
12 taxpayer by purchase as defined in section 179(d) of the internal reven-
13 ue code and is placed in service during the taxable year. Provided,
14 however, for the purposes of this paragraph only, an eligible taxpayer
15 shall be allowed a credit for such percentage of the (i) cost or other
16 basis for federal income purposes for property used in the testing or
17 inspection of materials and products,
18 (ii) the costs or expenses associated with quality control of the
19 research and development,
20 (iii) fees for use of sophisticated technology facilities and proc-
21 esses, and
22 (iv) fees for production or eventual commercial distribution of mate-
23 rials and products resulting from the activities of an eligible taxpayer
24 as long as such activities [fall under the activities listed in para-
25 graph (b) of subdivision one of section thirty-one hundred two-e of the
26 public authorities law] ARE DIRECTLY RELATED TO THE PRIMARY PRODUCTS AND
27 SERVICES OF THE TAXPAYER CLASSIFIED AS EMERGING TECHNOLOGIES PURSUANT TO
28 THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THREE
29 THOUSAND ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW. The costs,
30 expenses and other amounts for which a credit is allowed and claimed
31 under this paragraph shall not be used in the calculation of any other
32 credit allowed under this article.
33 (4) An eligible taxpayer shall be allowed a credit for nine percentum
34 of "qualified research expenses", paid or incurred by the taxpayer in
35 the taxable year. "Qualified research expenses" shall mean expenses
36 associated with in-house research, use of sophisticated technology
37 facilities and processes, and costs associated with the dissemination of
38 the results of the products that directly result from such research and
39 development activities; provided, however, that such costs shall not
40 include advertising or promotion through media. In addition, costs asso-
41 ciated with the preparation of patent applications, patent application
42 filing fees, patent research fees, patent examinations fees, patent post
43 allowance fees, patent maintenance fees, and grant application expenses
44 and fees shall be eligible for such credit. In no case shall the credit
45 allowed by this paragraph apply to expenses for litigation or the chal-
46 lenge of another entity's intellectual property rights, or for contract
47 expenses involving outside paid consultants.
48 (5) An eligible taxpayer shall be allowed a credit for qualified high-
49 technology training expenditures as described in this paragraph paid or
50 incurred by the taxpayer.
51 (a) The amount of credit shall be one hundred percent of the training
52 expenses described in subparagraph (c) of this paragraph, subject to a
53 limitation of no more than four thousand dollars per employee per year
54 for such training expenses.
55 (b) Qualified high-technology training shall include a course or
56 courses taken and satisfactorily completed by an employee of the taxpay-
A. 9059--C 69
1 er at an accredited, degree granting post-secondary college or universi-
2 ty in New York state that
3 (i) directly relates to the [activities referred to in paragraph (b)
4 of subdivision one of section thirty-one hundred two-e of the public
5 authorities law] PRIMARY PRODUCTS AND SERVICES OF THE TAXPAYER CLASSI-
6 FIED AS EMERGING TECHNOLOGIES PURSUANT TO THE PROVISIONS OF PARAGRAPH
7 (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC
8 AUTHORITIES LAW, and
9 (ii) is intended to upgrade, retrain or improve the productivity or
10 theoretical awareness of the employee. Such course or courses may
11 include, but are not limited to, instruction or research relating to
12 techniques, meta, macro, or micro-theoretical or practical knowledge
13 bases or frontiers, or ethical concerns related to such activities. Such
14 course or courses shall not include classes in the disciplines of
15 management, accounting or the law or any class designed to fulfill the
16 discipline specific requirements of a degree program at the associate,
17 baccalaureate, graduate or professional level of these disciplines.
18 Satisfactory completion of a course or courses shall mean the earning
19 and granting of credit or equivalent unit, with the attainment of a
20 grade of "B" or higher in a graduate level course or courses, a grade of
21 "C" or higher in an undergraduate level course or courses, or a similar
22 measure of competency for a course that is not measured according to a
23 standard grade formula.
24 (c) Qualified high-technology training expenditures shall include
25 expenses for tuition and mandatory fees, and software required by the
26 institution, fees for textbooks or other literature required by the
27 institution offering the course or courses, minus applicable scholar-
28 ships and tuition or fee waivers not granted by the taxpayer or any
29 affiliate of the taxpayer, paid or reimbursed by the taxpayer. Quali-
30 fied high technology expenditures do not include room and board, comput-
31 er hardware or software not specifically assigned for such course or
32 courses, late-charges, fines or membership dues and similar expenses.
