Bill Text: NY S04009 | 2023-2024 | General Assembly | Introduced
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 2023-2024 state fiscal year; provides the authority to abate interest for taxpayers impacted by declared disasters (Part A); clarifies the definition of limited partner for the purposes of the metropolitan commuter transportation mobility tax (Part B); makes the investment tax credit refundable for eligible farmers for five years (Part C); amends provisions of the Empire state film production credit and the Empire state film post production credit; extends and increases such credits (Part D); provides for the abatement of penalties for underpayment of estimated tax by a corporation (Part E); extends the deadline for applications for the COVID-19 capital costs tax credit program (Part F); creates a child care creation and expansion tax credit for child care programs made available to employees by a business directly or through a third party (Part G); relates to extending a tax credit for certain businesses engaged in biotechnologies (Part H); extends the current corporate tax rates (Subpart A); extends the rehabilitation of historic properties tax credit (Subpart B); extends the empire state commercial production tax credit for five years (Subpart C); extends provisions of law relating to the grade No. 6 heating oil conversion tax credit (Subpart D); relates to the New York city musical and theatrical production tax credit (Subpart E)(Part I); makes technical corrections to the credit for companies who provide transportation to individuals with disabilities (Subpart A); relates to the eligibility for the brownfield redevelopment tax credit (Subpart B); relates to the pass-through entity tax and city pass-through entity tax (Subpart C)(Part J); simplifies certain senior citizen real property tax exemptions (Part K); extends provisions of law relating to oil and gas charges (Part L); provides for the adoption and use of solar and wind energy system appraisal model for purposes of real property taxation (Part N); eliminates the congestion surcharge registration requirements (Part P); provides for the payment of tax on increased quantities of motor fuel and Diesel fuel on which the taxes pursuant to articles 12-a, 13-a and 28 were not previously paid (Part Q); extends the sales tax exemption for certain sales made through vending machines (Part R); increases the rate of taxes on cigarettes (Part S); relates to the revocation of certain certificates and civil penalties for refusal of a cigarette and tobacco inspection (Part T); relates to extending the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds (Part U); permits the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part V); clarifies the deposit timeframe for moneys deposited by the commissioner of taxation and finance (Part W); relates to financing of the Belmont Park racetrack renovation and the membership of the franchise oversight board (Part X); extends certain provisions related to the simulcasting of horse races and taxes on pari-mutuel betting (Part BB); relates to the liability of a person who presents false claims for money or property to the state or a local government (Part DD); repeals provisions relating to the transferability of the investment tax credit (Part EE); relates to the amount of credits for cider, wine, and liquor under the alcoholic beverage production credit (Part FF); establishes a permanent rate for the metropolitan transportation business tax surcharge of thirty percent beginning on or after January 1, 2024 (Part GG).
Spectrum: Committee Bill
Status: (Passed) 2023-05-03 - SIGNED CHAP.59 [S04009 Detail]
Download: New_York-2023-S04009-Introduced.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2023-2024 state fiscal year; provides the authority to abate interest for taxpayers impacted by declared disasters (Part A); clarifies the definition of limited partner for the purposes of the metropolitan commuter transportation mobility tax (Part B); makes the investment tax credit refundable for eligible farmers for five years (Part C); amends provisions of the Empire state film production credit and the Empire state film post production credit; extends and increases such credits (Part D); provides for the abatement of penalties for underpayment of estimated tax by a corporation (Part E); extends the deadline for applications for the COVID-19 capital costs tax credit program (Part F); creates a child care creation and expansion tax credit for child care programs made available to employees by a business directly or through a third party (Part G); relates to extending a tax credit for certain businesses engaged in biotechnologies (Part H); extends the current corporate tax rates (Subpart A); extends the rehabilitation of historic properties tax credit (Subpart B); extends the empire state commercial production tax credit for five years (Subpart C); extends provisions of law relating to the grade No. 6 heating oil conversion tax credit (Subpart D); relates to the New York city musical and theatrical production tax credit (Subpart E)(Part I); makes technical corrections to the credit for companies who provide transportation to individuals with disabilities (Subpart A); relates to the eligibility for the brownfield redevelopment tax credit (Subpart B); relates to the pass-through entity tax and city pass-through entity tax (Subpart C)(Part J); simplifies certain senior citizen real property tax exemptions (Part K); extends provisions of law relating to oil and gas charges (Part L); provides for the adoption and use of solar and wind energy system appraisal model for purposes of real property taxation (Part N); eliminates the congestion surcharge registration requirements (Part P); provides for the payment of tax on increased quantities of motor fuel and Diesel fuel on which the taxes pursuant to articles 12-a, 13-a and 28 were not previously paid (Part Q); extends the sales tax exemption for certain sales made through vending machines (Part R); increases the rate of taxes on cigarettes (Part S); relates to the revocation of certain certificates and civil penalties for refusal of a cigarette and tobacco inspection (Part T); relates to extending the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds (Part U); permits the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part V); clarifies the deposit timeframe for moneys deposited by the commissioner of taxation and finance (Part W); relates to financing of the Belmont Park racetrack renovation and the membership of the franchise oversight board (Part X); extends certain provisions related to the simulcasting of horse races and taxes on pari-mutuel betting (Part BB); relates to the liability of a person who presents false claims for money or property to the state or a local government (Part DD); repeals provisions relating to the transferability of the investment tax credit (Part EE); relates to the amount of credits for cider, wine, and liquor under the alcoholic beverage production credit (Part FF); establishes a permanent rate for the metropolitan transportation business tax surcharge of thirty percent beginning on or after January 1, 2024 (Part GG).
Spectrum: Committee Bill
Status: (Passed) 2023-05-03 - SIGNED CHAP.59 [S04009 Detail]
Download: New_York-2023-S04009-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 4009 A. 3009 SENATE - ASSEMBLY February 1, 2023 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to providing the authority to abate interest for taxpayers impacted by declared disasters (Part A); to amend the tax law, in relation to clarifying the definition of limited partner for the purposes of the metropolitan commuter trans- portation mobility tax (Part B); to amend the tax law, in relation to making the investment tax credit refundable for eligible farmers for five years (Part C); to amend the tax law, in relation to the empire state film production credit and the empire state film post-production credit (Part D); to amend the tax law, in relation to the abatement of penalties for underpayment of estimated tax by a corporation (Part E); to amend the economic development law, in relation to the COVID-19 capital costs tax credit program (Part F); to amend the social services law and the tax law, in relation to creating a tax credit for the creation and expansion of child care (Part G); to amend the tax law, in relation to extending the authorization of any city having a population of one million or more to provide a biotechnology credit against the general corporation tax, unincorporated business tax, and banking corporation tax of such city (Part H); to amend the tax law, in relation to extending the current corporate tax rates (Subpart A); to amend the tax law, in relation to extending the rehabilitation of historic properties tax credit (Subpart B); to amend the tax law, in relation to extending the empire state commercial production tax cred- it for five years (Subpart C); to amend the tax law, in relation to extending provisions of law relating to the grade No. 6 heating oil conversion tax credit (Subpart D); to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effec- tiveness thereof; and to amend the tax law, in relation to the New EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-01-3S. 4009 2 A. 3009 York city musical and theatrical production tax credit (Subpart E)(Part I); to amend the tax law, in relation to making technical corrections to the credit for companies who provide transportation to individuals with disabilities (Subpart A); to amend the tax law, in relation to eligibility for the brownfield redevelopment tax credit (Subpart B); to amend the tax law, in relation to the pass-through entity tax and city pass-through entity tax and making technical corrections thereto (Subpart C) (Part J); to amend the real property tax law, in relation to simplifying the senior citizens real property tax exemption (Part K); to amend chapter 540 of the laws of 1992, amending the real property tax law relating to oil and gas charges, in relation to the effectiveness thereof (Part L); to amend the real property tax law, in relation to requiring excess proceeds from a tax foreclosure sale to be returned to the former owner (Part M); to amend the real property tax law and the state administrative procedure act, in relation to clarifying the solar or wind energy system appraisal model (Part N); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes permanently; to amend chapter 67 of the laws of 2015, relating to authorizing the city of Yonkers to impose additional sales tax, in relation to the effec- tiveness thereof; to amend section 2 of item R of subpart C of part XXX of chapter 58 of the laws of 2020 amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, in relation to making such provisions permanent; to amend section 2 of item Z of subpart C of part XXX of chapter 58 of the laws of 2020 amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, in relation to making such provisions permanent; to amend section 4 of item EE of subpart C of part XXX of chapter 58 of the laws of 2020 amending the tax law relating to extending the authorization of the county of Onon- daga to impose an additional rate of sales and compensating use taxes, in relation to making such provisions permanent; to amend section 2 of item GG of subpart C of part XXX of chapter 58 of the laws of 2020 amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, in relation to making such provisions perma- nent; to amend section 3 of item XX of subpart C of part XXX of chap- ter 58 of the laws of 2020 amending the tax law relating to extending the authority of the county of Ulster to impose an additional 1 percent sales and compensating use tax, in relation to making such provisions permanent; and to repeal certain provisions of such law relating thereto (Part O); to repeal certain provisions of the tax law, relating to eliminating congestion surcharge registration requirements (Part P); to amend the tax law, in relation to the payment of tax on increased quantities of motor fuel and Diesel motor fuel on which the taxes pursuant to articles 12-A, 13-A and 28 were not previously paid (Part Q); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vend- ing machines for those operated by business enterprise program partic- ipants (Part R); to amend the tax law, in relation to an increase in the rate of tax on cigarettes (Part S); to amend the tax law, in relation to the revocation of certain certificates and civil penalties for refusal of a cigarette and tobacco inspection (Part T); to amend the tax law and the administrative code of the city of New York, in relation to extending the tax rate reduction under the New York stateS. 4009 3 A. 3009 real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate invest- ment funds (Part U); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part V); to amend the state finance law, in relation to clarifying the deposit timeframe for moneys deposited by the commissioner of taxation and finance (Part W); to amend the tax law, in relation to requiring the New York Racing Association, Inc. to enter into a repayment agreement with the state of New York for the repayment of funds provided by the state for the renovation of Belmont Park (Part X); to amend the tax law, in relation to a keno style lottery game (Part Y); to amend the racing, pari-mutu- el wagering and breeding law, in relation to the operations of off- track betting corporations (Part Z); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Capital region off-track betting corporations' capital acquisition funds (Part AA); to amend the racing, pari-mutuel wagering and breed- ing law, in relation to licenses for simulcast facilities, sums relat- ing to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distrib- utions 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; 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 extend- ing certain provisions thereof (Part BB); and to amend the tax law, in relation to conforming to the federal taxation of S corporations (Part CC) 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 2023-2024 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through CC. 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. The opening paragraph of paragraph a of subdivision twen- 14 ty-eighth of section 171 of the tax law, as amended by chapter 451 of 15 the laws of 2022, is amended to read as follows: 16 [In the case of a taxpayer who is determined for federal tax purposes17under the provisions of] Have the authority to postpone certain dead- 18 lines for a period of up to ninety days, or longer when necessary to 19 align with relief provided by the Internal Revenue Service pursuant toS. 4009 4 A. 3009 1 section seven thousand five hundred eight-A of the internal revenue code 2 [to be affected by a presidentially declared disaster, or who], for a 3 taxpayer who is determined [under regulations promulgated by the commis-4sioner] to be affected by a presidentially declared disaster or by a 5 disaster emergency declared by the governor[, have authority to provide6that a period of up to ninety days, or a longer period when necessary to7align with relief that has already been provided by the Internal Revenue8Service under the authority to postpone certain deadlines in section9seven thousand five hundred eight-A of the internal revenue code, may]. 10 Any extension period provided pursuant to the authority in this subdivi- 11 sion shall be disregarded in determining under the tax law, or under a 12 law enacted pursuant to the authority of the tax law or former article 13 2-E of the general city law where administered by the commissioner, in 14 respect of any tax liability (including any interest, penalty, addi- 15 tional amount, or addition to the tax) of such taxpayer: 16 § 2. Paragraph c of subdivision twenty-eighth of section 171 of the 17 tax law, as added by chapter 8 of the laws of 1998, is amended to read 18 as follows: 19 c. Definitions. 1. Presidentially declared disaster. For purposes of 20 this subdivision, the term "presidentially declared disaster" means any 21 disaster which, with respect to an area, resulted in a subsequent deter- 22 mination by the president of the United States that such area warrants 23 assistance by the federal government under the disaster relief and emer- 24 gency assistance act. 25 2. Taxpayer. For purposes of this subdivision, the term "taxpayer" 26 means any person or entity required to file a return or remit any tax to 27 the commissioner pursuant to this chapter. 28 § 3. Subdivision twenty-eighth of section 171 of the tax law is 29 amended by adding a new paragraph d to read as follows: 30 d. Where a taxpayer who, pursuant to section seven thousand five 31 hundred eight-a of the internal revenue code, is determined for federal 32 tax purposes to be affected by a presidentially declared disaster, or 33 who is determined to be affected by a disaster emergency declared by the 34 governor, but the commissioner has not postponed a tax deadline pursuant 35 to the authority in paragraph a of this subdivision due to such disas- 36 ter, the commissioner may abate any amount of interest from the under- 37 payment of any tax administered by the commissioner under this chapter 38 that accrued for the period during which the taxpayer was unable to meet 39 such deadline due to direct impacts of the disaster. 40 § 4. This act shall take effect immediately. 41 PART B 42 Section 1. Subsection (e) of section 800 of the tax law, as added by 43 section 1 of part C of chapter 25 of the laws of 2009, is amended to 44 read as follows: 45 (e) Net earnings from self-employment. Net earnings from self-employ- 46 ment has the same meaning as in section 1402 of the internal revenue 47 code, provided, however, that for purposes of determining whether the 48 exclusion pursuant to paragraph 13 of subsection (a) of section 1402 of 49 the internal revenue code applies, an individual shall not be considered 50 a limited partner if the individual, directly or indirectly, takes part 51 in the control, or participates in the management or operations of the 52 partnership such that the individual is not a passive investor, regard- 53 less of the individual's title or characterization in a partnership or 54 operating agreement.S. 4009 5 A. 3009 1 § 2. This act shall take effect immediately. 2 PART C 3 Section 1. Paragraph (d) of subdivision 1 of section 210-B of the tax 4 law, as amended by section 31 of part T of chapter 59 of the laws of 5 2015, is amended to read as follows: 6 (d) Except as otherwise provided in this paragraph, the credit allowed 7 under this subdivision for any taxable year shall not reduce the tax due 8 for such year to less than the fixed dollar minimum amount prescribed in 9 paragraph (d) of subdivision one of section two hundred ten of this 10 article. However, if the amount of credit allowable under this subdivi- 11 sion for any taxable year reduces the tax to such amount or if the 12 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 13 any amount of credit allowed for a taxable year commencing prior to 14 January first, nineteen hundred eighty-seven and not deductible in such 15 taxable year may be carried over to the following year or years and may 16 be deducted from the taxpayer's tax for such year or years but in no 17 event shall such credit be carried over to taxable years commencing on 18 or after January first, two thousand two, and any amount of credit 19 allowed for a taxable year commencing on or after January first, nine- 20 teen hundred eighty-seven and not deductible in such year may be carried 21 over to the fifteen taxable years next following such taxable year and 22 may be deducted from the taxpayer's tax for such year or years. In lieu 23 of such carryover, (i) any such taxpayer which qualifies as a new busi- 24 ness under paragraph (f) of this subdivision may elect to treat the 25 amount of such carryover as an overpayment of tax to be credited or 26 refunded in accordance with the provisions of section one thousand 27 eighty-six of this chapter, and (ii) any such taxpayer that is an eligi- 28 ble farmer, as defined in subdivision eleven of this section, may for 29 taxable years beginning before January first, two thousand twenty-eight, 30 elect to treat the amount of such carryover as an overpayment of tax to 31 be credited or refunded in accordance with the provisions of section one 32 thousand eighty-six of this chapter, provided, however, the provisions 33 of subsection (c) of section one thousand eighty-eight of this chapter 34 notwithstanding, no interest shall be paid thereon. 35 § 2. Paragraph 5 of subsection (a) of section 606 of the tax law, as 36 amended by chapter 170 of the laws of 1994, is amended to read as 37 follows: 38 (5) If the amount of credit allowable under this subsection for any 39 taxable year shall exceed the taxpayer's tax for such year, the excess 40 allowed for a taxable year commencing prior to January first, nineteen 41 hundred eighty-seven may be carried over to the following year or years 42 and may be deducted from the taxpayer's tax for such year or years, but 43 in no event shall such credit be carried over to taxable years commenc- 44 ing on or after January first, nineteen hundred ninety-seven, and any 45 amount of credit allowed for a taxable year commencing on or after Janu- 46 ary first, nineteen hundred eighty-seven and not deductible in such year 47 may be carried over to the ten taxable years next following such taxable 48 year and may be deducted from the taxpayer's tax for such year or years. 49 In lieu of carrying over any such excess, (A) a taxpayer who qualifies 50 as an owner of a new business for purposes of paragraph ten of this 51 subsection may, at [his] the taxpayer's option, receive such excess as a 52 refund, and (B) a taxpayer that is an eligible farmer as defined in 53 subsection (n) of this section may, at the taxpayer's option, for taxa- 54 ble years beginning before January first, two thousand twenty-eightS. 4009 6 A. 3009 1 receive such excess as a refund. Any refund paid pursuant to this para- 2 graph shall be deemed to be a refund of an overpayment of tax as 3 provided in section six hundred eighty-six of this article, provided, 4 however, that no interest shall be paid thereon. 5 § 3. This act shall take effect immediately, and apply to taxable 6 years beginning on or after January 1, 2023. 7 PART D 8 Section 1. Paragraph 2 of subdivision (a) of section 24 of the tax 9 law, as separately amended by sections 1 and 2 of part M of chapter 59 10 of the laws of 2020, is amended to read as follows: 11 (2) The amount of the credit shall be the product (or pro rata share 12 of the product, in the case of a member of a partnership) of [twenty-13five] thirty percent, or thirty-five percent in the case of an eligible 14 relocated television series, and the qualified production costs paid or 15 incurred in the production of a qualified film, provided that: (i) the 16 qualified production costs (excluding post production costs) paid or 17 incurred which are attributable to the use of tangible property or the 18 performance of services at a qualified film production facility in the 19 production of such qualified film equal or exceed seventy-five percent 20 of the production costs (excluding post production costs) paid or 21 incurred which are attributable to the use of tangible property or the 22 performance of services at any film production facility within and with- 23 out the state in the production of such qualified film, and (ii) except 24 with respect to a qualified independent film production company or 25 pilot, at least ten percent of the total principal photography shooting 26 days spent in the production of such qualified film must be spent at a 27 qualified film production facility. However, if the qualified production 28 costs (excluding post production costs) which are attributable to the 29 use of tangible property or the performance of services at a qualified 30 film production facility in the production of such qualified film is 31 less than three million dollars, then the portion of the qualified 32 production costs attributable to the use of tangible property or the 33 performance of services in the production of such qualified film outside 34 of a qualified film production facility shall be allowed only if the 35 shooting days spent in New York outside of a film production facility in 36 the production of such qualified film equal or exceed seventy-five 37 percent of the total shooting days spent within and without New York 38 outside of a film production facility in the production of such quali- 39 fied film. The credit shall be allowed for the taxable year in which the 40 production of such qualified film is completed. However, in the case of 41 a qualified film that receives funds from additional pool 2, no credit 42 shall be claimed before the later of (1) the taxable year the production 43 of the qualified film is complete, or (2) the [first] taxable year 44 [beginning immediately after the] that includes the last day of the 45 allocation year for which the film has been allocated credit by the 46 governor's office for motion picture and television development. If the 47 amount of the credit is at least one million dollars but less than five 48 million dollars, the credit shall be claimed over a two year period 49 beginning in the first taxable year in which the credit may be claimed 50 and in the next succeeding taxable year, with one-half of the amount of 51 credit allowed being claimed in each year. If the amount of the credit 52 is at least five million dollars, the credit shall be claimed over a 53 three year period beginning in the first taxable year in which the cred- 54 it may be claimed and in the next two succeeding taxable years, withS. 