Bill Text: NY S02509 | 2021-2022 | 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 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Passed) 2021-04-19 - SIGNED CHAP.59 [S02509 Detail]
Download: New_York-2021-S02509-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Passed) 2021-04-19 - SIGNED CHAP.59 [S02509 Detail]
Download: New_York-2021-S02509-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2509--B IN SENATE January 20, 2021 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to extending the top state income tax rate (Part A); intentionally omitted (Part B); to amend the tax law, in relation to the imposition of a pass-through business tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to the taxation of certain corporations classed as a taxicab or omnibus (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); intentionally omitted (Part G); intentionally omitted (Part H); Intentionally Omitted (Part I); to amend the tax law, to impose sales tax on such admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivi- sion 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); intentionally omitted (Part K); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating ther- eto (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting gran- tors from passing real estate transfer tax to grantees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail deal- ers whose registrations have been revoked or who have been forbidden from selling cigarettes or tobacco products (Part P); to amend the tax EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-04-1S. 2509--B 2 law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); intentionally omitted (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); intentionally omitted (Subpart A); intentionally omitted (Subpart B); intentionally omitted (Subpart C); intentionally omitted (Subpart D); and to amend the real property law, the real property tax law and the tax law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of the real property law relating thereto (Subpart E)(Part V); to amend the real property tax law, in relation to facilitating the administration of the real prop- erty tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to the regulation of sports betting and authorizing mobile sports wagering; and providing for the repeal of certain provisions of such law relating thereto (Part Y); intentionally omitted (Part Z); to amend the tax law, in relation to a keno style lottery game (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wager- ing and breeding law, in relation to the office of the gaming inspec- tor general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and to amend 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 DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alterna- tive fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extend- ing the provisions of such credit through tax year 2024 (Part FF); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effectiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an additional two years (Part II); to amend chapterS. 2509--B 3 61 of the laws of 2011 amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and provid- ing tax benefits under that program and to amend the economic develop- ment law, in relation to extending the tax credits under the economic transformation and facility redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choice program by a certain date (Part KK); in relation to temporarily suspending certain racing support payments (Part LL); to amend the racing, pari-mutuel wagering and breeding law, in relation to converting video lottery terminal facilities in Queens and Westchester counties to destination resort gaming facilities (Part MM); clarifying for certain tax credit programs that work performed remotely within the state due to the outbreak of novel coronavirus, COVID-19, qualifies for certain tax credit programs; and providing for the repeal of such provisions upon expiration thereof (Part NN); to amend the tax law, in relation to the amount of the business income base and capital base for the computation of tax (Part OO); to amend the tax law, in relation to imposing an additional tax on income from capital gain (Part PP); to amend the tax law and the administrative code of the city of New York, in relation to investment income (Part QQ); to amend the tax law, in relation to the computation of estate tax (Part RR); to amend the real property law and the uniform commer- cial code, in relation to requiring the recording of mezzanine debt and preferred equity investments; and to amend the tax law, in relation to including mezzanine debt in the mortgage recording tax (Part SS); to amend the tax law, in relation to filing fees for limit- ed liability companies and partnerships (Part TT); and to amend the tax law, in relation to the real property tax relief credit (Part UU) 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 2021-2022 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through UU. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 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 Section 1. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph 14 (B) of paragraph 1 of subsection (a) of section 601 of the tax law, 15 clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of 16 chapter 59 of the laws of 2019, and clause (viii) as added by section 1 17 of part R of chapter 59 of the laws of 2017, are amended to read as 18 follows: 19 (iv) For taxable years beginning in two thousand twenty-one the 20 following rates shall apply:S. 2509--B 4 1 If the New York taxable income is: The tax is: 2 Not over $17,150 4% of the New York taxable income 3 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 4 $17,150 5 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 6 $23,600 7 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 8 $27,900 9 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 10 $43,000 11 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 12 $161,550 13 Over $323,200 but not over $19,403 plus 6.85% of excess 14 $2,155,350 over $323,200 15 Over $2,155,350 $144,905 plus [8.82] 9.85% of 16 but not over $10,000,000 excess over $2,155,350 17 Over $10,000,000 but not over $917,603 plus 10.85% of 18 $50,000,000 excess over $10,000,000 19 Over $50,000,000 $5,257,603 plus 11.85% of 20 excess over $50,000,000 21 (v) For taxable years beginning in two thousand twenty-two the follow- 22 ing rates shall apply: 23 If the New York taxable income is: The tax is: 24 Not over $17,150 4% of the New York taxable income 25 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 26 $17,150 27 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 28 $23,600 29 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 30 $27,900 31 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 32 $161,550 33 Over $323,200 but not over $2,155,350 $19,124 plus 34 6.85% of excess over $323,200 35 Over $2,155,350 $144,626 plus [8.82] 9.85% of 36 but not over $10,000,000 excess over $2,155,350 37 Over $10,000,000 $917,324 plus 10.85% of 38 but not over $50,000,000 excess over $10,000,000 39 Over $50,000,000 $5,257,324 plus 11.85% of 40 excess over $50,000,000 41 (vi) For taxable years beginning in two thousand twenty-three the 42 following rates shall apply: 43 If the New York taxable income is: The tax is: 44 Not over $17,150 4% of the New York taxable income 45 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 46 $17,150 47 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 48 $23,600 49 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 50 $27,900 51 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 52 $161,550 53 Over $323,200 but not over $18,834 plus 6.85% of 54 $2,155,350 excess over $323,200 55 Over $2,155,350 $144,336 plus [8.82] 9.85% of 56 but not over $10,000,000 excess over $2,155,350S. 2509--B 5 1 Over $10,000,000 $917,034 plus 10.85% of excess 2 but not over $50,000,000 over $10,000,000 3 Over $50,000,000 $5,257,034 plus 11.85% of 4 excess over $50,000,000 5 (vii) For taxable years beginning in two thousand twenty-four the 6 following rates shall apply: 7 If the New York taxable income is: The tax is: 8 Not over $17,150 4% of the New York taxable 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 $161,550 $1,202 plus 5.61% of excess over 14 $27,900 15 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 16 $161,550 17 Over $323,200 but not over $18,544 plus 6.85% of 18 $2,155,350 excess over $323,200 19 Over $2,155,350 $144,047 plus [8.82] 9.85% of 20 but not over $10,000,000 excess over $2,155,350 21 Over $10,000,000 $916,745 plus 10.85% of 22 but not over $50,000,000 excess over $10,000,000 23 Over $50,000,000 $5,256,745 plus 11.85% of 24 excess over $50,000,000 25 (viii) For taxable years beginning after two thousand twenty-four the 26 following rates shall apply: 27 If the New York taxable income is: The tax is: 28 Not over $17,150 4% of the New York taxable income 29 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 30 $17,150 31 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 32 $23,600 33 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 34 $27,900 35 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 36 $161,550 37 Over $323,200 $18,252 plus 6.85% of excess over 38 but not over $2,155,350 $323,200 39 Over $2,155,350 $143,754 plus 9.85% of excess 40 but not over $10,000,000 over $2,155,350 41 Over $10,000,000 $916,745 plus 10.85% of 42 but not over $50,000,000 excess over $10,000,000 43 Over $50,000,000 $5,256,745 plus 11.85% of 44 excess over $50,000,000 45 § 2. Clauses (iv), (v), (vi), (vii), and (viii) of subparagraph (B) of 46 paragraph 1 of subsection (b) of section 601 of the tax law, clauses 47 (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 48 59 of the laws of 2019, and clause (viii) as added by section 2 of part 49 R of chapter 59 of the laws of 2017, are amended to read as follows: 50 (iv) For taxable years beginning in two thousand twenty-one the 51 following rates shall apply: 52 If the New York taxable income is: The tax is: 53 Not over $12,800 4% of the New York taxable income 54 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 55 $12,800 56 Over $17,650 but not over $20,900 $730 plus 5.25% of excess overS. 2509--B 6 1 $17,650 2 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 3 $20,900 4 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 5 $32,200 6 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 7 $107,650 8 Over $269,300 but not over $16,304 plus 6.85% of 9 $1,616,450 excess over $269,300 10 Over $1,616,450 $108,584 plus [8.82] 9.85% of 11 but not over $7,500,000 excess over $1,616,450 12 Over $7,500,000 $688,114 plus 10.85% of 13 but not over $37,500,000 excess over $7,500,000 14 Over $37,500,000 $3,943,114 plus 11.85% of 15 excess over $37,500,000 16 (v) For taxable years beginning in two thousand twenty-two the follow- 17 ing rates shall apply: 18 If the New York taxable income is: The tax is: 19 Not over $12,800 4% of the New York taxable income 20 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 21 $12,800 22 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 23 $17,650 24 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 25 $20,900 26 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 27 $107,650 28 Over $269,300 but not over $16,079 plus 6.85% of excess 29 $1,616,450 over $269,300 30 Over $1,616,450 $108,359 plus [8.82] 9.85% of 31 but not over $7,500,000 excess over $1,616,450 32 Over $7,500,000 $687,889 plus 10.85% of 33 but not over $37,500,000 excess over $7,500,000 34 Over $37,500,000 $3,942,889 plus 11.85% of 35 excess over $37,500,000 36 (vi) For taxable years beginning in two thousand twenty-three the 37 following rates shall apply: 38 If the New York taxable income is: The tax is: 39 Not over $12,800 4% of the New York taxable income 40 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 41 $12,800 42 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 43 $17,650 44 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 45 $20,900 46 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 47 $107,650 48 Over $269,300 but not over $15,845 plus 6.85% of excess 49 $1,616,450 over $269,300 50 Over $1,616,450 $108,125 plus [8.82] 9.85% of 51 but not over $7,500,000 excess over $1,616,450 52 Over $7,500,000 $687,655 plus 10.85% of 53 but not over $37,500,000 excess over $7,500,000 54 Over $37,500,000 $3,942,655 plus 11.85% of 55 excess over $37,500,000S. 2509--B 7 1 (vii) For taxable years beginning in two thousand twenty-four the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $12,800 4% of the New York taxable income 5 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 6 $12,800 7 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 8 $17,650 9 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 10 $20,900 11 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 12 $107,650 13 Over $269,300 but not over $15,612 plus 6.85% of excess 14 $1,616,450 over $269,300 15 Over $1,616,450 $107,892 plus [8.82] 9.85% of 16 but not over $7,500,000 excess over $1,616,450 17 Over $7,500,000 $687,421 plus 10.85% of 18 but not over $37,500,000 excess over $7,500,000 19 Over $37,500,000 $3,942,421 plus 11.85% of 20 excess over $37,500,000 21 (viii) For taxable years beginning after two thousand twenty-four the 22 following 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 26 $12,800 27 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 28 $17,650 29 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 30 $20,900 31 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 32 $107,650 33 Over $269,300 $15,371 plus 6.85% of 34 but not over $1,616,450 excess over $269,300 35 Over $1,616,450 $107,651 plus 9.85% of excess 36 but not over $7,500,000 over $1,616,450 37 Over $7,500,000 $687,180 plus 10.85% of 38 but not over $37,500,000 excess over $7,500,000 39 Over $37,500,000 $3,942,180 plus 11.85% of 40 excess over $37,500,000 41 § 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of 42 paragraph 1 of subsection (c) of section 601 of the tax law, clauses 43 (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 44 59 of the laws of 2019, and clause (viii) as added by section 3 of part 45 R of chapter 59 of the laws of 2017, are amended to read as follows: 46 (iv) For taxable years beginning in two thousand twenty-one the 47 following rates shall apply: 48 If the New York taxable income is: The tax is: 49 Not over $8,500 4% of the New York taxable income 50 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 51 $8,500 52 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 53 $11,700 54 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 55 $13,900 56 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess overS. 2509--B 8 1 $21,400 2 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 3 $80,650 4 Over $215,400 but not over $13,109 plus 6.85% of excess 5 $1,077,550 over $215,400 6 Over $1,077,550 $72,166 plus [8.82] 9.85% of 7 but not over $5,000,000 excess over $1,077,550 8 Over $5,000,000 $458,527 plus 10.85% of 9 but not over $25,000,000; excess over $5,000,000 10 Over $25,000,000 $2,628,527 plus 11.85% of excess 11 over $25,000,000 12 (v) For taxable years beginning in two thousand twenty-two the follow- 13 ing rates shall apply: 14 If the New York taxable income is: The tax is: 15 Not over $8,500 4% of the New York taxable income 16 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 17 $8,500 18 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 19 $11,700 20 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 21 $13,900 22 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 23 $80,650 24 Over $215,400 but not over $12,926 plus 6.85% of excess 25 $1,077,550 over $215,400 26 Over $1,077,550 $71,984 plus [8.82] 9.85% of 27 but not over $5,000,000 excess over $1,077,550 28 Over $5,000,000 $458,345 plus 10.85% of 29 but not over $25,000,000 excess over $5,000,000 30 Over $25,000,000 $2,628,345 plus 11.85% of 31 excess over $25,000,000 32 (vi) For taxable years beginning in two thousand twenty-three the 33 following 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 $80,650 $600 plus 5.73% of excess over 41 $13,900 42 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 43 $80,650 44 Over $215,400 but not over $12,738 plus 6.85% of excess 45 $1,077,550 over $215,400 46 Over $1,077,550 $71,796 plus [8.82] 9.85% of 47 but not over $5,000,000 excess over $1,077,550 48 Over $5,000,000 $458,158 plus 10.85% of excess 49 but not over $25,000,000 over $5,000,000 50 Over $25,000,000 $2,628,158 plus 11.85% of 51 excess over $25,000,000 52 (vii) For taxable years beginning in two thousand twenty-four the 53 following rates shall apply: 54 If the New York taxable income is: The tax is: 55 Not over $8,500 4% of the New York taxable income 56 Over $8,500 but not over $11,700 $340 plus 4.5% of excess overS. 2509--B 9 1 $8,500 2 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 3 $11,700 4 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 5 $13,900 6 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 7 $80,650 8 Over $215,400 but not over $12,550 plus 6.85% of excess 9 $1,077,550 over $215,400 10 Over $1,077,550 $71,608 plus [8.82] 9.85% of 11 but not over $5,000,000 excess over $1,077,550 12 Over $5,000,000 $457,970 plus 10.85% of 13 but not over $25,000,000 excess over $5,000,000 14 Over $25,000,000 $2,627,970 plus 11.85% of 15 excess over $25,000,000 16 (viii) For taxable years beginning after two thousand twenty-four the 17 following rates shall apply: 18 If the New York taxable income is: The tax is: 19 Not over $8,500 4% of the New York taxable income 20 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 21 $8,500 22 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 23 $11,700 24 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 25 $13,900 26 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 27 $80,650 28 Over $215,400 $12,356 plus 6.85% of excess over 29 but not over $1,077,550 $215,400 30 Over $1,077,550 $71,413 plus 9.85% of excess 31 but not over $5,000,000 over $1,077,550 32 Over $5,000,000 $457,775 plus 10.85% of 33 but not over $25,000,000 excess over $5,000,000 34 Over $25,000,000 $2,627,775 plus 11.85% of 35 excess over $25,000,000 36 § 4. Section 601 of the tax law is amended by adding a new subsection 37 (d-2) to read as follows: 38 (d-2) Alternative tax table benefit recapture. Notwithstanding the 39 provisions of subsection (d) of this section, for taxable years begin- 40 ning on or after two thousand twenty-one, there is hereby imposed a 41 supplemental tax in addition to the tax imposed under subsections (a), 42 (b) and (c) of this section for the purpose of recapturing the benefit 43 of the tax tables contained in such subsections. During these taxable 44 years, any reference in this chapter to subsection (d) of this section 45 shall be read as a reference to this subsection. 46 (1) For resident married individuals filing joint returns and resident 47 surviving spouses, the supplemental tax shall be an amount equal to the 48 sum of the tax table benefits described in subparagraphs (A), (B), (C) 49 D), (E), and (F) of this paragraph multiplied by their respective frac- 50 tions in such subparagraphs. Furthermore, in making the calculations 51 described in these subparagraphs in taxable years beginning after tax 52 year two thousand seventeen, the applicable tax rates specified in 53 subparagraph (B) of paragraph one of subsection (a) of this section 54 shall be substituted for the rates referenced in these subparagraphs. 55 (A) The tax table benefit is the difference between (i) the amount of 56 taxable income set forth in the tax table in paragraph one of subsectionS. 2509--B 10 1 (a) of this section not subject to the 6.45 percent rate of tax for the 2 taxable year multiplied by such rate and (ii) the dollar denominated tax 3 for such amount of taxable income set forth in the tax table applicable 4 to the taxable year in paragraph one of subsection (a) of this section. 5 The fraction for this subparagraph is computed as follows: the numerator 6 is the lesser of fifty thousand dollars or the excess of New York 7 adjusted gross income for the taxable year over one hundred thousand 8 dollars and the denominator is fifty thousand dollars. 9 (B) The tax table benefit is the difference between (i) the amount of 10 taxable income set forth in the tax table in paragraph one of subsection 11 (a) of this section not subject to the 6.65 percent rate of tax for the 12 taxable year multiplied by such rate and (ii) the dollar denominated tax 13 for such amount of taxable income set forth in the tax table applicable 14 to the taxable year in paragraph one of subsection (a) of this section 15 less the tax table benefit in subparagraph (A) of this paragraph. The 16 fraction for this subparagraph is computed as follows: the numerator is 17 the lesser of fifty thousand dollars or the excess of New York adjusted 18 gross income for the taxable year over one hundred fifty thousand 19 dollars and the denominator is fifty thousand dollars. Provided, howev- 20 er, this subparagraph shall not apply to taxpayers who are not subject 21 to the 6.65 percent tax rate. 22 (C) The tax table benefit is the difference between (i) the amount of 23 taxable income set forth in the tax table in paragraph one of subsection 24 (a) of this section not subject to the 6.85 percent rate of tax for the 25 taxable year multiplied by such rate and (ii) the dollar denominated tax 26 for such amount of taxable income set forth in the tax table applicable 27 to the taxable year in paragraph one of subsection (a) of this section 28 less the sum of the tax table benefit in subparagraphs (A) and (B) of 29 this paragraph. The fraction for this subparagraph is computed as 30 follows: the numerator is the lesser of fifty thousand dollars or the 31 excess of New York adjusted gross income for the taxable year over three 32 hundred thousand dollars and the denominator is fifty thousand dollars. 33 Provided, however, this subparagraph shall not apply to taxpayers who 34 are not subject to the 6.85 percent tax rate. 35 (D) The tax table benefit is the difference between (i) the amount of 36 taxable income set forth in the tax table in paragraph one of subsection 37 (a) of this section not subject to the 9.85 percent rate of tax for the 38 taxable year multiplied by such rate and (ii) the dollar denominated tax 39 for such amount of taxable income set forth in the tax table applicable 40 to the taxable year in paragraph one of subsection (a) of this section 41 less the sum of the tax benefits in subparagraphs (A), (B), and (C) of 42 this paragraph. The fraction for this subparagraph is computed as 43 follows: the numerator is the lesser of fifty thousand dollars or the 44 excess of New York adjusted gross income for the taxable year over two 45 million dollars and the denominator is fifty thousand dollars. This 46 subparagraph shall apply only to taxable years beginning on or after 47 January first, two thousand twenty-one. 48 (E) The tax table benefit is the difference between (i) the amount of 49 taxable income set forth in the tax table in paragraph one of subsection 50 (a) of this section not subject to the 10.85 percent rate of tax for the 51 taxable year multiplied by such rate and (ii) the dollar denominated tax 52 for such amount of taxable income set forth in the tax table applicable 53 to the taxable year in paragraph one of subsection (a) of this section 54 less the sum of the tax benefits in subparagraphs (A), (B), (C), and (D) 55 of this paragraph. The fraction for this subparagraph is computed as 56 follows: the numerator is the lesser of fifty thousand dollars or theS. 2509--B 11 1 excess of New York adjusted gross income for the taxable year over ten 2 million dollars and the denominator is fifty thousand dollars. This 3 subparagraph shall apply only to taxable years beginning on or after 4 January first, two thousand twenty-one. 5 (F) The tax table benefit is the difference between (i) the amount of 6 taxable income set forth in the tax table in paragraph one of subsection 7 (a) of this section not subject to the 11.85 percent rate of tax for the 8 taxable year multiplied by such rate and (ii) the dollar denominated tax 9 for such amount of taxable income set forth in the tax table applicable 10 to the taxable year in paragraph one of subsection (a) of this section 11 less the sum of the tax table benefits in subparagraphs (A), (B), (C), 12 (D), and (E) of this paragraph. The fraction for this subparagraph is 13 computed as follows: the numerator is the lesser of fifty thousand 14 dollars or the excess of New York adjusted gross income for the taxable 15 year over fifty million dollars and the denominator is fifty thousand 16 dollars. This subparagraph shall apply to taxable years beginning on or 17 after January first, two thousand twenty-one. 18 (G) Provided, however, the total tax prior to the application of any 19 tax credits shall not exceed the highest rate of tax set forth in the 20 tax tables in subsection (a) of this section multiplied by the taxpay- 21 er's taxable income. 22 (2) For resident heads of households, the supplemental tax shall be an 23 amount equal to the sum of the tax table benefits described in subpara- 24 graphs (A), (B), (C), (D), and (E) of this paragraph multiplied by their 25 respective fractions in such subparagraphs. Furthermore, in making the 26 calculations described in these subparagraphs in taxable years beginning 27 after tax year two thousand seventeen, the applicable tax rates speci- 28 fied in subparagraph (B) of paragraph one of subsection (b) of this 29 section shall be substituted for the rates referenced in these subpara- 30 graphs. 31 (A) The tax table benefit is the difference between (i) the amount of 32 taxable income set forth in the tax table in paragraph one of subsection 33 (b) of this section not subject to the 6.65 percent rate of tax for the 34 taxable year multiplied by such rate and (ii) the dollar denominated tax 35 for such amount of taxable income set forth in the tax table applicable 36 to the taxable year in paragraph one of subsection (b) of this section. 37 The fraction for this subparagraph is computed as follows: the numerator 38 is the lesser of fifty thousand dollars or the excess of New York 39 adjusted gross income for the taxable year over one hundred thousand 40 dollars and the denominator is fifty thousand dollars. 41 (B) 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 (b) of this section not subject to the 6.85 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 (b) of this section 47 less the tax table benefit in subparagraph (A) of this paragraph. The 48 fraction for this subparagraph is computed as follows: the numerator is 49 the lesser of fifty thousand dollars or the excess of New York adjusted 50 gross income for the taxable year over two hundred fifty thousand 51 dollars and the denominator is fifty thousand dollars. Provided, howev- 52 er, this subparagraph shall not apply to taxpayers who are not subject 53 to the 6.85 percent tax rate. 54 (C) 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 (b) of this section not subject to the 9.85 percent rate of tax for theS. 2509--B 12 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 (b) of this section 4 less the sum of the tax benefits in subparagraphs (A) and (B) of this 5 paragraph. The fraction for this subparagraph is computed as follows: 6 the numerator is the lesser of fifty thousand dollars or the excess of 7 New York adjusted gross income for the taxable year over one million 8 five hundred thousand dollars and the denominator is fifty thousand 9 dollars. This subparagraph shall apply only to taxable years beginning 10 on or after January first, two thousand twenty-one. 11 (D) 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 (b) of this section not subject to the 10.85 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 (b) of this section 17 less the sum of the tax benefits in subparagraphs (A), (B), and (C) of 18 this paragraph. The fraction for this subparagraph is computed as 19 follows: the numerator is the lesser of fifty thousand dollars or the 20 excess of New York adjusted gross income for the taxable year over seven 21 million five hundred thousand dollars and the denominator is fifty thou- 22 sand dollars. This subparagraph shall apply only to taxable years begin- 23 ning on or after January first, two thousand twenty-one. 24 (E) The tax table benefit is the difference between (i) the amount of 25 taxable income set forth in the tax table in paragraph one of subsection 26 (b) of this section not subject to the 11.85 percent rate of tax for the 27 taxable year multiplied by such rate and (ii) the dollar denominated tax 28 for such amount of taxable income set forth in the tax table applicable 29 to the taxable year in paragraph one of subsection (b) of this section 30 less the sum of the tax table benefits in subparagraphs (A), (B), (C), 31 and (D) of this paragraph. The fraction for this subparagraph is 32 computed as follows: the numerator is the lesser of fifty thousand 33 dollars or the excess of New York adjusted gross income for the taxable 34 year over thirty-seven million five hundred thousand dollars and the 35 denominator is fifty thousand dollars. This subparagraph shall apply to 36 taxable years beginning on or after January first, two thousand twenty- 37 one. 38 (F) Provided, however, the total tax prior to the application of any 39 tax credits shall not exceed the highest rate of tax set forth in the 40 tax tables in subsection (b) of this section multiplied by the taxpay- 41 er's taxable income. 42 (3) For resident unmarried individuals, resident married individuals 43 filing separate returns and resident estates and trusts, the supple- 44 mental tax shall be an amount equal to the sum of the tax table benefits 45 described in subparagraphs (A), (B), (C), (D), and (E) of this paragraph 46 multiplied by their respective fractions in such subparagraphs. Further- 47 more, in making the calculations described in these subparagraphs in 48 taxable years beginning after tax year two thousand seventeen, the 49 applicable tax rates specified in subparagraph (B) of paragraph one of 50 subsection (c) of this section shall be substituted for the rates 51 referenced in these subparagraphs. 52 (A) The tax table benefit is the difference between (i) the amount of 53 taxable income set forth in the tax table in paragraph one of subsection 54 (c) of this section not subject to the 6.65 percent rate of tax for the 55 taxable year multiplied by such rate and (ii) the dollar denominated tax 56 for such amount of taxable income set forth in the tax table applicableS. 2509--B 13 1 to the taxable year in paragraph one of subsection (c) of this section. 2 The fraction is computed as follows: the numerator is the lesser of 3 fifty thousand dollars or the excess of New York adjusted gross income 4 for the taxable year over one hundred thousand dollars and the denomina- 5 tor is fifty thousand dollars. 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 (c) of this section not subject to the 6.85 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 (c) of this section 12 less the tax table benefit in subparagraph (A) of this paragraph. The 13 fraction for this subparagraph is computed as follows: the numerator is 14 the lesser of fifty thousand dollars or the excess of New York adjusted 15 gross income for the taxable year over two hundred thousand dollars and 16 the denominator is fifty thousand dollars. Provided, however, this 17 subparagraph shall not apply to taxpayers who are not subject to the 18 6.85 percent tax rate. 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 (c) of this section not subject to the 9.85 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 (c) of this section 25 less the sum of the tax benefits in subparagraphs (A) and (B) of this 26 paragraph. The fraction for this subparagraph is computed as follows: 27 the numerator is the lesser of fifty thousand dollars or the excess of 28 New York adjusted gross income for the taxable year over one million 29 dollars and the denominator is fifty thousand dollars. This subparagraph 30 shall apply only to taxable years beginning on or after January first, 31 two thousand twenty-one. 32 (D) The tax table benefit is the difference between (i) the amount of 33 taxable income set forth in the tax table in paragraph one of subsection 34 (c) of this section not subject to the 10.85 percent rate of tax for the 35 taxable year multiplied by such rate and (ii) the dollar denominated tax 36 for such amount of taxable income set forth in the tax table applicable 37 to the taxable year in paragraph one of subsection (c) of this section 38 less the sum of the tax benefits in subparagraphs (A), (B), and (C) of 39 this paragraph. The fraction for this subparagraph is computed as 40 follows: the numerator is the lesser of fifty thousand dollars or the 41 excess of New York adjusted gross income for the taxable year over five 42 million dollars and the denominator is fifty thousand dollars. This 43 subparagraph shall apply only to taxable years beginning on or after 44 January first, two thousand twenty-one. 45 (E) The tax table benefit is the difference between (i) the amount of 46 taxable income set forth in the tax table in paragraph one of subsection 47 (c) of this section not subject to the 11.85 percent rate of tax for 48 the taxable year multiplied by such rate and (ii) the dollar denominated 49 tax for such amount of taxable income set forth in the tax table appli- 50 cable to the taxable year in paragraph one of subsection (c) of this 51 section less the sum of the tax table benefits in subparagraphs (A), 52 (B), (C), and (D) of this paragraph. The fraction for this subparagraph 53 is computed as follows: the numerator is the lesser of fifty thousand 54 dollars or the excess of New York adjusted gross income for the taxable 55 year over twenty-five million dollars and the denominator is fiftyS. 2509--B 14 1 thousand dollars. This subparagraph shall apply to taxable years begin- 2 ning on or after January first, two thousand twenty-one. 3 (F) Provided, however, the total tax prior to the application of any 4 tax credits shall not exceed the highest rate of tax set forth in the 5 tax tables in subsection (c) of this section multiplied by the taxpay- 6 er's taxable income. 7 § 5. This act shall take effect immediately and shall be deemed to 8 have been in full force and effect on and after January 1, 2021 and 9 shall apply to taxable years on and after such date. 10 PART B 11 Intentionally Omitted 12 PART C 13 Section 1. The tax law is amended by adding a new article 24-A to read 14 as follows: 15 ARTICLE 24-A 16 PASS-THROUGH BUSINESS TAX 17 Section 860. Definitions. 18 861. Imposition and rate of tax. 19 862. Credits. 20 863. Payment of estimated tax. 21 864. Filing of return and payment of tax. 22 865. Accounting periods and methods. 23 866. Procedural provisions. 24 § 860. Definitions. For purposes of this article: 25 (a) Affected partnership. Affected partnership means any partnership 26 that has elected pursuant to subsection (b) of section eight hundred 27 sixty-one of this article to be subject to the tax imposed by this arti- 28 cle. 29 (b) Affected S corporation. Affected S corporation means any New York 30 S corporation that has elected pursuant to subsection (b) of section 31 eight hundred sixty-one of this article to be subject to the tax imposed 32 by this article. 33 (c) Affected pass-through entity. Affected pass-through entity means 34 any affected partnership or any affected S corporation. 35 (d) Lower-tier affected pass-through entity. A lower-tier affected 36 pass-through entity means any affected pass-through entity in which an 37 affected pass-through entity has a direct or indirect ownership inter- 38 est. 39 (e) New York S corporation. New York S corporation means, with respect 40 to any taxable year, any entity for which an election is in effect 41 pursuant to subsection (a) of section six hundred sixty of this chapter, 42 including any corporation for which such election has been deemed to 43 have been made pursuant to the provisions of subsection (i) of section 44 six hundred sixty of this chapter. 45 (f) Partnership. Partnership means any partnership as provided in 46 section 7701(a)(2) of the Internal Revenue Code and the regulations 47 promulgated thereunder. A partnership includes any limited liability 48 company or other entity that is treated as a partnership for federal 49 income tax purposes. 50 (g) Pass-through business net income or loss. Pass-through business 51 net income or loss of an affected pass-through entity means the sepa-S. 2509--B 15 1 rately and nonseparately computed items, as described in section 702(a) 2 of the Internal Revenue Code with respect to a partnership or section 3 1366 of the Internal Revenue Code with respect to an S corporation, of 4 the affected pass-through entity, adjusted as follows: 5 (1) increased or decreased by any modification described in 6 subsections (b), (c) or (d) of section six hundred twelve of this chap- 7 ter, subsection (c) or paragraphs two or three of subsection (d) of 8 section six hundred fifteen of this chapter; 9 (2) the portion of any of the affected pass-through entity's separate- 10 ly and nonseparately computed items that are allocable to nonresident 11 individuals, trusts, or estates for purposes of article twenty-two of 12 this chapter shall be excluded to the extent such portion is not derived 13 from or connected with New York sources; and 14 (3) the affected pass-through entity's separately and nonseparately 15 computed items that would otherwise be passed through to such entity 16 from any lower-tier affected pass-through entity shall be excluded to 17 the extent such items are taken into account in determining the tax paid 18 by a lower-tier affected pass-through entity pursuant to section eight 19 hundred sixty-one of this article. 20 For purposes of this subsection, the portion of any separately and 21 nonseparately computed item that is not derived from or connected with 22 New York sources shall be determined under regulations or guidance 23 issued by the tax commission consistent with the applicable rules used 24 to determine the portion of a taxpayer's distributive share of partner- 25 ship income or pro rata share of New York S corporation income that is 26 derived from New York sources pursuant to the rules set forth in section 27 six hundred thirty-two of this chapter. 28 § 861. Imposition and rate of tax. (a) General. A tax is hereby 29 imposed for each taxable year on the pass-through business net income of 30 every affected pass-through entity doing business within this state. 31 This tax shall be in addition to any other taxes imposed and shall be at 32 the rate of 6.85 percent for each taxable year beginning on or after 33 January first, two thousand twenty-one. In the case of an affected pass- 34 through entity that is a partnership or a New York S corporation for 35 only a portion of its taxable year, the affected partnership or affected 36 S corporation shall be subject to this tax on only that portion of its 37 pass-through business net income attributable to the portion of the year 38 for which it is a partnership or a New York S corporation, as determined 39 pursuant to regulations and guidance set forth by the commissioner. 40 (b) Election. Any partnership or New York S corporation may elect to 41 have New York income tax imposed at the entity level under subsection 42 (a) of this section. An election under this subsection shall be made on 43 the pass-through entity business tax return for the affected pass- 44 through entity in such manner as the commissioner may prescribe by regu- 45 lation or instruction. An election under this subsection must be made on 46 an annual basis and shall be effective for the affected pass-through 47 entity only for the taxable year for which the election is made. 48 § 862. Credits. (a) General. An affected pass-through entity shall be 49 allowed a credit against the tax otherwise due under this article for 50 any income tax imposed for the taxable year by another state of the 51 United States, a political subdivision of such state, the District of 52 Columbia or a province of Canada, upon income both derived therefrom and 53 included in the affected pass-through entity's pass-through business net 54 income or loss under this article. The term "income tax imposed" in the 55 previous sentence shall include: (1) any income tax imposed upon or 56 payable by the affected pass-through entity itself, provided such taxS. 2509--B 16 1 imposition or payment results from a tax that the commissioner deter- 2 mines is substantially similar to the tax imposed by this article; and 3 (2) any income tax imposed upon or payable by any direct or indirect 4 partner or shareholder of the affected pass-through entity who is a 5 resident individual, estate, or trust for purposes of article twenty-two 6 of this chapter. 7 (b) Limitations. (1) The credit under this section shall not exceed 8 the percentage of the tax otherwise due under this article determined by 9 dividing the portion of the taxpayer's pass-through business net income 10 that is subject to taxation by such other jurisdiction by the total 11 amount of the taxpayer's pass-through business net income. 12 (2) The credit under this section shall not reduce the tax otherwise 13 due under this article to an amount less than would have been due if the 14 income subject to taxation by such other jurisdiction were excluded from 15 the taxpayer's New York income. 16 (3) In the case of tax paid by a direct or indirect partner or share- 17 holder that elects to claim the foreign tax credit for federal income 18 tax purposes, the credit under this section for income tax imposed by a 19 province of Canada shall be allowed for that portion of the provincial 20 tax not claimed for federal purposes for the taxable year or a preceding 21 taxable year, provided however, to the extent the provincial tax is 22 claimed for federal purposes for a succeeding taxable year, the credit 23 under this section must be added back in such succeeding taxable year. 24 The provincial tax shall be deemed to be claimed last for federal income 25 tax purposes and for purposes of this subsection. 26 § 863. Payment of estimated tax. (a) Definition of estimated tax. 27 Estimated tax means the amount that an affected pass-through entity 28 estimates to be the tax imposed for the current taxable year by section 29 eight hundred sixty-one of this article. 30 (b) Annual estimated tax payment. The required annual estimated tax 31 payment is the lesser of (1) ninety percent of the estimated tax for the 32 year or (2) one hundred ten percent of the tax shown on the return of 33 the affected pass-through entity for the preceding taxable year. If the 34 affected pass-through entity was not in existence in the previous year 35 or did not elect to be subject to the tax imposed by this article in the 36 preceding year, then no estimated tax is due for the current taxable 37 year. 38 (c) General. The annual estimated tax payment shall be paid as follows 39 for an affected pass-through entity that reports on a calendar year 40 basis: 41 (1) If such annual estimated tax payment can reasonably be expected to 42 exceed one thousand dollars on or before March fifteenth of the taxable 43 year, the annual estimated tax payment shall be paid in four equal 44 installments on March fifteenth, June fifteenth, September fifteenth and 45 December fifteenth; 46 (2) If such annual estimated tax payment can reasonably be expected to 47 exceed one thousand dollars after March fifteenth and not after June 48 fifteenth of the taxable year, the annual estimated tax payment shall be 49 paid in three equal installments on June fifteenth, September fifteenth 50 and December fifteenth; 51 (3) If such annual estimated tax payment can reasonably be expected to 52 exceed one thousand dollars after June fifteenth and not after September 53 fifteenth of the taxable year, the annual estimated tax payment shall be 54 paid in two equal installments on September fifteenth and December 55 fifteenth; andS. 2509--B 17 1 (4) If such annual estimated tax payment can reasonably be expected to 2 exceed one thousand dollars after September fifteenth of the taxable 3 year, the annual estimated tax payment shall be paid on December 4 fifteenth. 5 (d) This section shall apply to a taxable year of less than twelve 6 months in accordance with procedures established by the commissioner. 7 (e) This section shall apply to a taxable year other than a calendar 8 year by the substitution of the months of such fiscal year for the 9 corresponding months specified in this section. 10 (f) An affected pass-through entity may elect to pay any installment 11 of its estimated tax prior to the date prescribed for the payment there- 12 of. 13 § 864. Filing of return and payment of tax. (a) General. On or before 14 the fifteenth day of the fourth month following the close of the taxable 15 year, each affected pass-through entity shall be required to transmit to 16 the commissioner a return in a form prescribed by the commissioner. 17 (b) Information on return. Each affected pass-through entity shall 18 report any tax due under this article on the face of such return and 19 such other pertinent information as the commissioner may by regulations 20 and instructions prescribe. The balance of any tax shown on the face of 21 such return, not previously paid as installments of estimated tax, shall 22 be paid with such return. 23 § 865. Accounting periods and methods. (a) Accounting periods. An 24 affected pass-through entity's taxable year under this article shall be 25 the same as the affected pass-through entity's taxable year for federal 26 income tax purposes. 27 (b) Accounting methods. An affected pass-through entity's method of 28 accounting under this article shall be the same as the affected pass- 29 through entity's method of accounting for federal income tax purposes. 30 (c) Change of accounting period or method. (1) If an affected pass- 31 through entity's taxable year or method of accounting is changed for 32 federal income tax purposes, the taxable year or method of accounting 33 for purposes of this article shall be similarly changed. 34 (2) If an affected pass-through entity's method of accounting is 35 changed, any additional tax that results from adjustments determined to 36 be necessary solely by reason of such change shall not be greater than 37 if such adjustments were ratably allocated and included for the taxable 38 year of the change and the preceding taxable years, not in excess of 39 two, during which the affected partnership used the method of accounting 40 from which the change is made. 41 § 866. Procedural provisions. (a) General. All procedural provisions 42 of article twenty-two of this chapter will apply to the provisions of 43 this article in the same manner and with the same force and effect as if 44 the language of article twenty-two of this chapter had been incorporated 45 in full into this article and had been specifically adjusted for and 46 expressly referred to the tax imposed by this article, except to the 47 extent that any provision is either inconsistent with a provision of 48 this article or is not relevant to this article. 49 (b) Liability for tax. Only the affected pass-through entity shall be 50 liable for the tax under this article, and no partner or shareholder 51 that has a direct or indirect ownership interest in the affected pass- 52 through entity shall be personally liable for such tax. 53 (c) Deposit and disposition of revenue. All taxes, interest, penal- 54 ties, and fees collected or received by the commissioner under this 55 article shall be deposited and disposed of pursuant to the provisions of 56 section one hundred seventy-one-a of this chapter.S. 2509--B 18 1 (d) Secrecy provision. All the provisions of subsection (a) of section 2 six hundred ninety-seven of this chapter will be applied to the 3 provisions of this article. Notwithstanding any provisions of this chap- 4 ter to the contrary, the commissioner may disclose information and 5 returns regarding the calculation and payment of the tax imposed by this 6 article to an affected pass-through entity, to its lower-tiered affected 7 pass-through entity or entities, and to any partner or shareholder that 8 has a direct or indirect ownership interest in the affected pass-through 9 entity and to which is allocable any separately or nonseparately 10 computed items, as described in section 702(a) of the Internal Revenue 11 Code with respect to a partnership or section 1366 of the Internal 12 Revenue Code with respect to an S corporation. 13 § 2. The opening paragraph of paragraph (a) of subdivision 1 of 14 section 210 of the tax law, as amended by section 10 of part T of chap- 15 ter 59 of the laws of 2015, is amended to read as follows: 16 For taxable years beginning before January first, two thousand 17 sixteen, the amount prescribed by this paragraph shall be computed at 18 the rate of seven and one-tenth percent of the taxpayer's business 19 income base. For taxable years beginning on or after January first, two 20 thousand sixteen, the amount prescribed by this paragraph shall be six 21 and one-half percent of the taxpayer's business income base. The taxpay- 22 er's business income base shall mean the portion of the taxpayer's busi- 23 ness income apportioned within the state as hereinafter provided. Howev- 24 er, in the case of a small business taxpayer, as defined in paragraph 25 (f) of this subdivision, the amount prescribed by this paragraph shall 26 be computed pursuant to subparagraph (iv) of this paragraph and in the 27 case of a manufacturer, as defined in subparagraph (vi) of this para- 28 graph, the amount prescribed by this paragraph shall be computed pursu- 29 ant to subparagraph (vi) of this paragraph, and, in the case of a quali- 30 fied emerging technology company, as defined in subparagraph (vii) of 31 this paragraph, the amount prescribed by this paragraph shall be 32 computed pursuant to subparagraph (vii) of this paragraph. Notwith- 33 standing the provisions of this paragraph, with respect to any taxpayer 34 that has a direct or indirect ownership interest in one or more pass- 35 through entities that has elected to be subject to tax pursuant to 36 subsection (a) of section eight hundred sixty-one of this chapter, 37 including any taxpayer that is a small business taxpayer, a manufactur- 38 er, or a qualified emerging technology company, the taxpayer's business 39 income base will be decreased by an amount equal to the product of (1) 40 the sum of the portions of the taxpayer's distributive or pro rata share 41 of each separately and nonseparately computed item as described in 42 section 702(a) or section 1366 of the Internal Revenue Code that is 43 derived from or connected with New York sources as computed pursuant to 44 subsection (g) of section eight hundred sixty of this chapter that is 45 being taken into account in determining the tax paid by an affected 46 pass-through entity pursuant to subsection (a) of section eight hundred 47 sixty-one of this chapter and (2) a fraction, the numerator of which is 48 the tax rate imposed on affected pass-through entities by subsection (a) 49 of section eight hundred sixty-one of this chapter and the denominator 50 of which is the tax rate imposed on the business income base of the 51 taxpayer pursuant to this paragraph. If the amount of the reduction 52 allowable to the taxpayer under the previous sentence for any taxable 53 year shall exceed the taxpayer's tax base for such year, the excess 54 allowed for the taxable year may be carried over to the following year 55 or years and may be used to reduce the taxpayer's tax base in such 56 subsequent year or years.S. 2509--B 19 1 § 3. Section 209-B of the tax law is amended by adding a new subdivi- 2 sion 7 to read as follows: 3 7. In determining the amount of the surcharge to be imposed on a 4 taxpayer pursuant to this section, the amount of such surcharge will be 5 determined without taking into account any affected pass-through entity 6 reduction computed pursuant to paragraph (a) of subdivision one of 7 section two hundred ten of this chapter. 