Bill Text: NY A09509 | 2017-2018 | 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 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain 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; establishes the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; increases the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-30 - substituted by s7509c [A09509 Detail]
Download: New_York-2017-A09509-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain 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; establishes the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; increases the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-30 - substituted by s7509c [A09509 Detail]
Download: New_York-2017-A09509-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9509--B IN ASSEMBLY January 18, 2018 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT intentionally omitted (Part A); to amend the real property tax law, in relation to making the STAR income verification program manda- tory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of para- graph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufactured housing park owners (Part D); to amend the general munic- ipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); intentionally omitted (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); intentionally omitted (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comp- troller information regarding unwarranted fixed and final debt (Part K); intentionally omitted (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); inten- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-05-8A. 9509--B 2 tionally omitted (Part N); to amend the tax law and the administrative code of the city of New York, in relation to the definition of resi- dent for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); intentionally omitted (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance; and to amend the tax law, in relation to marketplace providers (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); intentionally omitted (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee (Subpart A); and to amend the racing, pari-mutuel wagering and breeding law, in relation to the creation of a local advisory board for the Belmont racetrack facility (Subpart B) (Part EE); intentionally omitted (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simul- cast, 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-mu- tuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); intentionally omitted (Part HH); to amend the tax law, in relation to commissions paid to the operator of a video lottery facil-A. 9509--B 3 ity; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administrative code of the city of New York, in relation to addressing changes made to the inter- nal revenue code by Public Law 115-97 (Part JJ); to amend the tax law, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code; and to amend the administrative code of the city of New York, in relation to the taxation of business corporations (Part KK); to amend the education law and the general municipal law, in relation to authorizing school districts, counties and New York city to establish charitable funds; and to amend the real property tax law, in relation to authorizing such localities to provide a credit against real property taxes for such contributions (Part LL); to amend the tax law and the state finance law, in relation to the imposition of an employer compensation expense tax (Part MM); to amend the tax law, in relation to income tax reform (Part NN); to amend the tax law, in relation to freezing the property tax relief credit for taxable years 2018 and 2019 (Part OO); to amend the public housing law, in relation to the transfer of the low-income housing credit (Part PP); to amend the tax law, the state finance law and the public authorities law, in relation to implementing a transit sustain- ability improvement surcharge on transportation services and transpor- tation network companies (Part QQ); to amend the tax law, the state finance law and the public authorities law, in relation to imposing an additional transfer tax on conveyances for consideration of five million dollars or more (Part RR); to amend the tax law, in relation to extending certain tax rates (Part SS); to amend the tax law, in relation to extending certain property rehabilitation credits (Part TT); to amend the administrative code of the city of New York and the public authorities law, in relation to a tax on the transfer of certain real property within three years of the prior transfer of such property (Part UU); to amend the tax law, in relation to the amount of credit for cider, wine, and liquor under the alcoholic beverage production credit (Part VV); to amend the tax law, in relation to business tax surcharges on certain corporations and providers of certain services (Part WW); to amend the tax law and the administra- tive code of the city of New York, in relation to extending the high income charitable contribution deduction limitation (Part XX); to amend the tax law, in relation to imposing a tax on taxicab trips and HAIL vehicle trips that enter, originate, terminate or originate and terminate in the transit sustainability improvement zone (Part YY); to amend the tax law, in relation to the enforcement of delinquent tax liabilities by means of the suspension of licenses to operate a motor vehicle (Part ZZ); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part AAA); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Inquiry Compensation Fund, Inc. (Part BBB); to amend the public housing law, in relation to the authority of certain munici- palities to enact a tax on tobacco products other than cigarettes and on vapor products; and to amend the public housing law, in relation to the authority of the city of New York to impose a tax on tobacco products other than cigarettes and on vapor products (Part CCC); to amend the tax law, in relation to establishing a personal income tax credit for preceptor clinicians who provide preceptor instruction; and providing for the repeal of such provisions upon the expiration there-A. 9509--B 4 of (Part DDD); and to amend the tax law, in relation to providing insurance corporations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund (Part EEE) 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 2018-2019 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through EEE. The effective date for each partic- 5 ular provision contained within such Part is set forth in the last 6 section of such Part. Any provision in any section contained within a 7 Part, including the effective date of the Part, which makes a reference 8 to a section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Intentionally Omitted 14 PART B 15 Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of 16 section 425 of the real property tax law, as amended by section 3 of 17 part E of chapter 83 of the laws of 2002, is amended to read as follows: 18 (ii) The term "income" as used herein shall mean the "adjusted gross 19 income" for federal income tax purposes as reported on the applicant's 20 federal or state income tax return for the applicable income tax year, 21 subject to any subsequent amendments or revisions, reduced by distrib- 22 utions, to the extent included in federal adjusted gross income, 23 received from an individual retirement account and an individual retire- 24 ment annuity; provided that if no such return was filed for the applica- 25 ble income tax year, "income" shall mean the adjusted gross income that 26 would have been so reported if such a return had been filed. Provided 27 further, that effective with exemption applications for final assessment 28 rolls to be completed in two thousand nineteen, where an income-eligi- 29 bility determination is wholly or partly based upon the income of one or 30 more individuals who did not file a return for the applicable income tax 31 year, then in order for the application to be considered complete, each 32 such individual must file a statement with the department showing the 33 source or sources of his or her income for that income tax year, and the 34 amount or amounts thereof, that would have been reported on such a 35 return if one had been filed. Such statement shall be filed at such 36 time, and in such form and manner, as may be prescribed by the depart- 37 ment, and shall be subject to the secrecy provisions of the tax law to 38 the same extent that a personal income tax return would be. The depart- 39 ment shall make such forms and instructions available for the filing of 40 such statements. The local assessor shall upon the request of a taxpayer 41 assist such taxpayer in the filing of the statement with the department.A. 9509--B 5 1 § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 2 425 of the real property tax law, as amended by chapter 451 of the laws 3 of 2015, is amended to read as follows: 4 (iv) (A) Effective with applications for the enhanced exemption on 5 final assessment rolls to be completed in two thousand [three] nineteen, 6 the application form shall indicate that [the] all owners of the proper- 7 ty and any owners' spouses residing on the premises [may authorize the8assessor to] must have their income eligibility verified annually [ther-9eafter] by the [state] department [of taxation and finance, in lieu of10furnishing copies of the applicable income tax return or returns with11the application. If the owners of the property and any owners' spouses12residing on the premises elect to participate in this program, which13shall be known as the STAR income verification program, they] and must 14 furnish their taxpayer identification numbers in order to facilitate 15 matching with records of the department. [Thereafter, their] The income 16 eligibility of such persons shall be verified annually by the 17 department, and the assessor shall not request income documentation from 18 them[, unless such department advises the assessor that they do not19satisfy the applicable income eligibility requirements, or that it is20unable to determine whether they satisfy those requirements]. All appli- 21 cants for the enhanced exemption and all assessing units shall be 22 required to participate in this program, which shall be known as the 23 STAR income verification program. 24 (B) Where the commissioner finds that the enhanced exemption should be 25 replaced with a basic exemption because the income limitation applicable 26 to the enhanced exemption has been exceeded, he or she shall provide the 27 property owners with notice and an opportunity to submit to the commis- 28 sioner evidence to the contrary. Where the commissioner finds that the 29 enhanced exemption should be removed or denied without being replaced 30 with a basic exemption because the income limitation applicable to the 31 basic exemption has also been exceeded, he or she shall provide the 32 property owners with notice and an opportunity to submit to the commis- 33 sioner evidence to the contrary. In either case, if the owners fail to 34 respond to such notice within forty-five days from the mailing thereof, 35 or if their response does not show to the commissioner's satisfaction 36 that the property is eligible for the exemption claimed, the commission- 37 er shall direct the assessor or other person having custody or control 38 of the assessment roll or tax roll to either replace the enhanced 39 exemption with a basic exemption, or to remove or deny the enhanced 40 exemption without replacing it with a basic exemption, as appropriate. 41 The commissioner shall further direct such person to correct the roll 42 accordingly. Such a directive shall be binding upon the assessor or 43 other person having custody or control of the assessment roll or tax 44 roll, and shall be implemented by such person without the need for 45 further documentation or approval. 46 (C) Notwithstanding any provision of law to the contrary, neither an 47 assessor nor a board of assessment review has the authority to consider 48 an objection to the replacement or removal or denial of an exemption 49 pursuant to this subdivision, nor may such an action be reviewed in a 50 proceeding to review an assessment pursuant to title one or one-A of 51 article seven of this chapter. Such an action may only be challenged 52 before the department. If a taxpayer is dissatisfied with the depart- 53 ment's final determination, the taxpayer may appeal that determination 54 to the state board of real property tax services in a form and manner to 55 be prescribed by the commissioner. Such appeal shall be filed within 56 forty-five days from the issuance of the department's final determi-A. 9509--B 6 1 nation. If dissatisfied with the state board's determination, the 2 taxpayer may seek judicial review thereof pursuant to article seventy- 3 eight of the civil practice law and rules. The taxpayer shall otherwise 4 have no right to challenge such final determination in a court action, 5 administrative proceeding or any other form of legal recourse against 6 the commissioner, the department, the state board of real property tax 7 services, the assessor or other person having custody or control of the 8 assessment roll or tax roll regarding such action. 9 § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of 10 section 425 of the real property tax law are REPEALED. 11 § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the 12 real property tax law are REPEALED. 13 § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- 14 ty tax law, as amended by section 5 of part E of chapter 83 of the laws 15 of 2002 and subparagraph (i) as further amended by subdivision (b) of 16 section 1 of part W of chapter 56 of the laws of 2010, is amended to 17 read as follows: 18 (d) Third party notice. (i) A senior citizen eligible for the enhanced 19 exemption may request that a notice be sent to an adult third party. 20 Such request shall be made on a form prescribed by the commissioner and 21 shall be submitted to the assessor of the assessing unit in which the 22 eligible taxpayer resides no later than sixty days before the first 23 taxable status date to which it is to apply. Such form shall provide a 24 section whereby the designated third party shall consent to such desig- 25 nation. Such request shall be effective upon receipt by the assessor. 26 The assessor shall maintain a list of all eligible property owners who 27 have requested notices pursuant to this paragraph and shall furnish a 28 copy of such list to the department upon request. 29 (ii) [In the case of a senior citizen who has not elected to partic-30ipate in the STAR income verification program, a notice shall be sent to31the designated third party at least thirty days prior to each ensuing32taxable status date; provided that no such notice need be sent in the33first year if the request was not received by the assessor at least34sixty days before the applicable taxable status date. Such notice shall35read substantially as follows:36"On behalf of (identify senior citizen or citizens), you are advised37that his, her, or their renewal application for the enhanced STAR38exemption must be filed with the assessor no later than (enter date).39You are encouraged to remind him, her, or them of that fact, and to40offer assistance if needed, although you are under no legal obligation41to do so. Your cooperation and assistance are greatly appreciated."42(iii) In the case of a senior citizen who has elected to participate43in the STAR income verification program, a] A notice shall be sent to 44 the designated third party whenever the assessor or department sends a 45 notice to the senior citizen regarding the possible removal of the 46 enhanced STAR exemption. When the exemption is subject to removal 47 because the commissioner has determined that the income eligibility 48 requirement is not satisfied, such notice shall be sent to the third 49 party by the department. When the exemption is subject to removal 50 because the assessor has determined that any other eligibility require- 51 ment is not satisfied, such notice shall be sent to the third party by 52 the assessor. Such notice shall read substantially as follows: 53 "On behalf of (identify senior citizen or citizens), you are advised 54 that his, her, or their enhanced STAR exemption is at risk of being 55 removed. You are encouraged to make sure that he, she or they are aware 56 of that fact, and to offer assistance if needed, although you are underA. 9509--B 7 1 no legal obligation to do so. Your cooperation and assistance are great- 2 ly appreciated." 3 [(iv)] (iii) The obligation to mail such notices shall cease if the 4 eligible taxpayer cancels the request or ceases to qualify for the 5 enhanced STAR exemption. 6 § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- 7 ty tax law is REPEALED. 8 § 7. Subdivision 9-b of section 425 of the real property tax law, as 9 added by section 8 of part E of chapter 83 of the laws of 2002 and para- 10 graph (b) as amended by chapter 742 of the laws of 2005 and further 11 amended by subdivision (b) of section 1 of part W of chapter 56 of the 12 laws of 2010, is amended to read as follows: 13 9-b. Duration of exemption; enhanced exemption. (a) [In the case of14persons who have elected to participate in the STAR income verification15program, the] The enhanced exemption, once granted, shall remain in 16 effect until discontinued in the manner provided in this section. 17 (b) [In the case of persons who have not elected to participate in the18STAR income verification program, the enhanced exemption shall apply for19a term of one year. To continue receiving such enhanced exemption, a20renewal application must be filed annually with the assessor on or21before the applicable taxable status date on a form prescribed by the22commissioner. Provided, however, that if a renewal application is not so23filed, the assessor shall discontinue the enhanced exemption but shall24grant the basic exemption, subject to the provisions of subdivision25eleven of this section.26(c) Whether or not the recipients of an enhanced STAR exemption have27elected to participate in the STAR income verification program, the] The 28 assessor [may review their] shall review the continued compliance of 29 recipients of the enhanced exemption with the applicable ownership and 30 residency requirements to the same extent as if they were receiving a 31 basic STAR exemption. 32 [(d) Notwithstanding the foregoing provisions of this subdivision, the33enhanced exemption shall be continued without a renewal application as34long as the property continues to be eligible for the senior citizens35exemption authorized by section four hundred sixty-seven of this title.] 36 § 8. Section 425 of the real property tax law is amended by adding a 37 new subdivision 14-a to read as follows: 38 14-a. Implementation of certain eligibility determinations. When a 39 taxpayer's eligibility for exemption under this section for a school 40 year is affected by a determination made in accordance with subparagraph 41 (iv) of paragraph (b) of subdivision four of this section or paragraph 42 (c) or (d) of subdivision fourteen of this section, and the determi- 43 nation is made after the school district taxes for that school year have 44 been levied, the provisions of this subdivision shall be applicable. 45 (a) If the determination restores or increases the taxpayer's 46 exemption for that school year, the commissioner is authorized to remit 47 the excess directly to the property owner upon receiving confirmation 48 that the taxpayer's original school tax bill has been paid in full. The 49 amounts payable by the commissioner under this paragraph shall be paid 50 from the account established for the payment of STAR benefits to late 51 registrants pursuant to subparagraph (iii) of paragraph (a) of subdivi- 52 sion fourteen of this section. When the commissioner implements the 53 determination in this manner, he or she shall so notify the assessor and 54 county director of real property tax services, but no correction shall 55 be made to the assessment roll or tax roll for that school year, and no 56 refund shall be issued by the school authorities to the property ownerA. 9509--B 8 1 or his or her agent for the excessive amount of school taxes paid for 2 that school year. 3 (b) If the determination removes, denies or decreases the taxpayer's 4 exemption for that school year, the commissioner is authorized to 5 collect the shortfall directly from the owners of the property, together 6 with interest, by utilizing any of the procedures for collection, levy, 7 and lien of personal income tax set forth in article twenty-two of the 8 tax law, and any other relevant procedures referenced within the 9 provisions of such article. When the commissioner implements the deter- 10 mination in this manner, he or she shall so notify the assessor and 11 county director of real property tax services, but no correction shall 12 be made to the assessment roll or tax roll for that school year, and no 13 corrected school tax bill shall be sent to the taxpayer for that school 14 year. 15 § 9. Section 171-o of the tax law is REPEALED. 16 § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 17 606 of the tax law, as amended by section 8 of part A of chapter 73 of 18 the laws of 2016, is amended to read as follows: 19 (B) "Affiliated income" shall mean for purposes of the basic STAR 20 credit, the combined income of all of the owners of the parcel who 21 resided primarily thereon as of December thirty-first of the taxable 22 year, and of any owners' spouses residing primarily thereon as of such 23 date, and for purposes of the enhanced STAR credit, the combined income 24 of all of the owners of the parcel as of December thirty-first of the 25 taxable year, and of any owners' spouses residing primarily thereon as 26 of such date; provided that for both purposes the income to be so 27 combined shall be the "adjusted gross income" for the taxable year as 28 reported for federal income tax purposes, or that would be reported as 29 adjusted gross income if a federal income tax return were required to be 30 filed, reduced by distributions, to the extent included in federal 31 adjusted gross income, received from an individual retirement account 32 and an individual retirement annuity. For taxable years beginning on and 33 after January first, two thousand nineteen, where an income-eligibility 34 determination is wholly or partly based upon the income of one or more 35 individuals who did not file a return pursuant to section six hundred 36 fifty-one of this article for the applicable income tax year, then in 37 order to be eligible for the credit authorized by this subsection, each 38 such individual must file a statement with the department showing the 39 source or sources of his or her income for that income tax year, and the 40 amount or amounts thereof, that would have been reported on such a 41 return if one had been filed. Such statement shall be filed at such 42 time, and in such form and manner, as may be prescribed by the depart- 43 ment, and shall be subject to the provisions of section six hundred 44 ninety-seven of this article to the same extent that a return would be. 45 The department shall make such forms and instructions available for the 46 filing of such statements. The local assessor shall upon the request of 47 a taxpayer assist such taxpayer in the filing of the statement with the 48 department. Provided further, that if the qualified taxpayer was an 49 owner of the property during the taxable year but did not own it on 50 December thirty-first of the taxable year, then the determination as to 51 whether the income of an individual should be included in "affiliated 52 income" shall be based upon the ownership and/or residency status of 53 that individual as of the first day of the month during which the quali- 54 fied taxpayer ceased to be an owner of the property, rather than as of 55 December thirty-first of the taxable year.A. 9509--B 9 1 § 11. No application for an enhanced exemption on a final assessment 2 roll to be completed in 2019 may be approved if the applicants have not 3 enrolled in the STAR income verification program established by subpara- 4 graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real 5 property tax law, as amended by section two of this act, regardless of 6 when the application was filed. The assessor shall notify such appli- 7 cants that participation in that program has become mandatory for all 8 applicants and that their applications cannot be approved unless they 9 enroll therein. The commissioner of taxation and finance shall provide 10 a form for assessors to use, at their option, when making this notifica- 11 tion. 12 § 12. This act shall take effect immediately. 13 PART C 14 Section 1. Subdivision 1-e of section 333 of the real property law is 15 amended by adding two new paragraphs ix and x to read as follows: 16 ix. Whenever there has been a transfer or acquisition of a share or 17 shares in a cooperative housing corporation, and such share or shares 18 come with a right to occupy a unit or apartment located in property 19 owned by such corporation, a transfer report must be filed by the trans- 20 feree or transferees directly with the department of taxation and 21 finance, regardless of whether a deed is prepared, delivered or 22 recorded, as set forth in this paragraph. The fee imposed by subdivision 23 three of this section shall not apply to transfer reports filed directly 24 with the department of taxation and finance pursuant to this paragraph. 25 Such report shall be in a form prescribed by the commissioner of taxa- 26 tion and finance, must contain the information required to be included 27 by this subdivision, and in addition, must specify the number of shares 28 being transferred or acquired. When a real estate transfer tax return is 29 filed with such commissioner pursuant to section fourteen hundred nine 30 of the tax law in relation to such property, the report required by this 31 paragraph shall be filed concurrently therewith, but in no event shall 32 the report required by this paragraph be deemed to be a part of such 33 real estate transfer tax return. 34 x. Whenever there has been a transfer or acquisition of a controlling 35 interest in an entity with an interest in real property, a transfer 36 report must be filed by the transferee or transferees directly with the 37 department of taxation and finance, regardless of whether a deed is 38 prepared, delivered or recorded, as set forth in this paragraph. The fee 39 imposed by subdivision three of this section shall not apply to transfer 40 reports filed directly with the department of taxation and finance 41 pursuant to this paragraph. Such report shall be in a form prescribed by 42 the commissioner of taxation and finance, must contain the information 43 required to be included by this subdivision, and in addition, must spec- 44 ify the percentage of the ownership interest being transferred or 45 acquired. The transfer report shall indicate the percentage of the tran- 46 saction that is exempt from the real estate transfer tax as a mere 47 change in identity or form of ownership or organization where there is 48 no change in beneficial ownership pursuant to paragraph six of subdivi- 49 sion (b) of section fourteen hundred five of the tax law, if any. When 50 a real estate transfer tax return is filed with such commissioner pursu- 51 ant to section fourteen hundred nine of the tax law in relation to such 52 property, the report required by this paragraph shall be filed concur- 53 rently therewith, but in no event shall the report required by this 54 paragraph be deemed to be a part of such real estate transfer taxA. 9509--B 10 1 return. For purposes of this paragraph, the terms "controlling interest" 2 and "interest in real property" shall have the same meaning as set forth 3 in section fourteen hundred one of the tax law, provided, however, that 4 the term "interest in real property" shall be limited to interests in 5 real property subject to real property tax assessment such as lands, 6 buildings, structures, and other improvements, and shall not include 7 development rights, air space, or air rights. 8 § 2. This act shall take effect January 1, 2019 and shall apply to 9 transfers and acquisitions occurring on and after such date. 10 PART D 11 Section 1. Subdivision v of section 233 of the real property law, as 12 amended by chapter 566 of the laws of 1996, is amended to read as 13 follows: 14 v. 1. On and after April first, nineteen hundred eighty-nine, the 15 commissioner of housing and community renewal shall have the power and 16 duty to enforce and ensure compliance with the provisions of this 17 section. However, the commissioner shall not have the power or duty to 18 enforce manufactured home park rules and regulations established under 19 subdivision f of this section. 20 2. On or before January first, nineteen hundred eighty-nine, each 21 manufactured home park owner or operator shall file a registration 22 statement with the commissioner and shall thereafter file an annual 23 registration statement on or before January first of each succeeding 24 year. The commissioner, by regulation, shall provide that such registra- 25 tion statement shall include only the names of all persons owning an 26 interest in the park, the names of all tenants of the park, all services 27 provided by the park owner to the tenants, and a copy of all current 28 manufactured home park rules and regulations. Commencing April first, 29 two thousand eighteen and on a filing date set by the commissioner, each 30 manufactured home park owner or operator shall also annually file a 31 supplemental registration statement with the commissioner providing the 32 names and addresses of all persons owning a mobile home or manufactured 33 home and leasing a lot within the park. The commissioner shall provide 34 the commissioner of taxation and finance with a copy of each registra- 35 tion statement and supplemental registration statement to be used by the 36 department for the purposes of determining eligibility and administering 37 the school tax relief (STAR) exemption program authorized by section 38 four hundred twenty-five of the real property tax law and the school tax 39 relief (STAR) credit authorized by subsection (eee) of section six 40 hundred six of the tax law. 41 3. Whenever there shall be a violation of this section, an application 42 may be made by the commissioner of housing and community renewal in the 43 name of the people of the state of New York to a court or justice having 44 jurisdiction by a special proceeding to issue an injunction, and upon 45 notice to the defendant of not less than five days, to enjoin and 46 restrain the continuance of such violation; and if it shall appear to 47 the satisfaction of the court or justice that the defendant has, in 48 fact, violated this section, an injunction may be issued by such court 49 or justice, enjoining and restraining any further violation and with 50 respect to this subdivision, directing the filing of a registration 51 statement. In any such proceeding, the court may make allowances to the 52 commissioner of housing and community renewal of a sum not exceeding two 53 thousand dollars against each defendant, and direct restitution. When- 54 ever the court shall determine that a violation of this section hasA. 9509--B 11 1 occurred, the court may impose a civil penalty of not more than one 2 thousand five hundred dollars for each violation. Such penalty shall be 3 deposited in the manufactured home cooperative fund, created pursuant to 4 section fifty-nine-h of the private housing finance law. In connection 5 with any such proposed application, the commissioner of housing and 6 community renewal is authorized to take proof and make a determination 7 of the relevant facts and to issue subpoenas in accordance with the 8 civil practice law and rules. The provisions of this subdivision shall 9 not impair the rights granted under subdivision u of this section. 10 § 2. This act shall take effect immediately. 11 PART E 12 Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. 13 § 1-a. Section 3-d of the general municipal law is REPEALED. 14 § 1-b. Section 2023-b of the education law is REPEALED. 15 § 2. The general municipal law is amended by adding a new section 3-d 16 to read as follows: 17 § 3-d. Certification of compliance with tax levy limit. 1. Upon the 18 adoption of the budget of a local government unit, the chief executive 19 officer or budget officer of such local government unit shall certify to 20 the state comptroller and the commissioner of taxation and finance that 21 the budget so adopted does not exceed the tax levy limit prescribed in 22 section three-c of this article and, if the governing body of the local 23 government unit did enact a local law or approve a resolution to over- 24 ride the tax levy limit, that such local law or resolution was subse- 25 quently repealed. Such certification shall be made in a form and manner 26 prescribed by the state comptroller in consultation with the commission- 27 er of taxation and finance. 28 2. Notwithstanding any other law to the contrary, if such a certif- 29 ication has been made and the actual tax levy of the local government 30 unit exceeds the applicable tax levy limit, the excess amount shall be 31 placed in reserve and used in the manner prescribed by subdivision six 32 of section three-c of this article, even if a tax levy in excess of the 33 tax levy limit had been authorized for the applicable fiscal year by a 34 duly adopted local law or resolution. 35 3. Notwithstanding any provision of law to the contrary, every local 36 government unit shall report both its proposed budget and its adopted 37 budget to the office of the state comptroller at the time and in the 38 manner as he or she may prescribe, whether or not such budget has been 39 or will be certified as provided by this subdivision. 40 § 3. The education law is amended by adding a new section 2023-b to 41 read as follows: 42 § 2023-b. Certification of compliance with tax levy limit. 1. Upon 43 the adoption of the budget of an eligible school district, the chief 44 executive officer of such school district shall certify to the state 45 comptroller, the commissioner of taxation and finance and the commis- 46 sioner that the budget so adopted does not exceed the tax levy limit 47 prescribed by section two thousand twenty-three-a of this part. Such 48 certification shall be made in a form and manner prescribed by the state 49 comptroller in consultation with the commissioner of taxation and 50 finance and the commissioner. 51 2. If such a certification has been made and the actual tax levy of 52 the school district exceeds the applicable tax levy limit, the excess 53 amount shall be placed in reserve and used in the manner prescribed by 54 subdivision five of section two thousand twenty-three-a of this part,A. 9509--B 12 1 even if a tax levy in excess of the tax levy limit had been duly author- 2 ized for the applicable fiscal year by the school district voters. 3 3. Notwithstanding any provision of law to the contrary, every school 4 district that is subject to the provisions of section two thousand twen- 5 ty-three-a of this part shall report both its proposed budget and its 6 adopted budget to the office of the state comptroller and the commis- 7 sioner at the time and in the manner as they may prescribe, whether or 8 not such budget has been or will be certified as provided by this subdi- 9 vision. 10 § 4. Subdivision 3 of section 97-rrr of the state finance law, as 11 amended by section 1 of part F of chapter 59 of the laws of 2015, is 12 amended to read as follows: 13 3. The monies in such fund shall be appropriated for school property 14 tax exemptions granted pursuant to the real property tax law and payable 15 pursuant to section thirty-six hundred nine-e of the education law[, and16for payments to the city of New York pursuant to section fifty-four-f of17this chapter]. 18 § 5. Section 925-b of the real property tax law, as amended by chapter 19 161 of the laws of 2006, is amended to read as follows: 20 § 925-b. Extension; certain persons sixty-five years of age or over. 21 Notwithstanding any contrary provision of this chapter, or any general, 22 special or local law, code or charter, the governing body of a municipal 23 corporation other than a county may, by resolution adopted prior to the 24 levy of any taxes on real property located within such municipal corpo- 25 ration, authorize an extension of no more than five business days for 26 the payment of taxes without interest or penalty to any resident of such 27 municipal corporation who has received an exemption pursuant to subdivi- 28 sion four of section four hundred twenty-five or four hundred sixty-sev- 29 en of this chapter, or a credit pursuant to subsection (eee) of section 30 six hundred six of the tax law, related to a principal residence located 31 within such municipal corporation. If such an extension is granted, and 32 any taxes are not paid by the final date so provided, those taxes shall 33 be subject to the same interest and penalties that would have applied if 34 no extension had been granted. 35 § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- 36 erty tax law is relettered paragraph (f) and two new paragraphs (d) and 37 (e) are added to read as follows: 38 (d) If the taxes of a city, town, village or school district are 39 collected by a county official, the county shall have the sole authority 40 to establish a partial payment program pursuant to this section with 41 respect to the taxes so collected. 42 (e) If the taxes of a city, town, village or school district are not 43 collected by a county official, but its tax bills are prepared by the 44 county, or its tax collection accounting software is provided by the 45 county, then before the city, town, village or school district may 46 implement a partial payment program pursuant to this section, it must 47 obtain written approval of the chief executive officer of the county or 48 the county director of real property tax services. 49 § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 50 606 of the tax law, as amended by section 1 of part G of chapter 59 of 51 the laws of 2017, is amended to read as follows: 52 (B) Notwithstanding any provision of law to the contrary, the names 53 and addresses of individuals who have applied for or are receiving the 54 credit authorized by this subsection may be disclosed to assessors 55 [and], county directors of real property tax services, and municipal tax 56 collecting officers. In addition, where an agreement is in place betweenA. 9509--B 13 1 the commissioner and the head of the tax department of another state, 2 such information may be disclosed to such official or his or her desig- 3 nees. Such information shall be considered confidential and shall not be 4 subject to further disclosure pursuant to the freedom of information law 5 or otherwise. 6 § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- 7 erty tax law, as added by section 1 of part B of chapter 389 of the laws 8 of 1997 and as further amended by subdivision (b) of section 1 of part W 9 of chapter 56 of the laws of 2010, is amended to read as follows: 10 (g) Computation and certification by commissioner. It shall be the 11 responsibility of the commissioner to compute the exempt amount for each 12 assessing unit in each county in the manner provided herein, and to 13 certify the same to the assessor of each assessing unit and to the coun- 14 ty director of real property tax services of each county. Such certif- 15 ication shall be made at least twenty days before the last date 16 prescribed by law for the filing of the tentative assessment roll. 17 Provided, however, that where school taxes are levied on a prior year 18 assessment roll, or on a final assessment roll that was filed more than 19 one year after the tentative roll was filed, such certification shall be 20 made no later than fifteen days after the publication of the data needed 21 to compute the base figure for the enhanced STAR exemption pursuant to 22 clause (A) of subparagraph (vi) of paragraph (b) of this subdivision, 23 and provided further, that upon receipt of such certification, the 24 assessor shall thereupon be authorized and directed to correct the 25 assessment roll to reflect the exempt amount so certified, or, if anoth- 26 er person has custody or control of the assessment roll, to direct that 27 person to make the appropriate corrections. 28 § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is 29 amended by adding a new subparagraph (A) to read as follows: 30 (A) A married couple may not receive a credit pursuant to this 31 subsection on more than one residence during any given taxable year, 32 unless living apart due to legal separation. Nor may a married couple 33 receive a credit pursuant to this subsection on one residence while 34 receiving an exemption pursuant to section four hundred twenty-five of 35 the real property tax law on another residence, unless living apart due 36 to legal separation. 37 § 9. This act shall take effect immediately; provided, however, that 38 sections one, one-a, one-b, two and three of this act shall take effect 39 April 15, 2020; provided further, however, that section 3-d of the 40 general municipal law, as added by section two of this act, shall expire 41 and be deemed repealed on the same date and in the same manner as 42 section 1 of part A of chapter 97 of the laws of 2011, expires and is 43 deemed repealed, and provided that section 2023-b of the education law, 44 as added by section three of this act, shall expire and be deemed 45 repealed on the same date and in the same manner as section 2 of part A 46 of chapter 97 of the laws of 2011, expires and is deemed repealed, and 47 provided further that the amendments to paragraph 6 of subsection (eee) 48 of section 606 of the tax law made by section eight of this act shall 49 take effect immediately and shall apply to taxable years beginning on or 50 after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reportingA. 9509--B 14 provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. 1 PART F 2 Intentionally Omitted 3 PART G 4 Section 1. Section 4 of chapter 475 of the laws of 2013, amending the 5 real property tax law relating to assessment ceilings for local public 6 utility mass real property, is amended to read as follows: 7 § 4. This act shall take effect on the first of January of the second 8 calendar year commencing after this act shall have become a law and 9 shall apply to assessment rolls with taxable status dates on or after 10 such date; provided, however, that this act shall expire and be deemed 11 repealed [four] eight years after such effective date; and provided, 12 further, that no assessment of local public utility mass real property 13 appearing on the municipal assessment roll with a taxable status date 14 occurring in the first calendar year after this act shall have become a 15 law shall be less than ninety percent or more than one hundred ten 16 percent of the assessment of the same property on the date this act 17 shall have become a law. 18 § 2. Subdivision 3 of section 499-kkkk of the real property tax law, 19 as added by chapter 475 of the laws of 2013, is amended to read as 20 follows: 21 3. (a) For assessment rolls with taxable status dates in each of the 22 three calendar years including and following the year in which this 23 section shall take effect, the commissioner shall establish no assess- 24 ment ceiling that is less than ninety percent or more than one hundred 25 ten percent of the assessment of such local public utility mass real 26 property appearing on the municipal assessment roll with a taxable 27 status date occurring in the second preceding calendar year from when 28 this section shall take effect, except that the commissioner may estab- 29 lish assessment ceilings below the ninety percent level or above the one 30 hundred ten percent level to take into account any change in level of 31 assessment and/or to take into account any additions or retirements to 32 public utility mass real property or litigation affecting the value or 33 taxable status of the local public utility mass real property initiated 34 prior to the effective date of this section. 35 (b) For assessment rolls with taxable status dates in the years two 36 thousand eighteen, two thousand nineteen and two thousand twenty, the 37 commissioner shall establish no assessment ceiling that is below the 38 lower limit or above the upper limit specified in this paragraph, except 39 that the commissioner may establish assessment ceilings below such lower 40 limit or above such upper limit to take into account any change in level 41 of assessment and/or to take into account any additions or retirements 42 to public utility mass real property or litigation affecting the value 43 or taxable status of the local public utility mass real property initi- 44 ated prior to the effective date of this section. 45 (i) For assessment rolls with taxable status dates in two thousand 46 eighteen, the assessment ceiling shall not be less than seventy-five 47 percent or more than one hundred twenty-five percent of the assessment 48 of such local public utility mass real property appearing on the munici-A. 9509--B 15 1 pal assessment roll with a taxable status date occurring in the year two 2 thousand thirteen. 3 (ii) For assessment rolls with taxable status dates in two thousand 4 nineteen, the assessment ceiling shall not be less than fifty percent or 5 more than one hundred fifty percent of the assessment of such local 6 public utility mass real property appearing on the municipal assessment 7 roll with a taxable status date occurring in the year two thousand thir- 8 teen. 9 (iii) For assessment rolls with taxable status dates in two thousand 10 twenty, the assessment ceiling shall not be less than twenty-five 11 percent or more than one hundred seventy-five percent of the assessment 12 of such local public utility mass real property appearing on the munici- 13 pal assessment roll with a taxable status date occurring in the year two 14 thousand thirteen. 15 § 3. This act shall take effect immediately, provided, however, that 16 the amendments to subdivision 3 of section 499-kkkk of the real property 17 tax law made by section two of this act shall not affect the repeal of 18 such section and shall be deemed to be repealed therewith. 19 PART H 20 Intentionally Omitted 21 PART I 22 Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax 23 law, as amended by chapter 166 of the laws of 1991, is amended to read 24 as follows: 25 (1) The commissioner of taxation and finance may prescribe regulations 26 and instructions requiring returns of information to be made and filed 27 on or before February twenty-eighth of each year as to the payment or 28 crediting in any calendar year of amounts of six hundred dollars or more 29 to any taxpayer under this article. Such returns may be required of any 30 person, including lessees or mortgagors of real or personal property, 31 fiduciaries, employers, and all officers and employees of this state, or 32 of any municipal corporation or political subdivision of this state, 33 having the control, receipt, custody, disposal or payment of interest, 34 rents, salaries, wages, premiums, annuities, compensations, remunera- 35 tions, emoluments or other fixed or determinable gains, profits or 36 income, except interest coupons payable to bearer. Information required 37 to be furnished pursuant to paragraph four of subsection (a) of section 38 six hundred seventy-four on a quarterly combined withholding and wage 39 reporting return covering [the last] each calendar quarter of each year 40 and relating to tax withheld on wages paid by an employer to an employee 41 for [the full] each calendar [year] quarter, shall constitute the return 42 of information required to be made under this section with respect to 43 such wages. 44 § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 45 of the tax law, as amended by section 1 of subpart E of part VI of chap- 46 ter 57 of the laws of 2009, is amended to read as follows: 47 (A) All employers described in paragraph one of subsection (a) of 48 section six hundred seventy-one of this part, including those whose 49 wages paid are not sufficient to require the withholding of tax from the 50 wages of any of their employees, all employers required to provide the 51 wage reporting information for the employees described in subdivision 52 one of section one hundred seventy-one-a of this chapter, and allA. 9509--B 16 1 employers liable for unemployment insurance contributions or for 2 payments in lieu of such contributions pursuant to article eighteen of 3 the labor law, shall file a quarterly combined withholding, wage report- 4 ing and unemployment insurance return detailing the preceding calendar 5 quarter's withholding tax transactions, such quarter's wage reporting 6 information, such quarter's withholding reconciliation information, such 7 quarter's unemployment insurance contributions, and such other related 8 information as the commissioner of taxation and finance or the commis- 9 sioner of labor, as applicable, may prescribe. [In addition, the return10covering the last calendar quarter of each year shall also include with-11holding reconciliation information for such calendar year.] Such returns 12 shall be filed no later than the last day of the month following the 13 last day of each calendar quarter. 14 § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as 15 amended by chapter 477 of the laws of 1998, is amended to read as 16 follows: 17 (3) Failure to provide complete and correct employee withholding 18 reconciliation information. In the case of a failure by an employer to 19 provide complete and correct [annual] quarterly withholding information 20 relating to individual employees on a quarterly combined withholding, 21 wage reporting and unemployment insurance return covering [the last] 22 each calendar quarter of a year, such employer shall, unless it is shown 23 that such failure is due to reasonable cause and not due to willful 24 neglect, pay a penalty equal to the product of fifty dollars multiplied 25 by the number of employees for whom such information is incomplete or 26 incorrect; provided, however, that if the number of such employees 27 cannot be determined from the quarterly combined withholding, wage 28 reporting and unemployment insurance return, the commissioner may 29 utilize any information in the commissioner's possession in making such 30 determination. The total amount of the penalty imposed pursuant to this 31 paragraph on an employer for any such failure for [the last] each calen- 32 dar quarter of a year shall not exceed ten thousand dollars. 33 § 4. This act shall take effect immediately and shall apply to calen- 34 dar quarters beginning on or after January 1, 2019. 35 PART J 36 Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax 37 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as 38 amended by section 1 of part DD of chapter 407 of the laws of 1999, is 39 amended to read as follows: 40 (i) The receipts from every sale, other than sales for resale, of 41 beer, wine or other alcoholic beverages or any other drink of any 42 nature, or from every sale, other than sales for resale, of food and 43 drink of any nature or of food alone, when sold in or by restaurants, 44 taverns or other establishments in this state, or by caterers, including 45 in the amount of such receipts any cover, minimum, entertainment or 46 other charge made to patrons or customers (except those receipts taxed 47 pursuant to subdivision (f) of this section): 48 (1) in all instances where the sale is for consumption on the premises 49 where sold; 50 (2) in those instances where the vendor or any person whose services 51 are arranged for by the vendor, after the delivery of the food or drink 52 by or on behalf of the vendor for consumption off the premises of the 53 vendor, serves or assists in serving, cooks, heats or provides other 54 services with respect to the food or drink; andA. 9509--B 17 1 (3) in those instances where the sale is made through a vending 2 machine that is activated by use of coin, currency, credit card or debit 3 card (except the sale of drinks in a heated state made through such a 4 vending machine) or is for consumption off the premises of the vendor, 5 except where food (other than sandwiches) or drink or both are (A) sold 6 in an unheated state and, (B) are of a type commonly sold for consump- 7 tion off the premises and in the same form and condition, quantities and 8 packaging, in establishments which are food stores other than those 9 principally engaged in selling foods prepared and ready to be eaten. 10 § 2. This act shall take effect June 1, 2018 and shall apply to sales 11 made on and after such date. 12 PART K 13 Section 1. The tax law is amended by adding a new section 171-z to 14 read as follows: 15 § 171-z. Information sharing with the comptroller regarding unclaimed 16 funds. 1. Notwithstanding any other law, the commissioner is authorized 17 to release to the comptroller information regarding fixed and final 18 unwarranted debts of taxpayers for purposes of collecting unclaimed 19 funds from the comptroller to satisfy fixed and final unwarranted debts 20 owed by taxpayers. For purposes of this section, the term "unwarranted 21 debt" shall mean past-due tax liabilities, including unpaid tax, inter- 22 est and penalty, that the commissioner is required by law to collect and 23 that have become fixed and final such that the taxpayer no longer has 24 any right to administrative or judicial review and a warrant has not 25 been filed; and the term "taxpayer" shall mean any individual, corpo- 26 ration, partnership, limited liability partnership or company, partner, 27 member, manager, sole proprietorship, estate, trust, fiduciary or enti- 28 ty, who or which has been identified as owing taxes to the state. This 29 section shall not be deemed to abrogate or limit in any way the powers 30 and authority of the comptroller to set off debts owed the state from 31 unclaimed funds, under the constitution of the state or any other law. 32 2. The comptroller shall keep all information he or she obtains from 33 the commissioner confidential, and any employee, agent or representative 34 of the comptroller is prohibited from disclosing any taxpayer informa- 35 tion received under this section to anyone other than the commissioner 36 or staff of the department or staff of the department of audit and 37 control for the purposes described in this section. 38 § 2. This act shall take effect immediately. 39 PART L 40 Intentionally Omitted 41 PART M 42 Section 1. The tax law is amended by adding a new section 44 to read 43 as follows: 44 § 44. Investment management services. (a) For purposes of this 45 section, the term "investment management services" to a partnership, S 46 corporation or entity includes (1) rendering investment advice regarding 47 the purchase or sale of securities as defined in paragraph two of 48 subsection (c) of section four hundred seventy-five of the internal 49 revenue code without regard to the last sentence thereof, real estate 50 held for rental or investment, interests in partnerships, commodities asA. 9509--B 18 1 defined in paragraph two of subsection (e) of section four hundred 2 seventy-five of the internal revenue code, or options or derivative 3 contracts with respect to any of the foregoing; (2) managing, acquiring, 4 or disposing of any such asset; (3) arranging financing with respect to 5 the acquisition of any such asset; and (4) related activities in support 6 of any service described in paragraphs one, two, or three of this subdi- 7 vision. 8 (b) Special rule for partnerships and S corporations. Notwithstanding 9 any state or federal law to the contrary: 10 (1) where a partner performs investment management services for the 11 partnership, the partner will not be treated as a partner for purposes 12 of this chapter with respect to the amount of the partner's distributive 13 share of income, gain, loss and deduction, including any guaranteed 14 payments, that is in excess of the amount such distributive share would 15 have been if the partner had performed no investment management services 16 for the partnership. Instead, such excess amount shall be treated for 17 purposes of article nine-A of this chapter as a business receipt for 18 services and for purposes of article twenty-two of this chapter as 19 income attributable to a trade, business, profession or occupation. 20 Provided, however, the amount of the distributive share that would have 21 been determined if the partner performed no investment management 22 services shall not be less than zero. 23 (2) where a shareholder performs investment management services for 24 the S corporation, the shareholder will not be treated as a shareholder 25 for purposes of this chapter with respect to the amount of the share- 26 holder's pro rata share of income, gain, loss and deduction that is in 27 excess of the amount such pro rata share would have been if the share- 28 holder had performed no investment management services. Instead, such 29 excess amount shall be treated for purposes of article twenty-two of 30 this chapter as income attributable to a trade, business, profession or 31 occupation. Provided, however, the amount of the pro rata share that 32 would have been determined if the shareholder performed no services 33 shall not be less than zero. 34 (3) A partner or shareholder will not be deemed to be providing 35 investment management services under this section if at least eighty 36 percent of the average fair market value of the assets of the partner- 37 ship or S corporation during the taxable year consist of real estate 38 held for rental or investment. 39 (c) In addition to any other taxes or surcharges imposed pursuant to 40 article nine-A or twenty-two of this chapter, any corporation, partner 41 or shareholder providing investment management services shall be subject 42 to an additional tax, referred to as the "carried interest fairness 43 fee". Such carried interest fairness fee shall be equal to seventeen 44 percent of the excess amount determined pursuant to subdivision (b) of 45 this section; provided, however, (i) in the case of a corporation or 46 shareholder of an S corporation providing such investment management 47 services, such fee shall be equal to seventeen percent of the excess 48 amount apportioned to the state by applying the corporation's or S 49 corporation's apportionment factor determined under section two hundred 50 ten-A of this chapter; (ii) in the case of a nonresident partner provid- 51 ing such investment management services, such fee shall be equal to 52 seventeen percent of the excess amount derived from New York sources as 53 determined under section six hundred thirty-two of this chapter. Such 54 carried interest fairness fee shall be administered in accordance with 55 article nine-A or twenty-two of this chapter, as applicable, until such 56 time as the commissioner of taxation and finance has notified the legis-A. 9509--B 19 1 lative bill drafting commission that federal legislation has been 2 enacted that treats the provision of investment management services for 3 federal tax purposes substantially the same as provided in this section. 4 § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as 5 amended by section 5 of part T of chapter 59 of the laws of 2015, is 6 amended to read as follows: 7 (a) (i) The term "investment income" means income, including capital 8 gains in excess of capital losses, from investment capital, to the 9 extent included in computing entire net income, less, (A) in the 10 discretion of the commissioner, any interest deductions allowable in 11 computing entire net income which are directly or indirectly attribut- 12 able to investment capital or investment income, and (B) any net capital 13 gain included in federal taxable income that must be recharacterized as 14 a business receipt pursuant to section forty-four of this chapter; 15 provided, however, that in no case shall investment income exceed entire 16 net income. (ii) If the amount of interest deductions subtracted under 17 subparagraph (i) of this paragraph exceeds investment income, the excess 18 of such amount over investment income must be added back to entire net 19 income. (iii) If the taxpayer's investment income determined without 20 regard to the interest deductions subtracted under subparagraph (i) of 21 this paragraph comprises more than eight percent of the taxpayer's 22 entire net income, investment income determined without regard to such 23 interest deductions cannot exceed eight percent of the taxpayer's entire 24 net income. 25 § 3. Subsection (b) of section 617 of the tax law, as amended by chap- 26 ter 606 of the laws of 1984, is amended to read as follows: 27 (b) Character of items. [Each] Except as provided in section forty- 28 four of this chapter, each item of partnership and S corporation income, 29 gain, loss, or deduction shall have the same character for a partner or 30 shareholder under this article as for federal income tax purposes. Where 31 an item is not characterized for federal income tax purposes, it shall 32 have the same character for a partner or shareholder as if realized 33 directly from the source from which realized by the partnership or S 34 corporation or incurred in the same manner as incurred by the partner- 35 ship or S corporation. 36 § 4. Subsection (d) of section 631 of the tax law, as amended by chap- 37 ter 28 of the laws of 1987, is amended to read as follows: 38 (d) Purchase and sale for own account.-- A nonresident, other than a 39 dealer holding property primarily for sale to customers in the ordinary 40 course of his or her trade or business or a partner or shareholder 41 performing investment management services as described in section 42 forty-four of this chapter, shall not be deemed to carry on a business, 43 trade, profession or occupation in this state solely by reason of the 44 purchase and sale of property or the purchase, sale or writing of stock 45 option contracts, or both, for his own account. 