Bill Text: NY A10136 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts "the school district property tax relief act"; relates to adopting a school income tax surcharge (Part A); provides for the restriction of the school district real property tax on residential property; authorizes the imposition by school districts of a surcharge on the state income tax of district residents to finance public education (Part B).
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2018-03-16 - referred to education [A10136 Detail]
Download: New_York-2017-A10136-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10136 IN ASSEMBLY March 16, 2018 ___________ Introduced by M. of A. GALEF, GOTTFRIED, GUNTHER, ABINANTI -- read once and referred to the Committee on Education AN ACT in relation to enacting the school district property tax relief act; to amend the education law, in relation to adopting a school income tax surcharge (Part A); and to amend the real property tax law and the tax law, in relation to providing for the restriction of the school district real property tax on residential property and to authorize the imposition by school districts of a surcharge on the state income tax of district residents to finance public education (Part B) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as "the school 2 district property tax relief act". 3 § 2. This act enacts into law major components of legislation which 4 are necessary to implement the school district property tax relief act. 5 Each component is wholly contained within a Part identified as Parts A 6 and B. The effective date for each particular provision contained with- 7 in such Part is set forth in the last section of such Part. Any 8 provision in any section contained within a Part, including the effec- 9 tive date of the Part, which makes reference to a section "of this act", 10 when used in connection with that particular component, shall be deemed 11 to mean and refer to the corresponding section of the Part in which it 12 is found. Section four of this act sets forth the general effective 13 date of this act. 14 PART A 15 Section 1. Legislative findings and declarations. The legislature 16 finds that the property tax has long been relied upon by school 17 districts as a principal method to finance public education. The proper- 18 ty tax, however, is regressive and fails to account for a taxpayer's 19 ability to pay, and falls hardest on those with reduced or fixed 20 incomes. Therefore, to relieve the mounting burden on residential prop- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13991-01-7A. 10136 2 1 erty taxpayers and to provide local school districts with greater flexi- 2 bility to finance public education, while assuring the continued deliv- 3 ery of quality educational services, the legislature finds that school 4 districts shall be authorized, at local option, to impose a school 5 district income tax surcharge on the state personal income tax of 6 district residents to replace a portion of the school district property 7 tax. 8 § 2. The education law is amended by adding a new section 1501-d to 9 read as follows: 10 § 1501-d. Adoption of school district income tax surcharge. 1. The 11 board of trustees or board of education of any school district other 12 than a school district of a city subject to the provisions of article 13 fifty-two of this chapter may adopt, by resolution, a school district 14 income tax surcharge imposed pursuant to the authority of article thir- 15 ty-C of the tax law, to finance public education, in accordance with a 16 proposition submitted to and approved by electors of the school district 17 as authorized pursuant to this section. 18 2. Upon a majority vote of the board of trustees or board of education 19 of a school district or upon the filing of a petition with the chief 20 executive officer of the school district, a study commission shall be 21 created. A petition to create a study commission within a school 22 district shall be sufficient if it is signed and acknowledged by quali- 23 fied electors of the school district, in number equal to five per centum 24 of the total number of electors within the school district qualified to 25 vote in the general election immediately preceding filing of the peti- 26 tion. 27 3. (a) The study commission formed pursuant to this section shall 28 present a written report to the board of trustees or the board of educa- 29 tion setting forth either a school district income tax surcharge plan or 30 a written recommendation that no plan be adopted. Such recommendation 31 shall include the reasons for rejecting a surcharge plan. The study 32 commission shall file the report with the board of trustees or the board 33 of education on or before one year from the date of presentation of the 34 petition to the chief executive officer of the school district or vote 35 of the board of trustees or the board of education directing the forma- 36 tion of the study commission. If the commission fails to make a recom- 37 mendation within the allotted time, the board shall extend the commis- 38 sion or assume its responsibilities. 39 (b) The commission shall be composed of at least nine members 40 appointed by the board of trustees or the board of education. Member- 41 ship shall be comprised of representatives of property owners residing 42 in the school district, commercial property owners whose principal place 43 of business is located within the school district, and the board of 44 trustees or board of education, but shall not include more than one 45 trustee of a board of education or member of a board of education. 46 (c) Members of a study commission established pursuant to this section 47 shall file oaths of office with the appointing authority. Their terms 48 shall extend to and expire upon submission of the report to the board of 49 trustees or the board of education as provided in this section. Members 50 shall receive no compensation for membership on the study commission. 51 Costs and expenses of the study commission if approved by the board 52 shall be paid by the school district. Such commission shall organize and 53 form such subcommittees, may establish meetings and hold informational 54 hearings as it deems desirable and shall consult with the designees of 55 the director of the office of real property tax services and the commis- 56 sioner of taxation and finance.A. 10136 3 1 (d) A study commission shall hold at least one public hearing in the 2 school district at least sixty days prior to submission of its report to 3 the board of trustees or the board of education, at which the public 4 shall have an opportunity to be heard. The study commission shall 5 publish notice of the public hearing on any official website and in at 6 least one newspaper of general circulation within the school district at 7 least seven and no greater than ten days prior to the date of such 8 public hearing. Such notice shall specify the day, hour and place such 9 hearing shall be held. 10 4. A study commission recommending a school district income tax 11 surcharge shall adopt a plan which describes the rate of the surcharge 12 to be imposed, the manner in which real property taxes for school 13 district purposes will be restricted in accordance with section thirteen 14 hundred seven of the real property tax law, and any such other matters 15 as may be desirable or necessary to describe the income tax surcharge to 16 be imposed or its administration. Such commission plan shall describe 17 restrictions, if any, upon the authority of a school district, acting 18 through its board of trustees or board of education, to modify the first 19 year rate of the income tax surcharge in subsequent years. The 20 restrictions may include, but are not limited to, the following: 21 (a) requiring voter approval for any change in the surcharge rate; 22 (b) limiting the amount of a rate change in one year or over a number 23 of years; 24 (c) requiring the commission to be reconvened to study and adopt a 25 rate change; 26 (d) requiring a supermajority of the board of trustees or the board of 27 education to approve a rate change; or 28 (e) some combination of the above. 29 5. (a) Upon the study commission's presentation of a plan, or recom- 30 mendation not to adopt a plan, the board of trustees or the board of 31 education shall decide whether to accept or reject the plan or recommen- 32 dation of the study commission. The board of trustees or the board of 33 education shall take such action on the study commission's recommenda- 34 tion within one hundred twenty days of its presentment to the board of 35 trustees or the board of education. The board of trustees or the board 36 of education shall hold at least one public hearing in the school 37 district at least thirty days prior to taking action on the study 38 commission's recommendation, at which the public shall have an opportu- 39 nity to be heard. The board of trustees or the board of education shall 40 publish notice of the public hearing in at least one newspaper of gener- 41 al circulation within the school district, at least seven and no greater 42 than ten days, prior to the date of such public hearing. Such notice 43 shall specify the day, hour and place such hearing shall be held. If the 44 plan is accepted by a majority of the board of trustees or the board of 45 education, a proposition shall be prepared by the board of trustees or 46 the board of education and submitted to the voters at the next regular 47 school election. 