4009 7 A. 3009 1 one-third of the amount of the credit allowed being claimed in each 2 year. 3 § 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as 4 amended by section 2 of part M of chapter 59 of the laws of 2022, is 5 amended to read as follows: 6 (5) For the period two thousand fifteen through two thousand [twenty-7nine] thirty-four, 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] composers, producers and perform- 13 ers, including background actors with no scripted lines) by a qualified 14 film production company or a qualified independent film production 15 company for services performed by those individuals in one of the coun- 16 ties specified in this paragraph in connection with a qualified film 17 with a minimum budget of five hundred thousand dollars. For purposes of 18 this additional credit, the services must be performed in one or more of 19 the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, 20 Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, 21 Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, 22 Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, 23 Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, 24 Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, 25 St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Wash- 26 ington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits 27 allowed pursuant to the authority of this paragraph shall be five 28 million dollars each year during the period two thousand fifteen through 29 two thousand [twenty-nine] thirty-four of the annual allocation made 30 available to the program pursuant to paragraph four of subdivision (e) 31 of this section. Such aggregate amount of credits shall be allocated by 32 the governor's office for motion picture and television development 33 among taxpayers in order of priority based upon the date of filing an 34 application for allocation of film production credit with such office. 35 If the total amount of allocated credits applied for under this para- 36 graph in any year exceeds the aggregate amount of tax credits allowed 37 for such year under this paragraph, such excess shall be treated as 38 having been applied for on the first day of the next year. If the total 39 amount of allocated tax credits applied for under this paragraph at the 40 conclusion of any year is less than five million dollars, the remainder 41 shall be treated as part of the annual allocation made available to the 42 program pursuant to paragraph four of subdivision (e) of this section. 43 However, in no event may the total of the credits allocated under this 44 paragraph and the credits allocated under paragraph five of subdivision 45 (a) of section thirty-one of this article exceed five million dollars in 46 any year during the period two thousand fifteen through two thousand 47 [twenty-nine] thirty-four. 48 § 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as 49 amended by section 4 of part B of chapter 59 of the laws of 2013, is 50 amended to read as follows: 51 (1) "Qualified production costs" means production costs only to the 52 extent such costs are attributable to the use of tangible property or 53 the performance of services within the state directly and predominantly 54 in the production (including pre-production and post production) of a 55 qualified film. The aggregate total eligible qualified production 56 costs for producers, writers, directors, actors, and composers shall notS. 4009 8 A. 3009 1 exceed forty percent of the aggregate sum total of all other qualified 2 production costs. 3 § 3. Paragraph 2 of subdivision (b) of section 24 of the tax law, as 4 added by section 1 of part P of chapter 60 of the laws of 2004, is 5 amended to read as follows: 6 (2) "Production costs" means any costs for tangible property used and 7 services performed directly and predominantly in the production (includ- 8 ing pre-production and post production) of a qualified film. 9 "Production costs" shall not include (i) costs for a story, script or 10 scenario to be used for a qualified film and (ii) wages or salaries or 11 other compensation for writers, directors, including [music directors] 12 composers, producers and performers (other than background actors with 13 no scripted lines) to the extent those wages or salaries or other 14 compensation exceed five hundred thousand dollars per individual. 15 "Production costs" generally include technical and crew production 16 costs, such as expenditures for film production facilities, or any part 17 thereof, props, makeup, wardrobe, film processing, camera, sound record- 18 ing, set construction, lighting, shooting, editing and meals. 19 § 4. Paragraph 8 of subdivision (b) of section 24 of the tax law, as 20 added by section 2 of part B of chapter 59 of the laws of 2013, is 21 amended to read as follows: 22 (8) "Relocated television production" shall mean, notwithstanding the 23 limitations in subparagraph (i) of paragraph three of this subdivision, 24 a television production that is a talk or variety program that filmed at 25 least [five] two seasons outside the state prior to its first relocated 26 season in New York, the episodes are filmed before a studio audience of 27 two hundred or more, and the relocated television production incurs (i) 28 at least thirty million dollars in annual production costs in the state, 29 or (ii) at least ten million dollars in capital expenditures at a quali- 30 fied production facility in the state. 31 § 5. Subdivision (b) of section 24 of the tax law is amended by adding 32 a new paragraph 9 to read as follows: 33 (9) "Eligible relocated television series" shall mean the first two 34 years of a regularly occurring production intended to run in its initial 35 broadcast, regardless of the medium or mode of its distribution, in a 36 series of narrative and/or thematically related episodes, each of which 37 has a running time of at least thirty minutes in length (inclusive of 38 commercial advertisement and interstitial programming, if any). For the 39 purposes of this definition only, a television series produced by and 40 for media services providers described as streaming services and/or 41 digital platforms (and excluding network/cable) shall mean a regularly 42 occurring production intended to run in its initial release in a series 43 of narrative and/or thematically related episodes, the aggregate length 44 of which is at least seventy-five minutes, although the episodes them- 45 selves may vary in duration from the thirty minutes specified for 46 network/cable production, which had filmed six episodes of the tele- 47 vision series outside the state immediately prior to relocating to the 48 state, where each episode of the television series had a minimum budget 49 of at least one million dollars. 50 § 6. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 51 amended by section 3 of part M of chapter 59 of the laws of 2022, is 52 amended to read as follows: 53 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 54 subdivision (a) of this section shall be increased by an additional four 55 hundred twenty million dollars in each year starting in two thousand ten 56 through two thousand [twenty-nine] twenty-three and seven hundredS. 4009 9 A. 3009 1 million dollars each year starting in two thousand twenty-four through 2 two thousand thirty-four, provided however, seven million dollars of the 3 annual allocation shall be available for the empire state film post 4 production credit pursuant to section thirty-one of this article in two 5 thousand thirteen and two thousand fourteen, twenty-five million dollars 6 of the annual allocation shall be available for the empire state film 7 post production credit pursuant to section thirty-one of this article in 8 each year starting in two thousand fifteen through two thousand [twen-9ty-nine and] twenty-three, and forty-five millions dollars of the annual 10 allocation shall be available for the empire state film post production 11 credit pursuant to section thirty-one of this article in each year 12 starting in two thousand twenty-four through two thousand thirty-four. 13 Provided further, five million dollars of the annual allocation shall be 14 made available for the television writers' and directors' fees and sala- 15 ries credit pursuant to section twenty-four-b of this article in each 16 year starting in two thousand twenty through two thousand [twenty-nine] 17 thirty-four. This amount shall be allocated by the governor's office for 18 motion picture and television development among taxpayers in accordance 19 with subdivision (a) of this section. If the commissioner of economic 20 development determines that the aggregate amount of tax credits avail- 21 able from additional pool 2 for the empire state film production tax 22 credit have been previously allocated, and determines that the pending 23 applications from eligible applicants for the empire state film post 24 production tax credit pursuant to section thirty-one of this article is 25 insufficient to utilize the balance of unallocated empire state film 26 post production tax credits from such pool, the remainder, after such 27 pending applications are considered, shall be made available for allo- 28 cation in the empire state film tax credit pursuant to this section, 29 subdivision twenty of section two hundred ten-B and subsection (gg) of 30 section six hundred six of this chapter. Also, if the commissioner of 31 economic development determines that the aggregate amount of tax credits 32 available from additional pool 2 for the empire state film post 33 production tax credit have been previously allocated, and determines 34 that the pending applications from eligible applicants for the empire 35 state film production tax credit pursuant to this section is insuffi- 36 cient to utilize the balance of unallocated film production tax credits 37 from such pool, then all or part of the remainder, after such pending 38 applications are considered, shall be made available for allocation for 39 the empire state film post production credit pursuant to this section, 40 subdivision thirty-two of section two hundred ten-B and subsection (qq) 41 of section six hundred six of this chapter. The governor's office for 42 motion picture and television development must notify taxpayers of their 43 allocation year and include the allocation year on the certificate of 44 tax credit. Taxpayers eligible to claim a credit must report the allo- 45 cation year directly on their empire state film production credit tax 46 form for each year a credit is claimed and include a copy of the certif- 47 icate with their tax return. In the case of a qualified film that 48 receives funds from additional pool 2, no empire state film production 49 credit shall be claimed before the later of the taxable year the 50 production of the qualified film is complete, or the taxable year imme- 51 diately following the allocation year for which the film has been allo- 52 cated credit by the governor's office for motion picture and television 53 development. 54 § 7. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 55 amended by section 4 of part M of chapter 59 of the laws of 2022, is 56 amended to read as follows:S. 4009 10 A. 3009 1 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 2 subdivision (a) of this section shall be increased by an additional four 3 hundred twenty million dollars in each year starting in two thousand ten 4 through two thousand [twenty-nine] twenty-three and seven hundred 5 million dollars in each year starting in two thousand twenty-four 6 through two thousand thirty-four, provided however, seven million 7 dollars of the annual allocation shall be available for the empire state 8 film post production credit pursuant to section thirty-one of this arti- 9 cle in two thousand thirteen and two thousand fourteen [and], twenty- 10 five million dollars of the annual allocation shall be available for the 11 empire state film post production credit pursuant to section thirty-one 12 of this article in each year starting in two thousand fifteen through 13 two thousand [twenty-nine] twenty-three, and forty-five million dollars 14 of the annual allocation shall be available for the empire state film 15 post production credit pursuant to section thirty-one of this article in 16 each year starting in two thousand twenty-four through two thousand 17 thirty-four. This amount shall be allocated by the governor's office for 18 motion picture and television development among taxpayers in accordance 19 with subdivision (a) of this section. If the commissioner of economic 20 development determines that the aggregate amount of tax credits avail- 21 able from additional pool 2 for the empire state film production tax 22 credit have been previously allocated, and determines that the pending 23 applications from eligible applicants for the empire state film post 24 production tax credit pursuant to section thirty-one of this article is 25 insufficient to utilize the balance of unallocated empire state film 26 post production tax credits from such pool, the remainder, after such 27 pending applications are considered, shall be made available for allo- 28 cation in the empire state film tax credit pursuant to this section, 29 subdivision twenty of section two hundred ten-B and subsection (gg) of 30 section six hundred six of this chapter. Also, if the commissioner of 31 economic development determines that the aggregate amount of tax credits 32 available from additional pool 2 for the empire state film post 33 production tax credit have been previously allocated, and determines 34 that the pending applications from eligible applicants for the empire 35 state film production tax credit pursuant to this section is insuffi- 36 cient to utilize the balance of unallocated film production tax credits 37 from such pool, then all or part of the remainder, after such pending 38 applications are considered, shall be made available for allocation for 39 the empire state film post production credit pursuant to this section, 40 subdivision thirty-two of section two hundred ten-B and subsection (qq) 41 of section six hundred six of this chapter. The governor's office for 42 motion picture and television development must notify taxpayers of their 43 allocation year and include the allocation year on the certificate of 44 tax credit. Taxpayers eligible to claim a credit must report the allo- 45 cation year directly on their empire state film production credit tax 46 form for each year a credit is claimed and include a copy of the certif- 47 icate with their tax return. In the case of a qualified film that 48 receives funds from additional pool 2, no empire state film production 49 credit shall be claimed before the later of the taxable year the 50 production of the qualified film is complete, or the taxable year imme- 51 diately following the allocation year for which the film has been allo- 52 cated credit by the governor's office for motion picture and television 53 development. 54 § 8. Paragraph 2 of subdivision (a) of section 31 of the tax law, as 55 amended by section 5 of part M of chapter 59 of the laws of 2020, is 56 amended to read as follows:S. 4009 11 A. 3009 1 (2) The amount of the credit shall be the product (or pro rata share 2 of the product, in the case of a member of a partnership) of [twenty-3five] thirty percent and the qualified post production costs paid in the 4 production of a qualified film at a qualified post production facility 5 located within the metropolitan commuter transportation district as 6 defined in section twelve hundred sixty-two of the public authorities 7 law or [thirty] thirty-five percent and the qualified post production 8 costs paid in the production of a qualified film at a qualified post 9 production facility located elsewhere in the state. 10 § 9. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 11 amended by section 6 of part M of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (6) For the period two thousand fifteen through two thousand [twenty-14nine] thirty-four, in addition to the amount of credit established in 15 paragraph two of this subdivision, a taxpayer shall be allowed a credit 16 equal to the product (or pro rata share of the product, in the case of a 17 member of a partnership) of ten percent and the amount of wages or sala- 18 ries paid to individuals directly employed (excluding those employed as 19 writers, directors, [music directors] composers, producers and perform- 20 ers, including background actors with no scripted lines) for services 21 performed by those individuals in one of the counties specified in this 22 paragraph in connection with the post production work on a qualified 23 film with a minimum budget of five hundred thousand dollars at a quali- 24 fied post production facility in one of the counties listed in this 25 paragraph. For purposes of this additional credit, the services must be 26 performed in one or more of the following counties: Albany, Allegany, 27 Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, 28 Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, 29 Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madi- 30 son, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, 31 Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, 32 Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, 33 Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The 34 aggregate amount of tax credits allowed pursuant to the authority of 35 this paragraph shall be five million dollars each year during the period 36 two thousand fifteen through two thousand [twenty-nine] thirty-four of 37 the annual allocation made available to the empire state film post 38 production credit pursuant to paragraph four of subdivision (e) of 39 section twenty-four of this article. Such aggregate amount of credits 40 shall be allocated by the governor's office for motion picture and tele- 41 vision development among taxpayers in order of priority based upon the 42 date of filing an application for allocation of post production credit 43 with such office. If the total amount of allocated credits applied for 44 under this paragraph in any year exceeds the aggregate amount of tax 45 credits allowed for such year under this paragraph, such excess shall be 46 treated as having been applied for on the first day of the next year. If 47 the total amount of allocated tax credits applied for under this para- 48 graph at the conclusion of any year is less than five million dollars, 49 the remainder shall be treated as part of the annual allocation for two 50 thousand seventeen made available to the empire state film post 51 production credit pursuant to paragraph four of subdivision (e) of 52 section twenty-four of this article. However, in no event may the total 53 of the credits allocated under this paragraph and the credits allocated 54 under paragraph five of subdivision (a) of section twenty-four of this 55 article exceed five million dollars in any year during the period two 56 thousand fifteen through two thousand [twenty-nine] thirty-four.S. 4009 12 A. 3009 1 § 10. This act shall take effect immediately for new initial applica- 2 tions received on or after such effective date; provided, however, that 3 the amendments to paragraph 4 of subdivision (e) of section 24 of the 4 tax law made by section six of this act shall take effect on the same 5 date and in the same manner as section 6 of chapter 683 of the laws of 6 2019, as amended, takes effect. 7 PART E 8 Section 1. Section 1085 of the tax law is amended by adding a new 9 subsection (e-1) to read as follows: 10 (e-1) Waiver of addition for underpayment of estimated tax. No addi- 11 tion to tax shall be imposed under subsection (c) of this section with 12 respect to any underpayment to the extent the commissioner determines 13 that by reason of casualty, disaster or other unusual circumstances the 14 imposition of such addition to tax would be against equity and good 15 conscience. 16 § 2. This act shall take effect immediately. 17 PART F 18 Section 1. Subdivision 4 of section 484 of the economic development 19 law, as added by section 1 of part E of chapter 59 of the laws of 2022, 20 is amended to read as follows: 21 4. The business entity must submit its application by [March thirty-22first] September thirtieth, two thousand twenty-three. 23 § 2. This act shall take effect immediately. 24 PART G 25 Section 1. Article 6 of the social services law is amended by adding a 26 new title 1-A to read as follows: 27 TITLE 1-A 28 CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM 29 Section 394. Short title. 30 394-a. Definitions. 31 394-b. Eligibility criteria. 32 394-c. Application and approval process. 33 394-d. Child care creation and expansion tax credit. 34 394-e. Allocation of credit. 35 394-f. Powers and duties of the commissioner. 36 394-g. Maintenance of records. 37 § 394. Short title. This title shall be known and may be cited as the 38 "child care creation and expansion tax credit program act". 39 § 394-a. Definitions. For the purposes of this title: 40 1. "Certificate of tax credit" shall mean the document issued to a 41 business entity by the office after the office has verified that the 42 business entity has met all applicable eligibility criteria in this 43 title. The certificate shall specify the exact amount of the tax credit 44 under this title that a business entity may claim, pursuant to section 45 three hundred ninety-four-d of this title, and the service year. 46 2. "Child care program" shall mean a child day care for which a 47 license or registration to operate such program has been issued by the 48 office pursuant to section three hundred ninety of this article. 49 3. "Child care rate" shall mean the weekly child care subsidy market 50 rates, based on the eightieth percentile of the 2021-22 New York stateS. 4009 13 A. 3009 1 child care market rate survey, for infant and toddler care provided by a 2 licensed or registered child care program, as reflected in the 2022 3 child care market rate survey report published by the office in compli- 4 ance with section 98.45 of title forty-five of the code of federal regu- 5 lations. 6 4. "Child care seats" shall mean the maximum number of children to be 7 allowed on the premises of a child care program at any time that such 8 program is in operation as specified on the license or registration 9 issued for such program by the office. 10 5. "Creates child care" shall mean the making available of child care 11 seats in a child care program by a business entity, directly or through 12 a third-party, for employees of such business entity, where such child 13 care program was not available prior to April first, two thousand twen- 14 ty-three, provided that the costs imposed on such employees for such 15 child care program do not exceed forty percent of the child care rate. 16 6. "Commissioner" shall mean commissioner of the office of children 17 and family services. 18 7. "Expands child care" shall mean the increase in the number of child 19 care seats in a child care program made available by a business entity, 20 directly or through a third party, for employees of such business enti- 21 ty, provided that such increase requires a new or amended license or 22 registration issued by the office pursuant to section three hundred 23 ninety of this article on or after April first, two thousand twenty- 24 three, and, provided further, that the costs imposed on such employees 25 for such child care program do not exceed forty percent of the child 26 care rate. 27 8. "Occupied" shall mean, for each service year in which a child care 28 program is in operation, the average daily number of children in attend- 29 ance on the premises of such child care program. 