8 § 4. Subsection (a) of section 611 of the tax law, as amended by chap- 9 ter 28 of the laws of 1987, is amended to read as follows: 10 (a) General. The New York taxable income of a resident individual 11 shall be his New York adjusted gross income less his New York deduction 12 and New York exemptions, as determined under this part. Notwithstanding 13 the foregoing provision, with respect to any resident individual that 14 has a direct or indirect ownership interest in one or more affected 15 pass-through entities subject to the tax imposed pursuant to article 16 twenty-four-A of this chapter, the resident individual's New York taxa- 17 ble income shall be adjusted to exclude such individual's distributive 18 or pro rata shares of each separately and nonseparately computed item, 19 as described in section 702(a) of the Internal Revenue Code with respect 20 to a partnership or section 1366 of the Internal Revenue Code with 21 respect to an S corporation, from all affected pass-through entities in 22 which the taxpayer has a direct or indirect ownership interest. If the 23 amount of the adjustment made pursuant to the previous sentence shall 24 exceed the resident individual's New York taxable income for such year, 25 the excess allowed for the taxable year may be carried over to the 26 following year or years and may be used to reduce the resident individ- 27 ual's New York taxable income in such subsequent year or years. 28 § 5. Section 618 of the tax law is amended by adding a new subsection 29 6 to read as follows: 30 (6) With respect to a resident estate or trust that has a direct or 31 indirect ownership interest in one or more affected pass-through enti- 32 ties subject to the tax imposed pursuant to article twenty-four-A of 33 this chapter, the resident estate's or trust's New York taxable income 34 shall be adjusted to exclude such estate's or trust's distributive or 35 pro rata shares of each separately and nonseparately computed item, as 36 described in section 702(a) of the Internal Revenue Code with respect to 37 a partnership or section 1366 of the Internal Revenue Code with respect 38 to an S corporation, from all affected pass-through entities in which 39 the taxpayer has a direct or indirect ownership interest. If the amount 40 of the adjustment made pursuant to the previous sentence shall exceed 41 the estate's or the trust's New York taxable income for such year, the 42 excess allowed for the taxable year may be carried over to the following 43 year or years and may be used to reduce the estate's or trust's New York 44 taxable income in such subsequent year or years. 45 § 6. Subsection (e) of section 601 of the tax law is amended by adding 46 a new paragraph 5 to read as follows: 47 (5) Nonresident partners and shareholders in affected pass-through 48 entities. Notwithstanding any other provision of this subsection, with 49 respect to every nonresident and part-year resident individual and trust 50 and every nonresident estate that has a direct or indirect ownership 51 interest in one or more affected pass-through entities subject to the 52 tax imposed pursuant to article twenty-four-A of this chapter, the tax 53 imposed pursuant to paragraph one of this subsection shall be an amount 54 equal to the sum of the modified tax base and the surtax tax base multi- 55 plied by their respective applicable New York source fractions.S. 2509--B 20 1 (A) Modified tax base. The modified tax base of a taxpayer under this 2 paragraph shall be calculated in the same manner as the tax base in 3 paragraph two of this subsection, except that, notwithstanding 4 subsection (a) of section six hundred eleven or subsection six of 5 section six hundred eighteen of this article, separately and nonsepa- 6 rately computed items with respect to such affected pass-through enti- 7 ties shall not be excluded, and the rate tables under subsections (a), 8 (b) and (c) and the supplemental tax under subsection (d-1) of this 9 section shall be applied by reducing each tax rate in excess of 6.85% to 10 6.85%, and adjusting each tax table accordingly. The applicable New York 11 source fraction for the modified tax base shall be calculated in the 12 same manner as the New York source fraction under paragraph three of 13 this subsection, including the exclusion of separately and nonseparately 14 computed items with respect to such affected pass-through entities under 15 subsection (a) of section six hundred eleven or subsection six of 16 section six hundred eighteen of this article, as applicable, in calcu- 17 lating the numerator of such fraction. If the amount of such separately 18 and nonseparately computed items so excluded exceeds the numerator of 19 the New York source fraction for such year before such exclusion, the 20 excess may be carried over to the following year or years and may be 21 used to reduce the numerator of the taxpayer's applicable New York 22 source fraction under this subparagraph for such taxable years. 23 (B) Surtax tax base. The surtax tax base of a taxpayer under this 24 paragraph shall be equal to the portion of the taxpayer's New York taxa- 25 ble income to which the 8.82% rate would have applied in computing the 26 taxpayer's modified tax base under the preceding subparagraph (after 27 taking into account the tax table benefit recapture provisions under 28 subsection (d-1) of this section) if the tax rate had not been capped at 29 6.85% under that subparagraph multiplied by a factor of 1.97%. The 30 applicable New York source fraction for the surtax tax base shall be 31 calculated in the same manner as the New York source fraction under 32 paragraph three of this subsection, except that separately and nonsepa- 33 rately computed items with respect to such affected pass-through enti- 34 ties shall not be excluded in calculating the numerator of such frac- 35 tion. 36 § 7. Section 606 of the tax law is amended by adding a new subsection 37 (kkk) to read as follows: 38 (kkk) Taxpayers with direct or indirect ownership interests in 39 affected pass-through entities. Notwithstanding the other provisions of 40 this subsection, a taxpayer that has a direct or indirect ownership 41 interest in an affected pass-through entity that is subject to tax 42 pursuant to article twenty-four-A of this chapter is not entitled to 43 claim a credit otherwise provided by this section to the extent that the 44 credit was claimed by the affected pass-through entity for purposes of 45 determining its tax liability under article twenty-four-A of this chap- 46 ter. 47 § 8. Subsection (d) of section 620 of the tax law, as added by chapter 48 166 of the laws of 1991, is amended to read as follows: 49 (d) S corporation shareholders and partners. In the case of a share- 50 holder of an S corporation, the term "income tax" in subsection (a) of 51 this section shall [not] include (1) any such tax imposed upon or paya- 52 ble by the [corporation, but shall include any such tax] shareholder 53 with respect to the income of the corporation [imposed upon or payable54by the shareholder], without regard to whether an election independent 55 of the federal S election was required to effect such imposition upon 56 the shareholder of such S corporation and (2) such shareholder's proS. 2509--B 21 1 rata share of any such tax imposed upon or payable by the corporation, 2 provided such tax imposition or payment results from a tax that the 3 commissioner determines is substantially similar to the tax imposed by 4 article twenty-four-A of this chapter. In the case of a partner in a 5 partnership, the term "income tax" in subsection (a) of this section 6 shall (1) include any such tax imposed upon or payable by the partner 7 with respect to the income of the partnership and (2) such partner's 8 distributive share of any such tax imposed upon or payable by the part- 9 nership, provided such tax imposition or payment results from a tax that 10 the commissioner determines is substantially similar to the tax imposed 11 by article twenty-four-A of this chapter. 12 § 9. Section 620 of the tax law is amended by adding a new subsection 13 (e) to read as follows: 14 (e) Taxpayers with direct or indirect ownership interests in affected 15 pass-through entities. Notwithstanding the other provisions of this 16 section, a taxpayer that has a direct or indirect ownership interest in 17 an affected pass-through entity that is subject to tax pursuant to arti- 18 cle twenty-four-A of this chapter is not entitled to claim a credit 19 otherwise provided by this section to the extent that any income tax is 20 claimed as a credit pursuant to section eight hundred sixty-two of this 21 chapter by the affected pass-through entity for purposes of determining 22 its tax liability under article twenty-four-A of this chapter. 23 § 10. Subparagraph (A) of paragraph 4 of subsection (c) of section 658 24 of the tax law, as amended by section 72 of part A of chapter 59 of the 25 laws of 2014, is amended to read as follows: 26 (A) General. Every entity other than an entity subject to tax under 27 article twenty-four-A of this chapter, which is a partnership, other 28 than a publicly traded partnership as defined in section 7704 of the 29 federal Internal Revenue Code, subchapter K limited liability company or 30 an S corporation for which the election provided for in subsection (a) 31 of section six hundred sixty of this part is in effect, which has part- 32 ners, members or shareholders who are nonresident individuals, as 33 defined under subsection (b) of section six hundred five of this arti- 34 cle, or C corporations, and which has any income derived from New York 35 sources, determined in accordance with the applicable rules of section 36 six hundred thirty-one of this article as in the case of a nonresident 37 individual, shall pay estimated tax on such income on behalf of such 38 partners, members or shareholders in the manner and at the times 39 prescribed by subsection (c) of section six hundred eighty-five of this 40 article. For purposes of this paragraph, the term "estimated tax" shall 41 mean a partner's, member's or shareholder's distributive share or pro 42 rata share of the entity income derived from New York sources, multi- 43 plied by the highest rate of tax prescribed by section six hundred one 44 of this article for the taxable year of any partner, member or share- 45 holder who is an individual taxpayer, or paragraph (a) of subdivision 46 one of section two hundred ten of this chapter for the taxable year of 47 any partner, member or shareholder which is a C corporation, whether or 48 not such C corporation is subject to tax under article nine, nine-A or 49 thirty-three of this chapter, and reduced by the distributive share or 50 pro rata share of any credits determined under section one hundred 51 eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen 52 hundred eleven of this chapter, whichever is applicable, derived from 53 the entity. 54 § 11. Section 612 of the tax law is amended by adding a new subsection 55 (y) to read as follows:S. 2509--B 22 1 (y) The election by a partnership or S corporation pursuant to 2 subsection (b) of section eight hundred sixty-one of this chapter shall 3 have no impact on the additions and subtractions to be taken into 4 account under subsection (n) of this section and such election shall 5 have no impact on the determination of the basis of a partner or share- 6 holder in an interest in the partnership or in the stock or indebtedness 7 of the S corporation. 8 § 12. Subdivision 1 of section 171-a of the tax law, as amended by 9 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 10 read as follows: 11 1. All taxes, interest, penalties and fees collected or received by 12 the commissioner or the commissioner's duly authorized agent under arti- 13 cles nine (except section one hundred eighty-two-a thereof and except as 14 otherwise provided in section two hundred five thereof), nine-A, 15 twelve-A (except as otherwise provided in section two hundred eighty- 16 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 17 section three hundred twelve thereof), eighteen, nineteen, twenty 18 (except as otherwise provided in section four hundred eighty-two there- 19 of), twenty-B, twenty-D, twenty-one, twenty-two, [twenty-four] twenty- 20 four-A, twenty-six, twenty-eight (except as otherwise provided in 21 section eleven hundred two or eleven hundred three thereof), 22 twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided 23 in section fourteen hundred twenty-one thereof), thirty-three and thir- 24 ty-three-A of this chapter shall be deposited daily in one account with 25 such responsible banks, banking houses or trust companies as may be 26 designated by the comptroller, to the credit of the comptroller. Such an 27 account may be established in one or more of such depositories. Such 28 deposits shall be kept separate and apart from all other money in the 29 possession of the comptroller. The comptroller shall require adequate 30 security from all such depositories. Of the total revenue collected or 31 received under such articles of this chapter, the comptroller shall 32 retain in the comptroller's hands such amount as the commissioner may 33 determine to be necessary for refunds or reimbursements under such arti- 34 cles of this chapter out of which amount the comptroller shall pay any 35 refunds or reimbursements to which taxpayers shall be entitled under the 36 provisions of such articles of this chapter. The commissioner and the 37 comptroller shall maintain a system of accounts showing the amount of 38 revenue collected or received from each of the taxes imposed by such 39 articles. The comptroller, after reserving the amount to pay such 40 refunds or reimbursements, shall, on or before the tenth day of each 41 month, pay into the state treasury to the credit of the general fund all 42 revenue deposited under this section during the preceding calendar month 43 and remaining to the comptroller's credit on the last day of such 44 preceding month, (i) except that the comptroller shall pay to the state 45 department of social services that amount of overpayments of tax imposed 46 by article twenty-two of this chapter and the interest on such amount 47 which is certified to the comptroller by the commissioner as the amount 48 to be credited against past-due support pursuant to subdivision six of 49 section one hundred seventy-one-c of this article, (ii) and except that 50 the comptroller shall pay to the New York state higher education 51 services corporation and the state university of New York or the city 52 university of New York respectively that amount of overpayments of tax 53 imposed by article twenty-two of this chapter and the interest on such 54 amount which is certified to the comptroller by the commissioner as the 55 amount to be credited against the amount of defaults in repayment of 56 guaranteed student loans and state university loans or city universityS. 2509--B 23 1 loans pursuant to subdivision five of section one hundred seventy-one-d 2 and subdivision six of section one hundred seventy-one-e of this arti- 3 cle, (iii) and except further that, notwithstanding any law, the comp- 4 troller shall credit to the revenue arrearage account, pursuant to 5 section ninety-one-a of the state finance law, that amount of overpay- 6 ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- 7 ty-A, thirty-B or thirty-three of this chapter, and any interest there- 8 on, which is certified to the comptroller by the commissioner as the 9 amount to be credited against a past-due legally enforceable debt owed 10 to a state agency pursuant to paragraph (a) of subdivision six of 11 section one hundred seventy-one-f of this article, provided, however, he 12 shall credit to the special offset fiduciary account, pursuant to 13 section ninety-one-c of the state finance law, any such amount credita- 14 ble as a liability as set forth in paragraph (b) of subdivision six of 15 section one hundred seventy-one-f of this article, (iv) and except 16 further that the comptroller shall pay to the city of New York that 17 amount of overpayment of tax imposed by article nine, nine-A, twenty- 18 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 19 interest thereon that is certified to the comptroller by the commission- 20 er as the amount to be credited against city of New York tax warrant 21 judgment debt pursuant to section one hundred seventy-one-l of this 22 article, (v) and except further that the comptroller shall pay to a 23 non-obligated spouse that amount of overpayment of tax imposed by arti- 24 cle twenty-two of this chapter and the interest on such amount which has 25 been credited pursuant to section one hundred seventy-one-c, one hundred 26 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 27 one hundred seventy-one-l of this article and which is certified to the 28 comptroller by the commissioner as the amount due such non-obligated 29 spouse pursuant to paragraph six of subsection (b) of section six 30 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 31 a like amount which the comptroller shall pay into the treasury to the 32 credit of the general fund from amounts subsequently payable to the 33 department of social services, the state university of New York, the 34 city university of New York, or the higher education services corpo- 35 ration, or the revenue arrearage account or special offset fiduciary 36 account pursuant to section ninety-one-a or ninety-one-c of the state 37 finance law, as the case may be, whichever had been credited the amount 38 originally withheld from such overpayment, and (vii) with respect to 39 amounts originally withheld from such overpayment pursuant to section 40 one hundred seventy-one-l of this article and paid to the city of New 41 York, the comptroller shall collect a like amount from the city of New 42 York. 43 § 13. Section 601 of the tax law is amended by adding a new subsection 44 (j) to read as follows: 45 (j) For every resident individual, estate or trust that has a direct 46 or indirect ownership interest in one or more pass-through entities that 47 has elected to be subject to tax pursuant to subsection (a) of section 48 eight hundred sixty-one of this chapter, there is hereby imposed for 49 each taxable year a surtax at the rate of 1.97% on the amount by which 50 the portion of such individual's, estate's or trust's New York taxable 51 income subject to tax at the rate of 8.82% would increase if the resi- 52 dent individual's, estate's or trust's New York taxable income was 53 adjusted to add back such individual's, estate's or trust's distributive 54 or pro rata shares of separately or nonseparately computed items from 55 such pass-through entities.S. 2509--B 24 1 § 14. Paragraph 1 of subsection (e) of section 601 of the tax law, as 2 amended by chapter 170 of the laws of 1994, is amended to read as 3 follows: 4 (1) General. [There] Except as provided in paragraph five of this 5 subsection, there is hereby imposed for each taxable year on the taxable 6 income which is derived from sources in this state of every nonresident 7 and part-year resident individual and trust and every nonresident estate 8 a tax which shall be equal to the tax base multiplied by the New York 9 source fraction. 10 § 15. This act shall take effect immediately and shall apply for 11 taxable years beginning on or after January 1, 2021; provided, however 12 that the amendments to subdivision 1 of section 171-a of the tax law 13 made by section twelve of this act shall not affect the expiration of 14 such subdivision and shall be deemed to expire therewith. 15 PART D 16 Section 1. Section 352 of the economic development law is amended by 17 adding two new subdivisions 5-a and 13-a to read as follows: 18 5-a. "Child care services" means those services undertaken or spon- 19 sored by a participant in this program meeting the requirements of 20 "child day care" as defined in paragraph (a) of subdivision one of 21 section three hundred ninety of the social services law or any child 22 care services in the city of New York whereby a permit to operate such 23 child care services is required pursuant to the health code of the city 24 of New York. 25 13-a. "Net new child care services expenditures" means the calculation 26 of new, annual participant expenditures on child care services whether 27 internal or provided by a third party (including coverage for full or 28 partial discount of employee rates), minus any revenues received by the 29 participant through a third-party operator (i.e. rent paid to the 30 participant by the child care provider) or employees and may be further 31 defined by the commissioner in regulations. For the purposes of this 32 definition, expenditures for child care services that a participant has 33 incurred prior to admission to this program shall not be eligible for 34 the credit. 35 § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the 36 economic development law, as amended by section 2 of part L of chapter 37 59 of the laws of 2020, are amended and a new paragraph (m) is added to 38 read as follows: 39 (k) as a life sciences company; [or] 40 (l) as a company operating in one of the industries listed in para- 41 graphs (b) through (e) of this subdivision and engaging in a green 42 project as defined in section three hundred fifty-two of this 43 article[.]; or 44 (m) as a participant operating in one of the industries listed in 45 paragraphs (a) through (k) of this subdivision and operating or sponsor- 46 ing child care services to its employees as defined in section three 47 hundred fifty-two of this article. 48 § 3. Subdivisions 2 and 6 of section 355 of the economic development 49 law, subdivision 2 as amended by section 4 of part L of chapter 59 of 50 the laws of 2020 and subdivision 6 as amended by section 4 of part K of 51 chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is 52 added to read as follows: 53 2. Excelsior investment tax credit component. A participant in the 54 excelsior jobs program shall be eligible to claim a credit on qualifiedS. 2509--B 25 1 investments. In a project that is not a green project, the credit shall 2 be equal to two percent of the cost or other basis for federal income 3 tax purposes of the qualified investment. In a green project, the credit 4 shall be equal to five percent of the cost or other basis for federal 5 income tax purposes of the qualified investment. In a project for child 6 care services, the credit shall be equal to five percent of the cost or 7 other basis for federal income tax purposes of the qualified investment 8 in child care services. A participant may not claim both the excelsior 9 investment tax credit component and the investment tax credit set forth 10 in subdivision one of section two hundred ten-B, subsection (a) of 11 section six hundred six, the former subsection (i) of section fourteen 12 hundred fifty-six, or subdivision (q) of section fifteen hundred eleven 13 of the tax law for the same property in any taxable year, except that a 14 participant may claim both the excelsior investment tax credit component 15 and the investment tax credit for research and development property. In 16 addition, a taxpayer who or which is qualified to claim the excelsior 17 investment tax credit component and is also qualified to claim the 18 brownfield tangible property credit component under section twenty-one 19 of the tax law may claim either the excelsior investment tax credit 20 component or such tangible property credit component, but not both with 21 regard to a particular piece of property. A credit may not be claimed 22 until a business enterprise has received a certificate of tax credit, 23 provided that qualified investments made on or after the issuance of the 24 certificate of eligibility but before the issuance of the certificate of 25 tax credit to the business enterprise, may be claimed in the first taxa- 26 ble year for which the business enterprise is allowed to claim the cred- 27 it. Expenses incurred prior to the date the certificate of eligibility 28 is issued are not eligible to be included in the calculation of the 29 credit. 30 2-a. Excelsior child care services tax credit component. A participant 31 engaging in a new excelsior jobs program project shall be eligible to 32 claim a credit on its net new child care services expenditures for its 33 operation, sponsorship or direct financial support of a child care 34 services program. The credit shall be equal to six percent of the net 35 new child care services expenditures as defined in this chapter. 36 6. Claim of tax credit. The business enterprise shall be allowed to 37 claim the credit as prescribed in section thirty-one of the tax law. No 38 costs used by an entertainment company as the basis for the allowance of 39 a tax credit described in this section shall be used by such enter- 40 tainment company to claim any other credit allowed pursuant to the tax 41 law. No costs or expenditures for child care services used by a partic- 42 ipant to claim the credit as prescribed in section forty-four of the tax 43 law shall be used for the allowance of a tax credit described in this 44 section. 45 § 3-a. Section 358 of the economic development law is amended by 46 adding two new subdivisions 3 and 4 to read as follows: 47 3. Beginning June thirtieth, two thousand twenty-one, and every three 48 months thereafter, the quarterly report shall also include: the number 49 of projects receiving the child care services program tax credit; the 50 number of projects claiming the investment credit for child care 51 services expenditures; the number of employees provided child care 52 services due to the credits; and the number of children being served by 53 these child care services. 54 4. The commissioner shall submit to the governor, the temporary pres- 55 ident of the senate, and the speaker of the assembly, an annual report 56 to be submitted on February first of each year evaluating the effec-S. 2509--B 26 1 tiveness of the excelsior jobs program. The report shall include, but 2 not be limited to, the following: an annual compilation of the informa- 3 tion included in the quarterly reports issued under subdivisions two and 4 three of this section; the amount of credits allocated per net new job 5 created; the total number of applicants to the program annually; the 6 number of applicants denied credits; data on the number of participants 7 and net new jobs per economic development region; and such other infor- 8 mation as the commissioner determines. This annual report shall also be 9 posted on the department's website. 10 § 4. Subdivision (a) of section 31 of the tax law is amended by adding 11 a new paragraph 2-a to read as follows: 12 (2-a) the excelsior child care services tax credit component; 13 § 5. Subdivision (a) of section 44 of the tax law, as added by section 14 1 of part L of chapter 59 of the laws of 2019, is amended to read as 15 follows: 16 (a) General. A taxpayer subject to tax under article nine-A, twenty- 17 two, or thirty-three of this chapter shall be allowed a credit against 18 such tax in an amount equal to two hundred percent of the portion of the 19 credit that is allowed to the taxpayer under section 45F of the internal 20 revenue code that is attributable to (i) qualified child care expendi- 21 tures paid or incurred with respect to a qualified child care facility 22 with a situs in the state, and to (ii) qualified child care resource and 23 referral expenditures paid or incurred with respect to the taxpayer's 24 employees working in the state. The credit allowable under this subdivi- 25 sion for any taxable year shall not exceed [one hundred fifty] five 26 hundred thousand dollars. If the entity operating the qualified child 27 care facility is a partnership or a New York S corporation, then such 28 cap shall be applied at the entity level, so the aggregate credit 29 allowed to all the partners or shareholders of such entity in a taxable 30 year does not exceed [one hundred fifty] five hundred thousand dollars. 31 § 6. This act shall take effect immediately; provided, however, 32 section five of this act shall apply to taxable years beginning on or 33 after January 1, 2022. 34 PART E 35 Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax 36 law, as amended by chapter 485 of the laws of 1988, is amended to read 37 as follows: 38 (b) (1) A corporation classed as a "taxicab" or "omnibus", 39 (i) which is organized, incorporated or formed under the laws of any 40 other state, country or sovereignty, and 41 (ii) which neither owns nor leases property in this state in a corpo- 42 rate or organized capacity, nor 43 (iii) maintains an office in this state in a corporate or organized 44 capacity, but 45 (iv) which is doing business or employing capital in this state by 46 conducting at least one but fewer than twelve trips into this state 47 during the calendar year, shall [annually pay a tax equal to fifteen48dollars for each trip conducted into this state] not be taxed under the 49 provisions of this article. If the only property a corporation owns or 50 leases in this state is a vehicle or vehicles used to conduct trips, it 51 shall not be considered, for purposes of clause (ii) of this subpara- 52 graph, to be owning or leasing property in this state. 53 (2) [The commissioner of taxation and finance may prescribe such forms54as he may deem necessary to report such tax in a simplified manner.S. 2509--B 27 1(3)] For purposes of this subdivision, a corporation classed as a 2 "taxicab" or "omnibus" shall be considered to be conducting a trip into 3 New York state when one of its vehicles enters New York state and trans- 4 ports passengers to, from, or to and from a location in New York state. 5 A corporation shall not be considered to be conducting a trip into New 6 York state if its vehicle only makes incidental stops at locations in 7 the state while in transit from a location outside New York state to 8 another location outside New York state. The number of trips a corpo- 9 ration conducts into New York state shall be calculated by determining 10 the number of trips each vehicle owned, leased or operated by the corpo- 11 ration conducts into New York state and adding those numbers together. 12 [(4) Provided, however, that the provisions of this paragraph shall13not apply to any corporation which does not file its franchise tax14report in a timely manner (determined with regard to any extension of15time for filing).] 16 § 2. This act shall take effect immediately, provided, however, that 17 section one of this act shall apply to taxable years beginning on or 18 after January 1, 2021. 19 PART F 20 Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax 21 law, as amended by section 5-a of part M of chapter 59 of the laws of 22 2020, is amended to read as follows: 23 (5) For the period two thousand fifteen through two thousand [twenty-24five] twenty-six, in addition to the amount of credit established in 25 paragraph two of this subdivision, a taxpayer shall be allowed a credit 26 equal to the product (or pro rata share of the product, in the case of a 27 member of a partnership) of ten percent and the amount of wages or sala- 28 ries paid to individuals directly employed (excluding those employed as 29 writers, directors, music directors, producers and performers, including 30 background actors with no scripted lines) by a qualified film production 31 company or a qualified independent film production company for services 32 performed by those individuals in one of the counties specified in this 33 paragraph in connection with a qualified film with a minimum budget of 34 five hundred thousand dollars. For purposes of this additional credit, 35 the services must be performed in one or more of the following counties: 36 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 37 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 38 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 39 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 40 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 41 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 42 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 43 Yates. The aggregate amount of tax credits allowed pursuant to the 44 authority of this paragraph shall be five million dollars each year 45 during the period two thousand fifteen through two thousand [twenty-46five] twenty-six of the annual allocation made available to the program 47 pursuant to paragraph four of subdivision (e) of this section. Such 48 aggregate amount of credits shall be allocated by the governor's office 49 for motion picture and television development among taxpayers in order 50 of priority based upon the date of filing an application for allocation 51 of film production credit with such office. If the total amount of 52 allocated credits applied for under this paragraph in any year exceeds 53 the aggregate amount of tax credits allowed for such year under this 54 paragraph, such excess shall be treated as having been applied for onS. 2509--B 28 1 the first day of the next year. If the total amount of allocated tax 2 credits applied for under this paragraph at the conclusion of any year 3 is less than five million dollars, the remainder shall be treated as 4 part of the annual allocation made available to the program pursuant to 5 paragraph four of subdivision (e) of this section. However, in no event 6 may the total of the credits allocated under this paragraph and the 7 credits allocated under paragraph five of subdivision (a) of section 8 thirty-one of this article exceed five million dollars in any year 9 during the period two thousand fifteen through two thousand [twenty-10five] twenty-six. 11 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 12 amended by section 5-b of part M of chapter 59 of the laws of 2020, is 13 amended to read as follows: 14 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 15 subdivision (a) of this section shall be increased by an additional four 16 hundred twenty million dollars in each year starting in two thousand ten 17 through two thousand [twenty-five] twenty-six provided however, seven 18 million dollars of the annual allocation shall be available for the 19 empire state film post production credit pursuant to section thirty-one 20 of this article in two thousand thirteen and two thousand fourteen, 21 twenty-five million dollars of the annual allocation shall be available 22 for the empire state film post production credit pursuant to section 23 thirty-one of this article in each year starting in two thousand fifteen 24 through two thousand [twenty-five] twenty-six and five million dollars 25 of the annual allocation shall be made available for the television 26 writers' and directors' fees and salaries credit pursuant to section 27 twenty-four-b of this article in each year starting in two thousand 28 twenty through two thousand [twenty-five] twenty-six. This amount shall 29 be allocated by the governor's office for motion picture and television 30 development among taxpayers in accordance with subdivision (a) of this 31 section. If the commissioner of economic development determines that the 32 aggregate amount of tax credits available from additional pool 2 for the 33 empire state film production tax credit have been previously allocated, 34 and determines that the pending applications from eligible applicants 35 for the empire state film post production tax credit pursuant to section 36 thirty-one of this article is insufficient to utilize the balance of 37 unallocated empire state film post production tax credits from such 38 pool, the remainder, after such pending applications are considered, 39 shall be made available for allocation in the empire state film tax 40 credit pursuant to this section, subdivision twenty of section two 41 hundred ten-B and subsection (gg) of section six hundred six of this 42 chapter. Also, if the commissioner of economic development determines 43 that the aggregate amount of tax credits available from additional pool 44 2 for the empire state film post production tax credit have been previ- 45 ously allocated, and determines that the pending applications from 46 eligible applicants for the empire state film production tax credit 47 pursuant to this section is insufficient to utilize the balance of unal- 48 located film production tax credits from such pool, then all or part of 49 the remainder, after such pending applications are considered, shall be 50 made available for allocation for the empire state film post production 51 credit pursuant to this section, subdivision thirty-two of section two 52 hundred ten-B and subsection (qq) of section six hundred six of this 53 chapter. The governor's office for motion picture and television devel- 54 opment must notify taxpayers of their allocation year and include the 55 allocation year on the certificate of tax credit. Taxpayers eligible to 56 claim a credit must report the allocation year directly on their empireS. 2509--B 29 1 state film production credit tax form for each year a credit is claimed 2 and include a copy of the certificate with their tax return. In the case 3 of a qualified film that receives funds from additional pool 2, no 4 empire state film production credit shall be claimed before the later of 5 the taxable year the production of the qualified film is complete, or 6 the taxable year immediately following the allocation year for which the 7 film has been allocated credit by the governor's office for motion 8 picture and television development. 9 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 10 amended by section 2 of part SSS of chapter 59 of the laws of 2019, is 11 amended to read as follows: 12 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 13 subdivision (a) of this section shall be increased by an additional four 14 hundred twenty million dollars in each year starting in two thousand ten 15 through two thousand [twenty-four] twenty-six provided however, seven 16 million dollars of the annual allocation shall be available for the 17 empire state film post production credit pursuant to section thirty-one 18 of this article in two thousand thirteen and two thousand fourteen and 19 twenty-five million dollars of the annual allocation shall be available 20 for the empire state film post production credit pursuant to section 21 thirty-one of this article in each year starting in two thousand fifteen 22 through two thousand [twenty-four] twenty-six. This amount shall be 23 allocated by the governor's office for motion picture and television 24 development among taxpayers in accordance with subdivision (a) of this 25 section. If the commissioner of economic development determines that the 26 aggregate amount of tax credits available from additional pool 2 for the 27 empire state film production tax credit have been previously allocated, 28 and determines that the pending applications from eligible applicants 29 for the empire state film post production tax credit pursuant to section 30 thirty-one of this article is insufficient to utilize the balance of 31 unallocated empire state film post production tax credits from such 32 pool, the remainder, after such pending applications are considered, 33 shall be made available for allocation in the empire state film tax 34 credit pursuant to this section, subdivision twenty of section two 35 hundred ten-B and subsection (gg) of section six hundred six of this 36 chapter. Also, if the commissioner of economic development determines 37 that the aggregate amount of tax credits available from additional pool 38 2 for the empire state film post production tax credit have been previ- 39 ously allocated, and determines that the pending applications from 40 eligible applicants for the empire state film production tax credit 41 pursuant to this section is insufficient to utilize the balance of unal- 42 located film production tax credits from such pool, then all or part of 43 the remainder, after such pending applications are considered, shall be 44 made available for allocation for the empire state film post production 45 credit pursuant to this section, subdivision thirty-two of section two 46 hundred ten-B and subsection (qq) of section six hundred six of this 47 chapter. The governor's office for motion picture and television devel- 48 opment must notify taxpayers of their allocation year and include the 49 allocation year on the certificate of tax credit. Taxpayers eligible to 50 claim a credit must report the allocation year directly on their empire 51 state film production credit tax form for each year a credit is claimed 52 and include a copy of the certificate with their tax return. In the case 53 of a qualified film that receives funds from additional pool 2, no 54 empire state film production credit shall be claimed before the later of 55 the taxable year the production of the qualified film is complete, or 56 the taxable year immediately following the allocation year for which theS. 2509--B 30 1 film has been allocated credit by the governor's office for motion 2 picture and television development. 3 § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 4 amended by section 5-c of part M of chapter 59 of the laws of 2020, is 5 amended to read as follows: 6 (6) For the period two thousand fifteen through two thousand [twenty-7five] twenty-six, in addition to the amount of credit established in 8 paragraph two of this subdivision, a taxpayer shall be allowed a credit 9 equal to the product (or pro rata share of the product, in the case of a 10 member of a partnership) of ten percent and the amount of wages or sala- 11 ries paid to individuals directly employed (excluding those employed as 12 writers, directors, music directors, producers and performers, including 13 background actors with no scripted lines) for services performed by 14 those individuals in one of the counties specified in this paragraph in 15 connection with the post production work on a qualified film with a 16 minimum budget of five hundred thousand dollars at a qualified post 17 production facility in one of the counties listed in this paragraph. For 18 purposes of this additional credit, the services must be performed in 19 one or more of the following counties: Albany, Allegany, Broome, Catta- 20 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 21 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 22 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 23 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 24 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 25 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 26 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate 27 amount of tax credits allowed pursuant to the authority of this para- 28 graph shall be five million dollars each year during the period two 29 thousand fifteen through two thousand [twenty-five] twenty-six of the 30 annual allocation made available to the empire state film post 31 production credit pursuant to paragraph four of subdivision (e) of 32 section twenty-four of this article. Such aggregate amount of credits 33 shall be allocated by the governor's office for motion picture and tele- 34 vision development among taxpayers in order of priority based upon the 35 date of filing an application for allocation of post production credit 36 with such office. If the total amount of allocated credits applied for 37 under this paragraph in any year exceeds the aggregate amount of tax 38 credits allowed for such year under this paragraph, such excess shall be 39 treated as having been applied for on the first day of the next year. If 40 the total amount of allocated tax credits applied for under this para- 41 graph at the conclusion of any year is less than five million dollars, 42 the remainder shall be treated as part of the annual allocation for two 43 thousand seventeen made available to the empire state film post 44 production credit pursuant to paragraph four of subdivision (e) of 45 section twenty-four of this article. However, in no event may the total 46 of the credits allocated under this paragraph and the credits allocated 47 under paragraph five of subdivision (a) of section twenty-four of this 48 article exceed five million dollars in any year during the period two 49 thousand fifteen through two thousand [twenty-five] twenty-six. 50 § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as 51 separately amended by sections 3 and 4 of part M of chapter 59 of the 52 laws of 2020, is amended to read as follow: 53 (3) "Qualified film" means a feature-length film, television film, 54 relocated television production, television pilot or television series, 55 regardless of the medium by means of which the film, pilot or series is 56 created or conveyed. For the purposes of the credit provided by thisS. 2509--B 31 1 section only, a "qualified film" [with the exception of a television2pilot,] whose majority of principal photography shooting days in the 3 production of the qualified film are shot in Westchester, Rockland, 4 Nassau, or Suffolk county or any of the five New York City boroughs 5 shall have a minimum budget of one million dollars. A "qualified film", 6 [with the exception of a television pilot,] whose majority of principal 7 photography shooting days in the production of the qualified film are 8 shot in any other county of the state than those listed in the preceding 9 sentence shall have a minimum budget of two hundred fifty thousand 10 dollars. "Qualified film" shall not include: (i) a documentary film, 11 news or current affairs program, interview or talk program, "how-to" 12 (i.e., instructional) film or program, film or program consisting prima- 13 rily of stock footage, sporting event or sporting program, game show, 14 award ceremony, film or program intended primarily for industrial, 15 corporate or institutional end-users, fundraising film or program, 16 daytime drama (i.e., daytime "soap opera"), commercials, music videos or 17 "reality" program; (ii) a production for which records are required 18 under section 2257 of title 18, United States code, to be maintained 19 with respect to any performer in such production (reporting of books, 20 films, etc. with respect to sexually explicit conduct); or (iii) other 21 than a relocated television production, a television series commonly 22 known as variety entertainment, variety sketch and variety talk, i.e., a 23 program with components of improvisational or scripted content (mono- 24 logues, sketches, interviews), either exclusively or in combination with 25 other entertainment elements such as musical performances, dancing, 26 cooking, crafts, pranks, stunts, and games and which may be further 27 defined in regulations of the commissioner of economic development. 28 However, a qualified film shall include a television series as described 29 in subparagraph (iii) of this paragraph only if an application for such 30 series has been deemed conditionally eligible for the tax credit under 31 this section prior to April first, two thousand twenty, such series 32 remains in continuous production for each season, and an annual applica- 33 tion for each season of such series is continually submitted for such 34 series after April first, two thousand twenty. 35 § 6. This act shall take effect immediately; provided, however, that 36 the amendments made by section five of this act shall apply to applica- 37 tions that are filed with the governor's office for motion picture and 38 television development on or after April 1, 2021; provided, further, 39 however that the amendments to paragraph 4 of subdivision (e) of section 40 24 of the tax law made by section two of this act shall take effect on 41 the same date and in the same manner as section 5 of chapter 683 of the 42 laws of 2019, as amended, takes effect. 43 PART G 44 Intentionally Omitted 45 PART H 46 Intentionally Omitted 47 PART I 48 Intentionally Omitted 49 PART JS. 2509--B 32 1 Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b 2 of subdivision 4 of section 1008 and paragraph b of subdivision 5 of 3 section 1009 of the racing, pari-mutuel, wagering and breeding law are 4 REPEALED. 5 § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as 6 amended by chapter 32 of the laws of 2016, is amended to read as 7 follows: 8 (1) Any admission charge where such admission charge is in excess of 9 ten cents to or for the use of any place of amusement in the state, 10 except charges for admission to [race tracks or] combative sports which 11 charges are taxed under any other law of this state, or dramatic or 12 musical arts performances, or live circus performances, or motion 13 picture theaters, and except charges to a patron for admission to, or 14 use of, facilities for sporting activities in which such patron is to be 15 a participant, such as bowling alleys and swimming pools. For any person 16 having the permanent use or possession of a box or seat or a lease or a 17 license, other than a season ticket, for the use of a box or seat at a 18 place of amusement, the tax shall be upon the amount for which a similar 19 box or seat is sold for each performance or exhibition at which the box 20 or seat is used or reserved by the holder, licensee or lessee, and shall 21 be paid by the holder, licensee or lessee. 