33 Such qualified expenditures shall not be eligible for the credit allowed
34 by this subsection unless the employee for whom the expenditures are
35 disbursed is continuously employed by the taxpayer in a full-time, full-
36 year position primarily located at a qualified site during the period of
37 such coursework and lasting through at least one hundred [and] eighty
38 days after the satisfactory completion of the qualifying course-work.
39 Qualified high-technology training expenditures shall not include
40 expenses for in house or shared training outside of a New York state
41 higher education institution or the use of consultants outside of credit
42 granting courses whether such consultants function inside of such higher
43 education institution or not.
44 (d) If a taxpayer relocates from an academic business incubator facil-
45 ity partnered with an accredited post-secondary education institution
46 located within New York state, which provides space and business support
47 services to taxpayers, to another site, the credit provided in this
48 subsection shall be allowed for all expenditures referenced in subpara-
49 graph (c) of this paragraph paid or incurred in the two preceding taxa-
50 ble years that the taxpayer was located in such an incubator facility
51 for employees of the taxpayer who also relocate from said incubator
52 facility to such New York site and are employed and primarily located by
53 the taxpayer in New York. Such expenditures in the two preceding years
54 shall be added to the amounts otherwise qualifying for the credit
55 provided by this subsection that were paid or incurred in the taxable
56 year that the taxpayer relocated from such a facility. Such expenditures
A. 9059--C 70
1 shall include expenses paid or incurred for an eligible employee who is
2 a full-time, full-year employee of said taxpayer during the taxable year
3 that the taxpayer relocated from an incubator facility notwithstanding
4 (i) that such employee was employed full or part-time as an officer,
5 staff-person or paid intern of the taxpayer when such taxpayer was
6 located at such incubator facility or (ii) that such employee was not
7 continuously employed when such taxpayer was located at the incubator
8 facility during the one hundred eighty day period referenced in subpara-
9 graph (c) of this paragraph, provided such employee received wages or
10 equivalent income for at least seven hundred fifty hours during any
11 twenty-four month period when the taxpayer was located at the incubator
12 facility. Such expenditures shall include payments made to such an
13 employee after the taxpayer has relocated from the incubator facility
14 for qualified expenditures if such payments are made to reimburse such
15 an employee for qualified expenditures paid by the employee during such
16 two preceding years. The credit provided under this subparagraph shall
17 be allowed, in any year that said taxpayer qualifies as an eligible
18 taxpayer.
19 (e) For purposes of this subsection the term "academic year" shall
20 mean the annual period of sessions of a post-secondary college or
21 university.
22 (f) For the purposes of this subsection the term "academic incubator
23 facility" shall mean a facility providing low-cost space, technical
24 assistance, support services and educational opportunities, including
25 but not limited to central services provided by the manager of the
26 facility to the tenants of the facility, to an entity located in New
27 York state. Such entity's primary [activity] PRODUCTS AND SERVICES must
28 be [an activity described in] CLASSIFIED AS EMERGING TECHNOLOGIES PURSU-
29 ANT TO paragraph (b) of subdivision one of section thirty-one hundred
30 two-e of the public authorities law, and such entity must be in the
31 formative stage of development. The academic incubator facility and the
32 entity must act in partnership with an accredited post-secondary college
33 or university located in New York state. An academic incubator facili-
34 ty's mission shall be to promote job creation, entrepreneurship, tech-
35 nology transfer, and provide support services to incubator tenants,
36 including, but not limited to, business planning, management assistance,
37 financial-packaging, linkages to financing services, and coordinating
38 with other sources of assistance.
39 (6) An eligible taxpayer may claim credits under this subsection for
40 four consecutive taxable years, except, if a taxpayer is located in an
41 academic incubator facility and relocates within New York state to a
42 nonacademic incubator site, then the taxpayer (i) may make a revocable
43 election to defer the credit provided under this subsection to the first
44 taxable year beginning after the taxpayer relocates from an academic
45 incubator facility, and (ii) shall be eligible for such credit for five
46 consecutive years. In no case shall the credit allowed by this
47 subsection to a taxpayer exceed two hundred fifty thousand dollars per
48 year. If the taxpayer is a partner in a partnership or shareholder of a
49 New York S corporation, then the limit imposed by the preceding sentence
50 shall be applied at the entity level, so that the aggregate credit
51 allowed to all the partners or shareholders of each such entity in the
52 taxable year does not exceed two hundred fifty thousand dollars.