30 9. "Office" shall mean the office of children and family services. 31 10. "Service year" shall mean the twelve-month period, or portion 32 thereof, commencing on January first and ending on December thirty- 33 first. 34 § 394-b. Eligibility criteria. 1. To be eligible for a tax credit 35 under the child care creation and expansion tax credit program, a busi- 36 ness entity must: 37 (a) be a business entity that is required to file a tax return pursu- 38 ant to article nine-A, twenty-two or thirty-three of the tax law; 39 (b) be a child care program, or contract with such child care program, 40 as defined in this title that is licensed or registered pursuant to 41 section three hundred ninety of this article; 42 (c) create or expand child care seats, directly or through a third 43 party, for the employees of such business entity on or after April 44 first, two thousand twenty-three and before January first, two thousand 45 twenty-five; 46 (d) operate a business location in New York state; 47 (e) be in substantial compliance with any child care licensing laws 48 and regulations related to the entity's business sector or other laws 49 and regulations as determined by the commissioner; and 50 (f) not owe past due state taxes or local property taxes unless the 51 business entity is making payments and complying with an approved bind- 52 ing payment agreement entered into with the taxing authority. 53 § 394-c. Application and approval process. 1. A business entity must 54 submit a complete application as prescribed by the commissioner by the 55 thirty-first of January after the end of the service year.S. 4009 14 A. 3009 1 2. The commissioner shall establish procedures for a business entity 2 to submit applications. As part of the application, each business entity 3 must: 4 (a) provide evidence in a form and manner prescribed by the commis- 5 sioner of their business eligibility; 6 (b) provide the license or registration issued to the business entity, 7 directly or through a third party, by the office to operate a child care 8 program indicating the number of child care seats created or, in the 9 case of a child care program that has experienced an expansion of child 10 care seats, the license or registration issued by the office demonstrat- 11 ing such expansion; 12 (c) provide evidence in a form and manner prescribed by the commis- 13 sioner establishing: 14 (i) the total number of child care seats that were occupied during the 15 service year; 16 (ii) of such total number of child care seats that were occupied, the 17 number of infant child care seats that were occupied and the number of 18 toddler child care seats that were occupied; 19 (iii) that, to the extent the business entity, directly or through a 20 third party, has expanded child care, the number of child care seats in 21 existence before such expansion and the number of such child care seats 22 that were occupied before such expansion; and 23 (iv) that the costs imposed on the business entity's employees for 24 such child care program do not exceed forty percent of the child care 25 rate. 26 (d) agree to allow the department of taxation and finance to share the 27 business entity's tax information relevant to the administration of this 28 title with the office. However, any information shared as a result of 29 this title shall not be available for disclosure or inspection under the 30 state freedom of information law; 31 (e) allow the office and its agents access to any and all books and 32 records the office may require to monitor compliance; and 33 (f) agree to provide any additional information required by the office 34 relevant to this title. 35 3. After reviewing a business entity's completed final application and 36 determining that the business entity meets the eligibility criteria as 37 set forth in this title, the office may issue to that business entity a 38 certificate of tax credit, which shall set forth the amount of the cred- 39 it that may be claimed and the service year. 40 § 394-d. Child care creation and expansion tax credit. Allowance of 41 credit. 1. A business entity in the child care creation and expansion 42 tax credit program that meets the eligibility requirements of section 43 three hundred ninety-four-b of this title may be eligible to claim a 44 credit for the portion of the service year in which the child care 45 program was in operation, equal to the sum of: (a) the product of the 46 number of infant child care seats that have been created or expanded and 47 twenty percent of the child care rate for such infant child care seats 48 and (b) the product of the number of toddler child care seats that have 49 been created or expanded and twenty percent of the child care rate for 50 such toddler child care seats; provided that such infant and toddler 51 child care seats are child care seats that are occupied. Notwithstand- 52 ing the preceding sentence, a credit shall not be allowed for more than 53 twenty-five child care seats that are occupied, and the amount of such 54 credit may be reduced as a result of an allocation of available funds, 55 as described in section three hundred ninety-four-e of this title.S. 4009 15 A. 3009 1 2. The credit shall be allowed as provided in section forty-eight, 2 subdivision fifty-nine of section two hundred ten-B, subsection (ooo) of 3 section six hundred six and subdivision (ee) of section fifteen hundred 4 eleven of the tax law. 5 § 394-e. Allocation of credit. The aggregate amount of tax credits 6 allowed under this title, subdivision fifty-nine of section two hundred 7 ten-B, subsection (ooo) of section six hundred six and subdivision (ee) 8 of section fifteen eleven of the tax law shall be twenty-five million 9 dollars each year during the period two thousand twenty-three and two 10 thousand twenty-four. Such aggregate amount of credits shall be allo- 11 cated by the office on a pro rata basis to each business entity that 12 demonstrates eligibility pursuant to section three hundred ninety-four-b 13 of this title. 14 § 394-f. Powers and duties of the commissioner. 1. The commissioner 15 may promulgate regulations establishing an application process and 16 eligibility criteria, which will be applied consistent with the purposes 17 of this title so as not to exceed the annual cap on tax credits set 18 forth in this title, that, notwithstanding any provisions to the contra- 19 ry in the state administrative procedure act, may be adopted on an emer- 20 gency basis. 21 2. The commissioner shall, in consultation with the department of 22 taxation and finance, develop a certificate of tax credit that shall be 23 issued by the commissioner to eligible businesses. Such certificate 24 shall contain such information as required by the department of taxation 25 and finance. 26 3. The commissioner shall solely determine the eligibility of any 27 business entity applying for entry into the program and shall remove any 28 business entity from the program for failing to meet any of the require- 29 ments set forth in section three hundred ninety-four-b of this title. 30 § 394-g. Maintenance of records. Each business entity participating in 31 the program shall keep all relevant records for the duration of their 32 participation in the program for at least three years. 33 § 2. The tax law is amended by adding a new section 48 to read as 34 follows: 35 § 48. Child care creation and expansion tax credit. (a) Allowance of 36 credit. A taxpayer subject to tax under article nine-A, twenty-two or 37 thirty-three of this chapter shall be allowed a credit against such tax, 38 pursuant to the provisions referenced in subdivision (f) of this 39 section. The amount of the credit is equal to the amount determined 40 pursuant to section three hundred ninety-four-d of the social services 41 law and shall be claimed in the taxable year that includes the last day 42 of the service year for which the credit is calculated. No cost or 43 expense paid or incurred by the taxpayer that is included as part of the 44 calculation of this credit shall be the basis of any other tax credit 45 allowed under this chapter. 46 (b) Eligibility. To be eligible for the child care creation and expan- 47 sion tax credit, the taxpayer shall have been issued a certificate of 48 tax credit by the office of children and family services pursuant to 49 section three hundred ninety-four-c of the social services law. A 50 taxpayer that is a partner in a partnership, member of a limited liabil- 51 ity company or shareholder in a subchapter S corporation that has 52 received a certificate of tax credit shall be allowed its pro rata share 53 of the credit earned by the partnership, limited liability company or 54 subchapter S corporation. 55 (c) Tax return requirement. The taxpayer shall be required to attach 56 to its tax return in the form prescribed by the commissioner, proof ofS. 4009 16 A. 3009 1 receipt of its certificate of tax credit issued by the commissioner of 2 the office of children and family services. 3 (d) Information sharing. Notwithstanding any provision of this chap- 4 ter, employees of the office of children and family services and the 5 department shall be allowed and are directed to share and exchange: 6 (1) information regarding the credit applied for, allowed or claimed 7 pursuant to this section and taxpayers that are applying for the credit 8 or that are claiming the credit; and 9 (2) information contained in or derived from credit claim forms 10 submitted to the department. Except as provided in paragraph one of this 11 subdivision, all information exchanged between the office of children 12 and family services and the department shall not be subject to disclo- 13 sure or inspection under the state's freedom of information law. 14 (e) Credit recapture. If a certificate of tax credit issued by the 15 office of children and family services under title 1-A of article six of 16 the social services law is revoked by such office, the amount of credit 17 described in this section and claimed by the taxpayer prior to that 18 revocation shall be added back to tax in the taxable year in which any 19 such revocation becomes final. 20 (f) Cross references. For application of the credit provided for in 21 this section, see the following provisions of this chapter: 22 (1) article 9-A: section 210-B, subdivision 59; 23 (2) article 22: section 606, subsection (ooo); 24 (3) article 33: section 1511, subdivision (ee). 25 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 26 sion 59 to read as follows: 27 59. Child care creation and expansion tax credit. (a) Allowance of 28 credit. A taxpayer shall be allowed a credit, to be computed as 29 provided in section forty-eight of this chapter, against the taxes 30 imposed by this article. 31 (b) Application of credit. The credit allowed under this subdivision 32 for the taxable year shall not reduce the tax due for such year to less 33 than the amount prescribed in paragraph (d) of subdivision one of 34 section two hundred ten of this article. However, if the amount of cred- 35 it allowed under this subdivision for the taxable year reduces the tax 36 to such amount or if the taxpayer otherwise pays tax based on the fixed 37 dollar minimum amount, any amount of credit thus not deductible in such 38 taxable year shall be treated as an overpayment of tax to be credited or 39 refunded in accordance with the provisions of section one thousand 40 eighty-six of this chapter. Provided, however, the provisions of 41 subsection (c) of section one thousand eighty-eight of this chapter 42 notwithstanding, no interest will be paid thereon. 43 § 4. Section 606 of the tax law is amended by adding a new subsection 44 (ooo) to read as follows: 45 (ooo) Child care creation and expansion tax credit. (1) Allowance of 46 credit. A taxpayer shall be allowed a credit, to be computed as provided 47 in section forty-eight of this chapter, against the tax imposed by this 48 article. 49 (2) Application of credit. If the amount of the credit allowed under 50 this subsection for the taxable year exceeds the taxpayer's tax for such 51 year, the excess shall be treated as an overpayment of tax to be credit- 52 ed or refunded in accordance with the provisions of section six hundred 53 eighty-six of this article, provided, however, that no interest will be 54 paid thereon. 55 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 56 of the tax law is amended by adding a new clause (l) to read as follows:S. 4009 17 A. 3009 1 (l) Child care creation and Amount of credit 2 expansion tax credit under under subdivision 59 3 subsection (ooo) of section two hundred 4 ten-B 5 § 6. Section 1511 of the tax law is amended by adding a new subdivi- 6 sion (ee) to read as follows: 7 (ee) Child care creation and expansion tax credit. (1) Allowance of 8 credit. A taxpayer shall be allowed a credit, to be computed as provided 9 in section forty-eight of this chapter, against the tax imposed by this 10 article. 11 (2) Application of credit. The credit allowed under this subdivision 12 shall not reduce the tax due for such year to be less than the minimum 13 fixed by paragraph four of subdivision (a) of section fifteen hundred 14 two or section fifteen hundred two-a of this article, whichever is 15 applicable. However, if the amount of the credit allowed under this 16 subdivision for any taxable year reduces the taxpayer's tax to such 17 amount, any amount of credit thus not deductible will be treated as an 18 overpayment of tax to be credited or refunded in accordance with the 19 provisions of section one thousand eighty-six of this chapter. 20 Provided, however, the provisions of subsection (c) of one thousand 21 eighty-eight of this chapter notwithstanding, no interest shall be paid 22 thereon. 23 § 7. This act shall take effect immediately. 24 PART H 25 Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax 26 law, as amended by chapter 260 of the laws of 2015, is amended to read 27 as follows: 28 5. Any local law adopted pursuant to this subdivision may provide for 29 a credit as authorized by this subdivision for a maximum of three 30 consecutive calendar years, provided, however, that any such credit may 31 not apply to taxable years beginning before January first, two thousand 32 [ten] twenty-three or beginning on or after January first, two thousand 33 [nineteen] twenty-six. 34 § 2. This act shall take effect immediately. 35 PART I 36 Section 1. This Part enacts into law major components of legislation 37 relating to extending various taxes and tax credits. Each component is 38 wholly contained within a Subpart identified as Subparts A through E. 39 The effective date for each particular provision contained within such 40 Subpart is set forth in the last section of such Subpart. Any provision 41 in any section contained within a Subpart, including the effective date 42 of the Subpart, which makes reference to a section "of this act", when 43 used in connection with that particular component, shall be deemed to 44 mean and refer to the corresponding section of the Subpart in which it 45 is found. Section three of this Part sets forth the general effective 46 date of this Part. 47 SUBPART A 48 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of 49 section 210 of the tax law, as amended by section 1 of part HHH of chap- 50 ter 59 of the laws of 2021, is amended to read as follows:S. 4009 18 A. 3009 1 For taxable years beginning before January first, two thousand 2 sixteen, the amount prescribed by this paragraph shall be computed at 3 the rate of seven and one-tenth percent of the taxpayer's business 4 income base. For taxable years beginning on or after January first, two 5 thousand sixteen, the amount prescribed by this paragraph shall be six 6 and one-half percent of the taxpayer's business income base. For taxable 7 years beginning on or after January first, two thousand twenty-one and 8 before January first, two thousand [twenty-four] twenty-seven for any 9 taxpayer with a business income base for the taxable year of more than 10 five million dollars, the amount prescribed by this paragraph shall be 11 seven and one-quarter percent of the taxpayer's business income base. 12 The taxpayer's business income base shall mean the portion of the 13 taxpayer's business income apportioned within the state as hereinafter 14 provided. However, in the case of a small business taxpayer, as defined 15 in paragraph (f) of this subdivision, the amount prescribed by this 16 paragraph shall be computed pursuant to subparagraph (iv) of this para- 17 graph and in the case of a manufacturer, as defined in subparagraph (vi) 18 of this paragraph, the amount prescribed by this paragraph shall be 19 computed pursuant to subparagraph (vi) of this paragraph, and, in the 20 case of a qualified emerging technology company, as defined in subpara- 21 graph (vii) of this paragraph, the amount prescribed by this paragraph 22 shall be computed pursuant to subparagraph (vii) of this paragraph. 23 § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 24 of the tax law, as amended by section 2 of part HHH of chapter 59 of the 25 laws of 2021, is amended to read as follows: 26 (1) (i) The amount prescribed by this paragraph shall be computed 27 at .15 percent for each dollar of the taxpayer's total business capital, 28 or the portion thereof apportioned within the state as hereinafter 29 provided for taxable years beginning before January first, two thousand 30 sixteen. However, in the case of a cooperative housing corporation as 31 defined in the internal revenue code, the applicable rate shall be .04 32 percent until taxable years beginning on or after January first, two 33 thousand twenty and zero percent for taxable years beginning on or after 34 January first, two thousand twenty-one. The rate of tax for subsequent 35 tax years shall be as follows: .125 percent for taxable years beginning 36 on or after January first, two thousand sixteen and before January 37 first, two thousand seventeen; .100 percent for taxable years beginning 38 on or after January first, two thousand seventeen and before January 39 first, two thousand eighteen; .075 percent for taxable years beginning 40 on or after January first, two thousand eighteen and before January 41 first, two thousand nineteen; .050 percent for taxable years beginning 42 on or after January first, two thousand nineteen and before January 43 first, two thousand twenty; .025 percent for taxable years beginning on 44 or after January first, two thousand twenty and before January first, 45 two thousand twenty-one; and .1875 percent for years beginning on or 46 after January first, two thousand twenty-one and before January first, 47 two thousand [twenty-four] twenty-seven, and zero percent for taxable 48 years beginning on or after January first, two thousand [twenty-four] 49 twenty-seven. Provided however, for taxable years beginning on or after 50 January first, two thousand twenty-one, the rate of tax for a small 51 business as defined in paragraph (f) of this subdivision shall be zero 52 percent. The rate of tax for a qualified New York manufacturer shall be 53 .132 percent for taxable years beginning on or after January first, two 54 thousand fifteen and before January first, two thousand sixteen, .106 55 percent for taxable years beginning on or after January first, two thou- 56 sand sixteen and before January first, two thousand seventeen, .085S. 4009 19 A. 3009 1 percent for taxable years beginning on or after January first, two thou- 2 sand seventeen and before January first, two thousand eighteen; .056 3 percent for taxable years beginning on or after January first, two thou- 4 sand eighteen and before January first, two thousand nineteen; .038 5 percent for taxable years beginning on or after January first, two thou- 6 sand nineteen and before January first, two thousand twenty; .019 7 percent for taxable years beginning on or after January first, two thou- 8 sand twenty and before January first, two thousand twenty-one; and zero 9 percent for years beginning on or after January first, two thousand 10 twenty-one. (ii) In no event shall the amount prescribed by this para- 11 graph exceed three hundred fifty thousand dollars for qualified New York 12 manufacturers and for all other taxpayers five million dollars. 13 § 3. This act shall take effect immediately. 14 SUBPART B 15 Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of 16 section 606 of the tax law, as amended by section 1 of part CCC of chap- 17 ter 59 of the laws of 2021, is amended to read as follows: 18 (A) For taxable years beginning on or after January first, two thou- 19 sand ten and before January first, two thousand [twenty-five] thirty, a 20 taxpayer shall be allowed a credit as hereinafter provided, against the 21 tax imposed by this article, in an amount equal to one hundred percent 22 of the amount of credit allowed the taxpayer with respect to a certified 23 historic structure, and one hundred fifty percent of the amount of cred- 24 it allowed the taxpayer with respect to a certified historic structure 25 that is a small project, under internal revenue code section 47(c)(3), 26 determined without regard to ratably allocating the credit over a five 27 year period as required by subsection (a) of such section 47, with 28 respect to a certified historic structure located within the state. 29 Provided, however, the credit shall not exceed five million dollars. For 30 taxable years beginning on or after January first, two thousand [twen-31ty-five] thirty, a taxpayer shall be allowed a credit as hereinafter 32 provided, against the tax imposed by this article, in an amount equal to 33 thirty percent of the amount of credit allowed the taxpayer with respect 34 to a certified historic structure under internal revenue code section 35 47(c)(3), determined without regard to ratably allocating the credit 36 over a five year period as required by subsection (a) of such section 37 47, with respect to a certified historic structure located within the 38 state; provided, however, the credit shall not exceed one hundred thou- 39 sand dollars. 40 § 2. Subparagraph (i) of paragraph (a) of subdivision 26 of section 41 210-B of the tax law, as amended by section 2 of part CCC of chapter 59 42 of the laws of 2021, is amended to read as follows: 43 (i) For taxable years beginning on or after January first, two thou- 44 sand ten, and before January first, two thousand [twenty-five] thirty, a 45 taxpayer shall be allowed a credit as hereinafter provided, against the 46 tax imposed by this article, in an amount equal to one hundred percent 47 of the amount of credit allowed the taxpayer for the same taxable year 48 with respect to a certified historic structure, and one hundred fifty 49 percent of the amount of credit allowed the taxpayer with respect to a 50 certified historic structure that is a small project, under internal 51 revenue code section 47(c)(3), determined without regard to ratably 52 allocating the credit over a five year period as required by subsection 53 (a) of such section 47, with respect to a certified historic structureS. 4009 20 A. 3009 1 located within the state. Provided, however, the credit shall not exceed 2 five million dollars. 3 § 3. Clause (B) of subparagraph (ii) of paragraph (a) of subdivision 4 26 of section 210-B of the tax law, as added by section 17 of part A of 5 chapter 59 of the laws of 2014, is redesignated as paragraph (a-1) and 6 is amended to read as follows: 7 (a-1) If the taxpayer is a partner in a partnership or a shareholder 8 in a New York S corporation, then the credit caps imposed in [subpara-9graph (A)] paragraph (a) of this [paragraph] subdivision shall be 10 applied at the entity level, so that the aggregate credit allowed to all 11 the partners or shareholders of each such entity in the taxable year 12 does not exceed the credit cap that is applicable in that taxable year. 13 § 4. Subparagraph (ii) of paragraph (a) of subdivision 26 of section 14 210-B of the tax law, as amended by section 2 of part RR of chapter 59 15 of the laws of 2018, is amended to read as follows: 16 (ii) For taxable years beginning on or after January first, two thou- 17 sand [twenty-five] thirty, a taxpayer shall be allowed a credit as here- 18 inafter provided, against the tax imposed by this article, in an amount 19 equal to thirty percent of the amount of credit allowed the taxpayer for 20 the same taxable year determined without regard to ratably allocating 21 the credit over a five year period as required by subsection (a) of 22 section 47 of the internal revenue code, with respect to a certified 23 historic structure under subsection (c)(3) of section 47 of the internal 24 revenue code with respect to a certified historic structure located 25 within the state. Provided, however, the credit shall not exceed one 26 hundred thousand dollars. 