22 § 3. Subdivision (a) of section 1109 of the tax law, as amended by 23 section 1 of part BB of chapter 61 of the laws of 2005, is amended to 24 read as follows: 25 (a) General. In addition to the taxes imposed by sections eleven 26 hundred five and eleven hundred ten of this article, there is hereby 27 imposed within the territorial limits of the metropolitan commuter 28 transportation district created and established pursuant to section 29 twelve hundred sixty-two of the public authorities law, and there shall 30 be paid, additional taxes, at the rate of three-eighths of one percent, 31 which shall be identical to the taxes imposed by sections eleven hundred 32 five and eleven hundred ten of this article. Such sections and the other 33 sections of this article, including the definition and exemption 34 provisions, shall apply for purposes of the taxes imposed by this 35 section in the same manner and with the same force and effect as if the 36 language of those sections had been incorporated in full into this 37 section and had expressly referred to the taxes imposed by this section. 38 Notwithstanding the foregoing, the tax imposed by this section shall not 39 apply to admissions to race tracks or simulcast facilities. 40 § 4. Subdivision (a) of section 1146 of the tax law, as amended by 41 chapter 65 of the laws of 1985, is amended to read as follows: 42 (a) Except in accordance with proper judicial order or as otherwise 43 provided by law, it shall be unlawful for the [tax commission, any tax] 44 commissioner, any officer or employee of the department of taxation and 45 finance, any person engaged or retained by such department on an inde- 46 pendent contract basis, or any person who in any manner may acquire 47 knowledge of the contents of a return or report filed with the [tax48commission] commissioner pursuant to this article, to divulge or make 49 known in any manner any particulars set forth or disclosed in any such 50 return or report. The officers charged with the custody of such returns 51 and reports shall not be required to produce any of them or evidence of 52 anything contained in them in any action or proceeding in any court, 53 except on behalf of the [tax commission] commissioner in an action or 54 proceeding under the provisions of the tax law or in any other action or 55 proceeding involving the collection of a tax due under this chapter to 56 which the state or the [tax commission] commissioner is a party or aS. 2509--B 33 1 claimant, or on behalf of any party to any action, proceeding or hearing 2 under the provisions of this article when the returns, reports or facts 3 shown thereby are directly involved in such action, proceeding or hear- 4 ing, in any of which events the court, or in the case of a hearing, the 5 [tax commission] commissioner may require the production of, and may 6 admit into evidence, so much of said returns, reports or of the facts 7 shown thereby, as are pertinent to the action, proceeding or hearing and 8 no more. The [tax commission] commissioner may, nevertheless, publish a 9 copy or a summary of any decision rendered after a hearing required by 10 this article. Nothing herein shall be construed to prohibit the delivery 11 to a person who has filed a return or report or his duly authorized 12 representative of a certified copy of any return or report filed in 13 connection with his tax. Nor shall anything herein be construed to 14 prohibit the delivery to a person required to collect the tax under this 15 article or a purchaser, transferee or assignee personally liable under 16 the provisions of subdivision (c) of section eleven hundred forty-one of 17 this chapter for the tax due from the seller, transferor or assignor, of 18 any return or report filed under this article in connection with such 19 tax provided, however, that there may be delivered only so much of said 20 return, report or of the facts shown thereby as are pertinent to a 21 determination of the taxes due or liability owed by such person or 22 purchaser, transferee or assignee and no more or to prohibit the publi- 23 cation of statistics so classified as to prevent the identification of 24 particular returns or reports and the items thereof, or the inspection 25 by the attorney general or other legal representatives of the state of 26 the return or report of any person required to collect or pay the tax 27 who shall bring action to review the tax based thereon, or against whom 28 an action or proceeding under this chapter has been recommended by the 29 commissioner of taxation and finance or the attorney general or has been 30 instituted, or the inspection of the returns or reports required under 31 this article by the comptroller or duly designated officer or employee 32 of the state department of audit and control, for purposes of the audit 33 of a refund of any tax paid by a person required to collect or pay the 34 tax under this article. Provided, further, nothing herein shall be 35 construed to prohibit the disclosure, in such manner as the [tax commis-36sion] commissioner deems appropriate, of the names and other appropriate 37 identifying information of those persons holding certificates of author- 38 ity pursuant to section eleven hundred thirty-four of this article, 39 those persons whose certificates of authority have been suspended or 40 revoked, those persons whose certificates of authority have expired, 41 those persons who have filed a certificate of registration for a certif- 42 icate of authority where the [tax commission] commissioner has refused 43 to issue a certificate of authority, those persons holding direct 44 payment permits pursuant to section eleven hundred thirty-two or those 45 persons whose direct payment permits have been suspended or revoked by 46 the [tax commission] commissioner; and provided further that nothing 47 herein shall be construed to prohibit the disclosure, in such manner as 48 the commissioner deems appropriate, of information related to the tax on 49 admissions to race tracks and simulcast facilities to the gaming commis- 50 sion or the division of the budget. 51 § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 52 amended by section 2 of part WW, subparagraph (i) as separately amended 53 by section 5 of part Z of chapter 60 of the laws of 2016, is amended to 54 read as follows: 55 (1) Either, all of the taxes described in article twenty-eight of this 56 chapter, at the same uniform rate, as to which taxes all provisions ofS. 2509--B 34 1 the local laws, ordinances or resolutions imposing such taxes shall be 2 identical, except as to rate and except as otherwise provided, with the 3 corresponding provisions in such article twenty-eight, including the 4 definition and exemption provisions of such article, so far as the 5 provisions of such article twenty-eight can be made applicable to the 6 taxes imposed by such city or county and with such limitations and 7 special provisions as are set forth in this article. The taxes author- 8 ized under this subdivision may not be imposed by a city or county 9 unless the local law, ordinance or resolution imposes such taxes so as 10 to include all portions and all types of receipts, charges or rents, 11 subject to state tax under sections eleven hundred five and eleven 12 hundred ten of this chapter, except as otherwise provided. Notwith- 13 standing the foregoing, a tax imposed by a city or county authorized 14 under this subdivision shall not include the tax imposed on charges for 15 admission to race tracks and simulcast facilities under subdivision (f) 16 of section eleven hundred five of this chapter. (i) Any local law, ordi- 17 nance or resolution enacted by any city of less than one million or by 18 any county or school district, imposing the taxes authorized by this 19 subdivision, shall, notwithstanding any provision of law to the contra- 20 ry, exclude from the operation of such local taxes all sales of tangible 21 personal property for use or consumption directly and predominantly in 22 the production of tangible personal property, gas, electricity, refrig- 23 eration or steam, for sale, by manufacturing, processing, generating, 24 assembly, refining, mining or extracting; and all sales of tangible 25 personal property for use or consumption predominantly either in the 26 production of tangible personal property, for sale, by farming or in a 27 commercial horse boarding operation, or in both; and all sales of fuel 28 sold for use in commercial aircraft and general aviation aircraft; and, 29 unless such city, county or school district elects otherwise, shall omit 30 the provision for credit or refund contained in clause six of subdivi- 31 sion (a) or subdivision (d) of section eleven hundred nineteen of this 32 chapter. (ii) Any local law, ordinance or resolution enacted by any 33 city, county or school district, imposing the taxes authorized by this 34 subdivision, shall omit the residential solar energy systems equipment 35 and electricity exemption provided for in subdivision (ee), the commer- 36 cial solar energy systems equipment and electricity exemption provided 37 for in subdivision (ii), the commercial fuel cell electricity generating 38 systems equipment and electricity generated by such equipment exemption 39 provided for in subdivision (kk) and the clothing and footwear exemption 40 provided for in paragraph thirty of subdivision (a) of section eleven 41 hundred fifteen of this chapter, unless such city, county or school 42 district elects otherwise as to such residential solar energy systems 43 equipment and electricity exemption, such commercial solar energy 44 systems equipment and electricity exemption, commercial fuel cell elec- 45 tricity generating systems equipment and electricity generated by such 46 equipment exemption or such clothing and footwear exemption. 47 § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, 48 as amended by section 3 of part WW of chapter 60 of the laws of 2016, is 49 amended to read as follows: 50 (1) Or, one or more of the taxes described in subdivisions (b), (d), 51 (e) and (f) of section eleven hundred five of this chapter, at the same 52 uniform rate, including the transitional provisions in section eleven 53 hundred six of this chapter covering such taxes, but not the taxes 54 described in subdivisions (a) and (c) of section eleven hundred five of 55 this chapter. Provided, further, that where the tax described in subdi- 56 vision (b) of section eleven hundred five of this chapter is imposed,S. 2509--B 35 1 the compensating use taxes described in clauses (E), (G) and (H) of 2 subdivision (a) of section eleven hundred ten of this chapter shall also 3 be imposed. Provided, further, that where the taxes described in subdi- 4 vision (b) of section eleven hundred five of this chapter are imposed, 5 such taxes shall omit: (A) the provision for refund or credit contained 6 in subdivision (d) of section eleven hundred nineteen of this chapter 7 with respect to such taxes described in such subdivision (b) of section 8 eleven hundred five unless such city or county elects to provide such 9 provision or, if so elected, to repeal such provision; (B) the exemption 10 provided in paragraph two of subdivision (ee) of section eleven hundred 11 fifteen of this chapter unless such county or city elects otherwise; (C) 12 the exemption provided in paragraph two of subdivision (ii) of section 13 eleven hundred fifteen of this chapter, unless such county or city 14 elects otherwise; and (D) the exemption provided in paragraph two of 15 subdivision (kk) of section eleven hundred fifteen of this chapter, 16 unless such county or city elects otherwise; and provided further that 17 where the tax described in subdivision (f) of such section eleven 18 hundred five is imposed, such tax shall not apply to charges for admis- 19 sion to race tracks and simulcast facilities. 20 § 7. Notwithstanding any provisions of law to the contrary and 21 notwithstanding the repeal of sections 227, 306 and 406, subparagraph 22 (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of 23 subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and 24 breeding law by section one of this act, all provisions of such sections 25 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of 26 section 1008 and paragraph b of subdivision 5 of section 1009, in 27 respect to the imposition, exemption, assessment, payment, payment over, 28 determination, collection, and credit or refund of tax, interest and 29 penalty imposed thereunder, the filing of forms and returns, the preser- 30 vation of records for the purposes of such tax, the disposition of 31 revenues, and any civil and criminal penalties applicable to the 32 violation of the provisions of such sections 227, 306 and 406, subpara- 33 graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph 34 b of subdivision 5 of section 1009, shall continue in full force and 35 effect with respect to all such tax accrued for periods prior to the 36 effective date of this act in the same manner as they might if such 37 provisions were not repealed. 38 § 8. This act shall take effect November 1, 2021 and shall apply to 39 charges for admissions to race tracks and simulcast facilities on and 40 after such date. 41 PART K 42 Intentionally Omitted 43 PART L 44 Section 1. Subparagraph (i) of the opening paragraph of section 1210 45 of the tax law is REPEALED and a new subparagraph (i) is added to read 46 as follows: 47 (i) with respect to a city of one million or more and the following 48 counties: (1) any such city having a population of one million or more 49 is hereby authorized and empowered to adopt and amend local laws, ordi- 50 nances or resolutions imposing such taxes in any such city, at the rate 51 of four and one-half percent;S. 2509--B 36 1 (2) the following counties that impose taxes described in subdivision 2 (a) of this section at the rate of three percent as authorized above in 3 this paragraph are hereby further authorized and empowered to adopt and 4 amend local laws, ordinances, or resolutions imposing such taxes at 5 additional rates, in quarter percent increments, not to exceed the 6 following rates, which rates are additional to the three percent rate 7 authorized above in this paragraph: 8 (A) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua, 9 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, 10 Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Jefferson, Lewis, 11 Livingston, Madison, Monroe, Montgomery, Niagara, Onondaga, Ontario, 12 Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. 13 Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, 14 Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Westches- 15 ter, Wyoming, Yates; 16 (B) One and one-quarter percent - Herkimer, Nassau, Suffolk; 17 (C) One and one-half percent - Allegany; 18 (D) One and three-quarters percent - Erie, Oneida. 19 Provided, however, that (I) the county of Rockland may impose addi- 20 tional rates of five-eighths percent and three-eighths percent, in lieu 21 of imposing such additional rate in quarter percent increments; (II) the 22 county of Ontario may impose additional rates of one-eighth percent and 23 three-eighths percent, in lieu of imposing such additional rate in quar- 24 ter percent increments; (III) three-quarters percent of the additional 25 rate authorized to be imposed by the county of Nassau shall be subject 26 to the limitation set forth in section twelve hundred sixty-two-e of 27 this article. 28 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the 29 tax law is REPEALED and a new subparagraph (ii) is added to read as 30 follows: 31 (ii) the following cities that impose taxes described in subdivision 32 (a) of this section at the rate of one and one-half percent or higher as 33 authorized above in this paragraph for such cities are hereby further 34 authorized and empowered to adopt and amend local laws, ordinances, or 35 resolutions imposing such taxes at additional rates, in quarter percent 36 increments, not to exceed the following rates, which rates are addi- 37 tional to the one and one-half percent or higher rates authorized above 38 in this paragraph: 39 (1) One percent - Mount Vernon; New Rochelle; Oswego; White Plains; 40 (2) One and one quarter percent - None; 41 (3) One and one-half percent - Yonkers. 42 § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 43 1210 of the tax law are REPEALED and a new subparagraph (iii) is added 44 to read as follows: 45 (iii) the maximum rate referred to in section twelve hundred twenty- 46 four of this article shall be calculated without reference to the addi- 47 tional rates authorized for counties, other than the counties of Cayuga, 48 Cortland, Fulton, Madison, and Otsego, in clause two of subparagraph (i) 49 and the cities in subparagraph (ii) of this paragraph. 50 § 4. Section 1210 of the tax law is amended by adding a new subdivi- 51 sion (p) to read as follows: 52 (p) Notwithstanding any provision of this section or other law to the 53 contrary, a county authorized to impose an additional rate or rates of 54 sales and compensating use taxes by clause two of subparagraph (i) of 55 the opening paragraph of this section, or a city, other than the city of 56 Mount Vernon, authorized to impose an additional rate of such taxes byS. 2509--B 37 1 subparagraph (ii) of such opening paragraph, may adopt a local law, 2 ordinance or resolution by a majority vote of its governing body impos- 3 ing such rate or rates for a period not to exceed two years, and any 4 such period must end on November thirtieth of an odd-numbered year. 5 Notwithstanding the preceding sentence, the city of White Plains is 6 authorized to exceed such two-year limitation to impose the tax author- 7 ized by subparagraph (ii) of such opening paragraph for the period 8 commencing on September first, two thousand twenty-one and ending on 9 November thirtieth, two thousand twenty-three. Any such local law, ordi- 10 nance, or resolution shall also be subject to the provisions of subdivi- 11 sions (d) and (e) of this section. 12 § 5. Section 1210-E of the tax law is REPEALED. 13 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), 14 (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), 15 (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 16 1224 of the tax law are REPEALED. 17 § 7. Section 1224 of the tax law is amended by adding three new subdi- 18 visions (d), (e), and (f) to read as follows: 19 (d) For purposes of this section, the term "prior right" shall mean 20 the preferential right to impose any tax described in sections twelve 21 hundred two and twelve hundred three, or twelve hundred ten and twelve 22 hundred eleven, of this article and thereby to preempt such tax and to 23 preclude another municipal corporation from imposing or continuing the 24 imposition of such tax to the extent that such right is exercised. 25 However, the right of preemption shall only apply within the territorial 26 limits of the taxing jurisdiction having the right of preemption. 27 (e) Each of the following counties and cities shall have the sole 28 right to impose the following additional rate of sales and compensating 29 use taxes in excess of three percent that such county or city is author- 30 ized to impose pursuant to clause two of subparagraph (i) or subpara- 31 graph (ii) of the opening paragraph of section twelve hundred ten of 32 this article. Such additional rates of tax shall not be subject to 33 preemption. 34 (1) Counties: 35 (A) One percent - Albany, Broome, Cattaraugus, Chautauqua, Chemung, 36 Chenango, Clinton, Columbia, Delaware, Dutchess, Essex, Franklin, Gene- 37 see, Greene, Hamilton, Jefferson, Lewis, Livingston, Monroe, Montgomery, 38 Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Putnam, Rensselaer, 39 Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, 40 Seneca, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, 41 Wayne, Westchester, Wyoming, Yates; 42 (B) One and one-quarter percent - Herkimer, Nassau, Suffolk; 43 (C) One and one-half percent - Allegany; 44 (D) One and three-quarters percent - Erie, Oneida; 45 Provided, however that the county of Westchester shall have the sole 46 right to impose the additional one percent rate of tax authorized by 47 clause two of subparagraph (i) of the opening paragraph of section 48 twelve hundred ten of this article in the area of such county outside 49 the cities of Mount Vernon, New Rochelle, White Plains and Yonkers. 50 (2) Cities: 51 (A) One-quarter of one percent - Rome; 52 (B) One-half of one percent - None; 53 (C) Three-quarters of one percent - None; 54 (D) One percent - Mount Vernon, New Rochelle, White Plains; 55 (E) One and one quarter percent - None; 56 (F) One and one-half percent - Yonkers.S. 2509--B 38 1 (f) Each of the following cities is authorized to preempt the taxes 2 imposed by the county in which it is located pursuant to the authority 3 of section twelve hundred ten of this article, to the extent of one-half 4 the maximum aggregate rate authorized under section twelve hundred ten 5 of this article, including the additional rate that the county in which 6 such city is located is authorized to impose: Auburn, in Cayuga county; 7 Cortland, in Cortland county; Gloversville and Johnstown, in Fulton 8 county; Oneida, in Madison county; Oneonta, in Otsego county. As of the 9 date this subdivision takes effect, any such preemption by such a city 10 in effect on such date shall continue in full force and effect until the 11 effective date of a local law, ordinance, or resolution adopted or 12 amended by the city to change such preemption. Any preemption by such a 13 city pursuant to this subdivision that takes effect after the effective 14 date of this subdivision shall be subject to the notice requirements in 15 section twelve hundred twenty-three of this subpart and to the other 16 requirements of this article. 17 § 8. Section 1262-g of the tax law, as amended by section 2 of item DD 18 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 19 to read as follows: 20 § 1262-g. Oneida county allocation and distribution of net collections 21 from the additional [one percent rate] rates of sales and compensating 22 use taxes. Notwithstanding any contrary provision of law, (a) if the 23 county of Oneida imposes sales and compensating use taxes at a rate 24 which is one percent additional to the three percent rate authorized by 25 section twelve hundred ten of this article, as authorized by such 26 section, [(a)] (i) where a city in such county imposes tax pursuant to 27 the authority of subdivision (a) of such section twelve hundred ten, 28 such county shall allocate, distribute and pay in cash quarterly to such 29 city one-half of the net collections attributable to such additional one 30 percent rate of the county's taxes collected in such city's boundaries; 31 [(b)] (ii) where a city in such county does not impose tax pursuant to 32 the authority of such subdivision (a) of such section twelve hundred 33 ten, such county shall allocate, distribute and pay in cash quarterly to 34 such city not so imposing tax a portion of the net collections attribut- 35 able to one-half of the county's additional one percent rate of tax 36 calculated on the basis of the ratio which such city's population bears 37 to the county's total population, such populations as determined in 38 accordance with the latest decennial federal census or special popu- 39 lation census taken pursuant to section twenty of the general municipal 40 law completed and published prior to the end of the quarter for which 41 the allocation is made, which special census must include the entire 42 area of the county; [and (c)] provided, however, that such county shall 43 dedicate the first one million five hundred thousand dollars of net 44 collections attributable to such additional one percent rate of tax 45 received by such county after the county receives in the aggregate eigh- 46 teen million five hundred thousand dollars of net collections from such 47 additional one percent rate of tax [imposed for any of the periods:48September first, two thousand twelve through August thirty-first, two49thousand thirteen; September first, two thousand thirteen through August50thirty-first, two thousand fourteen; and September first, two thousand51fourteen through August thirty-first, two thousand fifteen; September52first, two thousand fifteen through August thirty-first, two thousand53sixteen; and September first, two thousand sixteen through August thir-54ty-first, two thousand seventeen; September first, two thousand seven-55teen through August thirty-first, two thousand eighteen; September56first, two thousand eighteen through August thirty-first, two thousandS. 2509--B 39 1twenty; and September first, two thousand twenty through August thirty-2first, two thousand twenty-three,] to an allocation on a per capita 3 basis, utilizing figures from the latest decennial federal census or 4 special population census taken pursuant to section twenty of the gener- 5 al municipal law, completed and published prior to the end of the year 6 for which such allocation is made, which special census must include the 7 entire area of such county, to be allocated and distributed among the 8 towns of Oneida county by appropriation of its board of legislators; 9 provided, further, that nothing herein shall require such board of 10 legislators to make any such appropriation until it has been notified by 11 any town by appropriate resolution and, in any case where there is a 12 village wholly or partly located within a town, a resolution of every 13 such village, embodying the agreement of such town and village or 14 villages upon the amount of such appropriation to be distributed to such 15 village or villages out of the allocation to the town or towns in which 16 it is located. 17 (b) if the county of Oneida imposes sales and compensating use taxes 18 at a rate which is one and three-quarters percent additional to the 19 three percent rate authorized by section twelve hundred ten of this 20 article, as authorized pursuant to clause two of subparagraph (i) of the 21 opening paragraph of section twelve hundred ten of this article, net 22 collections attributable to the additional three-quarters percent of 23 such additional rate shall not be subject to any revenue distribution 24 agreement entered into by the county and the cities in the county pursu- 25 ant to the authority of subdivision (c) of section twelve hundred 26 sixty-two of this part. 27 § 9. The opening paragraph of section 1262-r of the tax law, as added 28 by chapter 37 of the laws of 2006, is amended to read as follows: 29 (1) Notwithstanding any contrary provision of law, if the county of 30 Ontario imposes the additional one-eighth of one percent and the addi- 31 tional three-eighths of one percent rates of tax authorized pursuant to 32 clause two of subparagraph (i) of the opening paragraph of section 33 twelve hundred ten of this article, net collections from the such addi- 34 tional three-eighths of one percent rate of such taxes shall be set 35 aside for county purposes and shall not be subject to any agreement 36 entered into by the county and the cities in the county pursuant to the 37 authority of subdivision (c) of section twelve hundred sixty-two of this 38 part or this section. 39 (2) Notwithstanding the provisions of subdivision (c) of section 40 twelve hundred sixty-two of this part to the contrary, if the cities of 41 Canandaigua and Geneva in the county of Ontario do not impose sales and 42 compensating use taxes pursuant to the authority of section twelve 43 hundred ten of this article and such cities and county enter into an 44 agreement pursuant to the authority of subdivision (c) of section twelve 45 hundred sixty-two of this part to be effective March first, two thousand 46 six, such agreement may provide that: 47 § 10. The tax law is amended by adding a new section 1262-v to read as 48 follows: 49 § 1262-v. Disposition of net collections from the additional rate of 50 sales and compensating use tax in Clinton county. Notwithstanding any 51 contrary provision of law, if the county of Clinton imposes the addi- 52 tional one percent rate of sales and compensating use taxes authorized 53 pursuant to clause two of subparagraph (i) of the opening paragraph of 54 section twelve hundred ten of this article, net collections from such 55 additional rate shall be paid to the county and the county shall set 56 aside such net collections and use them solely for county purposes. SuchS. 2509--B 40 1 net collections shall not be subject to any revenue distribution agree- 2 ment entered into by the county and the city in the county pursuant to 3 the authority of subdivision (c) of section twelve hundred sixty-two of 4 this part. 5 § 11. Section 1262-s of the tax law, as amended by section 3 of item U 6 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 7 to read as follows: 8 § 1262-s. Disposition of net collections from the additional one-quar- 9 ter of one percent rate of sales and compensating use taxes in the coun- 10 ty of Herkimer. Notwithstanding any contrary provision of law, if the 11 county of Herkimer imposes [the additional] sales and compensating use 12 tax at a rate that is one and one-quarter [of one] percent [rate of13sales and compensating use taxes] additional to the three percent rate 14 authorized by section twelve hundred ten of this article, as authorized 15 by [section twelve hundred ten-E] clause two of subparagraph (i) of the 16 opening paragraph of section twelve hundred ten of this article [for all17or any portion of the period beginning December first, two thousand18seven and ending November thirtieth, two thousand twenty-three], the 19 county shall use all net collections [from such] attributable to the 20 additional one-quarter [of one] percent of such additional rate to pay 21 the county's expenses for the construction of additional correctional 22 facilities. The net collections from [the] such additional one-quarter 23 percent of such additional rate [imposed pursuant to section twelve24hundred ten-E of this article] shall be deposited in a special fund to 25 be created by such county separate and apart from any other funds and 26 accounts of the county. Any and all remaining net collections from such 27 additional tax, after the expenses of such construction are paid, shall 28 be deposited by the county of Herkimer in the general fund of such coun- 29 ty for any county purpose. 30 § 12. The tax law is amended by adding a new section 1265 to read as 31 follows: 32 § 1265. References to certain provisions authorizing additional rates 33 or to expirations of a period. Notwithstanding any provision of law to 34 the contrary: (a) any reference in any section of this chapter or other 35 law, or in any local law, ordinance, or resolution adopted pursuant to 36 the authority of this article, to net collections or revenues from a tax 37 imposed by a county or city pursuant to the authority of a clause, or to 38 a subclause of a clause, of subparagraph (i) or (ii) of the opening 39 paragraph of section twelve hundred ten of this article repealed by 40 section one or two of the chapter of the laws of two thousand twenty-one 41 that added this section or pursuant to section twelve hundred ten-E of 42 this article repealed by section five of such chapter shall be deemed to 43 be a reference to net collections or revenues from a tax imposed by that 44 county or city pursuant to the authority of the equivalent provision of 45 clause two of subparagraph (i) or to subparagraph (ii) of the opening 46 paragraph of such section twelve hundred ten as added by such section 47 one or two of such chapter of the laws of two thousand twenty-one; (b) 48 any reference in this chapter or in any other law relating to the expi- 49 ration of a provision concerning the distribution of revenue from the 50 taxes authorized to be imposed by the opening paragraph of section 51 twelve hundred ten of this article shall be disregarded, and such 52 provision shall continue in effect unless later amended or repealed. 53 § 13. This act shall take effect immediately. 54 PART MS. 2509--B 41 1 Section 1. Subdivision (jj) of section 1115 of the tax law, as amended 2 by section 1 of part V of chapter 59 of the laws of 2019, is amended to 3 read as follows: 4 (jj) Tangible personal property or services otherwise taxable under 5 this article sold to a related person shall not be subject to the taxes 6 imposed by section eleven hundred five of this article or the compensat- 7 ing use tax imposed under section eleven hundred ten of this article 8 where the purchaser can show that the following conditions have been met 9 to the extent they are applicable: (1)(i) the vendor and the purchaser 10 are referenced as either a "covered company" as described in section 11 243.2(f) or a "material entity" as described in section 243.2(l) of the 12 Code of Federal Regulations in a resolution plan that has been submitted 13 to an agency of the United States for the purpose of satisfying subpara- 14 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 15 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 16 successor law, or (ii) the vendor and the purchaser are separate legal 17 entities pursuant to a divestiture directed pursuant to subparagraph 5 18 of paragraph (d) of section one hundred sixty-five of such act or any 19 successor law; (2) the sale would not have occurred between such related 20 entities were it not for such resolution plan or divestiture; and (3) in 21 acquiring such property or services, the vendor did not claim an 22 exemption from the tax imposed by this state or another state based on 23 the vendor's intent to resell such services or property. A person is 24 related to another person for purposes of this subdivision if the person 25 bears a relationship to such person described in section two hundred 26 sixty-seven of the internal revenue code. The exemption provided by this 27 subdivision shall not apply to sales made, services rendered, or uses 28 occurring after June thirtieth, two thousand [twenty-one] twenty-four, 29 except with respect to sales made, services rendered, or uses occurring 30 pursuant to binding contracts entered into on or before such date; but 31 in no case shall such exemption apply after June thirtieth, two thousand 32 [twenty-four] twenty-seven. 33 § 2. This act shall take effect immediately. 34 PART N 35 Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of 36 section 1134 of the tax law, as amended by section 160 of part A of 37 chapter 389 of the laws of 1997, is amended to read as follows: 38 (vi) every person described in subparagraph (i), (ii), (iii), (iv) or 39 (v) of this paragraph or every person who is a vendor solely by reason 40 of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of 41 subdivision (b) of section eleven hundred one of this article who or 42 which has had its certificate of authority revoked under paragraph four 43 of this subdivision, shall file with the commissioner a certificate of 44 registration, in a form prescribed by the commissioner, at least twenty 45 days prior to commencing business or opening a new place of business or 46 such purchasing, selling or taking of possession or payment, whichever 47 comes first. Every person who is a vendor solely by reason of clause (D) 48 of subparagraph (i) of paragraph eight of subdivision (b) of section 49 eleven hundred one of this article shall file with the commissioner a 50 certificate of registration, in a form prescribed by such commissioner, 51 within thirty days after the day on which the cumulative total number of 52 occasions that such person came into the state to deliver property or 53 services, for the immediately preceding four quarterly periods ending on 54 the last day of February, May, August and November, exceeds twelve.S. 2509--B 42 1 Every person who is a vendor solely by reason of clause (E) of subpara- 2 graph (i) of paragraph eight of subdivision (b) of section eleven 3 hundred one of this article shall file with the commissioner a certif- 4 icate of registration, in a form prescribed by such commissioner, within 5 thirty days after the day on which the cumulative total, for the imme- 6 diately preceding four quarterly periods ending on the last day of 7 February, May, August and November, of such person's gross receipts from 8 sales of property delivered in this state exceeds [three] five hundred 9 thousand dollars and number of such sales exceeds one hundred. Every 10 person who is a vendor solely by reason of clause (F) of subparagraph 11 (i) of paragraph eight of subdivision (b) of section eleven hundred one 12 of this article shall file with the commissioner a certificate of regis- 13 tration, in a form prescribed by such commissioner, within thirty days 14 after the day on which tangible personal property in which such person 15 retains an ownership interest is brought into this state by the person 16 to whom such property is sold, where the person to whom such property is 17 sold becomes or is a resident or uses such property in any manner in 18 carrying on in this state any employment, trade, business or profession. 19 Information with respect to the notice requirements of a purchaser, 20 transferee or assignee and such person's liability pursuant to the 21 provisions of subdivision (c) of section eleven hundred forty-one of 22 this chapter shall be included in or accompany the certificate of regis- 23 tration form furnished the applicant. The commissioner shall also 24 include with such information furnished to each applicant general infor- 25 mation about the tax imposed under this article including information on 26 records to be kept, returns and payments, notification requirements and 27 forms. Such certificate of registration may be amended in accordance 28 with rules promulgated by the commissioner. 29 § 2. This act shall take effect immediately. 30 PART O 31 Section 1. Subdivision (a) of section 1401 of the tax law, as amended 32 by chapter 576 of the laws of 1994, is amended to read as follows: 33 (a) (1) "Person" means an individual, partnership, limited liability 34 company, society, association, joint stock company, corporation, estate, 35 receiver, trustee, assignee, referee or any other person acting in a 36 fiduciary or representative capacity, whether appointed by a court or 37 otherwise, any combination of individuals, and any other form of unin- 38 corporated enterprise owned or conducted by two or more persons. 39 (2) "Person" shall include any individual, corporation, partnership or 40 limited liability company or an officer or employee of any corporation 41 (including a dissolved corporation), or a member or employee of any 42 partnership, or a member, manager or employee of a limited liability 43 company, who as such officer, employee, manager or member is under a 44 duty to act for such corporation, partnership, limited liability company 45 or individual proprietorship in complying with any requirement of this 46 article, or has so acted. 47 § 2. Subdivision (a) of section 1404 of the tax law, as amended by 48 chapter 61 of the laws of 1989, is amended to read as follows: 49 (a) The real estate transfer tax imposed pursuant to section fourteen 50 hundred two of this article shall be paid by the grantor and such tax 51 shall not be payable, directly or indirectly, by the grantee except as 52 provided in a contract between grantor and grantee or as otherwise 53 provided in this section. If the grantor has failed to pay the tax 54 imposed by this article at the time required by section fourteen hundredS. 2509--B 43 1 ten of this article or if the grantor is exempt from such tax, the gran- 2 tee shall have the duty to pay the tax. Where the grantee has the duty 3 to pay the tax because the grantor has failed to pay, such tax shall be 4 the joint and several liability of the grantor and the grantee; provided 5 that in the event of such failure, the grantee shall have a cause of 6 action against the grantor for recovery of payment of such tax, interest 7 and penalties by the grantee. In the case of a conveyance of residen- 8 tial real property as defined in subdivision (a) of section fourteen 9 hundred two-a of this article, if the tax imposed by this article is 10 paid by the grantee pursuant to a contract between the grantor and the 11 grantee, the amount of such tax shall be excluded from the calculation 12 of consideration subject to tax under this article. 13 § 3. Subdivision (a) of section 1409 of the tax law, as amended 14 § 3. Subdivision (a) of section 1409 of the tax law, as amended by 15 chapter 297 of the laws of 2019, is amended to read as follows: 16 (a) (1) A joint return shall be filed by both the grantor and the 17 grantee for each conveyance whether or not a tax is due thereon other 18 than a conveyance of an easement or license to a public utility as 19 defined in subdivision two of section one hundred eighty-six-a of this 20 chapter or to a public utility which is a provider of telecommunication 21 services as defined in subdivision one of section one hundred eighty- 22 six-e of this chapter, where the consideration is two dollars or less 23 and is clearly stated as actual consideration in the instrument of 24 conveyance. 25 (2) When the grantor or grantee of a deed for a building used as resi- 26 dential real property containing [one- to four-] up to four family 27 dwelling units is a limited liability company, the joint return shall 28 not be accepted for filing unless it is accompanied by a document which 29 identifies the names and business addresses of all members, managers, 30 and any other authorized persons, if any, of such limited liability 31 company and the names and business addresses or, if none, the business 32 addresses of all shareholders, directors, officers, members, managers 33 and partners of any limited liability company or other business entity 34 that are to be the members, managers or authorized persons, if any, of 35 such limited liability company. The identification of such names and 36 addresses shall not be deemed an unwarranted invasion of personal priva- 37 cy pursuant to article six of the public officers law. If any such 38 member, manager or authorized person of the limited liability company is 39 itself a limited liability company or other business entity other than a 40 publicly traded entity, a REIT, a UPREIT, or a mutual fund, the names 41 and addresses of the shareholders, directors, officers, members, manag- 42 ers and partners of the limited liability company or other business 43 entity shall also be disclosed until full disclosure of ultimate owner- 44 ship by natural persons is achieved. For purposes of this subdivision, 45 the terms "members", "managers", "authorized person", "limited liability 46 company" and "other business entity" shall have the same meaning as 47 those terms are defined in section one hundred two of the limited 48 liability company law. 49 (3) The return shall be filed with the recording officer before the 50 instrument effecting the conveyance may be recorded. However, if the tax 51 is paid to the commissioner pursuant to section fourteen hundred ten of 52 this article, the return shall be filed with such commissioner at the 53 time the tax is paid. In that instance, a receipt evidencing the filing 54 of the return and the payment of tax shall be filed with the recording 55 officer before the instrument effecting the conveyance may be recorded.S. 2509--B 44 1 The recording officer shall handle such receipt in the same manner as a 2 return filed with the recording officer. 3 § 4. Subdivision (h) of section 1418 of the tax law, as added by 4 section 7 of part X of chapter 56 of the laws of 2010 and as further 5 amended by subdivision (c) of section 1 of part W of chapter 56 of the 6 laws of 2010, is amended to read as follows: 7 (h) Notwithstanding the provisions of subdivision (a) of this section, 8 the commissioner may furnish information relating to real property 9 transfers obtained or derived from returns filed pursuant to this arti- 10 cle in relation to the real estate transfer tax, to the extent that such 11 information is also required to be reported to the commissioner by 12 section three hundred thirty-three of the real property law and section 13 five hundred seventy-four of the real property tax law and the rules 14 adopted thereunder, provided such information was collected through a 15 combined process established pursuant to an agreement entered into with 16 the commissioner pursuant to paragraph viii of subdivision one-e of 17 section three hundred thirty-three of the real property law. The commis- 18 sioner may redisclose such information to the extent authorized by 19 section five hundred seventy-four of the real property tax law. The 20 commissioner may also disclose any information reported pursuant to 21 paragraph two of subdivision (a) of section fourteen hundred nine of 22 this article. 23 § 5. This act shall take effect immediately; provided however that 24 sections one and two of this act shall take effect July 1, 2021, and 25 shall apply to conveyances occurring on or after such date other than 26 conveyances that are made pursuant to binding written contracts entered 27 into on or before April 1, 2021, provided that the date of execution of 28 such contract is confirmed by independent evidence, such as the record- 29 ing of the contract, payment of a deposit or other facts and circum- 30 stances as determined by the commissioner of taxation and finance. 31 PART P 32 Section 1. Section 480-a of the tax law is amended by adding a new 33 subdivision 6 to read as follows: 34 6. (a) No retail dealer who has its retail dealer registration 35 cancelled, suspended or revoked pursuant to this section or has been 36 forbidden from selling cigarettes or tobacco products pursuant to para- 37 graph (j) of subdivision one of section four hundred eighty of this 38 article shall possess cigarettes or tobacco products in any place of 39 business, cart, stand, truck or other merchandising device in this state 40 beginning on the tenth day after such cancellation, suspension, revoca- 41 tion, or forbiddance and continuing for the duration of the same; 42 provided however, such retail dealer shall not be prohibited before the 43 tenth day after such cancellation, suspension, revocation, or forbid- 44 dance from selling or transferring its inventory of lawfully stamped 45 cigarettes or tobacco products on which the taxes imposed by this arti- 46 cle have been assumed or paid to a properly registered retail dealer 47 whose registration is not cancelled, suspended, or revoked or who has 48 not been forbidden from selling cigarettes or tobacco products. 49 (b) No retail dealer shall possess cigarettes or tobacco products in 50 any place of business, cart, stand, truck or other merchandising device 51 in this state unless it has obtained a valid retail dealer registration 52 from the commissioner. 53 (c) The possession of cigarettes or tobacco products in violation of 54 paragraph (a) or (b) of this subdivision shall be presumptive evidenceS. 2509--B 45 1 that such cigarettes or tobacco products are being sold in violation of 2 this section and section four hundred eighty of this article and, in 3 addition to any other applicable penalties, shall be subject to the 4 penalties authorized by subdivision three of this section. 5 § 2. Subparagraph (A) of paragraph (4) of subdivision (a) of section 6 eleven hundred thirty-four of the tax law, as amended by chapter 59 of 7 the laws of 2020, is amended to read as follows: (A) Where a person who 8 holds a certificate of authority (i) willfully fails to file a report or 9 return required by this article, (ii) willfully files, causes to be 10 filed, gives or causes to be given a report, return, certificate or 11 affidavit required under this article which is false, (iii) willfully 12 fails to comply with the provisions of paragraph two or three of subdi- 13 vision (e) of section eleven hundred thirty-seven of this article, (iv) 14 willfully fails to prepay, collect, truthfully account for or pay over 15 any tax imposed under this article or pursuant to the authority of arti- 16 cle twenty-nine of this chapter, (v) fails to obtain a bond pursuant to 17 paragraph two of subdivision (e) of section eleven hundred thirty-seven 18 of this part, or fails to comply with a notice issued by the commission- 19 er pursuant to paragraph three of such subdivision, (vi) has been 20 convicted of a crime provided for in this chapter, [or] (vii) where such 21 person, or any person affiliated with such person as such term is 22 defined in subdivision twenty-one of section four hundred seventy of 23 this chapter, has had a retail dealer registration issued pursuant to 24 section four hundred eighty-a of this chapter revoked pursuant to 25 subparagraph (iii) of paragraph (a) of subdivision four of such section 26 four hundred eighty-a, or (viii) has not obtained a valid retail dealer 27 registration under section four hundred eighty-a of this chapter and 28 such person possesses or sells unstamped or unlawfully stamped packages 29 of cigarettes three or more times within a period of five years, the 30 commissioner may revoke or suspend such certificate of authority and all 31 duplicates thereof. Provided, however, that the commissioner may revoke 32 or suspend a certificate of authority based on (a) the grounds set forth 33 in clause (vi) of this subparagraph only where the conviction referred 34 to occurred not more than one year prior to the date of revocation or 35 suspension; and provided further that where the commissioner revokes or 36 suspends a certificate of authority based on the grounds set forth in 37 clause (vii) of this subparagraph, such suspension or revocation shall 38 continue for as long as the revocation of the retail dealer registration 39 pursuant to section four hundred eighty-a of this chapter remains in 40 effect, or (b) the grounds set forth in clause (viii) of this subpara- 41 graph, such suspension or revocation shall be for a period of five 42 years. 