48 (b) Upon acceptance of the plan and formulation of the proposition the 49 board of trustees or the board of education shall publish the full text 50 of the proposition and the school district tax surcharge plan in at 51 least one newspaper of general circulation within the school district at 52 least thirty days prior to the date of election at which the school 53 district voters shall vote on the plan and proposition. Copies of the 54 plan and proposition shall be made available to the public at the 55 offices of the school district at any time during regular business hours 56 and on any official website maintained by the school district.A. 10136 4 1 6. (a) A proposition for the imposition of a school district income 2 tax surcharge shall state "Shall the (name of school district) be 3 empowered to adopt a school district income tax surcharge pursuant to 4 the school district income tax surcharge plan?" The proposition shall 5 also contain an abstract of such plan which shall (i) identify in full 6 the option restricting the school district levy of real property tax 7 chosen pursuant to section thirteen hundred seven of the real property 8 tax law, and (ii) concisely state in plain language the purpose and 9 effect of adopting such plan including the general effect on residential 10 real property taxpayers, the income tax surcharge rate expected to be 11 imposed, and restrictions, if any, applicable to changes in such rate. 12 (b) Upon approval of a majority of the qualified electors within a 13 school district, the proposition shall be approved. Upon such approval a 14 certificate of such election shall be filed with the clerk of the school 15 district named in the proposition, the commissioner and the commissioner 16 of taxation and finance. 17 7. The levy of real property taxes by any school district to finance 18 education which adopts a school district income tax surcharge shall be 19 subject to the provisions of section thirteen hundred seven of the real 20 property tax law. 21 8. If adopted by the board of trustees or the board of education on or 22 before March thirty-first in any year, with notice to the commissioner 23 of taxation and finance, as provided in section thirteen hundred sixty- 24 one of the tax law on or before such date, such school district income 25 tax surcharge plan shall become effective from and after the first day 26 of January next succeeding its adoption. If adopted after March thirty- 27 first in any year, or with notice after such date, such local income tax 28 surcharge plan shall become effective from and after one year from the 29 first day of January next succeeding its adoption. 30 § 3. This act shall take effect immediately. 31 PART B 32 Section 1. Section 1306 of the real property tax law is amended by 33 adding a new subdivision 6 to read as follows: 34 6. The levy of taxes by any school district which imposes a personal 35 income tax pursuant to article thirty-C of the tax law shall be subject 36 to the restrictions of section thirteen hundred seven of this article. 37 § 2. The real property tax law is amended by adding a new section 1307 38 to read as follows: 39 § 1307. Reduction in the levy of real property taxes. 1. Where a 40 school district elects to impose a school district income tax surcharge 41 in accordance with article thirty-C of the tax law, the amount to be 42 raised by levy against residential real property in the school district 43 shall be reduced by the dollar amount raised pursuant to such surcharge 44 for the calendar year immediately preceding the year of commencement of 45 the school fiscal year. For the purposes of this section the term "resi- 46 dential real property" shall be limited to primary residences as defined 47 in subdivision three of section four hundred twenty-five of this chap- 48 ter. 49 2. The amount of reduction for each parcel of residential real proper- 50 ty shall be stated on the school tax bill. The school tax bill also 51 shall show the amount of the total levy, the amount to be raised by the 52 residential property in the school district, the amount of surcharge 53 raised reducing such portion of the levy and the amount to be raised by 54 the non-residential property in the district. Comparison to the preced-A. 10136 5 1 ing year shall also be shown in addition to such other information as 2 the commissioner of education shall specify. Property owners not 3 subject to the income tax surcharge imposed by article thirty-C of the 4 tax law shall not receive a reduction in the real property taxes pursu- 5 ant to this section. 6 § 3. Subdivision 1 of section 202 of the real property tax law is 7 amended by adding a new paragraph (q) to read as follows: 8 (q) Direct the executive director of the office of real property 9 services to develop guidelines and provide technical assistance to a 10 study commission of a school district formed pursuant to section fifteen 11 hundred one-d of the education law in order to implement the provisions 12 of article thirty-C of the tax law and section thirteen hundred seven of 13 this chapter. 14 § 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as 15 amended by chapter 166 of the laws of 1991, is amended to read as 16 follows: 17 (1) Subject to the requirements contained in subdivisions (c) and (d) 18 of this section, the commissioner shall require by regulation that any 19 payment of tax made by a taxpayer who is required, for either of the 20 semi-annual periods ending June thirtieth or December thirty-first, to 21 deduct and withhold an aggregate of thirty-five thousand dollars or more 22 of withholding taxes pursuant to part V of article twenty-two of this 23 chapter, or pursuant to an equivalent provision enacted under the 24 authority of article thirty, thirty-A [or], thirty-B or thirty-C of this 25 chapter[, or article two-E of the general city law,] shall be made, on 26 or before the date prescribed by law, by electronic funds transfer to a 27 bank, banking house or trust company designated by the commissioner. The 28 commissioner shall designate only such banks, banking houses or trust 29 companies as are or shall be designated by the comptroller as deposito- 30 ries pursuant to section one hundred seventy-one-a of this chapter, as 31 added by chapter sixty-nine of the laws of nineteen hundred seventy- 32 eight. Notwithstanding any provision of law to the contrary, any such 33 payment shall be deemed to be made on the date the payment is received 34 by the designated depository of the department; provided, however, that 35 at the election of a taxpayer subject to the provisions of this subdivi- 36 sion, mailing by the taxpayer of the applicable withholding tax return 37 and a certified check for the amount of the tax liability on or before 38 the second business day prior to the applicable due date otherwise 39 prescribed by law shall fulfill the requirements of this section and 40 shall be deemed to be timely payment of such tax liability and timely 41 filing of such return. 42 § 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the 43 tax law, as added by chapter 770 of the laws of 1992, are amended to 44 read as follows: 45 Eighteenth-b. Where the filing requirement arises under article twen- 46 ty-two of this chapter or under a law enacted pursuant to the authority 47 of article thirty [or], thirty-A or thirty-C of this chapter, have 48 authority to require a husband and wife whose federal income tax liabil- 49 ities are determined on a joint federal return and who have not filed a 50 joint New York income tax return to file separate income tax returns, in 51 which case their income tax liabilities shall be separate. Such authori- 52 ty shall be exercised only where one of such persons demonstrates, to 53 the satisfaction of the commissioner, that (a) the address or where- 54 abouts of his or her spouse is unknown to him or her, (b) reasonable 55 efforts have been made by him or her to locate such spouse, and (c) goodA. 10136 6 1 cause existed for the failure to file a joint New York income tax 2 return. 3 Eighteenth-c. Where the filing requirement arises under article twen- 4 ty-two of this chapter or under a law enacted pursuant to the authority 5 of article thirty [or], thirty-A or thirty-C of this chapter, have 6 authority to require a husband and wife whose federal income tax liabil- 7 ities are determined on a joint federal return and who have not filed a 8 joint New York income tax return to file separate income tax returns, in 9 which case their income tax liabilities shall be separate. Such authori- 10 ty shall be exercised only where one of such persons demonstrates, to 11 the satisfaction of the commissioner, that (a) his or her spouse has 12 refused to sign a joint New York income tax return, (b) reasonable 13 efforts have been made by him or her to have such spouse sign a joint 14 New York income tax return, (c) there exists objective evidence of 15 alienation of such person from his or her spouse such as a judicial 16 order of protection, legal separation under a decree of divorce or sepa- 17 rate maintenance, separation under a written separation agreement or 18 judicial decree of separation, living apart at all times during the 19 twelve months immediately preceding the application for exercise of 20 authority under this provision, the commencement of an action for 21 divorce, or the commencement of proceedings in family court which 22 evidence such alienation, and (d) good cause existed for the failure to 23 file a joint New York income tax return. 