53 (7) If the amount of credit allowed under this subsection for any
54 taxable year shall exceed the taxpayer's tax for such year, the excess
55 shall be treated as an overpayment of tax to be credited or refunded in
A. 9059--C 71
1 accordance with the provisions of section six hundred eighty-six of this
2 article, provided, however, that no interest shall be paid thereon.
3 (8) The credit allowed under this subsection shall not be applicable
4 for taxable years beginning on or after January first, two thousand
5 [twelve] SEVENTEEN.
6 S 3. This act shall take effect immediately and shall apply to taxable
7 years beginning on or after January 1, 2012.
8 PART X
9 Section 1. Paragraphs 1 and 2 of subsection (m) of section 1452 of the
10 tax law, as amended by section 4 of part J of chapter 61 of the laws of
11 2011, are amended to read as follows:
12 (1) Notwithstanding anything to the contrary contained in this section
13 other than subsection (n) of this section, a corporation that was in
14 existence before January first, two thousand [eleven] TWELVE and was
15 subject to tax under article nine-A of this chapter for its last taxable
16 year beginning before January first, two thousand [eleven] TWELVE, shall
17 continue to be taxable under such article for all taxable years begin-
18 ning on or after January first, two thousand [eleven] TWELVE and before
19 January first, two thousand [thirteen] FIFTEEN. The preceding sentence
20 shall not apply to any taxable year during which such corporation is a
21 banking corporation described in paragraphs one through eight of
22 subsection (a) of this section. Notwithstanding anything to the contra-
23 ry contained in this section other than subsection (n) of this section,
24 a banking corporation or corporation that was in existence before Janu-
25 ary first, two thousand [eleven] TWELVE and was subject to tax under
26 this article for its last taxable year beginning before January first,
27 two thousand [eleven] TWELVE, shall continue to be taxable under this
28 article for all taxable years beginning on or after January first, two
29 thousand [eleven] TWELVE and before January first, two thousand [thir-
30 teen] FIFTEEN or in which the corporation satisfies the requirements for
31 a corporation to elect to be taxable under this article. Provided
32 further, that nothing in this subsection shall prohibit a corporation
33 that elected pursuant to subsection (d) of this section to be taxable
34 under article nine-A of this chapter from revoking that election in
35 accordance with such subsection (d).
36 For purposes of this paragraph, a corporation shall be considered to
37 be subject to tax under article nine-A of this chapter for a taxable
38 year if such corporation was not a taxpayer but was properly included in
39 a combined report filed pursuant to section two hundred eleven of this
40 chapter for such taxable year and a corporation shall be considered to
41 be subject to tax under this article for a taxable year if such corpo-
42 ration was not a taxpayer but was properly included in a combined return
43 filed pursuant to subsection (f) or (g) of section fourteen hundred
44 sixty-two of this article for such taxable year. A corporation that was
45 in existence before January first, two thousand [eleven] TWELVE but
46 first becomes a taxpayer in a taxable year beginning on or after January
47 first, two thousand [eleven] TWELVE and before January first, two thou-
48 sand [thirteen] FIFTEEN, shall be considered for purposes of this para-
49 graph to have been subject to tax under article nine-A of this chapter
50 for its last taxable year beginning before January first, two thousand
51 [eleven] TWELVE if such corporation would have been subject to tax under
52 such article for such taxable year if it had been a taxpayer during such
53 taxable year. A corporation that was in existence before January first,
54 two thousand [eleven] TWELVE but first becomes a taxpayer in a taxable
A. 9059--C 72
1 year beginning on or after January first, two thousand [eleven] TWELVE
2 and before January first, two thousand [thirteen] FIFTEEN, shall be
3 considered for purposes of this paragraph to have been subject to tax
4 under this article for its last taxable year beginning before January
5 first, two thousand [eleven] TWELVE if such corporation would have been
6 subject to tax under this article for such taxable year if it had been a
7 taxpayer during such taxable year.