43 § 3. Subparagraph (B) of paragraph (4) of subdivision (a) of section 44 eleven hundred thirty-four of the tax law, as amended by chapter 59 of 45 the laws of 2020, is amended to read as follows: 46 (B) Where a person files a certificate of registration for a certif- 47 icate of authority under this subdivision and in considering such appli- 48 cation the commissioner ascertains that (i) any tax imposed under this 49 chapter or any related statute, as defined in section eighteen hundred 50 of this chapter, has been finally determined to be due from such person 51 and has not been paid in full, (ii) a tax due under this article or any 52 law, ordinance or resolution enacted pursuant to the authority of arti- 53 cle twenty-nine of this chapter has been finally determined to be due 54 from an officer, director, partner or employee of such person, and, 55 where such person is a limited liability company, also a member or 56 manager of such person, in the officer's, director's, partner's,S. 2509--B 46 1 member's, manager's or employee's capacity as a person required to 2 collect tax on behalf of such person or another person and has not been 3 paid, (iii) such person has been convicted of a crime provided for in 4 this chapter within one year from the date on which such certificate of 5 registration is filed, (iv) an officer, director, partner or employee of 6 such person, and, where such person is a limited liability company, also 7 a member or manager of such person, which officer, director, partner, 8 member, manager or employee is a person required to collect tax on 9 behalf of such person filing a certificate of registration has in the 10 officer's, director's, partner's, member's, manager's or employee's 11 capacity as a person required to collect tax on behalf of such person or 12 of another person been convicted of a crime provided for in this chapter 13 within one year from the date on which such certificate of registration 14 is filed, (v) a shareholder owning more than fifty percent of the number 15 of shares of stock of such person (where such person is a corporation) 16 entitling the holder thereof to vote for the election of directors or 17 trustees, who owned more than fifty percent of the number of such shares 18 of another person (where such other person is a corporation) at the time 19 any tax imposed under this chapter or any related statute as defined in 20 section eighteen hundred of this chapter was finally determined to be 21 due and where such tax has not been paid in full, or at the time such 22 other person was convicted of a crime provided for in this chapter with- 23 in one year from the date on which such certificate of registration is 24 filed, (vi) a certificate of authority issued to such person has been 25 revoked or suspended pursuant to subparagraph (A) of this paragraph 26 within one year from the date on which such certificate of registration 27 is filed, [or] (vii) a retail dealer registration issued pursuant to 28 section four hundred eighty-a of this chapter to such person, or to any 29 person affiliated with such person as such term is defined in subdivi- 30 sion twenty-one of section four hundred seventy of this chapter, has 31 been revoked pursuant to subparagraph (iii) of paragraph (a) of subdivi- 32 sion four of such section four hundred eighty-a, where such revocation 33 remains in effect, or (viii) such person has not obtained a valid retail 34 dealer registration under section four hundred eighty-a of this chapter 35 and has possessed or sold unstamped or unlawfully stamped packages of 36 cigarettes three or more times within a period of five years, the 37 commissioner may refuse to issue a certificate of authority; provided 38 however that under the circumstances described in clause (viii) of this 39 subparagraph, such person shall not be eligible to submit a certificate 40 of registration for a certificate of authority until five years after 41 its last possession or sale of unstamped or unlawfully stamped packages 42 of cigarettes within such five year period. 43 § 4. Any retail dealer who, prior to the effective date of this act, 44 had its retail dealer registration cancelled, suspended, or revoked 45 pursuant to section four hundred eighty-a of the tax law or was forbid- 46 den from selling cigarettes or tobacco products pursuant to paragraph 47 (j) of subdivision one of section four hundred eighty of the tax law and 48 such cancellation, suspension, revocation, or forbiddance remains in 49 effect as of the effective date of this act, shall be prohibited from 50 possessing cigarettes and tobacco products beginning on the tenth day 51 after the effective date of this act and continuing for as long as such 52 cancellation, suspension, revocation, or forbiddance shall remain in 53 effect; provided however, such retail dealer shall not be prohibited 54 before the tenth day after the effective date of this act from selling 55 or transferring its inventory of lawfully stamped cigarettes or tobacco 56 products on which the taxes imposed by this article have been assumed orS. 2509--B 47 1 paid to a properly registered retail dealer whose registration is not 2 cancelled, suspended, or revoked or who has not been forbidden from 3 selling cigarettes or tobacco products. 4 § 5. This act shall take effect immediately. 5 PART Q 6 Section 1. Subdivision 1 of section 429 of the tax law, as amended by 7 chapter 433 of the laws of 1978, is amended to read as follows: 8 1. Every distributor, noncommercial importer or other person shall, on 9 or before the twentieth day of each month, file with the department of 10 taxation and finance a return, on forms to be prescribed by the [tax11commission] commissioner and furnished by such department, stating sepa- 12 rately the number of gallons, or lesser quantity, of beers, and the 13 number of liters, or lesser quantity, of wines and liquors sold or used 14 by such distributor, noncommercial importer or other person in this 15 state during the preceding calendar month, except that the [tax commis-16sion] commissioner may, if [it] he or she deems it necessary [in order] 17 to [insure] facilitate the efficient reporting and payment of the tax 18 imposed by this article, require returns to be made at such times and 19 covering such periods as [it] he or she may deem necessary. Such return 20 shall contain such further information as the [tax commission] commis- 21 sioner shall require. The fact that the name of the distributor, noncom- 22 mercial importer or other person is signed to a filed return shall be 23 prima facie evidence for all purposes that the return was actually 24 signed by such distributor, noncommercial importer or other person. 25 § 2. Section 505 of the tax law, as amended by section 2 of part E of 26 chapter 60 of the laws of 2007, is amended to read as follows: 27 § 505. Returns. Every carrier subject to this article and every carri- 28 er to whom a certificate of registration was issued shall file on or 29 before the last day of each month a return for the preceding calendar 30 month where a carrier's total tax liability under this article for the 31 preceding calendar year exceeded [four] twelve thousand dollars. Where a 32 carrier's total tax liability under this article for the preceding 33 calendar year did not exceed [four] twelve thousand dollars or where a 34 carrier was not subject to such tax in the preceding calendar year, 35 returns shall be filed quarterly, on or before the last day of the 36 calendar month following each of the calendar quarters: January through 37 March, April through June, July through September and October through 38 December. Provided, however, if the commissioner consents thereto in 39 writing, any carrier may file a return on or before the thirtieth day 40 after the close of any different period, if the carrier's books are 41 regularly kept on a periodic basis other than a calendar month or quar- 42 ter. The commissioner may permit the filing of returns on an annual 43 basis, provided the carrier was subject to the tax under this article 44 during the entire preceding calendar year and the carrier's total tax 45 liability under this article for such year did not exceed [two hundred46fifty] twelve hundred dollars. Such annual returns shall be filed on or 47 before January thirty-first of the succeeding calendar year. Returns 48 shall be filed with the commissioner on forms to be furnished by such 49 commissioner for such purpose and shall contain such data, information 50 or matter as the commissioner may require to be included therein. The 51 fact that a carrier's name is signed to a filed return shall be prima 52 facie evidence for all purposes that the return was actually signed by 53 such carrier. The commissioner may grant a reasonable extension of time 54 for filing returns whenever good cause exists and may waive the filingS. 2509--B 48 1 of returns if a carrier is not subject to the tax imposed by this arti- 2 cle for the period covered by the return. Every return shall have 3 annexed thereto a certification to the effect that the statements 4 contained therein are true. 5 § 3. This act shall take effect immediately; provided, however, that 6 section two of this act shall apply to tax returns for taxable periods 7 beginning on or after January 1, 2022. 8 PART R 9 Section 1. Section 1280 of the tax law is amended by adding a new 10 subdivision (v) to read as follows: 11 (v) "Technology service provider" or "TSP" means a person that acts by 12 employment, contract or otherwise on behalf of one or more taxicab 13 owners or HAIL vehicle owners to collect the trip record for a taxicab 14 trip or HAIL vehicle trip. 15 § 2. Subdivision (b) of section 1283 of the tax law, as amended by 16 chapter 9 of the laws of 2012, is amended to read as follows: 17 (b) (1) If the taxicab owner has designated an agent, then the agent 18 shall be jointly liable with the taxicab owner for the tax on trips 19 occurring during the period that such designation is in effect. Even if 20 the TLC has specified that the taxicab owner's agent cannot operate as 21 an agent, that agent shall be jointly liable with the taxicab owner if 22 the agent has acted for the taxicab owner. During the period that a 23 taxicab owner's designation of an agent is in effect, the agent shall 24 file the returns required by this article and pay any tax due with such 25 return, but the taxicab owner shall not be relieved of liability for 26 tax, penalty or interest due under this article, or for the filing of 27 returns required to be filed, unless the agent has timely filed accurate 28 returns and timely paid the tax required to be paid under this article. 29 If a taxicab owner has designated an agent, then the agent must perform 30 any act this article requires the taxicab owner to perform, but the 31 failure of such agent to perform any such act shall not relieve the 32 taxicab owner from the obligation to perform such act or from any 33 liability that may arise from failure to perform the act. 34 (2) (A) Notwithstanding the foregoing, a TSP that collects the trip 35 record and the trip fare on behalf of a taxicab owner or a HAIL vehicle 36 owner shall be jointly liable with the taxicab owner or HAIL vehicle 37 owner for the tax due on such trips. For any period that the TSP 38 collects trip records on behalf of a taxicab owner or HAIL vehicle 39 owner, the TSP shall file returns reporting all trip records and, after 40 retaining any fees to which it is entitled pursuant to a contract with 41 such taxicab owner or HAIL vehicle owner, shall remit the taxes due on 42 all fares collected by the TSP. 43 (B) The TSP, after retaining the fees described in subparagraph (A) of 44 this paragraph, shall also remit the taxes due on any taxicab trip or 45 HAIL vehicle trip for which it maintained the trip record but did not 46 collect the fare, from any fares it collected on behalf of any such 47 taxicab owner or HAIL vehicle owner, before it releases any proceeds to 48 the taxicab owner or HAIL vehicle owner. If the TSP fails to comply 49 with the requirements of this subparagraph, such TSP shall be liable for 50 the taxes due on such trips up to the amount it released to the taxicab 51 owner or HAIL vehicle owner, or any person on behalf of such taxicab 52 owner or HAIL vehicle owner. However, the taxicab owner, HAIL vehicle 53 owner or their agents shall not be relieved of any liability for the 54 tax, penalty or interest due under this article, or for filing ofS. 2509--B 49 1 returns required to be filed, unless the TSP has timely filed accurate 2 returns and timely paid the tax required to be paid under this article. 3 § 3. Subdivision (a) of section 1299-B of the tax law, as added by 4 section 2 of part NNN of chapter 59 of the laws of 2018, is amended to 5 read as follows: 6 (a) Notwithstanding any provision of law to the contrary, any person 7 that dispatches a motor vehicle by any means that provides transporta- 8 tion that is subject to a surcharge imposed by this article, including 9 transportation network companies as defined in article forty-four-B of 10 the vehicle and traffic law, shall be liable for the surcharge imposed 11 by this article, except that in the case of taxicab trips and HAIL vehi- 12 cle trips that are also subject to tax pursuant to article twenty-nine-A 13 of this chapter[, only the taxicab owner or HAIL base liable for that14tax shall be the person liable for the surcharge imposed by this arti-15cle]: (1) the TSP shall be liable for the surcharge imposed by this 16 article for all trips for which the TSP collected the trip record and 17 the surcharge, and shall be responsible for filing returns; and, after 18 retaining any fees to which it is entitled pursuant to a contract with 19 such taxicab owner or HAIL vehicle owner, shall remit the surcharges on 20 such trips to the department. 21 (2) the TSP, after retaining the fees described in paragraph one of 22 this subdivision, shall also remit the surcharges due on any taxicab 23 trip or HAIL vehicle trip for which it maintained the trip record but 24 did not collect the fare, from any fares it collected on behalf of any 25 such taxicab owner or HAIL vehicle owner, before it releases any 26 proceeds to the taxicab owner or HAIL vehicle owner. Whenever the TSP 27 fails to comply with the requirements of the preceding sentence, the TSP 28 shall be liable for the surcharges due on such trips up to the amount it 29 released to the taxicab owner or HAIL vehicle owner, or any person on 30 behalf of such taxicab owner or HAIL vehicle owner. However, the taxi- 31 cab owner or HAIL base shall be jointly and severally liable with the 32 TSP for such surcharges. For purposes of this section, the terms "taxi- 33 cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", 34 and "TSP" shall have the same meaning as they do in section twelve 35 hundred eighty of this chapter. 36 § 4. Section 1299-F of the tax law is amended by adding a new subdivi- 37 sion (e) to read as follows: 38 (e) Notwithstanding the provisions of subdivision (a) of this section, 39 the commissioner may, in his or her discretion, permit the proper offi- 40 cer of the taxi and limousine commission of the city of New York (TLC) 41 or the duly authorized representative of such officer, to inspect any 42 return filed under this article, or may furnish to such officer or such 43 officer's authorized representative an abstract of any such return or 44 supply such person with information concerning an item contained in any 45 such return, or disclosed by any investigation of tax liability under 46 this article; but such permission shall be granted or such information 47 furnished only if the TLC shall have furnished the commissioner with all 48 information requested by the commissioner pursuant to this article and 49 shall have permitted the commissioner or the commissioner's authorized 50 representative to make any inspection of any records or reports concern- 51 ing for-hire transportation trips subject to the surcharge imposed by 52 this article, and any persons required to collect such surcharge, filed 53 with or possessed by the TLC that the commissioner may have requested 54 from the TLC. Provided, further, that the commissioner may disclose to 55 the TLC whether or not a person liable for the surcharge imposed by thisS. 2509--B 50 1 article has paid all of the surcharges due under this article as of any 2 given date. 3 § 5. This act shall take effect immediately and shall apply to trips 4 occurring on or after July 1, 2021. 5 PART S 6 Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax 7 law, as added by section 2 of part VV of chapter 59 of the laws of 2009, 8 is amended to read as follows: 9 (1) If a tax return preparer or facilitator is required to register or 10 re-register with the department pursuant to paragraph one or three of 11 subdivision (b) of this section, as applicable, and fails to do so in 12 accordance with the terms of this section, then the tax return preparer 13 [of] or facilitator must pay a penalty of [two] five hundred [fifty] 14 dollars. Provided, however, that if the tax return preparer or facili- 15 tator complies with the registration requirements of this section within 16 ninety calendar days after notification of assessment of this penalty is 17 sent by the department, then this penalty must be abated. If the tax 18 return preparer or facilitator continues to fail to register or re-re- 19 gister after the ninety calendar day period, the tax return preparer or 20 facilitator must pay an additional penalty of [five hundred] one thou- 21 sand dollars if the failure is for not more than one month, with an 22 additional [five hundred] one thousand dollars for each additional month 23 or fraction thereof during which the failure continues. Once the ninety 24 calendar days specified in this paragraph have expired, the penalty can 25 be waived only for good cause shown by the tax return preparer or faci- 26 litator. 27 § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as 28 added by section 2 of part VV of chapter 59 of the laws of 2009, is 29 amended to read as follows: 30 (2) If a commercial tax return preparer fails to pay the fee as 31 required in paragraph one of subdivision (c) of this section, for a 32 calendar year, then the commercial tax return preparer must pay a penal- 33 ty of fifty dollars for each return the commercial tax return preparer 34 has filed with the department in that calendar year. [Provided however,35that if the commercial tax return preparer complies with the payment36requirements of paragraph one of subdivision (c) of this section, within37ninety calendar days after notification of the assessment of this penal-38ty is sent by the department, then this penalty must be abated.] The 39 maximum penalty that may be imposed under this paragraph on any commer- 40 cial tax return preparer during any calendar year must not exceed [five] 41 ten thousand dollars. [Once the ninety calendar days specified in this42paragraph have expired, the] The penalty can be waived only for good 43 cause shown by the commercial tax return preparer. 44 § 3. Section 32 of the tax law is amended by adding a new subdivision 45 (h) to read as follows: 46 (h) (1) Tax return preparers and facilitators must prominently and 47 conspicuously display a copy of their registration certificate issued 48 pursuant to this section, for the current registration period, at their 49 place of business and at any other location where they provide tax 50 return preparation and/or facilitation services, in an area where 51 taxpayers using their services are able to see and review such registra- 52 tion certificate. 53 (2) Tax return preparers and facilitators must prominently and 54 conspicuously display at their place of business and at any otherS. 2509--B 51 1 location where they provide tax return preparation and/or facilitation 2 services the following documents: 3 (A) a current price list, in at least fourteen-point type, that 4 includes, but is not limited to, a list of all services offered by the 5 tax return preparer and/or facilitator; the minimum fee charged for each 6 service, including the fee charged for each type of federal or New York 7 state tax return to be prepared and facilitation service to be provided; 8 and a list of each factor that may increase a stated fee and the specif- 9 ic additional fees or range of possible additional fees when each factor 10 applies; and 11 (B) a copy of the most recent Consumer Bill of Rights Regarding Tax 12 Preparers published by the department pursuant to section three hundred 13 seventy-two of the general business law. 14 (3) A tax return preparer or facilitator who fails to comply with any 15 of the requirements of this subdivision must pay a penalty of five 16 hundred dollars; provided, however, that if the tax return preparer or 17 facilitator complies with the display requirements of this section with- 18 in ninety calendar days after notification of assessment of this penalty 19 is sent by the department, then this penalty must be abated. If the 20 tax return preparer or facilitator continues to fail to display a copy 21 of their registration certificate, a current price list, the minimum fee 22 charged for each service, and a copy of the most recent Consumer Bill of 23 Rights Regarding Tax Preparers after the ninety calendar day period, the 24 tax return preparer or facilitator must pay an additional penalty 25 of one thousand dollars for each additional month or fraction thereof 26 during which the failure continues. Once the ninety calendar days speci- 27 fied in this paragraph have expired, the penalty can be waived only 28 for good cause shown by the tax return preparer or facilitator. 29 § 4. The second subdivision (g) of section 32 of the tax law is relet- 30 tered subdivision (i). 31 § 5. This act shall take effect immediately; provided, however, that 32 paragraph (3) of subdivision (h) of section 32 of the tax law, as added 33 by section three of this act, shall take effect January 1, 2022. 34 PART T 35 Intentionally Omitted 36 PART U 37 Section 1. Paragraphs i and v of subdivision 1-e of section 333 of the 38 real property law, as amended by section 5 of part X of chapter 56 of 39 the laws of 2010 and as further amended by subdivision (d) of section 1 40 of part W of chapter 56 of the laws of 2010, are amended to read as 41 follows: 42 i. A recording officer shall not record or accept for [record] record- 43 ing any conveyance of real property affecting land in New York state 44 unless accompanied by one of the following: 45 (1) a receipt issued by the commissioner of taxation and finance 46 pursuant to subdivision (c) of section fourteen hundred twenty-three of 47 the tax law; or 48 (2) a transfer report form prescribed by the commissioner of taxation 49 and finance [or in lieu thereof, confirmation from the commissioner that50the required data has been reported to it pursuant to paragraph vii ofS. 2509--B 52 1this subdivision], and the fee prescribed pursuant to subdivision three 2 of this section. 3 v. (1) The provisions of this subdivision shall not operate to invali- 4 date any conveyance of real property where one or more of the items 5 designated as subparagraphs one through eight of paragraph ii of this 6 subdivision, have not been reported or which has been erroneously 7 reported, nor affect the record contrary to the provisions of this 8 subdivision, nor impair any title founded on such conveyance or record. 9 [Such] 10 (2) Subject to the provisions of section fourteen hundred twenty-three 11 of the tax law, such form shall contain an affirmation as to the accura- 12 cy of the contents made both by the transferor or transferors and by the 13 transferee or transferees. Provided, however, that if the conveyance of 14 real property occurs as a result of a taking by eminent domain, tax 15 foreclosure, or other involuntary proceeding such affirmation may be 16 made only by either the condemnor, tax district, or other party to whom 17 the property has been conveyed, or by that party's attorney. The affir- 18 mations required by this paragraph shall be made in the form and manner 19 prescribed by the commissioner, provided that notwithstanding any 20 provision of law to the contrary, affirmants may be allowed, but shall 21 not be required, to sign such affirmations electronically. 22 § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the 23 real property law are REPEALED. 24 § 3. Subdivision 3 of section 333 of the real property law, as amended 25 by section 2 of part JJ of chapter 56 of the laws of 2009 and as further 26 amended by subdivision (d) of section 1 of part W of chapter 56 of the 27 laws of 2010, is amended to read as follows: 28 3. [The] (i) When a recording officer [of every county and the city of29New York] is presented with a conveyance for recording that is accompa- 30 nied by a receipt issued by the commissioner of taxation and finance 31 pursuant to subdivision (c) of section fourteen hundred twenty-three of 32 the tax law, such recording officer shall be relieved of the responsi- 33 bility to collect the fee described by this subdivision. He or she 34 shall nonetheless be entitled to the portion of such fee that he or she 35 would otherwise have deducted pursuant to this subdivision, as provided 36 by subdivision (b) of section fourteen hundred twenty-three of the tax 37 law. 38 (ii) When a recording officer is presented with a conveyance for 39 recording that is not accompanied by such a receipt, he or she shall 40 impose a fee of two hundred fifty dollars, or in the case of a transfer 41 involving qualifying residential or farm property as defined by para- 42 graph iv of subdivision one-e of this section, a fee of one hundred 43 twenty-five dollars, for every real property transfer reporting form 44 submitted for recording as required under subparagraph two of paragraph 45 i of subdivision one-e of this section. In the city of New York, the 46 recording officer shall impose a fee of one hundred dollars for each 47 real property transfer tax form filed in accordance with chapter twen- 48 ty-one of title eleven of the administrative code of the city of New 49 York, except where a real property transfer reporting form is also 50 submitted for recording for the transfer as required under subparagraph 51 two of paragraph i of subdivision one-e of this section. The recording 52 officer shall deduct nine dollars from such fee and remit the remainder 53 of the revenue collected to the commissioner of taxation and finance 54 every month for deposit into the general fund. The amount duly deducted 55 by the recording officer shall be retained by the county or by the city 56 of New York.S. 2509--B 53 1 § 4. Subsection (d) of section 663 of the tax law, as amended by 2 section 1 of part P of chapter 686 of the laws of 2003, is amended to 3 read as follows: 4 (d) A recording officer shall not record or accept for [record] 5 recording any deed unless one of the following conditions is satisfied: 6 (1) it is accompanied by a receipt issued by the commissioner indicat- 7 ing that the estimated tax required by this section has been paid to the 8 commissioner either electronically or as otherwise prescribed by him or 9 her; 10 (2) it is accompanied by a form prescribed by the commissioner pursu- 11 ant to subsection (b) of this section and the payment of any estimated 12 tax shown as payable on such form[,]; or [unless] 13 (3) such receipt or form includes a certification by the transferor 14 that this section is inapplicable to the sale or transfer. 15 § 5. Subdivision (c) of section 1407 of the tax law, as amended by 16 chapter 61 of the laws of 1989, is amended to read as follows: 17 (c) [Every] 1. When a recording officer designated to act as such 18 agent is presented with a conveyance for recording that is accompanied 19 by a receipt issued by the commissioner pursuant to subdivision (c) of 20 section fourteen hundred twenty-three of this article, such recording 21 officer shall be relieved of the responsibility to collect the real 22 estate transfer tax thereon. He or she shall nonetheless be entitled to 23 the portion of such tax that he or she would otherwise have retained 24 pursuant to this subdivision, as provided by subdivision (b) of section 25 fourteen hundred twenty-three of the tax law. 26 2. When a recording officer is presented with a conveyance for record- 27 ing that is not accompanied by a receipt described in paragraph one of 28 this subdivision, he or she shall collect the applicable real estate 29 transfer tax and shall retain, from the real estate transfer tax which 30 he or she collects, the sum of one dollar for each of the first five 31 thousand conveyances accepted for recording and for which he or she has 32 issued a documentary stamp or metering machine stamp or upon which 33 instrument effecting the conveyance he or she has noted payment of the 34 tax or that no tax is due, pursuant to any other method for payment of 35 the tax provided for in the regulations of the commissioner of taxation 36 and finance, during each annual period commencing on the first day of 37 August and ending on the next succeeding thirty-first day of July and 38 seventy-five cents for each conveyance in excess of five thousand 39 accepted for recording and for which he or she has issued such a stamp 40 or upon which instrument effecting the conveyance he or she has noted 41 payment of the tax or that no tax is due, pursuant to such other method, 42 during such annual period. Such fee shall be payable even though the 43 stamp issued or such notation shows that no tax is due. Such a fee paid 44 to the register of the city of New York shall belong to the city of New 45 York and such a fee paid to a recording officer of a county outside such 46 city shall belong to such officer's county. With respect to any other 47 agents designated to act pursuant to subdivision (a) of this section, 48 the commissioner of taxation and finance shall have the power to 49 provide, at his or her discretion, for payment of a fee to such agent, 50 in such manner and amount and subject to such limitations as he or she 51 may determine, but any such fee for any annual period shall not be 52 greater than the sum of one dollar for each of the first five thousand 53 conveyances for which such agent has issued a documentary stamp or 54 metering machine stamp or upon which instrument effecting the conveyance 55 he or she has noted payment of the tax or that no tax is due, pursuant 56 to any other method for payment of the tax provided for in the regu-S. 2509--B 54 1 lations of the commissioner of taxation and finance, during such annual 2 period and seventy-five cents for each conveyance in excess of five 3 thousand for which such agent has issued such a stamp or upon which 4 instrument effecting the conveyance such agent has noted payment of the 5 tax or that no tax is due, pursuant to such other method, during such 6 annual period. 7 § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 61 of 8 the laws of 1989, is amended to read as follows: 9 (b) [The] Subject to the provisions of section fourteen hundred twen- 10 ty-three of this article, the return shall be signed by both the grantor 11 and the grantee. Where a conveyance has more than one grantor or more 12 than one grantee, the return shall be signed by all of such grantors and 13 grantees. Where any or all of the grantors or any or all of the grantees 14 have failed to sign a return, it shall be accepted as a return if signed 15 by any one of the grantors or by any one of the grantees. Provided, 16 however, those not signing the return shall not be relieved of any 17 liability for the tax imposed by this article and the period of limita- 18 tions for assessment of tax or of additional tax shall not apply to any 19 such party. 20 § 7. Subdivision (b) of section 1410 of the tax law, as added by chap- 21 ter 61 of the laws of 1989, is amended to read as follows: 22 (b) A recording officer shall not record an instrument effecting a 23 conveyance unless one of the following conditions is satisfied: 24 (1) the instrument is accompanied by a receipt issued by the commis- 25 sioner pursuant to subdivision (c) of section fourteen hundred twenty- 26 three of this article; or 27 (2) the return required by section fourteen hundred nine of this arti- 28 cle has been filed and the real estate transfer tax due, if any, shall 29 have been paid as provided in this section. 30 § 8. The tax law is amended by adding a new section 1423 to read as 31 follows: 32 § 1423. Modernization of real property transfer reporting. (a) 33 Notwithstanding any provision of law to the contrary, the commissioner 34 is hereby authorized to implement a system for the electronic collection 35 of data relating to transfers of real property. In connection therewith, 36 the commissioner may combine the two forms referred to in paragraph one 37 of this subdivision into a consolidated real property transfer form to 38 be filed with him or her electronically; provided: 39 (1) The two forms that may be so combined are the real estate transfer 40 tax return required by section fourteen hundred nine of this article, 41 and the real property transfer report required by subdivision one-e of 42 section three hundred thirty-three of the real property law. However, 43 the commissioner shall continue to maintain both such return and such 44 report as separate forms, so that a party who prefers not to file a 45 consolidated real property transfer form with the commissioner electron- 46 ically shall have the option of filing both such return and such report 47 with the recording officer, as otherwise provided by law. Under no 48 circumstances shall a consolidated real property transfer form be filed 49 with, or accepted by, the recording officer. 50 (2) Notwithstanding the provisions of section fourteen hundred eigh- 51 teen of this article, any information appearing on a consolidated real 52 property transfer form that is required to be included on the real prop- 53 erty transfer report required by subdivision one-e of section three 54 hundred thirty-three of the real property law shall be subject to public 55 disclosure.S. 2509--B 55 1 (3) When a consolidated real property transfer form is electronically 2 submitted to the department by either the grantor or grantee or a duly 3 authorized agent thereof, the act of submitting such form shall be 4 deemed to be the signing of the return as required by paragraph (v) of 5 subdivision one-e of the real property law or subdivision (b) of section 6 fourteen hundred nine of this article, and the requirement that all the 7 grantors and grantees shall sign the return shall not apply. However, 8 the fact that a grantor or grantee has not electronically submitted the 9 form shall not relieve that grantor or grantee of any liability for the 10 tax imposed by this article. 11 (b) When a consolidated real property transfer form is filed with the 12 commissioner electronically pursuant to this section, the real estate 13 transfer tax imposed under this article, and the fee that would other- 14 wise be retained by the recording officer pursuant to subdivision three 15 of section three hundred thirty-three of the real property law, shall be 16 paid to the commissioner therewith. The commissioner shall retain on 17 behalf of the recording officer the portion of such tax that would 18 otherwise have been retained by the recording officer pursuant to subdi- 19 vision (c) of section fourteen hundred seven of this article, and the 20 portion of such fee that would otherwise have been retained by the 21 recording officer pursuant to subdivision three of section three hundred 22 thirty-three of the real property law. The moneys so retained by the 23 commissioner on behalf of the recording officer, hereinafter referred to 24 as the recording officer's fees, shall be deposited daily with such 25 responsible banks, banking houses, or trust companies as may be desig- 26 nated by the state comptroller. Of the recording officer's fees so 27 deposited, the comptroller shall retain in the comptroller's hands such 28 amount as the commissioner may determine to be necessary for refunds or 29 reimbursements of such fees collected or received pursuant to this 30 section, out of which the comptroller shall pay any refunds or 31 reimbursements of such fees to which persons shall be entitled under the 32 provisions of this section. The comptroller, after reserving such refund 33 and reimbursement fund shall, on or before the twelfth day of each 34 month, pay to the appropriate recording officers an amount equal to the 35 recording officer's fees reserved on their behalf. Provided, however, 36 that the commissioner is authorized to request that the comptroller 37 refrain from making such a payment of such fees to a recording officer 38 until the commissioner has certified to the comptroller that the record- 39 ing officer has supplied the commissioner with the liber and page 40 numbers of the recorded instruments that gave rise to such fees. 41 (c) The system for the electronic submission of consolidated real 42 property transfer forms shall be designed so that upon the successful 43 electronic filing of such a form and the payment of the associated taxes 44 and fees, the party submitting the same shall be provided with an elec- 45 tronic receipt in a form prescribed by the commissioner that confirms 46 such filing and payment. Such party may file a printed copy of such 47 receipt with the recording officer when offering the associated instru- 48 ment for recording, in lieu of submitting to the recording officer the 49 return, report, tax and fee that would otherwise have been required 50 under this article and subdivisions one-e and three of section three 51 hundred thirty-three of the real property law. The recording officer 52 shall retain such receipt for a minimum of three years, unless otherwise 53 directed by the commissioner, and shall provide a copy thereof to the 54 commissioner for inspection upon his or her request. 55 (d) Upon recording the instrument to which the consolidated real prop- 56 erty transfer form pertains, the recording officer shall provide theS. 2509--B 56 1 commissioner with the liber and page thereof at such time and in such 2 manner as the commissioner shall prescribe. 3 (e) The provisions of this section shall not be applicable within a 4 city or county that has implemented its own electronic system for the 5 recording of deeds, the filing of the real estate transfer tax returns 6 and the real property transfer reports prescribed by the commissioner, 7 and the payment of the associated taxes and fees, unless such city or 8 county shall notify the commissioner that such jurisdiction will follow 9 the system authorized pursuant to this section to be used therein, in 10 writing. 11 § 9. This act shall take effect immediately. 12 PART V 13 Section 1. This Part enacts into law components of legislation relat- 14 ing to the administration of the STAR program authorized by section 425 15 of the real property tax law and subsection (eee) of section 606 of the 16 tax law. Each component is wholly contained within a Subpart identified 17 as Subparts A through E. The effective date for each particular 18 provision contained within such Subpart is set forth in the last section 19 of such Subpart. Any provision in any section contained within a 20 Subpart, including the effective date of the Subpart, which makes refer- 21 ence to a section "of this act", when used in connection with that 22 particular component, shall be deemed to mean and refer to the corre- 23 sponding section of the Subpart in which it is found. Section three of 24 this Part sets forth the general effective date of this Part. 25 SUBPART A 26 Intentionally Omitted 27 SUBPART B 28 Intentionally Omitted 29 SUBPART C 30 Intentionally Omitted 31 SUBPART D 32 Intentionally Omitted 33 SUBPART E 34 Section 1. Paragraph 2 of subdivision w of section 233 of the real 35 property law is REPEALED. 36 § 2. Paragraph 3 of subdivision w of section 233 of the real property 37 law, as amended by section 18 of part B of chapter 389 of the laws of 38 1997, is amended to read as follows: 39 3. A manufactured home park owner or operator providing a reduction in 40 rent as required by paragraph one [or two] of this subdivision may 41 retain, in consideration for record keeping expenses, two percent of the 42 amount of such reduction.S. 2509--B 57 1 § 3. The opening paragraph of paragraph 3-a of subdivision w of 2 section 233 of the real property law, as added by chapter 405 of the 3 laws of 2001, is amended to read as follows: 4 Any reduction required to be provided pursuant to paragraph one [or5two] of this subdivision shall be provided as follows: 6 § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- 7 ty tax law is amended by adding a new subparagraph (iv) to read as 8 follows: 9 (iv) Beginning with assessment rolls used to levy school district 10 taxes for the two thousand twenty-two--two thousand twenty-three school 11 year, no exemption shall be granted pursuant to this section to a mobile 12 home that is described in this paragraph. Owners of such property may 13 claim the credit authorized by subsection (eee) of section six hundred 14 six of the tax law in the manner prescribed therein. 15 § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 16 606 of the tax law is amended by adding a new clause (iii) to read as 17 follows: 18 (iii) Beginning with the two thousand twenty-two taxable year, to 19 receive the credit authorized by this subsection, an owner of a mobile 20 home described by clause (i) of this subparagraph shall register for 21 such credit in the manner prescribed by the commissioner. 22 § 6. This act shall take effect immediately; provided, however, that 23 the amendments to subdivision w of section 233 of the real property law 24 made by sections one, two and three of this act shall be applicable 25 beginning with assessment rolls used to levy school district taxes for 26 the 2022--2023 school year. 27 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 28 sion, section, item, subpart or part of this act shall be adjudged by 29 any court of competent jurisdiction to be invalid, such judgment shall 30 not affect, impair, or invalidate the remainder thereof, but shall be 31 confined in its operation to the clause, sentence, paragraph, subdivi- 32 sion, section, item, subpart or part thereof directly involved in the 33 controversy in which such judgment shall have been rendered. It is here- 34 by declared to be the intent of the legislature that this act would have 35 been enacted even if such invalid provisions had not been included here- 36 in. 37 § 3. This act shall take effect immediately, provided, however, that 38 the applicable effective date of Subpart E of this act shall be as 39 specifically set forth in the last section of such Subpart. 40 PART W 41 Section 1. Section 200 of the real property tax law, as amended by 42 section 4-a of part W of chapter 56 of the laws of 2010, is amended to 43 read as follows: 44 § 200. State board. There is hereby created in the department of taxa- 45 tion and finance a separate and independent state board of real property 46 tax services, to consist of five members to be appointed by the gover- 47 nor, by and with the advice and consent of the senate. Of those five 48 members appointed by the governor, one such person shall be an individ- 49 ual actively engaged in the commercial production for sale of agricul- 50 tural crops, livestock and livestock products of an average gross sales 51 value of ten thousand dollars or more. Said individual shall be 52 appointed in the first instance to a term of eight years upon expiration 53 of an existing term. Said initial term shall commence on the first day 54 of January next succeeding the year in which the existing term shallS. 2509--B 58 1 expire. The governor shall designate one of the members as the chairman 2 of the board, who shall serve as chairman at the pleasure of the gover- 3 nor. A majority of the duly appointed members shall constitute a quorum 4 and not less than a majority of such members concurring may transact 5 any business, perform any duty or exercise any power of the board. The 6 members of the board shall be appointed for terms of eight years, 7 commencing on the first day of January next following the year in which 8 the term of his predecessor expired, except that the terms of the 9 members first appointed shall expire as follows: one on December thir- 10 ty-first, nineteen hundred sixty-one, one on December thirty-first, 11 nineteen hundred sixty-three, one on December thirty-first, nineteen 12 hundred sixty-five, one on December thirty-first, nineteen hundred 13 sixty-seven, and one on December thirty-first, nineteen hundred eighty- 14 two. Vacancies occurring otherwise than by expiration of term shall be 15 filled for the unexpired term. All members shall receive necessary 16 expenses incurred in the performance of their duties. 17 § 2. Section 307 of the real property tax law is REPEALED. 18 § 3. Subdivision 4 of section 483 of the real property tax law, as 19 amended by chapter 72 of the laws of 1979 and as further amended by 20 subdivision (b) of section 1 of part W of chapter 56 of the laws of 21 2010, and as renumbered by chapter 797 of the laws of 1992, is amended 22 to read as follows: 23 4. Such exemption from taxation shall be granted only upon an applica- 24 tion by the owner of the building or structure on a form prescribed by 25 the commissioner. The applicant shall furnish such information as [such26board] the commissioner shall require. Such application shall be filed 27 with the assessor of the city, town, village or county having the power 28 to assess property for taxation on or before the appropriate taxable 29 status date of such city, town, village or county and within one year 30 from the date of completion of such construction or reconstruction. 31 § 4. Subdivision 3 of section 489-n of the real property tax law, as 32 added by chapter 86 of the laws of 1963 and as further amended by subdi- 33 vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is 34 amended to read as follows: 35 3. The commissioner shall meet at the time and place specified in such 36 notice to hear complaints in relation to the tentative determination of 37 the railroad ceiling. The provisions of section five hundred twelve of 38 this chapter shall apply so far as may be practicable to a hearing under 39 this section. Nothing contained in this subdivision shall be construed 40 to require a hearing to be conducted when no complaints have been filed. 41 § 5. Subdivision 3 of section 489-kk of the real property tax law, as 42 added by chapter 920 of the laws of 1977 and as further amended by 43 subdivision (b) of section 1 of part W of chapter 56 of the laws of 44 2010, is amended to read as follows: 45 3. The commissioner shall meet at the time and place specified in such 46 notice to hear complaints in relation to the tentative determination of 47 the railroad ceiling. The provisions of section five hundred twelve of 48 this chapter shall apply so far as may be practicable to a hearing under 49 this section. Nothing contained in this subdivision shall be construed 50 to require a hearing to be conducted when no complaints have been filed. 51 § 6. The real property tax law is amended by adding a new section 497 52 to read as follows: 53 § 497. Construction of certain local option provisions in exemption 54 statutes. 1. Population restrictions. When an exemption statute makes 55 one or more options available to municipal corporations having a popu- 56 lation within a specified range, and the governing body of a municipalS. 2509--B 59 1 corporation adopts a local law or resolution exercising such an option 2 while its population is within the specified range, a subsequent change 3 in the population of the municipal corporation that places it outside 4 the specified range shall not render such local law or resolution inef- 5 fective or invalid, nor shall it impair the ability of the governing 6 body to amend or repeal such local law or resolution to the same extent 7 as if its population were still within the specified range. Provided, 8 however, that this subdivision shall not apply to any exemption statute 9 that expressly provides that a local law or resolution adopted there- 10 under shall become ineffective or invalid if the population of the 11 municipal corporation subsequently experiences a change that places it 12 outside the specified range. 13 2. Filing provisions. When an exemption statute makes one or more 14 options available to some or all municipal corporations, and further 15 provides that a municipal corporation adopting a local law or resolution 16 exercising such an option shall file a copy thereof with one or more 17 state agencies other than the department of state, but if such statute 18 does not expressly provide that a local law or resolution exercising 19 such an option shall not take effect until a copy thereof is filed with 20 the specified state agency or agencies, then a failure to comply with 21 such filing provision shall not render such local law or resolution 22 ineffective or invalid. 23 § 7. Subdivision 3 of section 499-oooo of the real property tax law, 24 as added by chapter 475 of the laws of 2013, is amended to read as 25 follows: 26 3. The commissioner or his or her designee shall meet at the time and 27 place specified in such notice set forth in subdivision one of this 28 section to hear complaints in relation to the tentative determination of 29 the assessment ceiling. The provisions of section five hundred twelve of 30 this chapter shall apply so far as may be practicable to a hearing under 31 this section. Nothing contained in this subdivision shall be construed 32 to require a hearing to be conducted when no complaints have been filed. 33 § 8. Section 612 of the real property tax law, as further amended by 34 subdivision (b) of section 1 of part W of chapter 56 of the laws of 35 2010, is amended to read as follows: 36 § 612. Hearing of complaints. The commissioner or a duly authorized 37 representative thereof shall meet at the time and place specified in the 38 notice required by section six hundred eight of this chapter to hear 39 complaints in relation to assessments of special franchises. The 40 provisions of section five hundred twelve of this chapter shall apply so 41 far as practicable to the hearing of complaints pursuant to this 42 section. Nothing contained in this section shall be construed to 43 require a hearing to be conducted when no complaints have been filed. 44 § 9. Section 1208 of the real property tax law, as amended by chapter 45 385 of the laws of 1990 and as further amended by subdivision (b) of 46 section 1 of part W of chapter 56 of the laws of 2010, is amended to 47 read as follows: 48 § 1208. Hearing of complaints. The commissioner or a duly authorized 49 representative thereof shall meet at the time and place specified in the 50 notice required by section twelve hundred four of this chapter to hear 51 complaints in relation to equalization rates, class ratios or class 52 equalization rates. The provisions of section five hundred twenty-five 53 of this chapter shall apply so far as practicable to a hearing under 54 this section. Nothing contained in this section shall be construed to 55 require a hearing to be conducted when no complaints have been filed.S. 2509--B 60 1 § 10. This act shall take effect immediately; provided, however, that 2 notwithstanding the provisions of subdivision 2 of section 497 of the 3 real property tax law as added by section six of this act, the decision 4 issued by the Appellate Division, Third Department on April 16, 2020, in 5 the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, 6 cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, 7 motion for leave to appeal dismissed in part and otherwise denied by the 8 Court of Appeals on November 19, 2020, shall remain binding upon the 9 parties thereto; and provided further that the amendments made to 10 section 489-oooo of the real property tax law made by section seven of 11 this act shall not affect the repeal of such section and shall be deemed 12 to be repealed therewith. 