46 § 5. The opening paragraph of subsection (b) of section 632 of the tax 47 law, as amended by chapter 28 of the laws of 1987, is amended to read as 48 follows: 49 [In] Except as otherwise provided in section forty-four of this chap- 50 ter, in determining the sources of a nonresident partner's income, no 51 effect shall be given to a provision in the partnership agreement 52 which-- 53 § 6. For taxable years beginning on or after January 1, 2018 and 54 before January 1, 2019, (i) no addition to tax under subsection (c) of 55 section 685 or subsection (c) of section 1085 of the tax law shall be 56 imposed with respect to any underpayment attributable to the amendmentsA. 9509--B 20 1 made by this act of any estimated taxes that are required to be paid 2 prior to the effective date of this act, provided that the taxpayer 3 timely made those payments; and (ii) the required installment of esti- 4 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of 5 subsection (c) of section 685 of the tax law, and the exception to addi- 6 tion for underpayment of estimated tax described in paragraph 1 or 2 of 7 subsection (d) of section 1085 of the tax law, in relation to the 8 preceding year's return, shall be calculated as if the amendments made 9 by this act had been in effect for that entire preceding year. 10 § 7. This act shall take effect upon the enactment into law by the 11 states of Connecticut, New Jersey, Massachusetts and Pennsylvania of 12 legislation having substantially the same effect as this act and the 13 enactments by such states have taken effect in each state and shall 14 apply for taxable years beginning on or after such date; provided, 15 however, if the states of Connecticut, New Jersey, Massachusetts and 16 Pennsylvania have already enacted such legislation, this act shall take 17 effect immediately and shall apply for taxable years beginning on or 18 after January 1, 2018; provided further that the commissioner of taxa- 19 tion and finance shall notify the legislative bill drafting commission 20 upon the enactment of such legislation by the states of Connecticut, New 21 Jersey, Massachusetts and Pennsylvania in order that such commission may 22 maintain an accurate and timely effective data base of the official text 23 of the laws of the state of New York in furtherance of effectuating the 24 provisions of section 44 of the legislative law and section 70-b of the 25 public officers law. 26 PART N 27 Intentionally Omitted 28 PART O 29 Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of 30 section 605 of the tax law, as amended by chapter 28 of the laws of 31 1987, is amended to read as follows: 32 (B) who [is not domiciled in this state but] maintains a permanent 33 place of abode in this state and spends in the aggregate more than one 34 hundred eighty-three days of the taxable year in this state, whether or 35 not domiciled in this state for any portion of the taxable year, unless 36 such individual is in active service in the armed forces of the United 37 States. 38 § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as 39 amended by chapter 225 of the laws of 1977, is amended to read as 40 follows: 41 (2) who [is not domiciled in such city but] maintains a permanent 42 place of abode in such city and spends in the aggregate more than one 43 hundred eighty-three days of the taxable year in such city, whether or 44 not domiciled in this city for any portion of the taxable year, unless 45 such individual is in active service in the armed forces of the United 46 States. 47 § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 48 11-1705 of the administrative code of the city of New York, as amended 49 by chapter 333 of the laws of 1987, is amended to read as follows: 50 (B) who [is not domiciled in this city but] maintains a permanent 51 place of abode in this city and spends in the aggregate more than one 52 hundred eighty-three days of the taxable year in this city, whether orA. 9509--B 21 1 not domiciled in this city for any portion of the taxable year, unless 2 such individual is in active service in the armed forces of the United 3 States. 4 § 4. This act shall take effect immediately and shall apply to taxable 5 years commencing on or after such date. 6 PART P 7 Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax 8 law, as amended by section 1 of part L1 of chapter 109 of the laws of 9 2006, is amended to read as follows: 10 (1) A resident taxpayer shall be allowed a credit as provided herein 11 equal to the greater of one hundred dollars times the number of qualify- 12 ing children of the taxpayer or the applicable percentage of the child 13 tax credit allowed the taxpayer under section twenty-four of the inter- 14 nal revenue code for the same taxable year for each qualifying child. 15 Provided, however, in the case of a taxpayer whose federal adjusted 16 gross income exceeds the applicable threshold amount set forth by 17 section 24(b)(2) of the Internal Revenue Code, the credit shall only be 18 equal to the applicable percentage of the child tax credit allowed the 19 taxpayer under section 24 of the Internal Revenue Code for each qualify- 20 ing child. For the purposes of this subsection, a qualifying child shall 21 be a child who meets the definition of qualified child under section 22 24(c) of the internal revenue code and is at least four years of age. 23 The applicable percentage shall be thirty-three percent. For purposes of 24 this subsection, any reference to section 24 of the Internal Revenue 25 Code shall be a reference to such section as it existed immediately 26 prior to the enactment of Public Law 115-97. 27 § 2. This act shall take effect immediately and shall apply to taxable 28 years commencing on or after January 1, 2018. 29 PART Q 30 Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B 31 of the tax law, as amended by section 1 of part I of chapter 60 of the 32 laws of 2016, are amended to read as follows: 33 (a) Allowance of credit. For taxable years beginning on or after Janu- 34 ary first, two thousand fifteen and before January first, two thousand 35 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 36 computed as provided in this subdivision, against the tax imposed by 37 this article, for hiring and employing, for not less than one year and 38 for not less than thirty-five hours each week, a qualified veteran with- 39 in the state. The taxpayer may claim the credit in the year in which 40 the qualified veteran completes one year of employment by the taxpayer. 41 If the taxpayer claims the credit allowed under this subdivision, the 42 taxpayer may not use the hiring of a qualified veteran that is the basis 43 for this credit in the basis of any other credit allowed under this 44 article. 45 (b) Qualified veteran. A qualified veteran is an individual: 46 (1) who served on active duty in the United States army, navy, air 47 force, marine corps, coast guard or the reserves thereof, or who served 48 in active military service of the United States as a member of the army 49 national guard, air national guard, New York guard or New York naval 50 militia; who was released from active duty by general or honorable 51 discharge after September eleventh, two thousand one;A. 9509--B 22 1 (2) who commences employment by the qualified taxpayer on or after 2 January first, two thousand fourteen, and before January first, two 3 thousand [eighteen] twenty; and 4 (3) who certifies by signed affidavit, under penalty of perjury, that 5 he or she has not been employed for thirty-five or more hours during any 6 week in the one hundred eighty day period immediately prior to his or 7 her employment by the taxpayer. 8 § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax 9 law, as amended by section 2 of part I of chapter 60 of the laws of 10 2016, are amended to read as follows: 11 (1) Allowance of credit. For taxable years beginning on or after Janu- 12 ary first, two thousand fifteen and before January first, two thousand 13 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 14 computed as provided in this subsection, against the tax imposed by this 15 article, for hiring and employing, for not less than one year and for 16 not less than thirty-five hours each week, a qualified veteran within 17 the state. The taxpayer may claim the credit in the year in which the 18 qualified veteran completes one year of employment by the taxpayer. If 19 the taxpayer claims the credit allowed under this subsection, the 20 taxpayer may not use the hiring of a qualified veteran that is the basis 21 for this credit in the basis of any other credit allowed under this 22 article. 23 (2) Qualified veteran. A qualified veteran is an individual: 24 (A) who served on active duty in the United States army, navy, air 25 force, marine corps, coast guard or the reserves thereof, or who served 26 in active military service of the United States as a member of the army 27 national guard, air national guard, New York guard or New York naval 28 militia; who was released from active duty by general or honorable 29 discharge after September eleventh, two thousand one; 30 (B) who commences employment by the qualified taxpayer on or after 31 January first, two thousand fourteen, and before January first, two 32 thousand [eighteen] twenty; and 33 (C) who certifies by signed affidavit, under penalty of perjury, that 34 he or she has not been employed for thirty-five or more hours during any 35 week in the one hundred eighty day period immediately prior to his or 36 her employment by the taxpayer. 37 § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the 38 tax law, as amended by section 3 of part I of chapter 60 of the laws of 39 2016, are amended to read as follows: 40 (1) Allowance of credit. For taxable years beginning on or after Janu- 41 ary first, two thousand fifteen and before January first, two thousand 42 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 43 computed as provided in this subdivision, against the tax imposed by 44 this article, for hiring and employing, for not less than one year and 45 for not less than thirty-five hours each week, a qualified veteran with- 46 in the state. The taxpayer may claim the credit in the year in which 47 the qualified veteran completes one year of employment by the taxpayer. 48 If the taxpayer claims the credit allowed under this subdivision, the 49 taxpayer may not use the hiring of a qualified veteran that is the basis 50 for this credit in the basis of any other credit allowed under this 51 article. 52 (2) Qualified veteran. A qualified veteran is an individual: 53 (A) who served on active duty in the United States army, navy, air 54 force, marine corps, coast guard or the reserves thereof, or who served 55 in active military service of the United States as a member of the army 56 national guard, air national guard, New York guard or New York navalA. 9509--B 23 1 militia; who was released from active duty by general or honorable 2 discharge after September eleventh, two thousand one; 3 (B) who commences employment by the qualified taxpayer on or after 4 January first, two thousand fourteen, and before January first, two 5 thousand [eighteen] twenty; and 6 (C) who certifies by signed affidavit, under penalty of perjury, that 7 he or she has not been employed for thirty-five or more hours during any 8 week in the one hundred eighty day period immediately prior to his or 9 her employment by the taxpayer. 10 § 4. This act shall take effect immediately. 11 PART R 12 Section 1. Subdivision (c) of section 25-a of the labor law, as 13 amended by section 1 of part AA of chapter 56 of the laws of 2015, is 14 amended to read as follows: 15 (c) A qualified employer shall be entitled to a tax credit equal to 16 (1) [five] seven hundred fifty dollars per month for up to six months 17 for each qualified employee the employer employs in a full-time job or 18 [two] three hundred [fifty] seventy-five dollars per month for up to six 19 months for each qualified employee the employer employs in a part-time 20 job of at least twenty hours per week or ten hours per week when the 21 qualified employee is enrolled in high school full-time, (2) [one thou-22sand] fifteen hundred dollars for each qualified employee who is 23 employed for at least an additional six consecutive months by the quali- 24 fied employer in a full-time job or [five] seven hundred fifty dollars 25 for each qualified employee who is employed for at least an additional 26 six consecutive months by the qualified employer in a part-time job of 27 at least twenty hours per week or ten hours per week when the qualified 28 employee is enrolled in high school full-time, and (3) an additional 29 [one thousand] fifteen hundred dollars for each qualified employee who 30 is employed for at least an additional year after the [first year of the31employee's employment] completion of the time periods and satisfaction 32 of the conditions set forth in paragraphs one and two of this subdivi- 33 sion by the qualified employer in a full-time job or [five] seven 34 hundred fifty dollars for each qualified employee who is employed for at 35 least an additional year after the [first year of the employee's employ-36ment] completion of the time periods and satisfaction of the conditions 37 set forth in paragraphs one and two of this subdivision by the qualified 38 employer in a part-time job of at least twenty hours per week or ten 39 hours per week when the qualified employee is enrolled in high school 40 full time. The tax credits shall be claimed by the qualified employer as 41 specified in subdivision thirty-six of section two hundred ten-B and 42 subsection (tt) of section six hundred six of the tax law. 43 § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, 44 subdivisions (d) and (e) as amended by section 1 of subpart A of part N 45 of chapter 59 of the laws of 2017 and subdivision (f) as amended by 46 section 1 of part AA of chapter 56 of the laws of 2015, are amended to 47 read as follows: 48 (d) To participate in the program established under this section, an 49 employer must submit an application (in a form prescribed by the commis- 50 sioner) to the commissioner after January first, two thousand twelve but 51 no later than November thirtieth, two thousand twelve for program one, 52 after January first, two thousand fourteen but no later than November 53 thirtieth, two thousand fourteen for program two, after January first, 54 two thousand fifteen but no later than November thirtieth, two thousandA. 9509--B 24 1 fifteen for program three, after January first, two thousand sixteen but 2 no later than November thirtieth, two thousand sixteen for program four, 3 after January first, two thousand seventeen but no later than November 4 thirtieth, two thousand seventeen for program five, after January first, 5 two thousand eighteen but no later than November thirtieth, two thousand 6 eighteen for program six, after January first, two thousand nineteen but 7 no later than November thirtieth, two thousand nineteen for program 8 seven, after January first, two thousand twenty but no later than Novem- 9 ber thirtieth, two thousand twenty for program eight, after January 10 first, two thousand twenty-one but no later than November thirtieth, two 11 thousand twenty-one for program nine, and after January first, two thou- 12 sand twenty-two but no later than November thirtieth, two thousand twen- 13 ty-two for program ten. The qualified employees must start their employ- 14 ment on or after January first, two thousand twelve but no later than 15 December thirty-first, two thousand twelve for program one, on or after 16 January first, two thousand fourteen but no later than December thirty- 17 first, two thousand fourteen for program two, on or after January first, 18 two thousand fifteen but no later than December thirty-first, two thou- 19 sand fifteen for program three, on or after January first, two thousand 20 sixteen but no later than December thirty-first, two thousand sixteen 21 for program four, on or after January first, two thousand seventeen but 22 no later than December thirty-first, two thousand seventeen for program 23 five, on or after January first, two thousand eighteen but no later than 24 December thirty-first, two thousand eighteen for program six, on or 25 after January first, two thousand nineteen but no later than December 26 thirty-first, two thousand nineteen for program seven, on or after Janu- 27 ary first, two thousand twenty but no later than December thirty-first, 28 two thousand twenty for program eight, on or after January first, two 29 thousand twenty-one but no later than December thirty-first, two thou- 30 sand twenty-one for program nine, and on or after January first, two 31 thousand twenty-two but no later than December thirty-first, two thou- 32 sand twenty-two for program ten. [The commissioner shall establish33guidelines and criteria that specify requirements for employers to34participate in the program including criteria for certifying qualified35employees, ensuring that the process established will minimize any undue36delay in issuing the certificate of eligibility. Any regulations that37the commissioner determines are necessary may be adopted on an emergency38basis notwithstanding anything to the contrary in section two hundred39two of the state administrative procedure act. Such requirements may40include the types of industries that the employers are engaged in. The41commissioner may give preference to employers that are engaged in demand42occupations or industries, or in regional growth sectors, including but43not limited to those identified by the regional economic development44councils, such as clean energy, healthcare, advanced manufacturing and45conservation. In addition, the commissioner shall give preference to46employers who offer advancement and employee benefit packages to the47qualified individuals.] As part of such application, an employer must: 48 (1) agree to allow the department of taxation and finance to share its 49 tax information with the commissioner. However, any information shared 50 as a result of this agreement shall not be available for disclosure or 51 inspection under the state freedom of information law, and 52 (2) allow the commissioner and its agents and the department of taxa- 53 tion and finance and its agents access to any and all books and records 54 of employers the commissioner may require to monitor compliance. 55 (e) If, after reviewing the application submitted by an employer, the 56 commissioner determines that such employer is eligible to participate inA. 9509--B 25 1 the program established under this section, the commissioner shall issue 2 the employer a preliminary certificate of eligibility that establishes 3 the employer as a qualified employer. The preliminary certificate of 4 eligibility shall specify the maximum amount of tax credit that the 5 employer [will] may be allowed to claim and the program year under which 6 it [can] may be claimed. The maximum amount of tax credit the employer 7 is allowed to claim shall be computed as prescribed in subdivision (c) 8 of this section. 9 (f) The commissioner shall annually publish a report. Such report must 10 contain the names and addresses of any employer issued a preliminary 11 certificate of eligibility under this section, [and] the [maximum] 12 amount of New York youth works tax credit allowed to the qualified 13 employer as specified on [such] an annual final certificate of [eligi-14bility] tax credit and any other information as determined by the 15 commissioner. 16 § 3. Section 25-a of the labor law is amended by adding three new 17 subdivisions (e-1), (e-2) and (e-3) to read as follows: 18 (e-1)(1) To receive an annual final certificate of tax credit, the 19 qualified employer must annually submit, on or before January thirty- 20 first of the calendar year subsequent to the payment of wages paid to an 21 eligible employee, a report to the commissioner, in a form prescribed by 22 the commissioner. The report must demonstrate that the employer has 23 satisfied all eligibility requirements and provided all the information 24 necessary for the commissioner to compute an actual amount of credit 25 allowed. 26 (2) After reviewing the report and finding it sufficient, the commis- 27 sioner shall issue an annual final certificate of tax credit. Such 28 certificate shall include, in addition to any other information the 29 commissioner determines is necessary, the following information: 30 (i) The name and employer identification number of the qualified 31 employer; 32 (ii) The program year for the corresponding credit award; 33 (iii) The actual amount of credit to which the qualified employer is 34 entitled for that calendar year or the fiscal year in which the annual 35 final certificate is issued, which actual amount cannot exceed the 36 amount of credit listed on the preliminary certificate but may be less 37 than such amount; and 38 (iv) A unique certificate number identifying the annual final certif- 39 icate of tax credit. 40 (e-2) In determining the amount of credit for purposes of the annual 41 final certificate of tax credit, the portion of the credit described in 42 paragraph one of subdivision (c) of this section shall be allowed for 43 the calendar year in which the wages are paid to the qualified employee, 44 the portion of the credit described in paragraph two of subdivision (c) 45 of this section shall be allowed for the calendar year in which the 46 additional six consecutive month period ends, and the portion of the 47 credit described in paragraph three of subdivision (c) of this section 48 shall be allowed for the calendar year in which the additional year of 49 consecutive employment ends after the completion of the time periods and 50 satisfaction of the conditions set forth in paragraphs one and two of 51 subdivision (c) of this section. If the qualified employer's taxable 52 year is a calendar year, the employer shall be entitled to claim the 53 credit as calculated on the annual final certificate of tax credit on 54 the calendar year return for which the annual final certificate of tax 55 credit was issued. If the qualified employer's taxable year is a fiscal 56 year, the employer shall be entitled to claim the credit as calculatedA. 9509--B 26 1 on the annual final certificate of tax credit on the return for the 2 fiscal year that encompasses the date on which the annual final certif- 3 icate of tax credit is issued. 4 (e-3) The commissioner shall establish guidelines and criteria that 5 specify requirements for employers to participate in the program includ- 6 ing criteria for certifying qualified employees, and issuing the prelim- 7 inary certificate of eligibility and annual final certificate of tax 8 credit. Any regulations that the commissioner determines are necessary 9 may be adopted on an emergency basis notwithstanding anything to the 10 contrary in section two hundred two of the state administrative proce- 11 dure act. Such requirements may include the types of industries that the 12 employers are engaged in. The commissioner may give preference to 13 employers that are engaged in demand occupations or industries, or in 14 regional growth sectors, including but not limited to those identified 15 by the regional economic development councils, such as clean energy, 16 healthcare, advanced manufacturing and conservation. In addition, the 17 commissioner shall give preference to employers who offer advancement 18 and employee benefit packages to the qualified individuals. 19 § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 20 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is 21 amended to read as follows: 22 (a) A taxpayer that has been certified by the commissioner of labor as 23 a qualified employer pursuant to section twenty-five-a of the labor law 24 shall be allowed a credit against the tax imposed by this article equal 25 to (i) [five] seven hundred fifty dollars per month for up to six months 26 for each qualified employee the employer employs in a full-time job or 27 [two] three hundred [fifty] seventy-five dollars per month for up to six 28 months for each qualified employee the employer employs in a part-time 29 job of at least twenty hours per week or ten hours per week when the 30 qualified employee is enrolled in high school full-time, (ii) [one thou-31sand] fifteen hundred dollars for each qualified employee who is 32 employed for at least an additional six consecutive months by the quali- 33 fied employer in a full-time job or [five] seven hundred fifty dollars 34 for each qualified employee who is employed for at least an additional 35 six consecutive months by the qualified employer in a part-time job of 36 at least twenty hours per week or ten hours per week when the qualified 37 employee is enrolled in high school full-time, and (iii) an additional 38 [one thousand] fifteen hundred dollars for each qualified employee who 39 is employed for at least an additional year after the [first year of the40employee's employment] completion of the time periods and satisfaction 41 of the conditions set forth in subparagraphs (i) and (ii) of this para- 42 graph by the qualified employer in a full-time job or [five] seven 43 hundred fifty dollars for each qualified employee who is employed for at 44 least an additional year after the [first year of the employee's employ-45ment] completion of the time periods and satisfaction of the conditions 46 set forth in subparagraphs (i) and (ii) of this paragraph by the quali- 47 fied employer in a part-time job of at least twenty hours per week or 48 ten hours per week when the qualified employee is enrolled in high 49 school full-time. For purposes of this subdivision, the term "qualified 50 employee" shall have the same meaning as set forth in subdivision (b) of 51 section twenty-five-a of the labor law. The portion of the credit 52 described in subparagraph (i) of this paragraph shall be allowed for the 53 taxable year in which the wages are paid to the qualified employee, the 54 portion of the credit described in subparagraph (ii) of this paragraph 55 shall be allowed in the taxable year in which the additional six month 56 period ends, and the portion of the credit described in subparagraphA. 9509--B 27 1 (iii) of this paragraph shall be allowed in the taxable year in which 2 the additional year after the first year of employment ends. 3 § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 4 as amended by section four of this act, is amended to read as follows: 5 (a) A taxpayer that has been certified by the commissioner of labor as 6 a qualified employer pursuant to section twenty-five-a of the labor law 7 and received an annual final certificate of tax credit from such commis- 8 sioner shall be allowed a credit against the tax imposed by this article 9 equal to [(i) seven hundred fifty dollars per month for up to six months10for each qualified employee the employer employs in a full-time job or11three hundred seventy-five dollars per month for up to six months for12each qualified employee the employer employs in a part-time job of at13least twenty hours per week or ten hours per week when the qualified14employee is enrolled in high school full-time, (ii) fifteen hundred15dollars for each qualified employee who is employed for at least an16additional six consecutive months by the qualified employer in a full-17time job or seven hundred fifty dollars for each qualified employee who18is employed for at least an additional six consecutive months by the19qualified employer in a part-time job of at least twenty hours per week20or ten hours per week when the qualified employee is enrolled in high21school full-time, and (iii) an additional fifteen hundred dollars for22each qualified employee who is employed for at least an additional year23after the completion of the time periods and satisfaction of the condi-24tions set forth in subparagraphs (i) and (ii) of this paragraph by the25qualified employer in a full-time job or seven hundred fifty dollars for26each qualified employee who is employed for at least an additional year27after the completion of the time periods and satisfaction of the condi-28tions set forth in subparagraphs (i) and (ii) of this paragraph by the29qualified employer in a part-time job of at least twenty hours per week30or ten hours per week when the qualified employee is enrolled in high31school full-time. For purposes of this subdivision, the term "qualified32employee" shall have the same meaning as set forth in subdivision (b) of33section twenty-five-a of the labor law. The portion of the credit34described in subparagraph (i) of this paragraph shall be allowed for the35taxable year in which the wages are paid to the qualified employee, the36portion of the credit described in subparagraph (ii) of this paragraph37shall be allowed in the taxable year in which the additional six month38period ends, and the portion of the credit described in subparagraph39(iii) of this paragraph shall be allowed in the taxable year in which40the additional year after the first year of employment ends] the amount 41 listed on the annual final certificate of tax credit issued by the 42 commissioner of labor pursuant to section twenty-five-a of the labor 43 law. If the qualified employer's taxable year is a calendar year, the 44 employer shall be entitled to claim the credit as calculated on the 45 annual final certificate of tax credit on the calendar year return for 46 which the annual final certificate of tax credit was issued. If the 47 qualified employer's taxable year is a fiscal year, the employer shall 48 be entitled to claim the credit as calculated on the annual final 49 certificate of tax credit on the return for the fiscal year that encom- 50 passes the date on which the annual final certificate of tax credit is 51 issued. For the purposes of this subdivision, the term "qualified 52 employee" shall have the same meaning as set forth in subdivision (b) of 53 section twenty-five-a of the labor law. 54 § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, 55 as added by section 17 of part A of chapter 59 of the laws of 2014, is 56 amended to read as follows:A. 9509--B 28 1 (c) The taxpayer [may] shall be required to attach to its tax return 2 its annual final certificate of [eligibility] tax credit issued by the 3 commissioner of labor pursuant to section twenty-five-a of the labor 4 law. In no event shall the taxpayer be allowed a credit greater than the 5 amount of the credit listed on the annual final certificate of [eligi-6bility] tax credit. Notwithstanding any provision of this chapter to 7 the contrary, the commissioner and the commissioner's designees may 8 release the names and addresses of any taxpayer claiming this credit and 9 the amount of the credit earned by the taxpayer. Provided, however, if 10 a taxpayer claims this credit because it is a member of a limited 11 liability company or a partner in a partnership, only the amount of 12 credit earned by the entity and not the amount of credit claimed by the 13 taxpayer may be released. 14 § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 15 amended by section 3 of part AA of chapter 56 of the laws of 2015, is 16 amended to read as follows: 17 (1) A taxpayer that has been certified by the commissioner of labor as 18 a qualified employer pursuant to section twenty-five-a of the labor law 19 shall be allowed a credit against the tax imposed by this article equal 20 to (A) [five] seven hundred fifty dollars per month for up to six months 21 for each qualified employee the employer employs in a full-time job or 22 [two] three hundred [fifty] seventy-five dollars per month for up to six 23 months for each qualified employee the employer employs in a part-time 24 job of at least twenty hours per week or ten hours per week when the 25 qualified employee is enrolled in high school full-time, and (B) [one26thousand] fifteen hundred dollars for each qualified employee who is 27 employed for at least an additional six consecutive months by the quali- 28 fied employer in a full-time job or [five] seven hundred fifty dollars 29 for each qualified employee who is employed for at least an additional 30 six consecutive months by the qualified employer in a part-time job of 31 at least twenty hours per week or ten hours per week when the qualified 32 employee is enrolled in high school full-time, and (C) an additional 33 [one thousand] fifteen hundred dollars for each qualified employee who 34 is employed for at least an additional year after the [first year of the35employee's employment] completion of the time periods and satisfaction 36 of the conditions set forth in subparagraphs A and B of this subsection 37 by the qualified employer in a full-time job or [five] seven hundred 38 fifty dollars for each qualified employee who is employed for at least 39 an additional year after the [first year of the employee's employment] 40 completion of the time periods and satisfaction of the conditions set 41 forth in subparagraphs A and B of this subsection by the qualified 42 employer in a part-time job of at least twenty hours per week or ten 43 hours per week when the qualified employee is enrolled in high school 44 full-time. A taxpayer that is a partner in a partnership, member of a 45 limited liability company or shareholder in an S corporation that has 46 been certified by the commissioner of labor as a qualified employer 47 pursuant to section twenty-five-a of the labor law shall be allowed its 48 pro rata share of the credit earned by the partnership, limited liabil- 49 ity company or S corporation. For purposes of this subsection, the term 50 "qualified employee" shall have the same meaning as set forth in subdi- 51 vision (b) of section twenty-five-a of the labor law. The portion of the 52 credit described in subparagraph (A) of this paragraph shall be allowed 53 for the taxable year in which the wages are paid to the qualified 54 employee, the portion of the credit described in subparagraph (B) of 55 this paragraph shall be allowed in the taxable year in which the addi- 56 tional six month period ends, and the portion of the credit described inA. 9509--B 29 1 subparagraph (C) of this paragraph shall be allowed in the taxable year 2 in which the additional year after the first year of employment ends. 3 § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 4 amended by section seven of this act, is amended to read as follows: 5 (1) A taxpayer that has been certified by the commissioner of labor as 6 a qualified employer pursuant to section twenty-five-a of the labor law 7 and received an annual final certificate of tax credit from such commis- 8 sioner shall be allowed a credit against the tax imposed by this article 9 equal to [(A) seven hundred fifty dollars per month for up to six months10for each qualified employee the employer employs in a full-time job or11three hundred seventy-five dollars per month for up to six months for12each qualified employee the employer employs in a part-time job of at13least twenty hours per week or ten hours per week when the qualified14employee is enrolled in high school full-time, and (B) fifteen hundred15dollars for each qualified employee who is employed for at least an16additional six consecutive months by the qualified employer in a full-17time job or seven hundred fifty dollars for each qualified employee who18is employed for at least an additional six consecutive months by the19qualified employer in a part-time job of at least twenty hours per week20or ten hours per week when the qualified employee is enrolled in high21school full-time, and (C) an additional fifteen hundred dollars for each22qualified employee who is employed for at least an additional year after23the completion of the time periods and satisfaction of the conditions24set forth in subparagraphs A and B of this subsection by the qualified25employer in a full-time job or seven hundred fifty dollars for each26qualified employee who is employed for at least an additional year after27the completion of the time periods and satisfaction of the conditions28set forth in subparagraphs A and B of this subsection by the qualified29employer in a part-time job of at least twenty hours per week or ten30hours per week when the qualified employee is enrolled in high school31full-time] the amount listed on the annual final certificate of tax 32 credit issued by the commissioner of labor pursuant to section twenty- 33 five-a of the labor law. A taxpayer that is a partner in a partnership, 34 member of a limited liability company or shareholder in an S corporation 35 that has [been certified by] received its annual final certificate of 36 tax credit from the commissioner of labor as a qualified employer pursu- 37 ant to section twenty-five-a of the labor law shall be allowed its pro 38 rata share of the credit earned by the partnership, limited liability 39 company or S corporation. [For purposes of this subsection, the term40"qualified employee" shall have the same meaning as set forth in subdi-41vision (b) of section twenty-five-a of the labor law. The portion of the42credit described in subparagraph (A) of this paragraph shall be allowed43for the taxable year in which the wages are paid to the qualified44employee, the portion of the credit described in subparagraph (B) of45this paragraph shall be allowed in the taxable year in which the addi-46tional six month period ends, and the portion of the credit described in47subparagraph (C) of this paragraph shall be allowed in the taxable year48in which the additional year after the first year of employment ends.] 49 If the qualified employer's taxable year is a calendar year, the employ- 50 er shall be entitled to claim the credit as calculated on the annual 51 final certificate of tax credit on the calendar year return for which 52 the annual final certificate of tax credit was issued. If the qualified 53 employer's taxable year is a fiscal year, the employer shall be entitled 54 to claim the credit as calculated on the annual final certificate of tax 55 credit on the return for the fiscal year that encompasses the date on 56 which the annual final certificate of tax credit is issued. For theA. 9509--B 30 1 purposes of this subsection, the term "qualified employee" shall have 2 the same meaning as set forth in subdivision (b) of section 3 twenty-five-a of the labor law. 4 § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as 5 added by section 3 of part D of chapter 56 of the laws of 2011, is 6 amended to read as follows: 7 (3) The taxpayer [may] shall be required to attach to its tax return 8 its annual final certificate of [eligibility] tax credit issued by the 9 commissioner of labor pursuant to section twenty-five-a of the labor 10 law. In no event shall the taxpayer be allowed a credit greater than the 11 amount of the credit listed on the annual final certificate of [eligi-12bility] tax credit. Notwithstanding any provision of this chapter to the 13 contrary, the commissioner and the commissioner's designees may release 14 the names and addresses of any taxpayer claiming this credit and the 15 amount of the credit earned by the taxpayer. Provided, however, if a 16 taxpayer claims this credit because it is a member of a limited liabil- 17 ity company, a partner in a partnership, or a shareholder in a subchap- 18 ter S corporation, only the amount of credit earned by the entity and 19 not the amount of credit claimed by the taxpayer may be released. 20 § 10. This act shall take effect immediately, provided however that 21 (i) section one of this act shall apply to tax years beginning on or 22 after January 1, 2018; (ii) sections four and seven of this act shall 23 apply to tax years beginning on or after January 1, 2018 and before 24 January 1, 2019; and (iii) sections two, three, five, six, eight, and 25 nine of this act shall take effect January 1, 2019 and shall apply to 26 tax years beginning on or after January 1, 2019. 27 PART S 28 Intentionally Omitted 29 PART T 30 Section 1. Subdivision (a) of section 1412 of the tax law, as added by 31 chapter 61 of the laws of 1989, is amended to read as follows: 32 (a) A grantor or grantee claiming to have erroneously paid the tax 33 imposed by this article or some other person designated by such grantor 34 or grantee may file an application for refund within [two] three years 35 from the date of payment. Such application shall be filed with the 36 commissioner [of taxation and finance] on a form which he shall 37 prescribe. 38 § 2. Subdivision (b) of section 1402-a of the tax law, as added by 39 chapter 61 of the laws of 1989, is amended to read as follows: 40 (b) Notwithstanding the provisions of subdivision (a) of section four- 41 teen hundred four of this article, the additional tax imposed by this 42 section shall be paid by the grantee. If the grantee [is exempt from43such tax, the grantor shall have the duty to pay the tax] has failed to 44 pay the tax imposed by this article at the time required by section 45 fourteen hundred ten of this article or if the grantee is exempt from 46 such tax, the grantor shall have the duty to pay the tax. Where the 47 grantor has the duty to pay the tax because the grantee has failed to 48 pay, such tax shall be the joint and several liability of the grantor 49 and the grantee. 50 § 3. This act shall take effect immediately; provided, however, that 51 section two of this act shall apply to conveyances occurring on or after 52 the fifteenth day after this act shall have become a law.A. 9509--B 31 1 PART U 2 Section 1. Subdivision 6 of section 470 of the tax law, as added by 3 chapter 61 of the laws of 1989, is amended to read as follows: 4 6. "Wholesale price." The [established] invoice price for which a 5 manufacturer or other person sells tobacco products to a distributor, 6 including the federal excise taxes paid by the manufacturer or other 7 person, before the allowance of any discount, trade allowance, rebate or 8 other reduction. 9 [In the absence of such an established price, a manufacturer's invoice10price of any tobacco product shall be presumptive evidence of the whole-11sale price of such tobacco product, and in its absence the price at12which such tobacco products were purchased shall be presumed to be the13wholesale price, unless evidence of a lower wholesale price shall be14established or any industry standard of markups relating to the purchase15price in relation to the wholesale price shall be established.] 16 § 2. This act shall take effect on September 1, 2018 and shall apply 17 to all tobacco products possessed in this state for sale on or after 18 such date. 19 PART V 20 Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of 21 section 1105 of the tax law, as amended by section 9 of part S of chap- 22 ter 85 of the laws of 2002, is amended to read as follows: 23 (A) gas, electricity, refrigeration and steam, and gas, electric, 24 refrigeration and steam service of whatever nature, including the trans- 25 portation, transmission or distribution of gas or electricity, even if 26 sold separately; 27 § 2. Section 1105-C of the tax law is REPEALED. 28 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 29 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of 30 the laws of 2016, is amended to read as follows: 31 (xi) [shall provide that section eleven hundred five-C of this chapter32does not apply to such taxes, and] shall tax receipts from every sale, 33 other than sales for resale, of gas service or electric service of what- 34 ever nature, including the transportation, transmission or distribution 35 of gas or electricity, even if sold separately, at the rate set forth in 36 clause one of subparagraph (i) of the opening paragraph of this section; 37 § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- 38 trative code of the city of New York, as amended by chapter 200 of the 39 laws of 2009, is amended to read as follows: 40 (8) [makes inapplicable section eleven hundred five-C of the tax law,41and] imposes tax on receipts from every sale, other than sales for 42 resale, of gas service or electric service of whatever nature, including 43 the transportation, transmission or distribution of gas or electricity, 44 even if sold separately, at the rate set forth in subdivision (a) of 45 this section. 46 § 5. This act shall take effect immediately; provided however that 47 this act shall apply to sales made and services rendered on and after 48 June 1, 2018 whether or not such sales and services are rendered under a 49 prior contract. 50 PART WA. 9509--B 32 1 Section 1. Subdivision (f) of section 1115 of the tax law, as amended 2 by chapter 205 of the laws of 1968, is amended to read as follows: 3 (f) (1) Services rendered by a veterinarian licensed and registered as 4 required by the education law which constitute the practice of veteri- 5 nary medicine as defined in said law, including hospitalization for 6 which no separate boarding charge is made, shall not be subject to tax 7 under paragraph (3) of subdivision (c) of section eleven hundred five, 8 but the exemption allowed by this subdivision shall not apply to other 9 services provided by a veterinarian to pets and other animals, includ- 10 ing, but not limited to, boarding, grooming and clipping. Articles of 11 tangible personal property designed for use in some manner relating to 12 domestic animals or poultry, when sold by such a veterinarian, shall not 13 be subject to tax under subdivision (a) of section eleven hundred five 14 or under section eleven hundred ten. However, the sale of any such arti- 15 cles of tangible personal property to a veterinarian shall not be deemed 16 a sale for resale within the meaning of [pargraph] paragraph (4) of 17 subdivision (b) of section eleven hundred one and shall not be exempt 18 from retail sales tax. 19 (2) Drugs or medicine sold to or used by a veterinarian for use in 20 rendering services that are exempt pursuant to paragraph one of this 21 subdivision to livestock or poultry used in the production for sale of 22 tangible personal property by farming, or sold to a person qualifying 23 for the exemption provided for in paragraph six of subdivision (a) of 24 this section for use by such person on such livestock or poultry. 25 § 2. Subdivision (a) of section 1119 of the tax law, as amended by 26 chapter 686 of the laws of 1986 and as further amended by section 15 of 27 part GG of chapter 63 of the laws of 2000, is amended to read as 28 follows: 29 (a) Subject to the conditions and limitations provided for herein, a 30 refund or credit shall be allowed for a tax paid pursuant to subdivision 31 (a) of section eleven hundred five or section eleven hundred ten (1) on 32 the sale or use of tangible personal property if the purchaser or user, 33 in the performance of a contract, later incorporates that tangible 34 personal property into real property located outside this state, (2) on 35 the sale or use of tangible personal property purchased in bulk, or any 36 portion thereof, which is stored and not used by the purchaser or user 37 within this state if that property is subsequently reshipped by such 38 purchaser or user to a point outside this state for use outside this 39 state, (3) on the sale to or use by a contractor or subcontractor of 40 tangible personal property if that property is used by him solely in the 41 performance of a pre-existing lump sum or unit price construction 42 contract, (4) on the sale or use within this state of tangible personal 43 property, not purchased for resale, if the use of such property in this 44 state is restricted to fabricating such property (including incorporat- 45 ing it into or assembling it with other tangible personal property), 46 processing, printing or imprinting such property and such property is 47 then shipped to a point outside this state for use outside this state, 48 [(5) on the sale to or use by a veterinarian of drugs or medicine if49such drugs or medicine are used by such veterinarian in rendering50services, which are exempt pursuant to subdivision (f) of section eleven51hundred fifteen of this chapter, to livestock or poultry used in the52production for sale of tangible personal property by farming or if such53drugs or medicine are sold to a person qualifying for the exemption54provided for in paragraph (6) of subdivision (a) of section eleven55hundred fifteen of this chapter for use by such person on such livestock56or poultry,] or (6) on the sale of tangible personal property purchasedA. 9509--B 33 1 for use in constructing, expanding or rehabilitating industrial or 2 commercial real property (other than property used or to be used exclu- 3 sively by one or more registered vendors primarily engaged in the retail 4 sale of tangible personal property) located in an area designated as an 5 empire zone pursuant to article eighteen-B of the general municipal law, 6 but only to the extent that such property becomes an integral component 7 part of the real property. (For the purpose of clause (3) of the preced- 8 ing sentence, the term "pre-existing lump sum or unit price construction 9 contract" shall mean a contract for the construction of improvements to 10 real property under which the amount payable to the contractor or 11 subcontractor is fixed without regard to the costs incurred by him in 12 the performance thereof, and which (i) was irrevocably entered into 13 prior to the date of the enactment of this article or the enactment of a 14 law increasing the rate of tax imposed under this article, or (ii) 15 resulted from the acceptance by a governmental agency of a bid accompa- 16 nied by a bond or other performance guaranty which was irrevocably 17 submitted prior to such date.) Where the tax on the sale or use of such 18 tangible personal property has been paid to the vendor, to qualify for 19 such refund or credit, such tangible personal property must be incorpo- 20 rated into real property as required in clause (1) above, reshipped as 21 required in clause (2) above, used in the manner described in clauses 22 (3), (4)[, (5)] and (6) above within three years after the date such tax 23 was payable to the tax commission by the vendor pursuant to section 24 eleven hundred thirty-seven. Where the tax on the sale or use of such 25 tangible personal property was paid by the applicant for the credit or 26 refund directly to the tax commission, to qualify for such refund or 27 credit, such tangible personal property must be incorporated into real 28 property as required in clause (1) above, reshipped as required in 29 clause (2) above, used in the manner described in clauses (3), (4)[,30(5)] and (6) above within three years after the date such tax was paya- 31 ble to the tax commission by such applicant pursuant to this article. An 32 application for a refund or credit pursuant to this section must be 33 filed with such commission within the time provided by subdivision (a) 34 of section eleven hundred thirty-nine. Such application shall be in such 35 form as the tax commission may prescribe. Where an application for cred- 36 it has been filed, the applicant may immediately take such credit on the 37 return which is due coincident with or immediately subsequent to the 38 time that he files his application for credit. However, the taking of 39 the credit on the return shall be deemed to be part of the application 40 for credit and shall be subject to the provisions in respect to applica- 41 tions for credit in section eleven hundred thirty-nine as provided in 42 subdivision (e) of such section. With respect to a sale or use described 43 in clause (3) above where a pre-existing lump sum or unit price 44 construction contract was irrevocably entered into prior to the date of 45 the enactment of this article or the bid accompanied by the performance 46 guaranty was irrevocably submitted to the governmental agency prior to 47 such date, the purchaser or user shall be entitled to a refund or credit 48 only of the amount by which the tax on such sale or use imposed under 49 this article plus any tax imposed under the authority of article twen- 50 ty-nine exceeds the amount computed by applying against such sale or use 51 the local rate of tax, if any, in effect at the time such contract was 52 entered into or such bid was submitted. 53 In the case of the enactment of a law increasing the rate of tax 54 imposed by this article, the purchaser or user shall be entitled only to 55 a refund or credit of the amount by which the increased tax on such sale 56 or use imposed under this article plus any tax imposed under the author-A. 9509--B 34 1 ity of article twenty-nine exceeds the amount computed by applying 2 against such sale or use the state and local rates of tax in effect at 3 the time such contract was entered into or such bid was submitted. 4 § 3. This act shall take effect June 1, 2018, and shall apply to sales 5 made and uses occurring on and after such date. 6 PART X 7 Section 1. Subdivision 1 of section 1131 of the tax law, as amended by 8 chapter 576 of the laws of 1994, is amended to read as follows: 9 (1) "Persons required to collect tax" or "person required to collect 10 any tax imposed by this article" shall include: every vendor of tangible 11 personal property or services; every recipient of amusement charges; and 12 every operator of a hotel. Said terms shall also include any officer, 13 director or employee of a corporation or of a dissolved corporation, any 14 employee of a partnership, any employee or manager of a limited liabil- 15 ity company, or any employee of an individual proprietorship who as such 16 officer, director, employee or manager is under a duty to act for such 17 corporation, partnership, limited liability company or individual 18 proprietorship in complying with any requirement of this article, or has 19 so acted; and any member of a partnership or limited liability company. 20 Provided, however, that any person who is a vendor solely by reason of 21 clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision 22 (b) of section eleven hundred one of this article shall not be a "person 23 required to collect any tax imposed by this article" until twenty days 24 after the date by which such person is required to file a certificate of 25 registration pursuant to section eleven hundred thirty-four of this 26 part. 27 § 2. Subdivision (a) of section 1133 of the tax law, as amended by 28 chapter 621 of the laws of 1967, is amended to read as follows: 29 (a) (1) Except as otherwise provided in paragraph two of this subdivi- 30 sion and in section eleven hundred thirty-seven of this part, every 31 person required to collect any tax imposed by this article shall be 32 personally liable for the tax imposed, collected or required to be 33 collected under this article. Any such person shall have the same right 34 in respect to collecting the tax from his customer or in respect to 35 nonpayment of the tax by the customer as if the tax were a part of the 36 purchase price of the property or service, amusement charge or rent, as 37 the case may be, and payable at the same time; provided, however, that 38 the tax commission shall be joined as a party in any action or proceed- 39 ing brought to collect the tax. 40 (2) Notwithstanding any other provision of this article: (i) The 41 commissioner shall grant the relief described in subparagraph (iii) of 42 this paragraph to a limited partner of a limited partnership (but not a 43 partner of a limited liability partnership) or a member of a limited 44 liability company if such limited partner or member demonstrates to the 45 satisfaction of the commissioner that such limited partner's or member's 46 ownership interest and the percentage of the distributive share of the 47 profits and losses of such limited partnership or limited liability 48 company are each less than fifty percent, and such limited partner or 49 member was not under a duty to act for such limited partnership or 50 limited liability company in complying with any requirement of this 51 article. Provided, however, the commissioner may deny an application for 52 relief to any such limited partner or member who the commissioner finds 53 has acted on behalf of such limited partnership or limited liability 54 company in complying with any requirement of this article or has beenA. 9509--B 35 1 convicted of a crime provided in this chapter or who has a past-due 2 liability, as such term is defined in section one hundred seventy-one-v 3 of this chapter. 4 (ii) Such limited partner or member must submit an application for 5 relief, on a form prescribed by the commissioner, and the information 6 provided in such application must be true and complete in all material 7 respects. Providing materially false or fraudulent information on such 8 application shall disqualify such limited partner or member for the 9 relief described in subparagraph (iii) of this paragraph, shall void any 10 agreement with the commissioner with respect to such relief, and shall 11 result in such limited partner or member bearing strict liability for 12 the total amount of tax, interest and penalty owed by their respective 13 limited partnership or limited liability company pursuant to this subdi- 14 vision. 15 (iii) A limited partner of a limited partnership or member of a limit- 16 ed liability company, who meets the requirements set forth in this para- 17 graph and whose application for relief is approved by the commissioner, 18 shall be liable for the percentage of the original sales and use tax 19 liability of their respective limited partnership or limited liability 20 company that reflects such limited partner's or member's ownership 21 interest of distributive share of the profits and losses of such limited 22 partnership or limited liability company, whichever is higher. Such 23 original liability shall include any interest accrued thereon up to and 24 including the date of payment by such limited partner or member at the 25 underpayment rate set by the commissioner pursuant to section eleven 26 hundred forty-two of this part, and shall be reduced by the sum of any 27 payments made by (A) the limited partnership or limited liability compa- 28 ny; (B) any person required to collect tax not eligible for relief; and 29 (C) any person required to collect tax who was eligible for relief but 30 had not been approved for relief by the commissioner at the time such 31 payment was made. Provided, however, such limited partner or member 32 shall not be liable for any penalty owed by such limited partnership or 33 limited liability company or any other partner or member of such limited 34 partnership or limited liability company. Any payment made by a limited 35 partner or member pursuant to the provisions of this paragraph shall not 36 be credited against the liability of other limited partners or members 37 of their respective limited partnership or limited liability company who 38 are eligible for the same relief; provided, however that the sum of the 39 amounts owed by all of the persons required to collect tax of a limited 40 partnership or limited liability company shall not exceed the total 41 liability of such limited partnership or limited liability company. 42 § 3. This act shall take effect immediately. 43 PART Y 44 Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax 45 law, as amended by section 1 of part II of chapter 59 of the laws of 46 2014, is amended to read as follows: 47 (1) (A) Food, food products, beverages, dietary foods and health 48 supplements, sold for human consumption but not including (i) candy and 49 confectionery, (ii) fruit drinks which contain less than seventy percent 50 of natural fruit juice, (iii) soft drinks, sodas and beverages such as 51 are ordinarily dispensed at soda fountains or in connection therewith 52 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- 53 ic beverages, all of which shall be subject to the retail sales and 54 compensating use taxes, whether or not the item is sold in liquid form.A. 9509--B 36 1 Nothing in this subparagraph shall be construed as exempting food or 2 drink from the tax imposed under subdivision (d) of section eleven 3 hundred five of this article. 4 [The] (B) Until May thirty first, two thousand twenty, the food and 5 drink excluded from the exemption provided by [this paragraph under6subparagraphs] clauses (i), (ii) and (iii) of subparagraph (A) of this 7 paragraph, and bottled water, shall be exempt under this [paragraph] 8 subparagraph when sold for one dollar and fifty cents or less through 9 any vending machine [activated by the use of] that accepts coin[,] or 10 currency[, credit card or debit card] only or when sold for two dollars 11 or less through any vending machine that accepts any form of payment 12 other than coin or currency, whether or not it also accepts coin or 13 currency. [With the exception of the provision in this paragraph provid-14ing for an exemption for certain food or drink sold for one dollar and15fifty cents or less through vending machines, nothing herein shall be16construed as exempting food or drink from the tax imposed under subdivi-17sion (d) of section eleven hundred five of this article.] 18 § 2. This act shall take effect June 1, 2018, and shall apply to sales 19 made and uses occurring on and after such date. 20 PART Z 21 Section 1. Section 2 of subpart R of part A of chapter 61 of the laws 22 of 2017, amending the tax law relating to extending the expiration of 23 the authorization to the county of Genesee to impose an additional one 24 percent of sales and compensating use taxes, is amended to read as 25 follows: 26 § 2. Notwithstanding any other provision of law to the contrary, the 27 one percent increase in sales and compensating use taxes authorized for 28 the county of Genesee until November 30, [2019] 2020 pursuant to clause 29 (20) of subparagraph (i) of the opening paragraph of section 1210 of the 30 tax law, as amended by section one of this act, shall be divided in the 31 same manner and proportion as the existing three percent sales and 32 compensating use taxes in such county are divided. 