8 (2) Notwithstanding anything to the contrary contained in this section
9 other than subsection (n) of this section, a corporation formed on or
10 after January first, two thousand [eleven] TWELVE and before January
11 first, two thousand [thirteen] FIFTEEN may elect to be subject to tax
12 under this article or under article nine-A of this chapter for its first
13 taxable year beginning on or after January first, two thousand [eleven]
14 TWELVE and before January first, two thousand [thirteen] FIFTEEN in
15 which either (i) sixty-five percent or more of its voting stock is owned
16 or controlled, directly or indirectly by a financial holding company,
17 provided the corporation whose voting stock is so owned or controlled is
18 principally engaged in activities that are described in section 4(k)(4)
19 or 4(k)(5) of the federal bank holding company act of nineteen hundred
20 fifty-six, as amended and the regulations promulgated pursuant to the
21 authority of such section, or (ii) it is a financial subsidiary. An
22 election under this paragraph may not be made by a corporation described
23 in paragraphs one through eight of subsection (a) of this section or in
24 subsection (e) of this section. In addition, an election under this
25 paragraph may not be made by a corporation that is a party to a reorgan-
26 ization, as defined in subsection (a) of section 368 of the internal
27 revenue code of 1986, as amended, of a corporation described in para-
28 graph one of this subsection if both corporations were sixty-five
29 percent or more owned or controlled, directly or indirectly, by the same
30 interests at the time of the reorganization.
31 An election under this paragraph must be made by the taxpayer on or
32 before the due date for filing its return (determined with regard to
33 extensions of time for filing) for the applicable taxable year. The
34 election to be taxed under article nine-A of this chapter shall be made
35 by the taxpayer by filing the report required pursuant to section two
36 hundred eleven of this chapter and the election to be taxed under this
37 article shall be made by the taxpayer by filing the return required
38 pursuant to section fourteen hundred sixty-two of this article. Any
39 election made pursuant to this paragraph shall be irrevocable and shall
40 apply to each subsequent taxable year beginning on or after January
41 first, two thousand [eleven] TWELVE and before January first, two thou-
42 sand [thirteen] FIFTEEN, provided that the stock ownership and activ-
43 ities requirements described in subparagraph (i) of this paragraph are
44 met or such corporation described in subparagraph (ii) of this paragraph
45 continues as a financial subsidiary.
46 S 2. Subparagraph (iv) of paragraph 2 of subsection (f) of section
47 1462 of the tax law, as amended by section 6 of part J of chapter 61 of
48 the laws of 2011, is amended to read as follows:
49 (iv) (A) Notwithstanding any provision of this paragraph, any bank
50 holding company exercising its corporate franchise or doing business in
51 the state may make a return on a combined basis without seeking the
52 permission of the commissioner with any banking corporation exercising
53 its corporate franchise or doing business in the state in a corporate or
54 organized capacity sixty-five percent or more of whose voting stock is
55 owned or controlled, directly or indirectly, by such bank holding compa-
56 ny, for the first taxable year beginning on or after January first, two
A. 9059--C 73
1 thousand and before January first, two thousand [thirteen] FIFTEEN
2 during which such bank holding company registers for the first time
3 under the federal bank holding company act, as amended, and also elects
4 to be a financial holding company. In addition, for each subsequent
5 taxable year beginning after January first, two thousand and before
6 January first, two thousand [thirteen] FIFTEEN, any such bank holding
7 company may file on a combined basis without seeking the permission of
8 the commissioner with any banking corporation that is exercising its
9 corporate franchise or doing business in the state and sixty-five
10 percent or more of whose voting stock is owned or controlled, directly
11 or indirectly, by such bank holding company if either such banking
12 corporation is exercising its corporate franchise or doing business in
13 the state in a corporate or organized capacity for the first time during
14 such subsequent taxable year, or sixty-five percent or more of the
15 voting stock of such banking corporation is owned or controlled, direct-
16 ly or indirectly, by such bank holding company for the first time during
17 such subsequent taxable year. Provided however, for each subsequent
18 taxable year beginning after January first, two thousand and before
19 January first, two thousand [thirteen] FIFTEEN, a banking corporation
20 described in either of the two preceding sentences which filed on a
21 combined basis with any such bank holding company in a previous taxable
22 year, must continue to file on a combined basis with such bank holding
23 company if such banking corporation, during such subsequent taxable
24 year, continues to exercise its corporate franchise or do business in
25 the state in a corporate or organized capacity and sixty-five percent or
26 more of such banking corporation's voting stock continues to be owned or
27 controlled, directly or indirectly, by such bank holding company, unless
28 the permission of the commissioner has been obtained to file on a sepa-
29 rate basis for such subsequent taxable year. Provided further, however,
30 for each subsequent taxable year beginning after January first, two
31 thousand and before January first, two thousand [thirteen] FIFTEEN, a
32 banking corporation described in either of the first two sentences of
33 this clause which did not file on a combined basis with any such bank
34 holding company in a previous taxable year, may not file on a combined
35 basis with such bank holding company during any such subsequent taxable
36 year unless the permission of the commissioner has been obtained to file
37 on a combined basis for such subsequent taxable year.