13 PART X 14 Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property 15 tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, 16 subdivision 7 as amended by chapter 515 and subdivision 9 as added by 17 chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as 18 amended by chapter 344 of the laws of 2014, are amended to read as 19 follows: 20 5. The exemption granted pursuant to this section shall only be appli- 21 cable to (a) solar or wind energy systems or farm waste energy systems 22 which are (i) existing or constructed prior to July first, nineteen 23 hundred eighty-eight or (ii) constructed subsequent to January first, 24 nineteen hundred ninety-one and prior to January first, two thousand 25 [twenty-five] thirty, and (b) micro-hydroelectric energy systems, fuel 26 cell electric generating systems, micro-combined heat and power generat- 27 ing equipment systems, electric energy storage equipment or electric 28 energy storage system, or fuel-flexible linear generator electric gener- 29 ating system which are constructed subsequent to January first, two 30 thousand eighteen and prior to January first, two thousand [twenty-five] 31 thirty. 32 7. If the assessor is satisfied that the applicant is entitled to an 33 exemption pursuant to this section, he or she shall approve the applica- 34 tion and enter the taxable assessed value of the parcel for which an 35 exemption has been granted pursuant to this section on the assessment 36 roll with the taxable property, with the amount of the exemption set 37 forth in a separate column as computed pursuant to subdivision two of 38 this section in a separate column. In the event that real property 39 granted an exemption pursuant to this section ceases to be used primari- 40 ly for eligible purposes, the exemption granted pursuant to this section 41 shall cease. 42 9. (a) A county, city, town, village or school district, except a 43 school district under article fifty-two of the education law, that has 44 not acted to remove the exemption under this section may require the 45 owner of a property which includes a solar or wind energy system which 46 meets the requirements of subdivision four of this section, to enter 47 into a contract for payments in lieu of taxes. Such contract may require 48 annual payments in an amount not to exceed the amounts which would 49 otherwise be payable but for the exemption under this section. If the 50 owner or developer of such a system provides written notification to a 51 taxing jurisdiction of its intent to construct such a system, then in 52 order to require the owner or developer of such system to enter into a 53 contract for payments in lieu of taxes, such taxing jurisdiction must 54 notify such owner or developer in writing of its intent to require aS. 2509--B 61 1 contract for payments in lieu of taxes within sixty days of receiving 2 the written notification. Written notification to a taxing jurisdiction 3 for this purpose shall include a hard copy letter sent to the highest- 4 ranking official of the taxing jurisdiction. Such letter shall explicit- 5 ly reference subdivision nine of section four hundred eighty-seven of 6 the real property tax law, and clearly state that, unless the taxing 7 jurisdiction responds within sixty days in writing with its intent to 8 require a contract for payments in lieu of taxes, such project shall not 9 be obligated to make such payments. 10 (b) Notwithstanding paragraph (a) of this subdivision, should a taxing 11 jurisdiction adopt a law or resolution at any time within or prior to 12 the sixty day window, indicating the taxing jurisdiction's ongoing 13 intent to require a contract for payments in lieu of taxes for such 14 systems, such law or resolution shall be considered notification to 15 owners or developers and no further action is required on the part of 16 the taxing jurisdiction, provided that such law or resolution remains in 17 effect through the end of the sixty day notification period. 18 [The] (c) Any payment in lieu of a tax agreement shall not operate for 19 a period of more than fifteen years, commencing in each instance from 20 the date on which the benefits of such exemption first become available 21 and effective. 22 § 2. Subdivision 1 of section 575-a of the real property tax law, as 23 added by section 1 of subpart F of part J of chapter 59 of the laws of 24 2019, is amended to read as follows: 25 1. Every corporation, company, association, joint stock association, 26 partnership and person, their lessees, trustees or receivers appointed 27 by any court whatsoever, owning, operating or managing any electric 28 generating facility in the state shall annually file with the commis- 29 sioner, by April thirtieth, a report showing the inventory, revenue, and 30 expenses associated therewith for the most recent fiscal year, and, in 31 the case of solar and wind energy systems, such other information as the 32 commissioner may reasonably require for the development and maintenance 33 of an appraisal model and discount rate as required pursuant to section 34 575-b of this chapter. Such report shall be in the form and manner 35 prescribed by the commissioner. 36 § 3. The real property tax law is amended by adding a new section 37 575-b to read as follows: 38 § 575-b. Solar or wind energy systems. 1. The assessed value for solar 39 or wind energy systems, as defined in section four hundred eighty-seven 40 of this chapter, shall be determined by a discounted cash flow approach 41 that includes: 42 (a) An appraisal model identified and published by the New York state 43 department of taxation and finance, in consultation with the New York 44 state energy research and development authority, within one hundred 45 eighty days of the effective date of this section, and periodically 46 thereafter as appropriate; and 47 (b) A solar or wind energy system discount rate published annually by 48 the New York state department of taxation and finance. 49 2. The reports required by section five hundred seventy-five-a of this 50 title shall be designed to elicit such information as the commissioner 51 may reasonably require for the development and maintenance of an 52 appraisal model and discount rate. 53 3. The provisions of this section shall only apply to solar or wind 54 energy systems with a nameplate capacity equal to or greater than one 55 megawatt.S. 2509--B 62 1 § 4. The third undesignated paragraph of section 852 of the general 2 municipal law, as amended by chapter 630 of the laws of 1977, is amended 3 to read as follows: 4 It is hereby further declared to be the policy of this state to 5 protect and promote the health of the inhabitants of this state and to 6 increase trade through promoting the development of facilities to 7 provide recreation for the citizens of the state and to attract tourists 8 from other states and to promote the development of renewable energy 9 projects to support the state's renewable energy goals as may be estab- 10 lished or amended from time to time. 11 § 5. Subdivision 4 of section 854 of the general municipal law, as 12 amended by section 6 of part J of chapter 59 of the laws of 2013, is 13 amended and a new subdivision 21 is added to read as follows: 14 (4) "Project" - shall mean any land, any building or other improve- 15 ment, and all real and personal properties located within the state of 16 New York and within or outside or partially within and partially outside 17 the municipality for whose benefit the agency was created, including, 18 but not limited to, machinery, equipment and other facilities deemed 19 necessary or desirable in connection therewith, or incidental thereto, 20 whether or not now in existence or under construction, which shall be 21 suitable for manufacturing, warehousing, research, commercial, renewable 22 energy or industrial purposes or other economically sound purposes iden- 23 tified and called for to implement a state designated urban cultural 24 park management plan as provided in title G of the parks, recreation and 25 historic preservation law and which may include or mean an industrial 26 pollution control facility, a recreation facility, educational or 27 cultural facility, a horse racing facility, a railroad facility, a 28 renewable energy project or an automobile racing facility, provided, 29 however, no agency shall use its funds or provide financial assistance 30 in respect of any project wholly or partially outside the municipality 31 for whose benefit the agency was created without the prior consent ther- 32 eto by the governing body or bodies of all the other municipalities in 33 which a part or parts of the project is, or is to be, located, and such 34 portion of the project located outside such municipality for whose bene- 35 fit the agency was created shall be contiguous with the portion of the 36 project inside such municipality. 37 (21) "Renewable energy project" shall mean any project and associated 38 real property on which the project is situated, that utilizes any system 39 or equipment as set forth in section four hundred eighty-seven of the 40 real property tax law or as defined pursuant to paragraph b of subdivi- 41 sion one of section sixty-six-p of the public service law as added by 42 chapter one hundred six of the laws of two thousand nineteen. 43 § 6. The opening paragraph of section 858 of the general municipal 44 law, as amended by chapter 478 of the laws of 2011, is amended to read 45 as follows: 46 The purposes of the agency shall be to promote, develop, encourage and 47 assist in the acquiring, constructing, reconstructing, improving, main- 48 taining, equipping and furnishing industrial, manufacturing, warehous- 49 ing, commercial, research, renewable energy and recreation facilities 50 including industrial pollution control facilities, educational or 51 cultural facilities, railroad facilities, horse racing facilities, auto- 52 mobile racing facilities, renewable energy projects and continuing care 53 retirement communities, provided, however, that, of agencies governed by 54 this article, only agencies created for the benefit of a county and the 55 agency created for the benefit of the city of New York shall be author- 56 ized to provide financial assistance in any respect to a continuing careS. 2509--B 63 1 retirement community, and thereby advance the job opportunities, health, 2 general prosperity and economic welfare of the people of the state of 3 New York and to improve their recreation opportunities, prosperity and 4 standard of living; and to carry out the aforesaid purposes, each agency 5 shall have the following powers: 6 § 7. Paragraph (b) of subdivision 5 of section 859-a of the general 7 municipal law, as added by chapter 563 of the laws of 2015, is amended 8 to read as follows: 9 (b) a written cost-benefit analysis by the agency that identifies the 10 extent to which a project will create or retain permanent, private 11 sector jobs; the estimated value of any tax exemptions to be provided; 12 the amount of private sector investment generated or likely to be gener- 13 ated by the proposed project; the contribution of the project to the 14 state's renewable energy goals and emission reduction targets as set 15 forth in the state energy plan adopted pursuant to section 6-104 of the 16 energy law; the likelihood of accomplishing the proposed project in a 17 timely fashion; and the extent to which the proposed project will 18 provide additional sources of revenue for municipalities and school 19 districts; and any other public benefits that might occur as a result of 20 the project; 21 § 8. This act shall take effect immediately. 22 PART Y 23 Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- 24 ing law, as added by chapter 174 of the laws of 2013, paragraphs (b) and 25 (d) of subdivision 3 as amended by section 1 of part X of chapter 59 of 26 the laws of 2020, is amended to read as follows: 27 § 1367. Sports wagering. 1. As used in this section: 28 (a) "Affiliate" means any off-track betting corporation, franchised 29 corporation, or race track licensed pursuant to this chapter, an opera- 30 tor of video lottery gaming at Aqueduct licensed pursuant to section 31 sixteen hundred seventeen-a of the tax law, which has an affiliate 32 agreement with a casino pursuant to section thirteen hundred sixty-sev- 33 en-a of this title. Any professional sports stadium or arena may serve 34 as an affiliate; 35 (b) "Agent" means an entity that is party to a contract with a casino 36 authorized to operate a sports pool and is approved by the commission to 37 operate a sports pool on behalf of such casino; 38 (c) "Authorized sports bettor" means an individual who is physically 39 present in this state when placing a sports wager, who is not a prohib- 40 ited sports bettor, that participates in sports wagering offered by a 41 casino. All sports wagers placed in accordance with this section are 42 considered placed or otherwise made when received by the operator at the 43 licensed gaming facility, regardless of the authorized sports bettor's 44 physical location at the time the sports wager is initiated. The inter- 45 mediate routing of electronic data in connection with mobile sports 46 wagering shall not determine the location or locations in which a wager 47 is initiated, received or otherwise made; 48 (d) "Brand" means the name and logo on the interface of a mobile 49 application or internet website accessed via a mobile device or computer 50 which authorized sports bettors use to access a sports betting platform; 51 (e) "Casino" means a licensed gaming facility at which gambling is 52 conducted pursuant to the provisions of this article; 53 [(b)] (f) "Commission" means the commission established pursuant to 54 section one hundred two of this chapter;S. 2509--B 64 1 [(c)] (g) "Collegiate sport or athletic event" means a sport or 2 athletic event offered or sponsored by or played in connection with a 3 public or private institution that offers educational services beyond 4 the secondary level; 5 [(d)] (h) "Covered persons" includes: athletes; players; umpires; 6 referees; officials; personnel associated with players, clubs, teams, 7 leagues, and athletic associations; medical professionals, including 8 athletic trainers who provide services to athletes and players; and the 9 family members and associates of these persons where required to serve 10 the purposes of this title; 11 (i) "Exchange wagering" means a form of wagering in which an author- 12 ized sports bettor, on the one hand, and one or more authorized sports 13 bettors, a casino or an agent or an operator, on the other hand place 14 identically opposing sports wagers on an exchange operated by a casino 15 or an agent or an operator; 16 (j) "Global risk management" means the direction, management, consul- 17 tation and/or instruction for purposes of managing risks associated with 18 sports wagering conducted pursuant to this section and includes the 19 setting and adjustment of betting lines, point spreads, or odds and 20 whether to place layoff bets as permitted by this section; 21 (k) "High school sport or athletic event" means a sport or athletic 22 event offered or sponsored by or played in connection with a public or 23 private institution that offers education services at the secondary 24 level; 25 (l) "Horse racing event" means any sport or athletic event conducted 26 in New York state subject to the provisions of articles two, three, 27 four, five, six, nine, ten and eleven of this chapter, or any sport or 28 athletic event conducted outside of New York state, which if conducted 29 in New York state would be subject to the provisions of this chapter; 30 (m) "In-play sports wager" means a sports wager placed on a sports 31 event after the sports event has begun and before it ends; 32 (n) "Layoff bet" means a sports wager placed by a casino sports pool 33 with another casino sports pool; 34 (o) "Minor" means any person under the age of twenty-one years; 35 (p) "Mobile sports wagering platform" or "platform" means the combina- 36 tion of hardware, software, and data networks used to manage, adminis- 37 ter, or control sports wagering and any associated wagers accessible by 38 any electronic means including mobile applications and internet websites 39 accessed via a mobile device or computer; 40 (q) "Official league data" means statistics, results, outcomes, and 41 other data relating to a sporting event that have been obtained from the 42 relevant sports governing body that is headquartered in the United 43 States or an entity expressly authorized by the sports governing body to 44 provide such information to casinos; 45 (r) "Operator" means a casino which has elected to operate a sports 46 pool (or agent of such casino) or an Indian Tribe (or an agent of such 47 Indian Tribe) that has entered into a tribal-state gaming compact in 48 accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is 49 in effect and has been ratified by the state and has entered into a 50 sports wagering agreement pursuant to section thirteen hundred sixty- 51 seven-a of this title; 52 (s) "Persons who present sporting contests" includes sports governing 53 bodies and associations, their members and affiliates, and other persons 54 who present sporting contests to the public; 55 [(e)] (t) "Professional sport or athletic event" means an event at 56 which two or more persons participate in sports or athletic events andS. 2509--B 65 1 receive compensation in excess of actual expenses for their partic- 2 ipation in such event; 3 (u) "Prohibited conduct" means any statement, action, and other commu- 4 nication intended to influence, manipulate, or control a betting outcome 5 of a sporting contest or of any individual occurrence or performance in 6 a sporting contest in exchange for financial gain or to avoid financial 7 or physical harm. "Prohibited conduct" includes statements, actions, and 8 communications made to a covered person by a third party, such as a 9 family member or through social media; 10 (v) "Professional sports stadium or arena" means a stadium, ballpark, 11 or arena that is the permanent home of a professional sports team play- 12 ing at the highest professional level in its sport and has a seating 13 capacity for such contests exceeding fifteen thousand seats; 14 (w) "Prohibited sports bettor" means: 15 (i) any officer or employee of the commission; 16 (ii) any principal or key employee of a casino or operator, except as 17 may be permitted by the commission for good cause shown; 18 (iii) any casino gaming or non-gaming employee at the casino that 19 employs such person and at any operator that has an agreement with that 20 casino; 21 (iv) any contractor, subcontractor, or consultant, or officer or 22 employee of a contractor, subcontractor, or consultant, of a casino if 23 such person is directly involved in the operation or observation of 24 sports wagering, or the processing of sports wagering claims or 25 payments; 26 (v) Any person subject to a contract with the commission if such 27 contract contains a provision prohibiting such person from participating 28 in sports wagering; 29 (vi) Any spouse, child, brother, sister or parent residing as a member 30 of the same household in the principal place of abode of any of the 31 foregoing persons at the same casino where the foregoing person is 32 prohibited from participating in sports wagering; 33 (vii) any individual with access to non-public confidential informa- 34 tion about sports wagering; 35 (viii) any amateur or professional athlete if the sports wager is 36 based on any sport or athletic event overseen by the athlete's sports 37 governing body; 38 (ix) any sports agent, owner or employee of a team, player and umpire 39 union personnel, and employee referee, coach or official of a sports 40 governing body, if the sports wager is based on any sport or athletic 41 event overseen by the individual's sports governing body; 42 (x) any individual placing a wager as an agent or proxy for an other- 43 wise prohibited sports bettor; or 44 (xi) any minor; 45 [(f)] (x) "Prohibited sports event" means any collegiate sport or 46 athletic event that takes place in New York or a sport or athletic event 47 in which any New York college team participates regardless of where the 48 event takes place, or high school sport or athletic event; 49 [(g)] (y) "Registered sports governing body" means a sports governing 50 body that is headquartered in the United States and who has registered 51 with the commission to receive royalty fee revenue in such form as the 52 commission may require; 53 (z) "Sports event" means any professional sport or athletic event and 54 any collegiate sport or athletic event, except a prohibited sports event 55 or a horse racing event;S. 2509--B 66 1 [(h)] (aa) "Sports governing body" means the organization that 2 prescribes final rules and enforces codes of conduct with respect to a 3 sporting event and participants therein; 4 (bb) "Sports pool" means the business of accepting wagers on any 5 sports event by any system or method of wagering; [and6(i)] (cc) "Sports wager" means cash or cash equivalent that is paid by 7 an authorized sports bettor to a casino to participate in sports wager- 8 ing offered by such casino; 9 (dd) "Sports wagering" means wagering on sporting events or any 10 portion thereof, or on the individual performance statistics of athletes 11 participating in a sporting event, or combination of sporting events, by 12 any system or method of wagering, including, but not limited to, in-per- 13 son communication and electronic communication through internet websites 14 accessed via a mobile device or computer and mobile device applications. 15 Any wager through electronic communication shall be deemed to take place 16 at the physical location of the server or other equipment used by an 17 operator to accept mobile sports wagering, regardless of the authorized 18 sports bettor's physical location within the state at the time the wager 19 is initiated. The term "sports wagering" shall include, but is not 20 limited to, single-game bets, teaser bets, parlays, over-under bets, 21 money line, pools, exchange wagering, in-game wagering, in-play bets, 22 proposition bets and straight bets; 23 (ee) "Sports wagering gross revenue" means: (i) the amount equal to 24 the total of all sports wagers not attributable to prohibited sports 25 events that an operator collects from all players, less the total of all 26 sums not attributable to prohibited sports events paid out as winnings 27 to all sports bettors, however, that the total of all sums paid out as 28 winnings to sports bettors shall not include the cash equivalent value 29 of any merchandise or thing of value awarded as a prize, or (ii) in the 30 case of exchange wagering pursuant to this section, the commission on 31 winning sports wagers by authorized sports bettors retained by the oper- 32 ator. The issuance to or wagering by authorized sports bettors at a 33 casino of any promotional gaming credit shall not be taxable for the 34 purposes of determining sports wagering gross revenue; 35 (ff) "Sports wagering lounge" means an area wherein a sports pool is 36 operated; 37 (gg) "Tier one sports wager" means a sports wager that is determined 38 solely by the final score or final outcome of the sports event; 39 (hh) "Tier two sports wager" means an in-play sports wager that is not 40 a tier one sports wager; 41 (ii) "Tier three sports wager" means a sports wager that is neither a 42 tier one nor a tier two sports wager; and 43 (jj) "Indian Tribe" means an Indian Tribe (or an agent of such tribe) 44 that has entered into a tribal-state gaming compact in accordance with 45 the Indian Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168, 46 inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been ratified by 47 the state; 48 (kk) "Unusual betting activity" means abnormal betting activity exhib- 49 ited by patrons and deemed by the casino or operation, pursuant to rules 50 and regulations promulgated by the commission, as a potential indicator 51 of suspicious activity. Abnormal betting activity may include, but is 52 not limited to, the size of a patron's wager or increased betting volume 53 on a particular event or wager type; 54 (ll) "Suspicious betting activity" means unusual betting activity that 55 cannot be explained and is indicative of match fixing, the manipulationS. 2509--B 67 1 of an event, misuse of inside information, or other prohibited activity; 2 and 3 (mm) "Independent integrity monitor" means an independent individual 4 or entity approved by the commission to receive reports of unusual 5 betting activity from a casino or operator for the purpose of assisting 6 in identifying suspicious betting activity. 7 2. [No gaming facility may conduct sports wagering until such time as8there has been a change in federal law authorizing such or upon a ruling9of a court of competent jurisdiction that such activity is lawful.103.] (a) In addition to authorized gaming activities, a [licensed11gaming facility] casino may [when authorized by subdivision two of this12section] operate a sports pool upon the approval of the commission and 13 in accordance with the provisions of this section and applicable regu- 14 lations promulgated pursuant to this article. The commission shall hear 15 and decide promptly and in reasonable order all applications for a 16 license to operate a sports pool, shall have the general responsibility 17 for the implementation of this section and shall have all other duties 18 specified in this section with regard to the operation of a sports pool. 19 The license to operate a sports pool shall be in addition to any other 20 license required to be issued to operate a [gaming facility] casino. No 21 license to operate a sports pool shall be issued by the commission to 22 any entity unless it has established its financial stability, integrity 23 and responsibility and its good character, honesty and integrity. 24 No later than five years after the date of the issuance of a license 25 and every five years thereafter or within such lesser periods as the 26 commission may direct, a licensee shall submit to the commission such 27 documentation or information as the commission may by regulation 28 require, to demonstrate to the satisfaction of the executive director of 29 the commission that the licensee continues to meet the requirements of 30 the law and regulations. 31 (b) As a condition of licensure the commission shall require that each 32 agent authorized to conduct sports wagering pay a one-time fee of twelve 33 million dollars. Such fee shall be paid within thirty days of gaming 34 commission approval prior to license issuance and deposited into the 35 commercial gaming revenue fund established pursuant to section thirteen 36 hundred fifty-two of this article. 37 (c) A sports pool shall be operated in a sports wagering lounge 38 located at a casino. The lounge shall conform to all requirements 39 concerning square footage, design, equipment, security measures and 40 related matters which the commission shall by regulation prescribe. 41 Provided, however, the commission may also approve additional locations 42 for a sports pool within the casino, in areas that have been approved by 43 the commission for the conduct of other gaming, to be operated in a 44 manner and methodology as regulation shall prescribe. 45 [(c)] (d) The operator of a sports pool shall establish or display the 46 odds at which wagers may be placed on sports events. 47 [(d)] (e) An operator shall accept wagers on sports events only from 48 persons physically present in the sports wagering lounge, through mobile 49 sports wagering offered pursuant to section thirteen hundred sixty-sev- 50 en-a of this title, or any additional locations for a sports pool within 51 the casino, approved by the gaming commission. A person placing a wager 52 shall be at least twenty-one years of age. 53 [(e)] (f) An operator may also accept layoff bets as long as the 54 authorized sports pool places such wagers with another authorized sports 55 pool or pools in accordance with regulations of the commission. A sports 56 pool that places a layoff bet shall inform the sports pool accepting theS. 2509--B 68 1 wager that the wager is being placed by a sports pool and shall disclose 2 its identity. 3 (g) An operator may utilize global risk management pursuant to the 4 approval of the commission. 5 (h) An operator shall not admit into the sports wagering lounge, or 6 accept wagers from, any person whose name appears on the exclusion list. 7 [(f)] (i) The holder of a license to operate a sports pool may 8 contract with an [entity] agent to conduct any or all aspects of that 9 operation, or the operation of mobile sports wagering offered pursuant 10 to section thirteen hundred sixty-seven-a of this title, including but 11 not limited to brand, marketing and customer service, in accordance with 12 the regulations of the commission. [That entity] Each agent shall obtain 13 a license as a casino vendor enterprise prior to the execution of any 14 such contract, and such license shall be issued pursuant to the 15 provisions of section one thousand three hundred twenty-seven of this 16 article and in accordance with the regulations promulgated by the 17 commission. 18 [(g)] (j) If any provision of this article or its application to any 19 person or circumstance is held invalid, the invalidity shall not affect 20 other provisions or applications of this article which can be given 21 effect without the invalid provision or application, and to this end the 22 provisions of this article are severable. 23 [4.] 3. (a) All persons employed directly in wagering-related activ- 24 ities conducted within a sports wagering lounge shall be licensed as a 25 casino key employee or registered as a gaming employee, as determined by 26 the commission. All other employees who are working in the sports wager- 27 ing lounge may be required to be registered, if appropriate, in accord- 28 ance with regulations of the commission. 29 (b) Each operator of a sports pool shall designate one or more casino 30 key employees who shall be responsible for the operation of the sports 31 pool. At least one such casino key employee shall be on the premises 32 whenever sports wagering is conducted. 33 [5.] 4. Except as otherwise provided by this article, the commission 34 shall have the authority to regulate sports pools and the conduct of 35 sports wagering under this article to the same extent that the commis- 36 sion regulates other gaming. No casino shall be authorized to operate a 37 sports pool unless it has produced information, documentation, and 38 assurances concerning its financial background and resources, including 39 cash reserves, that are sufficient to demonstrate that it has the finan- 40 cial stability, integrity, and responsibility to operate a sports pool. 41 In developing rules and regulations applicable to sports wagering, the 42 commission shall examine the regulations implemented in other states 43 where sports wagering is conducted and shall, as far as practicable, 44 adopt a similar regulatory framework. The commission shall promulgate 45 regulations necessary to carry out the provisions of this section, 46 including, but not limited to, regulations governing the: 47 (a) amount of cash reserves to be maintained by operators to cover 48 winning wagers; 49 (b) acceptance of wagers on a series of sports events; 50 (c) maximum wagers which may be accepted by an operator from any one 51 patron on any one sports event; 52 (d) type of wagering tickets which may be used; 53 (e) method of issuing tickets; 54 (f) method of accounting to be used by operators; 55 (g) types of records which shall be kept; 56 (h) use of credit and checks by [patrons] authorized sports bettors;S. 2509--B 69 1 (i) the process by which a casino may place a layoff bet; 2 (j) the use of global risk management; 3 (k) type of system for wagering; and 4 [(j)] (l) protections for a person placing a wager. 5 [6.] 5. Each operator shall adopt comprehensive house rules governing 6 sports wagering transactions with its [patrons] authorized sports 7 bettors. The rules shall specify the amounts to be paid on winning 8 wagers and the effect of schedule changes. The house rules, together 9 with any other information the commission deems appropriate, shall be 10 conspicuously displayed in the sports wagering lounge and included in 11 the terms and conditions of the account wagering system, and copies 12 shall be made readily available to [patrons] authorized sports bettors. 13 6. (a) Each casino that offers sports wagering shall annually submit a 14 report to the commission no later than the twenty-eighth of February of 15 each year, which shall include the following information: 16 (i) the total amount of sports wagers received from authorized sports 17 bettors; 18 (ii) the total amount of prizes awarded to authorized sports bettors; 19 (iii) the total amount of sports wagering gross revenue received by 20 the casino; 21 (iv) the total amount contributed in sports betting royalty revenue 22 pursuant to subdivision eight of this section; 23 (v) the total amount of wagers received on each sports governing 24 body's sporting events; 25 (vi) the number of accounts held by authorized sports bettors; 26 (vii) the total number of new accounts established in the preceding 27 year, as well as the total number of accounts permanently closed in the 28 preceding year; 29 (viii) the total number of authorized sports bettors that requested to 30 exclude themselves from sports wagering; and 31 (ix) any additional information that the commission deems necessary to 32 carry out the provisions of this article. 33 (b) Upon the submission of such annual report, to such extent that the 34 commission deems it to be in the public interest, the commission shall 35 be authorized to conduct a financial audit of any casino, at any time, 36 to ensure compliance with this article. 37 (c) The commission shall annually publish a report based on the aggre- 38 gate information provided by all casinos pursuant to paragraph (a) of 39 this subdivision, which shall be published on the commission's website 40 no later than one hundred eighty days after the deadline for the 41 submission of individual reports as specified in such paragraph (a). 42 7. (a) Within thirty days of the end of each calendar quarter, a casi- 43 no offering sports wagering shall remit to the commission a sports 44 wagering royalty fee of one-fifth (.20) of one percent of the amount 45 wagered on sports events conducted by registered sports governing 46 bodies. The fee shall be remitted on a form as the commission may 47 require, on which the casino shall identify the percentage of wagering 48 during the reporting period attributable to each registered sport 49 governing body's sports events. 50 (b) No later than the thirtieth of April of each year, a registered 51 sports governing body may submit a claim for disbursement of the royalty 52 fee funds remitted by casinos in the previous calendar year on their 53 respective sports events. Within thirty days of submitting its claim for 54 disbursement, the registered sports governing body shall meet with the 55 commission to provide the commission with evidence of policies, proce-S. 2509--B 70 1 dures and training programs it has implemented to protect the integrity 2 of its sports events. 3 (c) Within thirty days of its meeting with the registered sports 4 governing body, the commission shall approve a timely claim for 5 disbursement. 6 (d) (i) Persons who present sporting contests shall have authority to 7 remove spectators and others from any facility for violation any appli- 8 cable codes of conduct, and to deny persons access to all facilities 9 they control, to revoke season tickets or comparable licenses, and to 10 share information about such persons with others who present sporting 11 contests and with the appropriate jurisdictions' law enforcement author- 12 ities. 13 (ii) Persons who present sporting contests shall provide notice to the 14 general public and those who attend sporting contests or visit their 15 facilities of any applicable codes of conduct and the potential penal- 16 ties for violating such codes. 17 8. For the privilege of conducting sports wagering in the state, casi- 18 nos shall pay a tax equivalent to eight and one-half percent of their 19 sports wagering gross revenue, excluding sports wagering gross revenue 20 attributed to mobile sports wagering offered pursuant to section thir- 21 teen hundred sixty-seven-a of this title. Casinos shall pay a tax equiv- 22 alent of twelve percent of their sports wagering gross revenue attri- 23 buted to mobile sports wagering offered pursuant to section thirteen 24 hundred sixty-seven-a of this title. 25 9. The commission shall pay into the commercial gaming revenue fund 26 established pursuant to section ninety-seven-nnnn of the state finance 27 law eighty-five percent of the state tax imposed by this section; any 28 interest and penalties imposed by the commission relating to those 29 taxes; all penalties levied and collected by the commission; and the 30 appropriate funds, cash or prizes forfeited from sports wagering. The 31 commission shall pay into the commercial gaming fund five percent of the 32 state tax imposed by this section to be distributed for problem gambling 33 education and treatment purposes pursuant to paragraph a of subdivision 34 four of section ninety-seven-nnnn of the state finance law. The commis- 35 sion shall pay into the commercial gaming fund five percent of the state 36 tax imposed by this section to be distributed for the cost of regulation 37 pursuant to paragraph c of subdivision four of section ninety-seven-nnnn 38 of the state finance law. The commission shall pay into the commercial 39 gaming fund five percent of the state tax imposed by this section to be 40 distributed in the same formula as market origin credits pursuant to 41 section one hundred fifteen-b of this chapter. The commission shall 42 require at least monthly deposits by the casino of any payments pursuant 43 to subdivision eight of this section, at such times, under such condi- 44 tions, and in such depositories as shall be prescribed by the state 45 comptroller. The deposits shall be deposited to the credit of the state 46 commercial gaming revenue fund. The commission shall require a monthly 47 report and reconciliation statement to be filed with it on or before the 48 tenth day of each month, with respect to gross revenues and deposits 49 received and made, respectively, during the preceding month. 50 10. The commission may perform audits of the books and records of a 51 casino, at such times and intervals as it deems appropriate, for the 52 purpose of determining the sufficiency of tax payments. If a return 53 required with regard to obligations imposed is not filed, or if a return 54 when filed or is determined by the commission to be incorrect or insuf- 55 ficient with or without an audit, the amount of tax due shall be deter- 56 mined by the commission. Notice of such determination shall be given toS. 2509--B 71 1 the casino liable for the payment of the tax. Such determination shall 2 finally and irrevocably fix the tax unless the casino against whom it is 3 assessed, within thirty days after receiving notice of such determi- 4 nation, shall apply to the commission for a hearing in accordance with 5 the regulations of the commission. 6 11. Nothing in this section shall apply to interactive fantasy sports 7 offered pursuant to article fourteen of this chapter. Nothing in this 8 section authorizes any entity that conducts interactive fantasy sports 9 offered pursuant to article fourteen of this chapter to conduct sports 10 wagering unless it separately qualifies for, and obtains, authorization 11 pursuant to this section. 12 12. A casino that is also licensed under article three of this chap- 13 ter, and must maintain racing pursuant to paragraph (b) of subdivision 14 one of section thirteen hundred fifty-five of this article, shall be 15 allowed to offer pari-mutuel wagering on horse racing events in accord- 16 ance with their license under article three of this chapter. Notwith- 17 standing subparagraph (ii) of paragraph c of subdivision two of section 18 one thousand eight of this chapter, a casino located in the city of 19 Schenectady shall be allowed to offer pari-mutuel wagering on horse 20 racing events, provided such wagering is conducted by the regional off- 21 track betting corporation in such region as the casino is located. Any 22 other casino shall be allowed to offer pari-mutuel wagering on horse 23 racing events, provided such wagering is conducted by the regional off- 24 track betting corporation in such region as the casino is located. Any 25 physical location where pari-mutuel wagering on horse racing events is 26 offered by a casino and conducted by a regional off-track betting corpo- 27 ration in accordance with this subdivision shall be deemed to be a 28 branch location of the regional off-track betting corporation in accord- 29 ance with section one thousand eight of this chapter. Mobile sports 30 betting kiosks located on the premises of affiliates in accordance with 31 paragraph (d) of subdivision five of section thirteen hundred sixty-sev- 32 en-a of this title shall not be allowed to offer pari-mutuel wagering on 33 horse racing events. 34 13. A sports governing body may notify the commission that it desires 35 to restrict, limit, or exclude wagering on its sporting events by 36 providing notice in the form and manner as the commission may require. 37 Upon receiving such notice, the commission shall review the request in 38 good faith, seek input from the casinos on such a request, and if the 39 commission deems it appropriate, promulgate regulations to restrict such 40 sports wagering. If the commission denies a request, the sports govern- 41 ing body shall be afforded notice and the right to be heard and offer 42 proof in opposition to such determination in accordance with the regu- 43 lations of the commission. Offering or taking wagers contrary to 44 restrictions promulgated by the commission is a violation of this 45 section. In the event that the request is in relation to an emergency 46 situation, the executive director of the commission may temporarily 47 prohibit the specific wager in question until the commission has the 48 opportunity to issue temporary regulations addressing the issue. 49 14. (a) The commission shall designate the division of the state 50 police to have primary responsibility for conducting, or assisting the 51 commission in conducting, investigations into abnormal betting activity, 52 match fixing, and other conduct that corrupts a betting outcome of a 53 sporting event or events for purposes of financial gain. 54 (b) Casinos shall maintain records of sports wagering operations in 55 accordance with regulations promulgated by the commission. These regu- 56 lations shall, at a minimum, require a casino to adopt procedures toS. 2509--B 72 1 obtain personally identifiable information from any individual who plac- 2 es any single wager in an amount of ten thousand dollars or greater. 3 (c) The commission shall cooperate with a sports governing body and 4 casinos to ensure the timely, efficient, and accurate sharing of infor- 5 mation. 6 (d) The commission and casinos shall cooperate with investigations 7 conducted by sports governing bodies or law enforcement agencies, 8 including but not limited to providing or facilitating the provision of 9 account-level betting information and audio or video files relating to 10 persons placing wagers; provided, however, that the casino be required 11 to share any personally identifiable information of an authorized sports 12 bettor with a sports governing body only pursuant to an order to do so 13 by the commission or a law enforcement agency or court of competent 14 jurisdiction. 15 (e) Casinos and operators shall promptly report to the commission or 16 third party integrity monitoring provider approved by the commission, as 17 applicable and in accordance with rules and regulations established by 18 the commission, any information relating to: 19 (i) criminal or disciplinary proceedings commenced against the casino 20 in connection with its operations; 21 (ii) abnormal betting activity or patterns that may indicate a concern 22 with the integrity of a sporting event or events; 23 (iii) any potential breach of the relevant sports governing body's 24 internal rules and codes of conduct pertaining to sports wagering, as 25 they have been provided by the sports governing body to the casino or 26 the operator; 27 (iv) any other conduct that corrupts a betting outcome of a sporting 28 event or events for purposes of financial gain, including match fixing; 29 and 30 (v) suspicious or illegal wagering activities, including use of funds 31 derived from illegal activity, wagers to conceal or launder funds 32 derived from illegal activity, using agents to place wagers, using 33 confidential non-public information, and using false identification. 34 The commission shall also promptly report information relating to 35 conduct described in subparagraphs (ii), (iii) and (iv) of this para- 36 graph to the relevant sports governing body. 37 (vi) The commission shall be authorized to share any information under 38 this section with any law enforcement entity, team, sports governing 39 body, or regulatory agency the division deems appropriate. Such sharing 40 of information may include, but is not limited to, account level betting 41 information and any audio or video files related to the investigation. 42 Provided, however, the casino or operators may only be required to share 43 any personally identifiable information of an authorized sports bettor 44 with a sports governing body only pursuant to an order to do so by the 45 commission, a law enforcement agency or a court of competent jurisdic- 46 tion. 47 (f) The confidentiality of information shared between a sports govern- 48 ing body and a casino or operator shall be maintained pursuant to all 49 applicable data privacy laws, unless disclosure is required by this 50 section, the commission, other law, or court order. Furthermore, the 51 information shared between a sports governing body, a casino, an opera- 52 tor or any other party pursuant to this act may not be used for business 53 or marketing purposes by the recipient without the express written 54 approval of the party that provides such information. 55 (g) The commission, by regulation, may authorize and promulgate any 56 rules necessary to implement agreements with other states, or authorizedS. 2509--B 73 1 agencies thereof to enable the sharing of information to facilitate 2 integrity monitoring and the conduct of investigations into abnormal 3 betting activity, match fixing, and other conduct that corrupts a 4 betting outcome of a sporting event or events for purposes of financial 5 gain. 6 (h) The commission shall study the potential for the creation of an 7 interstate database of all sports wagering information for the purpose 8 of integrity monitoring, and shall create a final report regarding all 9 findings and recommendations to be delivered upon completion of all 10 objectives described herein, but in no event later than March first, two 11 thousand twenty-two, to the governor, the speaker of the assembly and 12 the temporary president of the senate. 13 (i) The commission shall investigate all reasonable allegations of 14 prohibited conduct and refer any allegations it deems credible to the 15 appropriate law enforcement entity. 16 (j) Any person who is (i) an athlete, coach, referee, director of a 17 sports governing body or any of its member teams, a player or other 18 personnel member, in or on any sports event overseen by that person's 19 sports governing body, (ii) holding a position of authority or influence 20 sufficient to exert influence over the participants in a sporting 21 contest, including but not limited to coaches, managers, handlers, 22 athletic trainers, or (iii) a person with access to certain types of 23 non-public information on any sports event overseen by that person's 24 sports governing body, shall not be permitted to place a wager on a 25 sports event that is overseen by that person's sports governing body so 26 long as that person has been identified as a prohibited sports bettor in 27 any lists provided by the sports governing body to the commission, casi- 28 nos, and operators. Any person who violates this paragraph shall be 29 guilty of a disorderly persons offense and shall be fined not less than 30 five hundred dollars and not more than one thousand dollars. 31 (k) Casinos and operators shall adopt procedures to prevent persons 32 from wagering on sports events who are prohibited from placing sports 33 wagers. A casino or operator shall not accept wagers from any person: 34 (i) whose name appears on the exclusion list maintained by the commis- 35 sion and provided to the casino or operator; 36 (ii) whose name appears on any self-exclusion list maintained by the 37 commission and provided to the casino or operator; 38 (iii) who is the operator, director, officer, owner, or employee of 39 the operator or casino or any relative thereof living in the same house- 40 hold as such individual; 41 (iv) who has been identified in a list provided by the sports govern- 42 ing body to the commission and casino or operator, that identifies the 43 individual by such personally identifiable information as specified by 44 rules and regulations promulgated by the commission; 45 (v) who is an agent or proxy for any other person; or 46 (vi) who has identified themselves to the operator as a prohibited 47 sports pool participant. 48 (l) The commission shall establish a hotline or other method of commu- 49 nication that allows any person to confidentially report information 50 about prohibited conduct to the commission. The identity of any person 51 reporting prohibited conduct to the commission shall remain confidential 52 unless that person authorizes disclosure of his or her identity or until 53 such time as the allegation of prohibited conduct is referred to law 54 enforcement.S. 2509--B 74 1 15. (a) Casinos shall use whatever data source they deem appropriate 2 for determining the result of sports wagering involving tier one sports 3 wagers. 4 (b) Casinos shall only use official league data in all sports wagering 5 involving tier two sports wagers, if the relevant sports governing body 6 is headquartered in the United States, possesses a feed of official 7 league data, and makes such feed available for purchase by the casinos 8 on commercially reasonable terms as determined by the commission. 