24 § 6. Subdivision 1 of section 171-a of the tax law, as amended by 25 section 15 of part AAA of chapter 59 of the laws of 2017, is amended to 26 read as follows: 27 1. All taxes, interest, penalties and fees collected or received by 28 the commissioner or the commissioner's duly authorized agent under arti- 29 cles nine (except section one hundred eighty-two-a thereof and except as 30 otherwise provided in section two hundred five thereof), nine-A, 31 twelve-A (except as otherwise provided in section two hundred eighty- 32 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 33 section three hundred twelve thereof), eighteen, nineteen, twenty 34 (except as otherwise provided in section four hundred eighty-two there- 35 of), twenty-B, twenty-one, twenty-two, twenty-six, twenty-eight (except 36 as otherwise provided in section eleven hundred two or eleven hundred 37 three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as 38 otherwise provided in section fourteen hundred twenty-one thereof), 39 thirty-three and thirty-three-A of this chapter shall be deposited daily 40 in one account with such responsible banks, banking houses or trust 41 companies as may be designated by the comptroller, to the credit of the 42 comptroller. Such an account may be established in one or more of such 43 depositories. Such deposits shall be kept separate and apart from all 44 other money in the possession of the comptroller. The comptroller shall 45 require adequate security from all such depositories. Of the total 46 revenue collected or received under such articles of this chapter, the 47 comptroller shall retain in the comptroller's hands such amount as the 48 commissioner may determine to be necessary for refunds or reimbursements 49 under such articles of this chapter out of which amount the comptroller 50 shall pay any refunds or reimbursements to which taxpayers shall be 51 entitled under the provisions of such articles of this chapter. The 52 commissioner and the comptroller shall maintain a system of accounts 53 showing the amount of revenue collected or received from each of the 54 taxes imposed by such articles. The comptroller, after reserving the 55 amount to pay such refunds or reimbursements, shall, on or before the 56 tenth day of each month, pay into the state treasury to the credit ofA. 10136 7 1 the general fund all revenue deposited under this section during the 2 preceding calendar month and remaining to the comptroller's credit on 3 the last day of such preceding month, (i) except that the comptroller 4 shall pay to the state department of [social services] family assistance 5 that amount of overpayments of tax imposed by article twenty-two of this 6 chapter and the interest on such amount which is certified to the comp- 7 troller by the commissioner as the amount to be credited against past- 8 due support pursuant to subdivision six of section one hundred seventy- 9 one-c of this article, (ii) and except that the comptroller shall pay to 10 the New York state higher education services corporation and the state 11 university of New York or the city university of New York respectively 12 that amount of overpayments of tax imposed by article twenty-two of this 13 chapter and the interest on such amount which is certified to the comp- 14 troller by the commissioner as the amount to be credited against the 15 amount of defaults in repayment of guaranteed student loans and state 16 university loans or city university loans pursuant to subdivision five 17 of section one hundred seventy-one-d and subdivision six of section one 18 hundred seventy-one-e of this article, (iii) and except further that, 19 notwithstanding any law, the comptroller shall credit to the revenue 20 arrearage account, pursuant to section ninety-one-a of the state finance 21 law, that amount of overpayment of tax imposed by article nine, nine-A, 22 twenty-two, thirty, thirty-A, thirty-B, thirty-C or thirty-three of this 23 chapter, and any interest thereon, which is certified to the comptroller 24 by the commissioner as the amount to be credited against a past-due 25 legally enforceable debt owed to a state agency pursuant to paragraph 26 (a) of subdivision six of section one hundred seventy-one-f of this 27 article, provided, however, [he] the commissioner shall credit to the 28 special offset fiduciary account, pursuant to section ninety-one-c of 29 the state finance law, any such amount creditable as a liability as set 30 forth in paragraph (b) of subdivision six of section one hundred seven- 31 ty-one-f of this article, (iv) and except further that the comptroller 32 shall pay to the city of New York that amount of overpayment of tax 33 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, 34 thirty-C or thirty-three of this chapter and any interest thereon that 35 is certified to the comptroller by the commissioner as the amount to be 36 credited against city of New York tax warrant judgment debt pursuant to 37 section one hundred seventy-one-l of this article, (v) and except 38 further that the comptroller shall pay to a non-obligated spouse that 39 amount of overpayment of tax imposed by article twenty-two of this chap- 40 ter and the interest on such amount which has been credited pursuant to 41 section one hundred seventy-one-c, one hundred seventy-one-d, one 42 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 43 ty-one-l of this article and which is certified to the comptroller by 44 the commissioner as the amount due such non-obligated spouse pursuant to 45 paragraph six of subsection (b) of section six hundred fifty-one of this 46 chapter; and (vi) the comptroller shall deduct a like amount which the 47 comptroller shall pay into the treasury to the credit of the general 48 fund from amounts subsequently payable to the department of social 49 services, the state university of New York, the city university of New 50 York, or the higher education services corporation, or the revenue 51 arrearage account or special offset fiduciary account pursuant to 52 section ninety-one-a or ninety-one-c of the state finance law, as the 53 case may be, whichever had been credited the amount originally withheld 54 from such overpayment, and (vii) with respect to amounts originally 55 withheld from such overpayment pursuant to section one hundred seventy-A. 10136 8 1 one-l of this article and paid to the city of New York, the comptroller 2 shall collect a like amount from the city of New York. 3 § 6-a. Subdivision 1 of section 171-a of the tax law, as amended by 4 section 16 of part AAA of chapter 59 of the laws of 2017, is amended to 5 read as follows: 6 1. All taxes, interest, penalties and fees collected or received by 7 the commissioner or the commissioner's duly authorized agent under arti- 8 cles nine (except section one hundred eighty-two-a thereof and except as 9 otherwise provided in section two hundred five thereof), nine-A, 10 twelve-A (except as otherwise provided in section two hundred eighty- 11 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 12 section three hundred twelve thereof), eighteen, nineteen, twenty 13 (except as otherwise provided in section four hundred eighty-two there- 14 of), twenty-one, twenty-two, twenty-six, twenty-eight (except as other- 15 wise provided in section eleven hundred two or eleven hundred three 16 thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise 17 provided in section fourteen hundred twenty-one thereof), thirty-three 18 and thirty-three-A of this chapter shall be deposited daily in one 19 account with such responsible banks, banking houses or trust companies 20 as may be designated by the comptroller, to the credit of the comp- 21 troller. Such an account may be established in one or more of such 22 depositories. Such deposits shall be kept separate and apart from all 23 other money in the possession of the comptroller. The comptroller shall 24 require adequate security from all such depositories. Of the total 25 revenue collected or received under such articles of this chapter, the 26 comptroller shall retain in the comptroller's hands such amount as the 27 commissioner may determine to be necessary for refunds or reimbursements 28 under such articles of this chapter out of which amount the comptroller 29 shall pay any refunds or reimbursements to which taxpayers shall be 30 entitled under the provisions of such articles of this chapter. The 31 commissioner and the comptroller shall maintain a system of accounts 32 showing the amount of revenue collected or received from each of the 33 taxes imposed by such articles. The comptroller, after reserving the 34 amount to pay such refunds or reimbursements, shall, on or before the 35 tenth day of each month, pay into the state treasury to the credit of 36 the general fund all revenue deposited under this section during the 37 preceding calendar month and remaining to the comptroller's credit on 38 the last day of such preceding month, (i) except that the comptroller 39 shall pay to the state department of [social services] family assistance 40 that amount of overpayments of tax imposed by article twenty-two of this 41 chapter and the interest on such amount which is certified to the comp- 42 troller by the commissioner as the amount to be credited against past- 43 due support pursuant to subdivision six of section one hundred seventy- 44 one-c of this article, (ii) and except that the comptroller shall pay to 45 the New York state higher education services corporation and the state 46 university of New York