38 (B) Notwithstanding any provision of this paragraph other than clause
39 (A) of this subparagraph, the commissioner may not require a bank hold-
40 ing company which, during a taxable year beginning on or after January
41 first, two thousand and before January first, two thousand [thirteen]
42 FIFTEEN, registers for the first time during such taxable year under the
43 federal bank holding company act, as amended, and also elects to be a
44 financial holding company, to make a return on a combined basis for any
45 taxable year beginning on or after January first, two thousand and
46 before January first, two thousand [thirteen] FIFTEEN with a banking
47 corporation sixty-five percent or more of whose voting stock is owned or
48 controlled, directly or indirectly, by such bank holding company.
49 S 3. Paragraphs 1 and 2 of subdivision (l) of section 11-640 of the
50 administrative code of the city of New York, as amended by section 5 of
51 part J of chapter 61 of the laws of 2011, are amended to read as
52 follows:
53 (1) Notwithstanding anything to the contrary contained in this section
54 other than subdivision (m) of this section, a corporation that was in
55 existence before January first, two thousand [eleven] TWELVE and was
56 subject to tax under subchapter two of this chapter for its last taxable
A. 9059--C 74
1 year beginning before January first, two thousand [eleven] TWELVE, shall
2 continue to be taxable under such subchapter for all taxable years
3 beginning on or after January first, two thousand [eleven] TWELVE and
4 before January first, two thousand [thirteen] FIFTEEN. The preceding
5 sentence shall not apply to any taxable year during which such corpo-
6 ration is a banking corporation described in paragraphs one through
7 eight of subdivision (a) of this section. Notwithstanding anything to
8 the contrary contained in this section other than subdivision (m) of
9 this section, a banking corporation or corporation that was in existence
10 before January first, two thousand [eleven] TWELVE and was subject to
11 tax under this subchapter for its last taxable year beginning before
12 January first, two thousand [eleven] TWELVE, shall continue to be taxa-
13 ble under this subchapter for all taxable years beginning on or after
14 January first, two thousand [eleven] TWELVE and before January first,
15 two thousand [thirteen] FIFTEEN or in which the corporation satisfies
16 the requirements for a corporation to elect to be taxable under this
17 subchapter. Provided further, that nothing in this subdivision shall
18 prohibit a corporation that elected pursuant to subdivision (d) of this
19 section to be taxable under subchapter two of this chapter from revoking
20 that election in accordance with subdivision (d) of this section. For
21 purposes of this paragraph, a corporation shall be considered to be
22 subject to tax under subchapter two of this chapter for a taxable year
23 if such corporation was not a taxpayer but was properly included in a
24 combined report filed pursuant to subdivision four of section 11-605 of
25 this chapter for such taxable year and a corporation shall be considered
26 to be subject to tax under this subchapter for a taxable year if such
27 corporation was not a taxpayer but was properly included in a combined
28 report filed pursuant to subdivision (f) or (g) of section 11-646 of
29 this part for such taxable year. A corporation that was in existence
30 before January first, two thousand [eleven] TWELVE but first becomes a
31 taxpayer in a taxable year beginning on or after January first, two
32 thousand [eleven] TWELVE and before January first, two thousand [thir-
33 teen] FIFTEEN, shall be considered for purposes of this paragraph to
34 have been subject to tax under subchapter two of this chapter for its
35 last taxable year beginning before January first, two thousand [eleven]
36 TWELVE if such corporation would have been subject to tax under such
37 subchapter for such taxable year if it had been a taxpayer during such
38 taxable year. A corporation that was in existence before January first,
39 two thousand [eleven] TWELVE but first becomes a taxpayer in a taxable
40 year beginning on or after January first, two thousand [eleven] TWELVE
41 and before January first, two thousand [thirteen] FIFTEEN, shall be
42 considered for purposes of this paragraph to have been subject to tax
43 under this subchapter for its last taxable year beginning before January
44 first, two thousand [eleven] TWELVE if such corporation would have been
45 subject to tax under this subchapter for such taxable year if it had
46 been a taxpayer during such taxable year.