33 § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 34 2017, amending the tax law relating to the imposition of sales and 35 compensating use taxes by the county of Monroe, is amended to read as 36 follows: 37 § 2. Notwithstanding the provisions of subdivisions (b) and (c) of 38 section 1262 and section 1262-g of the tax law, net collections, as such 39 term is defined in section 1262 of the tax law, derived from the imposi- 40 tion of sales and compensating use taxes by the county of Monroe at the 41 additional rate of one percent as authorized pursuant to clause (25) of 42 subparagraph (i) of the opening paragraph of section 1210 of the tax 43 law, as amended by section one of this act, which are in addition to the 44 current net collections derived from the imposition of such taxes at the 45 three percent rate authorized by the opening paragraph of section 1210 46 of the tax law, shall be distributed and allocated as follows: for the 47 period of December 1, 2017 through November 30, [2019] 2020 in cash, 48 five percent to the school districts in the area of the county outside 49 the city of Rochester, three percent to the towns located within the 50 county, one and one-quarter percent to the villages located within the 51 county, and ninety and three-quarters percent to the city of Rochester 52 and county of Monroe. The amount of the ninety and three-quarters 53 percent to be distributed and allocated to the city of Rochester and 54 county of Monroe shall be distributed and allocated to each so that theA. 9509--B 37 1 combined total distribution and allocation to each from the sales tax 2 revenues pursuant to sections 1262 and 1262-g of the tax law and this 3 section shall result in the same total amount being distributed and 4 allocated to the city of Rochester and county of Monroe. The amount so 5 distributed and allocated to the county shall be used for county 6 purposes. The foregoing cash payments to the school districts shall be 7 allocated on the basis of the enrolled public school pupils, thereof, as 8 such term is used in subdivision (b) of section 1262 of the tax law, 9 residing in the county of Monroe. The cash payments to the towns located 10 within the county of Monroe shall be allocated on the basis of the ratio 11 which the population of each town, exclusive of the population of any 12 village or portion thereof located within a town, bears to the total 13 population of the towns, exclusive of the population of the villages 14 located within such towns. The cash payments to the villages located 15 within the county shall be allocated on the basis of the ratio which the 16 population of each village bears to the total population of the villages 17 located within the county. The term population as used in this section 18 shall have the same meaning as used in subdivision (b) of section 1262 19 of the tax law. 20 § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 21 2017, amending the tax law relating to extending the authorization of 22 the county of Onondaga to impose an additional rate of sales and compen- 23 sating use taxes, is amended to read as follows: 24 § 3. Notwithstanding any contrary provision of law, net collections 25 from the additional one percent rate of sales and compensating use taxes 26 which may be imposed by the county of Onondaga during the period 27 commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- 28 ant to the authority of section 1210 of the tax law, shall not be 29 subject to any revenue distribution agreement entered into under subdi- 30 vision (c) of section 1262 of the tax law, but shall be allocated and 31 distributed or paid, at least quarterly, as follows: (i) 1.58% to the 32 county of Onondaga for any county purpose; (ii) 97.79% to the city of 33 Syracuse; and (iii) .63% to the school districts in accordance with 34 subdivision (a) of section 1262 of the tax law. 35 § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 36 2017, amending the tax law relating to extending the authority of the 37 county of Orange to impose an additional rate of sales and compensating 38 use taxes, is amended to read as follows: 39 § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, 40 net collections from any additional rate of sales and compensating use 41 taxes which may be imposed by the county of Orange during the period 42 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- 43 ant to the authority of section 1210 of the tax law, shall be paid to 44 the county of Orange and shall be used by such county solely for county 45 purposes and shall not be subject to any revenue distribution agreement 46 entered into pursuant to the authority of subdivision (c) of section 47 1262 of the tax law. 48 § 5. This act shall take effect immediately and shall be deemed to 49 have been in full force and effect on June 29, 2017. 50 PART AA 51 Section 1. Section 1101 of the tax law is amended by adding a new 52 subdivision (e) to read as follows:A. 9509--B 38 1 (e) When used in this article for the purposes of the taxes imposed 2 under subdivision (a) of section eleven hundred five and by section 3 eleven hundred ten of this article, the following terms shall mean: 4 (1) Marketplace provider. A person who, pursuant to an agreement with 5 a marketplace seller, facilitates sales of tangible personal property or 6 services taxable under section eleven hundred five of this article by 7 such marketplace seller or sellers. A person "facilitates a sale of 8 tangible personal property or services taxable under section eleven 9 hundred five of this article" for purposes of this paragraph when the 10 person meets both of the following conditions: (i) such person provides 11 the forum in which, or by means of which, the sale takes place or the 12 offer of sale is accepted, including a shop, store, booth, catalog, an 13 internet website, or similar forum; and (ii) such person or an affiliate 14 of such person collects the receipts paid by a customer to a marketplace 15 seller for a sale of tangible personal property or services taxable 16 under section eleven hundred five of this article, contracts with a 17 third party to collect such receipts for services taxable under section 18 eleven hundred five of this article by an unaffiliated third party oper- 19 ator through an app, as such term is defined by paragraph nine of subdi- 20 vision (c) of this section. For purposes of this paragraph, two persons 21 are affiliated if one person has an ownership interest of more than five 22 percent, whether direct or indirect, in the other, or where an ownership 23 interest of more than five percent, whether direct or indirect, is held 24 in each of such persons by another person or by a group of other persons 25 that are affiliated persons with respect to each other. Notwithstanding 26 anything in this paragraph, a person who facilitates sales exclusively 27 by means of the internet is not a marketplace provider for a sales tax 28 quarter when such person can show that it has facilitated less than one 29 hundred million dollars of sales annually for every calendar year after 30 two thousand sixteen. 31 (2) Marketplace seller. Any person, whether or not such person is 32 required to obtain a certificate of authority under section eleven 33 hundred thirty-four of this article, who has an agreement with a market- 34 place provider under which the marketplace provider will facilitate 35 sales of tangible personal property or services taxable under section 36 eleven hundred five of this article by such person within the meaning of 37 paragraph one of this subdivision. 38 § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- 39 ter 576 of the laws of 1994, is amended to read as follows: 40 (1) "Persons required to collect tax" or "person required to collect 41 any tax imposed by this article" shall include: every vendor of tangible 42 personal property or services; every recipient of amusement charges; 43 [and] every operator of a hotel, and every marketplace provider with 44 respect to sales of tangible personal property or services taxable under 45 section eleven hundred five of this article it facilitates as described 46 in paragraph one of subdivision (e) of section eleven hundred one of 47 this article. Said terms shall also include any officer, director or 48 employee of a corporation or of a dissolved corporation, any employee of 49 a partnership, any employee or manager of a limited liability company, 50 or any employee of an individual proprietorship who as such officer, 51 director, employee or manager is under a duty to act for such corpo- 52 ration, partnership, limited liability company or individual proprietor- 53 ship in complying with any requirement of this article; and any member 54 of a partnership or limited liability company. Provided, however, that 55 any person who is a vendor solely by reason of clause (D) or (E) of 56 subparagraph (i) of paragraph (8) of subdivision (b) of section elevenA. 9509--B 39 1 hundred one shall not be a "person required to collect any tax imposed 2 by this article" until twenty days after the date by which such person 3 is required to file a certificate of registration pursuant to section 4 eleven hundred thirty-four of this part. 5 § 3. Section 1132 of the tax law is amended by adding a new subdivi- 6 sion (l) to read as follows: 7 (l)(1) A marketplace provider with respect to a sale of tangible 8 personal property or services taxable under section eleven hundred five 9 of this article it facilitates: (i) shall have all the obligations and 10 rights of a vendor under this article and article twenty-nine of this 11 chapter and under any regulations adopted pursuant thereto, including, 12 but not limited to, the duty to obtain a certificate of authority, to 13 collect tax, file returns, remit tax, and the right to accept a certif- 14 icate or other documentation from a customer substantiating an exemption 15 or exclusion from tax, the right to receive the refund authorized by 16 subdivision (e) of this section and the credit allowed by subdivision 17 (f) of section eleven hundred thirty-seven of this part subject to the 18 provisions of such subdivisions; and (ii) shall keep such records and 19 information and cooperate with the commissioner to ensure the proper 20 collection and remittance of tax imposed, collected or required to be 21 collected under this article and article twenty-nine of this chapter. 22 (2) A marketplace seller who is a vendor is relieved from the duty to 23 collect tax in regard to a particular sale of tangible personal property 24 or services subject to tax under section eleven hundred five of this 25 article and shall not include the receipts from such sale in its taxable 26 receipts for purposes of section eleven hundred thirty-six of this part 27 if, in regard to such sale: (i) the marketplace seller can show that 28 such sale was facilitated by a marketplace provider from whom such sell- 29 er has received in good faith a properly completed certificate of 30 collection in a form prescribed by the commissioner, certifying that the 31 marketplace provider is registered to collect sales tax and will collect 32 sales tax on all taxable sales of tangible personal property or services 33 taxable under section eleven hundred five of this article by the market- 34 place seller facilitated by such marketplace provider, and with such 35 other information as the commissioner may prescribe; and (ii) any fail- 36 ure of the marketplace provider to collect the proper amount of tax in 37 regard to such sale was not the result of such marketplace seller 38 providing the marketplace provider with incorrect information. This 39 provision shall be administered in a manner consistent with subparagraph 40 (i) of paragraph one of subdivision (c) of this section as if a certif- 41 icate of collection were a resale or exemption certificate for purposes 42 of such subparagraph, including with regard to the completeness of such 43 certificate of collection and the timing of its acceptance by the 44 marketplace seller. Provided that, with regard to any sales of tangible 45 personal property or services taxable under section eleven hundred five 46 of this article by a marketplace seller that are facilitated by a 47 marketplace provider who is affiliated with such marketplace seller 48 within the meaning of paragraph one of subdivision (e) of section eleven 49 hundred one of this article, the marketplace seller shall be deemed 50 liable as a person under a duty to act for such marketplace provider for 51 purposes of subdivision one of section eleven hundred thirty-one of this 52 part. 53 (3) The commissioner may, in his or her discretion: (i) develop a 54 standard provision, or approve a provision developed by a marketplace 55 provider, in which the marketplace provider obligates itself to collect 56 the tax on behalf of all the marketplace sellers for whom such market-A. 9509--B 40 1 place provider facilitates sales of tangible personal property or 2 services taxable under section eleven hundred five of this article, with 3 respect to all sales that it facilitates for such sellers where delivery 4 occurs in the state; and (ii) provide by regulation or otherwise that 5 the inclusion of such provision in the publicly-available agreement 6 between the marketplace provider and marketplace seller will have the 7 same effect as a marketplace seller's acceptance of a certificate of 8 collection from such marketplace provider under paragraph two of this 9 subdivision. 10 § 4. Section 1133 of the tax law is amended by adding a new subdivi- 11 sion (f) to read as follows: 12 (f) A marketplace provider is relieved of liability under this section 13 for failure to collect the correct amount of tax to the extent that the 14 marketplace provider can show that the error was due to incorrect infor- 15 mation given to the marketplace provider by the marketplace seller. 16 Provided, however, this subdivision shall not apply if the marketplace 17 seller and the marketplace provider are affiliated within the meaning of 18 paragraph one of subdivision (e) of section eleven hundred one of this 19 article. 20 § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 21 amended by section 46 of part K of chapter 61 of the laws of 2011, is 22 amended to read as follows: 23 (4) The return of a vendor of tangible personal property or services 24 shall show such vendor's receipts from sales and the number of gallons 25 of any motor fuel or diesel motor fuel sold and also the aggregate value 26 of tangible personal property and services and number of gallons of such 27 fuels sold by the vendor, the use of which is subject to tax under this 28 article, and the amount of tax payable thereon pursuant to the 29 provisions of section eleven hundred thirty-seven of this part. The 30 return of a recipient of amusement charges shall show all such charges 31 and the amount of tax thereon, and the return of an operator required to 32 collect tax on rents shall show all rents received or charged and the 33 amount of tax thereon. The return of a marketplace seller shall exclude 34 the receipts from a sale of tangible personal property or services 35 facilitated by a marketplace provider if, in regard to such sale: (A) 36 the marketplace seller has timely received in good faith a properly 37 completed certificate of collection from the marketplace provider or the 38 marketplace provider has included a provision approved by the commis- 39 sioner in the publicly-available agreement between themselves and such 40 marketplace seller as described in subdivision (l) of section eleven 41 hundred thirty-two of this part, and (B) the information provided by the 42 marketplace seller to the marketplace provider about such tangible 43 personal property or services is accurate. 44 § 6. Section 1142 of the tax law is amended by adding two new subdivi- 45 sions 15 and 16 to read as follows: 46 15. To publish a list on the department's website of marketplace 47 providers whose certificates of authority has been revoked and, if 48 necessary to protect sales tax revenue, provide by regulation or other- 49 wise that a marketplace seller who is a vendor will be relieved of the 50 duty to collect tax for sales of tangible personal property or services 51 facilitated by a marketplace provider only if, in addition to the condi- 52 tions prescribed by paragraph two of subdivision (l) of section eleven 53 hundred thirty-two of this part being met, such marketplace provider is 54 not on such list at the commencement of the quarterly period covered 55 thereby.A. 9509--B 41 1 16. To enforce the penalties imposed on non-collecting sellers and 2 non-collecting marketplace providers provided by subdivision (i) of 3 section eleven hundred forty-five of this part by commencing a proceed- 4 ing under article seventy-two of the civil practice law and rules. This 5 means enforcing such penalties is in addition to any other lawful means 6 the commissioner may use to enforce such penalties. The venue for such 7 proceeding shall be Albany county. 8 § 7. The tax law is amended by adding a new section 1135-a to read as 9 follows: 10 § 1135-a. Reporting requirements. (a) (1) The following definitions 11 apply to the taxes imposed by this article and pursuant to the authority 12 of article twenty-nine of this chapter: 13 (A) Non-collecting seller means a person who makes sales of tangible 14 personal property or services, the use of which is taxed by this arti- 15 cle, but who is not required to obtain a certificate of authority under 16 section eleven hundred thirty-four of this part and who does not collect 17 tax or money purportedly as tax imposed by this article in regard to 18 tangible personal property or services delivered to a location in this 19 state. 20 (B) Non-collecting marketplace provider means a marketplace provider, 21 as defined by section eleven hundred one of this article, who is not 22 required to obtain a certificate of authority under section eleven 23 hundred thirty-four of this part and who does not collect tax or money 24 purportedly as tax imposed by this article in regard to tangible 25 personal property or services delivered to a location in this state. 26 (C) New York purchaser means any person who purchases tangible 27 personal property or services for delivery to a location in this state. 28 (D) Last known address of a New York purchaser means, for purposes of 29 this subdivision, subdivision sixteen of section eleven hundred forty- 30 two, and subdivision (i) of section eleven hundred forty-five of this 31 part, the purchaser's billing address or, if unknown, the purchaser's 32 shipping address. If no billing or shipping address is known, this term 33 shall mean the purchaser's last known e-mail address. 34 (2) The following requirements apply to a non-collecting seller: 35 (A) A non-collecting seller's records shall be made available to the 36 commissioner upon request. These records shall include, but are not 37 limited to, each New York purchaser's name and last known address as 38 defined by subparagraph (D) of paragraph one of this subdivision, and 39 the total of the non-collecting seller's receipts from the purchases of 40 the New York purchaser. 41 (B) Except as provided in paragraphs four and five of this subdivi- 42 sion, a non-collecting seller shall file an annual information return 43 with the commissioner. Such return shall include the total of the non- 44 collecting seller's receipts from purchases of tangible personal proper- 45 ty or services that were delivered to a location in this state for the 46 calendar year covered by the return, together with such other informa- 47 tion the commissioner may prescribe. Such return shall be filed on or 48 before January thirty-first of each year and shall cover the prior 49 calendar year, with the first such return due on January thirty-first, 50 two thousand twenty for the calendar year two thousand nineteen. 51 (C) Except as provided in paragraphs four and five of this subdivi- 52 sion, a non-collecting seller shall provide an annual statement of 53 purchases to each New York purchaser for purchases of tangible personal 54 property or services delivered to a location in this state from such 55 seller during the calendar year covered by the statement. Such annual 56 statement shall include: (i) a statement that sales or use tax was notA. 9509--B 42 1 collected on the purchaser's transactions in the prior calendar year and 2 that the purchaser may be required to remit such tax directly to the 3 commissioner; (ii) a list of transactions entered into during the prior 4 calendar year by such purchaser for delivery to a location into this 5 state showing, the date of each purchase, a general description of each 6 item purchased, and the amount paid for each item, including any ship- 7 ping or delivery charges; (iii) instructions for obtaining additional 8 information regarding whether and how to remit the sales or use tax to 9 the commissioner; and (iv) a statement that such sellers may be required 10 to annually report the aggregate dollar value of the purchaser's 11 purchases to the commissioner. Such statement shall be sent to each New 12 York purchaser on or before January thirty-first of each year, starting 13 in the year two thousand twenty, covering sales made in the prior calen- 14 dar year. Such statement shall be sent by mail in an envelope bearing 15 the statement "important tax information" to the New York purchaser's 16 last known address as defined by subparagraph (D) of paragraph one of 17 this subdivision, unless the purchaser's last known address is an e-mail 18 address, in which case the statement is to be sent by e-mail, the 19 subject line of which shall state "important tax information". 20 (D) Except as provided in paragraphs four and five of this subdivi- 21 sion, a non-collecting seller shall prominently display a notice on all 22 order forms, and upon each sales receipt or other memorandum of the 23 price, whether electronic or on paper, provided to a New York purchaser 24 making a purchase of tangible personal property or services to be deliv- 25 ered to a location in this state, including any screen that summarizes 26 the transaction prior to the completion of the sale. Such notice shall 27 indicate that neither New York state and local sales nor use tax is 28 being collected or remitted upon the transaction, and that the purchaser 29 may be required to remit such tax directly to the commissioner. 30 (3) A non-collecting seller shall keep records of the information 31 described in subparagraphs (A), (B) and (C) of paragraph two of this 32 subdivision, along with proof that it has provided purchasers with any 33 per-purchase notices or annual statements of purchases required. The 34 non-collecting seller shall keep such records for such periods and in 35 such manner as prescribed for records required to be maintained under 36 subdivisions (a) and (g) of section eleven hundred thirty-five of this 37 part, or as the commissioner may otherwise require by regulation. The 38 non-collecting seller shall make those records available for inspection 39 and examination at any time upon demand by the commissioner. 40 (4) The requirements in subparagraphs (B), (C) and (D) of paragraph 41 two of this subdivision do not apply to a non-collecting seller for any 42 calendar year in which the non-collecting seller's receipts from all New 43 York purchasers are less than five million dollars during the prior 44 calendar year. 45 (5) The requirements in subparagraphs (B), (C) and (D) of paragraph 46 two of this subdivision do not apply to a non-collecting seller in 47 regard to a particular sale of tangible personal property or services 48 subject to tax under subdivision (a) of section eleven hundred five of 49 this article if, the non-collecting seller can show that such sale was 50 facilitated by: (A) a marketplace provider from whom such non-collecting 51 seller has received in good faith a properly completed certificate of 52 collection as described in paragraph two of subdivision (l) of section 53 eleven hundred thirty-two of this part; or (B) a non-collecting market- 54 place provider who fulfilled the requirements of subparagraphs (B), (C) 55 and (D) of paragraph two of this subdivision on its behalf.A. 9509--B 43 1 (b) (1) A non-collecting marketplace provider shall perform the 2 requirements in paragraph two of subdivision (a) of this section on 3 behalf of a non-collecting seller for all sales it facilitates for such 4 non-collecting seller. 5 (2) Non-collecting marketplace providers shall also provide notice to 6 all non-collecting sellers for whom they facilitate sales of tangible 7 personal property or services that is delivered to a location in this 8 state, such notice shall include the following information: 9 (A) such sellers may be required to obtain a certificate of authority 10 under section eleven hundred thirty-four of this part and collect the 11 taxes imposed by this article and pursuant to the authority of article 12 twenty-nine of this chapter, or, where such sellers are not required to 13 obtain a certificate and collect tax, that such sellers are required to 14 comply with the requirements of this paragraph; 15 (B) the non-collecting marketplace provider will provide each seller's 16 name, address and aggregate amount of sales delivered to a location in 17 this state to the commissioner upon request; and 18 (C) the non-collecting marketplace provider is reporting the informa- 19 tion and sending the notices required by subparagraphs (B), (C) and (D) 20 of paragraph two of subdivision (a) of this section on behalf of the 21 non-collecting seller for such sale if it was facilitated by such non- 22 collecting marketplace provider. 23 (c) The commissioner may, in their discretion, modify, without adding 24 to, the information otherwise required to be included in the information 25 return, annual statement of purchases, or per-purchase notice required 26 by this subdivision if other states impose similar requirements, in 27 order to facilitate the compliance of non-collecting sellers. 28 § 8. Subdivision (i) of section 1145 of the tax law, as added by 29 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is 30 amended to read as follows: 31 (i)(1) Every person required to file an information return by section 32 eleven hundred thirty-five-a or subdivision (i) of section eleven 33 hundred thirty-six of this part, or an annual statement or notice 34 required by section eleven hundred thirty-five-a of this part who [(A)] 35 fails to provide any of the information required [by paragraph one or36two of subdivision (i) of section eleven hundred thirty-six of this part37for a vendor, operator, or recipient] to be provided in such information 38 return or notice, or who fails to perform the requirements of paragraph 39 two of subdivision (b) of section eleven hundred thirty-five-a of this 40 part, or who fails to include any such information that is true and 41 correct [(whether or not such a report is filed) for a vendor, operator,42or recipient, or (B) fails to provide the information required by para-43graph four of subdivision (i) of section eleven hundred thirty-six of44this part to a vendor, operator, or recipient specified in paragraph45four of subdivision (i) of section eleven hundred thirty-six of this46part], will, in addition to any other penalty provided in this article 47 or otherwise imposed by law, be subject to a penalty of five hundred 48 dollars for ten or fewer failures, and up to fifty dollars for each 49 additional failure. 50 (2) Every person failing to file an information return required by 51 section eleven hundred thirty-five-a or subdivision (i) of section elev- 52 en hundred thirty-six of this part or an annual statement or notice by 53 section eleven hundred thirty-five-a of this part within the time 54 required [by subdivision (i) of section eleven hundred thirty-six of55this part], will, in addition to any other penalty provided for in this 56 article or otherwise imposed by law, be subject to a penalty in anA. 9509--B 44 1 amount not to exceed two thousand dollars for each such failure, 2 provided that the minimum penalty under this paragraph is five hundred 3 dollars. 4 (3) In no event will the penalty imposed by paragraph one of this 5 subdivision, or the aggregate of the penalties imposed under paragraphs 6 one and two of this subdivision, exceed ten thousand dollars for any 7 annual filing period [as described by paragraph three of subdivision (i)8of section eleven hundred thirty-six of this part]. 9 (4) If the commissioner determines that any of the failures that are 10 subject to penalty under this subdivision was entirely due to reasonable 11 cause and not due to willful neglect, the commissioner must remit the 12 penalty imposed under this subdivision. These penalties will be deter- 13 mined, assessed, collected, paid, disposed of and enforced in the same 14 manner as taxes imposed by this article and all the provisions of this 15 article relating thereto will be deemed also to refer to these penal- 16 ties. 17 § 8-a. Subdivision (c) of section 1101 of the tax law is amended by 18 adding a new paragraph 9 to read as follows: 19 (9) App. A software application used on an internet website or smart- 20 phone. 21 § 8-b. Section 1132 of the tax law is amended by adding a new subdivi- 22 sion (m) to read as follows: 23 (m)(1) A marketplace provider under subdivision (e) of section eleven 24 hundred one of this article may enter into a voluntary agreement with 25 the commissioner, under which the marketplace provider shall collect and 26 remit taxes on or after the effective date of the voluntary agreement; 27 provided however, that when a marketplace provider enters into such a 28 voluntary agreement, it shall be required to: (i) collect the applicable 29 taxes arising from purchases of tangible personal property or services; 30 (ii) comply with all the provisions of this article and article twenty- 31 nine of this chapter and any regulations adopted pursuant thereto; (iii) 32 register to collect tax under section eleven hundred thirty-four of this 33 part; and (iv) retain records and information as required by the commis- 34 sioner and cooperate with the commissioner to ensure the proper 35 collection and remittance of tax imposed, collected, or required to be 36 collected under this article and article twenty-nine of this chapter. 37 (2) In carrying out the obligations imposed under this section, a 38 marketplace provider shall have all the duties, benefits, and entitle- 39 ments of a person required to collect tax under this article and article 40 twenty-nine of this chapter. 41 § 9. Severability clause. If any clause, sentence, paragraph, subdivi- 42 sion, section, or part of this act shall be adjudged by any court of 43 competent jurisdiction to be invalid, such judgment shall not affect, 44 impair, or invalidate the remainder thereof, but shall be confined in 45 its operation to the clause, sentence, paragraph, subdivision, section, 46 or part thereof directly involved in the controversy in which such judg- 47 ment shall have been rendered. It is hereby declared to be the intent of 48 the legislature that this act would have been enacted even if such 49 invalid provision had not been included herein. 50 § 10. This act shall take effect immediately and shall apply to sales 51 made on or after September 1, 2018; provided, however, that the require- 52 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of 53 section 1135-a of the tax law, as added by section seven of this act, 54 shall apply to sales made on or after January 1, 2019. The marketplace 55 provider authorized to collect legal taxes pursuant to section eight-bA. 9509--B 45 1 of this act shall comply with local laws and regulations consistent with 2 the requirements provided therein. 3 PART BB 4 Section 1. Subdivision 2 of section 470 of the tax law, as amended by 5 section 15 of part D of chapter 134 of the laws of 2010, is amended to 6 read as follows: 7 2. "Tobacco products." Any cigar, including [a] little [cigar] cigars, 8 vapor products, or tobacco, other than cigarettes, intended for consump- 9 tion by smoking, chewing, inhaling vapors or as snuff. 10 § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 11 61 of the laws of 1989, is amended to read as follows: 12 12. "Distributor." Any person who imports or causes to be imported 13 into this state any tobacco product (in excess of fifty cigars [or], one 14 pound of tobacco or one hundred milliliters of vapor product) for sale, 15 or who manufactures any tobacco product in this state, and any person 16 within or without the state who is authorized by the commissioner of 17 taxation and finance to make returns and pay the tax on tobacco products 18 sold, shipped or delivered by him to any person in the state. 19 § 3. Section 470 of the tax law is amended by adding a new subdivision 20 20 to read as follows: 21 20. "Vapor product." Any noncombustible liquid or gel, regardless of 22 the presence of nicotine therein, that is manufactured into a finished 23 product for use in an electronic cigarette, electronic cigar, electronic 24 cigarillo, electronic pipe, vaping pen, hookah pen or other similar 25 device. "Vapor product" shall not include any product approved by the 26 United States food and drug administration as a drug or medical device, 27 or approved for use pursuant to section three thirty-three hundred 28 sixty-two of the public health law. 29 § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, 30 as amended by section 18 of part D of chapter 134 of the laws of 2010, 31 is amended to read as follows: 32 (a) Such tax on tobacco products other than snuff [and], little cigars 33 and vapor products shall be at the rate of seventy-five percent of the 34 wholesale price, and is intended to be imposed only once upon the sale 35 of any tobacco products other than snuff [and], little cigars and vapor 36 products. 37 § 5. Subdivision 1 of section 471-b of the tax law is amended by 38 adding a new paragraph (d) to read as follows: 39 (d) Such tax on vapor products shall be at a rate of forty cents per 40 fluid milliliter, or part thereof, of the vapor product. All invoices 41 for vapor products issued by distributors and wholesalers must state the 42 amount of vapor product in milliliters. 43 § 6. Subdivision (a) of section 471-c of the tax law, as amended by 44 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) 45 and (ii) as amended by section 20 and paragraph (iii) as added by 46 section 21 of part D of chapter 134 of the laws of 2010, is amended to 47 read as follows: 48 (a) There is hereby imposed and shall be paid a tax on all tobacco 49 products used in the state by any person, except that no such tax shall 50 be imposed (1) if the tax provided in section four hundred seventy-one-b 51 of this article is paid, or (2) on the use of tobacco products which are 52 exempt from the tax imposed by said section, or (3) on the use of two 53 hundred fifty cigars or less, [or] five pounds or less of tobacco other 54 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your-A. 9509--B 46 1 own tobacco or five hundred milliliters or less of vapor product brought 2 into the state on, or in the possession of, any person. 3 (i) Such tax on tobacco products other than snuff [and], little cigars 4 and vapor products shall be at the rate of seventy-five percent of the 5 wholesale price. 6 (ii) Such tax on snuff shall be at the rate of two dollars per ounce 7 and a proportionate rate on any fractional parts of an ounce, provided 8 that cans or packages of snuff with a net weight of less than one ounce 9 shall be taxed at the equivalent rate of cans or packages weighing one 10 ounce. Such tax shall be computed based on the net weight as listed by 11 the manufacturer. 12 (iii) Such tax on little cigars shall be at the same rate imposed on 13 cigarettes under this article and is intended to be imposed only once 14 upon the sale of any little cigars. 15 (iv) Such tax on vapor products shall be at a rate of forty cents per 16 fluid milliliter of the vapor product. All invoices for vapor products 17 issued by distributors and wholesalers must state the amount of vapor 18 product in milliliters. 19 § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- 20 ter 552 of the laws of 2008, is amended to read as follows: 21 2. Every person who shall possess or transport more than two hundred 22 fifty cigars, [or] more than five pounds of tobacco other than roll- 23 your-own tobacco, [or] more than thirty-six ounces of roll-your-own 24 tobacco or more than five hundred milliliters of vapor product upon the 25 public highways, roads or streets of the state, shall be required to 26 have in his actual possession invoices or delivery tickets for such 27 tobacco products. Such invoices or delivery tickets shall show the name 28 and address of the consignor or seller, the name and address of the 29 consignee or purchaser, the quantity and brands of the tobacco products 30 transported, and the name and address of the person who has or shall 31 assume the payment of the tax and the wholesale price or the tax paid or 32 payable. The absence of such invoices or delivery tickets shall be prima 33 facie evidence that such person is a dealer in tobacco products in this 34 state and subject to the requirements of this article. 35 § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 36 61 of the laws of 1989, is amended to read as follows: 37 3. Every dealer or distributor or employee thereof, or other person 38 acting on behalf of a dealer or distributor, who shall possess or trans- 39 port more than fifty cigars [or], more than one pound of tobacco or more 40 than one hundred milliliters of vapor product upon the public highways, 41 roads or streets of the state, shall be required to have in his actual 42 possession invoices or delivery tickets for such tobacco products. Such 43 invoices or delivery tickets shall show the name and address of the 44 consignor or seller, the name and address of the consignee or purchaser, 45 the quantity and brands of the tobacco products transported, and the 46 name and address of the person who has or shall assume the payment of 47 the tax and the wholesale price or the tax paid or payable. The absence 48 of such invoices or delivery tickets shall be prima facie evidence that 49 the tax imposed by this article on tobacco products has not been paid 50 and is due and owing. 51 § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 52 of the tax law, as amended by section 1 of part O of chapter 59 of the 53 laws of 2013, is amended to read as follows: 54 (i) In addition to any other penalty imposed by this article, the 55 commissioner may (A) impose a penalty of not more than six hundred 56 dollars for each two hundred cigarettes, or fraction thereof, in excessA. 9509--B 47 1 of one thousand cigarettes in unstamped or unlawfully stamped packages 2 in the possession or under the control of any person or (B) impose a 3 penalty of not more than two hundred dollars for each ten unaffixed 4 false, altered or counterfeit cigarette tax stamps, imprints or 5 impressions, or fraction thereof, in the possession or under the control 6 of any person. In addition, the commissioner may impose a penalty of not 7 more than seventy-five dollars for each fifty cigars [or], one pound of 8 tobacco[,] or one hundred milliliters of vapor product, or fraction 9 thereof, in excess of two hundred fifty cigars [or], five pounds of 10 tobacco or five hundred milliliters of vapor product in the possession 11 or under the control of any person and a penalty of not more than one 12 hundred fifty dollars for each fifty cigars [or], pound of tobacco or 13 one hundred milliliters of vapor product, or fraction thereof, in excess 14 of five hundred cigars [or], ten pounds of tobacco or one thousand 15 milliliters of vapor product in the possession or under the control of 16 any person, with respect to which the tobacco products tax has not been 17 paid or assumed by a distributor or tobacco products dealer; provided, 18 however, that any such penalty imposed shall not exceed seven thousand 19 five hundred dollars in the aggregate. The commissioner may impose a 20 penalty of not more than seventy-five dollars for each fifty cigars 21 [or], one pound of tobacco or one hundred milliliters of vapor product, 22 or fraction thereof, in excess of fifty cigars [or], one pound of tobac- 23 co or one hundred milliliters of vapor product in the possession or 24 under the control of any tobacco products dealer or distributor 25 appointed by the commissioner, and a penalty of not more than one 26 hundred fifty dollars for each fifty cigars [or], pound of tobacco, or 27 one hundred milliliters of vapor product, or fraction thereof, in excess 28 of two hundred fifty cigars [or], five pounds of tobacco or five hundred 29 milliliters of vapor product in the possession or under the control of 30 any such dealer or distributor, with respect to which the tobacco 31 products tax has not been paid or assumed by a distributor or a tobacco 32 products dealer; provided, however, that any such penalty imposed shall 33 not exceed fifteen thousand dollars in the aggregate. 34 § 10. Items (I) and (II) of clause (B) and items (I) and (II) of 35 clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of 36 section 481 of the tax law, as added by chapter 262 of the laws of 2000, 37 are amended to read as follows: 38 (I) not less than twenty-five dollars but not more than one hundred 39 dollars for each fifty cigars [or], one pound of tobacco or one hundred 40 milliliters of vapor product, or fraction thereof, in excess of two 41 hundred fifty cigars [or], five pounds of tobacco or five hundred milli- 42 liters of vapor product knowingly in the possession or knowingly under 43 the control of any person, with respect to which the tobacco products 44 tax has not been paid or assumed by a distributor or tobacco products 45 dealer; and (II) not less than fifty dollars but not more than two 46 hundred dollars for each fifty cigars [or], pound of tobacco or one 47 hundred milliliters of vapor product, or fraction thereof, in excess of 48 five hundred cigars [or], ten pounds of tobacco or one thousand millili- 49 ters of vapor product knowingly in the possession or knowingly under the 50 control of any person, with respect to which the tobacco products tax 51 has not been paid or assumed by a distributor or tobacco products deal- 52 er; provided, however, that any such penalty imposed under this clause 53 shall not exceed ten thousand dollars in the aggregate. 54 (I) not less than twenty-five dollars but not more than one hundred 55 dollars for each fifty cigars [or], one pound of tobacco or one hundred 56 milliliters of vapor product, or fraction thereof, in excess of fiftyA. 9509--B 48 1 cigars [or], one pound of tobacco or one hundred milliliters of vapor 2 product knowingly in the possession or knowingly under the control of 3 any person, with respect to which the tobacco products tax has not been 4 paid or assumed by a distributor or tobacco products dealer; and (II) 5 not less than fifty dollars but not more than two hundred dollars for 6 each fifty cigars [or], pound of tobacco or one hundred milliliters of 7 vapor product, or fraction thereof, in excess of two hundred fifty 8 cigars [or], five pounds of tobacco or five hundred milliliters of vapor 9 product knowingly in the possession or knowingly under the control of 10 any person, with respect to which the tobacco products tax has not been 11 paid or assumed by a distributor or a tobacco products dealer; provided, 12 however, that any such penalty imposed under this clause shall not 13 exceed twenty thousand dollars in the aggregate. 14 § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as 15 amended by chapter 552 of the laws of 2008, is amended to read as 16 follows: 17 (a) The possession within this state of more than four hundred ciga- 18 rettes in unstamped or unlawfully stamped packages [or], more than two 19 hundred fifty cigars, [or] more than five pounds of tobacco other than 20 roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own 21 tobacco by any person other than an agent or distributor, as the case 22 may be, or five hundred milliliters or more of vapor product at any one 23 time shall be presumptive evidence that such cigarettes or tobacco 24 products are subject to tax as provided by this article. 25 § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as 26 amended by section 28 of subpart I of part V-1 of chapter 57 of the laws 27 of 2009, are amended to read as follows: 28 (a) Any person who willfully attempts in any manner to evade or defeat 29 the taxes imposed by article twenty of this chapter or payment thereof 30 on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars 31 or more, [or] (iii) four hundred forty pounds of tobacco or more, (iv) 32 forty-four thousand milliliters of vapor product or more or has previ- 33 ously been convicted two or more times of a violation of paragraph one 34 of this subdivision shall be guilty of a class E felony. 35 (h) (1) Any dealer, other than a distributor appointed by the commis- 36 sioner [of taxation and finance] under article twenty of this chapter, 37 who shall knowingly transport or have in his custody, possession or 38 under his control more than ten pounds of tobacco [or], more than five 39 hundred cigars or more than one thousand milliliters of vapor product 40 upon which the taxes imposed by article twenty of this chapter have not 41 been assumed or paid by a distributor appointed by the commissioner [of42taxation and finance] under article twenty of this chapter, or other 43 person treated as a distributor pursuant to section four hundred seven- 44 ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by 45 a fine of not more than five thousand dollars or by a term of imprison- 46 ment not to exceed thirty days. 47 (2) Any person, other than a dealer or a distributor appointed by the 48 commissioner under article twenty of this chapter, who shall knowingly 49 transport or have in his custody, possession or under his control more 50 than fifteen pounds of tobacco [or], more than seven hundred fifty 51 cigars or more than fifteen hundred milliliters or more of vapor product 52 upon which the taxes imposed by article twenty of this chapter have not 53 been assumed or paid by a distributor appointed by the commissioner 54 under article twenty of this chapter, or other person treated as a 55 distributor pursuant to section four hundred seventy-one-d of this chap- 56 ter shall be guilty of a misdemeanor punishable by a fine of not moreA. 9509--B 49 1 than five thousand dollars or by a term of imprisonment not to exceed 2 thirty days. 3 (3) Any person, other than a distributor appointed by the commissioner 4 under article twenty of this chapter, who shall knowingly transport or 5 have in his custody, possession or under his control twenty-five hundred 6 or more cigars [or], fifty or more pounds of tobacco or five thousand 7 milliliters or more of vapor product upon which the taxes imposed by 8 article twenty of this chapter have not been assumed or paid by a 9 distributor appointed by the commissioner under article twenty of this 10 chapter, or other person treated as a distributor pursuant to section 11 four hundred seventy-one-d of this chapter shall be guilty of a misde- 12 meanor. Provided further, that any person who has twice been convicted 13 under this subdivision shall be guilty of a class E felony for any 14 subsequent violation of this section, regardless of the amount of tobac- 15 co products involved in such violation. 16 (4) For purposes of this subdivision, such person shall knowingly 17 transport or have in his custody, possession or under his control tobac- 18 co [or], cigars or vapor products on which such taxes have not been 19 assumed paid by a distributor appointed by the commissioner where such 20 person has knowledge of the requirement of the tax on tobacco products 21 and, where to his knowledge, such taxes have not been assumed or paid on 22 such tobacco products by a distributor appointed by the commissioner of 23 taxation and finance. 24 § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as 25 added by chapter 61 of the laws of 1989, are amended to read as follows: 26 (a) Any person who, while not appointed as a distributor of tobacco 27 products pursuant to the provisions of article twenty of this chapter, 28 imports or causes to be imported into the state more than fifty cigars 29 [or], more than one pound of tobacco[,] or more than one hundred milli- 30 liters of vapor product for sale within the state, or produces, manufac- 31 tures or compounds tobacco products within the state shall be guilty of 32 a misdemeanor punishable by a fine of not more than five thousand 33 dollars or by a term of imprisonment not to exceed thirty days. If, 34 within any ninety day period, one thousand or more cigars [or five35hundred], twenty pounds or more of tobacco or two thousand milliliters 36 or more of vapor product are imported or caused to be imported into the 37 state for sale within the state or are produced, manufactured or 38 compounded within the state by any person while not appointed as a 39 distributor of tobacco products, such person shall be guilty of a misde- 40 meanor. Provided further, that any person who has twice been convicted 41 under this section shall be guilty of a class E felony for any subse- 42 quent violation of this section, regardless of the amount of tobacco 43 products involved in such violation. 44 (b) For purposes of this section, the possession or transportation 45 within this state by any person, other than a tobacco products distribu- 46 tor appointed by the commissioner of taxation and finance, at any one 47 time of seven hundred fifty or more cigars [or], fifteen pounds or more 48 of tobacco or fifteen hundred milliliters or more of vapor product shall 49 be presumptive evidence that such tobacco products are possessed or 50 transported for the purpose of sale and are subject to the tax imposed 51 by section four hundred seventy-one-b of this chapter. With respect to 52 such possession or transportation, any provisions of article twenty of 53 this chapter providing for a time period during which the tax imposed by 54 such article may be paid shall not apply. 55 § 14. Subdivision (a) of section 1846-a of the tax law, as amended by 56 chapter 556 of the laws of 2011, is amended to read as follows:A. 9509--B 50 1 (a) Whenever a police officer designated in section 1.20 of the crimi- 2 nal procedure law or a peace officer designated in subdivision four of 3 section 2.10 of such law, acting pursuant to his special duties, shall 4 discover any tobacco products in excess of five hundred cigars [or], ten 5 pounds of tobacco or one thousand milliliters of vapor product which are 6 being imported for sale in the state where the person importing or caus- 7 ing such tobacco products to be imported has not been appointed as a 8 distributor pursuant to section four hundred seventy-two of this chap- 9 ter, such police officer or peace officer is hereby authorized and 10 empowered forthwith to seize and take possession of such tobacco 11 products. Such tobacco products seized by a police officer or peace 12 officer shall be turned over to the commissioner. Such seized tobacco 13 products shall be forfeited to the state. All tobacco products forfeited 14 to the state shall be destroyed or used for law enforcement purposes, 15 except that tobacco products that violate, or are suspected of violat- 16 ing, federal trademark laws or import laws shall not be used for law 17 enforcement purposes. If the commissioner determines the tobacco 18 products may not be used for law enforcement purposes, the commissioner 19 must, within a reasonable time thereafter, upon publication in the state 20 registry of a notice to such effect before the day of destruction, 21 destroy such forfeited tobacco products. The commissioner may, prior to 22 any destruction of tobacco products, permit the true holder of the 23 trademark rights in the tobacco products to inspect such forfeited 24 products in order to assist in any investigation regarding such tobacco 25 products. 26 § 15. Subdivision (b) of section 1847 of the tax law, as added by 27 chapter 61 of the laws of 1989, is amended to read as follows: 28 (b) Any peace officer designated in subdivision four of section 2.10 29 of the criminal procedure law, acting pursuant to his special duties, or 30 any police officer designated in section 1.20 of the criminal procedure 31 law may seize any vehicle or other means of transportation used to 32 import tobacco products in excess of five hundred cigars [or], ten 33 pounds of tobacco or one thousand milliliters of vapor product for sale 34 where the person importing or causing such tobacco products to be 35 imported has not been appointed a distributor pursuant to section four 36 hundred seventy-two of this chapter, other than a vehicle or other means 37 of transportation used by any person as a common carrier in transaction 38 of business as such common carrier, and such vehicle or other means of 39 transportation shall be subject to forfeiture as hereinafter in this 40 section provided. 41 § 16. This act shall take effect on the one hundred eightieth day 42 after it shall have become a law, and shall apply to vapor products that 43 first become subject to taxation under article 20 of the tax law on or 44 after such date. 45 PART CC 46 Section 1. The tax law is amended by adding a new article 20-C to read 47 as follows: 48 ARTICLE 20-C 49 OPIOID EPIDEMIC SURCHARGE 50 Section 492. Definitions. 51 493. Imposition of surcharge. 52 494. Returns to be secret. 53 § 492. Definitions. When used in this article, the following terms 54 shall have the following meanings:A. 9509--B 51 1 1. "Opioid" shall mean an "opiate" as defined by subdivision twenty- 2 three of section thirty-three hundred two of the public health law, and 3 any natural, synthetic, or semisynthetic "narcotic drug" as defined by 4 subdivision twenty-two of such section, that has agonist, partial agon- 5 ist, or agonist/antagonist morphine-like activities or effects similar 6 to natural opium alkaloids and any derivative, congener, or combination 7 thereof, listed in schedules II-IV of section thirty-three hundred six 8 of the public health law. Provided however, for the purposes of this 9 article, an "opioid" shall not include any drug approved by the food and 10 drug administration for the purpose of treating a substance use disor- 11 der, as defined in section 1.03 of the mental hygiene law, which shall 12 include but not be limited to methadone, buprenorphine and naltrexone. 13 2. "Unit" shall mean the dosage form of an opioid-containing drug 14 including, but not limited to, tablets, capsules, suppositories, topical 15 (transdermal), buccal or any other dosage form, such as weight or 16 volume. 17 3. "Unit strength" shall mean the amount of opioid in a unit, as meas- 18 ured by weight, volume, concentration or other metric. 19 4. "Morphine milligram equivalent conversion factor" shall mean that 20 reference standard of a particular opioid as it relates in potency to 21 morphine as determined by the commissioner of health. 22 5. "Morphine milligram equivalent" shall mean a unit multiplied by its 23 unit strength multiplied by the morphine milligram equivalent conversion 24 factor of the opioid contained in such unit. 25 6. "Establishment" shall mean any person, firm, corporation or associ- 26 ation required to be registered with the education department pursuant 27 to section sixty-eight hundred eight or section sixty-eight hundred 28 eight-b of the education law, as well as any person, firm, corporation 29 or association that would be required to be registered with the educa- 30 tion department pursuant to such section sixty-eight hundred eight-b but 31 for the exception in subdivision two of such section. 32 7. "Invoice" shall mean the invoice, sales slip, memorandum of sale, 33 or other document evidencing a sale of an opioid. 34 § 493. Imposition of surcharge. 1. There is hereby imposed a surcharge 35 on the sale of any opioid of two and one-half cents per morphine milli- 36 gram equivalent sold. Such surcharge shall be imposed on the first sale 37 of such opioid in the state, except that such surcharge shall not apply 38 when such sale is to any program operated pursuant to article thirty-two 39 of the mental hygiene law or article forty of the public health law or 40 to sales to pharmacies as defined by section sixty-eight hundred two of 41 the education law. This surcharge shall be charged against, and be paid 42 by, the establishment making the first sale of such opioid in the state, 43 and shall not be added as a separate charge or line item on any invoice 44 given to the customer or otherwise passed down to the customer. However, 45 an establishment liable for the surcharge imposed by this article shall 46 clearly note on the invoice for the first sale of an opioid in the state 47 its liability for the surcharge, along with its name, address, and 48 taxpayer identification number. All sales of an opioid in this state 49 shall be presumed to be the first sale of such, and shall also be 50 presumed to be subject to the surcharge imposed by this article, unless 51 the contrary is established by the seller. 52 2. Every establishment liable for the surcharge imposed by this arti- 53 cle shall file with the commissioner a return, on forms prescribed by 54 the commissioner, indicating the total morphine milligram equivalent of 55 opioids it sold in the state, the total morphine milligram equivalent of 56 such opioids that are subject to the surcharge imposed by this article,A. 9509--B 52 1 the amount of surcharge due thereon, and such further information as the 2 commissioner may require. Such returns shall be due on or before the 3 twentieth day of each month, and shall cover all opioid sales in the 4 state made in the month prior, except that the first return required to 5 be filed pursuant to this section shall be due on or before January 6 twentieth, two thousand nineteen and shall cover all opioid sales occur- 7 ring in the period between the effective date of this article and Decem- 8 ber thirty-first, two thousand eighteen. Every establishment required 9 to file a return under this section shall, at the time of filing such 10 return, pay to the commissioner the total amount of surcharge due for 11 the period covered by such return. If a return is not filed when due, 12 the surcharge shall be due on the day on which the return is required to 13 be filed. The commissioner may require that the returns and payments 14 required by this article be filed or paid electronically. 15 3. Establishments making sales of opioids in this state shall maintain 16 all invoices pertaining to such sales for six years after the return 17 reporting such sales is filed with the commissioner, unless the commis- 18 sioner provides for a different retention period by rule or regulation. 19 The establishment shall produce such records upon demand by the commis- 20 sioner. 21 4. Whenever the commissioner shall determine that any moneys received 22 under the provisions of this article were paid in error, he or she may 23 cause the same to be refunded, with interest, except that no interest 24 shall be allowed or paid if the amount thereof would be less than one 25 dollar. Such interest shall be at the overpayment rate set by the 26 commissioner pursuant to subdivision twenty-sixth of section one hundred 27 seventy-one of this chapter, or if no rate is set, at the rate of six 28 percent per annum, from the date when the surcharge, penalty or interest 29 to be refunded was paid to a date preceding the date of the refund check 30 by not more than thirty days. Provided, however, that for the purposes 31 of this subdivision, any surcharge paid before the last day prescribed 32 for its payment shall be deemed to have been paid on such last day. Such 33 moneys received under the provisions of this article that the commis- 34 sioner shall determine were paid in error, may be refunded out of funds 35 in the custody of the comptroller to the credit of such surcharges 36 provided an application therefor is filed with the commissioner within 37 two years from the time the erroneous payment was made. 38 5. The provisions of article twenty-seven of this chapter shall apply 39 to the surcharge imposed by this article in the same manner and with the 40 same force and effect as if the language of such article had been incor- 41 porated in full into this section and had expressly referred to the 42 surcharge imposed by this article, except to the extent that any 43 provision of such article is either inconsistent with a provision of 44 this article or is not relevant to this article. 45 6. (a) The surcharges, interest, and penalties imposed by this article 46 and collected or received by the commissioner shall be deposited daily 47 with such responsible banks, banking houses or trust companies, as may 48 be designated by the state comptroller, to the credit of the opioid 49 prevention, treatment and recovery account established pursuant to 50 section ninety-seven-aaaaa of the state finance law. An account may be 51 established in one or more of such depositories. Such deposits will be 52 kept separate and apart from all other money in the possession of the 53 state comptroller. The state comptroller shall require adequate security 54 from all such depositories. Of the total revenue collected or received 55 under this article, the state comptroller shall retain such amount as 56 the commissioner may determine to be necessary for refunds under thisA. 9509--B 53 1 article. The commissioner is authorized and directed to deduct from the 2 amounts it receives under this article, before deposit into the trust 3 accounts designated by the state comptroller, a reasonable amount neces- 4 sary to effectuate refunds of appropriations of the department to reim- 5 burse the department for the costs incurred to administer, collect and 6 distribute the surcharge imposed by this article. 