or the city university of New York respectively 47 that amount of overpayments of tax imposed by article twenty-two of this 48 chapter and the interest on such amount which is certified to the comp- 49 troller by the commissioner as the amount to be credited against the 50 amount of defaults in repayment of guaranteed student loans and state 51 university loans or city university loans pursuant to subdivision five 52 of section one hundred seventy-one-d and subdivision six of section one 53 hundred seventy-one-e of this article, (iii) and except further that, 54 notwithstanding any law, the comptroller shall credit to the revenue 55 arrearage account, pursuant to section ninety-one-a of the state finance 56 law, that amount of overpayment of tax imposed by article nine, nine-A,A. 10136 9 1 twenty-two, thirty, thirty-A, thirty-B, thirty-C or thirty-three of this 2 chapter, and any interest thereon, which is certified to the comptroller 3 by the commissioner as the amount to be credited against a past-due 4 legally enforceable debt owed to a state agency pursuant to paragraph 5 (a) of subdivision six of section one hundred seventy-one-f of this 6 article, provided, however, [he] the commissioner shall credit to the 7 special offset fiduciary account, pursuant to section ninety-one-c of 8 the state finance law, any such amount creditable as a liability as set 9 forth in paragraph (b) of subdivision six of section one hundred seven- 10 ty-one-f of this article, (iv) and except further that the comptroller 11 shall pay to the city of New York that amount of overpayment of tax 12 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, 13 thirty-C or thirty-three of this chapter and any interest thereon that 14 is certified to the comptroller by the commissioner as the amount to be 15 credited against city of New York tax warrant judgment debt pursuant to 16 section one hundred seventy-one-l of this article, (v) and except 17 further that the comptroller shall pay to a non-obligated spouse that 18 amount of overpayment of tax imposed by article twenty-two of this chap- 19 ter and the interest on such amount which has been credited pursuant to 20 section one hundred seventy-one-c, one hundred seventy-one-d, one 21 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 22 ty-one-l of this article and which is certified to the comptroller by 23 the commissioner as the amount due such non-obligated spouse pursuant to 24 paragraph six of subsection (b) of section six hundred fifty-one of this 25 chapter; and (vi) the comptroller shall deduct a like amount which the 26 comptroller shall pay into the treasury to the credit of the general 27 fund from amounts subsequently payable to the department of social 28 services, the state university of New York, the city university of New 29 York, or the higher education services corporation, or the revenue 30 arrearage account or special offset fiduciary account pursuant to 31 section ninety-one-a or ninety-one-c of the state finance law, as the 32 case may be, whichever had been credited the amount originally withheld 33 from such overpayment, and (vii) with respect to amounts originally 34 withheld from such overpayment pursuant to section one hundred seventy- 35 one-l of this article and paid to the city of New York, the comptroller 36 shall collect a like amount from the city of New York. 37 § 7. Subdivision 1 of section 171-c of the tax law, as amended by 38 chapter 601 of the laws of 2007, is amended to read as follows: 39 (1) The commissioner, on behalf of the department, shall enter into a 40 written agreement with the commissioner of the office of temporary and 41 disability assistance, on behalf of the state office of temporary and 42 disability assistance, which shall set forth the procedures for credit- 43 ing any overpayment by an individual, estate or trust of income tax 44 imposed by article twenty-two of this chapter, city personal income tax 45 on residents imposed pursuant to the authority of article thirty of this 46 chapter, city income tax surcharge on residents imposed pursuant to the 47 authority of article thirty-A of this chapter and city earnings tax on 48 nonresidents imposed pursuant to the authority of article thirty-B of 49 this chapter and school district income tax surcharge imposed pursuant 50 to the authority of article thirty-C of this chapter and the interest on 51 such overpayments against past-due support owed by such individual, 52 estate or trust of which the commissioner has been notified by the 53 commissioner of the office of temporary and disability assistance pursu- 54 ant to the provisions of such agreement.A. 10136 10 1 § 8. Subdivision 1 of section 171-d of the tax law, as amended by 2 section 2 of part M of chapter 57 of the laws of 2008, is amended to 3 read as follows: 4 (1) The commissioner, on behalf of the [tax commission] department, 5 shall enter into a written agreement with the president of the New York 6 state higher education services corporation, on behalf of such corpo- 7 ration, which shall set forth the procedures for crediting any overpay- 8 ment by an individual, estate or trust of income tax imposed by article 9 twenty-two of this chapter, city personal income tax on residents 10 imposed pursuant to the authority of article thirty of this chapter, 11 city income tax surcharge on residents imposed pursuant to the authority 12 of article thirty-A of this chapter, [city earnings tax on nonresidents13imposed pursuant to the authority of former article two-E of the general14city law and] city earnings tax on nonresidents imposed pursuant to the 15 authority of article thirty-B of this chapter, school district income 16 tax surcharge imposed pursuant to the authority of article thirty-C of 17 this chapter and the interest on such overpayments against the amount of 18 any default in repayment of any governmental education loan owed by such 19 individual, estate or trust of which the commissioner has been notified 20 by the president of the New York state higher education services corpo- 21 ration pursuant to the provisions of such agreement. For purposes of 22 this section, "governmental education loan" shall mean any education 23 loan debt, including judgments, owed to the federal or New York state 24 government that is being collected by the New York state higher educa- 25 tion services corporation. 26 § 9. Subdivision 2 of section 171-e of the tax law, as separately 27 amended by chapters 222 and 638 of the laws of 1985, is amended to read 28 as follows: 29 (2) The commissioner [of taxation and finance], on behalf of the [tax30commission] department, shall enter into a written agreement with the 31 state university of New York or the city university of New York respec- 32 tively which shall set forth the procedures for crediting any overpay- 33 ment by an individual, estate or trust of income tax imposed by article 34 twenty-two of this chapter, city personal income tax on residents 35 imposed pursuant to the authority of article thirty of this chapter, 36 city income tax surcharge on residents imposed pursuant to the authority 37 of article thirty-A of this chapter, [city earnings tax on nonresidents38imposed pursuant to the authority of article two-E of the general city39law and] city earnings tax on nonresidents imposed pursuant to the 40 authority of article thirty-B of this chapter and school district income 41 tax surcharge imposed pursuant to the authority of article thirty-C of 42 this chapter and the interest on such overpayments against the amount of 43 any default in repayment of a state university loan or city university 44 loan owed by such individual, estate or trust of which the commissioner 45 [of taxation and finance] has been notified by the state university of 46 New York or the city university of New York respectively pursuant to the 47 provisions of such agreement. 48 § 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi- 49 sion 1 as amended by chapter 81 of the laws of 1995, paragraphs (b) and 50 (c) of subdivision 1 as amended by section 56 and subdivision 2 as 51 amended by section 57 of part A of chapter 59 of the laws of 2014, are 52 amended to read as follows: 53 (1) For the purposes of this section, (a) "state agency" shall mean 54 any state department, board, bureau, division, commission, committee, 55 public authority, public benefit corporation, council, office, or other 56 governmental entity performing a governmental or proprietary functionA. 10136 11 1 for the state, or, solely for purposes of this section, a local social 2 services district; (b) "taxpayer" shall mean a corporation, association, 3 company, partnership, estate, trust, liquidator, fiduciary or other 4 entity or individual who or which is liable for any tax or other imposi- 5 tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty, 6 thirty-A, thirty-B, thirty-C or thirty-three of this chapter [or article7two-E of the general city law], which tax or other imposition is admin- 8 istered by the commissioner [of taxation and finance], or who or which 9 is under a duty to perform an act under or pursuant to such tax or impo- 10 sition, excluding a state agency, a municipal corporation or a district 11 corporation; and (c) "overpayment" shall mean an overpayment which has 12 been requested or determined to be refunded, a refund or a reimburse- 13 ment, of a tax or other imposition imposed by or pursuant to article 14 nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-C or thir- 15 ty-three of this chapter or former article two-E of the general city 16 law, which is administered by the commissioner [of taxation and17finance]. 