27 § 5. Subparagraph (A) of paragraph 1 of subdivision (y) of section 28 1511 of the tax law, as amended by section 3 of part CCC of chapter 59 29 of the laws of 2021, is amended to read as follows: 30 (A) For taxable years beginning on or after January first, two thou- 31 sand ten and before January first, two thousand [twenty-five] thirty, a 32 taxpayer shall be allowed a credit as hereinafter provided, against the 33 tax imposed by this article, in an amount equal to one hundred percent 34 of the amount of credit allowed the taxpayer with respect to a certified 35 historic structure, and one hundred fifty percent of the amount of cred- 36 it allowed the taxpayer with respect to a certified historic structure 37 that is a small project, under internal revenue code section 47(c)(3), 38 determined without regard to ratably allocating the credit over a five 39 year period as required by subsection (a) of such section 47, with 40 respect to a certified historic structure located within the state. 41 Provided, however, the credit shall not exceed five million dollars. For 42 taxable years beginning on or after January first, two thousand [twen-43ty-five] thirty, a taxpayer shall be allowed a credit as hereinafter 44 provided, against the tax imposed by this article, in an amount equal to 45 thirty percent of the amount of credit allowed the taxpayer with respect 46 to a certified historic structure under internal revenue code section 47 47(c)(3), determined without regard to ratably allocating the credit 48 over a five year period as required by subsection (a) of such section 47 49 with respect to a certified historic structure located within the state. 50 Provided, however, the credit shall not exceed one hundred thousand 51 dollars. 52 § 6. This act shall take effect immediately. 53 SUBPART CS. 4009 21 A. 3009 1 Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax 2 law, as amended by section 1 of part AAA of chapter 59 of the laws of 3 2019, is amended to read as follows: 4 (1) A taxpayer which is a qualified commercial production company, or 5 which is a sole proprietor of a qualified commercial production company, 6 and which is subject to tax under article nine-A or twenty-two of this 7 chapter, shall be allowed a credit against such tax, pursuant to the 8 provisions referenced in subdivision (c) of this section, to be computed 9 as provided in this section. Provided, however, to be eligible for such 10 credit, at least seventy-five percent of the production costs (excluding 11 post production costs) paid or incurred directly and predominantly in 12 the actual filming or recording of the qualified commercial must be 13 costs incurred in New York state. The tax credit allowed pursuant to 14 this section shall apply to taxable years beginning before January 15 first, two thousand [twenty-four] twenty-nine. 16 § 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, 17 as amended by chapter 518 of the laws of 2018, is amended to read as 18 follows: 19 (c) Expiration of credit. The credit allowed under this subdivision 20 shall not be applicable to taxable years beginning on or after January 21 first, two thousand [twenty-four] twenty-nine. 22 § 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as 23 amended by chapter 518 of the laws of 2018, is amended to read as 24 follows: 25 (1) Allowance of credit. A taxpayer that is eligible pursuant to the 26 provisions of section twenty-eight of this chapter shall be allowed a 27 credit to be computed as provided in such section against the tax 28 imposed by this article. The tax credit allowed pursuant to this section 29 shall apply to taxable years beginning before January first, two thou- 30 sand [twenty-four] twenty-nine. 31 § 4. This act shall take effect immediately. 32 SUBPART D 33 Section 1. Paragraph 1 of subdivision (a) of section 47 of the tax 34 law, as added by section 1 of part I of chapter 59 of the laws of 2022, 35 is amended to read as follows: 36 (1) Allowance of credit. A taxpayer that meets the eligibility 37 requirements of subdivision (b) of this section and is subject to tax 38 under article nine-A or twenty-two of this chapter may be eligible to 39 claim a grade no. 6 heating oil conversion tax credit in the taxable 40 year the conversion is complete. The credit shall be equal to fifty 41 percent of the conversion costs for all of the taxpayer's buildings 42 located at a facility regulated pursuant to section 19-0302 or title ten 43 of article seventeen of the environmental conservation law, paid by such 44 taxpayer on or after January first, two thousand twenty-two and before 45 [July] January first, two thousand [twenty-three] twenty-four. The 46 credit cannot exceed five hundred thousand dollars per facility. 47 § 2. This act shall take effect immediately. 48 SUBPART E 49 Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws 50 of 2021 amending the tax law and the state finance law relating to 51 establishing the New York city musical and theatrical production tax 52 credit and establishing the New York state council on the arts culturalS. 4009 22 A. 3009 1 program fund, as amended by section 7 of part F of chapter 59 of the 2 laws of 2022, is amended to read as follows: 3 § 6. This act shall take effect immediately; provided however, that 4 [section] sections one, two, three and four of this act shall apply to 5 taxable years beginning on or after January 1, 2021, and before January 6 1, [2024] 2026 and shall expire and be deemed repealed January 1, [2024] 7 2026; provided further, however that the obligations under paragraph 3 8 of subdivision (g) of section 24-c of the tax law, as added by section 9 one of this act, shall remain in effect until December 31, [2025] 2027. 10 § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as 11 amended by section 1 of part F of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (2) The amount of the credit shall be the product (or pro rata share 14 of the product, in the case of a member of a partnership) of twenty-five 15 percent and the sum of the qualified production expenditures paid for 16 during the qualified New York city musical and theatrical production's 17 credit period. Provided however that the amount of the credit cannot 18 exceed three million dollars per qualified New York city musical and 19 theatrical production for productions whose first performance is prior 20 to January first, two thousand [twenty-three] twenty-five. [For21productions whose first performance is on or after January first, two22thousand twenty-three, such cap shall decrease to one million five23hundred thousand dollars per qualified New York city musical and theat-24rical production unless the New York city tourism economy has not suffi-25ciently recovered, as determined by the department of economic develop-26ment in consultation with the division of the budget. In determining27whether the New York city tourism economy has sufficiently recovered,28the department of economic development will perform an analysis of key29New York city economic indicators which shall include, but not be limit-30ed to, hotel occupancy rates and travel metrics. The department of31economic development's analysis shall also be informed by the status of32any remaining COVID-19 restrictions affecting New York city musical and33theatrical productions.] In no event shall a qualified New York city 34 musical and theatrical production be eligible for more than one credit 35 under this program. 36 § 3. Subparagraph (i) of paragraph 5 of subdivision (b) of section 37 24-c of the tax law, as amended by section 2 of part F of chapter 59 of 38 the laws of 2022, is amended to read as follows: 39 (i) "The credit period of a qualified New York city musical and theat- 40 rical production company" is the period starting on the production start 41 date and ending on the earlier of the date the qualified musical and 42 theatrical production has expended sufficient qualified production 43 expenditures to reach its credit cap, September thirtieth, two thousand 44 [twenty-three] twenty-five or the date the qualified musical and theat- 45 rical production closes. 46 § 4. Subdivision (c) of section 24-c of the tax law, as added by 47 section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is 48 amended to read as follows: 49 (c) The credit shall be allowed for the taxable year beginning on or 50 after January first, two thousand twenty-one but before January first, 51 two thousand [twenty-four] twenty-six. A qualified New York city 52 musical and theatrical production company shall claim the credit in the 53 year in which its credit period ends. 54 § 5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax 55 law, paragraph 1 as amended by section 3 of part F of chapter 59 of theS. 4009 23 A. 3009 1 laws of 2022, and paragraph 2 as amended by section 4 of part F of chap- 2 ter 59 of the laws of 2022, are amended to read as follows: 3 (1) The aggregate amount of tax credits allowed under this section, 4 subdivision fifty-seven of section two hundred ten-B and subsection 5 (mmm) of section six hundred six of this chapter shall be [two] three 6 hundred million dollars. Such aggregate amount of credits shall be allo- 7 cated by the department of economic development among taxpayers based on 8 the date of first performance of the qualified musical and theatrical 9 production. 10 (2) The commissioner of economic development, after consulting with 11 the commissioner, shall promulgate regulations to establish procedures 12 for the allocation of tax credits as required by this section. Such 13 rules and regulations shall include provisions describing the applica- 14 tion process, the due dates for such applications, the standards that 15 will be used to evaluate the applications, the documentation that will 16 be provided by applicants to substantiate to the department the amount 17 of qualified production expenditures of such applicants, and such other 18 provisions as deemed necessary and appropriate. Notwithstanding any 19 other provisions to the contrary in the state administrative procedure 20 act, such rules and regulations may be adopted on an emergency basis. In 21 no event shall a qualified New York city musical and theatrical 22 production submit an application for this program after June thirtieth, 23 two thousand [twenty-three] twenty-five. 24 § 6. This act shall take effect immediately; provided that the amend- 25 ments to section 24-c of the tax law made by sections two, three, four 26 and five of this act shall not affect the repeal of such section and 27 shall be deemed repealed therewith. 28 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 29 sion, section or part of this act shall be adjudged by any court of 30 competent jurisdiction to be invalid, such judgment shall not affect, 31 impair, or invalidate the remainder thereof, but shall be confined in 32 its operation to the clause, sentence, paragraph, subdivision, section 33 or part thereof directly involved in the controversy in which such judg- 34 ment shall have been rendered. It is hereby declared to be the intent of 35 the legislature that this act would have been enacted even if such 36 invalid provisions had not been included herein. 37 § 3. This act shall take effect immediately provided, however, that 38 the applicable effective dates of Subparts A through E of this act shall 39 be as specifically set forth in the last section of such Subparts. 40 PART J 41 Section 1. This act enacts into law major components of legislation 42 relating to taxation. Each component is wholly contained within a 43 Subpart identified as Subparts A through C. The effective date for each 44 particular provision contained within such Subpart is set forth in the 45 last section of such Subpart. Any provision in any section contained 46 within a Subpart, including the effective date of the Subpart, which 47 makes reference to a section "of this act", when used in connection with 48 that particular component, shall be deemed to mean and refer to the 49 corresponding section of the Subpart in which it is found. Section three 50 of this act sets forth the general effective date of this act. 51 SUBPART AS. 4009 24 A. 3009 1 Section 1. Paragraph (b) of subdivision 38 of section 210-B of the tax 2 law, as amended by section 2 of part L of chapter 59 of the laws of 3 2022, is amended to read as follows: 4 (b) Definitions. The term "accessible by individuals with disabili- 5 ties" shall, for the purposes of this subdivision, refer to a vehicle 6 that complies with federal regulations promulgated pursuant to the Amer- 7 icans with Disabilities Act applicable to vans under twenty-two feet in 8 length, by the federal Department of Transportation, in Code of Federal 9 Regulations, title 49, parts 37 and 38[, and by the federal Architecture10and Transportation Barriers Compliance Board, in Code of Federal Regu-11lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe- 12 ty Standards, Code of Federal Regulations, title 49, part [57] 571. The 13 term "electric vehicle" shall, for the purposes of this subdivision, 14 have the same meaning as in section sixty-six-s of the public service 15 law. 16 § 2. Paragraph 2 of subsection (tt) of section 606 of the tax law, as 17 amended by section 4 of part L of chapter 59 of the laws of 2022, is 18 amended to read as follows: 19 (2) Definitions. The term "accessible by individuals with disabili- 20 ties" shall, for the purposes of this subsection, refer to a vehicle 21 that complies with federal regulations promulgated pursuant to the Amer- 22 icans with Disabilities Act applicable to vans under twenty-two feet in 23 length, by the federal Department of Transportation, in Code of Federal 24 Regulations, title 49, parts 37 and 38[, and by the federal Architecture25and Transportation Barriers Compliance Board, in Code of Federal Regu-26lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe- 27 ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571. 28 The term "electric vehicle" shall, for the purposes of this subsection, 29 have the same meaning as in section sixty-six-s of the public service 30 law. 31 § 3. This act shall take effect immediately and shall apply to taxable 32 years beginning on or after January 1, 2023. 33 SUBPART B 34 Section 1. Paragraph 2 of subdivision (b) of section 21 of the tax 35 law, as amended by section 7 of part LL of chapter 58 of the laws of 36 2022, is amended to read as follows: 37 (2) Site preparation costs. The term "site preparation costs" shall 38 mean all amounts properly chargeable to a capital account, which are 39 paid or incurred which are necessary to implement a site's investi- 40 gation, remediation, or qualification for a certificate of completion, 41 and shall include costs of: excavation; demolition; activities undertak- 42 en under the oversight of the department of labor or in accordance with 43 standards established by the department of health to remediate and 44 dispose of regulated materials including asbestos, lead or polychlori- 45 nated biphenyls; environmental consulting; engineering; legal costs; 46 transportation, disposal, treatment or containment of contaminated soil; 47 remediation measures taken to address contaminated soil vapor; cover 48 systems consistent with applicable regulations; physical support of 49 excavation; dewatering and other work to facilitate or enable remedi- 50 ation activities; sheeting, shoring, and other engineering controls 51 required to prevent off-site migration of contamination from the quali- 52 fied site or migrating onto the qualified site; and the costs of fenc- 53 ing, temporary electric wiring, scaffolding, and security facilities 54 until such time as the certificate of completion has been issued. SiteS. 4009 25 A. 3009 1 preparation shall include all costs paid or incurred within sixty months 2 after the last day of the tax year in which the certificate of 3 completion is issued that are necessary for compliance with the certif- 4 icate of completion or subsequent modifications thereof, or the remedial 5 program defined in such certificate of completion including but not 6 limited to institutional controls, engineering controls, an approved 7 site management plan, and an environmental easement with respect to the 8 qualified site; provided, however, with respect to any qualified site 9 for which [the department of environmental conservation has issued a10notice to the taxpayer on or after July first, two thousand fifteen but11on or before June twenty-fourth, two thousand twenty-one that its12request for participation has been accepted under subdivision six of13section 27-1407 of the environmental conservation law] a certificate of 14 completion was issued on or after July first, two thousand fifteen but 15 on or before June twenty-fourth, two thousand twenty-one, site prepara- 16 tion shall include all costs paid or incurred within eighty-four months 17 after the last day of the tax year in which the certificate of 18 completion is issued that are necessary for compliance with the certif- 19 icate of completion or subsequent modifications thereof, or the remedial 20 program defined in such certificate of completion including but not 21 limited to institutional controls, engineering controls, an approved 22 site management plan, and an environmental easement with respect to the 23 qualified site. Site preparation cost shall not include the costs of 24 foundation systems that exceed the cover system requirements in the 25 regulations applicable to the qualified site. 26 § 2. This act shall take effect immediately and shall be deemed to 27 have been in effect on and after April 9, 2022. 28 SUBPART C 29 Section 1. Paragraphs 1, 2 and 3 of subsection (h) of section 860 of 30 the tax law, paragraph 1 as added by section 1 of part C of chapter 59 31 of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added 32 by section 2 of subpart A of part MM of chapter 59 of the laws of 2022, 33 are amended to read as follows: 34 (1) In the case of an electing partnership, the sum of (i) all items 35 of income, gain, loss, or deduction derived from or connected with New 36 York sources to the extent they are included in the taxable income of a 37 nonresident partner subject to tax under article twenty-two, under para- 38 graph one of subsection (a) of section six hundred thirty-two of this 39 chapter; [and] (ii) all items of income, gain, loss, or deduction to the 40 extent they are included in the taxable income of a resident partner 41 subject to tax under article twenty-two of this chapter; and (iii) all 42 pass-through entity taxes including taxes paid under this article to New 43 York, taxes paid under article twenty-four-B of this chapter to the city 44 of New York, and taxes paid to other jurisdictions that are substantial- 45 ly similar to the taxes paid under this article, to the extent that, for 46 federal income tax purposes, the taxes are paid and deducted in the 47 taxable year, and are included in the taxable income of the partners 48 subject to tax under article twenty-two of this chapter for the taxable 49 year. 50 (2) In the case of an electing standard S corporation, the sum of (i) 51 all items of income, gain, loss, or deduction derived from or connected 52 with New York sources to the extent they would be included under para- 53 graph two of subsection (a) of section six hundred thirty-two of this 54 chapter in the taxable income of a shareholder subject to tax underS. 4009 26 A. 3009 1 article twenty-two of this chapter; and (ii) all pass-through entity 2 taxes including taxes paid under this article to New York, taxes paid 3 under article twenty-four-B of this chapter to the city of New York, and 4 taxes paid to other jurisdictions that are substantially similar to the 5 taxes paid under this article, to the extent that, for federal income 6 tax purposes, the taxes are paid and deducted in the taxable year, and 7 are included in the taxable income of the shareholders subject to tax 8 under article twenty-two of this chapter for the taxable year. 9 (3) In the case of an electing resident S corporation, the sum of (i) 10 all items of income, gain, loss, or deduction to the extent they are 11 included in the taxable income of a shareholder subject to tax under 12 article twenty-two of this chapter; and (ii) all pass-through entity 13 taxes including taxes paid under this article to New York, taxes paid 14 under article twenty-four-B of this chapter to the city of New York, and 15 taxes paid to other jurisdictions that are substantially similar to 16 taxes paid under this article, to the extent that, for federal income 17 tax purposes, the taxes are paid and deducted in the taxable year, and 18 are included in the taxable income of the shareholders subject to tax 19 under article twenty-two of this chapter for the taxable year. 20 § 2. Subsection (c) of section 861 of the tax law, as amended by 21 section 3 of subpart A of part MM of chapter 59 of the laws of 2022, is 22 amended to read as follows: 23 (c) The annual election must be made [by] on or before the due date of 24 the first estimated payment under section eight hundred sixty-four of 25 this article and will take effect for the current taxable year. Only one 26 election may be made during each calendar year. An election made under 27 this section is irrevocable [as of] after the due date. 28 § 3. Paragraphs 1 and 2 of subsection (b) of section 867 of the tax 29 law, as added by section 1 of subpart B of part MM of chapter 59 of the 30 laws of 2022, are amended to read as follows: 31 (1) In the case of an electing city partnership, the sum of (i) all 32 items of income, gain, loss, or deduction to the extent they are 33 included in the city taxable income of a partner or member of the elect- 34 ing city partnership who is a city taxpayer; and (ii) all pass-through 35 entity taxes including taxes paid under article twenty-four-A of this 36 chapter to New York, taxes paid under this article to the city of New 37 York, and taxes paid to other jurisdictions that are substantially simi- 38 lar to taxes paid under article twenty-four-A of this chapter, to the 39 extent that, for federal income tax purposes, the taxes were paid and 40 deducted in the taxable year, and they are included in the taxable 41 income of the partners subject to tax under article twenty-two of this 42 chapter for the taxable year. 43 (2) In the case of an electing city resident S corporation, the sum of 44 (i) all items of income, gain, loss, or deduction to the extent they 45 would be included in the city taxable income of a shareholder of the 46 electing city resident S corporation who is a city taxpayer; and (ii) 47 all pass-through entity taxes including taxes paid under article twen- 48 ty-four-A of this chapter to New York, taxes paid under this article to 49 the city of New York, and taxes paid to other jurisdictions that are 50 substantially similar to taxes paid under article twenty-four-A of this 51 chapter, to the extent that, for federal income tax purposes, the taxes 52 were paid and deducted in the taxable year, and they are included in the 53 taxable income of the shareholders subject to tax under article twenty- 54 two of this chapter for the taxable year.S. 4009 27 A. 3009 1 § 4. Subsection (e) of section 867 of the tax law, as added by section 2 1 of subpart B of part MM of chapter 59 of the laws of 2022, is amended 3 to read as follows: 4 (e) City taxpayer. A city taxpayer means [a city resident individual5subject to the tax imposed pursuant to the authority of article thirty6of this chapter]: 7 (1) a city resident individual, as defined in subsection (a) of 8 section thirteen hundred five of this chapter; and 9 (2) a city resident trust or estate, as defined in subsection (c) of 10 section thirteen hundred five of this chapter. 11 § 5. Subsection (i) of section 867 of the tax law, as added by section 12 1 of subpart B of part MM of chapter 59 of the laws of 2022, is amended 13 to read as follows: 14 (i) Eligible city partnership. Eligible city partnership means any 15 partnership as provided for in section 7701(a)(2) of the Internal Reven- 16 ue Code that has a filing requirement under paragraph one of subsection 17 (c) of section six hundred fifty-eight of this chapter other than a 18 publicly traded partnership as defined in section 7704 of the Internal 19 Revenue Code, where at least one partner or member is a city [resident20individual] taxpayer. An eligible city partnership includes any entity, 21 including a limited liability company, treated as a partnership for 22 federal income tax purposes that otherwise meets the requirements of 23 this subsection. 