7 (b) On or before the twelfth and twenty-sixth day of each succeeding 8 month, after reserving such amount for such refunds and deducting such 9 amounts for such costs, as provided for in paragraph (a) of this subdi- 10 vision, the commissioner shall certify to the state comptroller the 11 amount of all revenues so received during the prior month because of the 12 surcharges, interest and penalties so imposed. The amount of revenues so 13 certified shall be paid over by the fifteenth and the final business day 14 of each succeeding month from such account into the opioid prevention, 15 treatment and recovery account established pursuant to section ninety- 16 seven-aaaaa of the state finance law. 17 7. The commissioners of education and health shall cooperate with the 18 commissioner in administering this surcharge, including sharing with the 19 commissioner pertinent information about establishments upon the request 20 of the commissioner. 21 § 494. Returns to be secret. 1. Except in accordance with proper judi- 22 cial order or as in this section or otherwise provided by law, it shall 23 be unlawful for the commissioner, any officer or employee of the depart- 24 ment, or any officer or person who, pursuant to this section, is permit- 25 ted to inspect any return or report or to whom a copy, an abstract or a 26 portion of any return or report is furnished, or to whom any information 27 contained in any return or report is furnished, or any person engaged or 28 retained by such department on an independent contract basis or any 29 person who in any manner may acquire knowledge of the contents of a 30 return or report filed pursuant to this article to divulge or make known 31 in any manner the contents or any other information relating to the 32 business of an establishment contained in any return or report required 33 under this article. The officers charged with the custody of such 34 returns or reports shall not be required to produce any of them or 35 evidence of anything contained in them in any action or proceeding in 36 any court, except on behalf of the state, the department of health, the 37 department of education or the commissioner in an action or proceeding 38 under the provisions of this chapter or on behalf of the state or the 39 commissioner in any other action or proceeding involving the collection 40 of a tax due under this chapter to which the state or the commissioner 41 is a party or a claimant or on behalf of any party to any action or 42 proceeding under the provisions of this article, when the returns or the 43 reports or the facts shown thereby are directly involved in such action 44 or proceeding, in any of which events the court may require the 45 production of, and may admit in evidence so much of said returns or 46 reports or of the facts shown thereby as are pertinent to the action or 47 proceeding and no more. Nothing in this section shall be construed to 48 prohibit the commissioner, in his or her discretion, from allowing the 49 inspection or delivery of a certified copy of any return or report filed 50 under this article, or from providing any information contained in any 51 such return or report, by or to a duly authorized officer or employee of 52 the state department of health or the department of education; nor to 53 prohibit the inspection or delivery of a certified copy of any return or 54 report filed under this article, or the provision of any information 55 contained therein, by or to the attorney general or other legal repre- 56 sentatives of the state when an action shall have been recommended orA. 9509--B 54 1 commenced pursuant to this chapter in which such returns or reports or 2 the facts shown thereby are directly involved; nor to prohibit the 3 commissioner from providing or certifying to the division of budget or 4 the comptroller the total number of returns or reports filed under this 5 article in any reporting period and the total collections received ther- 6 efrom; nor to prohibit the inspection of the returns or reports required 7 under this article by the comptroller or duly designated officer or 8 employee of the department of audit and control, for purposes of the 9 audit of a refund of any surcharge paid by an establishment or other 10 person under this article; nor to prohibit the delivery to an establish- 11 ment, or a duly authorized representative of such establishment, a 12 certified copy of any return or report filed by such establishment 13 pursuant to this article, nor to prohibit the publication of statistics 14 so classified as to prevent the identification of particular returns or 15 reports and the items thereof. 16 2. (a) Any officer or employee of the state who willfully violates the 17 provisions of subdivision one of this section shall be dismissed from 18 office and be incapable of holding any public office in this state for a 19 period of five years thereafter. 20 (b) A violation of this article shall be considered a violation of 21 secrecy provisions under article thirty-seven of this chapter. 22 § 2. Section 1825 of the tax law, as amended by section 20 of part AAA 23 of chapter 59 of the laws of 2017, is amended to read as follows: 24 § 1825. Violation of secrecy provisions of the tax law.--Any person 25 who violates the provisions of [subdivision (b) of section twenty-one,] 26 subdivision one of section two hundred two, subdivision eight of section 27 two hundred eleven, subdivision (a) of section three hundred fourteen, 28 subdivision one or two of section four hundred thirty-seven, section 29 four hundred eighty-seven, section four hundred ninety-four, subdivision 30 one or two of section five hundred fourteen, subsection (e) of section 31 six hundred ninety-seven, subsection (a) of section nine hundred nine- 32 ty-four, subdivision (a) of section eleven hundred forty-six, section 33 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- 34 sion (a) of section fourteen hundred eighteen, subdivision (a) of 35 section fifteen hundred eighteen, subdivision (a) of section fifteen 36 hundred fifty-five of this chapter, and subdivision (e) of section 37 11-1797 of the administrative code of the city of New York shall be 38 guilty of a misdemeanor. 39 § 3. The state finance law is amended by adding a new section 97-aaaaa 40 to read as follows: 41 § 97-aaaaa. Opioid prevention, treatment and recovery account. 1. 42 There is hereby established in the joint custody of the state comp- 43 troller and the commissioner of taxation and finance an account of the 44 miscellaneous special revenue account to be known as the "opioid 45 prevention, treatment and recovery account". 46 2. Moneys in the opioid prevention, treatment and recovery account 47 shall be kept separate and shall not be commingled with any other moneys 48 in the custody of the state comptroller and the commissioner of taxation 49 and finance. 50 3. The opioid prevention, treatment and recovery account shall consist 51 of moneys appropriated for the purpose of such account, moneys trans- 52 ferred to such account pursuant to law, contributions consisting of 53 promises or grants of any money or property of any kind or value, or any 54 other thing of value, including grants or other financial assistance 55 from any agency of government and moneys required by the provisions of 56 this section or any other law to be paid into or credited to thisA. 9509--B 55 1 account. The account shall also consist of moneys received from any 2 litigation or enforcement actions initiated against opioid pharmaceu- 3 tical manufacturers, distributors and wholesalers. 4 4. Moneys of the opioid prevention, treatment and recovery account, 5 when allocated, shall be available, subject to the approval of the 6 director of the budget, to support programs operated by the office of 7 alcoholism and substance abuse services or agencies certified, author- 8 ized, approved or otherwise funded by the office of alcoholism and 9 substance abuse services to provide opioid treatment, recovery and 10 prevention and education services; and to provide support for the 11 prescription monitoring program registry if established. 12 5. At the request of the budget director, the state comptroller shall 13 transfer moneys to support the costs of opioid treatment, recovery, 14 prevention, education services, and other related programs, from the 15 opioid prevention, treatment and recovery account to any other fund of 16 the state. 17 6. Notwithstanding the provisions of any general or special law, no 18 moneys shall be available from the opioid prevention, treatment and 19 recovery account until a certificate of allocation and a schedule of 20 amounts to be available therefor shall have been issued by the director 21 of the budget, upon the recommendation of the commissioner of the office 22 of alcoholism and substance abuse services, and a copy of such certif- 23 icate filed with the comptroller, the chairman of the senate finance 24 committee and the chairman of the assembly ways and means committee. 25 Such certificate may be amended from time to time by the director of the 26 budget, upon the recommendation of the commissioner of the office of 27 alcoholism and substance abuse services, and a copy of such amendment 28 shall be filed with the comptroller, the chairman of the senate finance 29 committee and the chairman of the assembly ways and means committee. 30 7. The moneys, when allocated, shall be paid out of the opioid 31 prevention, treatment and recovery account, pursuant to subdivision four 32 of this section, and subject to the approval of the director of the 33 budget, on the audit and warrant of the comptroller on vouchers certi- 34 fied or approved by (a) the commissioner of the office of alcoholism and 35 substance abuse services or his or her designee; or (b) the commissioner 36 of health or his or her designee. 37 § 4. This act shall take effect July 1, 2018. 38 PART DD 39 Intentionally Omitted 40 PART EE 41 Section 1. This act enacts into law major components of legislation 42 which are necessary for the proper operations of thoroughbred racing in 43 New York State. Each component is wholly contained within a Subpart 44 identified as Subpart A through B. The effective date for each partic- 45 ular provision contained within such Subpart is set forth in the last 46 section of such Subpart. Any provision in any section contained within a 47 Subpart, including the effective date of the Subpart, which makes refer- 48 ence to a section "of this act", when used in connection with that 49 particular component, shall be deemed to mean and refer to the corre- 50 sponding section of the Subpart in which it is found. Section three of 51 this act sets forth the general effective date of this act. 52 SUBPART AA. 9509--B 56 1 Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel 2 wagering and breeding law, as amended by chapter 140 of the laws of 3 2008, is amended to read as follows: 4 1. (a) In consideration of the franchise and in accordance with its 5 franchise agreement, the franchised corporation shall remit to the 6 state, each year, no later than April fifth, a franchise fee payment. 7 The franchise fee shall be calculated and equal to the lesser of [para-8graph (a) or (b) of this subdivision] subparagraphs (i) or (ii) of this 9 paragraph as follows: [(a)] (i) adjusted net income, including all 10 sources of audited generally accepted accounting principles net income 11 as of December thirty-first [(i)] (1) plus the amount of depreciation 12 and amortization for such year as set forth on the statement of cash 13 flows [(ii)] (2) less the amount received by the franchised corporation 14 for capital expenditures and [(iii)] (3) less principal payments made 15 for the repayment of debt; or [(b)] (ii) operating cash which is defined 16 as cash available on December thirty-first [(i)] (1) which excludes all 17 restricted cash accounts, segregated accounts as per audited financial 18 statements and cash on hand needed to fund the on-track pari-mutuel 19 operations through the vault, [(ii)] (2) less [forty-five] ninety days 20 of operating expenses pursuant to generally accepted accounting princi- 21 ples which shall be an average calculated by dividing the current year's 22 annual budget by the number of days in such year and multiplying that 23 number by [forty-five] ninety. 24 (b) The franchised corporation shall prepare an annual report on the 25 maintenance and use of operating reserves in order to protect the legit- 26 imate interests of the state and the thoroughbred racing industry. Such 27 report shall be submitted to the governor, speaker of the assembly, the 28 temporary president of the senate, the chair of the assembly ways and 29 means committee, the chair of the assembly standing committee on racing 30 and wagering, the chair of the senate standing committee on racing, 31 gaming and wagering, and the chair of the senate standing committee on 32 finance, no later than the first day of January, two thousand nineteen, 33 and each year thereafter. Such report shall also be made available to 34 the public and posted on the website of the gaming commission. 35 (c) Such annual report shall include the following information: 36 (i) average daily operating expenses at each track for the prior year; 37 (ii) all amounts received and disbursed to and from such operating 38 expenses account from the prior year; 39 (iii) all relevant data pertaining to the franchised corporation's use 40 of operating expenses from the prior year; 41 (iv) all franchise fee payments remitted to the state by the fran- 42 chised corporation in the prior year, or a statement including all rele- 43 vant information as to why such payment was not made; 44 (v) all pension costs for the franchised corporation for the prior 45 year; and 46 (vi) all amounts derived from the franchised corporation's split 47 handle for the prior year. 48 § 2. Intentionally omitted. 49 § 3. An advisory committee shall be established by the governor and 50 shall be comprised of fourteen individuals with demonstrated expertise 51 in the performance of Thoroughbred and Standardbred race horses and 52 equine health and safety to review the present structure, operations and 53 funding of equine drug testing and research conducted pursuant to arti- 54 cle 9 of the racing, pari-mutuel wagering and breeding law. Two desig- 55 nees shall be at the recommendation of each of the following; the gover- 56 nor, the speaker of the assembly, and the temporary president of theA. 9509--B 57 1 senate. One designee shall be at the recommendation of each of the 2 following; the New York Racing Association, Inc.; New York Thoroughbred 3 Horsemen's Association; The Standardbred Owner's Association of New 4 York; New York Thoroughbred Breeders, Inc.; Harness Horse Breeders of 5 New York State; The Jockey Club; New York's Equine Drug Testing Program 6 at Morrisville State College, and; the American Association of Equine 7 Partitioners. Recommendations shall be delivered to the temporary pres- 8 ident of the senate, speaker of the assembly and governor by December 1, 9 2018 regarding the future of such research, testing and funding based 10 upon the findings of such report. Such report shall also be made avail- 11 able to the public and posted on the website of the New York state 12 Gaming Commission. Members of the board shall not be considered policy- 13 makers. 14 § 4. This act shall take effect immediately. 15 SUBPART B 16 Section 1. Subdivision 6 of section 212 of the racing, pari-mutuel 17 wagering and breeding law, as added by chapter 18 of the laws of 2008, 18 is amended by adding a new paragraph c to read as follows: 19 c. The local advisory board for the Belmont racetrack facility shall 20 be comprised of fifteen members and include four designees of Nassau 21 county, three of whom shall reside within the hamlet of Elmont; four 22 designees of the mayor of the village of Floral Park; four designees of 23 the Elmont Community Coalition of Civics; and three designees of the 24 franchised corporation. 25 § 2. This act shall take effect immediately; provided, however, that 26 the amendments to subdivision 6 of section 212 of the racing, pari-mutu- 27 el wagering and breeding law made by section one of this act shall not 28 affect the repeal of such section and shall be deemed repealed there- 29 with. 30 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 31 sion, section or Subpart of this act shall be adjudged by any court of 32 competent jurisdiction to be invalid, such judgment shall not affect, 33 impair, or invalidate the remainder thereof, but shall be confined in 34 its operation to the clause, sentence, paragraph, subdivision, section 35 or Subpart thereof directly involved in the controversy in which such 36 judgment shall have been rendered. It is hereby declared to be the 37 intent of the legislature that this act would have been enacted even if 38 such invalid provisions had not been included herein. 39 § 3. This act shall take effect immediately provided, however, that 40 the applicable effective date of Subparts A through B of this act shall 41 be as specifically set forth in the last section of such Subparts. 42 PART FF 43 Intentionally Omitted 44 PART GG 45 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 46 racing, pari-mutuel wagering and breeding law, as amended by section 1 47 of part OO of chapter 59 of the laws of 2017, is amended to read as 48 follows: 49 (a) Any racing association or corporation or regional off-track 50 betting corporation, authorized to conduct pari-mutuel wagering underA. 9509--B 58 1 this chapter, desiring to display the simulcast of horse races on which 2 pari-mutuel betting shall be permitted in the manner and subject to the 3 conditions provided for in this article may apply to the commission for 4 a license so to do. Applications for licenses shall be in such form as 5 may be prescribed by the commission and shall contain such information 6 or other material or evidence as the commission may require. No license 7 shall be issued by the commission authorizing the simulcast transmission 8 of thoroughbred races from a track located in Suffolk county. The fee 9 for such licenses shall be five hundred dollars per simulcast facility 10 and for account wagering licensees that do not operate either a simul- 11 cast facility that is open to the public within the state of New York or 12 a licensed racetrack within the state, twenty thousand dollars per year 13 payable by the licensee to the commission for deposit into the general 14 fund. Except as provided in this section, the commission shall not 15 approve any application to conduct simulcasting into individual or group 16 residences, homes or other areas for the purposes of or in connection 17 with pari-mutuel wagering. The commission may approve simulcasting into 18 residences, homes or other areas to be conducted jointly by one or more 19 regional off-track betting corporations and one or more of the follow- 20 ing: a franchised corporation, thoroughbred racing corporation or a 21 harness racing corporation or association; provided (i) the simulcasting 22 consists only of those races on which pari-mutuel betting is authorized 23 by this chapter at one or more simulcast facilities for each of the 24 contracting off-track betting corporations which shall include wagers 25 made in accordance with section one thousand fifteen, one thousand 26 sixteen and one thousand seventeen of this article; provided further 27 that the contract provisions or other simulcast arrangements for such 28 simulcast facility shall be no less favorable than those in effect on 29 January first, two thousand five; (ii) that each off-track betting 30 corporation having within its geographic boundaries such residences, 31 homes or other areas technically capable of receiving the simulcast 32 signal shall be a contracting party; (iii) the distribution of revenues 33 shall be subject to contractual agreement of the parties except that 34 statutory payments to non-contracting parties, if any, may not be 35 reduced; provided, however, that nothing herein to the contrary shall 36 prevent a track from televising its races on an irregular basis primari- 37 ly for promotional or marketing purposes as found by the commission. For 38 purposes of this paragraph, the provisions of section one thousand thir- 39 teen of this article shall not apply. Any agreement authorizing an 40 in-home simulcasting experiment commencing prior to May fifteenth, nine- 41 teen hundred ninety-five, may, and all its terms, be extended until June 42 thirtieth, two thousand [eighteen] nineteen; provided, however, that any 43 party to such agreement may elect to terminate such agreement upon 44 conveying written notice to all other parties of such agreement at least 45 forty-five days prior to the effective date of the termination, via 46 registered mail. Any party to an agreement receiving such notice of an 47 intent to terminate, may request the commission to mediate between the 48 parties new terms and conditions in a replacement agreement between the 49 parties as will permit continuation of an in-home experiment until June 50 thirtieth, two thousand [eighteen] nineteen; and (iv) no in-home simul- 51 casting in the thoroughbred special betting district shall occur without 52 the approval of the regional thoroughbred track. 53 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 54 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 55 section 2 of part OO of chapter 59 of the laws of 2017, is amended to 56 read as follows:A. 9509--B 59 1 (iii) Of the sums retained by a receiving track located in Westchester 2 county on races received from a franchised corporation, for the period 3 commencing January first, two thousand eight and continuing through June 4 thirtieth, two thousand [eighteen] nineteen, the amount used exclusively 5 for purses to be awarded at races conducted by such receiving track 6 shall be computed as follows: of the sums so retained, two and one-half 7 percent of the total pools. Such amount shall be increased or decreased 8 in the amount of fifty percent of the difference in total commissions 9 determined by comparing the total commissions available after July twen- 10 ty-first, nineteen hundred ninety-five to the total commissions that 11 would have been available to such track prior to July twenty-first, 12 nineteen hundred ninety-five. 13 § 3. The opening paragraph of subdivision 1 of section 1014 of the 14 racing, pari-mutuel wagering and breeding law, as amended by section 3 15 of part OO of chapter 59 of the laws of 2017, is amended to read as 16 follows: 17 The provisions of this section shall govern the simulcasting of races 18 conducted at thoroughbred tracks located in another state or country on 19 any day during which a franchised corporation is conducting a race meet- 20 ing in Saratoga county at Saratoga thoroughbred racetrack until June 21 thirtieth, two thousand [eighteen] nineteen and on any day regardless of 22 whether or not a franchised corporation is conducting a race meeting in 23 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, 24 two thousand [eighteen] nineteen. On any day on which a franchised 25 corporation has not scheduled a racing program but a thoroughbred racing 26 corporation located within the state is conducting racing, every off- 27 track betting corporation branch office and every simulcasting facility 28 licensed in accordance with section one thousand seven (that have 29 entered into a written agreement with such facility's representative 30 horsemen's organization, as approved by the commission), one thousand 31 eight, or one thousand nine of this article shall be authorized to 32 accept wagers and display the live simulcast signal from thoroughbred 33 tracks located in another state or foreign country subject to the 34 following provisions: 35 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 36 and breeding law, as amended by section 4 of part OO of chapter 59 of 37 the laws of 2017, is amended to read as follows: 38 1. The provisions of this section shall govern the simulcasting of 39 races conducted at harness tracks located in another state or country 40 during the period July first, nineteen hundred ninety-four through June 41 thirtieth, two thousand [eighteen] nineteen. This section shall super- 42 sede all inconsistent provisions of this chapter. 43 § 5. The opening paragraph of subdivision 1 of section 1016 of the 44 racing, pari-mutuel wagering and breeding law, as amended by section 5 45 of part OO of chapter 59 of the laws of 2017, is amended to read as 46 follows: 47 The provisions of this section shall govern the simulcasting of races 48 conducted at thoroughbred tracks located in another state or country on 49 any day during which a franchised corporation is not conducting a race 50 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 51 thirtieth, two thousand [eighteen] nineteen. Every off-track betting 52 corporation branch office and every simulcasting facility licensed in 53 accordance with section one thousand seven that have entered into a 54 written agreement with such facility's representative horsemen's organ- 55 ization as approved by the commission, one thousand eight or one thou- 56 sand nine of this article shall be authorized to accept wagers andA. 9509--B 60 1 display the live full-card simulcast signal of thoroughbred tracks 2 (which may include quarter horse or mixed meetings provided that all 3 such wagering on such races shall be construed to be thoroughbred races) 4 located in another state or foreign country, subject to the following 5 provisions; provided, however, no such written agreement shall be 6 required of a franchised corporation licensed in accordance with section 7 one thousand seven of this article: 8 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 9 wagering and breeding law, as amended by section 6 of part OO of chapter 10 59 of the laws of 2017, is amended to read as follows: 11 Notwithstanding any other provision of this chapter, for the period 12 July twenty-fifth, two thousand one through September eighth, two thou- 13 sand [seventeen] eighteen, when a franchised corporation is conducting a 14 race meeting within the state at Saratoga Race Course, every off-track 15 betting corporation branch office and every simulcasting facility 16 licensed in accordance with section one thousand seven (that has entered 17 into a written agreement with such facility's representative horsemen's 18 organization as approved by the commission), one thousand eight or one 19 thousand nine of this article shall be authorized to accept wagers and 20 display the live simulcast signal from thoroughbred tracks located in 21 another state, provided that such facility shall accept wagers on races 22 run at all in-state thoroughbred tracks which are conducting racing 23 programs subject to the following provisions; provided, however, no such 24 written agreement shall be required of a franchised corporation licensed 25 in accordance with section one thousand seven of this article. 26 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 27 racing, pari-mutuel wagering and breeding law and other laws relating to 28 simulcasting, as amended by section 7 of part OO of chapter 59 of the 29 laws of 2017, is amended to read as follows: 30 § 32. This act shall take effect immediately and the pari-mutuel tax 31 reductions in section six of this act shall expire and be deemed 32 repealed on July 1, [2018] 2019; provided, however, that nothing 33 contained herein shall be deemed to affect the application, qualifica- 34 tion, expiration, or repeal of any provision of law amended by any 35 section of this act, and such provisions shall be applied or qualified 36 or shall expire or be deemed repealed in the same manner, to the same 37 extent and on the same date as the case may be as otherwise provided by 38 law; provided further, however, that sections twenty-three and twenty- 39 five of this act shall remain in full force and effect only until May 1, 40 1997 and at such time shall be deemed to be repealed. 41 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 42 racing, pari-mutuel wagering and breeding law and other laws relating to 43 simulcasting and the imposition of certain taxes, as amended by section 44 8 of part OO of chapter 59 of the laws of 2017, is amended to read as 45 follows: 46 § 54. This act shall take effect immediately; provided, however, 47 sections three through twelve of this act shall take effect on January 48 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 49 ing law, as added by section thirty-eight of this act, shall expire and 50 be deemed repealed on July 1, [2018] 2019; and section eighteen of this 51 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 52 two of this act shall take effect as of the same date as chapter 772 of 53 the laws of 1989 took effect. 54 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 55 pari-mutuel wagering and breeding law, as amended by section 9 of part 56 OO of chapter 59 of the laws of 2017, is amended to read as follows:A. 9509--B 61 1 (a) The franchised corporation authorized under this chapter to 2 conduct pari-mutuel betting at a race meeting or races run thereat shall 3 distribute all sums deposited in any pari-mutuel pool to the holders of 4 winning tickets therein, provided such tickets be presented for payment 5 before April first of the year following the year of their purchase, 6 less an amount which shall be established and retained by such fran- 7 chised corporation of between twelve to seventeen per centum of the 8 total deposits in pools resulting from on-track regular bets, and four- 9 teen to twenty-one per centum of the total deposits in pools resulting 10 from on-track multiple bets and fifteen to twenty-five per centum of the 11 total deposits in pools resulting from on-track exotic bets and fifteen 12 to thirty-six per centum of the total deposits in pools resulting from 13 on-track super exotic bets, plus the breaks. The retention rate to be 14 established is subject to the prior approval of the gaming commission. 15 Such rate may not be changed more than once per calendar quarter to be 16 effective on the first day of the calendar quarter. "Exotic bets" and 17 "multiple bets" shall have the meanings set forth in section five 18 hundred nineteen of this chapter. "Super exotic bets" shall have the 19 meaning set forth in section three hundred one of this chapter. For 20 purposes of this section, a "pick six bet" shall mean a single bet or 21 wager on the outcomes of six races. The breaks are hereby defined as the 22 odd cents over any multiple of five for payoffs greater than one dollar 23 five cents but less than five dollars, over any multiple of ten for 24 payoffs greater than five dollars but less than twenty-five dollars, 25 over any multiple of twenty-five for payoffs greater than twenty-five 26 dollars but less than two hundred fifty dollars, or over any multiple of 27 fifty for payoffs over two hundred fifty dollars. Out of the amount so 28 retained there shall be paid by such franchised corporation to the 29 commissioner of taxation and finance, as a reasonable tax by the state 30 for the privilege of conducting pari-mutuel betting on the races run at 31 the race meetings held by such franchised corporation, the following 32 percentages of the total pool for regular and multiple bets five per 33 centum of regular bets and four per centum of multiple bets plus twenty 34 per centum of the breaks; for exotic wagers seven and one-half per 35 centum plus twenty per centum of the breaks, and for super exotic bets 36 seven and one-half per centum plus fifty per centum of the breaks. For 37 the period June first, nineteen hundred ninety-five through September 38 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 39 three per centum and such tax on multiple wagers shall be two and one- 40 half per centum, plus twenty per centum of the breaks. For the period 41 September tenth, nineteen hundred ninety-nine through March thirty- 42 first, two thousand one, such tax on all wagers shall be two and six- 43 tenths per centum and for the period April first, two thousand one 44 through December thirty-first, two thousand [eighteen] nineteen, such 45 tax on all wagers shall be one and six-tenths per centum, plus, in each 46 such period, twenty per centum of the breaks. Payment to the New York 47 state thoroughbred breeding and development fund by such franchised 48 corporation shall be one-half of one per centum of total daily on-track 49 pari-mutuel pools resulting from regular, multiple and exotic bets and 50 three per centum of super exotic bets provided, however, that for the 51 period September tenth, nineteen hundred ninety-nine through March thir- 52 ty-first, two thousand one, such payment shall be six-tenths of one per 53 centum of regular, multiple and exotic pools and for the period April 54 first, two thousand one through December thirty-first, two thousand 55 [eighteen] nineteen, such payment shall be seven-tenths of one per 56 centum of such pools.A. 9509--B 62 1 § 10. This act shall take effect immediately. 2 PART HH 3 Intentionally Omitted 4 PART II 5 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision 6 b of section 1612 of the tax law are REPEALED and a new subparagraph 7 (ii) is added to read as follows: 8 (ii) less a vendor's fee the amount of which is to be paid for serving 9 as a lottery agent to the track operator of a vendor track or the opera- 10 tor of any other video lottery gaming facility authorized pursuant to 11 section sixteen hundred seventeen-a of this article: 12 (A) when a vendor track is located within development zone one as 13 defined by section thirteen hundred ten of the racing, pari-mutuel 14 wagering and breeding law, at a rate of thirty-nine and one-half percent 15 of the total revenue wagered at the vendor track after payout for prizes 16 pursuant to this chapter; 17 (B) when a vendor track is located within development zone two as 18 defined by section thirteen hundred ten of the racing, pari-mutuel 19 wagering and breeding law, at a rate of forty-three and one-half percent 20 of the total revenue wagered at the vendor track after payout for prizes 21 pursuant to this chapter; provided, however, at a vendor track located 22 within fifteen miles of a destination resort gaming facility authorized 23 pursuant to article thirteen of the racing, pari-mutuel wagering and 24 breeding law or that is located more than fifteen miles but within fifty 25 miles of a Native American class III gaming facility as defined in 25 26 U.S.C. § 2703 (8) shall receive a vendor fee at a rate of fifty-one 27 percent of the total revenue wagered at the vendor track after payout 28 for prizes pursuant to this chapter; and that at a vendor track located 29 within fifteen miles of a Native American class III gaming facility as 30 defined in 25 U.S.C. § 2703 (8) shall receive a vendor fee at a rate of 31 fifty-six percent of the total revenue wagered at the vendor track after 32 payout for prizes pursuant to this chapter; 33 (C) when a video lottery facility is operated at Aqueduct racetrack, 34 at a rate of forty-seven percent of the total revenue wagered at the 35 video lottery gaming facility after payout for prizes pursuant to this 36 chapter; provided, however, upon the earlier of the designation of one 37 thousand video lottery devices as hosted pursuant to paragraph four of 38 subdivision a of section sixteen hundred seventeen-a of this article or 39 April first, two thousand nineteen, such rate shall be fifty percent of 40 the total revenue wagered at the video lottery gaming facility after 41 payout for prizes pursuant to this chapter; 42 (D) when a video lottery gaming facility is located in either Nassau 43 or Suffolk counties and is operated by a corporation established pursu- 44 ant to section five hundred two of the racing, pari-mutuel wagering and 45 breeding law, at a rate of forty-five percent of the total revenue 46 wagered at the video lottery gaming facility after payout for prizes 47 pursuant to this chapter; 48 (E) (I) Notwithstanding any provision to the contrary, when a vendor 49 track is located within regions one, two, or five of development zone 50 two as defined by section thirteen hundred ten of the racing, pari-mutu- 51 el wagering and breeding law, such vendor track shall receive an addi- 52 tional commission at a rate equal to the percentage of revenue wageredA. 9509--B 63 1 at the vendor track after payout for prizes pursuant to this chapter, 2 which percentage shall be one hundred, less the sum of the percentages 3 of net revenue wagered at the vendor track retained by the commission 4 for operation, administration, and procurement purposes; and the 5 vendor's fee, marketing allowance and capital award paid to the vendor 6 track pursuant to this chapter; and the effective tax rate paid on all 7 gross gaming revenue paid by a gaming facility within the same region 8 pursuant to section thirteen hundred fifty-one of the racing, pari-mutu- 9 el wagering and breeding law, provided, however, such additional commis- 10 sion shall be applied to revenue wagered at the vendor track after 11 payout for prizes only while a gaming facility in the same region is 12 open and operational pursuant to an operation certificate issued pursu- 13 ant to section thirteen hundred thirty-one of the racing, pari-mutuel 14 wagering and breeding law. The additional commission set forth in this 15 clause shall be paid to the vendor track within sixty days after the 16 conclusion of the state fiscal year based on the calculated percentage 17 during the previous fiscal year. 18 (II) Notwithstanding any provision to the contrary, when a vendor 19 track is located within region six of development zone two as defined by 20 section thirteen hundred ten of the racing, pari-mutuel wagering and 21 breeding law and is located within Ontario county, such vendor track 22 shall receive an additional commission at a rate equal to the percentage 23 of revenue wagered at the vendor track after payout for prizes pursuant 24 to this chapter, which percentage shall be one hundred, less the sum of 25 the percentages of net revenue wagered at the vendor track retained by 26 the commission for operation, administration, and procurement purposes; 27 and the vendor's fee, marketing allowance and capital award paid to the 28 vendor track pursuant to this chapter; and the effective tax rate paid 29 on all gross gaming revenue paid by a gaming facility within Seneca or 30 Wayne counties pursuant to section thirteen hundred fifty-one of the 31 racing, pari-mutuel wagering and breeding law, provided, however, such 32 additional commission shall be applied to revenue wagered at the vendor 33 track after payout for prizes only while a gaming facility in Seneca or 34 Wayne counties is open and operational pursuant to an operation certif- 35 icate issued pursuant to section thirteen hundred thirty-one of the 36 racing, pari-mutuel wagering and breeding law. The additional commission 37 set forth in this clause shall be paid to the vendor track within sixty 38 days after the conclusion of the state fiscal year based on the calcu- 39 lated percentage during the previous fiscal year. 40 (F) Notwithstanding any provision of law to the contrary, any opera- 41 tors of a vendor track or the operators of any other video lottery 42 gaming facility eligible to receive a capital award as of December thir- 43 ty-first, two thousand seventeen shall deposit from their vendor fee 44 into a segregated account an amount equal to four percent of the first 45 sixty-two million five hundred thousand dollars of revenue wagered at 46 the vendor track after payout for prizes pursuant to this chapter to be 47 used exclusively for capital investments, except for Aqueduct, which 48 shall deposit into a segregated account an amount equal to one percent 49 of all revenue wagered at the video lottery gaming facility after payout 50 for prizes pursuant to this chapter until the earlier of the designation 51 of one thousand video lottery devices as hosted pursuant to paragraph 52 four of subdivision a of section sixteen hundred seventeen-a of this 53 article or April first, two thousand nineteen, when at such time four 54 percent of all revenue wagered at the video lottery gaming facility 55 after payout for prizes pursuant to this chapter shall be deposited into 56 a segregated account for capital investments. Vendor tracks and videoA. 9509--B 64 1 lottery gaming facilities shall be permitted to withdraw funds for 2 projects approved by the commission to improve the facilities of the 3 vendor track or video lottery gaming facility which enhance or maintain 4 the video lottery gaming facility including, but not limited to hotels, 5 other lodging facilities, entertainment facilities, retail facilities, 6 dining facilities, events arenas, parking garages and other improvements 7 and amenities customary to a gaming facility, provided, however, the 8 vendor tracks and video lottery gaming facilities shall be permitted to 9 withdraw funds for unreimbursed capital awards approved prior to the 10 effective date of this subparagraph. Any proceeds from the divestiture 11 of any assets acquired through these capital funds or any prior capital 12 award must be deposited into this segregated account, provided that if 13 the vendor track or video lottery gaming facility ceases use of such 14 asset for gaming purposes or transfers the asset to a related party, 15 such vendor track or video lottery gaming facility shall deposit an 16 amount equal to the fair market value of that asset into the account. In 17 the event a vendor track or video lottery gaming facility ceases gaming 18 operations, any balance in the account along with an amount equal to the 19 value of all remaining assets acquired through this fund or prior capi- 20 tal awards shall be returned to the state for deposit into the state 21 lottery fund for education aid, except for Aqueduct, which shall return 22 to the state for deposit into the state lottery fund for education aid 23 all amounts in excess of the amount needed to fund a project pursuant to 24 an agreement with the operator to construct an expansion of the facili- 25 ty, hotel, and convention and exhibition space requiring a minimum capi- 26 tal investment of three hundred million dollars and any subsequent 27 amendments to such agreement. The comptroller or his legally authorized 28 representative is authorized to audit any and all expenditures made out 29 of these segregated capital accounts. Notwithstanding the preceding, a 30 vendor track located in Ontario county may withdraw up to two million 31 dollars from this account for the purpose of constructing a turf course 32 at the vendor track. 33 (G) Notwithstanding any provision of law to the contrary, free play 34 allowance credits authorized by the division pursuant to subdivision f 35 of section sixteen hundred seventeen-a of this article shall not be 36 included in the calculation of the total amount wagered on video lottery 37 games, the total amount wagered after payout of prizes, the vendor fees 38 payable to the operators of video lottery gaming facilities, fees paya- 39 ble to the division's video lottery gaming equipment contractors, or 40 racing support payments. 41 (H) Notwithstanding any provision of law to the contrary, the operator 42 of a vendor track or the operator of any other video lottery gaming 43 facility shall fund a marketing and promotion program out of the 44 vendor's fee. Each operator shall submit an annual marketing plan for 45 the review and approval of the commission and any other required docu- 46 ments detailing promotional activities as prescribed by the commission. 47 The commission shall have the right to reject any advertisement or 48 promotion that does not properly represent the mission or interests of 49 the lottery or its programs. 50 (I) Notwithstanding clause (F) of this subparagraph, the commission 51 shall be able to authorize a vendor track located within Oneida county, 52 within fifteen miles of a Native American class III gaming facility, and 53 who has maintained at least ninety percent of full-time equivalent 54 employees as they employed in the year two thousand sixteen, to withdraw 55 funds from the segregated account established in clause (F) of this 56 subparagraph up to an amount equal to four percent of the total revenueA. 9509--B 65 1 wagered at the vendor track after payout for prizes pursuant to this 2 chapter each year, for operations. 3 § 2. This act shall take effect immediately; provided, however, clause 4 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 5 of the tax law as added by section one of this act shall expire and be 6 deemed repealed June 29, 2019. 7 PART JJ 8 Section 1. Subsection (a) of section 614 of the tax law, as amended by 9 chapter 170 of the laws of 1994, is amended to read as follows: 10 (a) Unmarried individual. For taxable years beginning after nineteen 11 hundred ninety-six, the New York standard deduction of a resident indi- 12 vidual who is not married nor the head of a household nor a surviving 13 spouse nor an individual [whose federal exemption amount is zero] who is 14 claimed as a dependent by another New York state taxpayer shall be seven 15 thousand five hundred dollars; for taxable years beginning in nineteen 16 hundred ninety-six, such standard deduction shall be seven thousand four 17 hundred dollars; for taxable years beginning in nineteen hundred nine- 18 ty-five, such standard deduction shall be six thousand six hundred 19 dollars; and for taxable years beginning after nineteen hundred eighty- 20 nine and before nineteen hundred ninety-five, such standard deduction 21 shall be six thousand dollars. 22 § 2. Section 612 of the tax law is amended by adding two new 23 subsections (w) and (x) to read as follows: 24 (w) Alimony modifications. (1) In the case of applicable alimony or 25 separate maintenance payments, the following modifications shall apply: 26 (A) There shall be subtracted from federal adjusted gross income any 27 applicable alimony or separate maintenance payments made by the taxpayer 28 during the taxable year. 29 (B) There shall be added to federal adjusted gross income any applica- 30 ble alimony or separate maintenance payments received by the taxpayer 31 during the taxable year. 32 (2) (A) The term "alimony or separate maintenance payments" means 33 payments as defined under section seventy-one of the internal revenue 34 code in effect immediately prior to the enactment of Public Law 115-97. 35 (B) The term "applicable alimony or separate maintenance payments" 36 means payments made under an alimony or separation instrument (as 37 defined in section seventy-one of the internal revenue code in effect 38 immediately prior to the enactment of Public Law 115-97) that was 39 executed after December thirty-first, two thousand eighteen, and any 40 divorce or separation instrument executed on or before such date and 41 modified after such date if the modification expressly provides that the 42 amendments made by this section apply to such modification. 43 (x) Qualified moving expense reimbursement and moving expenses. (1) In 44 the case of applicable qualified moving expense reimbursement and moving 45 expenses, the following modifications shall apply: 46 (A) There shall be subtracted from federal adjusted gross income any 47 applicable qualified moving expense reimbursement received by the 48 taxpayer during the taxable year. 49 (B) There shall be subtracted from federal adjusted gross income any 50 applicable moving expenses paid by the taxpayer during the taxable year. 51 (2) Applicable qualified moving expense reimbursement and moving 52 expenses are those deductions as allowed by paragraph (g) of sections 53 one hundred thirty-two and section two hundred seventeen, respectfully,A. 9509--B 66 1 of the internal revenue code immediately prior to the enactment of 2 Public Law 115-97. 3 § 3. Subsection (a) of section 615 of the tax law, as amended by 4 section 1 of part HH of chapter 57 of the laws of 2010, is amended to 5 read as follows: 6 (a) General. If federal taxable income of a resident individual is 7 determined by itemizing deductions or claiming the federal standard 8 deduction from his or her federal adjusted gross income, he or she may 9 elect to deduct his or her New York itemized deduction [in lieu of] or 10 claim his or her New York standard deduction. The New York itemized 11 deduction of a resident individual means the total amount of his or her 12 deductions from federal adjusted gross income allowed, other than feder- 13 al deductions for personal exemptions, as provided in the laws of the 14 United States for the taxable year, as such deductions existed imme- 15 diately prior to the enactment of Public Law 115-97 with the modifica- 16 tions specified in this section, except as provided for under 17 subsections (f) and (g) of this section. 18 § 4. Subdivision (a) of section 11-1714 of the administrative code of 19 the city of New York, as amended by chapter 170 of the laws of 1994, is 20 amended to read as follows: 21 (a) Unmarried individual. For taxable years beginning after nineteen 22 hundred ninety-six, the city standard deduction of a city resident indi- 23 vidual who is not married nor the head of a household nor a surviving 24 spouse nor an individual [whose federal exemption amount is zero] who is 25 claimed as a dependent by another New York state taxpayer shall be seven 26 thousand five hundred dollars; for taxable years beginning in nineteen 27 hundred ninety-six, such standard deduction shall be seven thousand four 28 hundred dollars; for taxable years beginning in nineteen hundred nine- 29 ty-five, such standard deduction shall be six thousand six hundred 30 dollars; and for taxable years beginning after nineteen hundred eighty- 31 nine and before nineteen hundred ninety-five, such standard deduction 32 shall be six thousand dollars. 33 § 5. Section 11-1712 of the administrative code of the city of New 34 York is amended by adding two new subdivisions (u) and (v) to read as 35 follows: 36 (u) Alimony modifications. (1) In the case of applicable alimony or 37 separate maintenance payments, the following modifications shall apply: 38 (A) There shall be subtracted from federal adjusted gross income any 39 applicable alimony or separate maintenance payments made by the taxpayer 40 during the taxable year. 41 (B) There shall be added to federal adjusted gross income any applica- 42 ble alimony or separate maintenance payments received by the taxpayer 43 during the taxable year. 44 (2) (A) The term "alimony or separate maintenance payments" means 45 payments as defined under section seventy-one of the internal revenue 46 code in effect immediately prior to the enactment of Public Law 115-97. 47 (B) The term "applicable alimony or separate maintenance payments" 48 means payments made under an alimony or separation instrument (as 49 defined in section seventy-one of the internal revenue code in effect 50 immediately prior to the enactment of Public Law 115-97) that was 51 executed after December thirty-first, two thousand eighteen, and any 52 divorce or separation instrument executed on or before such date and 53 modified after such date if the modification expressly provides that the 54 amendments made by this section apply to such modification.A. 9509--B 67 1 (v) Qualified moving expense reimbursement and moving expenses. (1) In 2 the case of applicable qualified moving expense reimbursement and moving 3 expenses, the following modifications shall apply: 4 (A) There shall be subtracted from federal adjusted gross income any 5 applicable qualified moving expense reimbursement received by the 6 taxpayer during the taxable year. 7 (B) There shall be subtracted from federal adjusted gross income any 8 applicable moving expenses paid by the taxpayer during the taxable year. 9 (2) Applicable qualified moving expense reimbursement and moving 10 expenses are those deductions as allowed by paragraph (g) of section one 11 hundred thirty-two and section two hundred seventeen, respectfully, of 12 the internal revenue code immediately prior to the enactment of Public 13 Law 115-97. 14 § 6. Subdivision (a) of section 11-1715 of the administrative code of 15 the city of New York, as amended by section 5 of part HH of chapter 57 16 of the laws of 2010, is amended to read as follows: 17 (a) General. If federal taxable income of a city resident individual 18 is determined by itemizing deductions or claiming the federal standard 19 deduction from his or her federal adjusted gross income, such resident 20 individual may elect to deduct his or her city itemized deduction [in21lieu of] or claim his or her city standard deduction. The city itemized 22 deduction of a city resident individual means the total amount of his or 23 her deductions from federal adjusted gross income allowed, other than 24 federal deductions for personal exemptions, as provided in the laws of 25 the United States for the taxable year, as such deductions existed imme- 26 diately prior to the enactment of Public Law 115-97 with the modifica- 27 tions specified in this section, except as provided for under subdivi- 28 sions (f) and (g) of this section. 29 § 7. This act shall take effect immediately and shall apply to taxable 30 years beginning on or after January 1, 2018. 31 PART KK 32 Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax 33 law, as amended by section 5-a of part T of chapter 59 of the laws of 34 2015, is amended to read as follows: 35 (b) "Exempt CFC income" means (i) the income required to be included 36 in the taxpayer's federal gross income pursuant to subsection (a) of 37 section 951 of the internal revenue code, received from a corporation 38 that is conducting a unitary business with the taxpayer but is not 39 included in a combined report with the taxpayer, and (ii) to the extent 40 not included in subparagraph (i) of this paragraph, such income required 41 to be included in the taxpayer's federal gross income pursuant to 42 subsection (a) of such section 951 of the internal revenue code by 43 reason of subsection (a) of section 965 of the internal revenue code, as 44 adjusted by subsection (b) of section 965 of the internal revenue code, 45 and without regard to subsection (c) of such section, received from a 46 corporation that is not included in a combined report with the taxpayer, 47 less, (iii) in the discretion of the commissioner, any interest 48 deductions directly or indirectly attributable to that income. In lieu 49 of subtracting from its exempt CFC income the amount of those interest 50 deductions, the taxpayer may make a revocable election to reduce its 51 total exempt CFC income by forty percent. If the taxpayer makes this 52 election, the taxpayer must also make the elections provided for in 53 paragraph (b) of subdivision six of this section and paragraph (c) of 54 this subdivision. If the taxpayer subsequently revokes this election,A. 9509--B 68 1 the taxpayer must revoke the elections provided for in paragraph (b) of 2 subdivision six of this section and paragraph (c) of this subdivision. A 3 taxpayer which does not make this election because it has no exempt CFC 4 income will not be precluded from making those other elections. 5 § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 6 of the tax law, as amended by section 4 of part A of chapter 59 of the 7 laws of 2014, is amended to read as follows: 8 (6) any amount treated as dividends pursuant to section seventy-eight 9 of the internal revenue code to the extent that such dividends are not 10 included in the computation of the deduction allowed under section two 11 hundred fifty of such code; 12 § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is 13 amended by adding a new subparagraph 23 to read as follow: 14 (23) The amount of any federal deduction allowed pursuant to 15 subsection (c) of section 965 of the internal revenue code. 16 § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as 17 amended by section 13-a of part Q of chapter 60 of the laws of 2016, is 18 amended to read as follows: 19 (1) If any taxpayer fails to file a declaration of estimated tax under 20 article nine-A of this chapter, or fails to pay all or any part of an 21 amount which is applied as an installment against such estimated tax, it 22 shall be deemed to have made an underpayment of estimated tax. There 23 shall be added to the tax for the taxable year an amount at the under- 24 payment rate set by the commissioner pursuant to section one thousand 25 ninety-six of this article, or if no rate is set, at the rate of seven 26 and one-half percent per annum upon the amount of the underpayment for 27 the period of the underpayment but not beyond the fifteenth day of the 28 [third] fourth month following the close of the taxable year. Provided, 29 however, that, for taxable years beginning on or after January first, 30 two thousand seventeen and before January first, two thousand eighteen, 31 no amount shall be added to the tax with respect to the portion of such 32 tax related to the amount of any interest deductions directly or indi- 33 rectly attributable to the amount included in exempt CFC income pursuant 34 to subparagraph (ii) of paragraph (b) of subdivision six-a of section 35 two hundred eight of this chapter or the forty percent reduction of such 36 exempt CFC income in lieu of interest attribution if the election 37 described in paragraph (b) of subdivision six-a of such section is made. 38 The amount of the underpayment shall be, with respect to any installment 39 of estimated tax computed on the basis of either the preceding year's 40 tax or the second preceding year's tax, the excess of the amount 41 required to be paid over the amount, if any, paid on or before the last 42 day prescribed for such payment or, with respect to any other install- 43 ment of estimated tax, the excess of the amount of the installment which 44 would be required to be paid if the estimated tax were equal to ninety- 45 one percent of the tax shown on the return for the taxable year (or if 46 no return was filed, ninety-one percent of the tax for such year) over 47 the amount, if any, of the installment paid on or before the last day 48 prescribed for such payment. In any case in which there would be no 49 underpayment if "eighty percent" were substituted for "ninety-one 50 percent" each place it appears in this subsection, the addition to the 51 tax shall be equal to seventy-five percent of the amount otherwise 52 determined. No underpayment shall be deemed to exist with respect to a 53 declaration or installment otherwise due on or after the termination of 54 existence of the taxpayer.A. 9509--B 69 1 § 5. Paragraph (b) of subdivision 5-a of section 11-652 of the admin- 2 istrative code of the city of New York, as added by section 1 of part D 3 of chapter 60 of the laws of 2015, is amended to read as follows: 4 (b) "Exempt CFC income" means (i) the income required to be included 5 in the taxpayer's federal gross income pursuant to subsection (a) of 6 section nine hundred fifty-one of the internal revenue code, received 7 from a corporation that is conducting a unitary business with the 8 taxpayer but is not included in a combined report with the taxpayer, and 9 (ii) to the extent not included in subparagraph (i) of this paragraph, 10 such income required to be included in the taxpayer's federal gross 11 income pursuant to subsection (a) of such section nine hundred fifty-one 12 of the internal revenue code by reason of subsection (a) of section nine 13 hundred sixty-five of the internal revenue code, as adjusted by 14 subsection (b) of section nine hundred sixty-five of the internal reven- 15 ue code, and without regard to subsection (c) of such section, received 16 from a corporation that is not included in a combined report with the 17 taxpayer, less, (iii) in the discretion of the commissioner of finance, 18 any interest deductions directly or indirectly attributable to that 19 income. In lieu of subtracting from its exempt CFC income the amount of 20 those interest deductions, the taxpayer may make a revocable election to 21 reduce its total exempt CFC income by forty percent. If the taxpayer 22 makes this election, the taxpayer must also make the elections provided 23 for in paragraph (b) of subdivision five of this section and paragraph 24 (c) of this subdivision. If the taxpayer subsequently revokes this 25 election, the taxpayer must revoke the elections provided for in para- 26 graph (b) of subdivision five of this section and paragraph (c) of this 27 subdivision. A taxpayer which does not make this election because it 28 has no exempt CFC income will not be precluded from making those other 29 elections. 