18 (2) The commissioner [of taxation and finance], upon agreement with 19 the state comptroller and acting as an agent for the state comptroller, 20 shall set forth the procedures for crediting any overpayment by a 21 taxpayer of any tax or other imposition imposed by or authorized to be 22 imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A, 23 thirty-B, thirty-C or thirty-three of this chapter [or article two-E of24the general city law], which is administered by the commissioner [of25taxation and finance], and the interest on any such overpayments, 26 against the amount of a past-due legally enforceable debt owed by such 27 taxpayer to a state agency. An implementation plan shall be developed by 28 the division of the budget and the department of taxation and finance 29 which shall provide, but not be limited to, guidance with respect to 30 coordination of debt collection pursuant to this section and subdivision 31 twenty-seventh of section one hundred seventy-one of this article. This 32 section shall not be deemed to abrogate or limit in any way the powers 33 and authority of the state comptroller to set off debts owed the state 34 against payments from the state, under the constitution of the state or 35 any other law. 36 § 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as 37 amended by section 1 of part CC of chapter 57 of the laws of 2010, is 38 amended to read as follows: 39 (1) state and local general sales taxes as defined in subsection (b) 40 of section one hundred sixty-four of the internal revenue code, to the 41 extent included in federal itemized deductions or income taxes imposed 42 by this state or any other taxing jurisdiction, except (A) city earnings 43 taxes on nonresidents that are imposed upon and paid by taxpayers for 44 taxable years beginning after December thirty-first, nineteen hundred 45 seventy and before January first, two thousand, pursuant to the authori- 46 ty of former section twenty-five-m of the general city law, to the 47 extent that the amount of such tax exceeds the tax computed as if the 48 rates were one-fourth of one percent of wages subject to tax and three- 49 eighths of one percent of net earnings from self-employment subject to 50 tax, and (B) any school district income tax surcharge imposed pursuant 51 to the authority of article thirty-C of this chapter; 52 § 12. The tax law is amended by adding a new article 30-C to read as 53 follows: 54 ARTICLE 30-C 55 SCHOOL DISTRICT INCOME TAX SURCHARGE 56 Section 1360. Short title.A. 10136 12 1 1361. Authority to impose school district income tax surcharge. 2 1362. Model resolution. 3 1363. Adoption of the model school district income tax 4 surcharge. 5 1364. Deposit and disposition of revenues. 6 § 1360. Short title. This article shall be known and may be cited as 7 the "school district income tax surcharge". 8 § 1361. Authority to impose school district income tax surcharge. (a) 9 General. Notwithstanding any other provision of law to the contrary, but 10 subject to the limitations and conditions set forth in this article, any 11 school district in this state (other than a school district of a city 12 subject to the provisions of article fifty-two of the education law), 13 acting through its board of trustees or board of education in accordance 14 with section fifteen hundred one-d of the education law, is hereby 15 authorized and empowered to adopt and amend resolutions imposing in any 16 such school district, for taxable years beginning after two thousand 17 ten, a school district income tax surcharge on the net state tax (as 18 defined in section three of the model school district income tax 19 surcharge set forth in section thirteen hundred sixty-three of this 20 article) of residents of the school district, at a rate permissible 21 under subsection (c) of this section. Such school district income tax 22 surcharge shall be administered, collected and distributed by the 23 commissioner as provided for in this article. 24 (b) Form of adoption of resolution. Adoption of an income tax 25 surcharge pursuant to the authority of this section shall be by adoption 26 of a resolution, substantially similar in terms to the model resolution 27 set forth in section thirteen hundred sixty-two of this article, setting 28 forth one of the rates of income tax surcharge provided in subsection 29 (c) of this section and specifying the taxable years for which the rate 30 is to be effective. Such resolution shall be deemed to incorporate ther- 31 ein all of the provisions of the model school district income tax 32 surcharge set forth in section thirteen hundred sixty-three of this 33 article, as amended from time to time. 34 (c) Rate of surcharge. The permissible rates of income tax surcharge 35 authorized by this section shall be whole number multiples of one 36 percent and shall not exceed twenty-five percent. Different permissible 37 rates may be imposed with respect to different calendar years, but only 38 one such rate may be imposed with respect to a single calendar year, and 39 any such rate shall remain in effect for the entire year and shall apply 40 to all taxable years beginning in such calendar year. 41 (d) Effectiveness of resolution and filing with commissioner. (1) 42 Initial adoption. A resolution imposing an income tax surcharge pursuant 43 to the authority of this section which is adopted on or before March 44 thirty-first of any calendar year with notice to the commissioner on or 45 before such date shall go into effect on the first day of January of the 46 first succeeding calendar year, and any such local law enacted after, or 47 with notice after, such March thirty-first shall go into effect on the 48 first day of January of the second succeeding calendar year, and in 49 either case shall apply to taxable years beginning on and after such 50 first day of January. 51 (2) Amendment. A resolution amending such an income tax surcharge, 52 which resolution is adopted on or before June thirtieth of any calendar 53 year with notice to the commissioner on or before such date shall go 54 into effect on the first day of January of the first succeeding calendar 55 year, and any such resolution adopted after, or with notice after, such 56 June thirtieth shall go into effect on the first day of January of theA. 10136 13 1 second succeeding calendar year, and in either case shall apply to taxa- 2 ble years beginning on and after such first day of January. 3 (3) Notice. Notice to the commissioner of adoption of any resolution 4 pursuant to the authority of this section shall be by mailing by regis- 5 tered mail a certified copy of such resolution to the commissioner at 6 the commissioner's office in Albany. 7 (e) Filing of resolution with others. Certified copies of any such 8 resolution shall also be filed, within thirty days of the date of enact- 9 ment, with the clerk of the school district wherein the surcharge is 10 imposed. 11 (f) Cooperation. (1) Every school district imposing a school district 12 income tax surcharge under the authority of this section shall furnish 13 the commissioner such information as he or she may require in the admin- 14 istration of such surcharge, any other law to the contrary notwithstand- 15 ing. 16 (2) The commissioner shall advise and cooperate with school district 17 officials for the purpose of uniform administration, collection and 18 distribution of the tax authorized by this section. 19 (3) Any amendment to the provisions of article twenty-two of this 20 chapter, to the extent that such amendment is applicable to the model 21 school district income tax surcharge, shall be deemed to have been 22 incorporated in the analogous provision or provisions of such model 23 surcharge. 24 § 1362. Model resolution. The resolution described in subsection (b) 25 of section thirteen hundred sixty-one of this article shall be in 26 substantially the following form: 27 IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE. 28 The school district hereby adopts the model school 29 district income tax surcharge, for taxable years beginning on and after 30 January 1, 20 , at the rate of percent. 31 § 1363. Adoption of the model school district income tax surcharge. 32 Adoption by a school district of the resolution set forth in section 33 thirteen hundred sixty-two of this article shall be deemed to be 34 adoption of the model school district income tax surcharge set forth 35 below. 36 MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE 37 Section 1. Persons subject to the school district income tax surcharge. 38 2. Renter's credit. 39 3. Net state tax. 40 4. School district resident defined. 41 5. Returns and liabilities. 42 6. Requirement of withholding tax from wages. 43 7. Credit for tax withheld. 44 8. Enforcement with other taxes. 45 9. Administration, collection and review. 46 Section 1. Persons subject to the school district income tax 47 surcharge. (a) General. The school district income tax surcharge at the 48 rate adopted shall be imposed for each taxable year on every school 49 district resident individual, estate and trust. A taxpayer's taxable 50 year for purposes of the school district income tax surcharge shall be 51 the same as the taxpayer's taxable year under article twenty-two of the 52 tax law. 53 (b) Partners and partnerships. A partnership as such shall not be 54 subject to the school district income tax surcharge. Persons carrying on 55 business as partners shall be liable for such school district income tax 56 surcharge only in their separate or individual capacities.A. 10136 14 1 (c) Associations taxable as corporations. An association, trust or 2 other unincorporated organization which is taxable as a corporation for 3 federal income tax purposes shall not be subject to the school district 4 income tax surcharge. 