9 (c) A sports governing body may notify the commission that it desires 10 to require casinos to use official league data in sports wagering 11 involving specific tier three sports wagers by providing notice in the 12 form and manner as the commission may require. Upon receiving such 13 notice, the commission shall review the request, seek input from the 14 casinos on such a request, and if the commission deems it appropriate, 15 promulgate regulations to require casinos to use official league data on 16 sports wagering involving such tier three sports wagers if the relevant 17 sports governing body possesses a feed of official league data, and 18 makes such feed available for purchase by the casinos on commercially 19 reasonable terms as determined by the commission. 20 (d) When determining whether or not a supplier of official league data 21 is offering commercially reasonable terms, the commission shall consider 22 the amount charged by the supplier of official league data to gaming 23 operators in other jurisdictions. This information shall be provided to 24 the commission by the supplier of official league data upon request of 25 the commission. Any entity providing data to a casino for the purpose of 26 tier two sports wagers shall obtain a license as a casino vendor enter- 27 prise and such license shall be issued pursuant to the provisions of 28 section thirteen hundred twenty-seven of this article and in accordance 29 with the regulations promulgated by the commission. 30 (e) No casino shall enter into an agreement with a sports governing 31 body or an entity expressly authorized to distribute official league 32 data to be the exclusive recipient of their official league data. 33 (f) The commission shall promulgate regulations to allow an authorized 34 sports bettor to file a complaint alleging an underpayment or non-pay- 35 ment of a winning sports wager. Any such regulations shall provide that 36 the commission utilize the statistics, results, outcomes, and other data 37 relating to a sporting event that have been obtained from the relevant 38 sports governing body in determining the validity of such claim. 39 16. A casino shall not permit sports wagering by anyone they know, or 40 should have known, to be a prohibited sports bettor. 41 17. Sports wagering conducted pursuant to the provisions of this 42 section is hereby authorized. 43 18. The commission shall promulgate rules that require an operator to 44 implement responsible gaming programs that include comprehensive employ- 45 ee trainings on responding to circumstances in which individuals present 46 signs of a gambling addiction and requirements for casinos and operators 47 under section thirteen hundred sixty-seven-a of this title to assess, 48 prevent, and address problem gaming by users under the age of thirty. 49 The commission shall establish a hotline or other method of communi- 50 cation that will allow any person to confidentially report information 51 about prohibited conduct to the commission. The commission shall promul- 52 gate rules governing the investigation and resolution of a charge of any 53 person purported to have engaged in prohibited conduct. 54 19. The conduct of sports wagering in violation of this section is 55 prohibited.S. 2509--B 75 1 20. (a) In addition to any criminal penalties provided for under arti- 2 cle two hundred twenty-five of the penal law, any person, firm, corpo- 3 ration, association, agent, or employee, who is not authorized to offer 4 sports wagering under this section or section thirteen hundred sixty- 5 seven-a of this title, and who knowingly offers or attempts to offer 6 sports wagering or mobile sports wagering in New York shall be liable 7 for a civil penalty of not more than one hundred thousand dollars for 8 each violation, not to exceed five million dollars for violations aris- 9 ing out of the same transaction or occurrence, which shall accrue to the 10 state and may be recovered in a civil action brought by the commission. 11 (b) Any person, firm, corporation, association, agent, or employee who 12 knowingly violates any procedure implemented under this section, or 13 section thirteen hundred sixty-seven-a of this title, shall be liable 14 for a civil penalty of not more than five thousand dollars for each 15 violation, not to exceed fifty thousand dollars for violations arising 16 out of the same transaction or occurrence, which shall accrue to the 17 state and may be recovered in a civil action brought by the commission. 18 § 2. The racing, pari-mutuel wagering and breeding law is amended by 19 adding a new section 1367-a to read as follows: 20 § 1367-a. Mobile sports wagering. 1. (a) Except as provided in this 21 subdivision, the terms in this section shall have the same meanings as 22 such terms are defined in subdivision one of section thirteen hundred 23 sixty-seven of this title. 24 (b) "Operator" for purposes of this section, means a casino which has 25 elected to offer a mobile sports wagering platform, an Indian Tribe (or 26 agent of such Indian Tribe) that has entered into a tribal-state gaming 27 compact in accordance with the Indian Gaming Regulatory Act, 25 U.S.C. 28 2710, that is in effect and has been ratified by the state and has 29 entered into a sports wagering agreement to operate with the commission 30 pursuant to this section, or the agent of such licensed gaming facility 31 or such Indian Tribe. 32 2. (a) No casino shall administer, manage, or otherwise make available 33 a mobile sports wagering platform to persons located in New York state 34 unless registered with the commission pursuant to this section. A casino 35 may use up to two mobile sports wagering platforms and brands provided 36 that such platforms and brands have been reviewed and approved by the 37 commission. A casino may contract with up to two independent operators 38 to provide its mobile sports wagering platforms. An independent operator 39 may display its brand on the platform in addition to the casino's brand. 40 (b) Registrations issued by the commission shall remain in effect for 41 five years. The commission shall establish a process for renewal. 42 (c) The commission shall publish a list of all operators and casinos 43 registered to offer mobile sports wagering in New York state pursuant to 44 this section on the commission's website for public use. 45 3. In the event that a casino contracts with an operator to provide 46 its mobile sports wagering platform and brand, such operator shall 47 obtain a license as a casino vendor enterprise prior to the execution of 48 any such contract, and such license shall be issued pursuant to the 49 provisions of section thirteen hundred twenty-seven of this article and 50 in accordance with the regulations promulgated by the commission. 51 3-a. (a) As a condition of registration as an operator, each casino 52 shall agree, upon request of an Indian Tribe that has not entered into 53 an agreement for mobile sports wagering with another casino, to provide 54 a site for a mobile sports wagering server and related equipment for the 55 Indian Tribe as directed by the commission, at no cost to the IndianS. 2509--B 76 1 Tribe except the direct and actual cost of hosting the server or other 2 equipment used by the Indian Tribe as determined by the commission. 3 (b) As a condition of registration as an operator in New York state, 4 an Indian Tribe shall enter into an agreement with the commission with 5 respect to mobile sports wagering: 6 (i) To follow the requirements imposed on casinos and operators under 7 this section and section thirteen hundred sixty-seven of this title with 8 respect to the Indian Tribe's mobile sports wagering; to adhere to the 9 regulations promulgated by the commission pursuant to this section with 10 respect to mobile sports wagering, and to submit to the commission's 11 enforcement of this section and section thirteen hundred sixty-seven of 12 this title and regulations promulgated thereunder with respect to mobile 13 sports wagering, including by waiving tribal sovereign immunity for the 14 sole and limited purpose of such enforcement. Nothing herein shall be 15 construed as requiring an Indian Tribe's agreement to adhere to the 16 requirements of section thirteen hundred sixty-seven of this title for 17 gaming conducted on tribal lands as a condition of offering mobile 18 sports wagering under this section; 19 (ii) To waive the Indian Tribe's exclusive geographic right to offer 20 and conduct mobile sports wagering, but not otherwise; 21 (iii) To remit payment to the state equal to tax on sports wagering 22 revenue imposed under section thirteen hundred sixty-seven of this title 23 with respect to mobile sports wagering; 24 (iv) Not to offer or to conduct mobile gaming other than mobile sports 25 wagering pursuant to this section unless such mobile gaming is otherwise 26 authorized by state or federal law; and 27 (v) To locate the server or other equipment used by the Indian Tribe 28 or its agent to accept mobile sports wagering at a casino as defined in 29 paragraph (e) of subdivision one of section thirteen hundred sixty-seven 30 of this title that has applied for and is eligible to register as an 31 operator of mobile sports wagering pursuant to this section and to pay 32 the actual cost of hosting the server or other equipment as determined 33 by the commission. 34 (c) All agreements entered into casinos and Indian Tribes with respect 35 to hosting mobile sports wagering platforms for an Indian Tribe: 36 (i) Must be approved by the commission prior to taking effect and 37 before registration of the casino or Indian Tribe as an operator under 38 this section; 39 (ii) Must provide that the Indian Tribe may, at its sole discretion, 40 terminate the agreement and all commitments, undertakings and waivers 41 made by the Indian Tribe thereunder, except that the Indian Tribe's 42 waiver of its exclusive geographic right to offer and conduct mobile 43 sports wagering shall survive the termination of the agreement; 44 (iii) Shall be limited in applicability solely to the Indian Tribe's 45 operation of mobile sports betting and shall not extend to any other 46 operation or activity of the Indian Tribe; and 47 (iv) Shall not create any rights or privileges to any third party who 48 is not a party to the agreement, except that the commission shall have 49 the power to enforce the agreement including by revoking or suspending 50 the registration of a party that fails to comply with its obligations 51 under the agreement. 52 (d) No mobile sports wagering may be conducted within an Indian 53 Tribe's exclusive geographic area unless the Indian Tribe with exclusive 54 geographic right to that area is registered as an operator under this 55 section. Operators shall use geo-location and geo-fencing technology to 56 ensure that mobile sports wagering is not available to persons who areS. 2509--B 77 1 physically located in an Indian Tribe's exclusive geographic area, 2 unless the Indian Tribe with exclusive geographic right to that area is 3 registered as an operator under this section. 4 3-b. (a) The commission shall promulgate regulations to implement the 5 provisions of this section, including: 6 (i) the development of the initial form of the application for regis- 7 tration; 8 (ii) responsible protections with regard to compulsive play safeguards 9 for fair play; 10 (iii) requiring that operators adopt controls to prevent minors from 11 creating accounts and placing wagers; 12 (iv) requiring that operators adopt controls to maintain the efficien- 13 cy of self-exclusion limits; and 14 (v) requiring that operators utilize commercially reasonable techno- 15 logical means of verifying account holders' identities. 16 (b) The commission shall prescribe the initial form of the application 17 for registration, for operators, which shall require, but not be limited 18 to: 19 (i) the full name and principal address of the operator; 20 (ii) if a corporation, the name of the state in which incorporated and 21 the full names and addresses of any partner, officer, director, share- 22 holder holding ten percent or more equity, and ultimate equitable 23 owners; 24 (iii) if a business entity other than a corporation, the full names 25 and addresses of the principals, partners, shareholders holding five 26 percent or more equity, and ultimate equitable owners; 27 (iv) whether such corporation or entity files information and reports 28 with the United States Securities and Exchange Commission as required by 29 section thirteen of the Securities Exchange Act of 1934, 15 U.S.C. §§ 30 78a-78kk; or whether the securities of the corporation or entity are 31 regularly traded on an established securities market in the United 32 States; 33 (v) the type and estimated number of contests to be conducted annual- 34 ly; and 35 (vi) a statement of the assets and liabilities of the operator. 36 (c) The commission may require the full names and addresses of the 37 officers and directors of any creditor of the operator, and of those 38 stockholders who hold more than ten percent of the stock of the credi- 39 tor. 40 (d) Upon receipt of an application for registration for each individ- 41 ual listed on such application as an officer or director, the commission 42 shall submit to the division of criminal justice services a set of fing- 43 erprints, and the division of criminal justice services processing fee 44 imposed pursuant to subdivision eight-a of section eight hundred thir- 45 ty-seven of the executive law and any fee imposed by the federal bureau 46 of investigation. Upon receipt of the fingerprints, the division of 47 criminal justice services shall promptly forward a set of the individ- 48 ual's fingerprints to the federal bureau of investigation for the 49 purpose of a nationwide criminal history record check to determine 50 whether such individual has been convicted of a criminal offense in any 51 state other than New York or in a federal jurisdiction. The division of 52 criminal justice services shall promptly provide the requested criminal 53 history information to the commission. For the purposes of this section, 54 the term "criminal history information" shall mean a record of all 55 convictions of crimes and any pending criminal charges maintained on an 56 individual by the division of criminal justice services and the federalS. 2509--B 78 1 bureau of investigation. All such criminal history information sent to 2 the commission pursuant to this subdivision shall be confidential and 3 shall not be published or in any way disclosed to persons other than the 4 commission, unless otherwise authorized by law. 5 (e) Upon receipt of criminal history information pursuant to paragraph 6 (d) of this subdivision, the commission shall make a determination to 7 approve or deny an application for registration; provided, however, that 8 before making a determination on such application, the commission shall 9 provide the subject of the record with a copy of such criminal history 10 information and a copy of article twenty-three-A of the correction law 11 and inform such prospective applicant seeking to be credentialed of his 12 or her right to seek correction of any incorrect information contained 13 in such criminal history information pursuant to the regulations and 14 procedures established by the division of criminal justice services. 15 The commission shall deny any application for registration, or suspend, 16 refuse to renew, or revoke any existing registration issued pursuant to 17 this article, upon the finding that the operator or registrant, or any 18 partner, officer, director, or shareholder: 19 (i) has knowingly made a false statement of material fact or has 20 deliberately failed to disclose any information required by the commis- 21 sion; 22 (ii) has had a gaming registration or license denied, suspended, or 23 revoked in any other state or country for just cause; 24 (iii) has legally defaulted in the payment of any obligation or debt 25 due to any state or political subdivision; or 26 (iv) has at any time knowingly failed to comply with any requirement 27 outlined in this section, any other provision of this article, any regu- 28 lations promulgated by the commission or any additional requirements of 29 the commission. 30 (f) All determinations to approve or deny an application pursuant to 31 this article shall be performed in a manner consistent with subdivision 32 sixteen of section two hundred ninety-six of the executive law and arti- 33 cle twenty-three-A of the correction law. When the commission denies an 34 application, the operator shall be afforded notice and the right to be 35 heard and offer proof in opposition to such determination in accordance 36 with the regulations of the commission. 37 4. (a) As a condition of registration in New York state, each operator 38 shall implement the following measures: 39 (i) limit each authorized sports bettor to one active and continuously 40 used account on their platform, and prevent anyone they know, or should 41 have known to be a prohibited sports bettor from maintaining accounts or 42 participating in any sports wagering offered by such operator; 43 (ii) adopt appropriate safeguards to ensure, to a reasonable degree of 44 certainty, that authorized sports bettors are physically located within 45 the state when engaging in mobile sports betting; 46 (iii) prohibit minors from participating in any sports wagering, which 47 includes: 48 (1) if an operator becomes or is made aware that a minor has created 49 an account, or accessed the account of another, such operator shall 50 promptly, within no more than two business days, refund any deposit 51 received from the minor, whether or not the minor has engaged in or 52 attempted to engage in sports wagering; provided, however, that any 53 refund may be offset by any prizes already awarded; 54 (2) each operator shall provide parental control procedures to allow 55 parents or guardians to exclude minors from access to any sports wager-S. 2509--B 79 1 ing or platform. Such procedures shall include a toll-free number to 2 call for help in establishing such parental controls; and 3 (3) each operator shall take appropriate steps to confirm that an 4 individual opening an account is not a minor; 5 (iv) when referencing the chances or likelihood of winning in adver- 6 tisements or upon placement of a sports wager, make clear and conspicu- 7 ous statements that are not inaccurate or misleading concerning the 8 chances of winning and the number of winners; 9 (v) enable authorized sports bettors to exclude themselves from sports 10 wagering and take reasonable steps to prevent such bettors from engaging 11 in sports wagering from which they have excluded themselves; 12 (vi) permit any authorized sports bettor to permanently close an 13 account registered to such bettor, on any and all platforms supported by 14 such operator, at any time and for any reason; 15 (vii) offer introductory procedures for authorized sports bettors, 16 that shall be prominently displayed on the main page of such operator 17 platform, that explain sports wagering; 18 (viii) implement measures to protect the privacy and online security 19 of authorized sports bettors and their accounts; 20 (ix) offer all authorized sports bettors access to his or her account 21 history and account details; 22 (x) ensure authorized sports bettors' funds are protected upon deposit 23 and segregated from the operating funds of such operator and otherwise 24 protected from corporate insolvency, financial risk, or criminal or 25 civil actions against such operator; 26 (xi) list on each website, in a prominent place, information concern- 27 ing assistance for compulsive play in New York state, including a toll- 28 free number directing callers to reputable resources containing further 29 information, which shall be free of charge; 30 (xii) ensure no sports wagering shall be based on a prohibited sports 31 event; 32 (xiii) permit account holders to establish self-exclusion gaming 33 limits on a daily, weekly, and monthly basis that enable the account 34 holder to identify the maximum amount of money an account holder may 35 deposit during such period of time; 36 (xiv) when an account holder's lifetime deposits exceed two thousand 37 five hundred dollars, the operator shall prevent any wagering until the 38 patron immediately acknowledges, and acknowledges each year thereafter, 39 that the account holder has met the deposit threshold and may elect to 40 establish responsible gaming limits or close the account, and the 41 account holder has received disclosures from the operator concerning 42 problem gambling resources; 43 (xv) maintain a publicly accessible internet page dedicated to respon- 44 sible play, a link to which must appear on the operator's website and in 45 any mobile application or electronic platform on which a bettor may 46 place wagers. The responsible play page shall include: a statement of 47 the operator's policy and commitment to responsible gaming; information 48 regarding, or links to information regarding, the risks associated with 49 gambling and the potential signs of problem gaming; the availability of 50 self-imposed responsible gaining limits; a link to a problem gaming 51 webpage maintained by the office of addiction services and supports; and 52 such other information or statements as the commission may require by 53 rule; and 54 (xvi) submit annually a problem gaming plan to the commission that 55 includes: the objectives of and timetables for implementing the plan; 56 identification of the persons responsible for implementing and maintain-S. 2509--B 80 1 ing the plan; procedures for identifying users with suspected or known 2 problem gaming behavior; procedures for providing information to users 3 concerning problem gaming identification and resources; procedures to 4 prevent gaming by minors and self-excluded persons; and such other prob- 5 lem gaming information as the commission may require by rule. 6 (b) Operators shall not directly or indirectly operate, promote, or 7 advertise any platform or sports wagering to persons located in New York 8 state unless registered pursuant to this article. 9 (c) Operators shall not offer any sports wagering based on any prohib- 10 ited sports event. 11 (d) Operators shall not permit sports wagering by anyone they know, or 12 should have known, to be a prohibited sports bettor. 13 (e) Advertisements for contests and prizes offered by an operator 14 shall not target prohibited sports bettors, minors, or self-excluded 15 persons. 16 (f) Operators shall prohibit the use of third-party scripts or script- 17 ing programs for any exchange wagering contest and ensure that measures 18 are in place to deter, detect and, to the extent reasonably possible, 19 prevent cheating, including collusion, and the use of cheating devices, 20 including use of software programs that submit exchange wagering sports 21 wagers unless otherwise approved by the commission. 22 (g) Operators shall develop and prominently display procedures on the 23 main page of such operator's platform for the filing of a complaint by 24 an authorized sports bettor against such operator. An initial response 25 shall be given by such operator to such bettor filing the complaint 26 within forty-eight hours. A complete response shall be given by such 27 operator to such bettor filing the complaint within ten business days. 28 An authorized sports bettor may file a complaint alleging a violation of 29 the provisions of this article with the commission. 30 (h) Operators shall maintain records of all accounts belonging to 31 authorized sports bettors and retain such records of all transactions in 32 such accounts for the preceding five years. 33 (i) The server or other equipment which is used by an operator to 34 accept mobile sports wagering shall be located in the licensed gaming 35 facility in accordance with regulations promulgated by the commission. 36 (j) All mobile sports wagering initiated in this state shall be deemed 37 to take place at the licensed gaming facility where the server or other 38 equipment used by an operator to accept mobile sports wagering is 39 located, regardless of the authorized sports bettor's physical location 40 within this state. 41 (k) All mobile sports wagering shall be conducted in compliance with 42 this section and section thirteen hundred sixty-seven of this title. 43 (l) Permit an Indian Tribe pursuant to paragraph (a) of subdivision 44 three-a of this section to place at the licensed gaming facility the 45 server or other equipment by which the Indian Tribe may accept mobile 46 sports wagering, and to make commercially reasonable accommodations as 47 may be necessary to place and operate the Indian Tribe's server or other 48 equipment. 49 5. (a) Subject to regulations promulgated by the commission, casinos 50 may enter into agreements with operators or affiliates to allow for 51 authorized bettors to sign up to create and fund accounts on mobile 52 sports wagering platforms offered by the casino. 53 (b) Authorized sports bettors may sign up to create their account on a 54 mobile sports wagering platform in person at a casino, or an affiliate, 55 or through an operators internet website accessed via a mobile device or 56 computer, or mobile device applications.S. 2509--B 81 1 (c) Authorized sports bettors may deposit and withdraw funds in their 2 account on a mobile sports wagering platform in person at a casino, or 3 an affiliate, electronically recognized payment methods, or via any 4 other means approved by the commission. 5 (d) In accordance with regulations promulgated by the commission, 6 casinos may enter into agreements with affiliates to locate self-service 7 mobile sports betting kiosks, which are owned, operated and maintained 8 by the casino, and connected via the internet to the casino, upon the 9 premises of the affiliate. Authorized sports bettors may place account 10 wagers, and place and redeem non-account cash wagers, at such kiosks. 11 (e) All agreements entered into between casinos and affiliates in 12 relation to the provisions of this section shall be approved by the 13 commission prior to taking effect and shall include a plan for the time- 14 ly payment of liabilities due to the affiliate under the agreement; 15 provided, however, that the commission shall not approve any such agree- 16 ment between a casino and a racetrack licensed pursuant to this chapter 17 or an operator of video lottery gaming at Aqueduct licensed pursuant to 18 section one thousand six hundred seventeen-a of the tax law, until 19 twelve months after the effective date of this paragraph; and provided, 20 further, that the commission shall not approve any such agreement 21 between a casino and a professional sports stadium or arena, until twen- 22 ty months after the effective date of this paragraph. 23 6. The commission shall annually cause a report to be prepared and 24 distributed to the governor and the legislature on the impact of mobile 25 sports wagering on problem gamblers in New York. The report shall 26 include an assessment of problem gaming among persons under the age of 27 thirty. The report shall be prepared by a non-governmental organization 28 or entity with expertise in serving the needs of persons with gambling 29 addictions. The report shall be prepared and distributed under the 30 supervision of and in coordination with the commission. The costs asso- 31 ciated with the preparation and distribution of the report shall be 32 borne by operators and the commission shall be authorized to assess a 33 fee against operators for these purposes. The commission shall also 34 report periodically to the governor and the legislature on the effec- 35 tiveness of the statutory and regulatory controls in place to ensure the 36 integrity of mobile sports wagering operations. 37 § 3. Section 104 of the racing, pari-mutuel wagering and breeding law 38 is amended by adding a new subdivision 24 to read as follows: 39 24. To regulate sports wagering in New York state. 40 § 4. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering 41 and breeding law, as added by chapter 174 of the laws of 2013, is 42 amended to read as follows: 43 1. (a) For a gaming facility in zone two, there is hereby imposed a 44 tax on gross gaming revenues. The amount of such tax imposed shall be 45 as follows[; provided, however, should a licensee have agreed within its46application to supplement the tax with a binding supplemental fee47payment exceeding the aforementioned tax rate, such tax and supplemental48fee shall apply for a gaming facility]: 49 [(a)] (1) in region two, forty-five percent of gross gaming revenue 50 from slot machines and ten percent of gross gaming revenue from all 51 other sources. 52 [(b)] (2) in region one, thirty-nine percent of gross gaming revenue 53 from slot machines and ten percent of gross gaming revenue from all 54 other sources.S. 2509--B 82 1 [(c)] (3) in region five, thirty-seven percent of gross gaming revenue 2 from slot machines and ten percent of gross gaming revenue from all 3 other sources. 4 (b) (1) Notwithstanding the rates in paragraph (a) of this subdivi- 5 sion, a gaming facility may petition the commission to lower the tax 6 rate applicable to its slot machines to no lower than eighty percent of 7 the current tax rate applicable to such slot machines. The commission 8 shall evaluate the petition using the following criteria: 9 (i) the ability of the licensee to satisfy the license criterion of 10 financial stability absent the tax rate reduction; 11 (ii) a complete examination of all financial projections, as well as 12 gaming revenues generated for the prior annual period; 13 (iii) the licensee's intended use of the funds resulting from a tax 14 adjustment; 15 (iv) the inability of the operator to remain competitive under the 16 current tax structure; 17 (v) positions advanced by other gaming operators in the state in 18 response to the petition; 19 (vi) the impact on the competitive landscape; 20 (vii) other economic factors such as employment and the potential 21 impact upon other businesses in the region; and 22 (viii) the public interest to be served by a tax adjustment, including 23 the impact upon the state in the event the operator is unable to remain 24 financially viable. 25 (2) The commission shall report their recommendation to the director 26 of the division of budget who will make a final determination, provided 27 however, that prior to the final determination by the director of the 28 division of budget, the gaming commission and the director of the divi- 29 sion of budget shall notify in writing the chairs of the senate finance 30 committee and assembly ways and means committee detailing the recommen- 31 dation made by the gaming commission and the proposed final determi- 32 nation by such director, respectively. The legislature shall then have 33 ten days following the receipt of the written notification from the 34 director of the division of budget to either prepare its own plan, which 35 may take into consideration the recommendation made by the gaming 36 commission, and which shall be adopted by concurrent resolution passed 37 by both houses, or if after ten days the legislature fails to adopt 38 its own plan, the final determination proposed by the director of the 39 division of budget will go into effect automatically. 40 § 5. Severability clause. If any provision of this act or application 41 thereof shall for any reason be adjudged by any court of competent 42 jurisdiction to be invalid, such judgment shall not affect, impair, or 43 invalidate the remainder of the act, but shall be confined in its opera- 44 tion to the provision thereof directly involved in the controversy in 45 which the judgment shall have been rendered. 46 § 6. This act shall take effect immediately; provided, however, that 47 section four of this act shall take effect sixty days after mobile 48 sports wagering commences and shall expire and be deemed repealed one 49 year after such date. 50 PART Z 51 Intentionally Omitted 52 PART AAS. 2509--B 83 1 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax 2 law, as amended by chapter 174 of the laws of 2013, is amended to read 3 as follows: 4 (1) sixty percent of the total amount for which tickets have been sold 5 for [a lawful lottery] the Quick Draw game [introduced on or after the6effective date of this paragraph,] subject to [the following provisions:7(A) such game shall be available only on premises occupied by licensed8lottery sales agents, subject to the following provisions:9(i) if the licensee does not hold a license issued pursuant to the10alcoholic beverage control law to sell alcoholic beverages for consump-11tion on the premises, then the premises must have a minimum square12footage greater than two thousand five hundred square feet;13(ii) notwithstanding the foregoing provisions, television equipment14that automatically displays the results of such drawings may be15installed and used without regard to the square footage if such premises16are used as:17(I) a commercial bowling establishment, or18(II) a facility authorized under the racing, pari-mutuel wagering and19breeding law to accept pari-mutuel wagers;20(B) the] rules for the operation of such game [shall be] as prescribed 21 by regulations promulgated and adopted by the [division, provided howev-22er, that such rules shall provide that no person under the age of twen-23ty-one may participate in such games on the premises of a licensee who24holds a license issued pursuant to the alcoholic beverage control law to25sell alcoholic beverages for consumption on the premises; and, provided,26further, that such regulations may be revised on an emergency basis not27later than ninety days after the enactment of this paragraph in order to28conform such regulations to the requirements of this paragraph] commis- 29 sion; or 30 § 2. This act shall take effect immediately. 31 PART BB 32 Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the 33 tax law, as amended by chapter 174 of the laws of 2013, are amended to 34 read as follows: 35 (4) fifty percent of the total amount for which tickets have been sold 36 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete 37 games in which the participants select no more than three or four of 38 their own numbers to match with three or four numbers drawn by the 39 [division] commission for purposes of determining winners of such games, 40 (B) "Pick 10", [offered no more than once daily,] in which participants 41 select from a specified field of numbers a subset of ten numbers to 42 match against a subset of numbers to be drawn by the [division] commis- 43 sion from such field of numbers for the purpose of determining winners 44 of such game, (C) "Take 5", [offered no more than once daily,] in which 45 participants select from a specified field of numbers a subset of five 46 numbers to match against a subset of five numbers to be drawn by the 47 [division] commission from such field of numbers for purposes of deter- 48 mining winners of such game; or 49 (5) forty percent of the total amount for which tickets have been sold 50 for: (A) "Lotto", [offered no more than once daily,] a discrete game in 51 which all participants select a specific subset of numbers to match a 52 specific subset of numbers, as prescribed by rules and regulations 53 promulgated and adopted by the [division] commission, from a larger 54 specific field of numbers, as also prescribed by such rules and regu-S. 2509--B 84 1 lations and (B) with the exception of the game described in paragraph 2 one of this subdivision, such other state-operated lottery games [which] 3 that the [division] commission may introduce, [offered no more than once4daily,] commencing on or after forty-five days following the official 5 publication of the rules and regulations for such game. 6 § 2. This act shall take effect immediately. 7 PART CC 8 Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- 9 tuel wagering and breeding law are renumbered sections 130, 131, 132 and 10 133. 11 § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and 12 breeding law is REPEALED. 13 § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, 14 as added by chapter 174 of the laws of 2013 and as renumbered by section 15 one of this act, is amended to read as follows: 16 § 130. [Establishment of the] The office of gaming inspector general. 17 [There is hereby created within the commission the office of gaming18inspector general. The head of the office shall be the gaming inspector19general who shall be appointed by the governor by and with the advice20and consent of the senate. The inspector general shall serve at the21pleasure of the governor. The inspector general shall report directly to22the governor. The person appointed as inspector general shall, upon his23or her appointment, have not less than ten years professional experience24in law, investigation, or auditing. The inspector general shall be25compensated within the limits of funds available therefor, provided,26however, such salary shall be no less than the salaries of certain state27officers holding the positions indicated in paragraph (a) of subdivision28one of section one hundred sixty-nine of the executive law.] The duties 29 and responsibilities of the former office of the gaming inspector gener- 30 al are transferred to and encompassed by the office of the state inspec- 31 tor general as expressly referenced in article four-A of the executive 32 law. 33 § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, 34 as added by chapter 174 of the laws of 2013 and as renumbered by section 35 one of this act, is amended to read as follows: 36 § 131. [State gaming] Gaming inspector general; functions and duties. 37 The [state] gaming inspector general shall have the following duties and 38 responsibilities: 39 1. receive and investigate complaints from any source, or upon his or 40 her own initiative, concerning allegations of corruption, fraud, crimi- 41 nal activity, conflicts of interest or abuse in the commission; 42 2. [inform the commission members of such allegations and the progress43of investigations related thereto, unless special circumstances require44confidentiality;453.] determine with respect to such allegations whether disciplinary 46 action, civil or criminal prosecution, or further investigation by an 47 appropriate federal, state or local agency is warranted, and to assist 48 in such investigations; 49 [4.] 3. prepare and release to the public written reports of such 50 investigations, as appropriate and to the extent permitted by law, 51 subject to redaction to protect the confidentiality of witnesses. The 52 release of all or portions of such reports may be deferred to protect 53 the confidentiality of ongoing investigations;S. 2509--B 85 1 [5.] 4. review and examine periodically the policies and procedures of 2 the commission with regard to the prevention and detection of 3 corruption, fraud, criminal activity, conflicts of interest or abuse; 4 [6.] 5. recommend remedial action to prevent or eliminate corruption, 5 fraud, criminal activity, conflicts of interest or abuse in the commis- 6 sion; and 7 [7.] 6. establish programs for training commission officers and 8 employees [regarding] in regard to the prevention and elimination of 9 corruption, fraud, criminal activity, conflicts of interest or abuse in 10 the commission. 11 § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, 12 as added by chapter 174 of the laws of 2013 and as renumbered by section 13 one of this act, is amended to read as follows: 14 § 132. Powers. The [state] gaming inspector general shall have the 15 power to: 16 1. subpoena and enforce the attendance of witnesses; 17 2. administer oaths or affirmations and examine witnesses under oath; 18 3. require the production of any books and papers deemed relevant or 19 material to any investigation, examination or review; 20 4. notwithstanding any law to the contrary, examine and copy or remove 21 documents or records of any kind prepared, maintained or held by the 22 commission; 23 5. require any commission officer or employee to answer questions 24 concerning any matter related to the performance of his or her official 25 duties. No statement or other evidence derived therefrom may be used 26 against such officer or employee in any subsequent criminal prosecution 27 other than for perjury or contempt arising from such testimony. The 28 refusal of any officer or employee to answer questions shall be cause 29 for removal from office or employment or other appropriate penalty; 30 6. monitor the implementation by the commission of any recommendations 31 made by the state inspector general; and 32 7. perform any other functions that are necessary or appropriate to 33 fulfill the duties and responsibilities of the office. 34 § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, 35 as added by chapter 174 of the laws of 2013 and as renumbered by section 36 one of this act, is amended to read as follows: 37 § 133. Responsibilities of the commission and its officers and employ- 38 ees. 1. Every commission officer or employee shall report promptly to 39 the [state] gaming inspector general any information concerning 40 corruption, fraud, criminal activity, conflicts of interest or abuse by 41 another state officer or employee relating to his or her office or 42 employment, or by a person having business dealings with the commission 43 relating to those dealings. The knowing failure of any officer or 44 employee to so report shall be cause for removal from office or employ- 45 ment or other appropriate penalty under this article. Any officer or 46 employee who acts pursuant to this subdivision by reporting to the 47 [state] gaming inspector general or other appropriate law enforcement 48 official improper governmental action as defined in section seventy- 49 five-b of the civil service law shall not be subject to dismissal, 50 discipline or other adverse personnel action. 51 2. The commission chair shall advise the governor within ninety days 52 of the issuance of a report by the [state] gaming inspector general as 53 to the remedial action that the commission has taken in response to any 54 recommendation for such action contained in such report. 55 § 7. The racing, pari-mutuel wagering and breeding law is amended by 56 adding a new section 134 to read as follows:S. 2509--B 86 1 § 134. Transfer of employees. Upon the transfer of functions, 2 powers, duties and obligations to the office of the state inspector 3 general pursuant to this article, provision shall be made for the 4 transfer of all gaming inspector general employees from within the 5 gaming commission into the office of the state inspector general. 6 Employees so transferred shall be transferred without further exam- 7 ination or qualification to the same or similar titles, shall 8 remain in the same collective bargaining units and shall retain their 9 respective civil service classifications, status and rights pursuant to 10 their collective bargaining units and collective bargaining agree- 11 ments. 12 § 8. The racing, pari-mutuel wagering and breeding law is amended by 13 adding a new section 135 to read as follows: 14 § 135. Transfer of records. All books, papers, records and property of 15 the gaming inspector general within the gaming commission with respect 16 to the functions, powers, duties and obligations transferred by 17 section one hundred thirty of this article, are to be delivered to the 18 appropriate successor offices within the office of the state inspector 19 general, at such place and time, and in such manner as the office of 20 the state inspector general may require. 21 § 9. This act shall take effect on the sixtieth day after it shall 22 have become a law. 23 PART DD 24 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 25 racing, pari-mutuel wagering and breeding law, as amended by section 1 26 of part Z of chapter 59 of the laws of 2020, is amended to read as 27 follows: 28 (a) Any racing association or corporation or regional off-track 29 betting corporation, authorized to conduct pari-mutuel wagering under 30 this chapter, desiring to display the simulcast of horse races on which 31 pari-mutuel betting shall be permitted in the manner and subject to the 32 conditions provided for in this article may apply to the commission for 33 a license so to do. Applications for licenses shall be in such form as 34 may be prescribed by the commission and shall contain such information 35 or other material or evidence as the commission may require. No license 36 shall be issued by the commission authorizing the simulcast transmission 37 of thoroughbred races from a track located in Suffolk county. The fee 38 for such licenses shall be five hundred dollars per simulcast facility 39 and for account wagering licensees that do not operate either a simul- 40 cast facility that is open to the public within the state of New York or 41 a licensed racetrack within the state, twenty thousand dollars per year 42 payable by the licensee to the commission for deposit into the general 43 fund. Except as provided in this section, the commission shall not 44 approve any application to conduct simulcasting into individual or group 45 residences, homes or other areas for the purposes of or in connection 46 with pari-mutuel wagering. The commission may approve simulcasting into 47 residences, homes or other areas to be conducted jointly by one or more 48 regional off-track betting corporations and one or more of the follow- 49 ing: a franchised corporation, thoroughbred racing corporation or a 50 harness racing corporation or association; provided (i) the simulcasting 51 consists only of those races on which pari-mutuel betting is authorized 52 by this chapter at one or more simulcast facilities for each of the 53 contracting off-track betting corporations which shall include wagers 54 made in accordance with section one thousand fifteen, one thousandS. 2509--B 87 1 sixteen and one thousand seventeen of this article; provided further 2 that the contract provisions or other simulcast arrangements for such 3 simulcast facility shall be no less favorable than those in effect on 4 January first, two thousand five; (ii) that each off-track betting 5 corporation having within its geographic boundaries such residences, 6 homes or other areas technically capable of receiving the simulcast 7 signal shall be a contracting party; (iii) the distribution of revenues 8 shall be subject to contractual agreement of the parties except that 9 statutory payments to non-contracting parties, if any, may not be 10 reduced; provided, however, that nothing herein to the contrary shall 11 prevent a track from televising its races on an irregular basis primari- 12 ly for promotional or marketing purposes as found by the commission. For 13 purposes of this paragraph, the provisions of section one thousand thir- 14 teen of this article shall not apply. Any agreement authorizing an 15 in-home simulcasting experiment commencing prior to May fifteenth, nine- 16 teen hundred ninety-five, may, and all its terms, be extended until June 17 thirtieth, two thousand [twenty-one] twenty-two; provided, however, that 18 any party to such agreement may elect to terminate such agreement upon 19 conveying written notice to all other parties of such agreement at least 20 forty-five days prior to the effective date of the termination, via 21 registered mail. Any party to an agreement receiving such notice of an 22 intent to terminate, may request the commission to mediate between the 23 parties new terms and conditions in a replacement agreement between the 24 parties as will permit continuation of an in-home experiment until June 25 thirtieth, two thousand [twenty-one] twenty-two; and (iv) no in-home 26 simulcasting in the thoroughbred special betting district shall occur 27 without the approval of the regional thoroughbred track. 28 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 29 1007 of the racing, pari-mutuel wagering and breeding law, as separately 30 amended by chapter 243 and section 2 of part Z of chapter 59 of the laws 31 of 2020, is amended to read as follows: 32 (iii) Of the sums retained by a receiving track located in Westchester 33 county on races received from a franchised corporation, for the period 34 commencing January first, two thousand eight and continuing through June 35 thirtieth, two thousand [twenty-one] twenty-two, the amount used exclu- 36 sively for purses to be awarded at races conducted by such receiving 37 track shall be computed as follows: of the sums so retained, two and 38 one-half percent of the total pools. Such amount shall be increased or 39 decreased in the amount of fifty percent of the difference in total 40 commissions determined by comparing the total commissions available 41 after July twenty-first, nineteen hundred ninety-five to the total 42 commissions that would have been available to such track prior to July 43 twenty-first, nineteen hundred ninety-five. 44 § 3. The opening paragraph of subdivision 1 of section 1014 of the 45 racing, pari-mutuel wagering and breeding law, as separately amended by 46 section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 47 is amended to read as follows: 48 The provisions of this section shall govern the simulcasting of races 49 conducted at thoroughbred tracks located in another state or country on 50 any day during which a franchised corporation is conducting a race meet- 51 ing in Saratoga county at Saratoga thoroughbred racetrack until June 52 thirtieth, two thousand [twenty-one] twenty-two and on any day regard- 53 less of whether or not a franchised corporation is conducting a race 54 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 55 thirtieth, two thousand [twenty-one] twenty-two. On any day on which a 56 franchised corporation has not scheduled a racing program but aS. 2509--B 88 1 thoroughbred racing corporation located within the state is conducting 2 racing, each off-track betting corporation branch office and each simul- 3 casting facility licensed in accordance with section one thousand seven 4 (that has entered into a written agreement with such facility's repre- 5 sentative horsemen's organization, as approved by the commission), one 6 thousand eight, or one thousand nine of this article shall be authorized 7 to accept wagers and display the live simulcast signal from thoroughbred 8 tracks located in another state or foreign country subject to the 9 following provisions: 10 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 11 and breeding law, as amended by section 4 of part Z of chapter 59 of the 12 laws of 2020, is amended to read as follows: 13 1. The provisions of this section shall govern the simulcasting of 14 races conducted at harness tracks located in another state or country 15 during the period July first, nineteen hundred ninety-four through June 16 thirtieth, two thousand [twenty-one] twenty-two. This section shall 17 supersede all inconsistent provisions of this chapter. 