30 § 6. Subparagraph 2-a of paragraph (a) of subdivision 8 of section 31 11-652 of the administrative code of the city of New York, as added by 32 section 1 of part D of chapter 60 of the laws of 2015, is amended to 33 read as follows: 34 (2-a) any amounts treated as dividends pursuant to section seventy- 35 eight of the internal revenue code to the extent that such dividends are 36 not included in the computation of the deduction allowed under section 37 two hundred fifty of such code; 38 § 7. Subparagraph 19 of paragraph (b) of subdivision 8 of section 39 11-652 of the administrative code of the city of New York, as added by 40 section 1 of part D of chapter 60 of the laws of 2015, is amended and a 41 new subparagraph 20 is added to read as follows: 42 (19) the amount of any federal deduction for taxes imposed under arti- 43 cle twenty-three of the tax law[.]; 44 (20) the amount of any federal deduction allowed pursuant to 45 subsection (c) of section nine hundred sixty-five of the internal reven- 46 ue code. 47 § 8. Subdivision 3 of section 11-676 of the administrative code of the 48 city of New York, as amended by section 12 of part D of chapter 60 of 49 the laws of 2015, is amended to read as follows: 50 3. Failure to file declaration or underpayment of estimated tax. If 51 any taxpayer fails to file a declaration of estimated tax under subchap- 52 ter two, three or three-A of this chapter, or fails to pay all or any 53 part of an amount which is applied as an installment against such esti- 54 mated tax, it shall be deemed to have made an underpayment of estimated 55 tax. There shall be added to the tax for the taxable year an amount at 56 the underpayment rate set by the commissioner of finance pursuant toA. 9509--B 70 1 section 11-687 of this subchapter, or, if no rate is set, at the rate of 2 seven and one-half percent per annum upon the amount of the underpayment 3 for the period of the underpayment but not beyond the fifteenth day of 4 the [third] forth month following the close of the taxable year. 5 Provided, however, that, for taxpayers under subchapter three-A of this 6 chapter, for taxable years beginning on or after January first, two 7 thousand seventeen and before January first, two thousand eighteen, no 8 amount shall be added to the tax with respect to the portion of such tax 9 related to the amount of any interest deductions directly or indirectly 10 attributable to the amount included in exempt CFC income pursuant to 11 subparagraph (ii) of paragraph (b) of subdivision five-a of section 12 11-652 of this chapter or the forty percent reduction of such exempt CFC 13 income in lieu of interest attribution if such election is made. The 14 amount of the underpayment shall be, with respect to any installment of 15 estimated tax computed on the basis of either the preceding year's tax 16 or the second preceding year's tax, the excess of the amount required to 17 be paid over the amount, if any, paid on or before the last day 18 prescribed for such payment or, with respect to any other installment of 19 estimated tax, the excess of the amount of the installment which would 20 be required to be paid if the estimated tax were equal to ninety percent 21 of the tax shown on the return for the taxable year (or if no return was 22 filed, ninety percent of the tax for such year) over the amount, if any, 23 of the installment paid on or before the last day prescribed for such 24 payment. In any case in which there would be no underpayment if "eighty 25 percent" were substituted for "ninety percent" each place it appears in 26 this subdivision, the addition to the tax shall be equal to seventy-five 27 percent of the amount otherwise determined. No underpayment shall be 28 deemed to exist with respect to a declaration or installment otherwise 29 due on or after the termination of existence of the taxpayer. 30 § 9. This act shall take effect immediately and shall apply to taxable 31 years beginning on or after January 1, 2017. 32 PART LL 33 Section 1. Intentionally omitted. 34 § 2. Intentionally omitted. 35 § 3. Section 1604 of the education law is amended by adding a new 36 subdivision 44 to read as follows: 37 44. To establish a charitable fund, by resolution of the trustees, to 38 receive unrestricted charitable monetary donations made to such fund for 39 use by the district for public educational purposes. The monies of such 40 charitable fund shall be deposited and secured in the manner provided by 41 section ten of the general municipal law. The monies of such charitable 42 fund may be invested in the manner provided by section eleven of the 43 general municipal law. Any interest earned or capital gain realized on 44 the money so invested shall accrue to and become part of such fund. At 45 such time and in such amounts as determined by the trustees, the monies 46 of such charitable fund shall be transferred to the school district's 47 general fund for expenditure consistent with the charitable purposes of 48 the fund, provided that the amount of taxes to be levied by the school 49 district for any school year shall be determined without regard to any 50 such transfer. The school district shall maintain an accounting of all 51 such deposits, interest or capital gain, transfers, and expenditures. 52 § 4. Section 1709 of the education law is amended by adding a new 53 subdivision 12-b to read as follows:A. 9509--B 71 1 12-b. To establish a charitable fund, by resolution of the board, to 2 receive unrestricted charitable monetary donations made to such fund for 3 use by the district for public educational purposes. The monies of such 4 charitable fund shall be deposited and secured in the manner provided by 5 section ten of the general municipal law. The monies of such charitable 6 fund may be invested in the manner provided by section eleven of the 7 general municipal law. Any interest earned or capital gain realized on 8 the money so invested shall accrue to and become part of such fund. At 9 such time and in such amounts as determined by the board, the monies of 10 such charitable fund shall be transferred to the school district's 11 general fund for expenditure consistent with the charitable purposes of 12 the fund, provided that the amount of taxes to be levied by the school 13 district for any school year shall be determined without regard to any 14 such transfer. The school district shall maintain an accounting of all 15 such deposits, interest or capital gain, transfers, and expenditures. 16 § 5. Section 2590-h of the education law is amended by adding a new 17 subdivision 54 to read as follows: 18 54. To establish a charitable fund to receive unrestricted charitable 19 monetary donations made to such fund for use by the city school district 20 for public educational purposes. The monies of such charitable fund 21 shall be deposited and secured in the manner provided by section ten of 22 the general municipal law. The monies of such charitable fund may be 23 invested in the manner provided by section eleven of the general munici- 24 pal law. Any interest earned or capital gain realized on the money so 25 invested shall accrue to and become part of such fund. At such time and 26 in such amounts as determined by the chancellor, the monies of such 27 charitable fund shall be transferred to the city school district's 28 general fund for expenditure consistent with the charitable purposes of 29 the fund, provided that the amount of taxes to be levied by the city for 30 any school year shall be determined without regard to any such transfer. 31 The city school district shall maintain an accounting of all such depos- 32 its, interest or capital gain, transfers, and expenditures. 33 § 6. The general municipal law is amended by adding two new sections 34 6-t and 6-u to read as follows: 35 § 6-t. Charitable gifts reserve fund; counties and cities with a popu- 36 lation of one million or more. 1. The governing board of any county or 37 New York city may establish a reserve fund to be known as a charitable 38 gifts reserve fund, the moneys of which are to be used for exclusively 39 public purposes. 40 2. Such fund may receive unrestricted charitable contributions and the 41 moneys in such fund shall be deposited and secured in the manner 42 provided by section ten of this article. The governing board, or the 43 chief fiscal officer of such county, or New York city, if the governing 44 board shall delegate such duty to him or her, may invest the moneys in 45 such fund in the manner provided by section eleven of this article. Any 46 interest earned or capital gain realized on the money so deposited or 47 invested shall accrue to and become part of such fund. The separate 48 identity of such fund shall be maintained whether its assets consist of 49 cash or investments or both. 50 3. At the end of the fiscal year, the governing board of the county or 51 New York city, within sixty days of the close of the fiscal year, shall 52 transfer the funds to the general fund or other fund of the municipal 53 corporation for exclusively public purposes. 54 4. The governing board shall establish a procedure for the donation of 55 unrestricted contributions to the charitable gifts reserve fund, whichA. 9509--B 72 1 shall include the provision of a written acknowledgment of the gift to 2 the contributor. 3 § 6-u. Charitable gifts reserve fund. 1. The governing board of any 4 city with a population less than one million, town or village may estab- 5 lish a reserve fund to be known as a charitable gifts reserve fund. 6 2. Such fund may receive unrestricted charitable contributions and the 7 moneys in such fund shall be deposited and secured in the manner 8 provided by section ten of this article. The governing board, or the 9 chief fiscal officer of such town, village or city, if the governing 10 board shall delegate such duty to him or her, may invest the moneys in 11 such fund in the manner provided by section eleven of this article. Any 12 interest earned or capital gain realized on the money so deposited or 13 invested shall accrue to and become part of such fund. The separate 14 identity of such fund shall be maintained whether its assets consist of 15 cash or investments or both. 16 3. At the end of the fiscal year, the governing board of the town, 17 village or city, within sixty days of the close of the fiscal year, may 18 transfer the funds to the general fund or other fund of the municipal 19 corporation, so that the funds may be used for charitable purposes. 20 4. The governing board shall establish a procedure for the donation of 21 unrestricted contributions to the charitable gifts reserve fund, which 22 shall include the provision of a written acknowledgment of the gift to 23 the contributor. 24 § 7. The real property tax law is amended by adding a new section 25 980-a to read as follows: 26 § 980-a. Tax credits for contributions to certain funds. 1. (a) A 27 municipal corporation that has established a fund pursuant to subdivi- 28 sion forty-four of section sixteen hundred four of the education law, 29 subdivision twelve-b of section seventeen hundred nine of the education 30 law, subdivision fifty-four of section twenty-five hundred ninety-h of 31 the education law, or section six-t or six-u of the general municipal 32 law, may adopt a local law, or in the case of a school district, a 33 resolution, authorizing a tax credit to be provided pursuant to this 34 section for contributions to such fund. For purposes of this section, a 35 municipal corporation that has established such a fund and authorized 36 such a credit shall be referred to as a "participating" municipal corpo- 37 ration. 38 (b) On and after a date specified in the local law or resolution 39 adopted by a participating municipal corporation pursuant to paragraph 40 (a) of this subdivision, the owner or owners of real property shall be 41 allowed a credit against the real property taxes of a participating 42 municipal corporation that have been imposed upon such property. The 43 amount of such credit shall equal ninety-five percent of the amount 44 contributed by one or more of the owners of such property during the 45 "associated credit year" as defined in this section, to any or all of 46 the funds established by such municipal corporation, subject to the 47 limit established pursuant to paragraph (c) of this subdivision, if any. 48 (c) The participating municipal corporation may establish a limit upon 49 the amount of such credit to be allowed in any given fiscal year, in 50 which case the amount of such credit shall not exceed the limit so 51 established. Any such limit shall be adopted by local law, or in the 52 case of a school district, by resolution, which local law or resolution 53 may either be the same as or separate from the local law or resolution 54 that initially authorized the credit. Once such a limit has been 55 adopted, it may be amended or repealed thereafter by local law, or in 56 the case of a school district, by resolution, provided that any suchA. 9509--B 73 1 amendment or repeal shall only apply to taxes of the participating 2 municipal corporation for fiscal years commencing after the adoption of 3 such local law or resolution. A copy of any local law or resolution 4 establishing, amending or repealing such a limit shall be provided to 5 the collecting officer who collects the taxes of the participating 6 municipal corporation. 7 2. For purposes of this section, the "associated credit year" shall be 8 the twelve-month period during which the owner of the property has made 9 a contribution described in subdivision one of this section that ends on 10 the last day prescribed by law on which the taxes of the participating 11 municipal corporation may be paid without interest or penalties, subject 12 to the following: 13 (a) Where such taxes are payable in installments, such twelve-month 14 period shall end on the last day prescribed by law on which the first 15 installment of such taxes may be paid without interest or penalties. 16 (b) Where a participating municipal corporation is a city school 17 district that is subject to article fifty-two of the education law, such 18 twelve-month period shall end on the last day prescribed by law on which 19 city taxes may be paid without interest or penalties, or if applicable, 20 on the last day prescribed by law on which the first installment of such 21 taxes may be paid without interest or penalties. 22 (c) Each such twelve-month period shall be determined without regard 23 to the possibility that the period prescribed by law for paying such 24 taxes without interest or penalties may be extended due to a delay in 25 the first publication of the collecting officer's notice as provided by 26 sections thirteen hundred twenty-two or thirteen hundred twenty-four of 27 this chapter or a comparable law, or due to an executive order issued in 28 connection with a state disaster emergency as provided by subdivision 29 two of section nine hundred twenty-five-a of this chapter. 30 3. The credit authorized by this section shall be administered as 31 follows: 32 (a) The administrator of the account or its designated agent shall, 33 upon receiving a contribution to an account specified in subdivision one 34 of this section during a credit year, furnish the property owner with an 35 acknowledgement in duplicate. Such acknowledgement shall be provided on 36 a form prescribed by the commissioner and shall specify the amount of 37 the contribution, the name and address of the donor, the date the 38 contribution was received, the authorized signature of the administrator 39 or agent, and such other information as the commissioner shall require. 40 (b) After receiving such an acknowledgement, the property owner may 41 present it to the appropriate collecting officer on or before the last 42 day prescribed by law on which taxes may be paid without interest or 43 penalty, together with a credit claim on a form prescribed by the 44 commissioner. Such credit claim form shall contain the name of the 45 property owner or owners, the date and amount of the contributions made 46 to the account during the associated credit year, the address of the 47 property to which the credit claim relates, and such other information 48 as the commissioner shall require. Notwithstanding any provision of law 49 to the contrary, the collecting officer shall thereupon be authorized 50 and directed to grant the property owner a tax credit equal to ninety- 51 five percent of the amount of the contributions made during the associ- 52 ated credit year as specified on the acknowledgement, and to reduce the 53 tax liability on the parcel accordingly, provided that such credit may 54 not exceed the limit established by the participating municipal corpo- 55 ration pursuant to paragraph (c) of subdivision one of this section, if 56 such a limit has been established. Where taxes are payable in install-A. 9509--B 74 1 ments, if the credit exceeds the amount of the first installment, the 2 excess shall be applied to future installments until exhausted. Where a 3 property owner submits a credit claim form to the collecting officer 4 prior to the collecting officer's receipt of the tax warrant, the asso- 5 ciated property tax bill shall reflect a reduction in the tax liability 6 equal to the credit authorized by this section. Where a property owner 7 submits a credit claim form to the collecting officer subsequent to the 8 collecting officer's receipt of the tax warrant, but prior to the mail- 9 ing of the property tax bills, the collecting officer shall make a 10 reasonable attempt to provide that the associated property tax bill 11 reflect a reduction in the tax liability equal to the credit authorized 12 by this section. The department of financial services, in consultation 13 with the department, shall promulgate regulations related to the adjust- 14 ment of mortgage escrow accounts to reflect the credits provided pursu- 15 ant to this section. 16 (c) If the property owner fails to present the acknowledgment and 17 credit claim form to the collecting officer on or before the last day 18 prescribed by law on which taxes may be paid without interest or penal- 19 ty, he or she may present the same to the chief fiscal officer or chief 20 financial officer of the participating municipal corporation, or to a 21 member of his or her staff. Such officer shall thereupon be authorized 22 and directed to grant the property owner a refund of property taxes of a 23 participating municipal corporation in the amount of the credit, which 24 amount shall be equal to ninety-five percent of the total contributions 25 made during the associated credit year, provided that such refund shall 26 not exceed the amount of taxes of the participating municipal corpo- 27 ration that have been paid on the property or the limit established 28 pursuant to paragraph (c) of subdivision one of this section, if any. 29 Provided further, that no interest shall be payable on such refund if 30 paid within forty-five days of the receipt of the acknowledgment and 31 credit claim form. The owner of the property may file such refund claim 32 with the authorized officer at any time during the three year period 33 beginning immediately after the last day such taxes were payable without 34 interest or penalty. 35 4. The amount of the itemized deduction that may be claimed by a 36 taxpayer under section six hundred fifteen of the tax law with respect 37 to the taxes paid on such property may not exceed the amount of the 38 taxes of a participating municipal corporation that have been imposed 39 upon such property minus the amount of the credit provided pursuant to 40 this section. 41 § 8. This act shall take effect immediately; provided, however, that 42 the amendments to section 2590-h of the education law made by section 43 five of this act shall not affect the expiration and reversion of such 44 section and shall expire and be deemed repealed therewith; and provided 45 further that if section 2590-h of the education law expires or is 46 repealed and is reverted prior to the effective date of this act, 47 section five of this act shall not take effect. 48 PART MM 49 Section 1. The tax law is amended by adding a new article 24 to read 50 as follows: 51 ARTICLE 24 52 EMPLOYER COMPENSATION EXPENSE TAX 53 Section 850. Definitions. 54 851. Employer election.A. 9509--B 75 1 852. Imposition and rate of tax. 2 853. Pass through of tax. 3 854. Payment of tax. 4 855. Employee credit. 5 856. Deposit and disposition of revenue. 6 857. Procedural provisions. 7 § 850. Definitions. For purposes of this article: 8 (a) Employer. Employer means an employer that is required by section 9 six hundred seventy-one of this chapter to deduct and withhold tax from 10 wages. 11 (b) Electing employer. Electing employer is an employer that has made 12 the election provided for in section eight hundred fifty-one of this 13 article. 14 (c) Payroll expense. Payroll expense means wages and compensation as 15 defined in sections 3121 and 3231 of the internal revenue code (without 16 regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all 17 covered employees. 18 (d) Covered employee. Covered employee means an employee of an elect- 19 ing employer who is required to have amounts withheld under section six 20 hundred seventy-one of this chapter and receives annual wages and 21 compensation from his or her employer of more than forty thousand 22 dollars annually. 23 § 851. Employer election. (a) Any employer who employs covered employ- 24 ees in the state shall be allowed to make an election to be taxed under 25 this article. 26 (b) In order to be effective, the election must be made by (1) each 27 member of the employer who is an owner at the time the election is 28 filed; or (2) any officer, manager or member of the employer who is 29 authorized under the law of the state where the corporation is incorpo- 30 rated or under the employer's organizational documents to make the 31 election and who represents to having such authorization under penalty 32 of perjury; or (3) if the employer is a trust, by the unanimous consent 33 of all trustees; or (4) if the employer is a governmental entity, by the 34 chief executive officer of such governmental entity. 35 (c) The election must be made by October first of a calendar year and 36 will take effect for the immediately succeeding calendar year. If an 37 election is made after October first of a calendar year, it will first 38 take effect in the second succeeding calendar year. 39 § 852. Imposition and rate of tax. A tax is hereby imposed on the 40 payroll expense paid by electing employers to covered employees. For two 41 thousand nineteen, the tax shall be equal to one and one-half percent of 42 the payroll expense paid by electing employers to covered employees 43 during the calendar quarter. For two thousand twenty, the tax shall be 44 equal to three percent of the payroll expense paid by electing employers 45 to covered employees during the calendar quarter. For two thousand twen- 46 ty-one and thereafter, the tax shall be equal to five percent of the 47 payroll expense paid by electing employers to covered employees during 48 the calendar quarter. An electing employer shall only be subject to the 49 tax imposed under this article on the payroll expense paid to any 50 covered employee during the calendar year in excess of forty thousand 51 dollars. 52 § 853. Pass through of tax. An employer cannot deduct from the wages 53 or compensation of an employee any amount that represents all or any 54 portion of the tax imposed on the employer under this article. 55 § 854. Payment of tax. (a) Employers with payroll expense. The tax 56 imposed on the payroll expense of electing employers under section eightA. 9509--B 76 1 hundred fifty-two of this article must be paid at the same time the 2 electing employer is required to remit payments under section six 3 hundred seventy-four of this chapter; provided however, that electing 4 employers subject to the provisions in section nine of this chapter must 5 pay the tax on the payroll expense at the same time as the withholding 6 tax remitted under the electronic payment reporting system and the elec- 7 tronic funds transfer system authorized by section nine of this chapter. 8 (b) Responsible person liability. Any officer, director or employee of 9 a corporation or of a dissolved corporation, any employee of a partner- 10 ship, any employee or manager of a limited liability company, any trus- 11 tee of a trust, or any employee of an individual proprietorship, any 12 partner of a partnership or any member of a limited liability company, 13 who as such officer, director, employee, manager, partner or member is 14 under a duty to act for such corporation, partnership, limited liability 15 company or individual proprietorship in complying with any requirement 16 of this article, shall be jointly and severally liable with the electing 17 employer for any tax, penalty or interest owed under this article. 18 § 855. Employee credit. A covered employee shall be allowed a credit 19 against the tax imposed under article twenty-two of this chapter, 20 computed pursuant to the provisions of subsection (aaaa) of section six 21 hundred six of this chapter. 22 § 856. Deposit and disposition of revenue. All taxes, interest, penal- 23 ties, and fees collected or received by the commissioner under this 24 article shall be deposited and disposed of pursuant to the provisions of 25 section one hundred seventy-one-a of this chapter. 26 § 857. Procedural provisions. (a) General. All provisions of article 27 twenty-two of this chapter will apply to the provisions of this article 28 in the same manner and with the same force and effect as if the language 29 of article twenty-two of this chapter had been incorporated in full into 30 this article and had been specifically adjusted for and expressly 31 referred to the tax imposed by this article, except to the extent that 32 any provision is either inconsistent with a provision of this article or 33 is not relevant to this article. Notwithstanding the preceding 34 sentence, no credit against tax in article twenty-two of this chapter 35 can be used to offset the tax due under this article. 36 (b) Notwithstanding the provisions of section six hundred ninety-seven 37 of this chapter, if the commissioner determines that a person is liable 38 for any tax, penalty or interest under this article pursuant to 39 subsection (b) of section eight hundred fifty-four of this article, upon 40 request in writing of such person, the commissioner shall disclose in 41 writing to such person (1) the name of any other person the commissioner 42 has determined to be liable for such tax, penalty or interest under this 43 article for the electing employer, and (2) whether the commissioner has 44 attempted to collect such tax, penalty or interest from such other 45 person or electing employer, the general nature of such collection 46 activities, and the amount collected. 47 (c) Notwithstanding any other law to the contrary, the commissioner 48 may require that all filings of forms or returns under this article must 49 be filed electronically and all payments of tax must be paid electron- 50 ically. The commissioner may prescribe the methods for quarterly 51 filings by electing employers, including but not limited to, the inclu- 52 sion of specific employee-level detail. 53 § 2. Section 606 of the tax law is amended by adding a new subsection 54 (aaaa) to read as follows: 55 (aaaa) Article twenty-four employee credit. A covered employee of an 56 electing employer shall be entitled to a credit against the tax imposedA. 9509--B 77 1 by this article as provided in this subsection. For purposes of this 2 subsection the terms "covered employee" and "electing employer" shall 3 have the same meanings as under section eight hundred fifty of this 4 chapter. (1) For two thousand nineteen, the credit shall be equal to 5 the product of (i) the covered employee's wages and compensation in 6 excess of forty thousand dollars received during the tax year from the 7 covered employer that are subject to tax under this article and (ii) one 8 and one-half percent and (iii) the result of one minus a fraction, the 9 numerator of which shall be the tax imposed on the covered employee as 10 determined pursuant to section six hundred one of this article before 11 the application of any credits for the applicable tax year and the 12 denominator of which shall be the covered employee's taxable income as 13 determined pursuant to this article for the applicable tax year. (2) For 14 two thousand twenty, the credit shall be equal to the product of (i) the 15 covered employee's wages and compensation in excess of forty thousand 16 dollars received during the tax year from the covered employer that are 17 subject to tax under this article and (ii) three percent and (iii) the 18 result of one minus a fraction, the numerator of which shall be the tax 19 imposed on the covered employee as determined pursuant to section six 20 hundred one of this article before the application of any credits for 21 the applicable tax year and the denominator of which shall be the 22 covered employee's taxable income as determined pursuant to this article 23 for the applicable tax year. (3) For two thousand twenty-one and there- 24 after, the credit shall be equal to the product of (i) the covered 25 employee's wages and compensation in excess of forty thousand dollars 26 received during the tax year from the covered employer that are subject 27 to tax under this article and (ii) five percent and (iii) the result of 28 one minus a fraction, the numerator of which shall be the tax imposed on 29 the covered employee as determined pursuant to section six hundred one 30 of this article before the application of any credits for the applicable 31 tax year and the denominator of which shall be the covered employee's 32 taxable income as determined pursuant to this article for the applicable 33 tax year. If the amount of the credit allowable under this subsection 34 for any taxable year shall exceed the taxpayer's tax for such year, the 35 excess allowed for a taxable year may be carried over to the following 36 year or years and may be deducted from the taxpayer's tax for such year 37 or years. 38 § 3. Subdivision 1 of section 171-a of the tax law, as amended by 39 section 15 of part AAA of chapter 59 of the laws of 2017, is amended to 40 read as follows: 41 1. All taxes, interest, penalties and fees collected or received by 42 the commissioner or the commissioner's duly authorized agent under arti- 43 cles nine (except section one hundred eighty-two-a thereof and except as 44 otherwise provided in section two hundred five thereof), nine-A, 45 twelve-A (except as otherwise provided in section two hundred eighty- 46 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 47 section three hundred twelve thereof), eighteen, nineteen, twenty 48 (except as otherwise provided in section four hundred eighty-two there- 49 of), twenty-B, twenty-one, twenty-two, twenty-four, twenty-six, twenty- 50 eight (except as otherwise provided in section eleven hundred two or 51 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 52 (except as otherwise provided in section fourteen hundred twenty-one 53 thereof), thirty-three and thirty-three-A of this chapter shall be 54 deposited daily in one account with such responsible banks, banking 55 houses or trust companies as may be designated by the comptroller, to 56 the credit of the comptroller. Such an account may be established in oneA. 9509--B 78 1 or more of such depositories. Such deposits shall be kept separate and 2 apart from all other money in the possession of the comptroller. The 3 comptroller shall require adequate security from all such depositories. 4 Of the total revenue collected or received under such articles of this 5 chapter, the comptroller shall retain in the comptroller's hands such 6 amount as the commissioner may determine to be necessary for refunds or 7 reimbursements under such articles of this chapter out of which amount 8 the comptroller shall pay any refunds or reimbursements to which taxpay- 9 ers shall be entitled under the provisions of such articles of this 10 chapter. The commissioner and the comptroller shall maintain a system of 11 accounts showing the amount of revenue collected or received from each 12 of the taxes imposed by such articles. The comptroller, after reserving 13 the amount to pay such refunds or reimbursements, shall, on or before 14 the tenth day of each month, pay into the state treasury to the credit 15 of the general fund all revenue deposited under this section during the 16 preceding calendar month and remaining to the comptroller's credit on 17 the last day of such preceding month, (i) except that the comptroller 18 shall pay to the state department of social services that amount of 19 overpayments of tax imposed by article twenty-two of this chapter and 20 the interest on such amount which is certified to the comptroller by the 21 commissioner as the amount to be credited against past-due support 22 pursuant to subdivision six of section one hundred seventy-one-c of this 23 article, (ii) and except that the comptroller shall pay to the New York 24 state higher education services corporation and the state university of 25 New York or the city university of New York respectively that amount of 26 overpayments of tax imposed by article twenty-two of this chapter and 27 the interest on such amount which is certified to the comptroller by the 28 commissioner as the amount to be credited against the amount of defaults 29 in repayment of guaranteed student loans and state university loans or 30 city university loans pursuant to subdivision five of section one 31 hundred seventy-one-d and subdivision six of section one hundred seven- 32 ty-one-e of this article, (iii) and except further that, notwithstanding 33 any law, the comptroller shall credit to the revenue arrearage account, 34 pursuant to section ninety-one-a of the state finance law, that amount 35 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 36 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 37 thereon, which is certified to the comptroller by the commissioner as 38 the amount to be credited against a past-due legally enforceable debt 39 owed to a state agency pursuant to paragraph (a) of subdivision six of 40 section one hundred seventy-one-f of this article, provided, however, he 41 shall credit to the special offset fiduciary account, pursuant to 42 section ninety-one-c of the state finance law, any such amount credita- 43 ble as a liability as set forth in paragraph (b) of subdivision six of 44 section one hundred seventy-one-f of this article, (iv) and except 45 further that the comptroller shall pay to the city of New York that 46 amount of overpayment of tax imposed by article nine, nine-A, twenty- 47 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 48 interest thereon that is certified to the comptroller by the commission- 49 er as the amount to be credited against city of New York tax warrant 50 judgment debt pursuant to section one hundred seventy-one-l of this 51 article, (v) and except further that the comptroller shall pay to a 52 non-obligated spouse that amount of overpayment of tax imposed by arti- 53 cle twenty-two of this chapter and the interest on such amount which has 54 been credited pursuant to section one hundred seventy-one-c, one hundred 55 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 56 one hundred seventy-one-l of this article and which is certified to theA. 9509--B 79 1 comptroller by the commissioner as the amount due such non-obligated 2 spouse pursuant to paragraph six of subsection (b) of section six 3 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 4 a like amount which the comptroller shall pay into the treasury to the 5 credit of the general fund from amounts subsequently payable to the 6 department of social services, the state university of New York, the 7 city university of New York, or the higher education services corpo- 8 ration, or the revenue arrearage account or special offset fiduciary 9 account pursuant to section ninety-one-a or ninety-one-c of the state 10 finance law, as the case may be, whichever had been credited the amount 11 originally withheld from such overpayment, and (vii) with respect to 12 amounts originally withheld from such overpayment pursuant to section 13 one hundred seventy-one-l of this article and paid to the city of New 14 York, the comptroller shall collect a like amount from the city of New 15 York. 16 § 4. Subdivision 1 of section 171-a of the tax law, as amended by 17 section 16 of part AAA of chapter 59 of the laws of 2017, is amended to 18 read as follows: 19 1. All taxes, interest, penalties and fees collected or received by 20 the commissioner or the commissioner's duly authorized agent under arti- 21 cles nine (except section one hundred eighty-two-a thereof and except as 22 otherwise provided in section two hundred five thereof), nine-A, 23 twelve-A (except as otherwise provided in section two hundred eighty- 24 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 25 section three hundred twelve thereof), eighteen, nineteen, twenty 26 (except as otherwise provided in section four hundred eighty-two there- 27 of), twenty-one, twenty-two, twenty-four, twenty-six, twenty-eight 28 (except as otherwise provided in section eleven hundred two or eleven 29 hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 30 (except as otherwise provided in section fourteen hundred twenty-one 31 thereof), thirty-three and thirty-three-A of this chapter shall be 32 deposited daily in one account with such responsible banks, banking 33 houses or trust companies as may be designated by the comptroller, to 34 the credit of the comptroller. Such an account may be established in one 35 or more of such depositories. Such deposits shall be kept separate and 36 apart from all other money in the possession of the comptroller. The 37 comptroller shall require adequate security from all such depositories. 38 Of the total revenue collected or received under such articles of this 39 chapter, the comptroller shall retain in the comptroller's hands such 40 amount as the commissioner may determine to be necessary for refunds or 41 reimbursements under such articles of this chapter out of which amount 42 the comptroller shall pay any refunds or reimbursements to which taxpay- 43 ers shall be entitled under the provisions of such articles of this 44 chapter. The commissioner and the comptroller shall maintain a system of 45 accounts showing the amount of revenue collected or received from each 46 of the taxes imposed by such articles. The comptroller, after reserving 47 the amount to pay such refunds or reimbursements, shall, on or before 48 the tenth day of each month, pay into the state treasury to the credit 49 of the general fund all revenue deposited under this section during the 50 preceding calendar month and remaining to the comptroller's credit on 51 the last day of such preceding month, (i) except that the comptroller 52 shall pay to the state department of social services that amount of 53 overpayments of tax imposed by article twenty-two of this chapter and 54 the interest on such amount which is certified to the comptroller by the 55 commissioner as the amount to be credited against past-due support 56 pursuant to subdivision six of section one hundred seventy-one-c of thisA. 9509--B 80 1 article, (ii) and except that the comptroller shall pay to the New York 2 state higher education services corporation and the state university of 3 New York or the city university of New York respectively that amount of 4 overpayments of tax imposed by article twenty-two of this chapter and 5 the interest on such amount which is certified to the comptroller by the 6 commissioner as the amount to be credited against the amount of defaults 7 in repayment of guaranteed student loans and state university loans or 8 city university loans pursuant to subdivision five of section one 9 hundred seventy-one-d and subdivision six of section one hundred seven- 10 ty-one-e of this article, (iii) and except further that, notwithstanding 11 any law, the comptroller shall credit to the revenue arrearage account, 12 pursuant to section ninety-one-a of the state finance law, that amount 13 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 14 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 15 thereon, which is certified to the comptroller by the commissioner as 16 the amount to be credited against a past-due legally enforceable debt 17 owed to a state agency pursuant to paragraph (a) of subdivision six of 18 section one hundred seventy-one-f of this article, provided, however, he 19 shall credit to the special offset fiduciary account, pursuant to 20 section ninety-one-c of the state finance law, any such amount credita- 21 ble as a liability as set forth in paragraph (b) of subdivision six of 22 section one hundred seventy-one-f of this article, (iv) and except 23 further that the comptroller shall pay to the city of New York that 24 amount of overpayment of tax imposed by article nine, nine-A, twenty- 25 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 26 interest thereon that is certified to the comptroller by the commission- 27 er as the amount to be credited against city of New York tax warrant 28 judgment debt pursuant to section one hundred seventy-one-l of this 29 article, (v) and except further that the comptroller shall pay to a 30 non-obligated spouse that amount of overpayment of tax imposed by arti- 31 cle twenty-two of this chapter and the interest on such amount which has 32 been credited pursuant to section one hundred seventy-one-c, one hundred 33 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 34 one hundred seventy-one-l of this article and which is certified to the 35 comptroller by the commissioner as the amount due such non-obligated 36 spouse pursuant to paragraph six of subsection (b) of section six 37 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 38 a like amount which the comptroller shall pay into the treasury to the 39 credit of the general fund from amounts subsequently payable to the 40 department of social services, the state university of New York, the 41 city university of New York, or the higher education services corpo- 42 ration, or the revenue arrearage account or special offset fiduciary 43 account pursuant to section ninety-one-a or ninety-one-c of the state 44 finance law, as the case may be, whichever had been credited the amount 45 originally withheld from such overpayment, and (vii) with respect to 46 amounts originally withheld from such overpayment pursuant to section 47 one hundred seventy-one-l of this article and paid to the city of New 48 York, the comptroller shall collect a like amount from the city of New 49 York. 50 § 5. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 51 92-z of the state finance law, subdivision 2 as amended by section 30 of 52 part T of chapter 57 of the laws of 2007, and subdivision 3 and para- 53 graph (a) of subdivision 5 as added by section 1 of part I of chapter 54 383 of the laws of 2001, are amended to read as follows: 55 2. Such fund shall consist of [twenty-five] (a) fifty percent of 56 receipts from the imposition of personal income taxes pursuant to arti-A. 9509--B 81 1 cle twenty-two of the tax law, less such amounts as the commissioner of 2 taxation and finance may determine to be necessary for refunds, and (b) 3 fifty percent of receipts from the imposition of employer compensation 4 expense taxes pursuant to article twenty-four of the tax law, less such 5 amounts as the commissioner of taxation and finance may determine to be 6 necessary for refunds. 7 3. (a) Beginning on the first day of each month, the comptroller shall 8 deposit all of the receipts collected pursuant to section six hundred 9 seventy-one of the tax law in the revenue bond tax fund until the amount 10 of monthly receipts anticipated to be deposited pursuant to the certif- 11 icate required in paragraph (b) of subdivision five of this section are 12 met. On or before the twelfth day of each month, the commissioner of 13 taxation and finance shall certify to the state comptroller the amounts 14 specified in paragraph (a) of subdivision two of this section relating 15 to the preceding month and, in addition, no later than March thirty- 16 first of each fiscal year the commissioner of taxation and finance shall 17 certify such amounts relating to the last month of such fiscal year. The 18 amounts so certified shall be deposited by the state comptroller in the 19 revenue bond tax fund. 20 (b) Beginning on the first day of each month, the comptroller shall 21 deposit all of the receipts collected pursuant to section eight hundred 22 fifty-four of the tax law in the revenue bond tax fund until the amount 23 of monthly receipts anticipated to be deposited pursuant to the certif- 24 icate required in paragraph (b) of subdivision five of this section are 25 met. On or before the twelfth day of each month, the commissioner of 26 taxation and finance shall certify to the state comptroller the amounts 27 specified in paragraph (b) of subdivision two of this section relating 28 to the preceding month and, in addition, no later than March thirty- 29 first of each fiscal year the commissioner of taxation and finance shall 30 certify such amounts relating to the last month of such fiscal year. The 31 amounts so certified shall be deposited by the state comptroller in the 32 revenue bond tax fund. 33 (a) The state comptroller shall from time to time, but in no event 34 later than the fifteenth day of each month (other than the last month of 35 the fiscal year) and no later than the thirty-first day of the last 36 month of each fiscal year, pay over and distribute to the credit of the 37 general fund of the state treasury all moneys in the revenue bond tax 38 fund, if any, in excess of the aggregate amount required to be set aside 39 for the payment of cash requirements pursuant to paragraph (b) of this 40 subdivision, provided that an appropriation has been made to pay all 41 amounts specified in any certificate or certificates delivered by the 42 director of the budget pursuant to paragraph (b) of this subdivision as 43 being required by each authorized issuer as such term is defined in 44 section sixty-eight-a of this chapter for the payment of cash require- 45 ments of such issuers for such fiscal year. Subject to the rights of 46 holders of debt of the state, in no event shall the state comptroller 47 pay over and distribute any moneys on deposit in the revenue bond tax 48 fund to any person other than an authorized issuer pursuant to such 49 certificate or certificates (i) unless and until the aggregate of all 50 cash requirements certified to the state comptroller as required by such 51 authorized issuers to be set aside pursuant to paragraph (b) of this 52 subdivision for such fiscal year shall have been appropriated to such 53 authorized issuers in accordance with the schedule specified in the 54 certificate or certificates filed by the director of the budget or (ii) 55 if, after having been so certified and appropriated, any payment 56 required to be made pursuant to paragraph (b) of this subdivision hasA. 9509--B 82 1 not been made to the authorized issuers which was required to have been 2 made pursuant to such certificate or certificates; provided, however, 3 that no person, including such authorized issuers or the holders of 4 revenue bonds, shall have any lien on moneys on deposit in the revenue 5 bond tax fund. Any agreement entered into pursuant to section sixty- 6 eight-c of this chapter related to any payment authorized by this 7 section shall be executory only to the extent of such revenues available 8 to the state in such fund. Notwithstanding subdivisions two and three of 9 this section, in the event the aggregate of all cash requirements certi- 10 fied to the state comptroller as required by such authorized issuers to 11 be set aside pursuant to paragraph (b) of this subdivision for the 12 fiscal year beginning on April first shall not have been appropriated to 13 such authorized issuers in accordance with the schedule specified in the 14 certificate or certificates filed by the director of the budget or, (ii) 15 if, having been so certified and appropriated, any payment required to 16 be made pursuant to paragraph (b) of this subdivision has not been made 17 pursuant to such certificate or certificates, all receipts collected 18 pursuant to section six hundred seventy-one of the tax law and section 19 eight hundred fifty-four of the tax law shall be deposited in the reven- 20 ue bond tax fund until the greater of [twenty-five] forty percent of the 21 aggregate of the receipts from the imposition of (A) the personal income 22 tax imposed by article twenty-two of the tax law and (B) the employer 23 compensation expense tax imposed by article twenty-four of the tax law 24 for the fiscal year beginning on April first and as specified in the 25 certificate or certificates filed by the director of the budget pursuant 26 to this paragraph or [six] a total of twelve billion dollars has been 27 deposited in the revenue bond tax fund. Notwithstanding any other 28 provision of law, if the state has appropriated and paid to the author- 29 ized issuers the amounts necessary for the authorized issuers to meet 30 their requirements for the current fiscal year pursuant to the certif- 31 icate or certificates submitted by the director of the budget pursuant 32 to paragraph (b) of this section, the state comptroller shall, on the 33 last day of each fiscal year, pay to the general fund of the state all 34 sums remaining in the revenue bond tax fund on such date except such 35 amounts as the director of the budget may certify are needed to meet the 36 cash requirements of authorized issuers during the subsequent fiscal 37 year. 38 § 6. Subdivision 5 of section 68-c of the state finance law, as added 39 by section 2 of part I of chapter 383 of the laws of 2001, is amended to 40 read as follows: 41 5. Nothing contained in this article shall be deemed to restrict the 42 right of the state to amend, repeal, modify or otherwise alter statutes 43 imposing or relating to the taxes imposed pursuant to article twenty-two 44 and article twenty-four of the tax law. The authorized issuers shall not 45 include within any resolution, contract or agreement with holders of the 46 revenue bonds issued under this article any provision which provides 47 that a default occurs as a result of the state exercising its right to 48 amend, repeal, modify or otherwise alter the taxes imposed pursuant to 49 article twenty-two and article twenty-four of the tax law. 50 § 7. This act shall take effect immediately; provided, however, that 51 the amendments to subdivision 1 of section 171-a of the tax law made by 52 section three of this act shall not affect the expiration of such subdi- 53 vision and shall expire therewith, when upon such date the provisions of 54 section four of this act shall take effect. 55 PART NNA. 9509--B 83 1 Section 1. Clause (ii) of subparagraph (B) of paragraph 1 of 2 subsection (a) of section 601 of the tax law, as added by section 1 of 3 part R of chapter 59 of the laws of 2017, is amended to read as follows: 4 (ii) For taxable years beginning in two thousand nineteen the follow- 5 ing rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 4% of the New York taxable 8 income 9 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 10 $17,150 11 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 12 $23,600 13 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 14 $27,900 15 Over $43,000 but not over $161,550 $2,093 plus 6.21% of excess over 16 $43,000 17 Over $161,550 but not over $323,200 $9,455 plus 6.49% of excess over 18 $161,550 19 Over $323,200 but not over $2,155,350 $19,946 plus 6.85% of excess over 20 $323,200 21 Over $2,155,350 but not over $145,448 plus 8.82% of excess over 22 $5,000,000 $2,155,350 23 Over $5,000,000 but not over $396,346 plus 9.32% of excess over 24 $10,000,000 $5,000,000 25 Over $10,000,000 but not over $862,346 plus 9.82% of excess over 26 $100,000,000 $10,000,000 27 Over $100,000,000 $9,700,346 plus 10.32% excess 28 over $100,000,000 29 § 2. Clause (iii) of subparagraph (B) of paragraph 1 of subsection (a) 30 of section 601 of the tax law, as added by section 1 of part R of chap- 31 ter 59 of the laws of 2017, is amended to read as follows: 32 (iii) For taxable years beginning in two thousand twenty the following 33 rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $17,150 4% of the New York taxable income 36 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 37 $17,150 38 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 39 $23,600 40 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 41 $27,900 42 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 43 $43,000 44 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 45 $161,550 46 Over $323,200 but not over $19,674 plus 6.85% of excess over 47 $2,155,350 $323,200 48 Over $2,155,350 but not over $145,177 plus 8.82% of excess over 49 $5,000,000 $2,155,350 50 Over $5,000,000 but not over $396,075 plus 9.32% of excess over 51 $10,000,000 $5,000,000 52 Over $10,000,000 but not over $862,075 plus 9.82% of excess over 53 $100,000,000 $10,000,000 54 Over $100,000,000 $9,700,075 plus 10.32% of excess over 55 $100,000,000A. 9509--B 84 1 § 3. Clause (iv) of subparagraph (B) of paragraph 1 of subsection (a) 2 of section 601 of the tax law, as added by section 1 of part R of chap- 3 ter 59 of the laws of 2017, is amended to read as follows: 4 (iv) For taxable years beginning in two thousand twenty-one the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 4% of the New York taxable income 8 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 9 $17,150 10 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 11 $23,600 12 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 13 $27,900 14 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 15 $43,000 16 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 17 $161,550 18 Over $323,200 but not $19,403 plus 6.85% of excess over 19 $323,200 20 over $2,155,350 21 Over $2,155,350 but not over $144,905 plus 8.82% of excess over 22 $5,000,000 $2,155,350 23 Over $5,000,000 but not over $395,803 plus 9.32% of excess over 24 $10,000,000 $5,000,000 25 Over $10,000,000 but not over $861,803 plus 9.82% of excess over 26 $100,000,000 $10,000,000 27 Over $100,000,000 $9,699,803 plus 10.32% of excess 28 over $100,000,000 29 § 4. Clause (v) of subparagraph (B) of paragraph 1 of subsection (a) 30 of section 601 of the tax law, as added by section 1 of part R of chap- 31 ter 59 of the laws of 2017, is amended to read as follows: 32 (v) For taxable years beginning in two thousand twenty-two the follow- 33 ing rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $17,150 4% of the New York taxable income 36 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 37 $17,150 38 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 39 $23,600 40 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 41 $27,900 42 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 43 $161,550 44 Over $323,200 but not over $19,124 plus 6.85% of excess over 45 $2,155,350 $323,200 46 Over $2,155,350 but not over $144,626 plus 8.82% of excess over 47 $5,000,000 $2,155,350 48 Over $5,000,000 but not over $395,524 plus 9.32% of excess over 49 $10,000,000 $5,000,000 50 Over $10,000,000 but not over $861,524 plus 9.82% of excess over 51 $100,000,000 $10,000,000 52 Over $100,000,000 $9,699,524 plus 10.32% of excess over 53 $100,000,000 54 § 5. Clause (vi) of subparagraph (B) of paragraph 1 of subsection (a) 55 of section 601 of the tax law, as added by section 1 of part R of chap- 56 ter 59 of the laws of 2017, is amended to read as follows:A. 9509--B 85 1 (vi) For taxable years beginning in two thousand twenty-three the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $17,150 4% of the New York taxable income 5 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 6 $17,150 7 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 8 $23,600 9 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 10 $27,900 11 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 12 $161,550 13 Over $323,200 but not $18,834 plus 6.85% of excess over 14 over $2,155,350 $323,200 15 Over $2,155,350 but not over $144,336 plus 8.82% of excess over 16 $5,000,000 $2,155,350 17 Over $5,000,000 but not over $395,234 plus 9.32% of excess over 18 $10,000,000 $5,000,000 19 Over $10,000,000 but not over $861,234 plus 9.82% of excess over 20 $100,000,000 $10,000,000 21 Over $100,000,000 $9,699,234 plus 10.32% of excess over 22 $100,000,000 23 § 6. Clause (vii) of subparagraph (B) of paragraph 1 of subsection (a) 24 of section 601 of the tax law, as added by section 1 of part R of chap- 25 ter 59 of the laws of 2017, is amended to read as follows: 26 (vii) For taxable years beginning in two thousand twenty-four the 27 following rates shall apply: 28 If the New York taxable income is: The tax is: 29 Not over $17,150 4% of the New York taxable income 30 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 31 $17,150 32 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 33 $23,600 34 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 35 $27,900 36 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 37 $161,550 38 Over $323,200 but not $18,544 plus 6.85% of excess over 39 over $2,155,350 $323,200 40 Over $2,155,350 but not over $144,047 plus 8.82% of excess over 41 $5,000,000 $2,155,350 42 Over $5,000,000 but not over $394,945 plus 9.32% of excess over 43 $10,000,000 $5,000,000 44 Over $10,000,000 but not over $860,945 plus 9.82% of excess over 45 $100,000,000 $10,000,000 46 Over $100,000,000 $9,698,945 plus 10.32% of excess 47 over $100,000,000 48 § 7. Clause (viii) of subparagraph (B) of paragraph 1 of subsection 49 (a) of section 601 of the tax law, as added by section 1 of part R of 50 chapter 59 of the laws of 2017, is amended to read as follows: 51 (viii) For taxable years beginning after two thousand twenty-four the 52 following rates shall apply: 53 If the New York taxable income is: The tax is: 54 Not over $17,150 4% of the New York taxable income 55 Over $17,150 but not over $23,600 $686 plus 4.5% of excess overA. 9509--B 86 1 $17,150 2 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 3 $23,600 4 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 5 $27,900 6 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 7 $161,550 8 Over $323,200 but not over $2,155,350 $18,252 plus 6.85% of 9 excess over $323,200 10 Over $2,155,350 but not over $143,754 plus 8.82% of excess 11 $5,000,000 over $2,155,350 12 Over $5,000,000 but not over $394,652 plus 9.32% of excess 13 $10,000,000 over $5,000,000 14 Over $10,000,000 but not $860,652 plus 9.82% of excess 15 over $100,000,000 over $10,000,000 16 Over $100,000,000 $9,698,652 plus 10.32% of excess 17 over $100,000,000 18 § 8. Clause (ii) of subparagraph (B) of paragraph 1 of subsection (b) 19 of section 601 of the tax law, as added by section 2 of part R of chap- 20 ter 59 of the laws of 2017, is amended to read as follows: 21 (ii) For taxable years beginning in two thousand nineteen the follow- 22 ing rates shall apply: 23 If the New York taxable income is: The tax is: 24 Not over $12,800 4% of the New York taxable income 25 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 26 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 27 $17,650 28 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 29 Over $32,200 but not over $107,650 $1,568 plus 6.21% of excess over 30 $32,200 31 Over $107,650 but not over $269,300 $6,253 plus 6.49% of excess over 32 $107,650 33 Over $269,300 but not over $1,616,450 $16,744 plus 6.85% 34 of excess over $269,300 35 Over $1,616,450 but not over $109,024 plus 8.82% 36 $5,000,000 of excess over $1,616,450 37 Over $5,000,000 but not over $407,453 plus 9.32% of excess 38 $10,000,000 over $5,000,000 39 Over $10,000,000 but not $873,453 plus 9.82% of excess 40 over $100,000,000 over $10,000,000 41 Over $100,000,000 $9,711,453 plus 10.32% of excess 42 over $100,000,000 43 § 9. Clause (iii) of subparagraph (B) of paragraph 1 of subsection (b) 44 of section 601 of the tax law, as added by section 2 of part R of chap- 45 ter 59 of the laws of 2017, is amended to read as follows: 46 (iii) For taxable years beginning in two thousand twenty the following 47 rates shall apply: 48 If the New York taxable income is: The tax is: 49 Not over $12,800 4% of the New York taxable income 50 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 51 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 52 $17,650 53 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 54 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 55 $32,200 56 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess overA. 9509--B 87 1 $107,650 2 Over $269,300 but not over $16,524 plus 6.85% 3 $1,616,450 of excess over $269,300 4 Over $1,616,450 but not over $108,804 plus 8.82% of excess over 5 $5,000,000 $1,616,450 6 Over $5,000,000 but not over $407,233 plus 9.32% of excess 7 $10,000,000 over $5,000,000 8 Over $10,000,000 but not $873,233 plus 9.82% of excess 9 over $100,000,000 over $10,000,000 10 Over $100,000,000 $9,711,233 plus 10.32% of excess 11 over $100,000,000 12 § 10. Clause (iv) of subparagraph (B) of paragraph 1 of subsection (b) 13 of section 601 of the tax law, as added by section 2 of part R of chap- 14 ter 59 of the laws of 2017, is amended to read as follows: 15 (iv) For taxable years beginning in two thousand twenty-one the 16 following rates shall apply: 17 If the New York taxable income is: The tax is: 18 Not over $12,800 4% of the New York taxable income 19 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 20 $12,800 21 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 22 $17,650 23 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 24 $20,900 25 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 26 $32,200 27 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 28 $107,650 29 Over $269,300 but not over $16,304 plus 6.85% of excess over 30 $1,616,450 $269,300 31 Over $1,616,450 but not over $108,584 plus 8.82% of excess 32 $5,000,000 over $1,616,450 33 Over $5,000,000 but not over $407,013 plus 9.32% of excess 34 $10,000,000 over $5,000,000 35 Over $10,000,000 but not over $873,013 plus 9.82% of excess 36 $100,000,000 over $10,000,000 37 Over $100,000,000 $9,711,013 plus 10.32% of excess 38 over $100,000,000 39 § 11. Clause (v) of subparagraph (B) of paragraph 1 of subsection (b) 40 of section 601 of the tax law, as added by section 2 of part R of chap- 41 ter 59 of the laws of 2017, is amended to read as follows: 42 (v) For taxable years beginning in two thousand twenty-two the follow- 43 ing rates shall apply: 44 If the New York taxable income is: The tax is: 45 Not over $12,800 4% of the New York taxable income 46 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 47 $12,800 48 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 49 $17,650 50 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 51 $20,900 52 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 53 $107,650 54 Over $269,300 but not over $16,079 plus 6.85% of excess 55 $1,616,450 over $269,300A. 9509--B 88 1 Over $1,616,450 but not over $108,359 plus 8.82% of excess 2 $5,000,000 over $1,616,450 3 Over $5,000,000 but not over $406,788 plus 9.32% of excess 4 $10,000,000 over $5,000,000 5 Over $10,000,000 but not over $872,788 plus 9.82% of excess 6 $100,000,000 over $10,000,000 7 Over $100,000,000 $9,710,788 plus 10.32% of excess 8 over $100,000,000 9 § 12. Clause (vi) of subparagraph (B) of paragraph 1 of subsection (b) 10 of section 601 of the tax law, as added by section 2 of part R of chap- 11 ter 59 of the laws of 2017, is amended to read as follows: 12 (vi) For taxable years beginning in two thousand twenty-three the 13 following rates shall apply: 14 If the New York taxable income is: The tax is: 15 Not over $12,800 4% of the New York taxable income 16 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 17 $12,800 18 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 19 $17,650 20 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 21 $20,900 22 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 23 $107,650 24 Over $269,300 but not over $1,616,450 $15,845 plus 6.85% 25 of excess over $269,300 26 Over $1,616,450 but not over $108,125 plus 8.82% of excess over 27 $5,000,000 $1,616,450 28 Over $5,000,000 but not over $406,554 plus 9.32% of excess 29 $10,000,000 over $5,000,000 30 Over $10,000,000 but not over $872,554 plus 9.82% of excess 31 $100,000,000 over $10,000,000 32 Over $100,000,000 $9,710,554 plus 10.32% of excess 33 over $100,000,000 34 § 13. Clause (vii) of subparagraph (B) of paragraph 1 of subsection 35 (b) of section 601 of the tax law, as added by section 2 of part R of 36 chapter 59 of the laws of 2017, is amended to read as follows: 37 (vii) For taxable years beginning in two thousand twenty-four the 38 following rates shall apply: 39 If the New York taxable income is: The tax is: 40 Not over $12,800 4% of the New York taxable income 41 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 42 $12,800 43 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 44 $17,650 45 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 46 $20,900 47 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 48 $107,650 49 Over $269,300 but not over $15,612 plus 6.85% 50 $1,616,450 of excess over $269,300 51 Over $1,616,450 but not over $107,892 plus 8.82% of excess over 52 $5,000,000 $1,616,450 53 Over $5,000,000 but not over $406,321 plus 9.32% of excess 54 $10,000,000 over $5,000,000 55 Over $10,000,000 but not over $872,321 plus 9.82% of excessA. 