5 (d) Exempt trusts and organizations. A trust or other unincorporated 6 organization which by reason of its purposes or activities is exempt 7 from federal income tax shall be exempt from the school district income 8 tax surcharge (regardless of whether subject to federal income tax on 9 unrelated business taxable income). 10 § 2. Renter's credit. (a) General. A taxpayer who is a qualified 11 lessee shall be allowed a credit against the tax imposed by this model 12 surcharge equal to one and one-quarter percent of his or her adjusted 13 rent. 14 (b) Qualified lessee. A qualified lessee is an individual whose resi- 15 dence within the school district is leased real property which is not 16 residential real property. 17 (c) Adjusted rent. The term adjusted rent shall have the same meaning 18 as in subparagraph (G) of paragraph one of subsection (e) of section six 19 hundred six of the tax law, with respect to the rental paid by the qual- 20 ified lessee during the taxable year for the residence referred to in 21 subsection (b) of this section. 22 § 3. Net state tax. (a) General. The net state tax of a school 23 district resident individual, estate or trust shall mean the sum of all 24 of the taxes imposed on such individual, estate or trust under article 25 twenty-two of the tax law for the taxable year less the applicable cred- 26 its (other than the credit for tax withheld) allowed to such individual, 27 estate or trust under such article for the taxable year. 28 (b) Change of residence. When an individual or trust changes school 29 district resident status during the taxable year, the net state tax 30 shall be the net state tax determined under subsection (a) of this 31 section multiplied by a fraction, the numerator of which is the number 32 of months of residence in the school district in the taxable year and 33 the denominator of which is the number of months in the taxable year. 34 For purposes of this subsection, a month shall constitute a month of 35 residence if the individual or trust is a resident for more than fifteen 36 days of that month. 37 § 4. School district resident defined. (a) School district resident 38 individual. A school district resident individual means an individual 39 who is domiciled in the school district wherein the school district 40 income tax surcharge is imposed, unless 41 (1) such individual maintains no permanent place of abode in such 42 school district, maintains a permanent place of abode elsewhere, and 43 spends in the aggregate not more than thirty days of the taxable year in 44 such school district, or 45 (2)(A) within any period of five hundred forty-eight consecutive days 46 such individual is present in a foreign country or countries for at 47 least four hundred fifty days, and (B) during such period of five 48 hundred forty-eight consecutive days he or she is not present in such 49 school district for more than ninety days and does not maintain a perma- 50 nent place of abode in such school district at which his or her spouse 51 (unless such spouse is legally separated) or minor children are present 52 for more than ninety days, and (C) during the nonresident portion of the 53 taxable year with or within which such period of five hundred forty- 54 eight consecutive days begins and the nonresident portion of the taxable 55 year with or within which such period ends, he or she is present in such 56 school district for a number of days which does not exceed an amountA. 10136 15 1 which bears the same ratio to ninety as the number of days contained in 2 such portion of the taxable year bears to five hundred forty-eight. 3 (b) School district resident estate or trust. A school district resi- 4 dent estate or trust means: (1) the estate of a decedent who at his or 5 her death was domiciled in such school district, 6 (2) a trust, or a portion of a trust, consisting of property trans- 7 ferred by will of a decedent who at his or her death was domiciled in 8 such school district, or 9 (3) a trust, or a portion of a trust, consisting of the property of: 10 (A) a person domiciled in such school district at the time such prop- 11 erty was transferred to the trust, if such trust or portion of a trust 12 was then irrevocable, or if it was then revocable and has not subse- 13 quently become irrevocable; or 14 (B) a person domiciled in such school district at the time such trust 15 or portion of a trust became irrevocable, if it was revocable when such 16 property was transferred to the trust but has subsequently become irrev- 17 ocable. 18 For the purposes of the foregoing, a trust or a portion of a trust is 19 revocable if it is subject to a power, exercisable immediately or at any 20 future time, to revest title in the person whose property constitutes 21 such trust or portion of a trust and a trust or portion of a trust 22 becomes irrevocable when the possibility that such power may be exer- 23 cised has been terminated. 24 § 5. Returns and liabilities. (a) General. On or before the fifteenth 25 day of the fourth month following the close of a taxable year, a school 26 district income tax surcharge return shall be made and filed by or for 27 every school district resident individual, estate or trust required to 28 file a New York state personal income tax return for the taxable year. 29 (b) Husband and wife. (1) If the New York state personal income tax 30 liabilities of husband and wife are determined on separate returns, 31 their school district income tax surcharge liabilities and returns shall 32 be separate. 33 (2) If the New York state personal income tax liabilities of husband 34 and wife (other than a husband and wife described in paragraph three of 35 this subsection) are determined on a joint return, they shall file a 36 joint school district income tax surcharge return, and their school 37 district income tax surcharge liabilities shall be joint and several 38 except as provided in paragraphs four and five of this subsection and in 39 subsection (e) of section six hundred eighty-five of the tax law. 40 (3) If either husband or wife is a school district resident and the 41 other is a school district nonresident, and their New York state 42 personal income tax liabilities are determined on a joint return: 43 (A) the resident spouse may elect to file a separate school district 44 income tax surcharge return, in which case the surcharge shall be 45 applied to a separate net state tax, such separate net state tax to be 46 that portion of the total net state tax determined from the joint state 47 return which bears the same relation to such total net state tax as the 48 New York adjusted gross income (as defined in section six hundred twelve 49 of the tax law) of the resident spouse bears to the joint New York 50 adjusted gross income, or 51 (B) they may elect to file a joint school district income tax 52 surcharge return, in which case their school district income tax 53 surcharge liabilities shall be joint and several except as provided in 54 paragraphs four and five of this subsection and in subsection (e) of 55 section six hundred eighty-five of the tax law, provided that (i) if the 56 school district of residence of each spouse imposes a surcharge, but atA. 10136 16 1 different rates, they shall file the joint school district income tax 2 surcharge return with the school district imposing the higher rate of 3 surcharge, and there shall be no surcharge liability to the other school 4 district, or 5 (ii) if the school district of residence of each spouse imposes a 6 surcharge and the rates are the same, they shall file a joint school 7 district income tax surcharge return with each school district, but the 8 surcharge on each such return shall be applied to one-half of the net 9 state tax. 10 (4) Under regulations prescribed by the commissioner, if 11 (A) a joint New York state personal income tax return has been made 12 under subsection (b) of section six hundred fifty-one of the tax law for 13 a taxable year, (B) on such return there is a substantial understatement 14 of tax attributable to grossly erroneous items of one spouse, (C) the 15 other spouse is relieved of liability for New York state personal income 16 tax (including interest, penalties and other amounts) for such taxable 17 year to the extent that such liability is attributable to such substan- 18 tial understatement, and (D) a joint school district personal income tax 19 surcharge return has been made pursuant to this subsection for the taxa- 20 ble year, then such other spouse shall be relieved of liability for 21 school district income tax surcharge (including interest, penalties and 22 other amounts) for such taxable year under the school district income 23 tax surcharge, to the extent that such liability is attributable to such 24 substantial understatement. 