24 § 6. Subsection (j) of section 867 of the tax law, as added by section 25 1 of subpart B of part MM of chapter 59 of the laws of 2022, is amended 26 to read as follows: 27 (j) Eligible city resident S corporation. Eligible city resident S 28 corporation means any New York S corporation as defined pursuant to 29 subdivision one-A of section two hundred eight of this chapter that is 30 subject to tax under section two hundred nine of this chapter that has 31 only city [resident individual] taxpayer shareholders. An eligible city 32 resident S corporation includes any entity, including a limited liabil- 33 ity company, treated as an S corporation for federal income tax purposes 34 that otherwise meets the requirements of this subsection. 35 § 7. Subsection (c) of section 868 of the tax law, as added by section 36 1 of subpart B of part MM of chapter 59 of the laws of 2022, is amended 37 to read as follows: 38 (c) The annual election to be taxed pursuant to this article must be 39 made [by] on or before the due date of the first estimated payment under 40 section eight hundred sixty-four of this chapter and will take effect 41 for the current taxable year. Only one election to be taxed pursuant to 42 this article may be made during each calendar year. An election made 43 under this section is irrevocable [as of] after such due date. To the 44 extent an election made under section eight hundred sixty-one of this 45 chapter is revoked or otherwise invalidated an election made under this 46 section is automatically invalidated. 47 § 8. This act shall take effect immediately, provided, however, that: 48 (i) sections one and two of this act shall be deemed to have been in 49 full force and effect on and after the effective date of part C of chap- 50 ter 59 of the laws of 2021; (ii) sections three and seven of this act 51 shall be deemed to have been in full force and effect on and after the 52 effective date of section 1 of subpart B of part MM of chapter 59 of the 53 laws of 2022; and (iii) sections four, five and six of this act shall 54 apply to taxable years beginning on or after January 1, 2023. 55 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 56 sion, section or part of this act shall be adjudged by any court ofS. 4009 28 A. 3009 1 competent jurisdiction to be invalid, such judgment shall not affect, 2 impair, or invalidate the remainder thereof, but shall be confined in 3 its operation to the clause, sentence, paragraph, subdivision, section 4 or part thereof directly involved in the controversy in which such judg- 5 ment shall have been rendered. It is hereby declared to be the intent of 6 the legislature that this act would have been enacted even if such 7 invalid provisions had not been included herein. 8 § 3. This act shall take effect immediately; provided, however, that 9 the applicable effective dates of Subparts A through C of this act shall 10 be as specifically set forth in the last section of such Subparts. 11 PART K 12 Section 1. Paragraphs (a) and (d) of subdivision 1 of section 467 of 13 the real property tax law, as amended by section 1 of part B of chapter 14 686 of the laws of 2022, are amended to read as follows: 15 (a) Real property owned by one or more persons, each of whom is 16 sixty-five years of age or over, or real property owned by [husband and17wife] a married couple or by siblings, one of whom is sixty-five years 18 of age or over, or real property owned by one or more persons, some of 19 whom qualify under this section and the others of whom qualify under 20 section four hundred fifty-nine-c of this title, shall be exempt from 21 payments in lieu of taxes (PILOT) to the battery park city authority or 22 from taxation by any municipal corporation in which located to the 23 extent of fifty per centum of the assessed valuation thereof, provided 24 the governing board of such municipality, after public hearing, adopts a 25 local law, ordinance or resolution providing therefor. For the purposes 26 of this section, [sibling shall mean a brother or a sister, whether27related] the term "sibling" shall include persons whose relationship as 28 siblings has been established through either half blood, whole blood or 29 adoption. 30 (d) The real property tax or PILOT exemption on real property owned by 31 [husband and wife] a married couple, one of whom is sixty-five years of 32 age or over, once granted, shall not be rescinded by any municipal 33 corporation solely because of the death of the older spouse so long as 34 the surviving spouse is at least sixty-two years of age. 35 § 2. Subdivision 3 of section 467 of the real property tax law, as 36 amended by section 1 of part B of chapter 686 of the laws of 2022, para- 37 graph (a) as separately amended by chapter 488 of the laws of 2022, is 38 amended to read as follows: 39 3. No exemption shall be granted: 40 (a)(i) if the income of the owner or the combined income of the owners 41 of the property for the applicable income tax year [immediately preced-42ing the date of making application for exemption] exceeds the sum of 43 three thousand dollars, or such other sum not less than three thousand 44 dollars nor more than [twenty-six thousand dollars beginning July first,45two thousand six, twenty-seven thousand dollars beginning July first,46two thousand seven, twenty-eight thousand dollars beginning July first,47two thousand eight, twenty-nine thousand dollars beginning July first,48two thousand nine, fifty thousand dollars beginning July first, two49thousand twenty-two, and in a city with a population of one million or50more fifty thousand dollars beginning July first, two thousand seven-51teen,] fifty thousand dollars, as may be provided by the local law, 52 ordinance or resolution adopted pursuant to this section. 53 (ii) Where the taxable status date is on or before April fourteenth, 54 the applicable income tax year shall [mean] be the twelve-month periodS. 4009 29 A. 3009 1 for which the owner or owners filed a federal personal income tax return 2 for the year before the income tax year immediately preceding the date 3 of application and where the taxable status date is on or after April 4 fifteenth, the applicable income tax year shall [mean] be the twelve- 5 month period for which the owner or owners filed a federal personal 6 income tax return for the income tax year immediately preceding the date 7 of application. 8 (iii) Where title is vested in [either the husband or the wife, their] 9 a married person, the combined income of such person and such person's 10 spouse may not exceed such sum, except where [the husband or wife, or11ex-husband or ex-wife] one spouse or ex-spouse is absent from the prop- 12 erty as provided in subparagraph (ii) of paragraph (d) of this subdivi- 13 sion, then only the income of the spouse or ex-spouse residing on the 14 property shall be considered and may not exceed such sum. [Such income15shall include social security and retirement benefits, interest, divi-16dends, total gain from the sale or exchange of a capital asset which may17be offset by a loss from the sale or exchange of a capital asset in the18same income tax year, net rental income, salary or earnings, and net19income from self-employment, but shall not include a return of capital,20gifts, inheritances, payments made to individuals because of their21status as victims of Nazi persecution, as defined in P.L. 103-286 or22monies earned through employment in the federal foster grandparent23program and any such income shall be offset by all medical and24prescription drug expenses actually paid which were not reimbursed or25paid for by insurance, if the governing board of a municipality, after a26public hearing, adopts a local law, ordinance or resolution providing27therefor. In addition, an exchange of an annuity for an annuity28contract, which resulted in non-taxable gain, as determined in section29one thousand thirty-five of the internal revenue code, shall be excluded30from such income. Provided that such exclusion shall be based on satis-31factory proof that such an exchange was solely an exchange of an annuity32for an annuity contract that resulted in a non-taxable transfer deter-33mined by such section of the internal revenue code. Furthermore, such34income shall not include the proceeds of a reverse mortgage, as author-35ized by section six-h of the banking law, and sections two hundred36eighty and two hundred eighty-a of the real property law; provided,37however, that monies used to repay a reverse mortgage may not be38deducted from income, and provided additionally that any interest or39dividends realized from the investment of reverse mortgage proceeds40shall be considered income. The provisions of this paragraph notwith-41standing, such income shall not include veterans disability compen-42sation, as defined in Title 38 of the United States Code provided the43governing board of such municipality, after public hearing, adopts a44local law, ordinance or resolution providing therefor. In computing net45rental income and net income from self-employment no depreciation46deduction shall be allowed for the exhaustion, wear and tear of real or47personal property held for the production of income;] 48 (iv) The term "income" as used herein shall mean the "adjusted gross 49 income" for federal income tax purposes as reported on the applicant's 50 federal or state income tax return for the applicable income tax year, 51 subject to any subsequent amendments or revisions, plus any social secu- 52 rity benefits not included in such adjusted gross income, minus any 53 distributions, to the extent included in federal adjusted gross income, 54 received from an individual retirement account and an individual retire- 55 ment annuity; provided that if no such return was filed for the applica- 56 ble income tax year, the applicant's income shall be determined based onS. 4009 30 A. 3009 1 the amounts that would have so been reported if such a return had been 2 filed; and provided further, that the governing board of a municipality 3 may adopt a local law, ordinance or resolution providing that any social 4 security benefits that were not included in the applicant's adjusted 5 gross income shall not be considered income for purposes of this 6 section; 7 (b) unless the owner shall have held an exemption under this section 8 for [his] the owner's previous residence or unless the title of the 9 property shall have been vested in the owner or one of the owners of the 10 property for at least twelve consecutive months prior to the date of 11 making application for exemption, provided, however, that in the event 12 of the death of [either a husband or wife] a married person in whose 13 name title of the property shall have been vested at the time of death 14 and then becomes vested solely in [the survivor] such person's surviving 15 spouse by virtue of devise by or descent from the deceased [husband or16wife] spouse, the time of ownership of the property by the deceased 17 [husband or wife] spouse shall be deemed also a time of ownership by the 18 [survivor] surviving spouse and such ownership shall be deemed contin- 19 uous for the purposes of computing such period of twelve consecutive 20 months. In the event of a transfer by [either a husband or wife to the21other] a married person to such person's spouse of all or part of the 22 title to the property, the time of ownership of the property by the 23 transferor spouse shall be deemed also a time of ownership by the trans- 24 feree spouse and such ownership shall be deemed continuous for the 25 purposes of computing such period of twelve consecutive months. Where 26 property of the owner or owners has been acquired to replace property 27 formerly owned by such owner or owners and taken by eminent domain or 28 other involuntary proceeding, except a tax sale, the period of ownership 29 of the former property shall be combined with the period of ownership of 30 the property for which application is made for exemption and such peri- 31 ods of ownership shall be deemed to be consecutive for purposes of this 32 section. Where a residence is sold and replaced with another within one 33 year and both residences are within the state, the period of ownership 34 of both properties shall be deemed consecutive for purposes of the 35 exemption from taxation by a municipality within the state granting such 36 exemption. Where the owner or owners transfer title to property which as 37 of the date of transfer was exempt from taxation or PILOT under the 38 provisions of this section, the reacquisition of title by such owner or 39 owners within nine months of the date of transfer shall be deemed to 40 satisfy the requirement of this paragraph that the title of the property 41 shall have been vested in the owner or one of the owners for such period 42 of twelve consecutive months. Where, upon or subsequent to the death of 43 an owner or owners, title to property which as of the date of such death 44 was exempt from taxation or PILOT under such provisions, becomes vested, 45 by virtue of devise or descent from the deceased owner or owners, or by 46 transfer by any other means within nine months after such death, solely 47 in a person or persons who, at the time of such death, maintained such 48 property as a primary residence, the requirement of this paragraph that 49 the title of the property shall have been vested in the owner or one of 50 the owners for such period of twelve consecutive months shall be deemed 51 satisfied; 52 (c) unless the property is used exclusively for residential purposes, 53 provided, however, that in the event any portion of such property is not 54 so used exclusively for residential purposes but is used for other 55 purposes, such portion shall be subject to taxation or PILOT and theS. 4009 31 A. 3009 1 remaining portion only shall be entitled to the exemption provided by 2 this section; 3 (d) unless the real property is the legal residence of and is occupied 4 in whole or in part by the owner or by all of the owners of the proper- 5 ty: except where, (i) an owner is absent from the residence while 6 receiving health-related care as an inpatient of a residential health 7 care facility, as defined in section twenty-eight hundred one of the 8 public health law, provided that any income accruing to that person 9 shall only be income only to the extent that it exceeds the amount paid 10 by such owner, spouse, or co-owner for care in the facility, and 11 provided further, that during such confinement such property is not 12 occupied by other than the spouse or co-owner of such owner; or, (ii) 13 the real property is owned by a [husband and/or wife, or an ex-husband14and/or an ex-wife, and either] married person or a married couple, or by 15 a formerly married person or a formerly married couple, and one spouse 16 or ex-spouse is absent from the residence due to divorce, legal sepa- 17 ration or abandonment and all other provisions of this section are met 18 provided that where an exemption was previously granted when both 19 resided on the property, then the person remaining on the real property 20 shall be sixty-two years of age or over. 21 § 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop- 22 erty tax law, as amended by section 1 of part B of chapter 686 of the 23 laws of 2022, is amended to read as follows: 24 (a) For the purposes of this section, title to that portion of real 25 property owned by a cooperative apartment corporation in which a 26 tenant-stockholder of such corporation resides and which is represented 27 by [his] the tenant-stockholder's share or shares of stock in such 28 corporation as determined by its or their proportional relationship to 29 the total outstanding stock of the corporation, including that owned by 30 the corporation, shall be deemed to be vested in such tenant-stockhold- 31 er. 32 § 4. Subdivisions 5 and 5-a of section 467 of the real property tax 33 law, as amended by section 1 of part B of chapter 686 of the laws of 34 2022, are amended to read as follows: 35 5. Application for such exemption must be made by the owner, or all of 36 the owners of the property, on forms prescribed by the commissioner to 37 be furnished by the appropriate assessing authority and shall furnish 38 the information and be executed in the manner required or prescribed in 39 such forms, and shall be filed in such assessor's office on or before 40 the appropriate taxable status date. Notwithstanding any other provision 41 of law, at the option of the municipal corporation, any person otherwise 42 qualifying under this section shall not be denied the exemption under 43 this section if [he] such person becomes sixty-five years of age after 44 the appropriate taxable status date and on or before December thirty- 45 first of the same year. 46 5-a. Any local law or ordinance adopted pursuant to paragraph (a) of 47 subdivision one of this section may be amended, or a local law or ordi- 48 nance may be adopted to provide, notwithstanding subdivision five of 49 this section, that an application for such exemption may be filed with 50 the assessor after the appropriate taxable status date but not later 51 than the last date on which a petition with respect to complaints of 52 assessment may be filed, where failure to file a timely application 53 resulted from: (a) a death of the applicant's spouse, child, parent[,54brother or sister] or sibling; or (b) an illness of the applicant or of 55 the applicant's spouse, child, parent[, brother or sister] or sibling, 56 which actually prevents the applicant from filing on a timely basis, asS. 4009 32 A. 3009 1 certified by a licensed physician. The assessor shall approve or deny 2 such application as if it had been filed on or before the taxable status 3 date. 4 § 5. Subdivision 6 of section 467 of the real property tax law, as 5 amended by section 1 of part B of chapter 686 of the laws of 2022, is 6 amended to read as follows: 7 6. (a) At least sixty days prior to the appropriate taxable status 8 date, the assessing authority shall mail to each person who was granted 9 exemption pursuant to this section on the latest completed assessment 10 roll an application form and a notice that such application must be 11 filed on or before the taxable status date and be approved in order for 12 the exemption to be granted. The assessing authority shall, within three 13 days of the completion and filing of the tentative assessment roll, 14 notify by mail any applicant [who has included with his] whose applica- 15 tion includes at least one self-addressed, pre-paid envelope, of the 16 approval or denial of the application; provided, however, that the 17 assessing authority shall, upon the receipt and filing of the applica- 18 tion, send by mail notification of receipt to any applicant who has 19 included two of such envelopes with the application. Where an applicant 20 is entitled to a notice of denial pursuant to this subdivision, such 21 notice shall be on a form prescribed by the commissioner and shall state 22 the reasons for such denial and shall further state that the applicant 23 may have such determination reviewed in the manner provided by law. 24 Failure to mail any such application form or notices or the failure of 25 such person to receive any of the same shall not prevent the levy, 26 collection and enforcement of the payment of the taxes or PILOT on prop- 27 erty owned by such person. 28 (b) Except in cities of one million or more, any person who has been 29 granted exemption pursuant to this section on five (5) consecutive 30 completed assessment rolls, including any years when the exemption was 31 granted to a property owned by [a husband and/or wife] a married person 32 or a married couple while both spouses resided in such property, shall 33 not be subject to the requirements set forth in paragraph (a) of this 34 subdivision provided the governing board of the municipality in which 35 said property is situated after public hearing adopts a local law, ordi- 36 nance or resolution providing therefor however said person shall be 37 mailed an application form and a notice [informing him of his] setting 38 forth such person's rights. Such exemption shall be automatically grant- 39 ed on each subsequent assessment roll. Provided, however, that when tax 40 payment is made by such person a sworn affidavit must be included with 41 such payment which shall state that such person continues to be eligible 42 for such exemption. Such affidavit shall be on a form prescribed by the 43 commissioner. If such affidavit is not included with the tax payment, 44 the collecting officer shall proceed pursuant to section five hundred 45 fifty-one-a of this chapter. 46 (c) In cities of one million or more, any person who has been granted 47 exemption pursuant to this section shall file the completed application 48 with the appropriate assessing authority every twenty-four months from 49 the date such exemption was granted without the necessity of having been 50 granted exemption pursuant to this section on five (5) consecutive 51 completed assessment rolls including any years when the exemption was 52 granted to a property owned by [a husband and/or wife] a married person 53 or a married couple while both spouses resided in such property. 54 § 6. Subdivision 8-a of section 467 of the real property tax law, as 55 amended by section 1 of part B of chapter 686 of the laws of 2022, is 56 amended to read as follows:S. 4009 33 A. 3009 1 8-a. Notwithstanding any provision of law to the contrary, the local 2 governing body of a municipal corporation that is authorized to adopt a 3 local law pursuant to subdivision eight of this section is further 4 authorized to adopt a local law providing that where a renewal applica- 5 tion for the exemption authorized by this section has not been filed on 6 or before the taxable status date, and the owner believes that good 7 cause existed for the failure to file the renewal application by that 8 date, the owner may, no later than the last day for paying taxes or 9 PILOT without incurring interest or penalty, submit a written request to 10 the assessor asking [him or her] the assessor to extend the filing dead- 11 line and grant the exemption. Such request shall contain an explanation 12 of why the deadline was missed, and shall be accompanied by a renewal 13 application, reflecting the facts and circumstances as they existed on 14 the taxable status date. The assessor may extend the filing deadline and 15 grant the exemption if [he or she] the assessor is satisfied that (i) 16 good cause existed for the failure to file the renewal application by 17 the taxable status date, and that (ii) the applicant is otherwise enti- 18 tled to the exemption. The assessor shall make a determination and mail 19 notice [of his or her determination] thereof to the owner. If the deter- 20 mination states that the assessor has granted the exemption, [he or she] 21 the assessor shall thereupon be authorized and directed to correct the 22 assessment roll accordingly, or, if another person has custody or 23 control of the assessment roll, to direct that person to make the appro- 24 priate corrections. If the correction is not made before taxes are 25 levied, the failure to take the exemption into account in the computa- 26 tion of the tax shall be deemed a "clerical error" for purposes of title 27 three of article five of this chapter, and shall be corrected according- 28 ly. 29 § 7. This act shall take effect immediately and shall apply to all 30 applications for exemptions pursuant to section 467 of the real property 31 tax law on assessment rolls that are based on taxable status dates 32 occurring on and after October 1, 2023. 33 PART L 34 Section 1. Section 2 of chapter 540 of the laws of 1992, amending the 35 real property tax law relating to oil and gas charges, as amended by 36 section 1 of part C of chapter 59 of the laws of 2020, is amended to 37 read as follows: 38 § 2. This act shall take effect immediately and shall be deemed to 39 have been in full force and effect on and after April 1, 1992; provided, 40 however that any charges imposed by section 593 of the real property tax 41 law as added by section one of this act shall first be due for values 42 for assessment rolls with tentative completion dates after July 1, 1992, 43 and provided further, that this act shall remain in full force and 44 effect until March 31, [2024] 2027, at which time section 593 of the 45 real property tax law as added by section one of this act shall be 46 repealed. 