9509--B 89 1 $100,000,000 over $10,000,000 2 Over $100,000,000 $9,710,321 plus 10.32% of excess 3 over $100,000,000 4 § 14. Clause (viii) of subparagraph (B) of paragraph 1 of subsection 5 (b) of section 601 of the tax law, as added by section 2 of part R of 6 chapter 59 of the laws of 2017, is amended to read as follows: 7 (viii) For taxable years beginning after two thousand twenty-four the 8 following rates shall apply: 9 If the New York taxable income is: The tax is: 10 Not over $12,800 4% of the New York taxable income 11 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 12 $12,800 13 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 14 $17,650 15 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 16 $20,900 17 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 18 $107,650 19 Over $269,300 but not over $15,371 plus 6.85% of excess over 20 $1,616,450 $269,300 21 Over $1,616,450 but not over $107,651 plus 8.82% of excess over 22 $5,000,000 $1,616,450 23 Over $5,000,000 but not over $406,080 plus 9.32% of excess 24 $10,000,000 over $5,000,000 25 Over $10,000,000 but not over $872,080 plus 9.82% of excess 26 $100,000,000 over $10,000,000 27 Over $100,000,000 $9,710,080 plus 10.32% of excess 28 over $100,000,000 29 § 15. Clause (ii) of subparagraph (B) of paragraph 1 of subsection (c) 30 of section 601 of the tax law, as added by section 3 of part R of chap- 31 ter 59 of the laws of 2017, is amended to read as follows: 32 (ii) For taxable years beginning in two thousand nineteen the follow- 33 ing rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $8,500 4% of the New York taxable income 36 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 37 $8,500 38 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 39 $11,700 40 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 41 $13,900 42 Over $21,400 but not over $80,650 $1,042 plus 6.21% of excess over 43 $21,400 44 Over $80,650 but not over $215,400 $4,721 plus 6.49% of excess over 45 $80,650 46 Over $215,400 but not over $1,077,550 $13,467 plus 6.85% of excess over 47 $215,400 48 Over $1,077,550 but not over $72,524 plus 8.82% of 49 $5,000,000 excess over $1,077,550 50 Over $5,000,000 but not over $418,484 plus 9.32% of excess over 51 $10,000,000 $5,000,000 52 Over $10,000,000 but not over $884,484 plus 9.82% of excess over 53 $100,000,000 $10,000,000 54 Over $100,000,000 $9,722,484 plus 10.32% of excess over 55 $100,000,000A. 9509--B 90 1 § 16. Clause (iii) of subparagraph (B) of paragraph 1 of subsection 2 (c) of section 601 of the tax law, as added by section 3 of part R of 3 chapter 59 of the laws of 2017, is amended to read as follows: 4 (iii) For taxable years beginning in two thousand twenty the following 5 rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $8,500 4% of the New York taxable income 8 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 9 $8,500 10 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 11 $11,700 12 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 13 $13,900 14 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 15 $21,400 16 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 17 $80,650 18 Over $215,400 but not over $13,288 plus 6.85% of excess 19 $1,077,550 over $215,400 20 Over $1,077,550 but not over $72,345 plus 8.82% of excess over 21 $5,000,000 $1,077,550 22 Over $5,000,000 but not over $418,305 plus 9.32% of excess over 23 $10,000,000 $5,000,000 24 Over $10,000,000 but not over $884,305 plus 9.82% of excess over 25 $100,000,000 $10,000,000 26 Over $100,000,000 $9,722,305 plus 10.32% of excess 27 over $100,000,000 28 § 17. Clause (iv) of subparagraph (B) of paragraph 1 of subsection (c) 29 of section 601 of the tax law, as added by section 3 of part R of chap- 30 ter 59 of the laws of 2017, is amended to read as follows: 31 (iv) For taxable years beginning in two thousand twenty-one the 32 following rates shall apply: 33 If the New York taxable income is: The tax is: 34 Not over $8,500 4% of the New York taxable income 35 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 36 $8,500 37 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 38 $11,700 39 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 40 $13,900 41 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 42 $21,400 43 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 44 $80,650 45 Over $215,400 but not over $13,109 plus 6.85% of excess 46 $1,077,550 over $215,400 47 Over $1,077,550 but not over $72,166 plus 8.82% of excess over 48 $5,000,000 $1,077,550 49 Over $5,000,000 but not over $418,126 plus 9.32% of excess over 50 $10,000,000 $5,000,000 51 Over $10,000,000 but not over $884,126 plus 9.82% of excess over 52 $100,000,000 $10,000,000 53 Over $100,000,000 $9,722,126 plus 10.32% of excess 54 over $100,000,000A. 9509--B 91 1 § 18. Clause (v) of subparagraph (B) of paragraph 1 of subsection (c) 2 of section 601 of the tax law, as added by section 3 of part R of chap- 3 ter 59 of the laws of 2017, is amended to read as follows: 4 (v) For taxable years beginning in two thousand twenty-two the follow- 5 ing rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $8,500 4% of the New York taxable income 8 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 9 $8,500 10 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 11 $11,700 12 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 13 $13,900 14 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 15 $80,650 16 Over $215,400 but not over $12,926 plus 6.85% of excess 17 $1,077,550 over $215,400 18 Over $1,077,550 but not over $71,984 plus 8.82% of excess over 19 $5,000,000 $1,077,550 20 Over $5,000,000 but not over $417,944 plus 9.32% of excess over 21 $10,000,000 $5,000,000 22 Over $10,000,000 but not over $883,944 plus 9.82% of excess over 23 $100,000,000 $10,000,000 24 Over $100,000,000 $9,721,944 plus 10.32% of excess 25 over $100,000,000 26 § 19. Clause (vi) of subparagraph (B) of paragraph 1 of subsection (c) 27 of section 601 of the tax law, as added by section 3 of part R of chap- 28 ter 59 of the laws of 2017, is amended to read as follows: 29 (vi) For taxable years beginning in two thousand twenty-three the 30 following rates shall apply: 31 If the New York taxable income is: The tax is: 32 Not over $8,500 4% of the New York taxable income 33 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 34 $8,500 35 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 36 $11,700 37 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 38 $13,900 39 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 40 $80,650 41 Over $215,400 but not over $12,738 plus 6.85% of excess 42 $1,077,550 over $215,400 43 Over $1,077,550 but not over $71,796 plus 8.82% of excess over 44 $5,000,000 $1,077,550 45 Over $5,000,000 but not over $417,756 plus 9.32% of excess over 46 $10,000,000 $5,000,000 47 Over $10,000,000 but not over $883,756 plus 9.82% of excess over 48 $100,000,000 $10,000,000 49 Over $100,000,000 $9,721,756 plus 10.32% of excess 50 over $100,000,000 51 § 20. Clause (vii) of subparagraph (B) of paragraph 1 of subsection 52 (c) of section 601 of the tax law, as added by section 3 of part R of 53 chapter 59 of the laws of 2017, is amended to read as follows: 54 (vii) For taxable years beginning in two thousand twenty-four the 55 following rates shall apply:A. 9509--B 92 1 If the New York taxable income is: The tax is: 2 Not over $8,500 4% of the New York taxable income 3 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 4 $8,500 5 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 6 $11,700 7 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 8 $13,900 9 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 10 $80,650 11 Over $215,400 but not over $12,550 plus 6.85% of excess 12 $1,077,550 over $215,400 13 Over $1,077,550 but not over $71,608 plus 8.82% of excess over 14 $5,000,000 $1,077,550 15 Over $5,000,000 but not over $417,568 plus 9.32% of excess over 16 $10,000,000 $5,000,000 17 Over $10,000,000 but not over $883,568 plus 9.82% of excess over 18 $100,000,000 $10,000,000 19 Over $100,000,000 $9,721,568 plus 10.32% of excess 20 over $100,000,000 21 § 21. Clause (viii) of subparagraph (B) of paragraph 1 of subsection 22 (c) of section 601 of the tax law, as added by section 3 of part R of 23 chapter 59 of the laws of 2017, is amended to read as follows: 24 (viii) For taxable years beginning after two thousand twenty-four the 25 following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $8,500 4% of the New York taxable income 28 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 29 $8,500 30 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 31 $11,700 32 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 33 $13,900 34 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 35 $80,650 36 Over $215,400 but not over $12,356 plus 6.85% of excess 37 $1,077,550 over $215,400 38 Over $1,077,550 but not over $71,413 plus 8.82% of excess over 39 $5,000,000 $1,077,550 40 Over $5,000,000 but not over $417,373 plus 9.32% of excess over 41 $10,000,000 $5,000,000 42 Over $10,000,000 but not over $883,373 plus 9.82% of excess over 43 $100,000,000 $10,000,000 44 Over $100,000,000 $9,721,373 plus 10.32% of excess 45 over $100,000,000 46 § 22. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 47 601 of the tax law, as amended by section 4 of part R of chapter 59 of 48 the laws of 2017, is amended to read as follows: 49 (D) The tax table benefit is the difference between (i) the amount of 50 taxable income set forth in the tax table in paragraph one of subsection 51 (a) of this section not subject to the 8.82 percent rate of tax for the 52 taxable year multiplied by such rate and (ii) the dollar denominated tax 53 for such amount of taxable income set forth in the tax table applicable 54 to the taxable year in paragraph one of subsection (a) of this section 55 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 56 of this paragraph. The fraction for this subparagraph is computed asA. 9509--B 93 1 follows: the numerator is the lesser of fifty thousand dollars or the 2 excess of New York adjusted gross income for the taxable year over two 3 million dollars and the denominator is fifty thousand dollars. This 4 subparagraph shall apply only to taxable years beginning on or after 5 January first, two thousand twelve and [before January first, two thou-6sand twenty] thereafter. 7 § 23. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 8 601 of the tax law, as amended by section 5 of part R of chapter 59 of 9 the laws of 2017, is amended to read as follows: 10 (C) The tax table benefit is the difference between (i) the amount of 11 taxable income set forth in the tax table in paragraph one of subsection 12 (b) of this section not subject to the 8.82 percent rate of tax for the 13 taxable year multiplied by such rate and (ii) the dollar denominated tax 14 for such amount of taxable income set forth in the tax table applicable 15 to the taxable year in paragraph one of subsection (b) of this section 16 less the sum of the tax table benefits in subparagraphs (A) and (B) of 17 this paragraph. The fraction for this subparagraph is computed as 18 follows: the numerator is the lesser of fifty thousand dollars or the 19 excess of New York adjusted gross income for the taxable year over one 20 million five hundred thousand dollars and the denominator is fifty thou- 21 sand dollars. This subparagraph shall apply only to taxable years begin- 22 ning on or after January first, two thousand twelve and [before January23first, two thousand twenty] thereafter. 24 § 24. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 25 601 of the tax law, as amended by section 6 of part R of chapter 59 of 26 the laws of 2017, is amended to read as follows: 27 (C) The tax table benefit is the difference between (i) the amount of 28 taxable income set forth in the tax table in paragraph one of subsection 29 (c) of this section not subject to the 8.82 percent rate of tax for the 30 taxable year multiplied by such rate and (ii) the dollar denominated tax 31 for such amount of taxable income set forth in the tax table applicable 32 to the taxable year in paragraph one of subsection (c) of this section 33 less the sum of the tax table benefits in subparagraphs (A) and (B) of 34 this paragraph. The fraction for this subparagraph is computed as 35 follows: the numerator is the lesser of fifty thousand dollars or the 36 excess of New York adjusted gross income for the taxable year over one 37 million dollars and the denominator is fifty thousand dollars. This 38 subparagraph shall apply only to taxable years beginning on or after 39 January first, two thousand twelve and [before January first, two thou-40sand twenty] thereafter. 41 § 25. Section 601 of the tax law is amended by adding a new subsection 42 (d-2) to read as follows: 43 (d-2) Alternative tax table benefit recapture. For taxable years 44 beginning after two thousand eighteen for a taxpayer whose New York 45 taxable income is over $5,000,000, there is hereby imposed a supple- 46 mental tax in addition to the tax imposed under subsections (a), (b), 47 (c) and (d-1) of this section for the purpose of recapturing the benefit 48 of the tax tables contained in such subsections. During these taxable 49 years, any reference in this chapter to subsection (d) of this section 50 shall be read as a reference to this subsection. 51 (1) For resident married individuals filing joint returns and resident 52 surviving spouses, the supplemental tax shall be an amount equal to the 53 sum of the tax table benefits described in subparagraphs (A), (B) and 54 (C) of this paragraph multiplied by their respective fractions in such 55 subparagraphs.A. 9509--B 94 1 (A) The tax table benefit is the difference between (i) the amount of 2 taxable income set forth in the tax table in paragraph one of subsection 3 (a) of this section not subject to the 9.32 percent rate of tax for the 4 taxable year multiplied by such rate and (ii) the dollar denominated tax 5 for such amount of taxable income set forth in the tax table applicable 6 to the taxable year in paragraph one of subsection (a) of this section 7 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 8 of paragraph one of subsection (d-1) of this section. The fraction for 9 this subparagraph is computed as follows: the numerator is the lesser of 10 fifty thousand dollars or the excess of New York adjusted gross income 11 for the taxable year over five million dollars and the denominator is 12 fifty thousand dollars. Provided, however, this subparagraph shall not 13 apply to taxpayers who are not subject to the 9.32 percent tax rate. 14 (B) The tax table benefit is the difference between (i) the amount of 15 taxable income set forth in the tax table in paragraph one of subsection 16 (a) of this section not subject to the 9.82 percent rate of tax for the 17 taxable year multiplied by such rate and (ii) the dollar denominated tax 18 for such amount of taxable income set forth in the tax table applicable 19 to the taxable year in paragraph one of subsection (a) of this section 20 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 21 of paragraph one of subsection (d-1) of this section and such tax table 22 benefits in subparagraph (A) of this paragraph. The fraction for this 23 subparagraph is computed as follows: the numerator is the lesser of 24 fifty thousand dollars or the excess of New York adjusted gross income 25 for the taxable year over ten million dollars and the denominator is 26 fifty thousand dollars. Provided, however, this subparagraph shall not 27 apply to taxpayers who are not subject to the 9.82 percent tax rate. 28 (C) The tax table benefit is the difference between (i) the amount of 29 taxable income set forth in the tax table in paragraph one of subsection 30 (a) of this section not subject to the 10.32 percent rate of tax for the 31 taxable year multiplied by such rate and (ii) the dollar denominated tax 32 for such amount of taxable income set forth in the tax table applicable 33 to the taxable year in paragraph one of subsection (a) of this section 34 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 35 of paragraph one of subsection (d-1) of this section and such tax table 36 benefits in subparagraphs (A) and (B) of this paragraph. The fraction 37 for this subparagraph is computed as follows: the numerator is the less- 38 er of fifty thousand dollars or the excess of New York adjusted gross 39 income for the taxable year over one hundred million dollars and the 40 denominator is fifty thousand dollars. 41 (D) Provided, however, the total tax prior to the application of any 42 tax credits shall not exceed the highest rate of tax set forth in the 43 tax tables in subsection (a) of this section multiplied by the taxpay- 44 er's taxable income. 45 (2) For resident heads of households, the supplemental tax shall be an 46 amount equal to the sum of the tax table benefits described in subpara- 47 graphs (A), (B) and (C) of this paragraph multiplied by their respective 48 fractions in such subparagraphs. 49 (A) The tax table benefit is the difference between (i) the amount of 50 taxable income set forth in the tax table in paragraph one of subsection 51 (b) of this section not subject to the 9.32 percent rate of tax for the 52 taxable year multiplied by such rate and (ii) the dollar denominated tax 53 for such amount of taxable income set forth in the tax table applicable 54 to the taxable year in paragraph one of subsection (b) of this section 55 less the sum of the tax table benefits in subparagraphs (A) and (B) of 56 paragraph two of subsection (d-1) of this section. The fraction forA. 9509--B 95 1 this subparagraph is computed as follows: the numerator is the lesser of 2 fifty thousand dollars or the excess of New York adjusted gross income 3 for the taxable year over five million dollars and the denominator is 4 fifty thousand dollars. Provided, however, this subparagraph shall not 5 apply to taxpayers who are not subject to the 9.32 percent tax rate. 6 (B) The tax table benefit is the difference between (i) the amount of 7 taxable income set forth in the tax table in paragraph one of subsection 8 (b) of this section not subject to the 9.82 percent rate of tax for the 9 taxable year multiplied by such rate and (ii) the dollar denominated tax 10 for such amount of taxable income set forth in the tax table applicable 11 to the taxable year in paragraph one of subsection (b) of this section 12 less the sum of the tax table benefits in subparagraphs (A) and (B) of 13 paragraph two of subsection (d-1) of this section and such tax table 14 benefits in subparagraph (A) of this paragraph. The fraction for this 15 subparagraph is computed as follows: the numerator is the lesser of 16 fifty thousand dollars or the excess of New York adjusted gross income 17 for the taxable year over ten million dollars and the denominator is 18 fifty thousand dollars. 19 (C) The tax table benefit is the difference between (i) the amount of 20 taxable income set forth in the tax table in paragraph one of subsection 21 (b) of this section not subject to the 10.32 percent rate of tax for the 22 taxable year multiplied by such rate and (ii) the dollar denominated tax 23 for such amount of taxable income set forth in the tax table applicable 24 to the taxable year in paragraph one of subsection (b) of this section 25 less the sum of the tax table benefits in subparagraphs (A) and (B) of 26 paragraph two of subsection (d-1) of this section and such tax table 27 benefits in subparagraphs (A) and (B) of this paragraph. The fraction 28 for this subparagraph is computed as follows: the numerator is the less- 29 er of fifty thousand dollars or the excess of New York adjusted gross 30 income for the taxable year over one hundred million dollars and the 31 denominator is fifty thousand dollars. 32 (D) Provided, however, the total tax prior to the application of any 33 tax credits shall not exceed the highest rate of tax set forth in the 34 tax tables in subsection (b) of this section multiplied by the taxpay- 35 er's taxable income. 36 (3) For resident unmarried individuals, resident married individuals 37 filing separate returns and resident estates and trusts, the supple- 38 mental tax shall be an amount equal to the sum of the tax table benefits 39 described in subparagraphs (A), (B) and (C) of this paragraph multiplied 40 by their respective fractions in such subparagraphs. 41 (A) The tax table benefit is the difference between (i) the amount of 42 taxable income set forth in the tax table in paragraph one of subsection 43 (c) of this section not subject to the 9.32 percent rate of tax for the 44 taxable year multiplied by such rate and (ii) the dollar denominated tax 45 for such amount of taxable income set forth in the tax table applicable 46 to the taxable year in paragraph one of subsection (c) of this section 47 less the sum of the tax table benefits in subparagraphs (A) and (B) of 48 paragraph three of subsection (d-1) of this section. The fraction for 49 this subparagraph is computed as follows: the numerator is the lesser of 50 fifty thousand dollars or the excess of New York adjusted gross income 51 for the taxable year over five million dollars and the denominator is 52 fifty thousand dollars. Provided, however, this subparagraph shall not 53 apply to taxpayers who are not subject to the 9.32 percent tax rate. 54 (B) The tax table benefit is the difference between (i) the amount of 55 taxable income set forth in the tax table in paragraph one of subsection 56 (c) of this section not subject to the 9.82 percent rate of tax for theA. 9509--B 96 1 taxable year multiplied by such rate and (ii) the dollar denominated tax 2 for such amount of taxable income set forth in the tax table applicable 3 to the taxable year in paragraph one of subsection (c) of this section 4 less the sum of the tax table benefits in subparagraph (A) of paragraph 5 three of subsection (d-1) of this section and such tax table benefits in 6 subparagraph (A) of this paragraph. The fraction for this subparagraph 7 is computed as follows: the numerator is the lesser of fifty thousand 8 dollars or the excess of New York adjusted gross income for the taxable 9 year over ten million dollars and the denominator is fifty thousand 10 dollars. 11 (C) The tax table benefit is the difference between (i) the amount of 12 taxable income set forth in the tax table in paragraph one of subsection 13 (c) of this section not subject to the 10.32 percent rate of tax for the 14 taxable year multiplied by such rate and (ii) the dollar denominated tax 15 for such amount of taxable income set forth in the tax table applicable 16 to the taxable year in paragraph one of subsection (c) of this section 17 less the sum of the tax table benefits in subparagraphs (A) and (B) of 18 paragraph three of subsection (d-1) of this section and such tax table 19 benefits in subparagraphs (A) and (B) of this paragraph. The fraction 20 for this subparagraph is computed as follows: the numerator is the less- 21 er of fifty thousand dollars or the excess of New York adjusted gross 22 income for the taxable year over one hundred million dollars and the 23 denominator is fifty thousand dollars. 24 (D) Provided, however, the total tax prior to the application of any 25 tax credits shall not exceed the highest rate of tax set forth in the 26 tax tables in subsection (c) of this section multiplied by the taxpay- 27 er's taxable income. 28 § 26. Subsection (f) of section 614 of the tax law, as amended by 29 section 11 of part FF of chapter 59 of the laws of 2013, is amended to 30 read as follows: 31 (f) Adjusted standard deduction. For taxable years beginning after two 32 thousand seventeen, the standard deductions set forth in this section 33 shall be the amounts set forth in this section adjusted by the cost of 34 living adjustment prescribed in section six hundred one-a of this [part] 35 article for tax years two thousand thirteen [through two thousand seven-36teen] and thereafter. 37 § 27. This act shall take effect immediately and shall apply to taxa- 38 ble years beginning on or after January 1, 2019. 39 PART OO 40 Section 1. Subsection (n-1) of section 606 of the tax law, as added by 41 section 1 of subpart B of part C of chapter 20 of the laws of 2015 and 42 the opening paragraph of subparagraph (a) of paragraph 2 as amended by 43 section 7 of part A of chapter 60 of the laws of 2016, is amended to 44 read as follows: 45 (n-1) Property tax relief credit. (1) An individual taxpayer who meets 46 the eligibility standards in paragraph two of this subsection shall be 47 allowed a credit against the taxes imposed by this article in the amount 48 specified in paragraph three of this subsection for tax years two thou- 49 sand sixteen, two thousand seventeen, two thousand eighteen, and two 50 thousand nineteen. 51 (2) (a) To be eligible for the credit, the taxpayer (or taxpayers 52 filing joint returns) on the personal income tax return filed for the 53 taxable year two years prior, must have (i) been a resident, (ii) owned 54 and primarily resided in real property receiving either the STARA. 9509--B 97 1 exemption authorized by section four hundred twenty-five of the real 2 property tax law or the school tax relief credit authorized by 3 subsection (eee) of this section, and (iii) had qualified gross income 4 no greater than two hundred seventy-five thousand dollars. Provided, 5 however, that no credit shall be allowed if any of the following apply: 6 (i) Such property is located in an independent school district that is 7 subject to the provisions of section two thousand twenty-three-a of the 8 education law and that has adopted a budget in excess of the tax levy 9 limit prescribed by that section. To render its taxpayers eligible for 10 the credit authorized by this subsection, the school district must 11 certify its compliance with such tax levy limit in the manner prescribed 12 by subdivision two of section two thousand twenty-three-b of the educa- 13 tion law. 14 (ii) Such property is located in a city with a dependent school 15 district that is subject to the provisions of section three-c of the 16 general municipal law and that has adopted a budget in excess of the tax 17 levy limit prescribed by that section. To render its taxpayers eligible 18 for the credit authorized by this subsection, the city must certify its 19 compliance with such tax levy limit in the manner prescribed by subdivi- 20 sion two of section three-d of the general municipal law. 21 (iii) Such property is located in the city of New York. 22 (3) Amount of credit. (a) For the two thousand sixteen taxable year 23 (i) for a taxpayer residing in real property located within the metro- 24 politan commuter transportation district (MCTD) and outside the city of 25 New York, the amount of the credit shall be $130; (ii) for a taxpayer 26 residing in real property located outside the MCTD, the amount of the 27 credit shall be $185. 28 (b) For the two thousand seventeen, two thousand eighteen and two 29 thousand nineteen taxable years (i) For a taxpayer who owned and prima- 30 rily resided in real property receiving the basic STAR exemption, the 31 amount of the credit shall equal the STAR tax savings associated with 32 such basic STAR exemption, multiplied by the following percentage: 33 [(A)] for the two thousand seventeen, two thousand eighteen, and two 34 thousand nineteen taxable [year] years: 35 Qualified Gross Income Percentage 36 Not over $75,000 28% 37 Over $75,000 but not over $150,000 20.5% 38 Over $150,000 but not over $200,000 13% 39 Over $200,000 but not over $275,000 5.5% 40 Over $275,000 No credit 41 [(B) for the two thousand eighteen taxable year:42Qualified Gross Income Percentage43Not over $75,000 60%44Over $75,000 but not over $150,000 42.5%45Over $150,000 but not over $200,000 25%46Over $200,000 but not over $275,000 7.5%47Over $275,000 No credit48(C) for the two thousand nineteen taxable year:49Qualified Gross Income Percentage50Not over $75,000 85%51Over $75,000 but not over $150,000 60%52Over $150,000 but not over $200,000 35%53Over $200,000 but not over $275,000 10%54Over $275,000 No credit] 55 (c) For a taxpayer who owned and primarily resided in real property 56 receiving the enhanced STAR exemption, the amount of the credit shallA. 9509--B 98 1 equal the STAR tax savings associated with such enhanced STAR exemption, 2 multiplied by the following percentage: 3 Taxable Year Percentage 4 two thousand seventeen, two 12% 5 thousand eighteen, and two 6 thousand nineteen 7 [two thousand eighteen 26%8two thousand nineteen 34%] 9 (d) In no case may the amount of the credit allowed under this 10 subsection exceed the school district taxes due with respect to the 11 residence for that school year. 12 (4) For purposes of this subsection: 13 (a) "Qualified gross income" means the adjusted gross income of the 14 qualified taxpayer for the taxable year as reported for federal income 15 tax purposes, or which would be reported as adjusted gross income if a 16 federal income tax return were required to be filed. In computing quali- 17 fied gross income, the net amount of loss reported on Federal Schedule 18 C, D, E, or F shall not exceed three thousand dollars per schedule. In 19 addition, the net amount of any other separate category of loss shall 20 not exceed three thousand dollars. The aggregate amount of all losses 21 included in computing qualified gross income shall not exceed fifteen 22 thousand dollars. 23 (b) "STAR tax savings" means the tax savings attributable to the basic 24 or enhanced STAR exemption, whichever is applicable, within a portion of 25 a school district, as determined by the commissioner pursuant to subdi- 26 vision two of section thirteen hundred six-a of the real property tax 27 law. 28 (c) "Metropolitan commuter transportation district" or "MCTD" means 29 the metropolitan commuter transportation district as defined in section 30 twelve hundred sixty-two of the public authorities law. 31 (5) If the amount of the credit allowed under this subsection shall 32 exceed the taxpayer's tax for the taxable year, the excess shall be 33 treated as an overpayment of tax to be credited or refunded in accord- 34 ance with the provisions of section six hundred eighty-six of this arti- 35 cle, provided, however, that no interest shall be paid thereon. For each 36 year this credit is allowed, on or before October fifteenth of such 37 year, or as soon thereafter as is practicable, the commissioner shall 38 determine the taxpayer's eligibility for this credit utilizing the 39 information available to the commissioner on the taxpayer's personal 40 income tax return filed for the taxable year two years prior to the 41 taxable year in which the credit is allowed. For those taxpayers whom 42 the commissioner has determined eligible for this credit, the commis- 43 sioner shall advance a payment in the amount specified in paragraph 44 three of this subsection, which payment shall be issued, to the greatest 45 extent practicable, by October thirty-first of each year the credit is 46 allowed. A taxpayer who has failed to receive an advance payment that he 47 or she believes was due to him or her, or who has received an advance 48 payment that he or she believes is less than the amount that was due to 49 him or her, may request payment of the claimed deficiency in a manner 50 prescribed by the commissioner. 51 (6) A taxpayer shall not be eligible for the credit allowed under this 52 subsection if the school district taxes levied upon the residence during 53 the taxable year remain unpaid sixty days after the last date on which 54 they could have been paid without interest, or in the case of a school 55 district where such taxes are payable in installments, if such taxes 56 remain unpaid sixty days after the last date on which the final install-A. 9509--B 99 1 ment could have been paid without interest. If the taxes remain unpaid 2 on such sixtieth day, the amount of credit claimed by the taxpayer under 3 this subsection or the amount of advance payment of credit received by 4 the taxpayer pursuant to paragraph five of this subsection shall be 5 added back as tax on the income tax return for the taxable year in which 6 such sixtieth day occurs. 7 (7) Only one credit per residence shall be allowed per taxable year 8 under this subsection. When two or more members of a residence are able 9 to meet the qualifications for a qualified taxpayer, the credit shall be 10 equally divided between or among such individuals. In the case of spous- 11 es who file a joint federal return but who are required to determine 12 their New York taxes separately, the credit allowed pursuant to this 13 subsection may be applied against the tax of either or divided between 14 them as they may elect. 15 § 2. This act shall take effect immediately and shall apply to taxable 16 years beginning on or after January 1, 2018. 17 PART PP 18 Section 1. Section 22 of the public housing law is amended by adding a 19 new subdivision 8 to read as follows: 20 8. Certification of tax credit. Commencing April first, two thousand 21 eighteen, to maximize available capital for an eligible low-income hous- 22 ing building, a tax credit allocated to a developer for such building 23 pursuant to this article may be transferred by sale to an investor 24 notwithstanding that such investor may not have an ownership interest in 25 the eligible low-income building. Pursuant to the provisions of this 26 article and the rules and regulations of the commissioner, the investor 27 shall be a taxpayer subject to tax under article nine-A, twenty-two or 28 thirty-three of the tax law and shall be allowed a credit against such 29 tax for the amount of low-income housing credit allocated by the commis- 30 sioner to the eligible low-income housing building. The investor shall 31 not thereafter transfer, sell or assign the credit except to the owner 32 of the eligible low-income housing building for which the credit was 33 allocated. Prior to any transfer, sale or assignment, the developer 34 shall submit to the commissioner a statement which describes the amount 35 of low-income housing tax credit for transfer, sale or assignment, the 36 proposed recipient of the credit and any other information and documen- 37 tation required by the commissioner. 38 § 2. Subdivision 1 of section 25 of the public housing law, as added 39 by section 1 of part CC of chapter 63 of the laws of 2000, is amended to 40 read as follows: 41 1. The commissioner shall promulgate rules and regulations necessary 42 to administer the provisions of this [act] article and to provide for 43 the allocation of the state low-income housing tax credit to taxpayers 44 pursuant to this article in a separate manner from the federal low-in- 45 come housing tax credit. 46 § 3. This act shall take effect immediately and shall apply to taxable 47 years beginning on or after January 1, 2018. 48 PART QQ 49 Section 1. The tax law is amended by adding a new article 21-B to read 50 as follows:A. 9509--B 100 1 ARTICLE 21-B 2 TRANSIT SUSTAINABILITY IMPROVEMENT SURCHARGE ON TRANSPORTATION 3 SERVICE AND TRANSPORTATION NETWORK COMPANIES 4 Section 531. Definitions. 5 532. Imposition of tax. 6 533. Presumption. 7 534. Returns and payment. 8 535. Records to be kept. 9 536. Secrecy of returns and reports. 10 537. Practice and procedure. 11 538. Disposition of revenue. 12 § 531. Definitions. For purposes of this article, the following defi- 13 nitions shall apply unless a different meaning is clearly required: 14 (a) "Person" shall mean an individual, partnership, limited liability 15 company, society, association, joint stock company, corporation, estate, 16 receiver, trustee, assignee, referee or any other person acting in a 17 fiduciary or representative capacity, whether appointed by a court or 18 otherwise, any combination of individuals and any other form of unincor- 19 porated enterprise owned or conducted by two or more persons. 20 (b) "City" shall mean a city with a population of a million or more 21 located within the state of New York. 22 (c) "MCTD" shall mean the metropolitan commuter transportation 23 district established by section twelve hundred sixty-two of the public 24 authorities law. 25 (d) "Transportation network company" or "TNC" shall have the same 26 meaning as the term is defined in article forty-four-B of the vehicle 27 and traffic law. 28 (e) "Transit sustainability improvement zone" or "TSI zone" or "zone" 29 shall be the area in the borough of Manhattan lying south of the center 30 line of ninety-sixth street in the city of New York. The Franklin D. 31 Roosevelt East River Drive, north of the Brooklyn Bridge, shall not be 32 included in the zone. 33 (f) "Transit sustainability improvement surcharge" or "TSI surcharge" 34 shall mean the surcharge imposed under this article. 35 (g) "Transportation service" shall mean such transportation service as 36 defined under paragraph thirty-four of subdivision (b) of section eleven 37 hundred one of this chapter. 38 § 532. Imposition of tax. (a) There is hereby imposed on every trans- 39 portation service and every TNC a TSI surcharge of two dollars and 40 seventy-five cents on every trip provided by a person that originates 41 and terminates within the TSI zone, any trip that originates anywhere in 42 the state and terminates within the TSI zone, any trip that originates 43 within the TSI zone and terminates anywhere in this state or any trip 44 that originates anywhere in this state, enters into the TSI zone in 45 transit and terminates anywhere in this state. 46 (b) There is hereby imposed on every transportation service and every 47 TNC a TSI surcharge of one dollar on every trip that originates and 48 terminates within this state and does not enter into, originate in or 49 terminate in the TSI zone. 50 (c) The surcharge imposed within the zone shall apply to each individ- 51 ually purchased trip. 52 § 533. Presumption. For the purpose of the proper administration of 53 this article and to prevent evasion of the TSI surcharge imposed by this 54 article, it shall be presumed that every trip that originates in the TSI 55 zone in the city is subject to the TSI surcharge of two dollars andA. 9509--B 101 1 seventy-five cents. This presumption shall prevail until the contrary is 2 proven by the person liable for the fee. 3 § 534. Returns and payment. (a) Every person liable for the TSI 4 surcharge imposed by this article shall file a return on a calendar- 5 quarterly basis with the commissioner. Each return shall show the number 6 of trips and the amount of TSI surcharge due thereon in the quarter for 7 which the return is filed, together with such other information as the 8 commissioner may require. The returns required by this section shall be 9 filed within thirty days after the end of the quarterly period covered 10 thereby. If the commissioner deems it necessary in order to ensure the 11 payment of the TSI surcharge imposed by this article, the commissioner 12 may require returns to be made for shorter periods than prescribed by 13 the foregoing provisions of this section, and upon such dates as the 14 commissioner may specify. The form of returns shall be prescribed by the 15 commissioner and shall contain revenue collected from and the number of 16 trips made: (i) originating and terminating entirely in the zone, orig- 17 inating in the zone and terminating anywhere else in the state, or orig- 18 inating anywhere else in the state and terminating in the zone; (ii) 19 originating in the city and terminating anywhere else in the state but 20 not transecting the zone; (iii) originating in the MCTD, excluding the 21 city, and terminating anywhere else in the state excluding the city; and 22 (iv) originating and terminating anywhere in the state excluding the 23 MCTD. The form of returns shall also contain such information as the 24 commissioner may deem necessary for the proper administration of this 25 article. The commissioner may require amended returns to be filed within 26 thirty days after notice and to contain the information specified in the 27 notice. The commissioner may require that the returns be filed electron- 28 ically. 29 (b) Every person required to file a return under this article shall, 30 at the time of filing such return, pay to the commissioner the total of 31 TSI surcharges on the correct number of trips subject to such surcharge 32 under this article. The amount so payable to the commissioner for the 33 period for which a return is required to be filed shall be due and paya- 34 ble to the commissioner on the date specified for the filing of the 35 return for such period, without regard to whether a return is filed or 36 whether the return that is filed correctly shows the correct number of 37 trips or amount of TSI surcharge due thereon. The commissioner may 38 require that the surcharge be paid electronically. 39 § 535. Records to be kept. Every person liable for the TSI surcharge 40 imposed by this article shall keep: 41 (a) records of every trip subject to the TSI surcharge under this 42 article, and of all amounts paid, charged or due thereon, as well as the 43 pick-up and drop off location of each ride including which area each 44 pick-up and drop off is located in. The areas are: (i) in the zone, (ii) 45 in the city excluding the zone, (iii) in the metropolitan commuter 46 transportation district excluding the city, and (iv) the rest of the 47 state excluding the metropolitan commuter transportation district, in 48 such form as the commissioner may require; 49 (b) true and complete copies, including electronic copies, of any 50 records required to be kept by a state agency that is authorized to 51 permit or regulate a TNC and transportation service; and 52 (c) such other records and information as the commissioner may require 53 to perform his or her duties under this article. 54 § 536. Secrecy of returns and reports. (a) Except in accordance with 55 proper judicial order or as otherwise provided by law, it shall be 56 unlawful for the commissioner, any officer or employee of the depart-A. 9509--B 102 1 ment, any person engaged or retained by the department on an independent 2 contract basis, or any person who in any manner may acquire knowledge of 3 the contents of a return or report filed with the commissioner pursuant 4 to this article, to divulge or make known in any manner any particulars 5 set forth or disclosed in any such return or report. The officers 6 charged with the custody of such returns and reports shall not be 7 required to produce any of them or evidence of anything contained in 8 them in any action or proceeding in any court, except on behalf of the 9 commissioner in an action or proceeding under the provisions of this 10 chapter or in any other action or proceeding involving the collection of 11 a TSI surcharge due under this article to which the state or the commis- 12 sioner is a party or a claimant, or on behalf of any party to any 13 action, proceeding or hearing under the provisions of this article when 14 the returns, reports or facts shown thereby are directly involved in 15 such action, proceeding or hearing, in any of which events the court, or 16 in the case of a hearing, the division of tax appeals may require the 17 production of, and may admit into evidence, so much of said returns, 18 reports or of the facts shown thereby, as are pertinent to the action, 19 proceeding or hearing and no more. The commissioner or the division of 20 tax appeals may, nevertheless, publish a copy or a summary of any deci- 21 sion rendered after a hearing required by this article. Nothing in this 22 section shall be construed to prohibit the delivery to a person who has 23 filed a return or report or to such person's duly authorized represen- 24 tative of a certified copy of any return or report filed in connection 25 with such person's TSI surcharge. Nor shall anything in this section be 26 construed to prohibit the publication of statistics so classified as to 27 prevent the identification of particular returns or reports and the 28 items thereof, or the inspection by the attorney general or other legal 29 representatives of the state of the return or report of any person 30 required to pay the TSI surcharge who shall bring action to review the 31 TSI surcharge based thereon, or against whom an action or proceeding 32 under this chapter has been recommended by the commissioner or the 33 attorney general or has been instituted, or the inspection of the 34 returns or reports required under this article by the comptroller or 35 duly designated officer or employee of the state department of audit and 36 control, for purposes of the audit of a refund of any TSI surcharge paid 37 by a person required to pay such surcharge under this article. Provided, 38 further, nothing in this section shall be construed to prohibit the 39 disclosure, in such manner as the commissioner deems appropriate, of the 40 names and other appropriate identifying information of those persons 41 required to pay TSI surcharge under this article. 42 (b) Notwithstanding the provisions of subdivision (a) of this section, 43 the commissioner, in his or her discretion, may require or permit any or 44 all persons liable for any TSI surcharge imposed by this article, to 45 make payment to banks, banking houses or trust companies designated by 46 the commissioner and to file returns with such banks, banking houses or 47 trust companies as agents of the commissioner, in lieu of paying any TSI 48 surcharge directly to the commissioner. However, the commissioner shall 49 designate only such banks, banking houses or trust companies as are 50 already designated by the comptroller as depositories pursuant to 51 section twelve hundred eighty-eight of this chapter. 52 (c) Notwithstanding the provisions of subdivision (a) of this section, 53 the commissioner may permit the secretary of the treasury of the United 54 States or such secretary's delegate, or the authorized representative of 55 either such officer, to inspect any return filed under this article, or 56 may furnish to such officer or such officer's authorized representativeA. 9509--B 103 1 an abstract of any such return or supply such person with information 2 concerning an item contained in any such return, or disclosed by any 3 investigation of liability under this article, but such permission shall 4 be granted or such information furnished only if the laws of the United 5 States grant substantially similar privileges to the commissioner or 6 officer of this state charged with the administration of the TSI 7 surcharge imposed by this article, and only if such information is to be 8 used for purposes of tax administration only; and provided further the 9 commissioner may furnish to the commissioner of internal revenue or such 10 commissioner's authorized representative such returns filed under this 11 article and other tax information, as such commissioner may consider 12 proper, for use in court actions or proceedings under the internal 13 revenue code, whether civil or criminal, where a written request there- 14 for has been made to the commissioner by the secretary of the treasury 15 of the United States or such secretary's delegate, provided the laws of 16 the United States grant substantially similar powers to the secretary of 17 the treasury of the United States or his or her delegate. Where the 18 commissioner has so authorized use of returns and other information in 19 such actions or proceedings, officers and employees of the department 20 may testify in such actions or proceedings in respect to such returns or 21 other information. 22 (d) Returns and reports filed under this article shall be preserved 23 for a minimum of three years and thereafter preserved until the commis- 24 sioner orders them to be destroyed. 25 (e) (1) Any officer or employee of the state who willfully violates 26 the provisions of subdivision (a) of this section shall be dismissed 27 from office and be incapable of holding any public office for a period 28 of five years thereafter. 29 (f) The commissioner shall produce an annual report with information 30 that shall include, but is not limited to: the revenue collected from 31 and the number of trips made: (i) originating and terminating entirely 32 in the zone, originating in the zone and terminating anywhere else in 33 the state, or originating anywhere else in the state and terminating in 34 the zone; (ii) originating in the city and terminating anywhere else in 35 the state but not transecting the zone; (iii) originating in the MCTD, 36 excluding the city, and terminating anywhere else in the state excluding 37 the city; and (iv) originating and terminating anywhere in the state 38 excluding the MCTD. This report shall be completed and posted on the 39 department's website no later than one hundred eighty days after the 40 conclusion of the calendar year. 41 (2) Cross-reference: For criminal penalties, see article thirty-seven 42 of this chapter. 43 § 537. Practice and procedure. The provisions of article twenty-seven 44 of this chapter shall apply with respect to the administration of and 45 procedure with respect to the TSI surcharge imposed by this article in 46 the same manner and with the same force and effect as if the language of 47 such article twenty-seven had been incorporated in full into this arti- 48 cle and had expressly referred to the TSI surcharge under this article, 49 except to the extent that any such provision is either inconsistent with 50 a provision of this article or is not relevant to this article. 51 § 538. Disposition of revenue. (a) All taxes, interest and penalties 52 collected or received by the commissioner under the TSI surcharge and 53 penalties imposed by this article shall be deposited daily in one 54 account with such responsible banks, banking houses or trust companies 55 as may be designated by the comptroller, to the credit of the comp- 56 troller. Such an account may be established in one or more of suchA. 9509--B 104 1 depositories. Such deposits shall be kept separate and apart from all 2 other money in the possession of the comptroller. The comptroller shall 3 require adequate security from all such depositories. Of the total 4 revenue collected or received under this section, the comptroller shall 5 retain in his hands such amount as the commissioner may determine to be 6 necessary for refunds under this section, out of which amount the comp- 7 troller shall pay any refunds to which every transportation service 8 provider and transportation network company shall be entitled under the 9 provisions of this article. 10 (b) Revenue collected or received from trips subject to the tax 11 imposed by subdivision (a) of section five hundred thirty-two of this 12 article, the comptroller shall deposit weekly to the credit of the 13 metropolitan transportation authority aid trust account of the metropol- 14 itan transportation authority financial assistance fund established by 15 section ninety-two-ff of the state finance law for deposit, subject to 16 appropriation, in the transit account of the metropolitan transportation 17 authority special assistance fund established by section twelve hundred 18 seventy-a of the public authorities law, for the improvement of the 19 service reliability and other capital and operating costs of the subway 20 system of the New York city transit authority. 21 (c) Trips subject to the tax imposed by subdivision (b) of section 22 five hundred thirty-two of this article that originate in the city, the 23 comptroller shall deposit weekly to the credit of the metropolitan 24 transportation authority aid trust account of the metropolitan transpor- 25 tation authority financial assistance fund established by section nine- 26 ty-two-ff of the state finance law for deposit, subject to appropri- 27 ation, in the transit account of the metropolitan transportation 28 authority special assistance fund established by section twelve hundred 29 seventy-a of the public authorities law, for the improvement of the 30 service reliability and other capital and operating costs of the subway 31 system of the New York city transit authority. 32 (d) Revenue collected or received from trips that originate in the 33 MCTD, excluding trips in subdivisions (b) and (c) of this section, the 34 comptroller shall deposit weekly in the following manner: (i) fifty 35 percent of such revenue to the credit of the metropolitan mass transpor- 36 tation operating assistance account established by section 37 eighty-eight-a of the state finance law, pursuant to appropriations by 38 the legislature for costs of mass transit systems other than those mass 39 transit operating agencies which receive money from the metropolitan 40 transportation authority dedicated tax fund; and (ii) fifty percent of 41 such revenue shall be deposited by the comptroller to the credit of the 42 metropolitan transportation authority aid trust account of the metropol- 43 itan transportation authority financial assistance fund established by 44 section ninety-two-ff of the state finance law for deposit subject to 45 appropriations, in the commuter railroad account of the metropolitan 46 transportation authority special assistance fund established by section 47 twelve hundred seventy-a of the public authorities law and shall be 48 utilized equally for the costs of the Long Island Rail Road company and 49 the Metro-North commuter railroad company. 50 (e) Revenue collected or received from trips that originate outside of 51 the MCTD and not included in subdivision (b), (c) or (d) of this section 52 shall be deposited by the comptroller weekly in the following manner: 53 (i) fifty percent of such revenue in the dedicated highway and bridge 54 trust fund established by section eighty-nine-b of the state finance law 55 for the costs of local highway and bridge projects pursuant to the 56 consolidated local highway assistance program established pursuant toA. 9509--B 105 1 section ten-c of the highway law; and (ii) fifty percent of such revenue 2 in the mass transportation operating assistance fund to the credit of 3 the public transportation systems operating assistance account estab- 4 lished by section eighty-eight-a of the state finance law. 5 § 2. Section 1825 of the tax law, as amended by section 20 of part AAA 6 of chapter 59 of the laws of 2017, is amended to read as follows: 7 § 1825. Violation of secrecy provisions of the tax law.--Any person 8 who violates the provisions of subdivision (b) of section twenty-one, 9 subdivision one of section two hundred two, subdivision eight of section 10 two hundred eleven, subdivision (a) of section three hundred fourteen, 11 subdivision one or two of section four hundred thirty-seven, section 12 four hundred eighty-seven, subdivision one or two of section five 13 hundred fourteen, subdivision (a) of section five hundred thirty-six, 14 subsection (e) of section six hundred ninety-seven, subsection (a) of 15 section nine hundred ninety-four, subdivision (a) of section eleven 16 hundred forty-six, section twelve hundred eighty-seven, section twelve 17 hundred ninety-six, subdivision (a) of section fourteen hundred eigh- 18 teen, subdivision (a) of section fifteen hundred eighteen, subdivision 19 (a) of section fifteen hundred fifty-five of this chapter, and subdivi- 20 sion (e) of section 11-1797 of the administrative code of the city of 21 New York shall be guilty of a misdemeanor. 22 § 3. Subdivisions 3 and paragraph (a) of subdivision 6 of section 23 92-ff of the state finance law, as added by section 1 of part G of chap- 24 ter 25 of the laws of 2009, are amended to read as follows: 25 3. Such fund shall consist of all moneys collected therefore or cred- 26 ited or transferred thereto from any other fund, account or source, 27 including, without limitation, the revenues derived from the metropol- 28 itan commuter transportation mobility tax imposed by article twenty- 29 three of the tax law; revenues derived from the special supplemental tax 30 on passenger car rentals imposed by section eleven hundred sixty-six-a 31 of the tax law; revenues derived from the transportation surcharge 32 imposed by article twenty-nine-A of the tax law; the supplemental regis- 33 tration fees imposed by article seventeen-C of the vehicle and traffic 34 law; [and] the supplemental metropolitan commuter transportation 35 district license fees imposed by section five hundred three of the vehi- 36 cle and traffic law; revenues derived from the surcharge on trips 37 provided by transportation network companies and transportation services 38 imposed by subdivisions (a), (b) and (c) of section five hundred thir- 39 ty-eight and a portion of revenues derived from subdivision (d) of 40 section five hundred thirty-eight of article twenty-one-B of the tax law 41 in accordance with the provisions thereof. Any interest received by the 42 comptroller on moneys on deposit in the metropolitan transportation 43 authority financial assistance fund shall be retained in and become a 44 part of such fund. 45 (a) The "metropolitan transportation authority aid trust account" 46 shall consist of revenues required to be deposited therein pursuant to 47 the provisions of section eleven hundred sixty-six-a of the tax law; 48 article twenty-nine-A of the tax law; article seventeen-C of the vehicle 49 and traffic law; [and] section five hundred three of the vehicle and 50 traffic law; article twenty-one-B of the tax law, and all other moneys 51 credited or transferred thereto from any other fund or source pursuant 52 to law. 53 § 4. Paragraph (a) of subdivision 5 and paragraph (a) of subdivision 7 54 of section 88-a of the state finance law, as added by chapter 481 of the 55 laws in 1981, are amended to read as follows:A. 9509--B 106 1 (a) The "public transportation systems operating assistance account" 2 shall consist of revenues required to be deposited therein pursuant to 3 the provisions of section one hundred eighty-two-a of the tax law; and 4 the receipts required to be deposited pursuant to subdivision (e) of 5 section five hundred thirty-eight of article twenty-one-B of the tax 6 law, and all other moneys credited or transferred thereto from any other 7 fund or source pursuant to law. 8 (a) The "metropolitan mass transportation operating assistance 9 account" shall consist of the revenues derived from the taxes for the 10 metropolitan transportation district imposed by section eleven hundred 11 nine of the tax law and that proportion of the receipts received pursu- 12 ant to the tax imposed by article nine-a of such law as specified in 13 section one hundred seventy-one-a of such law, and that proportion of 14 the receipts received pursuant to the tax imposed by article nine of 15 such law as specified in section two hundred five of such law, and the 16 receipts required to be deposited pursuant to subdivision (d) of section 17 five hundred thirty-eight of article twenty-one-B of the tax law, and 18 the receipts required to be deposited pursuant to the provisions of 19 section one hundred eighty-two-a, and all other moneys credited or 20 transferred thereto from any other fund or source pursuant to law. 21 § 5. Paragraph (a) of subdivision 3 of section 89-b of the state 22 finance law, as amended by section 11 of part D of chapter 58 of the 23 laws of 2016, is amended to read as follows: 24 (a) The special obligation reserve and payment account shall consist 25 (i) of all moneys required to be deposited in the dedicated highway and 26 bridge trust fund pursuant to the provisions of sections two hundred 27 five, two hundred eighty-nine-e, three hundred one-j, five hundred 28 fifteen, subdivision (e) of section five hundred thirty-eight and eleven 29 hundred sixty-seven of the tax law, section four hundred one of the 30 vehicle and traffic law, and section thirty-one of chapter fifty-six of 31 the laws of nineteen hundred ninety-three, (ii) all fees, fines or 32 penalties collected by the commissioner of transportation and the 33 commissioner of motor vehicles pursuant to section fifty-two, section 34 three hundred twenty-six, section eighty-eight of the highway law, 35 subdivision fifteen of section three hundred eighty-five, section four 36 hundred twenty-three-a, section four hundred ten, section three hundred 37 seventeen, section three hundred eighteen, article twelve-C, and para- 38 graph (c-1) of subdivision two of section five hundred three of the 39 vehicle and traffic law, section two of [the] chapter sixty-two of the 40 laws of two thousand three [that amended this paragraph], subdivision 41 (d) of section three hundred four-a, paragraph one of subdivision (a) 42 and subdivision (d) of section three hundred five, subdivision six-a of 43 section four hundred fifteen and subdivision (g) of section twenty-one 44 hundred twenty-five of the vehicle and traffic law, section fifteen of 45 this chapter, excepting moneys deposited with the state on account of 46 betterments performed pursuant to subdivision twenty-seven or subdivi- 47 sion thirty-five of section ten of the highway law, and sections nine- 48 ty-four, one hundred thirty-five, and one hundred forty-five of the 49 transportation law, (iii) any moneys collected by the department of 50 transportation for services provided pursuant to agreements entered into 51 in accordance with section ninety-nine-r of the general municipal law, 52 and (iv) any other moneys collected therefor or credited or transferred 53 thereto from any other fund, account or source. 