25 (5) If a joint return has been made pursuant to this subsection for a 26 taxable year and only one spouse is liable for past-due support, or a 27 past-due legally enforceable debt, or an amount of a default in repay- 28 ment of a guaranteed student, state university or city university loan 29 of which the commissioner has been notified pursuant to section one 30 hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy- 31 one-e or one hundred seventy-one-f of the tax law, as the case may be, 32 then an overpayment and interest thereon shall be credited against such 33 past-due support, or a past-due legally enforceable debt, or such amount 34 of a default in repayment of a guaranteed student, state university or 35 city university loan, unless the spouse not liable for such past-due 36 support, or a past-due legally enforceable debt, or such amount of a 37 default in repayment of a guaranteed student, state university or city 38 university loan demands, on a declaration made in accordance with regu- 39 lations or instructions prescribed by the commissioner, that the portion 40 of the overpayment and interest attributable to such spouse not be cred- 41 ited against the past-due support, or a past-due legally enforceable 42 debt, or amount of a default in repayment of a guaranteed student, state 43 university or city university loan owed by the other spouse. Upon such 44 demand the commissioner shall determine the amount of the overpayment 45 attributable to each spouse in accordance with regulations prescribed by 46 the commissioner and credit only that portion of the overpayment and 47 interest thereon attributable to the spouse liable for past-due support, 48 or a past-due legally enforceable debt, or amount of a default in repay- 49 ment of a guaranteed student, state university or city university loan 50 against such past-due support, or a past-due legally enforceable debt, 51 or such amount of a default in repayment of a guaranteed student, state 52 university or city university loan. 53 (c) Decedents. The return for any deceased individual shall be made 54 and filed by his or her executor, administrator, or other person charged 55 with his or her property. If a final return of a decedent is for a frac- 56 tional part of a year, the due date of such return shall be theA. 10136 17 1 fifteenth day of the fourth month following the close of the twelve- 2 month period which began with the first day of such fractional part of 3 the year. 4 (d) Individuals under a disability. The return for an individual who 5 is unable to make a return by reason of minority or other disability 6 shall be made and filed by his or her guardian, committee, fiduciary or 7 other person charged with the care of his or her person or property 8 (other than a receiver in possession of only a part of his or her prop- 9 erty), or by his or her duly authorized agent. 10 (e) Estates and trusts. The return for an estate or trust shall be 11 made and filed by the fiduciary. 12 (f) Joint fiduciaries. If two or more fiduciaries are acting jointly, 13 the return may be made by any one of them. 14 § 6. Requirement of withholding tax from wages. The school district 15 income tax surcharge shall be withheld from the wages of school district 16 residents in the same manner and subject to the same requirements, to 17 the greatest extent possible, as provided in sections six hundred seven- 18 ty-one through six hundred seventy-eight of the tax law except that the 19 term "aggregate amount" contained in paragraphs one, two and three of 20 subsection (a) of section six hundred seventy-four of the tax law shall 21 mean the aggregate of the amounts required to be deducted and withheld 22 of the New York state personal income tax, the city income and earnings 23 taxes authorized pursuant to articles thirty, thirty-A and thirty-B of 24 the tax law, and the school district income tax surcharge. 25 § 7. Credit for tax withheld. The school district income tax surcharge 26 withheld shall not reduce net state tax for purposes of computing the 27 school district income tax surcharge, but any amount of tax actually 28 deducted and withheld under this model surcharge in any calendar year 29 shall be deemed to have been paid to the department of taxation and 30 finance on behalf of the person from whom withheld, and such person 31 shall be credited with having paid the amount of tax for the taxable 32 year beginning in such calendar year. For a taxable year of less than 33 twelve months, the credit shall be made under regulations of the commis- 34 sioner. 35 § 8. Enforcement with other taxes. (a) Joint assessment. If there is 36 assessed a tax under the school district income tax surcharge and there 37 is also assessed a tax against the same taxpayer pursuant to article 38 twenty-two of the tax law or under a local law enacted pursuant to the 39 authority of article thirty, thirty-A or thirty-B of the tax law and 40 payment of a single amount is required under the provisions of this 41 model surcharge, payment shall be deemed to have been made with respect 42 to the taxes so assessed in proportion to the amounts of such taxes due, 43 including tax, penalties, interest and additions to tax. 44 (b) Joint action. If the commissioner takes action under such article 45 twenty-two or under a local law enacted pursuant to the authority of 46 article thirty, thirty-A or thirty-B of the tax law with respect to the 47 enforcement and collection of the tax or taxes assessed under such arti- 48 cles the commissioner shall, wherever possible, accompany such action 49 with a similar action under similar enforcement and collection 50 provisions of the school district income tax surcharge. 51 (c) Apportionment of moneys collected by joint action. Any moneys 52 collected as a result of such joint action shall be deemed to have been 53 collected in proportion to the amounts due, including tax, penalties, 54 interest and additions to tax, under article twenty-two of the tax law 55 or under a local law enacted pursuant to the authority of article thir-A. 10136 18 1 ty, thirty-A, or thirty-B of the tax law and the school district income 2 tax surcharge. 3 (d) Joint deficiency action. Whenever the commissioner takes any 4 action with respect to a deficiency of income tax under article twenty- 5 two of this chapter or under a local law enacted pursuant to the author- 6 ity of article thirty, thirty-A or thirty-B of the tax law, other than 7 the action set forth in subsection (a) of this section, the commissioner 8 may in his or her discretion accompany such action with a similar action 9 under the school district income tax surcharge. 10 § 9. Administration, collection and review. (a) General. Except as 11 otherwise provided in this article, the school district income tax 12 surcharge shall be administered and collected by the commissioner in the 13 same manner as the tax imposed by article twenty-two of the tax law is 14 administered and collected by the commissioner. All of the provisions of 15 article twenty-two of the tax law relating to or applicable to payment 16 of estimated tax, returns, payment of tax, withholding of tax from 17 wages, employer's statements and returns, employer's liability for taxes 18 required to be withheld and all other provisions of article twenty-two 19 relating to or applicable to the administration, collection, liability 20 for and review of the tax imposed by article twenty-two, including 21 sections six hundred fifty-two and six hundred fifty-three, sections six 22 hundred fifty-seven through six hundred fifty-nine, section six hundred 23 sixty-one, sections six hundred seventy-one and six hundred seventy-two, 24 sections six hundred seventy-four through six hundred seventy-eight and 25 sections six hundred eighty-one through six hundred ninety-seven of the 26 tax law, inclusive, shall apply to the school district income tax 27 surcharge with the same force and effect as if those provisions had been 28 incorporated in full into this model surcharge, and had expressly 29 referred to the school district income tax surcharge, except where any 30 such provision is either inconsistent with a provision of this model 31 surcharge or is not relevant to this model surcharge. Whenever there is 32 joint collection of state personal income tax, city personal income or 33 earnings taxes or school district income tax surcharge, it shall be 34 deemed that such collection shall represent proportionately the applica- 35 ble state personal income tax, city personal income or earnings tax or 36 school district income tax surcharge in determining the amount to be 37 remitted to the school district. 38 (b) Payment to designated depositories. The commissioner, in his or 39 her discretion, may require or permit any or all persons liable for any 40 school district income tax surcharge imposed under this model surcharge 41 to make payments on account of estimated school district income tax 42 surcharge and payment of any school district income tax surcharge, 43 penalty or interest to such banks, banking houses or trust companies 44 designated by the commissioner and to file returns with such banks, 45 banking houses or trust companies, as agent of the commissioner, in lieu 46 of paying a school district income tax surcharge imposed under this 47 model surcharge directly to the commission. However, the commissioner 48 shall designate only such banks, banking houses or trust companies which 49 are designated by the comptroller as depositories of the state. 