47 § 2. This act shall take effect immediately. 48 PART M 49 Section 1. The real property tax law is amended by adding a new 50 section 989 to read as follows: 51 § 989. Distribution of surplus in tax enforcement proceedings. 1. 52 Notwithstanding the provisions of any general, special or local law toS. 4009 34 A. 3009 1 the contrary, when a property owner is divested of title due to the 2 foreclosure of a delinquent real property tax lien on the property, and 3 the property is sold to a third party, the proceeds of such sale shall 4 be distributed as follows: 5 (a) If the proceeds of the sale are less than or equal to the total 6 taxes due on the property plus interest, penalties and other charges 7 duly imposed upon the property, including the administrative costs asso- 8 ciated with the foreclosure process, the entire proceeds shall be paid 9 to the local government. 10 (b) If the proceeds of the sale exceed the total taxes due on the 11 property plus interest, penalties and other charges duly imposed upon 12 the property, including the administrative costs associated with the 13 foreclosure process, the excess shall be distributed as follows: 14 (i) If the property is not subject to other liens, the excess proceeds 15 shall be paid to the prior owner or owners of the property. 16 (ii) If the property is subject to other liens, the lienholders shall 17 be paid from the excess proceeds in the same order and to the same 18 extent as they would be in an action to foreclose a mortgage pursuant to 19 article thirteen of the real property actions and proceedings law. Any 20 proceeds remaining after the other lienholders have been so paid shall 21 be paid to the prior owner or owners of the property. 22 2. The provisions of this section shall apply whether property is sold 23 through a public auction or otherwise. 24 3. When a foreclosure concludes with the tax district taking title to 25 property, the provisions of this section shall not apply unless and 26 until the tax district sells the property to a third party; provided 27 that in such a case, if there are excess proceeds to be paid to the 28 prior owner or owners of the property, such proceeds shall be paid to 29 the owner or owners of the property prior to its acquisition by the tax 30 district. 31 4. The provisions of this section shall not apply to the enforcement 32 of tax liens on abandoned real property. For purposes of this section, 33 real property shall be deemed abandoned if it: 34 (a) has been included on a local municipal roll, registry or list of 35 vacant and abandoned residential property pursuant to section eleven 36 hundred eleven-a of this chapter, or 37 (b) has been certified as abandoned commercial or industrial real 38 property pursuant to article nineteen-A of the real property actions and 39 proceedings law, or 40 (c) has been included on the statewide registry of vacant and aban- 41 doned property pursuant to section thirteen hundred ten of the real 42 property actions and proceedings law. 43 5. This section shall be construed to supersede all general, special 44 and local laws relating to tax enforcement to the extent that such laws 45 would otherwise allow the proceeds of a sale to be distributed in a 46 manner other than as set forth in this section. This section is not 47 intended to supersede such laws in other respects. 48 § 2. Subdivision 2 of section 1104 of the real property tax law, as 49 amended by chapter 532 of the laws of 1994, paragraph (iii) as further 50 amended by subdivision (b) of section 1 of part W of chapter 56 of the 51 laws of 2010, is amended to read as follows: 52 2. The provisions of this article shall not be applicable to a county, 53 city or town which: (i) on January first, nineteen hundred ninety-three, 54 was authorized to enforce the collection of delinquent taxes pursuant to 55 a county charter, city charter, administrative code or special law; (ii) 56 adopted a local law, no later than July first, nineteen hundred ninety-S. 4009 35 A. 3009 1 four, providing that the collection of taxes in such county, city or 2 town shall continue to be enforced pursuant to such charter, code or 3 special law, as such charter, code or special law may from time to time 4 be amended; and (iii) filed a copy of such local law with the commis- 5 sioner no later than August first, nineteen hundred ninety-four. 6 Provided, however, that nothing contained herein shall be construed to 7 exempt any such county, city or town from the provisions of section nine 8 hundred eighty-nine of this chapter. 9 § 3. Subdivision 1 of section 1166 of the real property tax law, as 10 amended by chapter 500 of the laws of 2015, is amended to read as 11 follows: 12 1. Whenever any tax district shall become vested with the title to 13 real property by virtue of a foreclosure proceeding brought pursuant to 14 the provisions of this article, such tax district is hereby authorized 15 to sell and convey the real property so acquired, which shall include 16 any and all gas, oil or mineral rights associated with such real proper- 17 ty, either with or without advertising for bids, notwithstanding the 18 provisions of any general, special or local law. The proceeds obtained 19 from any such sale shall be distributed in the manner provided by 20 section nine hundred eighty-nine of this chapter. 21 § 4. This act shall take effect October 1, 2023, and shall apply to 22 all tax foreclosure proceedings commenced on and after such date. 23 PART N 24 Section 1. Section 575-b of the real property tax law is amended by 25 adding a new subdivision 1-a to read as follows: 26 1-a. Notwithstanding any provision of law to the contrary, the solar 27 or wind energy system appraisal model authorized by this section shall 28 be identified, formulated, adopted, published, and updated periodically 29 in the manner provided in this section without regard to the provisions 30 of article two of the state administrative procedure act. 31 § 2. Subparagraph (viii) of paragraph (b) of subdivision 2 of section 32 102 of the state administrative procedure act, as amended by chapter 74 33 of the laws of 1987, is amended to read as follows: 34 (viii) appraisal models, discount rates, state equalization rates, 35 class ratios, special equalization rates and special equalization ratios 36 established pursuant to the real property tax law; 37 § 3. No assessing unit that failed to use the appraisal model pursu- 38 ant to section 575-b of the real property tax law in 2022 shall be held 39 liable for failing to use such model in 2022. Within fifteen days from 40 the effective date of this act, the commissioner of taxation and finance 41 may readopt the 2022 appraisal model or models and discount rates for 42 use in 2023, without additional consultation with the New York state 43 energy research and development authority or the New York state asses- 44 sors association, and without soliciting or considering additional 45 public comments. 46 § 4. This act shall take effect immediately and shall be deemed to 47 have been in full force and effect on and after the effective date of 48 part X of chapter 59 of the laws of 2021. 49 PART O 50 Section 1. Subparagraph (i) of the opening paragraph of section 1210 51 of the tax law is REPEALED and a new subparagraph (i) is added to read 52 as follows:S. 4009 36 A. 3009 1 (i) with respect to a city of one million or more and the following 2 counties: (1) any such city having a population of one million or more 3 is hereby authorized and empowered to adopt and amend local laws, ordi- 4 nances or resolutions imposing such taxes in any such city, at the rate 5 of four and one-half percent; 6 (2) the following counties that impose taxes described in subdivision 7 (a) of this section at the rate of three percent as authorized above in 8 this paragraph are hereby further authorized and empowered to adopt and 9 amend local laws, ordinances, or resolutions imposing such taxes at 10 additional rates, in quarter percent increments, not to exceed the 11 following rates, which rates are additional to the three percent rate 12 authorized above in this paragraph: 13 (A) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua, 14 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, 15 Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Jefferson, Lewis, 16 Livingston, Madison, Monroe, Montgomery, Niagara, Onondaga, Ontario, 17 Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. 18 Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, 19 Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, 20 Westchester, Wyoming, Yates; 21 (B) One and one-quarter percent - Herkimer, Nassau; 22 (C) One and one-half percent - Allegany; 23 (D) One and three-quarters percent - Erie, Oneida. 24 (E) Provided, however, that (I) the county of Rockland may impose 25 additional rates of five-eighths percent and three-eighths percent, in 26 lieu of imposing such additional rate in quarter percent increments; 27 (II) the county of Ontario may impose additional rates of one-eighth 28 percent and three-eighths percent, in lieu of imposing such additional 29 rate in quarter percent increments; (III) three-quarters percent of the 30 additional rate authorized to be imposed by the county of Nassau shall 31 be subject to the limitation set forth in section twelve hundred sixty- 32 two-e of this article; (IV) the one and three-quarters percent addi- 33 tional rate to be imposed by the county of Erie shall be subject to the 34 limitations set forth in section twelve hundred sixty-two-q of this 35 article. 36 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the 37 tax law is REPEALED and a new subparagraph (ii) is added to read as 38 follows: 39 (ii) the following cities that impose taxes described in subdivision 40 (a) of this section at the rate of one and one-half percent or higher as 41 authorized above in this paragraph for such cities are hereby further 42 authorized and empowered to adopt and amend local laws, ordinances, or 43 resolutions imposing such taxes at additional rates, in quarter percent 44 increments, not to exceed the following rates, which rates are addi- 45 tional to the one and one-half percent or higher rates authorized above 46 in this paragraph: 47 (1) One percent - Mount Vernon; New Rochelle; Oswego; White Plains; 48 (2) One and one-quarter percent - None; 49 (3) One and one-half percent - Yonkers. 50 § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 51 1210 of the tax law are REPEALED and a new subparagraph (iii) is added 52 to read as follows: 53 (iii) the maximum rate referred to in section twelve hundred twenty- 54 four of this article shall be calculated without reference to the addi- 55 tional rates authorized for counties, other than the counties of Cayuga,S. 4009 37 A. 3009 1 Cortland, Fulton, Madison, and Otsego, in clause two of subparagraph (i) 2 and the cities in subparagraph (ii) of this paragraph. 3 § 4. Section 1210 of the tax law is amended by adding a new subdivi- 4 sion (p) to read as follows: 5 (p) Notwithstanding any provision of this section or any other law to 6 the contrary, a county authorized to impose an additional rate or rates 7 of sales and compensating use taxes by clause two of subparagraph (i) of 8 the opening paragraph of this section, or a city, other than the city of 9 Mount Vernon, authorized to impose an additional rate of such taxes by 10 subparagraph (ii) of such opening paragraph, may adopt a local law, 11 ordinance, or resolution by a majority vote of its governing body impos- 12 ing such rate or rates for a period not to exceed two years, and any 13 such period must end on November thirtieth of an odd-numbered year. 14 Notwithstanding the preceding sentence, the city of White Plains is 15 authorized to exceed such two-year limitation to impose the tax author- 16 ized by subparagraph (ii) of such opening paragraph for the period 17 commencing on September first, two thousand twenty-three and ending on 18 November thirtieth, two thousand twenty-five. Any such local law, ordi- 19 nance, or resolution shall also be subject to the provisions of subdivi- 20 sions (d) and (e) of this section. 21 § 5. Section 1210-E of the tax law is REPEALED. 22 § 6. Subdivision (a) of section 1223 of the tax law, as amended by 23 chapter 44 of the laws of 2019, is amended to read as follows: 24 (a) No transaction taxable under sections twelve hundred two through 25 twelve hundred four of this article shall be taxed pursuant to this 26 article by any county or by any city located therein, or by both, at an 27 aggregate rate in excess of the highest rate set forth in the applicable 28 subdivision of section twelve hundred one of this article or, in the 29 case of any taxes imposed pursuant to the authority of section twelve 30 hundred ten or twelve hundred eleven of this article (other than taxes 31 imposed by the county of Nassau, Erie, [Steuben, Cattaraugus, Suffolk,] 32 Oneida, [Genesee, Greene, Franklin, Hamilton,] Herkimer, [Tioga, Orle-33ans,] and Allegany[, Ulster, Albany, Rensselaer, Tompkins, Wyoming,34Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sulli-35van, Wayne, Livingston, Schenectady, Montgomery, Delaware, Clinton,36Niagara, Yates, Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua,37Orange, Oswego, Ontario, Jefferson, St. Lawrence, Westchester or Ononda-38ga and by the county of Cortland and the city of Cortland and by the39county of Broome and the city of Binghamton and by the county of Cayuga40and the city of Auburn and by the county of Otsego and the city of41Oneonta and by the county of Madison and the city of Oneida and by the42county of Fulton and the city of Gloversville or the city of Johnstown] 43 as provided in section twelve hundred ten of this article) at a rate in 44 excess of [three] four percent, except that, in the city of Yonkers[, in45the city of Mount Vernon, in the city of New Rochelle, in the city of46Fulton, in the city of Oswego, and in the city of White Plains,] the 47 rate may not be in excess of four and one-half percent, and except that 48 in the city of Poughkeepsie in the county of Dutchess, if such county 49 withdraws from the metropolitan commuter transportation district pursu- 50 ant to section twelve hundred seventy-nine-b of the public authorities 51 law and if the revenues from a three-eighths percent rate of such tax 52 imposed by such county, pursuant to the authority of section twelve 53 hundred ten of this article, are required by local laws, ordinances or 54 resolutions to be set aside for mass transportation purposes, the rate 55 may not be in excess of [three] four and three-eighths percent.S. 4009 38 A. 3009 1 § 7. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), 2 (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), 3 (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 4 1224 of the tax law are REPEALED. 5 § 8. Section 1224 of the tax law is amended by adding three new subdi- 6 visions (d), (e), and (f) to read as follows: 7 (d) For purposes of this section, the term "prior right" shall mean 8 the preferential right to impose any tax described in sections twelve 9 hundred two and twelve hundred three, or twelve hundred ten and twelve 10 hundred eleven, of this article and thereby to preempt such tax and to 11 preclude another municipal corporation from imposing or continuing the 12 imposition of such tax to the extent that such right is exercised. 13 However, the right of preemption shall only apply within the territorial 14 limits of the taxing jurisdiction having the right of preemption. 15 (e) Each of the following counties and cities shall have the sole 16 right to impose the following additional rate of sales and compensating 17 use taxes in excess of three percent that such county or city is author- 18 ized to impose pursuant to clause two of subparagraph (i) or subpara- 19 graph (ii) of the opening paragraph of section twelve hundred ten of 20 this article. Such additional rates of tax shall not be subject to 21 preemption. 22 (1) Counties: 23 (A) One percent - Albany, Broome, Cattaraugus, Chautauqua, Chemung, 24 Chenango, Clinton, Columbia, Delaware, Dutchess, Essex, Franklin, Gene- 25 see, Greene, Hamilton, Jefferson, Lewis, Livingston, Monroe, Montgomery, 26 Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Putnam, Rensselaer, 27 Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, 28 Seneca, Steuben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren, 29 Washington, Wayne, Westchester, Wyoming, Yates; 30 (B) One and one-quarter percent - Herkimer, Nassau; 31 (C) One and one-half percent - Allegany; 32 (D) One and three-quarters percent - Erie, Oneida. 33 (E) Provided, however, that the county of Westchester shall have the 34 sole right to impose the additional one percent rate of tax which such 35 county is authorized to impose pursuant to the authority of clause two 36 of subparagraph (i) of the opening paragraph of section twelve hundred 37 ten of this article in the area of the county outside the cities of 38 Mount Vernon, New Rochelle, White Plains, and Yonkers. 39 (2) Cities: 40 (A) One-quarter of one percent - Rome; 41 (B) One-half of one percent - None; 42 (C) Three-quarters of one percent - None; 43 (D) One percent - Mount Vernon, New Rochelle, White Plains; 44 (E) One and one-quarter percent - None; 45 (F) One and one-half percent - Yonkers. 46 (f) Each of the following cities is authorized to preempt the taxes 47 imposed by the county in which it is located pursuant to the authority 48 of section twelve hundred ten of this article, to the extent of one-half 49 the maximum aggregate rate authorized under section twelve hundred ten 50 of this article, including the additional rate that the county in which 51 such city is located is authorized to impose: Auburn, in Cayuga county; 52 Cortland, in Cortland county; Gloversville and Johnstown, in Fulton 53 county; Oneida, in Madison county; Oneonta, in Otsego county. As of the 54 date this subdivision takes effect, any such preemption by such a city 55 in effect on such date shall continue in full force and effect until the 56 effective date of a local law, ordinance, or resolution adopted orS. 4009 39 A. 3009 1 amended by the city to change such preemption. Any preemption by such a 2 city pursuant to this subdivision that takes effect after the effective 3 date of this subdivision shall be subject to the notice requirements in 4 section twelve hundred twenty-three of this subpart and to the other 5 requirements of this article. 6 § 9. Subdivision (b) of section 1262-b of the tax law is REPEALED. 7 § 10. Section 1262-e of the tax law, as amended by section 2 of item 8 BB of subpart C of part XXX of chapter 58 of the laws of 2020, is 9 amended to read as follows: 10 § 1262-e. Establishment of local government assistance programs in 11 Nassau county. 1. Towns and cities. Notwithstanding any other provision 12 of law to the contrary, for the calendar year beginning on January 13 first, nineteen hundred ninety-eight and continuing through the calendar 14 year beginning on January first, two thousand twenty-three, and each 15 calendar year thereafter beginning on January first, the county of 16 Nassau shall enact and establish a local government assistance program 17 for the towns and cities within such county to assist such towns and 18 cities to minimize real property taxes; defray the cost and expense of 19 the treatment, collection, management, disposal, and transportation of 20 municipal solid waste, and to comply with the provisions of chapter two 21 hundred ninety-nine of the laws of nineteen hundred eighty-three; and 22 defray the cost of maintaining conservation and environmental control 23 programs. Such special assistance program for the towns and cities with- 24 in such county and the funding for such program shall equal one-third of 25 the revenues received by such county from the imposition of the three- 26 quarters percent sales and use tax during calendar years two thousand 27 one, two thousand two, two thousand three, two thousand four, two thou- 28 sand five, two thousand six, two thousand seven, two thousand eight, two 29 thousand nine, two thousand ten, two thousand eleven, two thousand 30 twelve, two thousand thirteen, two thousand fourteen, two thousand 31 fifteen, two thousand sixteen, two thousand seventeen, two thousand 32 eighteen, two thousand nineteen, two thousand twenty, two thousand twen- 33 ty-one, two thousand twenty-two [and], two thousand twenty-three and 34 each calendar year thereafter additional to the regular three percent 35 rate authorized for such county in section twelve hundred ten of this 36 article. The monies for such special local assistance shall be paid and 37 distributed to the towns and cities on a per capita basis using the 38 population figures in the latest decennial federal census. Provided 39 further, that notwithstanding any other law to the contrary, the estab- 40 lishment of such special assistance program shall preclude any city or 41 town within such county from preempting or claiming under any other 42 section of this chapter the revenues derived from the additional tax 43 authorized by section twelve hundred ten of this article. Provided 44 further, that any such town or towns may, by resolution of the town 45 board, apportion all or a part of monies received in such special 46 assistance program to an improvement district or special district 47 account within such town or towns in order to accomplish the purposes of 48 this special assistance program. 49 2. Villages. Notwithstanding any other provision of law to the contra- 50 ry, for the calendar year beginning on January first, nineteen hundred 51 ninety-eight and continuing through the calendar year beginning on Janu- 52 ary first, two thousand twenty-three, and each calendar year thereafter, 53 the county of Nassau, by local law, is hereby empowered to enact and 54 establish a local government assistance program for the villages within 55 such county to assist such villages to minimize real property taxes; 56 defray the cost and expense of the treatment, collection, management,S. 4009 40 A. 3009 1 disposal, and transportation of municipal solid waste; and defray the 2 cost of maintaining conservation and environmental control programs. The 3 funding of such local assistance program for the villages within such 4 county may be provided by Nassau county during any calendar year in 5 which such village local assistance program is in effect and shall not 6 exceed one-sixth of the revenues received from the imposition of the 7 three-quarters percent sales and use tax that are remaining after the 8 towns and cities have received their funding pursuant to the provisions 9 of subdivision one of this section. The funding for such village local 10 assistance program shall be paid and distributed to the villages on a 11 per capita basis using the population figures in the latest decennial 12 federal census. Provided further, that the establishment of such village 13 local assistance program shall preclude any village within such county 14 from preempting or claiming under any other section of this chapter the 15 revenues derived from the additional tax authorized by section twelve 16 hundred ten of this article. 17 § 11. Section 1262-g of the tax law, as amended by section 2 of item 18 DD of subpart C of part XXX of chapter 58 of the laws of 2020, is 19 amended 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. 