54 § 6. Paragraph (a) of subdivision 3 of section 89-b of the state 55 finance law, as amended by section 12 of part D of chapter 58 of the 56 laws of 2016, is amended to read as follows:A. 9509--B 107 1 (a) The special obligation reserve and payment account shall consist 2 (i) of all moneys required to be deposited in the dedicated highway and 3 bridge trust fund pursuant to the provisions of sections two hundred 4 eighty-nine-e, three hundred one-j, five hundred fifteen, subdivision 5 (e) of section five hundred thirty-eight and eleven hundred sixty-seven 6 of the tax law, section four hundred one of the vehicle and traffic law, 7 and section thirty-one of chapter fifty-six of the laws of nineteen 8 hundred ninety-three, (ii) all fees, fines or penalties collected by the 9 commissioner of transportation and the commissioner of motor vehicles 10 pursuant to section fifty-two, section three hundred twenty-six, section 11 eighty-eight of the highway law, subdivision fifteen of section three 12 hundred eighty-five, section four hundred twenty-three-a, section four 13 hundred ten, section three hundred seventeen, section three hundred 14 eighteen, article twelve-C, and paragraph (c-1) of subdivision two of 15 section five hundred three of the vehicle and traffic law, section 16 fifteen of this chapter, excepting moneys deposited with the state on 17 account of betterments performed pursuant to subdivision twenty-seven or 18 subdivision thirty-five of section ten of the highway law, and sections 19 ninety-four, one hundred thirty-five, and one hundred forty-five of the 20 transportation law, (iii) any moneys collected by the department of 21 transportation for services provided pursuant to agreements entered into 22 in accordance with section ninety-nine-r of the general municipal law, 23 and (iv) any other moneys collected therefor or credited or transferred 24 thereto from any other fund, account or source. 25 § 7. Subdivision 1 of section 1270-a of the public authorities law, as 26 amended by section 14 of part H of chapter 25 of the laws of 2009, is 27 amended to read as follows: 28 1. The authority shall create and establish a fund to be known as the 29 "metropolitan transportation authority special assistance fund" which 30 shall be kept separate from and shall not be commingled with any other 31 moneys of the authority. The special assistance fund shall consist of 32 three separate accounts: (i) the "transit account", (ii) the "commuter 33 railroad account" and (iii) the "corporate transportation account". 34 The authority shall make deposits in the transit account and the 35 commuter railroad account of the moneys received by it pursuant to the 36 provisions of section ninety-two-ff of the state finance law and subdi- 37 vision one of section two hundred sixty-one of the tax law in accordance 38 with the provisions thereof, and shall make deposits in the corporate 39 transportation account of the moneys received by it pursuant to the 40 provisions of subdivision two of section two hundred sixty-one of the 41 tax law and section ninety-two-ff of the state finance law. 42 § 8. This act shall take effect on the ninetieth day after it shall 43 have become a law; provided, however, that the amendments to paragraph 44 (a) of subdivision 3 of section 89-b of the state finance law made by 45 section five of this act shall be subject to the expiration and rever- 46 sion of such paragraph pursuant to section 13 of part U1 of chapter 62 47 of the laws of 2003, as amended, when upon such date the provisions of 48 section six of this act shall take effect. 49 PART RR 50 Section 1. The tax law is amended by adding a new section 1402-b to 51 read as follows: 52 § 1402-b. Additional transfer tax on conveyances for consideration of 53 five million dollars or more. (a) In addition to the taxes imposed by 54 sections fourteen hundred two and fourteen hundred two-a of this arti-A. 9509--B 108 1 cle, a tax is hereby imposed on each conveyance of real property or 2 interest therein when the consideration for the entire conveyance is 3 five million dollars or more. The rate of such tax shall be three- 4 tenths percent of the consideration or part thereof attributable to the 5 real property when such consideration for the entire conveyance is no 6 less than five million dollars but no more than ten million dollars. The 7 rate of such tax shall be one-half percent of the consideration or part 8 thereof attributable to the real property when such consideration for 9 the entire conveyance is no less than ten million dollars but no more 10 than fifty million dollars. The rate of such tax shall be seven-tenths 11 percent of the consideration or part thereof attributable to the real 12 property when such consideration for the entire conveyance is no less 13 than fifty million dollars but no more than one hundred million dollars. 14 The rate of such tax shall be nine-tenths percent of the consideration 15 or part thereof attributable to the real property when such consider- 16 ation for the entire conveyance is no less than one hundred million 17 dollars but no more than two hundred and fifty million dollars. The rate 18 of such tax shall be one and one-tenth percent of the consideration or 19 part thereof attributable to the real property when such consideration 20 for the entire conveyance is no less than two hundred fifty million 21 dollars but no more than five hundred million dollars. The rate of such 22 tax shall be one and three-tenths percent of the consideration or part 23 thereof attributable to the real property when such consideration for 24 the entire conveyance is no less than five hundred million dollars but 25 no more than one billion dollars. The rate of such tax shall be one and 26 one-half percent of the consideration or part thereof attributable to 27 the real property when such consideration for the entire conveyance is 28 no less than one billion dollars. 29 (b) The taxes, interest, and penalties imposed by this section and 30 collected or received by the commissioner shall be deposited daily with 31 such responsible banks, banking houses or trust companies, as may be 32 designated by the comptroller, to the credit of the comptroller. An 33 account may be established in one or more of such depositories. Such 34 deposits will be kept separate and apart from all other money in the 35 possession of the comptroller. The comptroller shall require adequate 36 security from all such depositories. Of the total revenue collected or 37 received under this section, the comptroller shall retain such amount as 38 the commissioner may determine to be necessary for refunds under this 39 section. The commissioner is authorized and directed to deduct from the 40 amount she or he receives under this section, before deposit into the 41 trust accounts designated by the comptroller, a reasonable amount neces- 42 sary to effectuate refunds of appropriations of the department to reim- 43 burse the department for the costs incurred to administer, collect and 44 distribute the taxes imposed by this section. 45 (c) Revenue collected or received from conveyances of real property or 46 interest therein subject to the tax imposed by this section and having 47 occurred in a city with a population of one million or more shall be 48 deposited by the comptroller weekly in the following manner: (i) seven- 49 ty-five percent of such revenue pursuant to the provisions of section 50 one hundred seventy-one-a of this chapter and (ii) twenty-five percent 51 of such revenue in the metropolitan transportation authority aid trust 52 account of the metropolitan transportation authority financial assist- 53 ance fund established by section ninety-two-ff of the state finance law 54 for deposit, subject to appropriation, in the transit account of the 55 metropolitan transportation authority special assistance fund estab- 56 lished by section twelve hundred seventy-a of the public authorities lawA. 9509--B 109 1 for the improvement of the service reliability and other capital and 2 operating costs of the subway system of the New York city transit 3 authority. 4 (d) Revenue collected or received from conveyances of real property or 5 interest therein subject to the tax imposed by this section and having 6 occurred within the metropolitan commuter transportation district as 7 defined by section twelve hundred sixty-two of the public authorities 8 law, excluding conveyances subject to subdivision (c) of this section, 9 shall be deposited by the comptroller weekly in the following manner: 10 (i) seventy-five percent of such revenue pursuant to the provisions of 11 section one hundred seventy-one-a of this chapter, (ii) twelve and five- 12 tenths percent of such revenue in the metropolitan transportation 13 authority aid trust account of the metropolitan transportation authority 14 financial assistance fund established by section ninety-two-ff of the 15 state finance law for deposit, subject to appropriation, in the commuter 16 railroad account of the metropolitan transportation authority special 17 assistance fund established by section twelve hundred seventy-a of the 18 public authorities law and which shall be utilized equally for the costs 19 of the Long Island Rail Road company and the Metro-North commuter rail- 20 road company, and (iii) twelve and five-tenths percent of such revenue 21 in the mass transportation operating assistance fund to the credit of 22 the metropolitan mass transportation operating assistance account estab- 23 lished by section eighty-eight-a of the state finance law, pursuant to 24 appropriations by the legislature for costs of mass transit systems 25 other than those mass transit operating agencies which receive money 26 from the metropolitan transportation authority dedicated tax fund. 27 (e) Revenue collected or received from conveyances of real property or 28 interest therein subject to the tax imposed by this section and having 29 occurred outside the metropolitan commuter transportation district as 30 defined by section twelve hundred sixty-two of the public authorities 31 law, shall be deposited by the comptroller weekly in the following 32 manner: (i) seventy-five percent of such revenue pursuant to the 33 provisions of section one hundred seventy-one-a of this chapter, (ii) 34 twelve and five-tenths percent in the dedicated highway and bridge trust 35 fund established by section eighty-nine-b of the state finance law, for 36 the costs of local highway and bridge projects pursuant to the consol- 37 idated local highway assistance program established pursuant to section 38 ten-c of the highway law, and (iii) twelve and five-tenths percent of 39 such revenue in the mass transportation operating assistance fund to the 40 credit of the public transportation systems operating assistance account 41 established by section eighty-eight-a of the state finance law, pursuant 42 to appropriations by the legislature. 43 (f) Notwithstanding the provisions of subdivision (a) of section four- 44 teen hundred four of this article, the additional tax imposed by this 45 section shall be paid by the grantee. If the grantee has failed to pay 46 the tax imposed by this article at the time required by section fourteen 47 hundred ten of this article or if the grantee is exempt from such tax, 48 the grantor shall have the duty to pay the tax. Where the grantor has 49 the duty to pay the tax because the grantee has failed to pay, such tax 50 shall be the joint and several liability of the grantor and the grantee. 51 (g) Except as otherwise provided in this section, all the provisions 52 of this article relating to or applicable to the administration, 53 collection, determination and distribution of the tax imposed by section 54 fourteen hundred two of this article shall apply to the tax imposed 55 under the authority of this section with such modifications as may be 56 necessary to adapt such language to the tax so authorized. SuchA. 9509--B 110 1 provisions shall apply with the same force and effect as if those 2 provisions had been set forth in this section except to the extent that 3 any provision is either inconsistent with a provision of this section or 4 not relevant to the tax authorized by this section. 5 § 2. Subdivision 3 of section 92-ff of the state finance law, as added 6 by section 1 of part G of chapter 25 of the laws of 2009, is amended to 7 read as follows: 8 3. Such fund shall consist of all moneys collected therefore or cred- 9 ited or transferred thereto from any other fund, account or source, 10 including, without limitation, the revenues derived from the metropol- 11 itan commuter transportation mobility tax imposed by article twenty- 12 three of the tax law; revenues derived from the special supplemental tax 13 on passenger car rentals imposed by section eleven hundred sixty-six-a 14 of the tax law; revenues derived from the transportation surcharge 15 imposed by article twenty-nine-A of the tax law; the supplemental regis- 16 tration fees imposed by article seventeen-C of the vehicle and traffic 17 law; [and] the supplemental metropolitan commuter transportation 18 district license fees imposed by section five hundred three of the vehi- 19 cle and traffic law; and revenues derived from the additional transfer 20 tax on conveyances imposed by section fourteen hundred two-b of the tax 21 law. Any interest received by the comptroller on moneys on deposit in 22 the metropolitan transportation authority financial assistance fund 23 shall be retained in and become a part of such fund. 24 § 3. Paragraph (a) of subdivision 6 of section 92-ff of the state 25 finance law, as added by section 1 of part G of chapter 25 of the laws 26 of 2009, is amended to read as follows: 27 (a) The "metropolitan transportation authority aid trust account" 28 shall consist of revenues required to be deposited therein pursuant to 29 the provisions of section eleven hundred sixty-six-a of the tax law; 30 article twenty-nine-A of the tax law; article seventeen-C of the vehicle 31 and traffic law; [and] section five hundred three of the vehicle and 32 traffic law; section fourteen hundred two-b of the tax law, and all 33 other moneys credited or transferred thereto from any other fund or 34 source pursuant to law. 35 § 4. Paragraph (a) of subdivision 5 of section 88-a of the state 36 finance law, as added by chapter 481 of the laws of 1981, is amended to 37 read as follows: 38 (a) The "public transportation systems operating assistance account" 39 shall consist of revenues required to be deposited therein pursuant to 40 the provisions of section one hundred eighty-two-a of the tax law, the 41 receipts required to be deposited pursuant to section fourteen hundred 42 two-b of the tax law, and all other moneys credited or transferred ther- 43 eto from any other fund or source pursuant to law. 44 § 5. Paragraph (a) of subdivision 7 of section 88-a of the state 45 finance law, as added by chapter 481 of the laws of 1981, is amended to 46 read as follows: 47 (a) The "metropolitan mass transportation operating assistance 48 account" shall consist of the revenues derived from the taxes for the 49 metropolitan transportation district imposed by section eleven hundred 50 nine of the tax law and that proportion of the receipts received pursu- 51 ant to the tax imposed by article [nine-a] nine-A of such law as speci- 52 fied in section one hundred seventy-one-a of such law, and that propor- 53 tion of the receipts received pursuant to the tax imposed by article 54 nine of such law as specified in section two hundred five of such law, 55 and the receipts required to be deposited pursuant to section fourteen 56 hundred two-b of the tax law, and the receipts required to be depositedA. 9509--B 111 1 pursuant to the provisions of section one hundred eighty-two-a of the 2 tax law, and all other moneys credited or transferred thereto from any 3 other fund or source pursuant to law. 4 § 6. Paragraph (a) of subdivision 3 of section 89-b of the state 5 finance law, as amended by section 11 of part D of chapter 58 of the 6 laws of 2016, is amended to read as follows: 7 (a) The special obligation reserve and payment account shall consist 8 (i) of all moneys required to be deposited in the dedicated highway and 9 bridge trust fund pursuant to the provisions of sections two hundred 10 five, two hundred eighty-nine-e, three hundred one-j, five hundred 11 fifteen [and], eleven hundred sixty-seven and fourteen hundred two-b of 12 the tax law, section four hundred one of the vehicle and traffic law, 13 and section thirty-one of chapter fifty-six of the laws of nineteen 14 hundred ninety-three, (ii) all fees, fines or penalties collected by the 15 commissioner of transportation and the commissioner of motor vehicles 16 pursuant to section fifty-two, section three hundred twenty-six, section 17 eighty-eight of the highway law, subdivision fifteen of section three 18 hundred eighty-five, section four hundred twenty-three-a, section four 19 hundred ten, section three hundred seventeen, section three hundred 20 eighteen, article twelve-C, and paragraph (c-1) of subdivision two of 21 section five hundred three of the vehicle and traffic law, section two 22 of the chapter of the laws of two thousand three that amended this para- 23 graph, subdivision (d) of section three hundred four-a, paragraph one of 24 subdivision (a) and subdivision (d) of section three hundred five, 25 subdivision six-a of section four hundred fifteen and subdivision (g) of 26 section twenty-one hundred twenty-five of the vehicle and traffic law, 27 section fifteen of this chapter, excepting moneys deposited with the 28 state on account of betterments performed pursuant to subdivision twen- 29 ty-seven or subdivision thirty-five of section ten of the highway law, 30 and sections ninety-four, one hundred thirty-five, and one hundred 31 forty-five of the transportation law, (iii) any moneys collected by the 32 department of transportation for services provided pursuant to agree- 33 ments entered into in accordance with section ninety-nine-r of the 34 general municipal law, and (iv) any other moneys collected therefor or 35 credited or transferred thereto from any other fund, account or source. 36 § 7. Paragraph (a) of subdivision 3 of section 89-b of the state 37 finance law, as amended by section 12 of part D of chapter 58 of the 38 laws of 2016, is amended to read as follows: 39 (a) The special obligation reserve and payment account shall consist 40 (i) of all moneys required to be deposited in the dedicated highway and 41 bridge trust fund pursuant to the provisions of sections two hundred 42 eighty-nine-e, three hundred one-j, five hundred fifteen [and], eleven 43 hundred sixty-seven, and section fourteen hundred two-b of the tax law, 44 section four hundred one of the vehicle and traffic law, and section 45 thirty-one of chapter fifty-six of the laws of nineteen hundred ninety- 46 three, (ii) all fees, fines or penalties collected by the commissioner 47 of transportation and the commissioner of motor vehicles pursuant to 48 section fifty-two, section three hundred twenty-six, section eighty- 49 eight of the highway law, subdivision fifteen of section three hundred 50 eighty-five, section four hundred twenty-three-a, section four hundred 51 ten, section three hundred seventeen, section three hundred eighteen, 52 article twelve-C, and paragraph (c-1) of subdivision two of section five 53 hundred three of the vehicle and traffic law, section fifteen of this 54 chapter, excepting moneys deposited with the state on account of better- 55 ments performed pursuant to subdivision twenty-seven or subdivision 56 thirty-five of section ten of the highway law, and sections ninety-four,A. 9509--B 112 1 one hundred thirty-five, and one hundred forty-five of the transporta- 2 tion law, (iii) any moneys collected by the department of transportation 3 for services provided pursuant to agreements entered into in accordance 4 with section ninety-nine-r of the general municipal law, and (iv) any 5 other moneys collected therefor or credited or transferred thereto from 6 any other fund, account or source. 7 § 8. Subdivision 1 of section 1270-a of the public authorities law, as 8 amended by section 14 of part H of chapter 25 of the laws of 2009, is 9 amended to read as follows: 10 1. The authority shall create and establish a fund to be known as the 11 "metropolitan transportation authority special assistance fund" which 12 shall be kept separate from and shall not be commingled with any other 13 moneys of the authority. The special assistance fund shall consist of 14 three separate accounts: (i) the "transit account", (ii) the "commuter 15 railroad account" and (iii) the "corporate transportation account". 16 The authority shall make deposits in the transit account and the 17 commuter railroad account of the moneys received by it pursuant to the 18 provisions of subdivision one of section two hundred sixty-one of the 19 tax law and section fourteen hundred two-b of the tax law in accordance 20 with the provisions thereof, and shall make deposits in the corporate 21 transportation account of the moneys received by it pursuant to the 22 provisions of subdivision two of section two hundred sixty-one of the 23 tax law and section ninety-two-ff of the state finance law. 24 § 9. This act shall take effect April 1, 2018, and shall apply to 25 conveyances occurring on or after the thirtieth day after this act shall 26 have become a law; provided, however, that the amendments to paragraph 27 (a) of subdivision 3 of section 89-b of the state finance law made by 28 section six of this act shall be subject to the expiration and reversion 29 of such paragraph pursuant to section 13 of part U1 of chapter 62 of the 30 laws of 2003, as amended, when upon such date the provisions of section 31 seven of this act shall take effect. 32 PART SS 33 Section 1. Paragraph 1 of subsection (a) of section 1301 of the tax 34 law, as amended by section 2 of part F of chapter 61 of the laws of 35 2017, is amended to read as follows: 36 (1) a tax on the personal income of residents of such city, at the 37 rates provided for under subsection (a) of section thirteen hundred four 38 of this article for taxable years beginning before two thousand [twenty] 39 twenty-one, and at the rates provided for under subsection (b) of 40 section thirteen hundred four of this article for taxable years begin- 41 ning after two thousand twenty, provided, however, that if, for any 42 taxable year beginning after two thousand twenty, the rates set forth in 43 such subsection (b) are rendered inapplicable and the rates set forth in 44 such subsection (a) are rendered applicable, then the tax for such taxa- 45 ble year shall be at the rates provided under [subparagraph] subpara- 46 graphs (A) of paragraphs one, two and three of such subsection (a), 47 § 2. This act shall take effect immediately. 48 PART TT 49 Section 1. Subparagraphs (A) and (B) of paragraph 2 of subsection (pp) 50 of section 606 of the tax law, as amended by section 1 of part V of 51 chapter 59 of the laws of 2013, are amended to read as follows:A. 9509--B 113 1 (A) With respect to any particular residence of a taxpayer, the credit 2 allowed under paragraph one of this subsection shall not exceed fifty 3 thousand dollars for taxable years beginning on or after January first, 4 two thousand ten and before January first, two thousand [twenty] twen- 5 ty-five and twenty-five thousand dollars for taxable years beginning on 6 or after January first, two thousand [twenty] twenty-five. In the case 7 of a husband and wife, the amount of the credit shall be divided between 8 them equally or in such other manner as they may both elect. If a 9 taxpayer incurs qualified rehabilitation expenditures in relation to 10 more than one residence in the same year, the total amount of credit 11 allowed under paragraph one of this subsection for all such expenditures 12 shall not exceed fifty thousand dollars for taxable years beginning on 13 or after January first, two thousand ten and before January first, two 14 thousand [twenty] twenty-five and twenty-five thousand dollars for taxa- 15 ble years beginning on or after January first, two thousand [twenty] 16 twenty-five. 17 (B) For taxable years beginning on or after January first, two thou- 18 sand ten and before January first, two thousand [twenty] twenty-five, if 19 the amount of credit allowable under this subsection shall exceed the 20 taxpayer's tax for such year, and the taxpayer's New York adjusted gross 21 income for such year does not exceed sixty thousand dollars, the excess 22 shall be treated as an overpayment of tax to be credited or refunded in 23 accordance with the provisions of section six hundred eighty-six of this 24 article, provided, however, that no interest shall be paid thereon. If 25 the taxpayer's New York adjusted gross income for such year exceeds 26 sixty thousand dollars, the excess credit that may be carried over to 27 the following year or years and may be deducted from the taxpayer's tax 28 for such year or years. For taxable years beginning on or after January 29 first, two thousand [twenty] twenty-five, if the amount of credit allow- 30 able under this subsection shall exceed the taxpayer's tax for such 31 year, the excess may be carried over to the following year or years and 32 may be deducted from the taxpayer's tax for such year or years. 33 § 2. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 34 of the tax law, as amended by section 1 of part F of chapter 59 of the 35 laws of 2013, is amended to read as follows: 36 (A) For taxable years beginning on or after January first, two thou- 37 sand ten and before January first, two thousand [twenty] twenty-five, a 38 taxpayer shall be allowed a credit as hereinafter provided, against the 39 tax imposed by this article, in an amount equal to one hundred percent 40 of the amount of credit allowed the taxpayer with respect to a certified 41 historic structure under subsection (a) (2) of section 47 of the [feder-42al] internal revenue code with respect to a certified historic structure 43 located within the state. Provided, however, the credit shall not exceed 44 five million dollars. For taxable years beginning on or after January 45 first, two thousand [twenty] twenty-five, a taxpayer shall be allowed a 46 credit as hereinafter provided, against the tax imposed by this article, 47 in an amount equal to thirty percent of the amount of credit allowed the 48 taxpayer with respect to a certified historic structure under subsection 49 (a)(2) of section 47 of the [federal] internal revenue code with respect 50 to a certified historic structure located within the state; provided, 51 however, the credit shall not exceed one hundred thousand dollars. For 52 purposes of this subsection, any references to the sections of the 53 Internal Revenue Code shall mean such sections as they existed prior to 54 the enactment of Public Law 115-97.A. 9509--B 114 1 § 3. Paragraph (a) of subdivision 26 of section 210-B of the tax law, 2 as added by section 17 of part A of chapter 59 of the laws of 2014, is 3 amended to read as follows: 4 (a) Application of credit. (i) For taxable years beginning on or after 5 January first, two thousand ten, and before January first, two thousand 6 [twenty] twenty-five, a taxpayer shall be allowed a credit as hereinaft- 7 er provided, against the tax imposed by this article, in an amount equal 8 to one hundred percent of the amount of credit allowed the taxpayer for 9 the same taxable year with respect to a certified historic structure 10 under subsection (c)(2) of section 47 of the internal revenue code with 11 respect to a certified historic structure located within the state. 12 Provided, however, the credit shall not exceed five million dollars. 13 (ii) For taxable years beginning on or after January first, two thou- 14 sand [twenty] twenty-five, a taxpayer shall be allowed a credit as here- 15 inafter provided, against the tax imposed by this article, in an amount 16 equal to thirty percent of the amount of credit allowed the taxpayer for 17 the same taxable year with respect to a certified historic structure 18 under subsection (c)(3) of section 47 of the internal revenue code with 19 respect to a certified historic structure located within the state. 20 Provided, however, the credit shall not exceed one hundred thousand 21 dollars. For purposes of this subdivision, any references to the 22 sections of the Internal Revenue Code shall mean such sections as they 23 existed prior to the enactment of Public Law 115-97. 24 § 4. Subparagraph (A) of paragraph 1 of subdivision (y) of section 25 1511 of the tax law, as amended by section 4 of part F of chapter 59 of 26 the laws of 2013, is amended to read as follows: 27 (A) For taxable years beginning on or after January first, two thou- 28 sand ten and before January first, two thousand [twenty] twenty-five, a 29 taxpayer shall be allowed a credit as hereinafter provided, against the 30 tax imposed by this article, in an amount equal to one hundred percent 31 of the amount of credit allowed the taxpayer with respect to a certified 32 historic structure under subsection (a)(2) of section 47 of the [feder-33al] internal revenue code with respect to a certified historic structure 34 located within the state. Provided, however, the credit shall not exceed 35 five million dollars. For taxable years beginning on or after January 36 first, two thousand [twenty] twenty-five, a taxpayer shall be allowed a 37 credit as hereinafter provided, against the tax imposed by this article, 38 in an amount equal to thirty percent of the amount of credit allowed the 39 taxpayer with respect to a certified historic structure under subsection 40 (a)(2) of section 47 of the [federal] internal revenue code with respect 41 to a certified historic structure located within the state. Provided, 42 however, the credit shall not exceed one hundred thousand dollars. For 43 purposes of this subdivision, any references to the sections of the 44 Internal Revenue Code shall mean such sections as they existed prior to 45 the enactment of Public Law 115-97. 46 § 5. This act shall take effect immediately and shall apply to taxable 47 years beginning on or after January 1, 2018. 48 PART UU 49 Section 1. Section 11-2101 of the administrative code of the city of 50 New York is amended by adding four new subdivisions 19, 20, 21 and 22 to 51 read as follows: 52 19. "Prior conveyance of the property." The most recent conveyance of 53 the real property, whether conveyed on its own or as part of a larger 54 conveyance.A. 9509--B 115 1 20. "Family member." A person's child, spouse, domestic partner, 2 parent, sibling, grandchild or grandparent, or the child or parent of a 3 person's spouse or domestic partner. 4 21. "Principal place of residence." A person's permanent or primary 5 home that the person occupies for more than a temporary or transitory 6 purpose. 7 22. "New housing." A residential unit or units that did not exist at 8 the time of the prior conveyance of the property to the extent that the 9 property had no residential units at the time of the prior conveyance 10 and at least one residential unit was subsequently added. 11 § 2. The administrative code of the city of New York is amended by 12 adding a new section 11-2120 to read as follows: 13 § 11-2120 Imposition of flip tax. a. In addition to the tax imposed by 14 section 11-2102 of this chapter, there is hereby imposed on each deed, 15 instrument or transaction at the time of the transfer whereby any prop- 16 erties of one to five separate residential units are transferred by a 17 grantor to a grantee, and such transfer is made within two years from 18 the prior conveyance of the property. The tax, which shall be paid by 19 the grantor, shall be at the rate of: 20 (1) fifteen percent when the time since the prior conveyance of the 21 property is less than one year; and 22 (2) ten percent when the time since the prior conveyance of the prop- 23 erty is greater than or equal to one year but less than two years. 24 b. The tax defined in subdivision a of this section shall expire when 25 the time since the prior conveyance of the property is two years. 26 c. The taxes, interest, and penalties imposed by this section and 27 collected or received by the commissioner of finance shall be deposited 28 daily with such responsible banks, banking houses or trust companies, as 29 may be designated by the comptroller, to the credit of the comptroller 30 in trust for the metropolitan transportation authority. An account may 31 be established in one or more of such depositories. Such deposits will 32 be kept separate and apart from all other money in the possession of the 33 comptroller. The comptroller shall require adequate security from all 34 such depositories. Of the total revenue collected or received under this 35 section, the comptroller shall retain such amount as the commissioner of 36 finance may determine to be necessary for refunds under this section. 37 The commissioner of finance is authorized and directed to deduct from 38 the amounts he or she receives under this section, before deposit into 39 the trust accounts designated by the comptroller, a reasonable amount 40 necessary to effectuate refunds of appropriations of the department of 41 finance to reimburse the department for the costs incurred to adminis- 42 ter, collect and distribute the taxes imposed by this section. 43 d. On or before the twelfth and twenty-sixth day of each succeeding 44 month, after reserving such amount for such refunds and deducting such 45 amounts for such costs as provided for in subdivision c of this section, 46 the commissioner of finance shall certify to the comptroller the amount 47 of all revenues so received during the prior month as a result of the 48 taxes, interest and penalties so imposed. The amount of revenues so 49 certified shall be paid over by the fifteenth and the final business day 50 of each succeeding month from such account for deposit into the transit 51 account of the metropolitan transportation authority special assistance 52 fund, established by section twelve hundred seventy-a of the public 53 authorities law for the improvement of the service reliability and other 54 capital and operating costs of the subway system of the New York city 55 transit authority.A. 9509--B 116 1 e. (1) The following persons shall be exempt from the payment of the 2 tax imposed by this section: 3 (i) Property owners conveying property to a family member. 4 (ii) Property owners who can demonstrate a financial hardship which 5 justifies a conveyance of property in less than or equal to two years. 6 (iii) Property owners who have resided on the property to be sold as 7 her or his principal place of residency. 8 (2) The following properties shall be exempt from the payment of the 9 tax imposed by this section: 10 (i) Property which was conveyed within one year of the death of the 11 property owner. 12 (ii) Property being sold as new housing. 13 (iii) Property which the consideration or value conveyed, which is 14 otherwise subject to the tax imposed in this section, is less than or 15 equal to the consideration or value of such property conveyed at the 16 time of the prior conveyance of property. 17 (iv) Property which is otherwise exempt from payment of a real proper- 18 ty transfer tax, as defined in this chapter. 19 § 3. Subdivision 1 of section 1270-a of the public authorities law, as 20 amended by section 14 of part H of chapter 25 of the laws of 2009, is 21 amended to read as follows: 22 1. The authority shall create and establish a fund to be known as the 23 "metropolitan transportation authority special assistance fund" which 24 shall be kept separate from and shall not be commingled with any other 25 moneys of the authority. The special assistance fund shall consist of 26 three separate accounts: (i) the "transit account", (ii) the "commuter 27 railroad account" and (iii) the "corporate transportation account". 28 The authority shall make deposits in the transit account and the 29 commuter railroad account of the moneys received by it pursuant to the 30 provisions of section 11-2120 of the administrative code of the city of 31 New York, and subdivision one of section two hundred sixty-one of the 32 tax law in accordance with the provisions thereof, and shall make depos- 33 its in the corporate transportation account of the moneys received by it 34 pursuant to the provisions of subdivision two of section two hundred 35 sixty-one of the tax law and section ninety-two-ff of the state finance 36 law. 37 § 4. This act shall take effect on the ninetieth day after it shall 38 have become a law and shall apply to conveyances occurring on or after 39 such date. 40 PART VV 41 Section 1. Paragraph 1 of subdivision (b) of section 37 of the tax 42 law, as amended by section 1 of part V of chapter 60 of the laws of 43 2016, is amended to read as follows: 44 (1) for the first five hundred thousand gallons of: 45 i. beer[, cider, wine or liquor] produced in this state in the taxable 46 year, the credit shall equal fourteen cents per gallon; [and] 47 ii. cider, artificially carbonated sparkling cider, and natural spar- 48 kling cider, containing more than three and two-tenths per centum of 49 alcohol by volume produced in this state in the taxable year, the credit 50 shall equal three and seventy-nine hundredths cents per gallon; 51 iii. still wine, artificially carbonated sparkling wine, and natural 52 sparkling wine produced in this state in the taxable year, the credit 53 shall equal thirty cents per gallon;A. 9509--B 117 1 iv. liquors containing not more than twenty-four per centum of alcohol 2 by volume produced in this state in the taxable year, the credit shall 3 equal sixty-seven cents per liter; 4 v. liquors containing not more than two per centum of alcohol by 5 volume produced in this state in the taxable year, the credit shall 6 equal one cent per liter; 7 vi. all other liquors produced in this state in the taxable year, the 8 credit shall equal one dollar and seventy cents per liter; and 9 § 2. This act shall take effect immediately and shall apply to taxable 10 years beginning on or after January 1, 2018. 11 PART WW 12 Section 1. The tax law is amended by adding a new section 183-b to 13 read as follows: 14 § 183-b. Business tax surcharge on transportation and transmission 15 corporations. 1. In addition to the tax imposed by sections one hundred 16 eighty-three and one hundred eighty-three-a of this article, every 17 corporation, joint-stock company or association that is subject to 18 section one hundred eighty-three of this article, shall pay for the 19 privilege of exercising its corporate franchise, or doing business, or 20 of employing capital, or of owning or leasing property in such corporate 21 or organized capacity, or of maintaining an office in such district, a 22 tax surcharge shall be computed at the rate of three percent of the tax 23 imposed under section one hundred eighty-three of this article; 24 provided, however, that such surcharge shall be applied only if the 25 highest taxable base calculated under section one hundred eighty-three 26 of this article is more than seventy-five thousand dollars. 27 2. Notwithstanding any contrary provisions of state or local law, the 28 tax surcharge imposed under this section shall not be allowed as a 29 deduction in the computation of any state or local tax imposed under 30 this chapter or any chapter or local law. Furthermore, the credits 31 otherwise allowable under this article shall not be allowed against the 32 tax surcharge imposed by this section. 33 § 2. The tax law is amended by adding a new section 184-b to read as 34 follows: 35 § 184-b. Business tax surcharge on transportation and transmission 36 corporations. 1. In addition to the tax imposed by sections one hundred 37 eighty-four and one hundred eighty-four-a of this article, every corpo- 38 ration, joint-stock company or association, shall pay for the privilege 39 of exercising its corporate franchise, or of doing business, or of 40 employing capital, or of owning or leasing property in the state in such 41 corporate or organized capacity, or of maintaining an office in such 42 district, a tax surcharge, which tax surcharge, shall be computed at the 43 rate of three percent of the tax imposed under section one hundred 44 eighty-four of this article for taxable years; provided, however, that 45 such surcharge shall be applied only if the gross earnings calculated 46 under section one hundred eighty-four of this article is more than twen- 47 ty million dollars. 48 2. Notwithstanding any contrary provisions of state or local law, the 49 tax surcharge imposed under this section shall not be allowed as a 50 deduction in the computation of any state or local tax imposed under 51 this chapter or any chapter or local law. Furthermore, the credits 52 otherwise allowable under this article shall not be allowed against the 53 tax surcharge imposed by this section.A. 9509--B 118 1 § 3. The tax law is amended by adding a new section 186-i to read as 2 follows: 3 § 186-i. Business tax surcharge on utility and telecommunication 4 services. 1. (a) Every provider of telecommunication services doing 5 business in the state shall pay a tax surcharge, in addition to the tax 6 imposed by paragraph (a) of subdivision one of sections one hundred 7 eighty-six-a and one hundred eighty-six-c of this article, to be 8 computed at the rate of three percent of the tax imposed under such 9 sections. Provided however, such tax surcharge shall only be applied if 10 the gross income calculated under paragraph (a) of subdivision one of 11 section one hundred eighty-six-a of this article is more than one 12 million five hundred thousand dollars. 13 (b) Every utility and every other utility doing business in the state 14 shall pay a tax surcharge in addition to tax imposed by paragraph (b) or 15 (c) of subdivision one of section one hundred eighty-six-a and section 16 one hundred eighty-six-c of this article, to be computed at the rate of 17 three percent of the tax imposed under paragraph (b) or (c) of subdivi- 18 sion one of section one hundred eighty-six-a of this article. Provided, 19 however, that such surcharge shall only be applied if the gross income 20 calculated under such paragraph of section one hundred eighty-six-a is 21 more than three hundred million dollars. 22 (c) Notwithstanding any other provision of state or local law, the tax 23 surcharge imposed by this section shall not be allowed as a deduction 24 and shall, to the extent deductible in determining federal adjusted 25 gross income, be added to federal adjusted gross income, in the computa- 26 tion of any tax imposed under this chapter or any other chapter of state 27 or local law. Furthermore, the credits otherwise allowable under this 28 article shall not be allowed against the tax surcharge imposed by this 29 section. 30 2. (a) There is hereby imposed a surcharge on the gross receipts from 31 telecommunication services, in addition to the excise tax imposed by 32 subparagraph one of paragraph (a) of subdivision two of section one 33 hundred eighty-six-e of this article, at the rate of three percent of 34 the tax imposed by subparagraph one of paragraph (a) of subdivision two 35 of section one hundred eighty-six-e of this article and such surcharge 36 shall only be applied if the gross receipts calculated under such 37 section is more than fifty million dollars. 38 (b) There is hereby imposed a surcharge on the gross receipts from 39 mobile telecommunication services, in addition to the excise tax imposed 40 by subparagraph two of paragraph (a) of subdivision two of section one 41 hundred eighty-six-e of this article, at the rate of three percent of 42 the tax imposed by subparagraph two of paragraph (a) of subdivision two 43 of section one hundred eighty-six-e of this article and such tax 44 surcharge shall only be applied if the gross receipts calculated under 45 such section is more than fifty million dollars. 46 (c) All the definitions and other provisions of section one hundred 47 eighty-six-e of this article shall apply to the tax imposed by this 48 subdivision with such modification and limitation as may be necessary in 49 order to adapt the language of such section one hundred eighty-six-e of 50 this article to the surcharge imposed by this subdivision within the 51 state so as to include any mobile telecommunications service provided by 52 a home service provider where the mobile telecommunications customer's 53 place of primary use is within the state. 54 3. Notwithstanding any other provision of state or local law, the tax 55 surcharge imposed by this section shall not be allowed as a deduction 56 and shall, to the extent deductible in determining federal adjustedA. 9509--B 119 1 gross income, be added to federal adjusted gross income, in the computa- 2 tion of any tax imposed under this chapter or any other chapter of state 3 or local law. Furthermore, the credits otherwise allowable under this 4 article shall not be allowed against the tax surcharge imposed by this 5 section. 6 § 4. The tax law is amended by adding a new section 209-L to read as 7 follows: 8 § 209-L. Business tax surcharge on franchise corporations. 1. (a) For 9 the privilege of exercising its corporate franchise, or of doing busi- 10 ness, or of employing capital, or of owning or leasing property in a 11 corporate or organized capacity, or of maintaining an office, or of 12 deriving receipts from activity in the state, for all or any part of its 13 taxable year, there is hereby imposed on every corporation, other than a 14 New York S corporation, subject to tax under section two hundred nine of 15 this article, or any receiver, referee, trustee, assignee or other fidu- 16 ciary, or any officer or agent appointed by any court, who conducts the 17 business of any such corporation, a tax surcharge, in addition to the 18 tax imposed under sections two hundred nine and two hundred nine-b of 19 this article, to be computed at the rate of three percent of the tax 20 imposed under section two hundred nine of this article. Provided, howev- 21 er, this surcharge shall only be applied if the entire net income of the 22 taxpayer calculated under such section is more than one million dollars. 23 (b) All the definitions and other provisions of section two hundred 24 nine of this article shall apply to the tax imposed by this section with 25 such modification and limitation as may be necessary in order to adapt 26 the language of such section two hundred nine of this article to the 27 surcharge imposed by this section. 28 2. Notwithstanding any contrary provisions of state or local law, the 29 tax surcharge imposed under this section shall not be allowed as a 30 deduction in the computation of any tax imposed under this chapter. 31 Furthermore, the credits otherwise allowable under this article shall 32 not be allowed against the tax surcharge imposed by this section. 33 § 5. The tax law is amended by adding a new section 1506 to read as 34 follows: 35 § 1506. Business tax surcharge on insurance corporations. (a) Every 36 domestic insurance corporation and every foreign or alien insurance 37 corporation, and every life insurance corporation described in subdivi- 38 sion (b) of section fifteen hundred one of this article, for the privi- 39 lege of exercising its corporate franchise, or of doing business, or of 40 employing capital, or of owning or leasing property within the state in 41 a corporate or organized capacity, or of maintaining an office in the 42 state, except corporations specified in subdivision (c) of section 43 fifteen hundred twelve of this article, shall pay, in addition to the 44 taxes otherwise imposed by this article, a tax surcharge on the taxes 45 imposed under this article after the deduction of any credits otherwise 46 allowable under this article as allocated to such district. 47 (b) Such tax surcharge shall be computed at the rate of three percent 48 of the taxes imposed under sections fifteen hundred one, fifteen hundred 49 two-a, and fifteen hundred ten of this article, as limited or otherwise 50 determined by subdivision (a) or (b) of section fifteen hundred five of 51 this article, after the deduction of any credits otherwise allowable 52 under this article. Provided, however, such surcharge shall only be 53 applied, in case of life insurance corporations, if the entire net 54 income calculated under section fifteen hundred three is more than two 55 million dollars; and in case of non-life insurance corporations, the 56 surcharge shall only be applied if the gross direct premiums less returnA. 9509--B 120 1 premiums written on risks located or resident in this state that are 2 subject to the tax under section fifteen hundred two-a and fifteen 3 hundred ten of this article is more than fifty million dollars. 4 (c) Notwithstanding any contrary provisions of state or local law, the 5 tax surcharge imposed under this section shall not be allowed as a 6 deduction in the computation of any state or local tax imposed under 7 this chapter or any chapter or local law. The credits set forth in 8 section fifteen hundred eleven of this article shall not be allowed 9 against the tax surcharge imposed by this section. 10 (d) (1) If, by the laws of any state other than this state, or by the 11 action of any public official of such other state, any insurer organized 12 or domiciled in this state, or the duly authorized agents thereof, 13 subject to the business tax surcharge imposed by this section shall be 14 required to pay taxes for the privilege of doing business in such other 15 state which taxes are imposed or assessed because of the taxes imposed 16 or assessed under this section, in computing the tax imposed by this 17 section a credit shall be allowed for taxes paid to other states, which 18 credit shall be determined pursuant to the provisions of this section; 19 provided, however, the credit allowed any insurer under this subdivision 20 shall in no event be greater than the tax surcharge payable by such 21 insurer pursuant to this section for the taxable year with respect to 22 which such amount has been imposed or assessed by such other states. 23 (2) In addition to any other requirements of this article, an insurer 24 claiming a credit under this subdivision shall attach to the returns 25 required pursuant to this section and section fifteen hundred fifteen of 26 this article a computation identifying the credit attributable to taxes 27 paid to other states because of the tax surcharge imposed by this 28 section, which credit shall be further broken down to reflect amounts 29 and taxable years to which the retaliatory taxes giving rise to the 30 credit relate. The credit attributable to taxes paid to other states 31 because of the tax surcharge imposed by this section shall be the 32 difference between:(i) the credit which would be claimed by the insurer 33 pursuant to subdivision (c) of section fifteen hundred eleven of this 34 chapter if the tax surcharge imposed by this section were permitted in 35 the computation of such credit, and (ii) the credit which is claimed by 36 such insurer pursuant to such subdivision (c). 37 (3) To the extent not inconsistent with the provisions of this subdi- 38 vision, the provisions of paragraphs four and five of subdivision (c) of 39 section fifteen hundred eleven of this chapter shall apply with respect 40 to the credit allowed under this subdivision. 41 (4) No credit against taxes paid to other jurisdictions under subdivi- 42 sion (c) of section fifteen hundred eleven of this article shall be 43 allowed for any taxes paid under this section by any domestic insurance 44 corporation, including life insurance corporations subject to tax under 45 this section. 46 § 6. Subdivision 1 of section 197-a of the tax law, as amended by 47 section 8 of part Y of chapter 63 of the laws of 2000, is amended to 48 read as follows: 49 1. Every taxpayer subject to the taxes imposed under sections one 50 hundred eighty-two, one hundred eighty-two-a, former section one hundred 51 eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one 52 hundred eighty-six-e of this article shall make a declaration of its 53 estimated tax for the current taxable year, containing such information 54 as the commissioner may prescribe by regulations or instructions, if 55 such estimated tax can reasonably be expected to exceed one thousand 56 dollars. If a taxpayer is subject to the tax surcharge imposed underA. 9509--B 121 1 section one hundred eighty-four-a or one hundred eighty-six-c of this 2 article [and], such taxpayer's estimated tax under section one hundred 3 eighty-four or one hundred eighty-six-a of this article and such taxpay- 4 er's estimated tax under section one hundred eighty-three-b, one hundred 5 eighty-four-b or one hundred eighty-six-i of this article, respectively, 6 can reasonably be expected to exceed one thousand dollars, such taxpayer 7 shall also make a declaration of its estimated tax surcharge for the 8 current taxable year. 9 § 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, 10 as amended by section 7 of part Q of chapter 60 of the laws of 2016, is 11 amended to read as follows: 12 (a) For taxable years beginning on or after January first, nineteen 13 hundred seventy-seven, every taxpayer subject to tax under section one 14 hundred eighty-four, one hundred eighty-six-a or one hundred 15 eighty-six-e of this article, must pay in each year an amount equal to 16 (i) twenty-five percent of the tax imposed under each of such sections 17 for the second preceding taxable year if the second preceding year's tax 18 exceeded one thousand dollars but was equal to or less than one hundred 19 thousand dollars, or (ii) forty percent of the tax imposed under any of 20 these sections for the second preceding taxable year if the second 21 preceding year's tax exceeded one hundred thousand dollars. If the 22 second preceding year's tax under section one hundred eighty-four, one 23 hundred eighty-six-a or one hundred eighty-six-e of this article 24 exceeded one thousand dollars and the taxpayer is subject to the tax 25 surcharge imposed by section one hundred eighty-four-a [or], one hundred 26 eighty-six-c, one hundred eighty-three-b, one hundred eight-four-b, or 27 one hundred eighty-six-i of this article, respectively, the taxpayer 28 must also pay in each such year an amount equal to (i) twenty-five 29 percent of the tax surcharge imposed under such section for the second 30 preceding taxable year if the second preceding year's tax exceeded one 31 thousand dollars but was equal to or less than one hundred thousand 32 dollars, or (ii) forty percent of the tax surcharge imposed under that 33 section for the second preceding taxable year if the second preceding 34 year's tax exceeded one hundred thousand dollars. The amount or amounts 35 must be paid with the return or report required to be filed with respect 36 to the tax or tax surcharge for the preceding taxable year or with an 37 application for extension of the time for filing the return or report, 38 for taxable years beginning before January first, two thousand sixteen. 39 The amount or amounts that must be paid with respect to the tax or tax 40 surcharge for the second preceding year must be paid on or before the 41 fifteenth day of the third month following the close of the taxable 42 year, for taxable years beginning on or after January first, two thou- 43 sand sixteen. 44 § 8. Subdivision (a) of section 213-a of the tax law, as amended by 45 chapter 166 of the laws of 1991, is amended to read as follows: 46 (a) Requirement of declaration.--Every taxpayer subject to the tax 47 imposed by section two hundred nine of this chapter shall make a decla- 48 ration of its estimated tax for the current privilege period, containing 49 such information as the commissioner of taxation and finance may 50 prescribe by regulations or instructions, if such estimated tax can 51 reasonably be expected to exceed one thousand dollars. If a taxpayer is 52 subject to the tax surcharge imposed under section two hundred nine-B of 53 this article or such taxpayer's estimated tax surcharge under section 54 two hundred nine-L of this article and such taxpayer's estimated tax 55 under section two hundred nine of this article can reasonably be 56 expected to exceed one thousand dollars, such taxpayer shall also make aA. 9509--B 122 1 declaration of its estimated tax surcharge for the current privilege 2 period. 3 § 9. Subdivision (a) of section 213-b of the tax law, as amended by 4 section 10 of part Q of chapter 60 of the laws of 2016, is amended to 5 read as follows: 6 (a) First installments for certain taxpayers.--In privilege periods of 7 twelve months ending at any time during the calendar year nineteen 8 hundred seventy and thereafter, every taxpayer subject to the tax 9 imposed by section two hundred nine of this chapter must pay with the 10 report required to be filed for the preceding privilege period, or with 11 an application for extension of the time for filing the report, for 12 taxable years beginning before January first, two thousand sixteen, and 13 must pay on or before the fifteenth day of the third month of such priv- 14 ilege periods, for taxable years beginning on or after January first, 15 two thousand sixteen, an amount equal to (i) twenty-five percent of the 16 second preceding year's tax if the second preceding year's tax exceeded 17 one thousand dollars but was equal to or less than one hundred thousand 18 dollars, or (ii) forty percent of the second preceding year's tax if the 19 second preceding year's tax exceeded one hundred thousand dollars. If 20 the second preceding year's tax under section two hundred nine of this 21 chapter exceeded one thousand dollars and the taxpayer is subject to the 22 tax surcharge imposed by section two hundred nine-B or two hundred 23 nine-L of this chapter, the taxpayer must also pay with the tax 24 surcharge report required to be filed for the second preceding privilege 25 period, or with an application for extension of the time for filing the 26 report, for taxable years beginning before January first, two thousand 27 sixteen, and must pay on or before the fifteenth day of the third month 28 of such privilege periods, for taxable years beginning on or after Janu- 29 ary first, two thousand sixteen, an amount equal to (i) twenty-five 30 percent of the tax surcharge imposed for the second preceding year if 31 the second preceding year's tax was equal to or less than one hundred 32 thousand dollars, or (ii) forty percent of the tax surcharge imposed for 33 the second preceding year if the second preceding year's tax exceeded 34 one hundred thousand dollars. Provided, however, that every taxpayer 35 that is an S corporation must pay with the report required to be filed 36 for the preceding privilege period, or with an application for extension 37 of the time for filing the report, an amount equal to (i) twenty-five 38 percent of the preceding year's tax if the preceding year's tax exceeded 39 one thousand dollars but was equal to or less than one hundred thousand 40 dollars, or (ii) forty percent of the preceding year's tax if the 41 preceding year's tax exceeded one hundred thousand dollars. If the 42 preceding year's tax under section two hundred nine of this article 43 exceeded one thousand dollars and such taxpayer that is an S corporation 44 is subject to the tax surcharge imposed by section two hundred nine-B of 45 this article, the taxpayer must also pay with the tax surcharge report 46 required to be filed for the preceding privilege period, or with an 47 application for extension of the time for filing the report, an amount 48 equal to (i) twenty-five percent of the tax surcharge imposed for the 49 preceding year if the preceding year's tax was equal [equal] to or less 50 than one hundred thousand dollars, or (ii) forty percent of the tax 51 surcharge imposed for the preceding year if the preceding year's tax 52 exceeded one hundred thousand dollars. 53 § 10. Subdivisions (a) and (b) of section 1513 of the tax law, subdi- 54 vision (a) as amended by chapter 166 of the laws of 1991 and subdivision 55 (b) as amended by section 25 of part H3 of chapter 62 of the laws of 56 2003, are amended to read as follows:A. 9509--B 123 1 (a) Requirements of declaration.--Every taxpayer subject to the taxes 2 imposed under this article shall make a declaration of its estimated tax 3 for the current taxable year, containing such information as the commis- 4 sioner of taxation and finance may prescribe by regulations or 5 instructions, if such estimated tax can reasonably be expected to exceed 6 one thousand dollars. If a taxpayer is subject to the tax surcharge 7 imposed by section fifteen hundred five-a and such taxpayer's estimated 8 tax under this article can (without regard to section fifteen hundred 9 five-a or fifteen hundred six and such taxpayer's estimated tax under 10 this article can (without regard to section fifteen hundred five-a ther- 11 eof) reasonably be expected to exceed one thousand dollars, such taxpay- 12 er shall also make a declaration of its estimated tax surcharge for the 13 current taxable year. 14 (b) Definition of estimated tax and estimated tax surcharge. The terms 15 "estimated tax" and "estimated tax surcharge" mean the amounts which the 16 taxpayer estimates to be the taxes imposed by sections fifteen hundred 17 one, fifteen hundred two-a and fifteen hundred ten of this article or 18 the tax surcharge imposed by section fifteen hundred five-a or fifteen 19 hundred six of this article, respectively, for the current taxable year, 20 less the sum of any credits which it estimates to be allowable against 21 such taxes or tax surcharge, respectively. 