50 (c) Combined filings. Notwithstanding any other provisions of this 51 article, the commissioner may require: 52 (1) the filing of any or all of the following: 53 (A) a combined return which, in addition to the return provided for in 54 section five hereof, may also include any of the returns required pursu- 55 ant to the provisions of section six hundred fifty-one of the tax law to 56 be filed by an individual, estate or trust who or which is a resident ofA. 10136 19 1 New York state, and which may be required to be filed by such individ- 2 ual, estate or trust pursuant to any local law enacted pursuant to the 3 authority of article thirty, thirty-A or thirty-B of the tax law, and 4 (B) a combined employer's return which, in addition to the employer's 5 return provided for by this model surcharge, may also include any of the 6 employer's returns required to be filed by the same employer pursuant to 7 the provisions of section six hundred seventy-four of the tax law and 8 required to be filed by such employer pursuant to any local law enacted 9 under the authority of article thirty, thirty-A or thirty-B of the tax 10 law. 11 (2) Where a combined return or employer's return is required, and with 12 respect to the payment of estimated tax, the commissioner may also 13 require the payment of a single amount which shall equal the total of 14 the amounts (total taxes less any credits or refunds) which would have 15 been required to be paid with the returns or employer's returns or in 16 payment of estimated tax pursuant to the provisions of article twenty- 17 two of the tax law and this model surcharge and the provisions of local 18 laws enacted under the authority of article thirty, thirty-A or thirty-B 19 of the tax law. 20 § 1364. Deposit and disposition of revenues. (a) Deposit of revenues. 21 All revenue collected by the commissioner from the tax imposed by any 22 school district pursuant to the authority of this article shall be 23 deposited daily with such responsible banks, banking houses or trust 24 companies, as may be designated by the state comptroller, to the credit 25 of the comptroller, in trust for such school district. Such deposits 26 shall be kept in trust and separate and apart from all other moneys in 27 the possession of the comptroller. The comptroller shall require 28 adequate security from all such depositories of such revenue collected 29 by the commissioner. 30 (b) Reserves. The comptroller shall retain a reserve for refunds in 31 such amount as the commissioner may determine to be necessary for 32 refunds in respect to such tax and a reserve for reasonable costs of the 33 commissioner in administering, collecting and distributing such tax. 34 (1) From the reserve for refunds the comptroller shall pay any refunds 35 of such tax to which a taxpayer shall be entitled under any surcharge 36 enacted by a school district pursuant to the authority of this article, 37 except that 38 (A) the comptroller shall pay to the state department of social 39 services that amount of overpayment of such tax and the interest on such 40 amount which is certified to him or her by the commissioner as the 41 amount to be credited against past-due support pursuant to subdivision 42 six of section one hundred seventy-one-c of this chapter, 43 (B) the comptroller shall pay to the New York state higher education 44 services corporation that amount of overpayment of such tax and the 45 interest on such amount which is certified to him or her by the commis- 46 sioner as the amount to be credited against the amount of defaults in 47 repayment of guaranteed student loans pursuant to subdivision five of 48 section one hundred seventy-one-d of this chapter, 49 (C) the comptroller shall pay to the state university of New York or 50 the city university of New York respectively that amount of overpayment 51 of such tax and the interest on such amount which is certified to him or 52 her by the commissioner as the amount to be credited against the amount 53 of defaults in repayment of state or city university loans pursuant to 54 subdivision six of section one hundred seventy-one-e of this chapter, 55 (D) notwithstanding any other provision of law, the comptroller shall 56 credit to the revenue arrearage account, pursuant to sectionA. 10136 20 1 ninety-one-a of the state finance law, that amount of overpayment of 2 such tax and the interest on such amount which is certified to him or 3 her by the commissioner as the amount to be credited against a past-due 4 legally enforceable debt owed to a state agency pursuant to subdivision 5 six of section one hundred seventy-one-f of this chapter, and 6 (E) the comptroller shall pay to a non-obligated spouse that amount of 7 overpayment of such tax and the interest on such amount which has been 8 credited pursuant to section one hundred seventy-one-c, one hundred 9 seventy-one-d, one hundred seventy-one-e or one hundred seventy-one-f of 10 this chapter and which is certified to him or her by the commissioner as 11 the amount due such non-obligated spouse pursuant to paragraph six of 12 subsection (b) of section six hundred fifty-one of this chapter, and the 13 comptroller shall deduct a like amount which he or she shall pay into 14 the treasury to the credit of the general fund from amounts subsequently 15 payable to the department of family assistance, the state university of 16 New York, the city university of New York, the higher education services 17 corporation or to the revenue arrearage account pursuant to section 18 ninety-one-a of the state finance law, as the case may be, whichever had 19 been credited the amount originally withheld from such overpayment. 20 (2) The amount reserved for administering, collecting and distributing 21 such tax shall be paid by the comptroller on or before the fifteenth day 22 of each month into the general fund of the state treasury to the credit 23 of the state purposes account therein. 24 § 13. Subdivision (e) of section 1800 of the tax law, as added by 25 chapter 65 of the laws of 1985, is amended to read as follows: 26 (e) As used in this article, the term "related income or earnings tax 27 statute" means any law, ordinance or resolution imposed pursuant to the 28 authority of article thirty, [thirty-a or thirty-b] thirty-A, thirty-B 29 or thirty-C of this chapter [or article two-E of the general city law,30while such article two-E shall remain in full force and effect]. 31 § 14. Subdivision (c) of section 3008 of the tax law, as added by 32 chapter 770 of the laws of 1992, is amended to read as follows: 33 (c) Assessments attributable to certain mathematical errors by the 34 department. In the case of an assessment of any tax imposed by or pursu- 35 ant to the authority of article twenty-two, thirty, thirty-A [or], thir- 36 ty-B or thirty-C of this chapter [or article two-E of the general city37law] attributable in whole or in part to a mathematical error described 38 in subparagraph (A) of paragraph two of subsection (g) of section 39 sixty-two hundred thirteen of the federal internal revenue code, if the 40 return was prepared by an officer or employee of the department acting 41 in his or her official capacity to provide assistance to taxpayers in 42 the preparation of income tax returns, the commissioner is authorized to 43 abate the assessment of all or any part of any interest on such defi- 44 ciency for any period ending on or before the tenth day following the 45 date of notice and demand by the commissioner for payment of the defi- 46 ciency. 47 § 15. Section 171 of the tax law is amended by adding a new subdivi- 48 sion twenty-ninth to read as follows: 49 Twenty-ninth. Develop guidelines and provide technical assistance to a 50 study commission of a school district formed pursuant to section fifteen 51 hundred one-d of the education law in order to implement the provisions 52 of article thirty-C of this chapter and section thirteen hundred seven 53 of the real property tax law. 54 § 16. The state education department and the department of taxation 55 and finance are hereby directed to conduct a joint study on whether this 56 act has provided school districts with greater flexibility to financeA. 10136 21 1 public education and afforded relief to residential property taxpayers, 2 and report jointly to the governor and the legislature together with any 3 recommendations for change to meet these purposes. Said study shall not 4 commence until this act has been in effect for five years upon which the 5 aforementioned agencies shall file a joint written report to the gover- 6 nor and the legislature by no later than the sixth year after this act 7 takes effect. 8 § 17. This act shall take effect immediately; provided that the amend- 9 ments to subdivision 1 of section 171-a of the tax law made by section 10 six of this act shall be subject to the expiration and reversion of such 11 subdivision pursuant to section 12 of chapter 90 of the laws of 2014, as 12 amended, when upon such date the provisions of section six-a of this act 13 shall take effect. 14 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 15 sion, section or part of this act shall be adjudged by any court of 16 competent jurisdiction to be invalid, such judgment shall not affect, 17 impair, or invalidate the remainder thereof, but shall be confined in 18 its operation to the clause, sentence, paragraph, subdivision, section 19 or part thereof directly involved in the controversy in which such judg- 20 ment shall have been rendered. It is hereby declared to be the intent of 21 the legislature that this act would have been enacted even if such 22 invalid provisions had not been included herein. 23 § 4. This act shall take effect immediately provided, however, that 24 the applicable effective dates of Parts A and B of this act shall be as 25 specifically set forth in the last section of such Parts.