18 § 5. The opening paragraph of subdivision 1 of section 1016 of the 19 racing, pari-mutuel wagering and breeding law, as amended by section 5 20 of part Z of chapter 59 of the laws of 2020, is amended to read as 21 follows: 22 The provisions of this section shall govern the simulcasting of races 23 conducted at thoroughbred tracks located in another state or country on 24 any day during which a franchised corporation is not conducting a race 25 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 26 thirtieth, two thousand [twenty-one] twenty-two. Every off-track 27 betting corporation branch office and every simulcasting facility 28 licensed in accordance with section one thousand seven that have entered 29 into a written agreement with such facility's representative horsemen's 30 organization as approved by the commission, one thousand eight or one 31 thousand nine of this article shall be authorized to accept wagers and 32 display the live full-card simulcast signal of thoroughbred tracks 33 (which may include quarter horse or mixed meetings provided that all 34 such wagering on such races shall be construed to be thoroughbred races) 35 located in another state or foreign country, subject to the following 36 provisions; provided, however, no such written agreement shall be 37 required of a franchised corporation licensed in accordance with section 38 one thousand seven of this article: 39 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 40 wagering and breeding law, as amended by section 6 of part Z of chapter 41 59 of the laws of 2020, is amended to read as follows: 42 Notwithstanding any other provision of this chapter, for the period 43 July twenty-fifth, two thousand one through September eighth, two thou- 44 sand [twenty] twenty-one, when a franchised corporation is conducting a 45 race meeting within the state at Saratoga Race Course, every off-track 46 betting corporation branch office and every simulcasting facility 47 licensed in accordance with section one thousand seven (that has entered 48 into a written agreement with such facility's representative horsemen's 49 organization as approved by the commission), one thousand eight or one 50 thousand nine of this article shall be authorized to accept wagers and 51 display the live simulcast signal from thoroughbred tracks located in 52 another state, provided that such facility shall accept wagers on races 53 run at all in-state thoroughbred tracks which are conducting racing 54 programs subject to the following provisions; provided, however, no such 55 written agreement shall be required of a franchised corporation licensed 56 in accordance with section one thousand seven of this article.S. 2509--B 89 1 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 2 racing, pari-mutuel wagering and breeding law and other laws relating to 3 simulcasting, as amended by section 7 of part Z of chapter 59 of the 4 laws of 2020, is amended to read as follows: 5 § 32. This act shall take effect immediately and the pari-mutuel tax 6 reductions in section six of this act shall expire and be deemed 7 repealed on July 1, [2021] 2022; provided, however, that nothing 8 contained herein shall be deemed to affect the application, qualifica- 9 tion, expiration, or repeal of any provision of law amended by any 10 section of this act, and such provisions shall be applied or qualified 11 or shall expire or be deemed repealed in the same manner, to the same 12 extent and on the same date as the case may be as otherwise provided by 13 law; provided further, however, that sections twenty-three and twenty- 14 five of this act shall remain in full force and effect only until May 1, 15 1997 and at such time shall be deemed to be repealed. 16 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 17 racing, pari-mutuel wagering and breeding law and other laws relating to 18 simulcasting and the imposition of certain taxes, as amended by section 19 8 of part Z of chapter 59 of the laws of 2020, is amended to read as 20 follows: 21 § 54. This act shall take effect immediately; provided, however, 22 sections three through twelve of this act shall take effect on January 23 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 24 ing law, as added by section thirty-eight of this act, shall expire and 25 be deemed repealed on July 1, [2021] 2022; and section eighteen of this 26 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 27 two of this act shall take effect as of the same date as chapter 772 of 28 the laws of 1989 took effect. 29 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 30 pari-mutuel wagering and breeding law, as separately amended by section 31 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, is 32 amended to read as follows: 33 (a) The franchised corporation authorized under this chapter to 34 conduct pari-mutuel betting at a race meeting or races run thereat shall 35 distribute all sums deposited in any pari-mutuel pool to the holders of 36 winning tickets therein, provided such tickets are presented for payment 37 before April first of the year following the year of their purchase, 38 less an amount that shall be established and retained by such franchised 39 corporation of between twelve to seventeen percent of the total deposits 40 in pools resulting from on-track regular bets, and fourteen to twenty- 41 one percent of the total deposits in pools resulting from on-track 42 multiple bets and fifteen to twenty-five percent of the total deposits 43 in pools resulting from on-track exotic bets and fifteen to thirty-six 44 percent of the total deposits in pools resulting from on-track super 45 exotic bets, plus the breaks. The retention rate to be established is 46 subject to the prior approval of the commission. 47 Such rate may not be changed more than once per calendar quarter to be 48 effective on the first day of the calendar quarter. "Exotic bets" and 49 "multiple bets" shall have the meanings set forth in section five 50 hundred nineteen of this chapter. "Super exotic bets" shall have the 51 meaning set forth in section three hundred one of this chapter. For 52 purposes of this section, a "pick six bet" shall mean a single bet or 53 wager on the outcomes of six races. The breaks are hereby defined as the 54 odd cents over any multiple of five for payoffs greater than one dollar 55 five cents but less than five dollars, over any multiple of ten for 56 payoffs greater than five dollars but less than twenty-five dollars,S. 2509--B 90 1 over any multiple of twenty-five for payoffs greater than twenty-five 2 dollars but less than two hundred fifty dollars, or over any multiple of 3 fifty for payoffs over two hundred fifty dollars. Out of the amount so 4 retained there shall be paid by such franchised corporation to the 5 commissioner of taxation and finance, as a reasonable tax by the state 6 for the privilege of conducting pari-mutuel betting on the races run at 7 the race meetings held by such franchised corporation, the following 8 percentages of the total pool for regular and multiple bets five percent 9 of regular bets and four percent of multiple bets plus twenty percent of 10 the breaks; for exotic wagers seven and one-half percent plus twenty 11 percent of the breaks, and for super exotic bets seven and one-half 12 percent plus fifty percent of the breaks. 13 For the period April first, two thousand one through December thirty- 14 first, two thousand [twenty-one] twenty-two, such tax on all wagers 15 shall be one and six-tenths percent, plus, in each such period, twenty 16 percent of the breaks. Payment to the New York state thoroughbred breed- 17 ing and development fund by such franchised corporation shall be one- 18 half of one percent of total daily on-track pari-mutuel pools resulting 19 from regular, multiple and exotic bets and three percent of super exotic 20 bets and for the period April first, two thousand one through December 21 thirty-first, two thousand [twenty-one] twenty-two, such payment shall 22 be seven-tenths of one percent of regular, multiple and exotic pools. 23 § 10. This act shall take effect immediately. 24 PART EE 25 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 26 amending the tax law and other laws relating to providing exemptions, 27 reimbursements and credits from various taxes for certain alternative 28 fuels, as amended by section 1 of part U of chapter 60 of the laws of 29 2016, is amended to read as follows: 30 § 19. This act shall take effect immediately; provided, however, that 31 sections one through thirteen of this act shall take effect September 1, 32 2006 and shall be deemed repealed on September 1, [2021] 2026 and such 33 repeal shall apply in accordance with the applicable transitional 34 provisions of sections 1106 and 1217 of the tax law, and shall apply to 35 sales made, fuel compounded or manufactured, and uses occurring on or 36 after such date, and with respect to sections seven through eleven of 37 this act, in accordance with applicable transitional provisions of 38 sections 1106 and 1217 of the tax law; provided, however, that the 39 commissioner of taxation and finance shall be authorized on and after 40 the date this act shall have become a law to adopt and amend any rules 41 or regulations and to take any steps necessary to implement the 42 provisions of this act; provided further that sections fourteen through 43 sixteen of this act shall take effect immediately and shall apply to 44 taxable years beginning on or after January 1, 2006. 45 § 2. This act shall take effect immediately. 46 PART FF 47 Section 1. Subsection (e) of section 42 of the tax law, as added by 48 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 49 read as follows: 50 (e) For taxable years beginning on or after January first, two thou- 51 sand seventeen and before January first, two thousand eighteen, the 52 amount of the credit allowed under this section shall be equal to theS. 2509--B 91 1 product of the total number of eligible farm employees and two hundred 2 fifty dollars. For taxable years beginning on or after January first, 3 two thousand eighteen and before January first, two thousand nineteen, 4 the amount of the credit allowed under this section shall be equal to 5 the product of the total number of eligible farm employees and three 6 hundred dollars. For taxable years beginning on or after January first, 7 two thousand nineteen and before January first, two thousand twenty, the 8 amount of the credit allowed under this section shall be equal to the 9 product of the total number of eligible farm employees and five hundred 10 dollars. For taxable years beginning on or after January first, two 11 thousand twenty and before January first, two thousand twenty-one, the 12 amount of the credit allowed under this section shall be equal to the 13 product of the total number of eligible farm employees and four hundred 14 dollars. For taxable years beginning on or after January first, two 15 thousand twenty-one and before January first, two thousand [twenty-two] 16 twenty-five, the amount of the credit allowed under this section shall 17 be equal to the product of the total number of eligible farm employees 18 and six hundred dollars. 19 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 20 the tax law relating to creating a farm workforce retention credit is 21 amended to read as follows: 22 § 5. This act shall take effect immediately and shall apply only to 23 taxable years beginning on or after January 1, 2017 and before January 24 1, [2022] 2025. 25 § 3. This act shall take effect immediately. 26 PART GG 27 Section 1. Subdivision 4 of section 22 of the public housing law, as 28 amended by section 5 of part H of chapter 60 of the laws of 2016, is 29 amended to read as follows: 30 4. Statewide limitation. The aggregate dollar amount of credit which 31 the commissioner may allocate to eligible low-income buildings under 32 this article shall be one hundred [four] twelve million dollars. The 33 limitation provided by this subdivision applies only to allocation of 34 the aggregate dollar amount of credit by the commissioner, and does not 35 apply to allowance to a taxpayer of the credit with respect to an eligi- 36 ble low-income building for each year of the credit period. 37 § 2. Subdivision 4 of section 22 of the public housing law, as amended 38 by section one of this act, is amended to read as follows: 39 4. Statewide limitation. The aggregate dollar amount of credit which 40 the commissioner may allocate to eligible low-income buildings under 41 this article shall be one hundred [twelve] twenty million dollars. The 42 limitation provided by this subdivision applies only to allocation of 43 the aggregate dollar amount of credit by the commissioner, and does not 44 apply to allowance to a taxpayer of the credit with respect to an eligi- 45 ble low-income building for each year of the credit period. 46 § 3. Subdivision 4 of section 22 of the public housing law, as amended 47 by section two of this act, is amended to read as follows: 48 4. Statewide limitation. The aggregate dollar amount of credit which 49 the commissioner may allocate to eligible low-income buildings under 50 this article shall be one hundred [twenty] twenty-eight million dollars. 51 The limitation provided by this subdivision applies only to allocation 52 of the aggregate dollar amount of credit by the commissioner, and does 53 not apply to allowance to a taxpayer of the credit with respect to an 54 eligible low-income building for each year of the credit period.S. 2509--B 92 1 § 4. Subdivision 4 of section 22 of the public housing law, as amended 2 by section three of this act, is amended to read as follows: 3 4. Statewide limitation. The aggregate dollar amount of credit which 4 the commissioner may allocate to eligible low-income buildings under 5 this article shall be one hundred [twenty-eight] thirty-six million 6 dollars. The limitation provided by this subdivision applies only to 7 allocation of the aggregate dollar amount of credit by the commissioner, 8 and does not apply to allowance to a taxpayer of the credit with respect 9 to an eligible low-income building for each year of the credit period. 10 § 5. Subdivision 4 of section 22 of the public housing law, as amended 11 by section four of this act, is amended to read as follows: 12 4. Statewide limitation. The aggregate dollar amount of credit which 13 the commissioner may allocate to eligible low-income buildings under 14 this article shall be one hundred [thirty-six] forty-four million 15 dollars. The limitation provided by this subdivision applies only to 16 allocation of the aggregate dollar amount of credit by the commissioner, 17 and does not apply to allowance to a taxpayer of the credit with respect 18 to an eligible low-income building for each year of the credit period. 19 § 6. This act shall take effect immediately; provided, however, 20 section two of this act shall take effect April 1, 2022; section three 21 of this act shall take effect April 1, 2023; section four of this act 22 shall take effect April 1, 2024; and section five of this act shall take 23 effect April 1, 2025. 24 PART HH 25 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 26 amending the tax law relating to a musical and theatrical production 27 credit, as amended by section 1 of part III of chapter 59 of the laws of 28 2018, is amended to read as follows: 29 § 5. This act shall take effect immediately, provided that section two 30 of this act shall take effect on January 1, 2015, and shall apply to 31 taxable years beginning on or after January 1, 2015, with respect to 32 "qualified production expenditures" and "transportation expenditures" 33 paid or incurred on or after such effective date, regardless of whether 34 the production of the qualified musical or theatrical production 35 commenced before such date, provided further that this act shall expire 36 and be deemed repealed [8 years after such date] January 1, 2026. 37 § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as 38 added by section 1 of part HH of chapter 59 of the laws of 2014, is 39 amended to read as follows: 40 (1) The aggregate amount of tax credits allowed under this section, 41 subdivision forty-seven of section two hundred ten-B and subsection (u) 42 of section six hundred six of this chapter in any calendar year shall be 43 [four] eight million dollars. Such aggregate amount of credits shall be 44 allocated by the department of economic development among taxpayers in 45 order of priority based upon the date of filing an application for allo- 46 cation of musical and theatrical production credit with such department. 47 If the total amount of allocated credits applied for in any particular 48 year exceeds the aggregate amount of tax credits allowed for such year 49 under this section, such excess shall be treated as having been applied 50 for on the first day of the subsequent year. 51 § 3. This act shall take effect immediately, provided, however, that 52 the amendments to section 24-a of the tax law made by section two of 53 this act shall not affect the expiration and repeal of such section and 54 shall be deemed to expire and repeal therewith.S. 2509--B 93 1 PART II 2 Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi- 3 vision 29 of section 210-B of the tax law, as amended by section 1 of 4 part B of chapter 59 of the laws of 2020, are amended to read as 5 follows: 6 (a) Allowance of credit. For taxable years beginning on or after Janu- 7 ary first, two thousand fifteen and before January first, two thousand 8 [twenty-two] twenty-three, a taxpayer shall be allowed a credit, to be 9 computed as provided in this subdivision, against the tax imposed by 10 this article, for hiring and employing, for not less than one year and 11 for not less than thirty-five hours each week, a qualified veteran with- 12 in the state. The taxpayer may claim the credit in the year in which 13 the qualified veteran completes one year of employment by the taxpayer. 14 If the taxpayer claims the credit allowed under this subdivision, the 15 taxpayer may not use the hiring of a qualified veteran that is the basis 16 for this credit in the basis of any other credit allowed under this 17 article. 18 (2) who commences employment by the qualified taxpayer on or after 19 January first, two thousand fourteen, and before January first, two 20 thousand [twenty-one] twenty-two; and 21 § 2. Subdivision 29 of section 210-B of the tax law is amended by 22 adding a new paragraph (f) to read as follows: 23 (f) Reporting Requirement. The department shall issue an annual report 24 on the utilization of this credit. Such report shall include the number 25 of taxpayers that claimed the credit, the number of veterans and disa- 26 bled veterans for whom a credit was claimed, and information on the wage 27 rate of such veterans and disabled veterans. The report shall also 28 include information on steps taken by the department to inform employers 29 of the existence of this credit and of any other actions taken to 30 increase awareness of the availability of this credit. The department 31 shall issue the first report on October first, two thousand twenty-one 32 using the most recent applicable tax data. The department shall issue 33 reports for subsequent tax years annually on October first. The report 34 shall be posted publicly on the department's website and copies shall be 35 delivered to the governor, the speaker of the assembly, and the tempo- 36 rary president of the senate. 37 § 3. Paragraph 1 and subparagraph (B) of paragraph 2 of subsection 38 (a-2) of section 606 of the tax law, as amended by section 2 of part B 39 of chapter 59 of the laws of 2020, 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 [twenty-two] twenty-three, a taxpayer shall be allowed a credit, to be 43 computed as provided in this subsection, against the tax imposed by this 44 article, for hiring and employing, for not less than one year and for 45 not less than thirty-five hours each week, a qualified veteran within 46 the state. The taxpayer may claim the credit in the year in which the 47 qualified veteran completes one year of employment by the taxpayer. If 48 the taxpayer claims the credit allowed under this subsection, 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 (B) who commences employment by the qualified taxpayer on or after 53 January first, two thousand fourteen, and before January first, two 54 thousand [twenty-one] twenty-two; andS. 2509--B 94 1 § 4. Paragraph 4 of subsection (a-2) of section 606 of the tax law, as 2 added by section 3 of part AA of chapter 59 of the laws of 2013, is 3 amended and a new paragraph 6 is added to read as follows: 4 (4) Amount of credit. The amount of the credit shall be ten percent of 5 the total amount of wages paid to [he] the qualified veteran during the 6 veteran's first full year of employment. Provided, however, that, if the 7 qualified veteran is a disabled veteran, as defined in paragraph (b) of 8 subdivision one of section eighty-five of the civil service law, the 9 amount of the credit shall be fifteen percent of the total amount of 10 wages paid to the qualified veteran during the veteran's first full year 11 of employment. The credit allowed pursuant to this subsection shall not 12 exceed in any taxable year, five thousand dollars for any qualified 13 veteran and fifteen thousand dollars for any qualified veteran who is a 14 disabled veteran. 15 (6) Reporting Requirement. The department shall issue an annual report 16 on the utilization of this credit. Such report shall include the number 17 of taxpayers that claimed the credit, the number of veterans and disa- 18 bled veterans for whom a credit was claimed, and information on the wage 19 rate of such veterans and disabled veterans. The report shall also 20 include information on steps taken by the department to inform employers 21 of the existence of this credit and of any other actions taken to 22 increase awareness of the availability of this credit. The department 23 shall issue the first report on October first, two thousand twenty-one 24 using the most recent applicable tax data. The department shall issue 25 reports for subsequent tax years annually on October first. The report 26 shall be posted publicly on the department's website and copies shall be 27 delivered to the governor, the speaker of the assembly, and the tempo- 28 rary president of the senate. 29 § 5. Paragraph 1 and subparagraph (B) of paragraph 2 of subdivision 30 (g-1) of section 1511 of the tax law, as amended by section 3 of part B 31 of chapter 59 of the laws of 2020, are amended to read as follows: 32 (1) Allowance of credit. For taxable years beginning on or after Janu- 33 ary first, two thousand fifteen and before January first, two thousand 34 [twenty-two] twenty-three, a taxpayer shall be allowed a credit, to be 35 computed as provided in this subdivision, against the tax imposed by 36 this article, for hiring and employing, for not less than one year and 37 for not less than thirty-five hours each week, a qualified veteran with- 38 in the state. The taxpayer may claim the credit in the year in which 39 the qualified veteran completes one year of employment by the taxpayer. 40 If the taxpayer claims the credit allowed under this subdivision, the 41 taxpayer may not use the hiring of a qualified veteran that is the basis 42 for this credit in the basis of any other credit allowed under this 43 article. 44 (B) who commences employment by the qualified taxpayer on or after 45 January first, two thousand fourteen, and before January first, two 46 thousand [twenty-one] twenty-two; and 47 § 6. Subdivision (g-1) of section 1511 of the tax law is amended by 48 adding a new paragraph 6 to read as follows: 49 (6) Reporting Requirement. The department shall issue an annual report 50 on the utilization of this credit. Such report shall include the number 51 of taxpayers that claimed the credit, the number of veterans and disa- 52 bled veterans for whom a credit was claimed, and information on the wage 53 rate of such veterans and disabled veterans. The report shall also 54 include information on steps taken by the department to inform employers 55 of the existence of this credit and of any other actions taken to 56 increase awareness of the availability of this credit. The departmentS. 2509--B 95 1 shall issue the first report on October first, two thousand twenty-one 2 using the most recent applicable tax data. The department shall issue 3 reports for subsequent tax years annually on October first. The report 4 shall be posted publicly on the department's website and copies shall be 5 delivered to the governor, the speaker of the assembly, and the tempo- 6 rary president of the senate. 7 § 7. This act shall take effect immediately. 8 PART JJ 9 Section 1. Section 12 of part V of chapter 61 of the laws of 2011, 10 amending the economic development law, the tax law and the real property 11 tax law, relating to establishing the economic transformation and facil- 12 ity redevelopment program and providing tax benefits under that program, 13 is amended to read as follows: 14 § 12. This act shall take effect immediately and shall expire and be 15 deemed repealed December 31, [2021] 2026. 16 § 2. Paragraph (a) of subdivision 11 of section 400 of the economic 17 development law, as amended by section 1 of part GG of chapter 58 of the 18 laws of 2020, is amended to read as follows: 19 (a) a correctional facility, as defined in paragraph (a) of subdivi- 20 sion four of section two of the correction law, that has been selected 21 by the governor of the state of New York for closure after April first, 22 two thousand eleven but no later than March thirty-first, two thousand 23 [twenty-one] twenty-six; or 24 § 3. This act shall take effect immediately; provided, however, that 25 the amendments to section 400 of the economic development law made by 26 section two of this act shall not affect the repeal of such section and 27 shall be deemed repealed therewith. 28 PART KK 29 Section 1. The opening paragraph of section 1310 of the general busi- 30 ness law, as added by section 2 of part X of chapter 55 of the laws of 31 2018, is amended to read as follows: 32 Except as otherwise provided in this article, the program shall be 33 implemented, and enrollment of employees shall begin[, within twenty-34four months after the effective date of this article] no later than 35 December thirty-first, two thousand twenty-one. The provisions of this 36 section shall be in force after the board opens the program for enroll- 37 ment. 38 § 2. Section 1315 of the general business law, as added by section 2 39 of part X of chapter 55 of the laws of 2018, is amended to read as 40 follows: 41 § 1315. Delayed implementation. The board may delay the implementation 42 of the program an additional twelve months beyond the [twenty-four43months] date established in section thirteen hundred ten of this article 44 if the board determines that further delay is necessary to address 45 legal, financial or other programmatic concerns impacting the viability 46 of the program. The board shall provide reasonable notice of such delay 47 to the governor, the commissioner, the speaker of the assembly, the 48 temporary president of the senate, the chair of the assembly ways and 49 means committee, the chair of the senate finance committee, the chair of 50 the assembly labor committee, and the chair of the senate labor commit- 51 tee. 52 § 3. This act shall take effect immediately.S. 2509--B 96 1 PART LL 2 Section 1. For the period from and after March 1, 2020 until such time 3 as the licensee and the video lottery gaming facility that are each 4 subject to subdivision 2 of section 1355 of the racing, pari-mutuel 5 wagering and breeding law, as added by the Upstate New York Gaming 6 Economic Development Act of 2013, as amended, have each been continuous- 7 ly operating without any restrictions related to Covid-19 for at least 8 three full and consecutive calendar months, the payments to the relevant 9 horsemen and breeders required by subdivision 2 of section 1355 of the 10 racing, pari-mutuel wagering and breeding law, as added by the Upstate 11 New York Gaming Economic Development Act of 2013, as amended, shall not 12 accrue and shall be permanently waived and forgiven. The accrual and 13 obligation to make payments under such subdivision 2 of such section 14 1355 shall recommence at such time as the licensee and the video lottery 15 gaming facility that are each subject to such subdivision 2 of such 16 section 1355 have each been continuously operating without any 17 restrictions related to Covid-19 for at least three full and consecutive 18 calendar months. Payments to the relevant horsemen and breeders for the 19 period beginning January 1, 2020 through February 28, 2020 shall be 20 payable in six equal monthly installments of $106,407 per month over a 21 six-month period beginning with the first month after the licensee has 22 been continuously operating without any restrictions related to Covid-19 23 for at least three full and consecutive calendar months. 24 § 2. This act shall take effect immediately. 25 PART MM 26 Section 1. Subdivision 14 of section 1300 of the racing, pari-mutuel 27 wagering and breeding law, as added by chapter 174 of the laws of 2013 28 and as renumbered by chapter 175 of the laws of 2013, is amended and a 29 new subdivision 15 is added to read as follows: 30 14. As thoroughly and pervasively regulated by the state, four upstate 31 casinos will work to the betterment of all New York[.]; 32 15. Pursuant to article one, section nine of the New York State 33 Constitution, the legislature is permitted to authorize up to seven 34 commercial casinos within the state. As of the year two thousand twen- 35 ty-one, four have been authorized in upstate New York, leaving the down- 36 state market unaddressed. Neighboring states have authorized forms of 37 gaming that are siphoning New York state dollars and travel industry- 38 derived revenue to other out-of-state markets. Simultaneously, as a 39 result of the COVID-19 emergency, state and local revenues have been 40 devastated. This is particularly alarming given the potential effect on 41 the state's education funding. The legislature recognizes that downstate 42 gaming resorts have the potential to significantly boost revenues for 43 education support, create thousands of quality jobs, and support the 44 local economy downstate. As such, the legislature hereby authorizes an 45 additional three casino licenses downstate to increase support for 46 education across the state. 47 § 2. Subparagraph 2 of paragraph (a) of subdivision 2 of section 1310 48 of the racing, pari-mutuel wagering and breeding law, as added by chap- 49 ter 174 of the laws of 2013, is amended to read as follows: 50 (2) Region two shall consist of Bronx, Kings, New York, Queens and 51 Richmond counties[. No gaming facility shall be authorized in region52two]; andS. 2509--B 97 1 § 3. Subdivision 1 of section 1311 of the racing, pari-mutuel wagering 2 and breeding law, as amended by chapter 175 of the laws of 2013, is 3 amended to read as follows: 4 1. (a) The commission is authorized to award up to four gaming facili- 5 ty licenses, in regions one, two and five of zone two, and three addi- 6 tional gaming facility licenses in zone one. The duration of such 7 initial license shall be ten years. The term of renewal shall be deter- 8 mined by the commission. The commission may award a second license to a 9 qualified applicant in no more than a single region. [The commission is10not empowered to award any license in zone one. No gaming facilities are11authorized under this article for the city of New York or any other12portion of zone one.] 13 (b) As a condition of licensure, licensees are required to commence 14 gaming operations no more than twenty-four months following license 15 award. No additional licenses may be awarded during the twenty-four 16 month period, nor for an additional sixty months following the end of 17 the twenty-four month period. Should the state legislatively authorize 18 additional gaming facility licenses within these periods, licensees 19 shall have the right to recover the license fee paid pursuant to section 20 one thousand three hundred six of this article. 21 (c) This right shall be incorporated into the license itself, vest 22 upon the opening of a gaming facility in zone one or in the same region 23 as the licensee and entitle the holder of such license to bring an 24 action in the court of claims to recover the license fee paid pursuant 25 to section one thousand three hundred fifteen of this article in the 26 event that any gaming facility license in excess of the number author- 27 ized by this section as of the effective date of this section is awarded 28 within seven years from the date that the initial gaming facility 29 license is awarded. This right to recover any such fee shall be propor- 30 tionate to the length of the respective period that is still remaining 31 upon the vesting of such right. 32 (d) Additionally, the right to bring an action in the court of claims 33 to recover the fee paid to the state on the twenty-fourth day of Septem- 34 ber, two thousand ten, by the operator of a video lottery gaming facili- 35 ty in a city of more than one million shall vest with such operator upon 36 the opening of any gaming facility licensed by the commission in zone 37 one within seven years from the date that the initial gaming facility 38 license is awarded; provided however that the amount recoverable shall 39 be limited to the pro rata amount of the time remaining until the end of 40 the seven year exclusivity period, proportionate to the period of time 41 between the date of opening of the video lottery facility until the 42 conclusion of the seven year period. 43 (e) Notwithstanding any law, rule or regulation to the contrary, for 44 any video lottery gaming facility authorized by paragraph four of subdi- 45 vision a of section sixteen hundred seventeen-a of the tax law that 46 converts to a gaming facility, nothing in this section shall be 47 construed to affect the hosting agreement between the corporation estab- 48 lished pursuant to section five hundred two of this chapter in the 49 Nassau region and the entity converted to a gaming facility; and pursu- 50 ant to the agreement, such video lottery devices shall be deemed to be 51 hosted for the corporation by such entity. 52 § 4. Section 1318 of the racing, pari-mutuel wagering and breeding law 53 is amended by adding a new subdivision 2 to read as follows: 54 2. The commission may revoke a license of any entity that held a 55 license to operate video lottery terminals pursuant to section sixteen 56 hundred seventeen-a of the tax law, which was then converted to a gamingS. 2509--B 98 1 facility license if the commission determines the facility is disquali- 2 fied on the basis of any of the criteria enumerated in subdivision one 3 of this section, subject to notice and an opportunity for hearing. 4 § 5. Section 1351 of the racing, pari-mutuel wagering and breeding law 5 is amended by adding two new subdivisions 3 and 4 to read as follows: 6 3. For a gaming facility in zone one, there is hereby imposed a tax 7 on gross gaming revenues for gaming facilities. The amount of such tax 8 imposed in zone one shall be as follows; provided, however, should a 9 licensee have agreed within its application to supplement the tax with a 10 binding supplemental fee payment exceeding the aforementioned tax rate, 11 such tax and supplemental fee shall apply for a gaming facility: the 12 amount of such tax imposed in zone one shall be forty-five percent of 13 gross gaming revenue from slot machines and ten percent of gross gaming 14 revenue from all other sources. 15 4. Permissible deductions for gaming facilities in zone one. (a) A 16 gaming facility located in zone one may deduct from gross gaming revenue 17 the amount of approved promotional gaming credits issued to and wagered 18 by patrons of such gaming facility. The amount of approved promotional 19 credits shall be calculated as follows: 20 (1) for the period commencing on April first, two thousand twenty-two 21 and ending on March thirty-first, two thousand twenty-five, an aggregate 22 maximum amount equal to nineteen percent of the base taxable gross 23 gaming revenue amount during the specified period; 24 (2) for the period commencing on April first, two thousand twenty-five 25 and ending on March thirty-first, two thousand twenty-seven, a maximum 26 amount equal to nineteen percent of the base taxable gross gaming reven- 27 ue amount for each fiscal year during the specified period; and 28 (3) for the period commencing on April first, two thousand twenty-sev- 29 en and thereafter, a maximum amount equal to fifteen percent of the base 30 taxable gross gaming revenue amount for each fiscal year during the 31 specified period. 32 (b) For purposes of paragraph (a) of this subdivision, "base taxable 33 gross gaming revenue amount" means that portion of gross gaming revenue 34 not attributable to deductible promotional credit. 35 (c) Any tax due on promotional credits deducted during the fiscal year 36 in excess of the allowable deduction shall be paid within thirty days 37 from the end of the fiscal year. 38 (d) Only promotional credits that are issued pursuant to a written 39 plan approved by the commission as designed to increase revenue at the 40 facility may be eligible for such deduction. The commission, in conjunc- 41 tion with the director of the budget, may suspend approval of any plan 42 whenever they jointly determine that the use of the promotional credits 43 under such plan is not effective in increasing the amount of revenue 44 earned. 45 § 6. The opening paragraph of subdivision 1 of section 1312 of the 46 racing, pari-mutuel wagering and breeding law, as added by chapter 174 47 of the laws of 2013, is amended to read as follows: 48 The board shall issue within ninety days of a majority of members 49 being appointed a request for applications for a gaming facility license 50 in regions one, two and five in zone two[; provided, however, that the51board shall not issue any requests for applications for any region in52zone one; and further provided that the board shall not issue any53requests for applications with respect to any gaming facility subse-54quently legislatively authorized until seven years following the55commencement of gaming activities in zone two] and, on or before July 56 first, two thousand twenty-one, the board shall issue a request forS. 2509--B 99 1 applications for three additional gaming facility licenses in zone one; 2 and provided further that the board shall make a determination regarding 3 an application no later than one hundred fifty days from receiving the 4 application. All requests for applications shall include: 5 § 7. The opening paragraph of section 1348 of the racing, pari-mutuel 6 wagering and breeding law, as added by chapter 174 of the laws of 2013, 7 is amended to read as follows: 8 In addition to any other tax or fee imposed by this article, there 9 shall be imposed an annual license fee of five hundred dollars for each 10 slot machine and table approved by the commission for use by a gaming 11 licensee at a gaming facility; and beginning in the year two thousand 12 twenty-two, there shall be imposed an annual license fee of seven 13 hundred fifty dollars for each slot machine and table game approved by 14 the commission for use by a gaming licensee at a gaming facility located 15 in zone one, originally awarded a license after July first, two thousand 16 twenty-one, and provided, however, that not sooner than five years after 17 award of an original gaming license, the commission may annually adjust 18 the fee for inflation. The fee shall be imposed as of July first of each 19 year for all approved slot machines and tables on that date and shall be 20 assessed on a pro rata basis for any slot machine or table approved for 21 use thereafter. 22 § 8. Subdivisions 3 and 4 of section 1315 of the racing, pari-mutuel 23 wagering and breeding law, as added by chapter 174 of the laws of 2013, 24 are amended to read as follows: 25 3. A licensee who fails to begin gaming operations within twenty-four 26 months following license award shall be subject to suspension or revoca- 27 tion of the gaming license by the commission and may, after being found 28 by the commission after notice and opportunity for a hearing to have 29 acted in bad faith in its application, be assessed a fine of up to 30 [fifty] one hundred million dollars. 31 4. The board shall determine a licensing fee of no less than five 32 hundred million dollars to be paid by a licensee within thirty days 33 after the award of the license which shall be deposited into the commer- 34 cial gaming revenue fund. The license shall set forth the conditions to 35 be satisfied by the licensee before the gaming facility shall be opened 36 to the public. The commission shall set any renewal fee for such license 37 based on the cost of fees associated with the evaluation of a licensee 38 under this article which shall be deposited into the commercial gaming 39 fund. Such renewal fee shall be exclusive of any subsequent licensing 40 fees under this section. 41 § 9. The opening paragraph and subdivisions 1, 2 and 4 of section 1306 42 of the racing, pari-mutuel wagering and breeding law, the opening para- 43 graph as amended by chapter 243 of the laws of 2020 and subdivisions 1, 44 2 and 4 as added by chapter 174 of the laws of 2013, are amended to read 45 as follows: 46 The New York state gaming facility location board shall select, 47 following a competitive process and subject to the restrictions of this 48 article, no more than [four] seven entities to apply to the commission 49 for gaming facility licenses. In exercising its authority, the board 50 shall have all powers necessary or convenient to fully carry out and 51 effectuate its purposes including, but not limited to, the following 52 powers. The board shall: 53 1. issue a request for applications for zone one and zone two gaming 54 facility licenses pursuant to section one thousand three hundred twelve 55 of this article;S. 2509--B 100 1 2. assist the commission in prescribing the form of the application 2 for zone one and zone two gaming facility licenses including information 3 to be furnished by an applicant concerning an applicant's antecedents, 4 habits, character, associates, criminal record, business activities and 5 financial affairs, past or present pursuant to section one thousand 6 three hundred thirteen of this article; 7 4. determine a gaming facility license fee of no less than five 8 hundred million dollars to be paid by an applicant; 9 § 10. Subdivision 6 of section 109-a of the racing, pari-mutuel wager- 10 ing and breeding law, as added by chapter 174 of the laws of 2013, is 11 amended and a new subdivision 7 is added to read as follows: 12 6. Utilizing the powers and duties prescribed for it by article thir- 13 teen of this chapter, the board shall select, through a competitive 14 process consistent with provisions of article thirteen of this chapter, 15 not more than [four] seven gaming facility license applicants. Such 16 selectees shall be authorized to receive a gaming facility license, if 17 found suitable by the commission. The board may select another applicant 18 for authorization to be licensed as a gaming facility if a previous 19 selectee fails to meet licensing thresholds, is revoked or surrenders a 20 license opportunity. 21 7. The board shall convene on or before July first, two thousand twen- 22 ty-one to issue requests for applications for three additional gaming 23 facility licenses in zone one, as specified by section thirteen hundred 24 ten of this chapter; and provided further that the board shall make a 25 determination regarding an application no later than one hundred fifty 26 days from receiving the application. 27 § 11. Section 1320 of the racing, pari-mutuel wagering and breeding 28 law, as added by chapter 174 of the laws of 2013, is amended to read as 29 follows: 30 § 1320. Siting evaluation. In determining whether an applicant shall 31 be eligible for a gaming facility license, the board shall evaluate and 32 issue a finding of how each applicant proposes to advance the following 33 objectives. 34 1. The decision by the board to select a gaming facility license 35 applicant shall be weighted by ten percent based upon a speed to market 36 factor in which the commission shall award greater consideration to 37 applicants which can demonstrate an ability to commence gaming oper- 38 ations more quickly relative to other applicants, in the interest of 39 making revenue available to the state in an expeditious manner. 40 2. The decision by the board to select a gaming facility license 41 applicant shall be weighted by [seventy] sixty percent based on economic 42 activity and business development factors including: 43 (a) realizing maximum capital investment exclusive of land acquisition 44 and infrastructure improvements; 45 (b) maximizing revenues received by the state and localities; 46 (c) providing the highest number of quality jobs in the gaming facili- 47 ty; 48 (d) building a gaming facility of the highest caliber with a variety 49 of quality amenities to be included as part of the gaming facility; 50 (e) offering the highest and best value to patrons to create a secure 51 and robust gaming market in the region and the state; 52 (f) providing a market analysis detailing the benefits of the site 53 location of the gaming facility and the estimated recapture rate of 54 gaming-related spending by residents travelling to an out-of-state 55 gaming facility;S. 2509--B 101 1 (g) offering the fastest time to completion of the full gaming facili- 2 ty; 3 (h) demonstrating the ability to fully finance the gaming facility; 4 and 5 (i) demonstrating experience in the development and operation of a 6 quality gaming facility. 7 [2.] 3. The decision by the board to select a gaming facility license 8 applicant shall be weighted by twenty percent based on local impact and 9 siting factors including: 10 (a) mitigating potential impacts on host and nearby municipalities 11 which might result from the development or operation of the gaming 12 facility; 13 (b) gaining public support in the host and nearby municipalities which 14 [may] shall be demonstrated through the enactment or passage of a local 15 [laws or public comment received by the board or gaming applicant] law 16 or resolution; 17 (c) operating in partnership with and promoting local hotels, restau- 18 rants and retail facilities so that patrons experience the full diversi- 19 fied regional tourism industry; and 20 (d) establishing a fair and reasonable partnership with live enter- 21 tainment venues that may be impacted by a gaming facility under which 22 the gaming facility actively supports the mission and the operation of 23 the impacted entertainment venues. 24 [3.] 4. The decision by the board to select a gaming facility license 25 applicant shall be weighted by ten percent based on workforce enhance- 26 ment factors including: 27 (a) implementing a workforce development plan that utilizes the exist- 28 ing labor force, including the estimated number of construction jobs a 29 proposed gaming facility will generate, the development of workforce 30 training programs that serve the unemployed and methods for accessing 31 employment at the gaming facility; 32 (b) taking additional measures to address problem gambling including, 33 but not limited to, training of gaming employees to identify patrons 34 exhibiting problems with gambling; 35 (c) utilizing sustainable development principles including, but not 36 limited to: 37 (1) having new and renovation construction certified under the appro- 38 priate certification category in the Leadership in Energy and Environ- 39 mental Design Green Building Rating System created by the United States 40 Green Building Council; 41 (2) efforts to mitigate vehicle trips; 42 (3) efforts to conserve water and manage storm water; 43 (4) demonstrating that electrical and HVAC equipment and appliances 44 will be Energy Star labeled where available; 45 (5) procuring or generating on-site ten percent of its annual elec- 46 tricity consumption from renewable sources; and 47 (6) developing an ongoing plan to submeter and monitor all major 48 sources of energy consumption and undertake regular efforts to maintain 49 and improve energy efficiency of buildings in their systems; 50 (d) establishing, funding and maintaining human resource hiring and 51 training practices that promote the development of a skilled and diverse 52 workforce and access to promotion opportunities through a workforce 53 training program that: 54 (1) establishes transparent career paths with measurable criteria 55 within the gaming facility that lead to increased responsibility andS. 2509--B 102 1 higher pay grades that are designed to allow employees to pursue career 2 advancement and promotion; 3 (2) provides employee access to additional resources, such as tuition 4 reimbursement or stipend policies, to enable employees to acquire the 5 education or job training needed to advance career paths based on 6 increased responsibility and pay grades; and 7 (3) establishes an on-site child day care program; 8 (e) purchasing, whenever possible, domestically manufactured slot 9 machines for installation in the gaming facility; 10 (f) implementing a workforce development plan that: 11 (1) incorporates an affirmative action program of equal opportunity by 12 which the applicant guarantees to provide equal employment opportunities 13 to all employees qualified for licensure in all employment categories, 14 including persons with disabilities; 15 (2) utilizes the existing labor force in the state; 16 (3) estimates the number of construction jobs a gaming facility will 17 generate and provides for equal employment opportunities and which 18 includes specific goals for the utilization of minorities, women and 19 veterans on those construction jobs; 20 (4) identifies workforce training programs offered by the gaming 21 facility; and 22 (5) identifies the methods for accessing employment at the gaming 23 facility; and 24 (g) demonstrating that the applicant has an agreement with organized 25 labor, including hospitality services, and has the support of organized 26 labor for its application, which specifies: 27 (1) the number of employees to be employed at the gaming facility, 28 including detailed information on the pay rate and benefits for employ- 29 ees and contractors in the gaming facility and all infrastructure 30 improvements related to the project; and 31 (2) detailed plans for assuring labor harmony during all phases of the 32 construction, reconstruction, renovation, development and operation of 33 the gaming facility. 34 § 12. Subdivision 2 of section 1314 of the racing, pari-mutuel wager- 35 ing and breeding law, as added by chapter 174 of the laws of 2013, is 36 amended to read as follows: 37 2. As a condition of filing, each potential license applicant [must] 38 shall demonstrate to the [board's satisfaction] board that local support 39 has been demonstrated through the enactment or passage of a local law or 40 resolution in support by the municipality where such facility is to be 41 physically sited. 42 § 13. This act shall take effect immediately. 