22 § 11. Paragraphs 1 and 2 of subdivision (a) of section 1514 of the tax 23 law, paragraph 1 as amended by section 15 and paragraph 2 as amended by 24 section 15-a of part Q of chapter 60 of the laws of 2016, are amended to 25 read as follows: 26 (1) Except as otherwise provided in paragraph two of this subdivision, 27 for taxable years beginning on or after January first, nineteen hundred 28 seventy-six, every taxpayer subject to tax under this article must pay 29 in each year an amount equal to (i) twenty-five percent of the tax 30 imposed under this article for the second preceding taxable year if the 31 second preceding year's tax exceeded one thousand dollars but was equal 32 to or less than one hundred thousand dollars, or (ii) forty percent of 33 the tax imposed under this article for the second preceding taxable year 34 if the second preceding year's tax exceeded one hundred thousand 35 dollars. If the second preceding year's tax exceeded one thousand 36 dollars and the taxpayer is subject to the tax surcharge imposed by 37 section fifteen hundred five-a or fifteen hundred six of this article, 38 the taxpayer must also pay an amount equal to (i) twenty-five percent of 39 the tax surcharge imposed under section fifteen hundred five-a or 40 fifteen hundred six of this article for the second preceding taxable 41 year if the second preceding year's tax was equal to or less than one 42 hundred thousand dollars, or (ii) forty percent of the tax surcharge 43 imposed for the second preceding taxable year if the second preceding 44 year's tax exceeded one hundred thousand dollars. 45 (2) For taxable years beginning on or after January first, nineteen 46 hundred ninety-nine, every taxpayer subject to tax under paragraph one 47 of subdivision (b) of section fifteen hundred ten of this article shall 48 pay in each such year an amount equal to forty percent of the tax 49 imposed under such article for the second preceding taxable year, if 50 such second preceding year's tax exceeded one thousand dollars. If such 51 second preceding year's tax exceeded one thousand dollars and such 52 taxpayer is subject to the tax surcharge imposed by section fifteen 53 hundred five-a or fifteen hundred six of this article, such taxpayer 54 shall also pay an amount equal to forty percent of the tax surcharge 55 imposed under section fifteen hundred five-a or fifteen hundred six of 56 this article for the second preceding taxable year.A. 9509--B 124 1 § 12. Notwithstanding any provision of law to the contrary, in deter- 2 mination of the amount of the estimated surcharge payment imposed by 3 this act shall be prescribed by regulations of the commissioner of taxa- 4 tion and finance. The commissioner of taxation and finance shall adjust 5 the methods of such estimated surcharge payment in regard to taxable 6 year 2018 in a manner as to result an amount substantially equal to the 7 tax reasonably estimated to be due for such taxable year. In addition, 8 such commissioner shall adjust the due date on the installment payment 9 so that the taxpayers may have reasonable time to report such payment. 10 Any regulations to implement the surcharge for taxable year 2018 shall 11 be adopted and become effective as soon as practicable and the commis- 12 sioner of taxation and finance may adopt such regulations on an emergen- 13 cy basis notwithstanding anything to the contrary in the state adminis- 14 trative procedure act. 15 § 13. This act shall take effect immediately and shall apply to taxa- 16 ble years on or after January 1, 2018. 17 PART XX 18 Section 1. Subsection (g) of section 615 of the tax law, as amended by 19 section 1 of part S of chapter 59 of the laws of 2017, is amended to 20 read as follows: 21 (g)(1) With respect to an individual whose New York adjusted gross 22 income is over one million dollars and no more than ten million dollars, 23 the New York itemized deduction shall be an amount equal to fifty 24 percent of any charitable contribution deduction allowed under section 25 one hundred seventy of the internal revenue code for taxable years 26 beginning after two thousand nine and before two thousand [twenty] twen- 27 ty-four. With respect to an individual whose New York adjusted gross 28 income is over one million dollars, the New York itemized deduction 29 shall be an amount equal to fifty percent of any charitable contribution 30 deduction allowed under section one hundred seventy of the internal 31 revenue code for taxable years beginning in two thousand nine or after 32 two thousand [nineteen] twenty-three. 33 (2) With respect to an individual whose New York adjusted gross income 34 is over ten million dollars, the New York itemized deduction shall be an 35 amount equal to twenty-five percent of any charitable contribution 36 deduction allowed under section one hundred seventy of the internal 37 revenue code for taxable years beginning after two thousand nine and 38 ending before two thousand [twenty] twenty-four. 39 § 2. Subdivision (g) of section 11-1715 of the administrative code of 40 the city of New York, as amended by section 2 of part S of chapter 59 of 41 the laws of 2017, is amended to read as follows: 42 (g) (1) With respect to an individual whose New York adjusted gross 43 income is over one million dollars but no more than ten million dollars, 44 the New York itemized deduction shall be an amount equal to fifty 45 percent of any charitable contribution deduction allowed under section 46 one hundred seventy of the internal revenue code for taxable years 47 beginning after two thousand nine and before two thousand [twenty] twen- 48 ty-four. With respect to an individual whose New York adjusted gross 49 income is over one million dollars, the New York itemized deduction 50 shall be an amount equal to fifty percent of any charitable contribution 51 deduction allowed under section one hundred seventy of the internal 52 revenue code for taxable years beginning in two thousand nine or after 53 two thousand [nineteen] twenty-three.A. 9509--B 125 1 (2) With respect to an individual whose New York adjusted gross income 2 is over ten million dollars, the New York itemized deduction shall be an 3 amount equal to twenty-five percent of any charitable contribution 4 deduction allowed under section one hundred seventy of the internal 5 revenue code for taxable years beginning after two thousand nine and 6 ending before two thousand [twenty] twenty-four. 7 § 3. This act shall take effect immediately. 8 PART YY 9 Section 1. Section 1280 of the tax law is amended by adding a new 10 subdivision (v) to read as follows: 11 (v) "Transit sustainability improvement zone" or "TSI zone" shall be 12 the area in the borough of Manhattan lying south of the center line of 13 ninety-sixth street in the city of New York. The Franklin D. Roosevelt 14 East River Drive, north of the Brooklyn Bridge, shall not be included in 15 the zone. 16 § 2. The tax law is amended by adding a new section 1281-a to read as 17 follows: 18 § 1281-a. Imposition of tax. (a) In addition to any other tax imposed 19 by this chapter or other law, there is hereby imposed on every taxicab 20 owner a tax of fifty cents per taxicab trip and on every HAIL base a tax 21 of fifty cents per HAIL vehicle trip provided by every taxicab or HAIL 22 vehicle affiliated with the base, on every trip that originates and 23 terminates within the TSI zone, any trip that originates anywhere in the 24 state and terminates within the TSI zone, any trip that originates with- 25 in the TSI zone and terminates anywhere in this state or any trip that 26 originates anywhere in this state, enters into the TSI zone in transit 27 and terminates anywhere in this state. 28 (b) On or after June first, two thousand eighteen the comptroller 29 shall pay over the revenues from this tax to the metropolitan transpor- 30 tation authority aid trust account of the metropolitan transportation 31 authority financial assistance fund established by section ninety-two-ff 32 of the state finance law for deposit, subject to appropriation, in the 33 transit account of the metropolitan transportation authority special 34 assistance fund established by section twelve hundred seventy-a of the 35 public authorities law, for the improvement of the service reliability 36 and other capital and operating costs of the subway system of the New 37 York city transit authority. 38 § 3. This act shall take effect June 1, 2018. Effective immediately, 39 the addition, amendment and/or repeal of any rule or regulation neces- 40 sary for the implementation of this act on its effective date are 41 authorized to be made and completed on or before such date. 42 PART ZZ 43 Section 1. Subdivisions 1, 3 and 5 of section 171-v of the tax law, as 44 added by section 1 of part P of chapter 59 of the laws of 2013, are 45 amended to read as follows: 46 (1) The commissioner shall enter into a written agreement with the 47 commissioner of motor vehicles, which shall set forth the procedures for 48 the two departments to cooperate in a program to improve tax collection 49 through the suspension of drivers' licenses of taxpayers with past-due 50 tax liabilities equal to or in excess of [ten] twenty thousand dollars 51 multiplied by the applicable inflation adjustment. For the purposes of 52 this section, the term "tax liabilities" shall mean any tax, surcharge,A. 9509--B 126 1 or fee administered by the commissioner, or any penalty or interest due 2 on these amounts owed by an individual with a New York driver's license, 3 the term "driver's license" means any license issued by the department 4 of motor vehicles, except for a commercial driver's license as defined 5 in section five hundred one-a of the vehicle and traffic law, and the 6 term "past-due tax liabilities" means any tax liability or liabilities 7 which have become fixed and final such that the taxpayer no longer has 8 any right to administrative or judicial review, and the "applicable 9 inflation adjustment" for a calendar year shall be determined under the 10 principles of section 7345(f) of the Internal Revenue Code of 1986, 11 using the calendar year of the effective date of the chapter of the laws 12 of two thousand eighteen which amended this subdivision as the base 13 period. The twenty thousand dollar limitation in this subdivision shall 14 not apply to a taxpayer that the commissioner determines has taken 15 affirmative steps to evade or avoid the collection of tax, such as by 16 hiding assets. 17 (3) The department shall provide notice to the taxpayer of his or her 18 inclusion in the license suspension program no later than sixty days 19 prior to the date the department intends to inform the commissioner of 20 motor vehicles of the taxpayer's inclusion. However, no such notice 21 shall be issued to a taxpayer: (i) whose wages are being garnished by 22 the department for the payment of past-due tax liabilities or past-due 23 child support or combined child and spousal support arrears; (ii) who 24 receives public assistance or supplemental security income; or (iii) 25 whose income does not exceed two hundred fifty percent of the poverty 26 level as reported by the federal Department of Health and Human Services 27 or any successor agency. Notice shall be provided by first class mail to 28 the taxpayer's last known address as such address appears in the elec- 29 tronic systems or records of the department. Such notice shall include: 30 (a) a clear statement of the past-due tax liabilities along with a 31 statement that the department shall provide to the department of motor 32 vehicles the taxpayer's name, social security number and any other iden- 33 tifying information necessary for the purpose of suspending his or her 34 driver's license pursuant to this section and subdivision four-f of 35 section five hundred ten of the vehicle and traffic law sixty days after 36 the mailing or sending of such notice to the taxpayer; 37 (b) a statement that the taxpayer may avoid suspension of his or her 38 license by fully satisfying the past-due tax liabilities [or], by making 39 payment arrangements satisfactory to the commissioner, [and information40as to how] by demonstrating any of the grounds for challenge set forth 41 in subdivision five of this section, or by presenting facts to the 42 commissioner resulting in the commissioner waiving suspension of his or 43 her license based on the equities of the case. Such statement shall 44 include information regarding all of the agency's programs through which 45 the taxpayer can pay the past-due tax liabilities to the department, 46 enter into a payment arrangement or request additional information need- 47 ed to challenge the suspension under subdivision five of this section or 48 demonstrate the equities of the case; 49 (c) a statement that the taxpayer's right to protest the notice is 50 limited to raising issues set forth in subdivision five of this section; 51 (d) a statement that the suspension of the taxpayer's driver's license 52 shall continue until the past-due tax liabilities are fully paid or the 53 taxpayer makes payment arrangements satisfactory to the commissioner; 54 and 55 (e) any other information that the commissioner deems necessary.A. 9509--B 127 1 (5) Notwithstanding any other provision of law, and except as specif- 2 ically provided herein, the taxpayer shall have no right to commence a 3 court action or proceeding or to any other legal recourse against the 4 department or the department of motor vehicles regarding a notice issued 5 by the department pursuant to this section and the referral by the 6 department of any taxpayer with past-due tax liabilities to the depart- 7 ment of motor vehicles pursuant to this section for the purpose of 8 suspending the taxpayer's driver's license. A taxpayer may only chal- 9 lenge such suspension or referral on the grounds that (i) the individual 10 to whom the notice was provided is not the taxpayer at issue; (ii) the 11 past-due tax liabilities were satisfied; (iii) the taxpayer's wages are 12 being garnished by the department for the payment of the past-due tax 13 liabilities at issue or for past-due child support or combined child and 14 spousal support arrears; (iv) the taxpayer's wages are being garnished 15 for the payment of past-due child support or combined child and spousal 16 support arrears pursuant to an income execution issued pursuant to 17 section five thousand two hundred forty-one of the civil practice law 18 and rules; (v) the taxpayer's driver's license is a commercial driver's 19 license as defined in section five hundred one-a of the vehicle and 20 traffic law; [or] (vi) the department incorrectly found that the taxpay- 21 er has failed to comply with the terms of a payment arrangement made 22 with the commissioner more than once within a twelve month period for 23 the purposes of subdivision three of this section; (vii) the taxpayer 24 receives public assistance or supplemental security income; (viii) the 25 taxpayer's income does not exceed two hundred fifty percent of the 26 poverty level as reported by the federal Department of Health and Human 27 Services or any successor agency; or (ix) payment of the past due tax 28 liabilities will create a hardship for the taxpayer in meeting necessary 29 living expenses. 30 However, nothing in this subdivision is intended to limit a taxpayer 31 from seeking relief pursuant to an offer in compromise pursuant to 32 subdivision fifteenth of section one hundred seventy-one of this article 33 or from joint and several liability pursuant to section six hundred 34 fifty-four of this chapter, to the extent that he or she is eligible 35 pursuant to [that subdivision] such section, or establishing to the 36 department that the enforcement of the underlying tax liabilities has 37 been stayed by the filing of a petition pursuant to the Bankruptcy Code 38 of 1978 (Title Eleven of the United States Code). 39 § 2. The commissioner of taxation and finance is authorized and 40 directed to promulgate any rules and regulations necessary to implement 41 the provisions of this act in accordance with the provisions of the 42 state administrative procedure act. 43 § 3. This act shall take effect on the first of April next succeeding 44 the date on which it shall have become a law. 45 PART AAA 46 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 47 amending the tax law relating to a musical and theatrical production 48 credit, is amended to read as follows: 49 § 5. This act shall take effect immediately, provided that section two 50 of this act shall take effect on January 1, 2015, and shall apply to 51 taxable years beginning on or after January 1, 2015, with respect to 52 "qualified production expenditures" and "transportation expenditures" 53 paid or incurred on or after such effective date, regardless of whether 54 the production of the qualified musical or theatrical productionA. 9509--B 128 1 commenced before such date, provided further that this act shall expire 2 and be deemed repealed [4] 8 years after such date. 3 § 2. This act shall take effect immediately. 4 PART BBB 5 Section 1. The opening paragraph of subdivision 7 of section 221 of 6 the racing, pari-mutuel wagering and breeding law, as amended by section 7 2 of part SS of chapter 59 of the laws of 2017, is amended to read as 8 follows: 9 In order to pay the costs of the insurance required by this section 10 and by the workers' compensation law and to carry out its other powers 11 and duties and to pay for any of its liabilities under section four- 12 teen-a of the workers' compensation law, the New York Jockey Injury 13 Compensation Fund, Inc. shall ascertain the total funding necessary and 14 establish the sums that are to be paid by all owners and trainers 15 licensed or required to be licensed under section two hundred twenty of 16 this article, to obtain the total funding amount required annually. In 17 order to provide that any sum required to be paid by an owner or trainer 18 is equitable, the fund shall establish payment schedules which reflect 19 such factors as are appropriate, including where applicable, the 20 geographic location of the racing corporation at which the owner or 21 trainer participates, the duration of such participation, the amount of 22 any purse earnings, the number of horses involved, or such other factors 23 as the fund shall determine to be fair, equitable and in the best inter- 24 ests of racing. In no event shall the amount deducted from an owner's 25 share of purses exceed two per centum; provided, however, for two thou- 26 sand [seventeen] eighteen the New York Jockey Injury Compensation Fund, 27 Inc. may use up to two million dollars from the account established 28 pursuant to subdivision nine of section two hundred eight of this arti- 29 cle to pay the annual costs required by this section and the funds from 30 such account shall not count against the two per centum of purses 31 deducted from an owner's share of purses. The amount deducted from an 32 owner's share of purses shall not exceed one per centum after April 33 first, two thousand twenty. In the cases of multiple ownerships and 34 limited racing appearances, the fund shall equitably adjust the sum 35 required. 36 § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, 37 pari-mutuel wagering and breeding law, as amended by section 2 of part 38 PP of chapter 60 of the laws of 2016, is amended to read as follows: 39 (a) The franchised corporation shall maintain a separate account for 40 all funds held on deposit in trust by the corporation for individual 41 horsemen's accounts. Purse funds shall be paid by the corporation as 42 required to meet its purse payment obligations. Funds held in horsemen's 43 accounts shall only be released or applied as requested and directed by 44 the individual horseman. For two thousand [sixteen] eighteen the New 45 York Jockey Injury Compensation Fund, Inc. may use up to two million 46 dollars from the account established pursuant to this subdivision to pay 47 the annual costs required by section two hundred twenty-one of this 48 article. 49 § 3. Paragraph (c) of subdivision 9 of section 208 of the racing, 50 pari-mutuel wagering and breeding law is relettered paragraph (e) and 51 two new paragraphs (c) and (d) are added to read as follows: 52 (c) The franchised corporation shall establish and maintain a separate 53 account for funds to be held on deposit in trust by the franchised 54 corporation for the horsemen's organization recognized pursuant toA. 9509--B 129 1 section two hundred twenty-eight of this article. Starting in two thou- 2 sand eighteen and annually thereafter, funds from the account estab- 3 lished pursuant to this subdivision shall be deposited in the separate 4 account established under this paragraph in an amount to be agreed upon 5 by the franchised corporation and the horsemen's organization recognized 6 pursuant to section two hundred twenty-eight of this article. Funds held 7 in this account shall be used by such recognized horsemen's organization 8 solely as collateral to secure workers' compensation insurance coverage, 9 including through the New York Jockey Injury Compensation Fund, Inc. 10 Such coverage shall include high deductible programs and forms of self- 11 insurance. 12 (d) In the event the horsemen's organization recognized pursuant to 13 section two hundred twenty-eight of this article determines that the 14 funds are no longer needed as collateral to secure workers' compensation 15 insurance coverage, then, upon agreement by the franchised corporation 16 and such appropriately recognized horsemen's organization, funds in the 17 separate account established under paragraph (c) of this subdivision 18 shall be returned to the account established pursuant to paragraph (a) 19 of this subdivision. 20 § 4. This act shall take effect immediately. 21 PART CCC 22 Section 1. Section 94 of the public housing law, as amended by chapter 23 540 of the laws of 1958, is amended to read as follows: 24 § 94. Authorization to make subsidies. A municipality is authorized to 25 make or contract to make capital or periodic subsidies to an authority 26 operating within the territorial limits of such municipality, payable 27 only with moneys locally appropriated therefor from the general or other 28 funds available for current expenses of such municipality. Periodic 29 subsidies shall not be contracted for a period longer than the life of 30 the project assisted thereby, and in no event for more than fifty years. 31 If the amount of any periodic subsidy shall be equal to or greater than 32 the interest on and the amounts required annually for the payment of the 33 indebtedness contracted by the authority on account of a project in any 34 year, such contract shall constitute a guarantee of the principal of and 35 the interest on such indebtedness, and such contract and the payments 36 thereunder may be pledged by the authority as security in addition to 37 all other security which the authority may give for such indebtedness. 38 A municipality may levy one or more of the taxes enumerated in section 39 one hundred ten of this chapter for the purpose of making municipal 40 subsidies[, and the]. The revenues resulting from the imposition of such 41 tax or taxes, other than the taxes described by subdivision (e) of 42 section one hundred ten of this chapter in a city having a population of 43 one million or more, notwithstanding the provisions of any general, 44 special or local law to the contrary, shall be deposited in the city 45 treasury and credited to a separate account. During each fiscal year of 46 such municipality, an amount not in excess of the amount of the subsi- 47 dies to be made by such municipality during such fiscal year shall be 48 charged to such account and credited to the general fund for the 49 reduction of taxation or into the general or other fund available for 50 current expenses of such municipality. No other payment shall be charged 51 to such account. The provisions of section one hundred eleven of this 52 chapter shall be applicable to any tax or taxes imposed pursuant to this 53 section.A. 9509--B 130 1 In a city having a population of one million or more, the revenues 2 from the taxes described in subdivision (e) of section one hundred ten 3 of this chapter shall be deposited in the general fund and a payment of 4 an equal amount shall be made, in the same fiscal year or as soon as 5 practicable thereafter, for the purposes described in such section. 6 § 2. Subdivision (e) of section 110 of the public housing law is 7 amended to read as follows: 8 (e) (1) An excise tax on the sale of tobacco other than cigarettes 9 sold for consumption within the territorial limits of such municipality. 10 Such tax shall not be in excess of ten per centum of the purchase price 11 of such tobacco. [Such] The local law imposing such tax may [further] 12 provide that the amount of the tax shall be paid by the purchaser to the 13 vendor and for and on account of the municipality, and the vendor shall 14 be liable for the collection and the payment thereof[; and the]. The 15 vendor shall have the same right in respect to collecting the tax from 16 the purchaser or in respect to non-payment of the tax by the purchaser 17 as if the tax were a part of the purchase price of the tobacco, and 18 payable at the time of the sale. 19 (2) An excise tax on the sale of tobacco other than cigarettes sold 20 for consumption within a city having a population of one million or more 21 shall not be in excess of the rate provided in paragraph one of this 22 subdivision, provided the term purchase price shall be no less than the 23 price of such tobacco or such products containing tobacco as authorized 24 to be sold in such city under the local laws thereof. 25 (3) Any city having a population of one million or more is hereby 26 authorized to impose an excise tax on the sale, use or possession of 27 vapor product. Such tax shall not be in excess of ten cents per fluid 28 milliliter, or part thereof. For purposes of this paragraph, "vapor 29 product" shall mean any noncombustible liquid or gel, regardless of the 30 presence of nicotine therein, that is manufactured into a finished prod- 31 uct for use in an electronic cigarette, electronic cigar, electronic 32 cigarillo, electronic pipe, vaping pen, hookah pen or other similar 33 device. The term "vapor product" shall not include any product approved 34 by the United States food and drug administration as a drug or medical 35 device, or approved for use pursuant to section thirty-three hundred 36 sixty-two of the public health law. 37 § 3. This act shall take effect on the one hundred eightieth day after 38 it shall have become a law and shall apply to vapor products that first 39 become subject to tax on or after such date. 40 PART DDD 41 Section 1. Section 606 of the tax law is amended by adding a new 42 subsection (iii) to read as follows: 43 (iii) Clinical preceptorship credit. (1) General. A taxpayer who is a 44 preceptor clinician who provides preceptor instruction as part of a 45 clinical preceptorship shall be allowed a credit of one thousand dollars 46 for each one hundred hours of such preceptor instruction; provided that 47 the credit allowed pursuant to this subsection shall not exceed three 48 thousand dollars during any taxable year. 49 (2) Definitions. As used in this subsection: 50 (A) The term "preceptor clinician" means a (i) physician licensed 51 pursuant to article one hundred thirty-one of the education law, (ii) 52 physician assistant licensed pursuant to article one hundred 53 thirty-one-B of the education law, (iii) specialist assistant registered 54 pursuant to article one hundred thirty-one-C of the education law, (iv)A. 9509--B 131 1 certified registered nurse anesthetist certified by the education 2 department, (v) registered professional nurse licensed pursuant to 3 section sixty-nine hundred five of the education law, (vi) nurse practi- 4 tioner certified pursuant to section sixty-nine hundred ten of the 5 education law, (vii) clinical nurse specialist certified pursuant to 6 section sixty-nine hundred eleven of the education law, or (viii) 7 midwife licensed pursuant to article one hundred forty of the education 8 law, who, without the provision of any form of compensation therefor, 9 provides a clinical preceptorship or preceptorships including, but not 10 limited to, both community and in-patient facilities, during the taxable 11 year. 12 (B) The term "clinical preceptorship" means a preceptorship for a 13 student enrolled in a New York state based educational program approved 14 pursuant to title eight of the education law to become a physician, 15 physician assistant, specialist assistant, certified registered nurse 16 anesthetist, registered professional nurse, nurse practitioner, clinical 17 nurse specialist or midwife, and which preceptorship provides preceptor 18 instruction in family medicine, internal medicine, pediatrics, obstet- 19 rics and gynecology, emergency medicine, psychiatry or general surgery 20 under the supervision of a preceptor clinician. 21 (3) Application of credit. In no event shall the amount of the credit 22 provided by this subsection exceed the taxpayer's tax for the taxable 23 year. If the amount of the credit and carryovers of such credit allowed 24 under this subsection exceeds such tax, the excess as well as any part 25 of the credit or carryovers of such credit, or both may be carried over 26 to the following year or years. 27 (4) Aggregate amount. The aggregate amount of tax credits allowed 28 pursuant to the authority of this subsection shall be three million 29 dollars each year during the period two thousand nineteen through two 30 thousand twenty-three. If the total amount of allocated credits applied 31 for in any particular year exceeds the aggregate amount of tax credit 32 allowed for such year, such excess shall be treated as having been 33 applied for on the first day of the subsequent year. 34 § 2. The commissioner of education along with the commissioner of the 35 department of taxation and finance are authorized to promulgate rules 36 and regulations without being subject to the state administrative proce- 37 dure act in regard to the issuance of a certification identifying the 38 name of a preceptor clinician and the hours spent as an instructor and a 39 report necessary to effectuate the clinical preceptorship credit program 40 under this act. Notwithstanding any provision of law to the contrary, 41 the commissioner of education shall permit the commissioner of the 42 department of taxation and finance or proper officers of such department 43 to inspect the certificate or report filed and issued by the commission- 44 er of education for the purposes of administering the clinical precep- 45 torship tax credit pursuant to subsection (iii) of section 606 of the 46 tax law. 47 § 3. This act shall take effect immediately and shall apply to taxable 48 years beginning on January 1, 2019 and shall expire and be deemed 49 repealed December 31, 2023. 50 PART EEE 51 Section 1. The tax law is amended by adding a new section 44 to read 52 as follows:A. 9509--B 132 1 § 44. New York agriculture and rural jobs credit. (a) Definitions. For 2 the purpose of this section the following terms shall have the following 3 meanings: 4 (1) "Affiliate" means a person that directly, or indirectly through 5 one or more intermediaries, controls, is controlled by, or is under 6 common control with another person. For the purposes of this division, a 7 person is "controlled by" another person if the controlling person 8 holds, directly or indirectly, the majority voting or ownership interest 9 in the controlled person or has control over the day-to-day operations 10 of the controlled person by contract or by law. 11 (2) "Closing date" means the date on which a rural business growth 12 fund has collected all of the amounts specified by subparagraphs (A) and 13 (B) of paragraph seven of subdivision (b) of this section. 14 (3) "Credit-eligible capital contribution" means an investment of cash 15 by a person in a rural business growth fund that equals the amount spec- 16 ified on a tax credit certificate issued by the department under subpar- 17 agraph (B) of paragraph six of subdivision (b) of this section. The 18 investment shall purchase an equity interest in the rural business 19 growth fund or purchase, at par value or premium, a debt instrument 20 issued by the rural growth fund that meets all of the following crite- 21 ria: 22 (A) The debt instrument has an original maturity date of at least five 23 years after the date of issuance. 24 (B) The debt instrument has a repayment schedule that is not faster 25 than a level principal amortization over five years. 26 (C) The debt instrument has no interest, distribution, or payment 27 features dependent on the rural business growth fund's profitability or 28 the success of the rural growth investments. 29 (4) "Eligible investment authority" means the amount stated on the 30 notice issued under subparagraph (A) of paragraph six of subdivision (b) 31 of this section certifying the rural business growth fund. At least 32 sixty-five percent of a rural business growth fund's eligible investment 33 authority shall be comprised of credit-eligible capital contributions. 34 (5) A business's "principal business operations" are in this state if 35 at least eighty percent of the business's employees reside in this 36 state, the individuals who receive eighty percent of the business's 37 payroll reside in this state, or the business has agreed to use the 38 proceeds of a rural growth investment to relocate at least eighty 39 percent of its employees to this state or pay at least eighty percent of 40 its payroll to individuals residing in this state. 41 (6) "Rural area" shall have the same meaning as defined in subdivision 42 seven of section four hundred eighty-one of the executive law. 43 (7) "Rural business concern" means an operating company that, at the 44 time if the initial investment in the company by a rural business growth 45 fund, has its principal business operations in this state, has fewer 46 than one hundred fifty employees or not more than ten million dollars in 47 net income for the preceding taxable year, and meets either of the 48 following criteria: 49 (A) The business's principal business operations are located in a 50 rural area; or 51 (B) The business is involved in the production, processing or market- 52 ing of agricultural or aquatic products, or agricultural technology, or 53 supplying farms with goods and services in support of farming, provided 54 that said business is not located in a municipality with a population of 55 more than fifty thousand.A. 9509--B 133 1 (8) "Rural business growth fund" means an entity certified by the 2 department under this section. 3 (9) "Rural growth investment" means any capital or equity investment 4 in a rural business concern or any loan to a rural business concern with 5 a term of at least one year. 6 (10) "Taxable year" means the calendar year ending on the thirty-first 7 day of December next preceding the day the annual report is required to 8 be returned under subdivision (d) of this section. 9 (b) Certification. (1) On and after August first, two thousand eigh- 10 teen, an applicant that has developed a business plan to invest in rural 11 business concerns in this state and has successfully solicited private 12 investors to make capital contributions in support of the plan may apply 13 to the department for certification as a rural business growth fund. The 14 application shall include all of the following: 15 (A) The total eligible investment authority sought by the applicant 16 under the business plan; 17 (B) Documents and other evidence sufficient to prove, to the satisfac- 18 tion of the department, that the applicant meets all of the following 19 criteria: (i) The applicant or an affiliate of the applicant is licensed 20 as a rural business investment company under 7 U.S.C. 2009cc, or as a 21 small business investment company under 15 U.S.C. 681. 22 (ii) As of the date the application is submitted, the applicant has 23 invested more than one hundred million dollars in operating companies, 24 including at least fifty million dollars in operating companies located 25 in rural areas. In computing investments under this division, the appli- 26 cant may include investments made by affiliates of the applicant. 27 (C) An estimate of the number of jobs that will be created or retained 28 in this state as a result of the applicant's rural growth investments; 29 (D) A revenue impact assessment for the applicant's proposed rural 30 growth investments prepared by a nationally recognized third-party inde- 31 pendent economic forecasting firm using a dynamic economic forecasting 32 model. The revenue impact assessment shall analyze the applicant's 33 business plan over the ten years following the date the application is 34 submitted to the department. 35 (E) A signed affidavit from each investor successfully solicited by 36 the applicant to make a credit eligible capital contribution in support 37 of the business plan. Each affidavit shall include information suffi- 38 cient for the tax commissioner to identify the investor and shall state 39 the amount of the investor's credit-eligible capital contribution. 40 (F) A nonrefundable application fee of five thousand dollars. 41 (2) The department shall review and make a determination with respect 42 to each application submitted under paragraph one of this subdivision 43 within thirty days of receipt. The department shall review and make 44 determinations on the applications in the order in which the applica- 45 tions are received by the department. Applications received by the 46 department on the same day shall be deemed to have been received simul- 47 taneously. Except as provided in paragraph four of subdivision (c) of 48 this section, the department shall not approve more than one hundred 49 million dollars in eligible investment authority or more than sixty-five 50 million dollars in credit-eligible capital contributions. 51 (3) The department shall deny an application submitted under this 52 section if any of the following are true: (A) The application is incom- 53 plete. 54 (B) The application fee is not paid in full. 55 (C) The applicant does not satisfy all the criteria described in 56 subparagraph (B) of paragraph one of this subdivision.A. 9509--B 134 1 (D) The revenue impact assessment submitted under subparagraph (D) of 2 paragraph one of this subdivision does not demonstrate that the appli- 3 cant's business plan will result in a positive economic impact on this 4 state over a ten-year period that exceeds the credit eligible capital 5 contributions sought by the applicant. 6 (E) The credit-eligible capital contributions described in affidavits 7 submitted under subparagraph (E) of paragraph one of this subdivision do 8 not equal sixty-five percent of the total amount of eligible investment 9 authority sought under the applicant's business plan. 10 (F) The department has already approved the maximum amount of eligible 11 investment authority and credit-eligible capital contributions allowed 12 under paragraph two of this subdivision. 13 (4) If the department denies an application under paragraph three of 14 this subdivision, the department shall send notice of its determination 15 of the applicant. The notice shall include the reasons that the applica- 16 tion was denied. If the application was denied for any reason other than 17 the reason specified in subparagraph (F) of paragraph three of this 18 subdivision, the applicant may provide additional information to the 19 department to complete, clarify, or cure defects in the application. 20 The additional information must be submitted within thirty days after 21 the date the notice of denial was sent by the department. If the person 22 or entity submits additional information within thirty days, the depart- 23 ment shall reconsider the application within thirty days after receiving 24 such additional information. If after submission of additional informa- 25 tion, the department approves the application, then the submission date 26 shall be the date of the original submission of the application. If the 27 person or entity does not submit additional information within thirty 28 days after the notice of denial was sent, the applicant may submit a new 29 application with a new submission date at any time. 30 (5) If approving multiple simultaneously submitted applications would 31 result in exceeding the overall eligible investment limit prescribed by 32 paragraph two of this subdivision, the department shall proportionally 33 reduce the eligible investment authority and the credit-eligible capital 34 contributions for each approved application as necessary to avoid 35 exceeding the limit. 36 (6) The department shall not deny a rural business growth fund appli- 37 cation or reduce the requested eligible investment authority for reasons 38 other than those described in paragraphs three and five of this subdivi- 39 sion. If the department approves such application, the department shall 40 issue all of the following notices: (A) to the applicant, a written 41 notice certifying that the applicant qualifies as a rural business 42 growth fund and specifying the amount of the applicant's eligible 43 investment authority; (B) to each investor whose affidavit was included 44 in the application, a tax credit certificate specifying the amount of 45 the investor's credit-eligible capital contribution; and (C) to the 46 commissioner, a copy of each tax credit certificate issued under subpar- 47 agraph (B) of this paragraph. 48 (7) A rural business growth fund shall complete all of the following 49 within sixty days of receiving the certification issued under subpara- 50 graph (A) of paragraph six of this subdivision: 51 (A) Collect the credit-eligible capital contributions from each inves- 52 tor issued a tax credit certificate under subparagraph (B) of paragraph 53 six of this subdivision; 54 (B) Collect one or more investments of cash, which shall purchase an 55 equity interest in the rural growth fund or a debt instrument issued by 56 the rural growth fund at par value or premium, with a maturity date ofA. 9509--B 135 1 at least five years from the closing date that, when added to the 2 contributions collected under subparagraph (A) of this paragraph, equal 3 the fund's eligible investment authority. At least ten percent of the 4 fund's eligible investment authority shall be comprised of equity 5 investments contributed by affiliates of the rural business growth fund, 6 including employees, officers, and directors of such affiliates. 7 (C) Send to the department documentation sufficient to prove that the 8 amounts described in subparagraphs (A) and (B) of this paragraph have 9 been collected. If the rural business growth fund fails to fully comply 10 with this paragraph, the fund's certification shall lapse. 11 (8) Eligible investment authority and corresponding credit-eligible 12 capital contributions that lapse under paragraph seven of this subdivi- 13 sion do not count toward limits on total eligible investment authority 14 and credit-eligible capital contributions prescribed in paragraph two of 15 this subdivision. Once eligible investment authority has lapsed, the 16 department shall first award lapsed authority pro rata to each rural 17 business growth fund that was awarded less than the requested eligible 18 investment authority under paragraph five of this subdivision. Any 19 remaining eligible investment authority may be awarded by the department 20 to new applicants. 21 (9) Application fees submitted to the department pursuant to subpara- 22 graph (F) of paragraph one of this subdivision shall be credited to the 23 New York agriculture and rural jobs fund, created in section ninety- 24 nine-bb of the state finance law. 25 (10) A rural fund, before making a rural growth investment, may 26 request from the department a written opinion as to whether the rural 27 business concern in which it proposes to invest is an eligible business. 28 The department, not later than the thirtieth business day after the date 29 of receipt of such request, shall notify the rural business growth fund 30 of its determination. If the department fails to notify the rural fund 31 of its determination by the thirtieth business day, the business in 32 which the rural business growth fund proposes to invest shall be consid- 33 ered an eligible rural business concern. 34 (c) Revocation of certification. (1) The department shall revoke a tax 35 credit certificate issued under subdivision (b) of this section if any 36 of the following occur with respect to a rural business growth fund 37 before the fund exits the program under paragraph five of this subdivi- 38 sion: 39 (A) The rural business growth fund in which the credit-eligible capi- 40 tal contribution was made does not invest sixty percent of its eligible 41 investment authority in rural growth investments in this state within 42 two years of the closing date and one hundred percent of its eligible 43 investment authority in rural growth investments in this state within 44 three years of the closing date; or 45 (B) After investing one hundred percent of its eligible investment 46 authority in rural growth investments in this state, the rural business 47 growth fund fails to maintain that investment until the fifth anniver- 48 sary of the closing date, including the reinvestment of such investment. 49 For the purposes of this section, an investment is "maintained" even if 50 the investment is sold or repaid so long as the rural business growth 51 fund reinvests an amount equal to the capital returned or recovered by 52 the fund from the original investment, exclusive of any profits real- 53 ized, in other rural growth investments in this state within twelve 54 months of the receipt of such capital. Amounts received periodically by 55 a rural business growth fund shall be treated as continually invested in 56 rural growth investments if the amounts are reinvested in one or moreA. 9509--B 136 1 rural growth investments by the end of the following calendar year. A 2 rural business growth fund is not required to reinvest capital returned 3 from rural growth investments in the six months immediately preceding 4 the fifth anniversary of the closing date, and such rural growth invest- 5 ments shall be considered held continuously by the rural growth fund 6 through the fifth anniversary of the closing date; or 7 (C) The rural business growth fund invests more than the greater of 8 seven million five hundred thousand dollars or twenty percent of its 9 eligible investment authority in the same rural business concern, 10 including amounts invested in affiliates of the rural business concern 11 but excluding amounts reinvested in the rural business growth fund with 12 repaid or redeemed rural business growth investments, provided such 13 reinvestments shall not count towards the requirement of subparagraph 14 (A) of this paragraph; or 15 (D) The rural business growth fund makes a rural growth investment in 16 a rural business concern that directly or indirectly through an affil- 17 iate owns, has the right to acquire an ownership interest, make a loan 18 to, or make an investment in the rural business growth fund, an affil- 19 iate of the rural business growth fund, or an investor in the rural 20 business growth fund. This paragraph does not apply to investments in 21 publicly traded securities by a rural business concern or an owner or 22 affiliate of such concern. 23 (2) Before taking action under paragraph one of this subdivision, the 24 department shall notify the rural business growth fund of the reasons 25 for the pending action. If the rural business growth fund corrects the 26 violations, other than violations of subparagraph (D) of paragraph one 27 of this subdivision, outlined in the notice to the satisfaction of the 28 department within one hundred eighty days of the date of the notice was 29 sent, the department shall not revoke the tax credit certificates or 30 levy a fine. 31 (3) If the department revokes a tax credit certificate under paragraph 32 one of this subdivision, the commissioner shall make an assessment for 33 the amount of the credit claimed by the certificate holder before the 34 certificate was revoked. The commissioner shall make the assessment 35 within one year after the certificate has been revoked. 36 (4) If tax credit certificates are revoked under paragraph one of this 37 subdivision, the associated eligible investment authority and credit-el- 38 igible capital contributions do not count toward the limit on total 39 eligible investment authority and credit-eligible capital contributions 40 described by paragraph two of subdivision (b) of this section. The 41 department shall first award reverted authority pro rata to each rural 42 business growth fund that was awarded less than the requested eligible 43 investment authority under paragraph five of subdivision (b) of this 44 section. Any remaining eligible investment authority may be awarded by 45 the department to new applicants. 46 (5) (A) On or after the fifth anniversary of the closing date, a rural 47 business growth fund that has not committed any of the acts described in 48 paragraph one of this subdivision may apply to the department to exit 49 the program as a rural business growth fund and no longer be subject to 50 regulation under this section. The department shall respond to the 51 application within thirty days after receiving such application. In 52 evaluating such request the fact that no tax credit certificates have 53 been revoked with respect to the rural business growth fund shall be 54 sufficient evidence to prove that the fund is eligible to exit the 55 program. The department shall not unreasonably deny an application 56 submitted under this subdivision.A. 9509--B 137 1 (B) The department shall send notice of its determination with respect 2 to an application submitted under subparagraph (A) of this paragraph to 3 the rural business growth fund. If the application is denied, the notice 4 shall include the reasons for the determination. 5 (C) The department shall not revoke a tax credit certificate due to 6 any actions of a rural business growth fund that occur after the date 7 the fund's application for exiting the program is approved under subpar- 8 agraph (A) of this paragraph. 9 (6) If the number of jobs created or retained by the rural business 10 concern that received rural growth investments from the rural business 11 growth fund is: 12 (A) Less than sixty percent of the number projected in the approved 13 rural business growth fund's business plan filed as part of its applica- 14 tion for certification under subdivision (b) of this section, then the 15 state shall receive twenty percent of any distribution or payment to an 16 equity holder in an approved rural business growth fund in excess of the 17 sum of the amount of equity capital invested in the fund by such equity 18 holder and an amount equal to any projected increase in the equity hold- 19 er's federal or state tax liability, including penalties and interest, 20 related to the equity holder's ownership, management, or operation of 21 the fund; or 22 (B) Greater than sixty percent but less than eighty percent of the 23 number projected in the approved rural business growth fund's business 24 plan filed as part of its application for certification under subdivi- 25 sion (b) of this section, then the state shall receive ten percent of 26 any distribution or payment to an equity holder in an approved rural 27 business growth fund in excess of the sum of the amount of equity capi- 28 tal invested in the fund by such equity holder and an amount equal to 29 any projected increase in the equity holder's federal or state tax 30 liability, including penalties and interest, related to the equity hold- 31 er's ownership, management, or operation of the fund. 32 (7) A rural business growth fund may, prior to making a rural growth 33 investment, request from the department a written determination as to 34 whether the business entity in which it proposes to invest qualifies as 35 a rural business concern. The department, not later than the sixtieth 36 business day after the date of receipt of such request, shall notify the 37 rural business growth fund of its determination. If the department fails 38 to notify the rural fund of its determination by the sixtieth business 39 day, the business in which the rural business growth fund proposes to 40 invest shall be considered an eligible rural business concern. 41 (d) Reports. (1) Each rural business growth fund shall submit a report 42 to the department on or before the fifth business day after the second 43 and third anniversaries of the closing date. The report shall provide 44 documentation as to the rural growth investments made by the rural busi- 45 ness growth fund. Such documentation shall include the following: 46 (A) A bank statement of the rural business growth fund displaying each 47 rural growth investment; 48 (B) The name and location of each rural business concern in which the 49 rural business growth fund has made a rural growth investment, including 50 evidence that the business concern was qualified at the time the invest- 51 ment was made. 52 (2) On or before the last day of February of each year following the 53 year in which the report required under paragraph one of this subdivi- 54 sion is due, the rural business growth fund shall submit an annual 55 report to the department including the following:A. 9509--B 138 1 (A) The number of employment positions created or retained as a result 2 of the fund's rural growth investments as of the last day of the preced- 3 ing calendar year; 4 (B) The average annual salary of the positions described in subpara- 5 graph (A) of this paragraph; 6 (C) Any other information required by the department. 7 (3) The department shall adopt rules necessary to implement this 8 subdivision. 9 (4) The commissioner of economic development, in consultation with the 10 commissioner shall produce and post on their website an annual report no 11 later than ninety days after the last day of the preceding calendar 12 year. The report shall include all of the information provided by each 13 rural business growth fund in their reports as required by subparagraphs 14 (A) and (B) of paragraph two of this subdivision, as well as the infor- 15 mation reported by the rural business growth fund in its third anniver- 16 sary report to the department as required by paragraph one of this 17 subdivision, provided that the required documentation shall not include 18 bank statements. The commissioner of economic development shall include 19 in such reports any other information he or she deems necessary. 20 § 2. Section 1511 of the tax law is amended by adding a new subdivi- 21 sion (dd) to read as follows: 22 (dd) Credit for certain investments to a rural business growth fund. 23 (1) There is hereby allowed a nonrefundable tax credit for taxpayers 24 that made a credit-eligible capital contribution to a rural business 25 growth fund and were issued a tax credit certificate under subparagraph 26 (B) of paragraph six of subdivision (b) of section forty-four of this 27 chapter. The credit may be claimed against the tax imposed by this arti- 28 cle and section one thousand one hundred twelve of the insurance law. 29 The credit may not be sold, transferred, or allocated to any entity 30 other than an in-state affiliate of the taxpayer. 31 (2) On the closing date, the taxpayer shall earn a credit equal to the 32 amount of the taxpayer's credit-eligible capital contribution to the 33 rural business growth fund, as specified on the tax credit certificate. 34 The taxpayer may claim up to twenty-five percent of the eligible invest- 35 ment authority for the taxable year containing the fifth anniversary 36 date of the closing date and up to twenty percent of the eligible 37 investment authority for the taxable years that include the sixth and 38 seventh anniversary dates of the closing date, exclusive of amounts 39 carried forward pursuant to paragraph three of this subdivision. 40 (3) If the amount of the credit for a taxable year exceeds the tax 41 otherwise due for that year, the excess shall be carried forward to 42 ensuing taxable years until fully used. A taxpayer claiming a credit 43 under this section shall submit a copy of the tax credit certificate 44 with the taxpayer's return for each taxable year for which the credit is 45 claimed. 46 § 3. The tax law is amended by adding a new section 187-q to read as 47 follows: 48 § 187-q. Credit for certain investments to a rural business growth 49 fund. 1. There is hereby allowed a nonrefundable tax credit for taxpay- 50 ers that made a credit-eligible capital contribution to a rural business 51 growth fund and were issued a tax credit certificate under subparagraph 52 (B) of paragraph six of subdivision (b) of section forty-four of this 53 chapter. The credit may be claimed against the tax imposed by this arti- 54 cle. The credit may not be sold, transferred, or allocated to any entity 55 other than an in-state affiliate of the taxpayer.A. 9509--B 139 1 2. On the closing date, the taxpayer shall earn a credit equal to the 2 amount of the taxpayer's credit-eligible capital contribution to the 3 rural business growth fund, as specified on the tax credit certificate. 4 The taxpayer may claim up to twenty-five percent of the eligible invest- 5 ment authority for the taxable year containing the fifth anniversary 6 date of the closing date and up to twenty percent of the eligible 7 investment authority for the taxable years that include the sixth and 8 seventh anniversary dates of the closing date, exclusive of amounts 9 carried forward pursuant to subdivision three of this section. 10 3. If the amount of the credit for a taxable year exceeds the tax 11 otherwise due for that year, the excess shall be carried forward to 12 ensuing taxable years until fully used. A taxpayer claiming a credit 13 under this section shall submit a copy of the tax credit certificate 14 with the taxpayer's return for each taxable year for which the credit is 15 claimed. 16 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 17 sion 53 to read as follows: 18 53. Credit for certain investments to a rural business growth fund. 19 (1) There is hereby allowed a nonrefundable tax credit for taxpayers 20 that made a credit-eligible capital contribution to a rural business 21 growth fund and were issued a tax credit certificate under subparagraph 22 (B) of paragraph six of subdivision (b) of section forty-four of this 23 chapter. The credit may be claimed against the tax imposed by this arti- 24 cle. The credit may not be sold, transferred, or allocated to any entity 25 other than an in-state affiliate of the taxpayer. 26 (2) On the closing date, the taxpayer shall earn a credit equal to the 27 amount of the taxpayer's credit-eligible capital contribution to the 28 rural business growth fund, as specified on the tax credit certificate. 29 The taxpayer may claim up to twenty-five percent of the eligible invest- 30 ment authority for the taxable year containing the fifth anniversary 31 date of the closing date and up to twenty percent of the eligible 32 investment authority for the taxable years that include the sixth and 33 seventh anniversary dates of the closing date, exclusive of amounts 34 carried forward pursuant to paragraph three of this subdivision. 35 (3) If the amount of the credit for a taxable year exceeds the tax 36 otherwise due for that year, the excess shall be carried forward to 37 ensuing taxable years until fully used. A taxpayer claiming a credit 38 under this section shall submit a copy of the tax credit certificate 39 with the taxpayer's return for each taxable year for which the credit is 40 claimed. 41 § 5. The state finance law is amended by adding a new section 99-bb to 42 read as follows: 43 § 99-bb. New York agriculture and rural jobs fund. 1. There is hereby 44 established in the joint custody of the state comptroller and the 45 commissioner of taxation and finance a special fund to be known as the 46 "New York agriculture and rural jobs fund". 47 2. Such fund shall consist of all application fees submitted pursuant 48 to subparagraph (F) of paragraph one of subdivision (b) of section 49 forty-four of the tax law, and all other moneys appropriated, credited, 50 or transferred thereto from any other fund or source pursuant to law. 51 3. Moneys of the fund, following appropriation by the legislature 52 shall be expended only for the purposes of providing funding for the New 53 York agriculture and rural jobs credit set forth in section forty-four 54 of the tax law. Moneys shall be paid out of the fund on the audit and 55 warrant of the state comptroller on vouchers approved and certified by 56 the commissioner of taxation and finance. Any interest received by theA. 9509--B 140 1 comptroller on moneys on deposit in the New York agriculture and rural 2 jobs fund shall be retained in and become part of such fund. 3 § 6. This act shall take effect July 1, 2018. 4 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 5 sion, section or part of this act shall be adjudged by any court of 6 competent jurisdiction to be invalid, such judgment shall not affect, 7 impair, or invalidate the remainder thereof, but shall be confined in 8 its operation to the clause, sentence, paragraph, subdivision, section 9 or part thereof directly involved in the controversy in which such judg- 10 ment shall have been rendered. It is hereby declared to be the intent of 11 the legislature that this act would have been enacted even if such 12 invalid provisions had not been included herein. 13 § 3. This act shall take effect immediately provided, however, that 14 the applicable effective date of Parts A through EEE of this act shall 15 be as specifically set forth in the last section of such Parts.