4009 41 A. 3009 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. (b) If the county of Oneida imposes sales and compensat- 17 ing use taxes at a rate which is one and three-quarters percent addi- 18 tional to the three percent rate authorized by section twelve hundred 19 ten of this article, as authorized pursuant to clause two of subpara- 20 graph (i) of the opening paragraph of section twelve hundred ten of this 21 article, net collections attributable to the additional three-quarters 22 percent of such additional rate shall not be subject to any revenue 23 distribution agreement entered into by the county and the cities in the 24 county pursuant to the authority of subdivision (c) of section twelve 25 hundred sixty-two of this part. 26 § 12. Section 1262-h of the tax law, as amended by chapter 315 of the 27 laws of 2020, is amended to read as follows: 28 § 1262-h. Allocation and distribution of net collections from the 29 additional one percent rate of sales and compensating use taxes in Steu- 30 ben county. Notwithstanding any provision of law to the contrary, of the 31 net collections received by the county of Steuben as a result of the 32 imposition of the additional one percent rate of tax authorized by 33 section twelve hundred ten of this article [(a) during the period begin-34ning December first, nineteen hundred ninety-three and ending November35thirtieth, nineteen hundred ninety-four, the county of Steuben shall pay36or cause to be paid to the city of Hornell the sum of two hundred thou-37sand dollars, to the city of Corning the sum of three hundred thousand38dollars, and the sum of five hundred thousand dollars to the towns and39villages of the county of Steuben, on the basis of the ratio which the40full valuation of real property in each town or village bears to the41aggregate full valuation of real property in all of the towns and42villages in such area. Of the net collections received by the county of43Steuben as a result of the imposition of said additional one percent44rate of tax authorized by section twelve hundred ten of this article45during the period beginning December first, nineteen hundred ninety-four46and ending November thirtieth, nineteen hundred ninety-five, the county47of Steuben shall pay or cause to be paid to the city of Hornell the sum48of three hundred thousand dollars, to the city of Corning the sum of49four hundred fifty thousand dollars, and the sum of seven hundred fifty50thousand dollars to the towns and villages of the county of Steuben, on51the basis of the ratio which the full valuation of real property in each52town or village bears to the aggregate full valuation of real property53in all of the towns and villages in such area; and (b) during the period54beginning December first, nineteen hundred ninety-five and ending Novem-55ber thirtieth, two thousand seven, the county of Steuben shall annually56pay or cause to be paid to the city of Hornell the sum of five hundredS. 4009 42 A. 3009 1fifty thousand dollars, to the city of Corning the sum of six hundred2thousand dollars, and the sum of seven hundred fifty thousand dollars to3the towns and villages of the county of Steuben, on the basis of the4ratio which the full valuation of real property in each town or village5bears to the aggregate full valuation of real property in all of the6towns and villages in such area; and during the period beginning Decem-7ber first, two thousand seven and ending November thirtieth, two thou-8sand nine, the county of Steuben shall annually pay or cause to be paid9to the city of Hornell the sum of six hundred ten thousand dollars, to10the city of Corning the sum of six hundred fifty thousand dollars, and11the sum of seven hundred fifty thousand dollars to the towns and12villages of the county of Steuben, on the basis of the ratio which the13full valuation of real property in each town or village bears to the14aggregate full valuation of real property in all of the towns and15villages in such area; and during the period beginning December first,16two thousand nine and ending November thirtieth, two thousand eleven,17the county of Steuben shall annually pay or cause to be paid to the city18of Hornell the sum of seven hundred ten thousand dollars, to the city of19Corning the sum of seven hundred ten thousand dollars, and the sum of20seven hundred fifty thousand dollars to the towns and villages of the21county of Steuben, on the basis of the ratio which the full valuation of22real property in each town or village bears to the aggregate full valu-23ation of real property in all of the towns and villages in such area;24and during the period beginning December first, two thousand eleven and25ending November thirtieth, two thousand thirteen, the county of Steuben26shall annually pay or cause to be paid to the city of Hornell the sum of27seven hundred forty thousand dollars, to the city of Corning the sum of28seven hundred forty thousand dollars, and the sum of seven hundred fifty29thousand dollars to the towns and villages of the county of Steuben, on30the basis of the ratio which the full valuation of real property in each31town or village bears to the aggregate full valuation of real property32in all of the towns and villages in such area; and during the period33beginning December first, two thousand thirteen and ending November34thirtieth, two thousand fifteen, the county of Steuben shall annually35pay or cause to be paid to the city of Hornell the sum of seven hundred36sixty-five thousand dollars, to the city of Corning the sum of seven37hundred sixty-five thousand dollars, and the sum of seven hundred fifty38thousand dollars to the towns and villages of the county of Steuben, on39the basis of the ratio which the full valuation of real property in each40town or village bears to the aggregate full valuation of real property41in all of the towns and villages in such area; and during the period42beginning December first, two thousand fifteen and ending November thir-43tieth, two thousand seventeen, the county of Steuben shall annually pay44or cause to be paid to the city of Hornell the sum of seven hundred45sixty-five thousand dollars, to the city of Corning the sum of seven46hundred sixty-five thousand dollars, and the sum of seven hundred fifty47thousand dollars to the towns and villages of the county of Steuben, on48the basis of the ratio which the full valuation of real property in each49town or village bears to the aggregate full valuation of real property50in all of the towns and villages in such area; and during the period51beginning December first, two thousand seventeen and ending November52thirtieth, two thousand twenty, the county of Steuben shall annually pay53or cause to be paid to the city of Hornell the sum of seven hundred54eighty thousand dollars, to the city of Corning the sum of seven hundred55eighty thousand dollars, and the sum of seven hundred fifty thousand56dollars to the towns and villages of the county of Steuben, on the basisS. 4009 43 A. 3009 1of the ratio which the full valuation of real property in each town or2village bears to the aggregate full valuation of real property in all of3the towns and villages in such area; and during the] for any period 4 beginning on or after December first, two thousand twenty [and ending5November thirtieth, two thousand twenty-three], the county of Steuben 6 shall annually pay or cause to be paid to the city of Hornell the sum of 7 eight hundred twenty thousand dollars, to the city of Corning the sum of 8 eight hundred twenty thousand dollars, and the sum of seven hundred 9 ninety thousand dollars to the towns and villages of the county of Steu- 10 ben, on the basis of the ratio which the full valuation of real property 11 in each town or village bears to the aggregate full valuation of real 12 property in all of the towns and villages in such area. 13 § 13. Subdivision (c) of section 1262-j of the tax law, as amended by 14 section 2 of item TT of subpart C of part XXX of chapter 58 of the laws 15 of 2020, is amended to read as follows: 16 (c) Notwithstanding any provision of law to the contrary, of the net 17 collections received by the county of Suffolk as a result of the 18 increase of one percent to the tax authorized by section twelve hundred 19 ten of this article for [the] any period beginning or after June first, 20 two thousand one [and ending November thirtieth, two thousand twenty-21three], imposed by local laws or resolutions (by simple majority) by the 22 county legislature, and signed by the county executive, the county of 23 Suffolk shall allocate such net collections as follows: no less than 24 one-eighth and no more than three-eighths of such net collections 25 received shall be dedicated for public safety purposes and the balance 26 shall be deposited in the general fund of the county of Suffolk. 27 § 14. Section 1262-l of the tax law, as amended by section 2 of item 28 MM of subpart C of part XXX of chapter 58 of the laws of 2020, is 29 amended to read as follows: 30 § 1262-1. Allocation and distribution of net collections from the 31 additional rate of sales and compensating use tax in Rockland county. 1. 32 Notwithstanding any provision of law to the contrary, if the county of 33 Rockland imposes the additional five-eighths of one percent rate of tax 34 authorized by section twelve hundred ten of this article [during the] 35 for each period beginning on or after March first, two thousand two, 36 [and ending November thirtieth, two thousand twenty-three,] such county 37 shall allocate and distribute twenty percent of the net collections from 38 such additional rate to the towns and villages in the county in accord- 39 ance with subdivision (c) of section twelve hundred sixty-two of this 40 part on the basis of the ratio which the population of each such town or 41 village bears to such county's total population; and 42 2. Notwithstanding any provision of law to the contrary, if the county 43 of Rockland imposes the additional three-eighths of one percent rate of 44 tax authorized by section twelve hundred ten of this article [during45the] for any period beginning on or after March first, two thousand 46 seven, [and ending November thirtieth, two thousand twenty-three,] such 47 county shall allocate and distribute [sixteen and two-thirds] thirty- 48 three and one-third percent of the net collections from such additional 49 rate to the general funds of towns and villages within the county of 50 Rockland with existing town and village police departments from [March51first, two thousand seven through December thirty-first, two thousand52seven and thirty-three and one-third percent of the net collections from53such additional rate from] January first, two thousand eight [through54November thirtieth, two thousand twenty-three] and thereafter. The 55 monies allocated and distributed pursuant to this subdivision shall be 56 allocated and distributed to towns and villages with police departmentsS. 4009 44 A. 3009 1 on the basis of the number of full-time equivalent police officers 2 employed by each police department and shall not be used for salaries 3 heretofore or hereafter negotiated. 4 § 15. Section 1262-n of the tax law, as amended by section 2 of item 5 CC of subpart C of part XXX of chapter 58 of the laws of 2020, is 6 amended to read as follows: 7 § 1262-n. Disposition of net collections from the additional one 8 percent rate of sales and compensating use taxes in the county of 9 Niagara. Notwithstanding any contrary provision of law, if the county 10 of Niagara imposes the additional one percent rate of sales and compen- 11 sating use taxes authorized by section twelve hundred ten of this arti- 12 cle for all or any portion of [the] each period beginning on or after 13 March first, two thousand three [and ending November thirtieth, two14thousand twenty-three,] the county shall use all net collections from 15 such additional one percent rate to pay the county's expenses for Medi- 16 caid. The net collections from the additional one percent rate imposed 17 pursuant to this section shall be deposited in a special fund to be 18 created by such county separate and apart from any other funds and 19 accounts of the county. Any and all remaining net collections from such 20 additional one percent tax, after the Medicaid expenses are paid, shall 21 be deposited by the county of Niagara in the general fund of such county 22 for any county purpose. 23 § 16. Section 1262-o of the tax law, as amended by section 2 of item F 24 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 25 to read as follows: 26 § 1262-o. Disposition of net collections from the additional rate of 27 sales and compensating use taxes in the county of Chautauqua. [Notwith-28standing any contrary provision of law, if the county of Chautauqua29imposes the additional one and one-quarter percent rate of sales and30compensating use taxes authorized by section twelve hundred ten of this31article for all or any portion of the period beginning March first, two32thousand five and ending August thirty-first, two thousand six, the33additional one percent rate authorized by such section for all or any of34the period beginning September first, two thousand six and ending Novem-35ber thirtieth, two thousand seven, the additional three-quarters of one36percent rate authorized by such section for all or any of the period37beginning December first, two thousand seven and ending November thirti-38eth, two thousand ten, the county shall allocate one-fifth of the net39collections from the additional three-quarters of one percent to the40cities, towns and villages in the county on the basis of their respec-41tive populations, determined in accordance with the latest decennial42federal census or special population census taken pursuant to section43twenty of the general municipal law completed and published prior to the44end of the quarter for which the allocation is made, and allocate the45remainder of the net collections from the additional three-quarters of46one percent as follows: (1) to pay the county's expenses for Medicaid47and other expenses required by law; (2) to pay for local road and bridge48projects; (3) for the purposes of capital projects and repaying any49debts incurred for such capital projects in the county of Chautauqua50that are not otherwise paid for by revenue received from the mortgage51recording tax; and (4) for deposit into a reserve fund for bonded52indebtedness established pursuant to the general municipal law. Notwith-53standing any contrary provision of law, if the county of Chautauqua54imposes the additional one-half percent rate of sales and compensating55use taxes authorized by such section twelve hundred ten for all or any56of the period beginning December first, two thousand ten and endingS. 4009 45 A. 3009 1November thirtieth, two thousand fifteen, the county shall allocate2three-tenths of the net collections from the additional one-half of one3percent to the cities, towns and villages in the county on the basis of4their respective populations, determined in accordance with the latest5decennial federal census or special population census taken pursuant to6section twenty of the general municipal law completed and published7prior to the end of the quarter for which the allocation is made, and8allocate the remainder of the net collections from the additional one-9half of one percent as follows: (1) to pay the county's expenses for10Medicaid and other expenses required by law; (2) to pay for local road11and bridge projects; (3) for the purposes of capital projects and repay-12ing any debts incurred for such capital projects in the county of Chau-13tauqua that are not otherwise paid for by revenue received from the14mortgage recording tax; and (4) for deposit into a reserve fund for15bonded indebtedness established pursuant to the general municipal law.] 16 Notwithstanding any contrary provision of law, if the county of Chautau- 17 qua imposes the additional one percent rate of sales and compensating 18 use taxes authorized by such section twelve hundred ten for all or any 19 of [the] any period beginning on or after December first, two thousand 20 fifteen and [ending November thirtieth, two thousand twenty-three,] the 21 county shall allocate three-twentieths of the net collections from the 22 additional one percent to the cities, towns and villages in the county 23 on the basis of their respective populations, determined in accordance 24 with the latest decennial federal census or special population census 25 taken pursuant to section twenty of the general municipal law completed 26 and published prior to the end of the quarter for which the allocation 27 is made, and allocate the remainder of the net collections from the 28 additional one percent as follows: (1) to pay the county's expenses for 29 Medicaid and other expenses required by law; (2) to pay for local road 30 and bridge projects; (3) for the purposes of capital projects and repay- 31 ing any debts incurred for such capital projects in the county of Chau- 32 tauqua that are not otherwise paid for by revenue received from the 33 mortgage recording tax; and (4) for deposit into a reserve fund for 34 bonded indebtedness established pursuant to the general municipal law. 35 The net collections from the additional rates imposed pursuant to this 36 section shall be deposited in a special fund to be created by such coun- 37 ty separate and apart from any other funds and accounts of the county to 38 be used for purposes above described. 39 § 17. Section 1262-p of the tax law, as amended by section 2 of item X 40 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 41 to read as follows: 42 § 1262-p. Disposition of net collections from the additional one 43 percent rate of sales and compensating use taxes in the county of 44 Livingston. Notwithstanding any contrary provision of law, if the coun- 45 ty of Livingston imposes the additional one percent rate of sales and 46 compensating use taxes authorized by section twelve hundred ten of this 47 article for all or any portion of [the] any period beginning on or after 48 June first, two thousand three [and ending November thirtieth, two thou-49sand twenty-three], the county shall use all net collections from such 50 additional one percent rate to pay the county's expenses for Medicaid. 51 The net collections from the additional one percent rate imposed pursu- 52 ant to this section shall be deposited in a special fund to be created 53 by such county separate and apart from any other funds and accounts of 54 the county. Any and all remaining net collections from such additional 55 one percent tax, after the Medicaid expenses are paid, shall be deposit-S. 4009 46 A. 3009 1 ed by the county of Livingston in the general fund of such county for 2 any county purpose. 3 § 18. Subdivision 1 of section 1262-q of the tax law, as amended by 4 chapter 243 of the laws of 2011, is amended to read as follows: 5 (1) If the county of Erie imposes the additional one percent rate of 6 sales and compensating use taxes authorized by [item (i) of clause (4)7of subparagraph (i) of the opening paragraph of] section twelve hundred 8 ten of this article [during the] for any period beginning January first, 9 two thousand seven, or thereafter, the county shall allocate each calen- 10 dar year the first twelve million five hundred thousand dollars of the 11 net collections from such one percent rate to the cities of such county 12 and the area in such county outside its cities to be applied or distrib- 13 uted in the same manner and proportion as the net collections for such 14 cities and area are applied or distributed under the revenue distrib- 15 ution agreement entered into pursuant to the authority of subdivision 16 (c) of section twelve hundred sixty-two of this part in effect on Janu- 17 ary first, two thousand six, and subject to all provisions of such 18 agreement governing the net collections for such cities and area and 19 shall retain the remainder of such net collections for any county 20 purpose. 21 § 19. Subdivision 2 of section 1262-q of the tax law, as amended by 22 section 2 of item N of subpart C of part XXX of chapter 58 of the laws 23 of 2020, is amended to read as follows: 24 (2) Net collections from the additional three-quarters of one percent 25 rate of sales and compensating use taxes which the county may impose 26 [during the period] commencing December first, two thousand eleven, [and27ending November thirtieth, two thousand twenty-three,] pursuant to the 28 authority of [item (ii) of clause (4) of subparagraph (i) of the opening29paragraph of] section twelve hundred ten of this article shall be used 30 by the county solely for county purposes and shall not be subject to any 31 revenue distribution agreement the county entered into pursuant to the 32 authority of subdivision (c) of section twelve hundred sixty-two of this 33 part. 34 § 20. The opening paragraph of section 1262-r of the tax law, as added 35 by chapter 37 of the laws of 2006, is amended to read as follows: 36 (1) Notwithstanding any contrary provision of law, if the county of 37 Ontario imposes the additional one-eighth of one percent and the addi- 38 tional three-eighths of one percent rates of tax authorized pursuant to 39 clause two of subparagraph (i) of the opening paragraph of section 40 twelve hundred ten of this article, net collections from such additional 41 three-eighths of one percent rate of such taxes shall be set aside for 42 county purposes and shall not be subject to any agreement entered into 43 by the county and the cities in the county pursuant to the authority of 44 subdivision (c) of section twelve hundred sixty-two of this part or this 45 section. 46 (2) Notwithstanding the provisions of subdivision (c) of section 47 twelve hundred sixty-two of this part to the contrary, if the cities of 48 Canandaigua and Geneva in the county of Ontario do not impose sales and 49 compensating use taxes pursuant to the authority of section twelve 50 hundred ten of this article and such cities and county enter into an 51 agreement pursuant to the authority of subdivision (c) of section twelve 52 hundred sixty-two of this part to be effective March first, two thousand 53 six, such agreement may provide that: 54 § 21. Section 1262-s of the tax law, as amended by section 3 of item U 55 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 56 to read as follows:S. 4009 47 A. 3009 1 § 1262-s. Disposition of net collections from the additional one-quar- 2 ter of one percent rate of sales and compensating use taxes in the coun- 3 ty of Herkimer. Notwithstanding any contrary provision of law, if the 4 county of Herkimer imposes [the additional] sales and compensating use 5 tax at a rate that is one and one-quarter [of one] percent [rate of6sales and compensating use taxes] additional to the three percent rate 7 authorized by section twelve hundred ten of this article as authorized 8 by [section twelve hundred ten-E] clause two of subparagraph (i) of the 9 opening paragraph of section twelve hundred ten of this article [for all10or any portion of the period beginning December first, two thousand11seven and ending November thirtieth, two thousand twenty-three], the 12 county shall use all net collections [from such] attributable to the 13 additional one-quarter [of one] percent of such additional rate to pay 14 the county's expenses for the construction of additional correctional 15 facilities. The net collections from [the] such additional one-quarter 16 percent of such additional rate [imposed pursuant to section twelve17hundred ten-E of this article] shall be deposited in a special fund to 18 be created by such county separate and apart from any other funds and 19 accounts of the county. Any and all remaining net collections from such 20 additional tax, after the expenses of such construction are paid, shall 21 be deposited by the county of Herkimer in the general fund of such coun- 22 ty for any county purpose. 23 § 22. Section 1262-t of the tax law, as added by chapter 67 of the 24 laws of 2015, is amended to read as follows: 25 § 1262-t. City of Yonkers - disposition of net collections from the 26 additional one-half of one percent rate of sales and compensating use 27 taxes in the city of Yonkers. Notwithstanding any provision of law to 28 the contrary, if the city of Yonkers imposes the additional one-half of 29 one percent rate of sales and compensating use taxes authorized by [item30(b) of clause one of] subparagraph (ii) of the opening paragraph of 31 section twelve hundred ten of this article, the city shall use the net 32 collections from such additional one-half of one percent rate solely for 33 the support of education, unless the city council votes, on an annual 34 basis, to use such net collections for a different purpose of the city, 35 provided, however, that the requirements of paragraph b of subdivision 36 five-b of section two thousand five hundred seventy-six of the education 37 law are met. 38 § 23. The tax law is amended by adding a new section 1262-w to read as 39 follows: 40 § 1262-w. Disposition of net collections from the additional rate of 41 sales and compensating use tax in Clinton county. Notwithstanding any 42 contrary provision of law, if the county of Clinton imposes the addi- 43 tional one percent rate of sales and compensating use taxes authorized 44 pursuant to clause two of subparagraph (i) of the opening paragraph of 45 section twelve hundred ten of this article, net collections from such 46 additional rate shall be paid to the county and the county shall set 47 aside such net collections and use them solely for county purposes. Such 48 net collections shall not be subject to any revenue distribution agree- 49 ment entered into by the county and the city in the county pursuant to 50 the authority of subdivision (c) of section twelve hundred sixty-two of 51 this part. 52 § 24. The tax law is amended by adding a new section 1262-x to read as 53 follows: 54 § 1262-x. Allocation and distribution of net collections from the 55 additional one percent rate of sales and compensating use taxes in West- 56 chester county. Notwithstanding any provision of law to the contrary,S. 4009 48 A. 3009 1 if the county of Westchester imposes the additional one percent rate of 2 sales and compensating use tax authorized by section twelve hundred ten 3 of this article, the county shall allocate and credit or pay net 4 collections from such additional one percent rate with respect to the 5 area of the county outside any city imposing sales and compensating use 6 taxes at a rate of one and one-half percent or greater pursuant to the 7 authority of subdivision (a) or at any rate pursuant to the authority of 8 subdivision (b) of section twelve hundred ten of this article as 9 follows: 10 (1) Seventy percent of such net collections shall be retained by the 11 county to be used for any county purpose. 