43 PART NN 44 Section 1. (a) Notwithstanding any provision of law to the contrary, 45 for the duration of the state disaster emergency pursuant to executive 46 order 202 of 2020, a taxpayer that has required some or all of its 47 employees to work remotely as a result of the outbreak of novel corona- 48 virus, COVID-19, may designate such remote work as having been performed 49 at the location such work was performed prior to the declaration of such 50 state disaster emergency for tax benefits that are based on maintaining 51 a presence within the state or within specific areas of the state, 52 including but not limited to those provided pursuant to section 39 of 53 the tax law.S. 2509--B 103 1 (b) Eligible businesses shall be required to certify, that for the 2 entire period the benefit is claimed, the business continued to operate 3 within the state. 4 (c) Eligible businesses shall be required to certify, that for the 5 entire period the benefit is claimed, that any employees eligible for 6 tax benefits continued working within the state. 7 (d) Under no circumstances, shall a business be eligible for tax bene- 8 fits based on maintaining a presence within the state or within specific 9 areas of the state, including but not limited to those provided pursuant 10 to section 39 of the tax law, if the business moved operations outside 11 of the state. 12 § 2. The commissioner of taxation and finance shall, in consultation 13 with the commissioner of economic development, promulgate any rule or 14 regulation necessary to effectuate this act. 15 § 3. This act shall take effect immediately and shall be deemed to 16 have been in full force and effect on or after March 7, 2020 and shall 17 expire and be deemed repealed on December 31, 2022. 18 PART OO 19 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of 20 section 210 of the tax law, as amended by section 10 of part T of chap- 21 ter 59 of the laws of 2015, is amended to read as follows: 22 For taxable years beginning before January first, two thousand 23 sixteen, the amount prescribed by this paragraph shall be computed at 24 the rate of seven and one-tenth percent of the taxpayer's business 25 income base. For taxable years beginning on or after January first, two 26 thousand sixteen, the amount prescribed by this paragraph shall be six 27 and one-half percent of the taxpayer's business income base. The taxpay- 28 er's business income base shall mean the portion of the taxpayer's busi- 29 ness income apportioned within the state as hereinafter provided. For 30 taxable years beginning on or after January first, two thousand twenty- 31 one the amount prescribed by this paragraph shall be computed at the 32 rate of nine and one-half percent for taxpayers with a business income 33 base above five million dollars. However, in the case of a small busi- 34 ness taxpayer, as defined in paragraph (f) of this subdivision, the 35 amount prescribed by this paragraph shall be computed pursuant to 36 subparagraph (iv) of this paragraph and in the case of a manufacturer, 37 as defined in subparagraph (vi) of this paragraph, the amount prescribed 38 by this paragraph shall be computed pursuant to subparagraph (vi) of 39 this paragraph, and, in the case of a qualified emerging technology 40 company, as defined in subparagraph (vii) of this paragraph, the amount 41 prescribed by this paragraph shall be computed pursuant to subparagraph 42 (vii) of this paragraph. 43 § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 44 of the tax law, as amended by section 18 of part T of chapter 59 of the 45 laws of 2015, is amended to read as follows: 46 (1) (i) The amount prescribed by this paragraph shall be computed 47 at .15 percent for each dollar of the taxpayer's total business capital, 48 or the portion thereof apportioned within the state as hereinafter 49 provided for taxable years beginning before January first, two thousand 50 sixteen. However, in the case of a cooperative housing corporation as 51 defined in the internal revenue code, the applicable rate shall be .04 52 percent until taxable years beginning on or after January first, two 53 thousand twenty. The rate of tax for subsequent tax years shall be as 54 follows: .125 percent for taxable years beginning on or after JanuaryS. 2509--B 104 1 first, two thousand sixteen and before January first, two thousand 2 seventeen; .100 percent for taxable years beginning on or after January 3 first, two thousand seventeen and before January first, two thousand 4 eighteen; .075 percent for taxable years beginning on or after January 5 first, two thousand eighteen and before January first, two thousand 6 nineteen; .050 percent for taxable years beginning on or after January 7 first, two thousand nineteen and before January first, two thousand 8 twenty; .025 percent for taxable years beginning on or after January 9 first, two thousand twenty and before January first, two thousand twen- 10 ty-one; and [zero] .125 percent for years beginning on or after January 11 first, two thousand twenty-one. The rate of tax for a qualified New York 12 manufacturer shall be .132 percent for taxable years beginning on or 13 after January first, two thousand fifteen and before January first, two 14 thousand sixteen, .106 percent for taxable years beginning on or after 15 January first, two thousand sixteen and before January first, two thou- 16 sand seventeen, .085 percent for taxable years beginning on or after 17 January first, two thousand seventeen and before January first, two 18 thousand eighteen; .056 percent for taxable years beginning on or after 19 January first, two thousand eighteen and before January first, two thou- 20 sand nineteen; .038 percent for taxable years beginning on or after 21 January first, two thousand nineteen and before January first, two thou- 22 sand twenty; .019 percent for taxable years beginning on or after Janu- 23 ary first, two thousand twenty and before January first, two thousand 24 twenty-one; and zero percent for years beginning on or after January 25 first, two thousand twenty-one. (ii) In no event shall the amount 26 prescribed by this paragraph exceed three hundred fifty thousand dollars 27 for qualified New York manufacturers and for all other taxpayers five 28 million dollars. 29 § 3. This act shall take effect immediately. 30 PART PP 31 Section 1. The tax law is amended by adding a new section 601-b to 32 read as follows: 33 § 601-b. Additional tax on income from capital gain. (a) There is 34 hereby imposed, in addition to the tax imposed under section six hundred 35 one of this article, an additional tax on a New York resident's income 36 from capital gain. 37 (b) Income from capital gain shall mean the amount of an individual's 38 New York taxable income attributable to net short-term capital gain and 39 net long-term capital gain, as defined under internal revenue code 40 section 1222(5) and section 1222(7). 41 (c) The additional tax imposed under this section shall be equal to 42 one percent of an individual's income from capital gain. 43 (d) This section shall not apply to the following persons: 44 (1) In the case of resident married individuals filing joint returns, 45 if New York taxable income is not more than two million one hundred 46 fifty-five thousand three hundred fifty dollars. 47 (2) In the case of a resident head of household, an individual whose 48 New York taxable income is not more than one million six hundred sixteen 49 thousand four hundred fifty dollars. 50 (3) In the case of resident unmarried individuals, resident married 51 individuals filing separate returns, and resident estates and trusts, if 52 New York taxable income is not more than one million seventy-seven thou- 53 sand five hundred fifty dollars.S. 2509--B 105 1 (e) This section shall be administered, and penalties imposed, in the 2 same manner as the tax imposed under section six hundred one of this 3 article. 4 (f) The department may adopt rules and regulations as necessary to 5 implement the provisions of this section. 6 § 2. This act shall take effect immediately and shall apply to taxable 7 years beginning on and after January 1, 2021. 8 PART QQ 9 Section 1. This act shall be known and may be cited as the "opportu- 10 nity zone tax break elimination act". 11 § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as 12 amended by section 5 of part T of chapter 59 of the laws of 2015, is 13 amended to read as follows: 14 (a) (i) The term "investment income" means income, including capital 15 gains in excess of capital losses, from investment capital, to the 16 extent included in computing entire net income, less, (A) in the 17 discretion of the commissioner, any interest deductions allowable in 18 computing entire net income which are directly or indirectly attribut- 19 able to investment capital or investment income, (B) any capital gains 20 deferred or excluded under 26 U.S.C. §1400-z-2, provided, however, that 21 in no case shall investment income exceed entire net income. (ii) If the 22 amount of interest deductions subtracted under subparagraph (i) of this 23 paragraph exceeds investment income, the excess of such amount over 24 investment income must be added back to entire net income. (iii) If the 25 taxpayer's investment income determined without regard to the interest 26 deductions subtracted under subparagraph (i) of this paragraph comprises 27 more than eight percent of the taxpayer's entire net income, investment 28 income determined without regard to such interest deductions cannot 29 exceed eight percent of the taxpayer's entire net income. 30 § 3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis- 31 trative code of the city of New York, as added by section 1 of part D of 32 chapter 60 of the laws of 2015, is amended to read as follows: 33 (a) (i) The term "investment income" means income, including capital 34 gains in excess of capital losses, from investment capital, to the 35 extent included in computing entire net income, less, (A) in the 36 discretion of the commissioner of finance, any interest deductions 37 allowable in computing entire net income which are directly or indirect- 38 ly attributable to investment capital or investment income, (B) any 39 capital gains deferred or excluded under 26 U.S.C §1400-z-2, provided, 40 however, that in no case shall investment income exceed entire net 41 income. 42 (ii) If the amount of interest deductions subtracted under subpara- 43 graph (i) of this paragraph exceeds investment income, the excess of 44 such amount over investment income must be added back to entire net 45 income. 46 (iii) If the taxpayer's investment income determined without regard to 47 the interest deductions subtracted under subparagraph (i) of this para- 48 graph comprises more than eight percent of the taxpayer's entire net 49 income, investment income determined without regard to such interest 50 deductions cannot exceed eight percent of the taxpayer's entire net 51 income. 52 § 4. This act shall take effect immediately and shall apply to taxable 53 years beginning on and after January 1, 2021.S. 2509--B 106 1 PART RR 2 Section 1. Section 952 of the tax law, as amended by section 2 of 3 part X of chapter 59 of the laws of 2014, subsection (b) as amended by 4 section 1 of part BB of chapter 59 of the laws of 2015, is amended to 5 read as follows: 6 § 952. Tax imposed. (a) A tax is hereby imposed on the transfer of the 7 New York estate by every deceased individual who at his or her death was 8 a resident of New York state. 9 (b) Computation of tax. The tax imposed by this section shall be 10 computed on the deceased resident's New York taxable estate as follows: 11 (1) In the case of decedents dying before April 1, 2021: 12 If the New York taxable estate is: The tax is: 13 Not over $500,000 3.06% of taxable estate 14 Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over 15 $500,000 16 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over 17 $1,000,000 18 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over 19 $1,500,000 20 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess 21 over $2,100,000 22 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over 23 $2,600,000 24 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over 25 $3,100,000 26 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess 27 over $3,600,000 28 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess 29 over $4,100,000 30 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess 31 over $5,100,000 32 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess 33 over $6,100,000 34 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess 35 over $7,100,000 36 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess 37 over $8,100,000 38 Over $9,100,000 but not over $930,800 plus 15.2% of excess over 39 $10,100,000 $9,100,000 40 Over $10,100,000 $1,082,800 plus 16.0% of excess 41 over $10,100,000 42 (2) In the case of decedents dying on or after April 1, 2021: 43 If the New York taxable estate is: The tax is: 44 Not over $500,000 5.06% of taxable estate 45 Over $500,000 but not over $25,300 plus 7.0% of excess over 46 $1,000,000 $500,000 47 Over $1,000,000 but not over $60,300 plus 7.5% of excess over 48 $1,500,000 $1,000,000 49 Over $1,500,000 but not over $97,800 plus 8.5% of excess over 50 $2,100,000 $1,500,000 51 Over $2,100,000 but not over $148,800 plus 10.0% of excess 52 $2,600,000 over $2,100,000 53 Over $2,600,000 but not over $198,800 plus 10.8% of excess 54 $3,100,000 over $2,600,000 55 Over $3,100,000 but not over $252,800 plus 11.6% of excessS. 2509--B 107 1 $3,600,000 over $3,100,000 2 Over $3,600,000 but not over $310,800 plus 12.4% of excess 3 $4,100,000 over $3,600,000 4 Over $4,100,000 but not over $372,800 plus 13.2% of excess 5 $5,100,000 over $4,100,000 6 Over $5,100,000 but not over $504,800 plus 14.0% of excess 7 $6,100,000 over $5,100,000 8 Over $6,100,000 but not over $644,800 plus 14.8% of excess 9 $7,100,000 over $6,100,000 10 Over $7,100,000 but not over $792,800 plus 15.6% of excess 11 $8,100,000 over $7,100,000 12 Over $8,100,000 but not over $948,800 plus 16.4% of excess 13 $9,100,000 over $8,100,000 14 Over $9,100,000 but not over $1,112,800 plus 17.2% of excess 15 $10,100,000 over $9,100,000 16 Over $10,100,000 $1,284,800 plus 18.0% of excess 17 over $10,100,000 18 (c) Applicable credit amount. (1) A credit of the applicable credit 19 amount shall be allowed against the tax imposed by this section as 20 provided in this subsection. In the case of a decedent whose New York 21 taxable estate is less than or equal to the basic exclusion amount, the 22 applicable credit amount shall be the amount of tax that would be due 23 under subsection (b) of this section on such decedent's New York taxable 24 estate. In the case of a decedent whose New York taxable estate exceeds 25 the basic exclusion amount by an amount that is less than or equal to 26 five percent of such amount, the applicable credit amount shall be the 27 amount of tax that would be due under subsection (b) of this section if 28 the amount on which the tax is to be computed were equal to the basic 29 exclusion amount multiplied by one minus a fraction, the numerator of 30 which is the decedent's New York taxable estate minus the basic exclu- 31 sion amount, and the denominator of which is five percent of the basic 32 exclusion amount. Provided, however, that the credit allowed by this 33 subsection shall not exceed the tax imposed by this section, and no 34 credit shall be allowed to the estate of any decedent whose New York 35 taxable estate exceeds one hundred five percent of the basic exclusion 36 amount. 37 (2) (A) For purposes of this section, the basic exclusion amount shall 38 be as follows: 39 In the case of decedents dying on or after: The basic exclusion amount 40 is: 41 April 1, 2014 and before April 1, 2015 $ 2,062,500 42 April 1, 2015 and before April 1, 2016 3,125,000 43 April 1, 2016 and before April 1, 2017 4,187,500 44 April 1, 2017 and before January 1, 2019 5,250,000 45 (B) In the case of any decedent dying in a calendar year beginning on 46 or after January first, two thousand nineteen, the basic exclusion 47 amount shall be equal to: 48 (i) five million dollars, multiplied by 49 (ii) one plus the cost-of-living adjustment, which shall be the 50 percentage by which the consumer price index for the preceding calendar 51 year exceeds the consumer price index for calendar year two thousand 52 ten. 53 (C) (i) For purposes of this paragraph, "consumer price index" means 54 the most recent consumer price index for all-urban consumers published 55 by the United States department of labor.S. 2509--B 108 1 (ii) For purposes of clause (ii) of subparagraph (B) of this para- 2 graph, the consumer price index for any calendar year shall be the aver- 3 age of the consumer price index as of the close of the twelve-month 4 period ending on August thirty-first of such calendar year. 5 (iii) If any amount adjusted under this paragraph is not a multiple of 6 ten thousand dollars, such amount shall be rounded to the nearest multi- 7 ple of ten thousand dollars. 8 § 2. This act shall take effect immediately. 9 PART SS 10 Section 1. The real property law is amended by adding a new section 11 291-k to read as follows: 12 § 291-k. Recording of mezzanine debt and preferred equity investments. 13 1. Within a city having a population of one million or more, a mortgage 14 instrument is recorded in the office of the recording officer of any 15 county, any mezzanine debt or preferred equity investment related to the 16 real property upon which the mortgage instrument is filed shall also be 17 recorded with such mortgage instrument. For the purposes of this 18 section, "mezzanine debt" and "preferred equity investments" shall mean 19 debt carried by a borrower that may be subordinate to the primary lien 20 and is senior to the common shares of an entity or the borrower's equity 21 and reported as assets for the purposes of financing such primary lien. 22 This shall include non-traditional financing techniques such as a direct 23 or indirect investment by a financing source in an entity that owns the 24 equality interests of the underlying mortgage where the financing source 25 has special rights or preferred rights such as: (i) the right to receive 26 a special or preferred rate of return on its capital investment; and 27 (ii) the right to an accelerated repayment of the investors capital 28 contribution. 29 2. This section shall apply to both mezzanine debt and preferred equi- 30 ty investments if both used by the borrower or mortgagor, or either 31 mezzanine debt or preferred debt, if either is used by the borrower or 32 mortgagor. 33 3. For purposes of this section, "mezzanine debt" and "preferred equi- 34 ty investments" shall not include debt on cooperative or common shares 35 of a residential dwelling where the unit owner of a cooperative apart- 36 ment is a shareholder of the ownership entity, has exclusive occupancy 37 of such dwelling unit, and has established and delimited rights under a 38 proprietary lease. 39 4. No remedy otherwise available to a secured party under article nine 40 of the uniform commercial code shall be available to enforce a security 41 agreement pertaining to mezzanine debt financing and/or preferred equity 42 investments in relation to real property upon which a mortgage instru- 43 ment is filed that is evidenced by a financing statement, unless that 44 financing statement is filed and the tax imposed pursuant to the author- 45 ity of section two hundred fifty-three-aa of the tax law, has been paid. 46 § 2. Section 9-601 of the uniform commercial code is amended by adding 47 a new subsection (h) to read as follows: 48 (h) Security interest perfected by financing statement. 1. Notwith- 49 standing any provision of law to the contrary, a security interest in 50 mezzanine debt and/or preferred equity investments related to the real 51 property upon which a mortgage instrument is filed within a city having 52 a population of one million or more, may only be perfected by the filing 53 of a financing statement under subpart 1 of part 5 of this article andS. 2509--B 109 1 only after the payment of any taxes due pursuant to section two hundred 2 ninety-one-k of the real property law. 3 2. For purposes of this section, the terms "mezzanine debt" and 4 "preferred equity investments" shall have the same meaning as provided 5 in section two hundred ninety-one-k of the real property law. 6 3. This section shall not be applicable to any debt on cooperative or 7 common shares of a residential dwelling where the unit owner of a coop- 8 erative apartment is a shareholder of the ownership entity, has exclu- 9 sive occupancy of such dwelling unit, and has established and delimited 10 rights under a proprietary lease. 11 § 3. Paragraph (a) of subdivision 2 of section 250 of the tax law, as 12 amended by section 1 of part Q of chapter 60 of the laws of 2004, is 13 amended to read as follows: 14 (a) (1) The term "mortgage" as used in this article includes every 15 mortgage or deed of trust which imposes a lien on or affects the title 16 to real property, notwithstanding that such property may form a part of 17 the security for the debt or debts secured thereby. An assignment of 18 rents to accrue from tenancies, subtenancies, leases or subleases of 19 real property, within any city in the state having a population of one 20 million or more, given as security for an indebtedness, shall be deemed 21 a mortgage of real property for purposes of this article. Executory 22 contracts for the sale of real property under which the vendee has or is 23 entitled to possession shall be deemed to be mortgages for the purposes 24 of this article and shall be taxable at the amount unpaid on such 25 contracts. A contract or agreement by which the indebtedness secured by 26 any mortgage is increased or added to, shall be deemed a mortgage of 27 real property for the purpose of this article, and shall be taxable as 28 such upon the amount of such increase or addition. 29 (2) Notwithstanding anything in this section or section two hundred 30 fifty-five of this article to the contrary, a contract or agreement 31 whereby the proceeds of any indebtedness secured by a mortgage of real 32 property in any city in the state having a population of one million or 33 more are used to reduce all or any part of a mortgagee's equity interest 34 in a wraparound or similar mortgage of such real property shall be 35 deemed a mortgage of real property for the purposes of this article and 36 shall be taxable as such to the extent of the amount of such proceeds so 37 used, without regard to whether the aggregate amount of indebtedness 38 secured by mortgages of such real property is increased or added to. 39 (3) Notwithstanding any provision to the contrary in this section or 40 section two hundred fifty-five of this article, "mezzanine debt" and 41 "preferred equity investments" as such terms are defined in subdivision 42 four of this section, shall be taxable and shall apply to taxes in 43 subdivisions one, one-a and two of section two hundred fifty-three of 44 this article, but shall not apply to any other taxes in this article on 45 or after the effective date of this subparagraph. 46 § 4. Section 250 of the tax law is amended by adding a new subdivi- 47 sion 4 to read as follows: 48 4. The terms "mezzanine debt" and "preferred equity investments" shall 49 have the same meaning as provided in section two hundred ninety-one-k of 50 the real property law. 51 § 5. The tax law is amended by adding a new section 253-aa to read as 52 follows: 53 § 253-aa. Recording tax on mezzanine debt. 1. Within a city having a 54 population of one million or more, a tax, measured by the amount of 55 principal debtor obligation which is under any contingency may be 56 secured at the date of the execution thereof, or at any time thereafter,S. 2509--B 110 1 by a security agreement pertaining to mezzanine debt financing and/or 2 preferred equity investments in relation to real property upon which a 3 mortgage instrument is filed, as evidenced by a financing statement, is 4 imposed on the filing of the financing statement. 5 2. The rate and incidence of the tax shall be in the same amount as 6 any tax that has been imposed by a county or city under the authority of 7 this article on the recording of a mortgage instrument financing state- 8 ment pertaining to mezzanine debt financing and/or preferred equity 9 investments in relation to real property upon which a mortgage instru- 10 ment is filed in the same manner as the local mortgage recording tax. 11 3. Except as otherwise provided in this section, all the provisions of 12 this article relating to or applicable to the administration, 13 collection, determination and distribution of the tax imposed by section 14 two hundred fifty-three of this article shall apply to the tax imposed 15 under the authority of this section with such modification as may be 16 necessary to adapt such language to the tax so authorized. Any reference 17 to a mortgage will be deemed to be a reference to a financing statement 18 that evidences a security agreement. Such provisions shall apply with 19 the same force and effect as if those provisions had been set forth in 20 this section except to the extent that any provision is either incon- 21 sistent with a provision of this section or not relevant to the tax 22 authorized by this section. 23 4. No remedy otherwise available to a secured party under article nine 24 of the uniform commercial code shall be available to enforce a security 25 agreement pertaining to mezzanine debt financing and/or preferred equity 26 investments in relation to real property upon which a mortgage instru- 27 ment is filed that is evidenced by a financing statement, unless that 28 financing statement is filed and the tax imposed pursuant to the author- 29 ity of this section has been paid. 30 5. For the purposes of this section: 31 (a) "mezzanine debt" and "preferred equity investments" shall have the 32 same meaning as provided in section two hundred ninety-one-k of the real 33 property law. 34 (b) "financing statement" means a record or records composed of an 35 initial financing statement and any filed record relating to the initial 36 financing statement. 37 (c) "security agreement" means an agreement that creates or provides 38 for a security interest. 39 6. The tax imposed on a security agreement pertaining to mezzanine 40 financing and/or preferred equity investments upon which a mortgage 41 instrument is filed pursuant to this section shall be in the same amount 42 as any that apply to the mortgage instrument that is imposed on the 43 mortgage instrument associated with the mezzanine financing and/or 44 preferred equity investments upon which a mortgage instrument is filed. 45 Any tax that has been imposed by a county or city under the authority of 46 this article shall be deemed to include the authority to impose and 47 collect the tax on the recording of a financing statement pertaining to 48 mezzanine debt financing and/or preferred equity investments in relation 49 to real property upon which a mortgage instrument is filed in the same 50 manner as the local mortgage recording tax. 51 § 6. Paragraph (a) of subdivision 1 of section 255 of the tax law is 52 amended by adding a new subparagraph (iii) to read as follows: 53 (iii) Notwithstanding the provisions of subparagraph (i) of this para- 54 graph, the taxes imposed by the authority under subparagraph three of 55 paragraph (a) of subdivision two of section two hundred fifty of thisS. 2509--B 111 1 article shall apply to mezzanine debt and/or preferred equity invest- 2 ments as such terms are defined by subdivision four of such section. 3 § 7. Section 257 of the tax law is amended to read as follows: 4 § 257. Payment of taxes. The taxes imposed by this article shall be 5 payable on the recording of each mortgage of real property subject to 6 taxes thereunder. Such taxes shall be paid to the recording officer of 7 any county in which the real property or any part thereof is situated; 8 provided, however, the taxes imposed pursuant to section two hundred 9 fifty-three-aa of this article, which shall be paid to the recording 10 officer, shall be remitted to the New York city housing authority as 11 constituted by section four hundred one of the public housing law. It 12 shall be the duty of such recording officer to indorse upon each mort- 13 gage and any mezzanine debt included with such mortgage a receipt for 14 the amount of the tax so paid. Any mortgage so indorsed may thereupon or 15 thereafter be recorded by any recording officer and the receipt for such 16 tax indorsed upon each mortgage shall be recorded therewith. The record 17 of such receipt shall be conclusive proof that the amount of tax stated 18 therein has been paid upon such mortgage, including any mezzanine debt. 19 § 8. Subdivision 1 of section 258 of the tax law, as amended by chap- 20 ter 241 of the laws of 1989, is amended to read as follows: 21 1. No mortgage of real property shall be recorded by any county clerk 22 or register, unless there shall be paid the taxes imposed by and as in 23 this article provided. No mortgage of real property which is subject to 24 the taxes imposed by this article shall be released, discharged of 25 record or received in evidence in any action or proceeding, nor shall 26 any assignment of or agreement extending any such mortgage be recorded 27 unless the taxes imposed thereon by this article shall have been paid as 28 provided in this article. For purposes of the taxes imposed and author- 29 ized by subparagraph three of paragraph (a) of subdivision two of 30 section two hundred fifty of this article, unless such taxes shall have 31 been paid, no mortgage of real property shall be recorded by any county 32 clerk or register, nor shall such mortgage be released, discharged, 33 recorded or received in evidence in any action or proceeding, nor shall 34 any assignment of agreement extending such mortgage be recorded. 35 Provided, however, except as otherwise provided in subdivision two of 36 this section, in order to obtain a release or discharge of record where 37 the mortgagor is not liable for the special additional tax imposed under 38 subdivision one-a of section two hundred fifty-three of this chapter, 39 such mortgagor or any subsequent owner of the mortgaged property or a 40 part thereof may pay the tax imposed under such subdivision one-a and 41 penalty, and may either apply for the credit allowable under this chap- 42 ter for payment of such additional tax or may maintain an action to 43 recover the amounts so paid against any person liable for payment of the 44 tax or any subsequent assignees or owners of such mortgage or consol- 45 idated mortgage of which such mortgage is a part, as if such amounts of 46 tax and penalty were a debt personally owed by such persons to the mort- 47 gagor or subsequent owner. No judgment or final order in any action or 48 proceeding shall be made for the foreclosure or the enforcement of any 49 mortgage which is subject to any tax imposed by this article or of any 50 debt or obligation secured by any such mortgage, unless the taxes, 51 including taxes authorized by subparagraph three of paragraph (a) of 52 subdivision two of section two hundred fifty of this article imposed by 53 this article shall have been paid as provided in this article; and, 54 except as otherwise provided in subdivision two of this section, whenev- 55 er it shall appear that any mortgage has been recorded without payment 56 of a tax imposed by this article there shall be added to the tax a sumS. 2509--B 112 1 equal to one-half of one per centum thereof for each month or fraction 2 of a month for the period that the tax remains unpaid except where it 3 could not be determined from the face of the instrument that a tax was 4 due, or where an advance has been made on a prior advance mortgage or a 5 corporate trust mortgage without payment of the tax, in which case there 6 shall be added to the tax a sum equal to one per centum thereof for each 7 month or fraction of a month for the period that the tax remains unpaid. 8 In any case where a mortgage of real property subject to a tax imposed 9 by this article has heretofore been recorded or is hereafter recorded in 10 good faith, and the county clerk or register has held such mortgage 11 nontaxable or taxable at one amount, and it shall later appear that it 12 was taxable or taxable at a greater amount, the commissioner of taxation 13 and finance may remit the penalties in excess of one-half of one per 14 centum per month. 15 § 9. This act shall take effect on the ninetieth day after it shall 16 have become a law. 17 PART TT 18 Section 1. Subparagraph (B) of paragraph 3 of subsection (c) of 19 section 658 of the tax law, as amended by section 1 of part H-1 of chap- 20 ter 57 of the laws of 2009, is amended to read as follows: 21 (B) The filing fee will be based on the New York source gross income 22 of the limited liability company or partnership for the taxable year 23 immediately preceding the taxable year for which the fee is due. If the 24 limited liability company or partnership does not have any New York 25 source gross income for the taxable year immediately preceding the taxa- 26 ble year for which the fee is due, the limited liability company or 27 partnership shall pay the minimum filing fee. Partnerships, other than 28 limited liability partnerships under article eight-B of the partnership 29 law and foreign limited liability partnerships, with less than one 30 million dollars in New York source gross income are exempt from the 31 filing fee. New York source gross income is the sum of the partners' or 32 members' shares of federal gross income from the partnership or limited 33 liability company derived from or connected with New York sources, 34 determined in accordance with the provisions of section six hundred 35 thirty-one of this article as if those provisions and any related 36 provisions expressly referred to a computation of federal gross income 37 from New York sources. For this purpose, federal gross income is 38 computed without any allowance or deduction for cost of goods sold. 39 The amount of the filing fee for taxable years beginning on or after 40 January first, two thousand eight and prior to January first, two thou- 41 sand twenty-one will be determined in accordance with the following 42 table: 43 If the New York source gross income is: The fee is: 44 not more than $100,000 $25 45 more than $100,000 but not over $250,000 $50 46 more than $250,000 but not over $500,000 $175 47 more than $500,000 but not over $1,000,000 $500 48 more than $1,000,000 but not over $5,000,000 $1,500 49 more than $5,000,000 but not over $25,000,000 $3,000 50 Over $25,000,000 $4,500 51 The amount of the filing fee for taxable years beginning on or after 52 January first, two thousand twenty-one will be determined by the commis-S. 2509--B 113 1 sioner such that the fee schedule applicable when the New York source 2 gross income is not more than one million dollars will remain the same 3 as it was on or after January first, two thousand eight, and that the 4 filing fee schedule applicable when the New York source gross income is 5 more then one million dollars will be adjusted by the commissioner in 6 such a way as to generate one hundred thirteen million dollars in addi- 7 tional revenue as compared to the total revenue generated from such fees 8 in the taxable year two thousand twenty. 9 § 2. This act shall take effect on the ninetieth day after it shall 10 have become a law. Effective immediately, the addition, amendment and/or 11 repeal of any rule or regulation necessary for the implementation of 12 this act on its effective date are authorized to be made and completed 13 on or before such effective date. 14 PART UU 15 Section 1. Section 606 of the tax law is amended by adding a new 16 subsection (e-2) to read as follows: 17 (e-2) Real property tax relief credit. (1) For purposes of this 18 subsection: 19 (A) "Qualified taxpayer" means a resident individual of the state who 20 has occupied the same residence for six months or more of the taxable 21 year as his or her primary residence, and is required or chooses to file 22 a return under this article. 23 (B) "Qualified gross income" means the adjusted gross income of the 24 qualified taxpayer for the taxable year as reported for federal income 25 tax purposes, or which would be reported as adjusted gross income if a 26 federal income tax return were required to be filed. In computing quali- 27 fied gross income, the net amount of loss reported on Federal Schedule 28 C, D, E, or F shall not exceed three thousand dollars per schedule. In 29 addition, the net amount of any other separate category of loss shall 30 not exceed three thousand dollars. The aggregate amount of all losses 31 included in computing qualified gross income shall not exceed fifteen 32 thousand dollars. 33 (C) "Residence" means a dwelling in this state owned by the taxpayer 34 and used by the taxpayer as his or her primary residence, and so much of 35 the land abutting it, not exceeding one acre, as is reasonably necessary 36 for use of the dwelling as a home, and may consist of a part of a 37 multi-dwelling or multi-purpose building including a cooperative or 38 condominium. Residence includes a trailer or mobile home, used exclu- 39 sively for residential purposes and defined as real property pursuant to 40 paragraph (g) of subdivision twelve of section one hundred two of the 41 real property tax law. 42 (D) "Qualifying real property taxes" means all real property taxes, 43 special ad valorem levies and special assessments, exclusive of penal- 44 ties and interest, levied by a taxing jurisdiction on the residence 45 owned and occupied by a qualified taxpayer and paid by the qualified 46 taxpayer during the taxable year, provided that to the extent the total 47 amount of real property taxes so paid includes school district taxes, 48 the amount of the school tax relief (STAR) credit claimed pursuant to 49 subsection (ccc) of this section, if any, shall be deducted from such 50 amount. 51 A qualified taxpayer may elect to include any additional amount that 52 would have been levied by a taxing jurisdiction and paid by the quali- 53 fied taxpayer in the absence of an exemption from real property taxation 54 pursuant to section four hundred sixty-seven of the real property taxS. 2509--B 114 1 law. If tenant-stockholders in a cooperative housing corporation have 2 met the requirements of section two hundred sixteen of the internal 3 revenue code by which they are allowed a deduction for real estate 4 taxes, the amount of taxes so allowable, or which would be allowable if 5 the taxpayer had filed returns on a cash basis, shall be qualifying real 6 property taxes. If a residence is an integral part of a larger unit, 7 qualifying real property taxes shall be limited to that amount of such 8 taxes paid as may be reasonably apportioned to such residence. If a 9 taxpayer owns and occupies two residences during different periods in 10 the same taxable year, qualifying real property taxes shall be the sum 11 of the prorated qualifying real property taxes attributable to the 12 taxpayer during the periods such taxpayer occupies each of such resi- 13 dences. If the taxpayer owns and occupies a residence for part of the 14 taxable year and rents a residence for part of the same taxable year, it 15 may include the proration of qualifying real property taxes on the resi- 16 dence owned. Provided, however, for purposes of the credit allowed under 17 this subsection, qualifying real property taxes may be included by a 18 qualified taxpayer only to the extent that such taxpayer or the spouse 19 of such taxpayer, occupying such residence for one hundred eighty-three 20 days or more of the taxable year, owns or has owned the residence and 21 paid such taxes. 22 (E) "Excess real property tax" means the excess of qualifying real 23 property taxes over the following percentage of qualified gross income: 24 For the years beginning in: Percentage: 25 2021 and after 6.0% 26 (2) A qualified taxpayer shall be allowed a credit as provided in 27 paragraph three of this subsection against the taxes imposed by this 28 article. If the credit exceeds the tax for such year under this article, 29 the excess shall be treated as an overpayment, to be credited or 30 refunded, without interest. If a qualified taxpayer is not required to 31 file a return pursuant to section six hundred fifty-one of this article, 32 a qualified taxpayer may nevertheless receive the full amount of the 33 credit to be credited or repaid as an overpayment, without interest. 34 (3) Determination of credit. For all taxable years beginning on or 35 after January first, two thousand twenty-one, the credit amount allowed 36 under this subsection shall equal the applicable percentage of the 37 excess real property tax, calculated as follows: 38 (A) For qualified taxpayers whose qualified gross income is seventy- 39 five thousand dollars or less, the applicable percentage shall be four- 40 teen percent. 41 (B) For qualified taxpayers whose qualified gross income is greater 42 than seventy-five thousand dollars but less than or equal to one hundred 43 fifty thousand dollars, the applicable percentage shall be the differ- 44 ence between (i) fourteen percent and (ii) five percent multiplied by a 45 fraction, the numerator of which is the difference between the qualified 46 taxpayer's qualified gross income as defined by this subsection and 47 seventy-five thousand dollars, and the denominator of which is seventy- 48 five thousand dollars. 49 (C) For qualified taxpayers whose qualified gross income is greater 50 than one hundred fifty thousand dollars but less than or equal to two 51 hundred fifty thousand dollars, the applicable percentage shall be the 52 difference between (i) nine percent and (ii) six percent multiplied by a 53 fraction, the numerator of which is the difference between the qualified 54 taxpayer's qualified gross income and one hundred fifty thousand 55 dollars, and the denominator of which is one hundred thousand dollars.S. 2509--B 115 1 (4) Maximum credit for property owners. Notwithstanding the provisions 2 of paragraph three of this subsection, the maximum credit determined 3 under such paragraph, and thereby allowed under this subsection, shall 4 not exceed the amount calculated under this paragraph. 5 For all taxable years beginning on or after January first, two thou- 6 sand twenty-one, the maximum credit amount allowed under this subsection 7 shall be calculated as follows: 8 (A) For qualified taxpayers whose qualified gross income is seventy- 9 five thousand dollars or less, the maximum credit allowed shall be five 10 hundred dollars. 11 (B) For qualified taxpayers whose qualified gross income is greater 12 than seventy-five thousand dollars but less than or equal to one hundred 13 fifty thousand dollars, the maximum credit allowed shall be the differ- 14 ence between (i) five hundred dollars and (ii) one hundred fifty dollars 15 multiplied by a fraction, the numerator of which is the difference 16 between the qualified taxpayer's qualified gross income and seventy-five 17 thousand dollars, and the denominator of which is seventy-five thousand 18 dollars. 19 (C) For qualified taxpayers whose qualified gross income is greater 20 than one hundred fifty thousand dollars but less than or equal to two 21 hundred fifty thousand dollars, the maximum credit allowed shall be the 22 difference between (i) three hundred fifty dollars and (ii) one hundred 23 fifty dollars multiplied by a fraction, the numerator of which is the 24 difference between the qualified taxpayer's qualified gross income and 25 one hundred fifty thousand dollars, and the denominator of which is one 26 hundred thousand dollars. 27 (5) If a qualified taxpayer occupies a residence for a period of less 28 than twelve months during the taxable year or occupies two residences 29 during different periods in such taxable year, the credit allowed pursu- 30 ant to this subsection shall be computed in such manner as the commis- 31 sioner may, by regulation, prescribe in order to properly reflect the 32 credit or portion thereof attributable to such residence or residences 33 and such period or periods. 34 (6) The commissioner may prescribe that the credit under this 35 subsection shall be determined in whole or in part by the use of tables 36 prescribed by such commissioner. Such tables shall set forth the credit 37 to the nearest dollar. 38 (7) No credit shall be granted under this subsection: 39 (A) To a property owner if qualified gross income for the taxable year 40 exceeds two hundred fifty thousand dollars. 41 (B) To a property owner unless: (i) the property is used for residen- 42 tial purposes; (ii) not more than twenty percent of the rental income, 43 if any, from the property is from rental for nonresidential purposes; 44 and (iii) the property is occupied as a residence in whole or in part by 45 one or more of the owners of the property. 46 (C) To an individual with respect to whom a deduction under subsection 47 (c) of section one hundred fifty-one of the internal revenue code is 48 allowable to another taxpayer for the taxable year. 49 (D) With respect to a residence that is wholly exempted from real 50 property taxation. 51 (E) To an individual who is not a resident individual of the state for 52 the entire taxable year. 53 (8) The right to claim a credit or the portion of a credit, where such 54 credit has been divided under this subsection, shall be personal to the 55 qualified taxpayer and shall not survive his or her death, but suchS. 2509--B 116 1 right may be exercised on behalf of a claimant by his or her legal guar- 2 dian or attorney in fact during his or her lifetime. 3 (9) If a qualified taxpayer is not required to file a return pursuant 4 to section six hundred fifty-one of this article, a claim for a credit 5 may be taken on a return filed with the commissioner within three years 6 from the time it would have been required that a return be filed pursu- 7 ant to such section had the qualified taxpayer had a taxable year ending 8 on December thirty-first. Returns under this paragraph shall be in such 9 form as shall be prescribed by the commissioner, who shall make avail- 10 able such forms and instructions for filing such returns. 11 (10) The commissioner may require a qualified taxpayer to furnish the 12 following information in support of his or her claim for credit under 13 this subsection: qualified gross income; real property taxes levied or 14 that would have been levied in the absence of an exemption from real 15 property tax pursuant to section four hundred sixty-seven of the real 16 property tax law; and all other information which may be required by the 17 commissioner to determine the credit. 18 (11) The provisions of this article, including the provisions of 19 sections six hundred fifty-three, six hundred fifty-eight, and six 20 hundred fifty-nine of this article and the provisions of part six of 21 this article relating to procedure and administration, including the 22 judicial review of the decisions of the commissioner, except so much of 23 section six hundred eighty-seven of this article which permits a claim 24 for credit or refund to be filed after the period provided for in para- 25 graph eight of this subsection and except sections six hundred fifty- 26 seven, six hundred eighty-eight and six hundred ninety-six of this arti- 27 cle, shall apply to the provisions of this subsection in the same manner 28 and with the same force and effect as if the language of those 29 provisions had been incorporated in full into this subsection and had 30 expressly referred to the credit allowed or returns filed under this 31 subsection, except to the extent that any such provision is either 32 inconsistent with a provision of this subsection or is not relevant to 33 this subsection. As used in such sections and such part, the term 34 "taxpayer" shall include a qualified taxpayer under this subsection and, 35 notwithstanding the provisions of subsection (e) of section six hundred 36 ninety-seven of this article, where a qualified taxpayer has protested 37 the denial of a claim for credit under this subsection and the time to 38 file a petition for redetermination of a deficiency or for refund has 39 not expired, he or she shall, subject to such conditions as may be set 40 by the commissioner, receive such information which the commissioner 41 finds is relevant and material to the issue of whether such claim was 42 properly denied. 43 (12) The commissioner shall prepare a written report after December 44 thirty-first of each calendar year, which shall contain statistical 45 information regarding the credits granted on or before such dates under 46 this subsection during such calendar year. Copies of the report shall be 47 submitted by the commissioner to the governor, the temporary president 48 of the senate, the speaker of the assembly, the chairman of the senate 49 finance committee and the chairman of the assembly ways and means 50 committee within forty-five days of December thirty-first. Such report 51 shall contain, but need not be limited to, the number of credits and the 52 average amount of such credits allowed; and of those, the number of 53 credits and the average amount of such credits allowed to qualified 54 taxpayers in each county; and of those, the number of credits and the 55 average amount of such credits allowed to qualified taxpayers whoseS. 2509--B 117 1 qualified gross income falls within each of the qualified gross income 2 ranges set forth in this subsection. 3 (13) In the case of a taxpayer who has itemized deductions from feder- 4 al adjusted gross income, and whose federal itemized deductions include 5 an amount for real estate taxes paid, the New York itemized deduction 6 otherwise allowable under section six hundred fifteen of this chapter 7 shall be reduced by the amount of the credit claimed under this 8 subsection. 9 § 2. This act shall take effect immediately and shall apply to taxable 10 years beginning on or after January 1, 2021. 11 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 12 sion, section or part of this act shall be adjudged by any court of 13 competent jurisdiction to be invalid, such judgment shall not affect, 14 impair, or invalidate the remainder thereof, but shall be confined in 15 its operation to the clause, sentence, paragraph, subdivision, section 16 or part thereof directly involved in the controversy in which such judg- 17 ment shall have been rendered. It is hereby declared to be the intent of 18 the legislature that this act would have been enacted even if such 19 invalid provisions had not been included herein. 20 § 3. This act shall take effect immediately provided, however, that 21 the applicable effective date of Parts A through UU of this act shall be 22 as specifically set forth in the last section of such Parts.