47 (2) Notwithstanding anything to the contrary contained in this section
48 other than subdivision (m) of this section, a corporation formed on or
49 after January first, two thousand [eleven] TWELVE and before January
50 first, two thousand [thirteen] FIFTEEN may elect to be subject to tax
51 under this subchapter or under subchapter two of this chapter for its
52 first taxable year beginning on or after January first, two thousand
53 [eleven] TWELVE and before January first, two thousand [thirteen]
54 FIFTEEN in which either (i) sixty-five percent or more of its voting
55 stock is owned or controlled, directly or indirectly by a financial
56 holding company, provided the corporation whose voting stock is so owned
A. 9059--C 75
1 or controlled is principally engaged in activities that are described in
2 section 4(k)(4) or 4(k)(5) of the federal bank holding company act of
3 nineteen hundred fifty-six, as amended and the regulations promulgated
4 pursuant to the authority of such section or (ii) it is a financial
5 subsidiary. An election under this paragraph may not be made by a corpo-
6 ration described in paragraphs one through eight of subdivision (a) of
7 this section or in subdivision (e) of this section. In addition, an
8 election under this paragraph may not be made by a corporation that is a
9 party to a reorganization, as defined in subsection (a) of section 368
10 of the internal revenue code of 1986, as amended, of a corporation
11 described in paragraph one of this subdivision if both corporations were
12 sixty-five percent or more owned or controlled, directly or indirectly
13 by the same interests at the time of the reorganization.
14 An election under this paragraph must be made by the taxpayer on or
15 before the due date for filing its return (determined with regard to
16 extensions of time for filing) for the applicable taxable year. The
17 election to be taxed under subchapter two of this chapter shall be made
18 by the taxpayer by filing the return required pursuant to subdivision
19 one of section 11-605 of this chapter and the election to be taxed under
20 this subchapter shall be made by the taxpayer by filing the return
21 required pursuant to subdivision (a) of section 11-646 of this part. Any
22 election made pursuant to this paragraph shall be irrevocable and shall
23 apply to each subsequent taxable year beginning on or after January
24 first, two thousand [eleven] TWELVE and before January first, two thou-
25 sand [thirteen] fifteen, provided that the stock ownership and activ-
26 ities requirements described in subparagraph (i) of this paragraph are
27 met or such corporation described in subparagraph (ii) of this paragraph
28 continues as a financial subsidiary.
29 S 4. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
30 11-646 of the administrative code of the city of New York, as amended by
31 section 7 of part J of chapter 61 of the laws of 2011, is amended to
32 read as follows:
33 (iv) (A) Notwithstanding any provision of this paragraph, any bank
34 holding company exercising its corporate franchise or doing business in
35 the city may make a return on a combined basis without seeking the
36 permission of the commissioner with any banking corporation exercising
37 its corporate franchise or doing business in the city in a corporate or
38 organized capacity sixty-five percent or more of whose voting stock is
39 owned or controlled, directly or indirectly, by such bank holding compa-
40 ny, for the first taxable year beginning on or after January first, two
41 thousand and before January first, two thousand [thirteen] FIFTEEN
42 during which such bank holding company registers for the first time
43 under the federal bank holding company act, as amended, and also elects
44 to be a financial holding company. In addition, for each subsequent
45 taxable year beginning after January first, two thousand and before
46 January first, two thousand [thirteen] FIFTEEN, any such bank holding
47 company may file on a combined basis without seeking the permission of
48 the commissioner with any banking corporation that is exercising its
49 corporate franchise or doing business in the city and sixty-five percent
50 or more of whose voting stock is owned or controlled, directly or indi-
51 rectly, by such bank holding company if either such banking corporation
52 is exercising its corporate franchise or doing business in the city in a
53 corporate or organized capacity for the first time during such subse-
54 quent taxable year, or sixty-five percent or more of the voting stock of
55 such banking corporation is owned or controlled, directly or indirectly,
56 by such bank holding company for the first time during such subsequent
A. 9059--C 76
1 taxable year. Provided however, for each subsequent taxable year begin-
2 ning after January first, two thousand and before January first, two
3 thousand [thirteen] FIFTEEN, a banking corporation described in either
4 of the two preceding sentences which filed on a combined basis with any
5 such bank holding company in a previous taxable year, must continue to
6 file on a combined basis with such bank holding company if such banking
7 corporation, during such subsequent taxable year, continues to exercise
8 its corporate franchise or do business in the city in a corporate or
9 organized capacity and sixty-five percent or more of such banking corpo-
10 ration's voting stock continues to be owned or controlled, directly or
11 indirectly, by such bank holding company, unless the permission of the
12 commissioner has been obtained to file on a separate basis for such
13 subsequent taxable year. Provided further, however, for each subsequent
14 taxable year beginning after January first, two thousand and before
15 January first, two thousand [thirteen] FIFTEEN, a banking corporation
16 described in either of the first two sentences of this clause which did
17 not file on a combined basis with any such bank holding company in a
18 previous taxable year, may not file on a combined basis with such bank
19 holding company during any such subsequent taxable year unless the
20 permission of the commissioner has been obtained to file on a combined
21 basis for such subsequent taxable year.
22 (B) Notwithstanding any provision of this paragraph other than clause
23 (A) of this subparagraph, the commissioner may not require a bank hold-
24 ing company which, during a taxable year beginning on or after January
25 first, two thousand and before January first, two thousand [thirteen]
26 FIFTEEN, registers for the first time during such taxable year under the
27 federal bank holding company act, as amended, and also elects to be a
28 financial holding company, to make a return on a combined basis for any
29 taxable year beginning on or after January first, two thousand and
30 before January first, two thousand [thirteen] FIFTEEN with a banking
31 corporation sixty-five percent or more of whose voting stock is owned or
32 controlled, directly or indirectly, by such bank holding company.
33 S 5. This act shall take effect immediately.
34 PART Y
35 Section 1. Subparagraph (A) of paragraph 1 of subdivision a of section
36 1612 of the tax law, as amended by chapter 147 of the laws of 2010, is
37 amended to read as follows:
38 (A) such game shall be available only on premises occupied by licensed
39 lottery sales agents, subject to the following provisions:
40 (i) [if the licensee holds a license issued pursuant to the alcoholic
41 beverage control law to sell alcoholic beverages for consumption on the
42 premises, then not less than twenty-five percent of the gross sales must
43 result from sales of food;
44 (ii)] if the licensee does not hold a license issued pursuant to the
45 alcoholic beverage control law to sell alcoholic beverages for consump-
46 tion on the premises, then the premises must have a minimum square
47 footage greater than two thousand five hundred square feet;
48 [(iii)] (II) notwithstanding the foregoing provisions, television
49 equipment that automatically displays the results of such drawings may
50 be installed and used without regard to [the percentage of food sales
51 or] the square footage if such premises are used as:
52 (I) a commercial bowling establishment, or
53 (II) a facility authorized under the racing, pari-mutuel wagering and
54 breeding law to accept pari-mutuel wagers;
A. 9059--C 77
1 S 2. This act shall take effect immediately.
2 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
3 sion, section or part of this act shall be adjudged by any court of
4 competent jurisdiction to be invalid, such judgment shall not affect,
5 impair, or invalidate the remainder thereof, but shall be confined in
6 its operation to the clause, sentence, paragraph, subdivision, section
7 or part thereof directly involved in the controversy in which such judg-
8 ment shall have been rendered. It is hereby declared to be the intent of
9 the legislature that this act would have been enacted even if such
10 invalid provisions had not been included herein.
11 S 3. This act shall take effect immediately provided, however, that
12 the applicable effective date of Parts A through Y of this act shall be
13 as specifically set forth in the last section of such Parts.