12 (2) Ten percent of such net collections shall be allocated and paid 13 quarterly by the county commissioner of finance, in cash, to the several 14 school districts in such area of the county outside any such city impos- 15 ing sales and compensating use taxes. Such allocation and payment, to 16 such several school districts, shall be made on the basis of the ratio 17 which the population of each such school district bears to the aggregate 18 population of all of the school districts in such area. In the case of 19 school districts which are partially within and partially without the 20 county, or partially within or partially without the area of the county 21 outside a city imposing sales and compensating use taxes, the allocation 22 and payment to each such school district shall be made on the basis of 23 the population in such school district in the county, or in such area of 24 the county outside a city imposing sales and compensating use taxes, as 25 the case may be. Such populations shall be determined in accordance with 26 the latest federal census or special population census under section 27 twenty of the general municipal law completed and published prior to the 28 end of the quarter in which such allocation and payment are made, which 29 special population census shall include the entire area of the county; 30 provided that such special population census shall not be taken more 31 than once in every two years. A school district split between Westches- 32 ter county and another county shall apply such allocation and payment 33 solely to the benefit of the residents of the county in which the sales 34 and compensating use taxes are imposed. 35 (3) Twenty percent of such net collections shall be allocated and paid 36 quarterly by the county commissioner of finance, in cash, to the cities 37 not imposing sales and compensating use taxes and to the towns and 38 villages on which such rate is imposed, on the basis of the ratio which 39 the population of each such city, town or village on which such rate is 40 imposed bears to the entire population of all such cities, towns and 41 villages in the area on which such rate is imposed. Such populations 42 shall be determined in accordance with the latest federal census or 43 special population census under section twenty of the general municipal 44 law completed and published prior to the end of the quarter in which 45 such allocation is made, which special population census shall include 46 the entire area of the county; provided that such special population 47 census shall not be taken more than once in every two years. 48 § 25. Paragraph 2 of subdivision (c) of section 1261 of the tax law, 49 as amended by chapter 67 of the laws of 2015, is amended to read as 50 follows: 51 (2) However, the taxes, penalties and interest from the additional one 52 percent rate which the city of Yonkers is authorized to impose pursuant 53 to [item (a) of clause one of] subparagraph (ii) of the opening para- 54 graph of section twelve hundred ten of this article, after the comp- 55 troller has reserved such refund fund and such cost shall be paid to the 56 special sales and compensating use tax fund for the city of YonkersS. 4009 49 A. 3009 1 established by section ninety-two-f of the state finance law at the 2 times set forth in the preceding sentence. 3 § 26. The tax law is amended by adding a new section 1265 to read as 4 follows: 5 § 1265. References to certain provisions authorizing additional rates. 6 Notwithstanding any provision of law to the contrary, any reference in 7 any section of this chapter or other law, or in any local law, ordi- 8 nance, or resolution adopted pursuant to the authority of this article, 9 to net collections or revenues from a tax imposed by a county or city 10 pursuant to the authority of a clause, or to a subclause of a clause, of 11 subparagraph (i) or (ii) of the opening paragraph of section twelve 12 hundred ten of this article repealed by section one or two of a part of 13 the chapter of the laws of two thousand twenty-three that added this 14 section or pursuant to section twelve hundred ten-E of this article 15 repealed by section five of such part shall be deemed to be a reference 16 to net collections or revenues from a tax imposed by that county or city 17 pursuant to the authority of the equivalent provision of clause two of 18 subparagraph (i) or to subparagraph (ii) of the opening paragraph of 19 such section twelve hundred ten as added by such section one or two of 20 such part of the chapter of the laws of two thousand twenty-three. 21 § 27. Section 7 of chapter 67 of the laws of 2015, amending the tax 22 law relating to authorizing the city of Yonkers to impose additional 23 sales tax, as amended by section 2 of item CCC of subpart C of part XXX 24 of chapter 58 of the laws of 2020, is amended to read as follows: 25 § 7. This act shall take effect immediately [and shall expire and be26deemed repealed November 30, 2023]. 27 § 28. Section 2 of item R of subpart C of part XXX of chapter 58 of 28 the laws of 2020 amending the tax law relating to extending the expira- 29 tion of the authorization to the county of Genesee to impose an addi- 30 tional one percent of sales and compensating use taxes, is amended to 31 read as follows: 32 § 2. Notwithstanding any other provision of law to the contrary, the 33 one percent increase in sales and compensating use taxes authorized for 34 the county of Genesee [until November 30, 2023] pursuant to [clause 2035of subparagraph (i) of the opening paragraph of] section 1210 of the tax 36 law[, as amended by section one of this act,] shall be divided in the 37 same manner and proportion as the existing three percent sales and 38 compensating use taxes in such county are divided. 39 § 29. Section 2 of item Z of subpart C of part XXX of chapter 58 of 40 the laws of 2020 amending the tax law relating to the imposition of 41 sales and compensating use taxes by the county of Monroe, is amended 42 to read as follows: 43 § 2. Notwithstanding the provisions of subdivisions (b) and (c) of 44 section 1262 and section 1262-g of the tax law, net collections, as such 45 term is defined in section 1262 of the tax law, derived from the imposi- 46 tion of sales and compensating use taxes by the county of Monroe at the 47 additional rate of one percent as authorized pursuant to [clause (25) of48subparagraph (i) of the opening paragraph of] section 1210 of the tax 49 law[, as amended by section one of this act,] which are in addition to 50 the current net collections derived from the imposition of such taxes at 51 the three percent rate authorized by [the opening paragraph of] section 52 1210 of the tax law, shall be distributed and allocated as follows: for 53 [the] any period [of] beginning on or after December 1, 2020 [through54November 30, 2023] in cash, five percent to the school districts in the 55 area of the county outside the city of Rochester, three percent to the 56 towns located within the county, one and one-quarter percent to theS. 4009 50 A. 3009 1 villages located within the county, and ninety and three-quarters 2 percent to the city of Rochester and county of Monroe. The amount of the 3 ninety and three-quarters percent to be distributed and allocated to the 4 city of Rochester and county of Monroe shall be distributed and allo- 5 cated to each so that the combined total distribution and allocation to 6 each from the sales tax revenues pursuant to sections 1262 and 1262-g of 7 the tax law and this section shall result in the same total amount being 8 distributed and allocated to the city of Rochester and county of Monroe. 9 The amount so distributed and allocated to the county shall be used for 10 county purposes. The foregoing cash payments to the school districts 11 shall be allocated on the basis of the enrolled public school pupils, 12 thereof, as such term is used in subdivision (b) of section 1262 of the 13 tax law, residing in the county of Monroe. The cash payments to the 14 towns located within the county of Monroe shall be allocated on the 15 basis of the ratio which the population of each town, exclusive of the 16 population of any village or portion thereof located within a town, 17 bears to the total population of the towns, exclusive of the population 18 of the villages located within such towns. The cash payments to the 19 villages located within the county shall be allocated on the basis of 20 the ratio which the population of each village bears to the total popu- 21 lation of the villages located within the county. The term population as 22 used in this section shall have the same meaning as used in subdivision 23 (b) of section 1262 of the tax law. 24 § 30. Section 4 of item EE of subpart C of part XXX of chapter 58 of 25 the laws of 2020 amending the tax law relating to extending the authori- 26 zation of the county of Onondaga to impose an additional rate of sales 27 and compensating use taxes, is amended to read as follows: 28 § 4. Notwithstanding any contrary provision of law, net collections 29 from the additional one percent rate of sales and compensating use taxes 30 which may be imposed by the county of Onondaga during [the] any period 31 commencing on or after December 1, 2022 [and ending November 30, 2023], 32 pursuant to the authority of section 1210 of the tax law, shall not be 33 subject to any revenue distribution agreement entered into under subdi- 34 vision (c) of section 1262 of the tax law, but shall be allocated and 35 distributed or paid, at least quarterly, as follows: (i) 1.58% to the 36 county of Onondaga for any county purpose; (ii) 97.79% to the city of 37 Syracuse; and (iii) .63% to the school districts in accordance with 38 subdivision (a) of section 1262 of the tax law. 39 § 31. Section 2 of item GG of subpart C of part XXX of chapter 58 of 40 the laws of 2020 amending the tax law relating to extending the authori- 41 ty of the county of Orange to impose an additional rate of sales and 42 compensating use taxes, is amended to read as follows: 43 § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, 44 net collections from any additional rate of sales and compensating use 45 taxes which may be imposed by the county of Orange [during the] for any 46 period commencing on or after December 1, 2020, [and ending November 30,472023,] pursuant to the authority of section 1210 of the tax law, shall 48 be paid to the county of Orange and shall be used by such county solely 49 for county purposes and shall not be subject to any revenue distribution 50 agreement entered into pursuant to the authority of subdivision (c) of 51 section 1262 of the tax law. 52 § 32. Section 3 of item XX of subpart C of part XXX of chapter 58 of 53 the laws of 2020 amending the tax law relating to extending the authori- 54 ty of the county of Ulster to impose an additional 1 percent sales and 55 compensating use tax, is amended to read as follows:S. 4009 51 A. 3009 1 § 3. If, pursuant to the authority of this act, the county of Ulster 2 imposes sales and compensating use taxes at a rate greater than three 3 percent for all or any portion of [the] any period commencing on or 4 after September 1, 2002, [and ending November 30, 2023,] net collections 5 from such additional rate of tax imposed during such period shall be 6 deemed to be, and shall be included in, net collections subject to such 7 county's existing agreement with the city of Kingston entered into 8 pursuant to subdivision (c) of section 1262 of the tax law and such net 9 collections shall be allocated in accordance with such agreement. 10 § 33. This act shall take effect immediately. 11 PART P 12 Section 1. Section 1299-C of the tax law is REPEALED. 13 § 2. Notwithstanding any provision of law to the contrary, there shall 14 be no refund of any registration fees paid prior to the effective date 15 of this act. 16 § 3. This act shall take effect immediately. 17 PART Q 18 Section 1. Section 285-a of the tax law is amended by adding a new 19 subdivision 4 to read as follow: 20 4. Upon each sale of motor fuel, other than a sale that is otherwise 21 exempt under this article, the distributor must charge the tax imposed 22 by this article to the purchaser on each gallon sold. If the taxes 23 imposed by this article have not already been assumed or paid by a 24 distributor on any quantity of such fuel for any reason, including, but 25 not limited to, the expansion of such fuel as a result of temperature 26 fluctuation, the distributor must remit such taxes to the commissioner 27 on the return for the period in which such sale was made. 28 § 2. Section 285-b of the tax law is amended by adding a new subdivi- 29 sion 5 to read as follows: 30 5. Upon each sale of Diesel motor fuel, other than a sale that is 31 otherwise exempt under this article, the distributor must charge the tax 32 imposed by this article to the purchaser on each gallon sold. If the 33 taxes imposed by this article have not already been assumed or paid by a 34 distributor on any quantity of such fuel for any reason, including, but 35 not limited to, the expansion of such fuel as a result of temperature 36 fluctuation, the distributor must remit such taxes to the commissioner 37 on the return for the period in which such sale was made. 38 § 3. Section 308 of the tax law is amended by adding a new subdivision 39 (j) to read as follows: 40 (j) Every petroleum business subject to tax under this article that is 41 also a distributor, as defined in section two hundred eighty-two of this 42 chapter, must charge the tax imposed by this article to the purchaser on 43 each gallon sold, unless otherwise exempt. If the taxes imposed by this 44 article have not already been assumed or paid by such petroleum business 45 on any quantity of such fuel for any reason, including, but not limited 46 to, the expansion of such fuel as a result of temperature fluctuation, 47 such petroleum business must remit such taxes to the commissioner on the 48 return for the period in which such sale was made. 49 § 4. Section 1102 of the tax law is amended by adding a new subdivi- 50 sion (g) to read as follows: 51 (g) The tax imposed by this section must be charged on the sale, other 52 than a retail sale or a sale that is otherwise exempt under this arti-S. 4009 52 A. 3009 1 cle, of each gallon of motor fuel or Diesel motor fuel. If the taxes 2 imposed by this section have not already been assumed or paid by the 3 distributor on any quantity of such fuel for any reason, including, but 4 not limited to, the expansion of such fuel as a result of temperature 5 fluctuation, the distributor must remit such taxes to the commissioner 6 on the return for the period in which such sale was made. 7 § 5. This act shall take effect on September 1, 2023 and shall apply 8 to sales of motor fuel and Diesel motor fuel on or after such date. 9 PART R 10 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 11 section 1115 of the tax law, as amended by section 1 of part GG of chap- 12 ter 59 of the laws of 2022, is amended to read as follows: 13 (B) Until May [thirty first] thirty-first, two thousand [twenty-three] 14 twenty-four, the food and drink excluded from the exemption provided by 15 clauses (i), (ii) and (iii) of subparagraph (A) of this paragraph, and 16 bottled water, shall be exempt under this subparagraph: (i) when sold 17 for one dollar and fifty cents or less through any vending machine oper- 18 ated by a participant in the "business enterprise program", as such term 19 is defined in paragraph two of subdivision a of section eleven-a of 20 chapter four hundred fifteen of the laws of nineteen hundred thirteen 21 that accepts coin or currency only; or (ii) when sold for two dollars or 22 less through any vending machine operated by such a participant that 23 accepts any form of payment other than coin or currency, whether or not 24 it also accepts coin or currency. 25 § 2. This act shall take effect June 1, 2023. 26 PART S 27 Section 1. Subdivision 1 of section 471 of the tax law, as amended by 28 section 1 of part D of chapter 134 of the laws of 2010, is amended to 29 read as follows: 30 1. There is hereby imposed and shall be paid a tax on all cigarettes 31 possessed in the state by any person for sale, except that no tax shall 32 be imposed on cigarettes sold under such circumstances that this state 33 is without power to impose such tax, including sales to qualified Indi- 34 ans for their own use and consumption on their nations' or tribes' qual- 35 ified reservation, or sold to the United States or sold to or by a 36 voluntary unincorporated organization of the armed forces of the United 37 States operating a place for the sale of goods pursuant to regulations 38 promulgated by the appropriate executive agency of the United States, to 39 the extent provided in such regulations and policy statements of such an 40 agency applicable to such sales. The tax imposed by this section is 41 imposed on all cigarettes sold on an Indian reservation to non-members 42 of the Indian nation or tribe and to non-Indians and evidence of such 43 tax shall be by means of an affixed cigarette tax stamp. Indian nations 44 or tribes may elect to participate in the Indian tax exemption coupon 45 system established in section four hundred seventy-one-e of this article 46 which provides a mechanism for the collection of the tax imposed by this 47 section on cigarette sales on qualified reservations to such non-members 48 and non-Indians and for the delivery of quantities of tax-exempt ciga- 49 rettes to Indian nations or tribes for the personal use and consumption 50 of qualified members of the Indian nation or tribe. If an Indian nation 51 or tribe does not elect to participate in the Indian tax exemption 52 coupon system, the prior approval system shall be the mechanism for theS. 4009 53 A. 3009 1 delivery of quantities of tax-exempt cigarettes to Indian nations or 2 tribes for the personal use and consumption of qualified members of the 3 Indian nation or tribe as provided for in paragraph (b) of subdivision 4 five of this section. Such tax on cigarettes shall be at the rate of 5 [four] five dollars and thirty-five cents for each twenty cigarettes or 6 fraction thereof, provided, however, that if a package of cigarettes 7 contains more than twenty cigarettes, the rate of tax on the cigarettes 8 in such package in excess of twenty shall be one dollar and [eight] 9 thirty-three and three-quarters cents for each five cigarettes or frac- 10 tion thereof. Such tax is intended to be imposed upon only one sale of 11 the same package of cigarettes. It shall be presumed that all cigarettes 12 within the state are subject to tax until the contrary is established, 13 and the burden of proof that any cigarettes are not taxable hereunder 14 shall be upon the person in possession thereof. 15 § 2. Section 471-a of the tax law, as amended by section 5 of part D 16 of chapter 134 of the laws of 2010, is amended to read as follows: 17 § 471-a. Use tax on cigarettes. There is hereby imposed and shall be 18 paid a tax on all cigarettes used in the state by any person, except 19 that no tax shall be imposed (1) if the tax provided in section four 20 hundred seventy-one of this article is paid, (2) on the use of ciga- 21 rettes which are exempt from the tax imposed by said section, or (3) on 22 the use of four hundred or less cigarettes, brought into the state on, 23 or in the possession of, any person. Such tax on cigarettes shall be at 24 the rate of [four] five dollars and thirty-five cents for each twenty 25 cigarettes or fraction thereof, provided, however, that if a package of 26 cigarettes contains more than twenty cigarettes, the rate of tax on the 27 cigarettes in such package in excess of twenty shall be one dollar and 28 [eight] thirty-three and three-quarters cents for each five cigarettes 29 or fraction thereof. Within twenty-four hours after liability for the 30 tax accrues, each such person shall file with the commissioner a return 31 in such form as the commissioner may prescribe together with a remit- 32 tance of the tax shown to be due thereon. For purposes of this article, 33 the word "use" means the exercise of any right or power actual or 34 constructive and shall include but is not limited to the receipt, stor- 35 age or any keeping or retention for any length of time, but shall not 36 include possession for sale. All other provisions of this article if not 37 inconsistent shall apply to the administration and enforcement of the 38 tax imposed by this section in the same manner as if the language of 39 said provisions had been incorporated in full into this section. 40 § 3. Notwithstanding any other provision of law to the contrary, the 41 tax due on cigarettes possessed in New York state as of the close of 42 business on August 31, 2023, by any person for sale solely attributable 43 to the increase imposed by the amendments to section 471 of the tax law, 44 as amended by section one of this act, shall be paid by November 20, 45 2023, subject to such terms and conditions as the commissioner of taxa- 46 tion and finance shall prescribe. 47 § 4. This act shall take effect on September 1, 2023, and shall apply 48 to all cigarettes possessed in this state by any person for sale and all 49 cigarettes used in this state by any person on or after such date. 50 PART T 51 Section 1. Subdivision 4 of section 474 of the tax law, as amended by 52 chapter 61 of the laws of 1989, is amended to read as follows: 53 4. (a) At the time of delivering cigarettes to any person each agent 54 or wholesale dealer, and at the time of delivering tobacco products toS. 4009 54 A. 3009 1 any person each distributor or wholesale dealer of tobacco products, 2 shall make a true duplicate invoice showing the date of delivery, the 3 number of packages and number of cigarettes contained therein, in each 4 shipment of cigarettes delivered, and the items and quantity and whole- 5 sale price of each item in each shipment of tobacco products delivered, 6 and the name of the purchaser to whom delivery is made, and shall retain 7 the same for a period of three years subject to the use and inspection 8 of the commissioner [of taxation and finance]. Each dealer shall procure 9 and retain invoices showing the number of packages and number of ciga- 10 rettes contained therein, in each shipment of cigarettes received by him 11 or her, and the items and quantity and wholesale price of each item in 12 each shipment of tobacco products received by him or her, the date ther- 13 eof, and the name of the shipper, and shall retain the same for a period 14 of three years subject to the use and inspection of the commissioner [of15taxation and finance]. The commissioner [of taxation and finance] by 16 regulation may provide that whenever cigarettes or tobacco products are 17 shipped into the state, the railroad company, express company, trucking 18 company or other public carrier transporting any shipment thereof shall 19 file with the commissioner [of taxation and finance] a copy of the 20 freight bill within ten days after the delivery in the state of each 21 shipment. All dealers shall maintain and keep for a period of three 22 years such other records of cigarettes or tobacco products received, 23 sold or delivered within the state as may be required by the commission- 24 er [of taxation and finance]. The commissioner [of taxation and finance] 25 is hereby authorized to examine the books, papers, invoices and other 26 records of any person in possession, control or occupancy of any prem- 27 ises where cigarettes or tobacco products are placed, stored, sold or 28 offered for sale, and the equipment of any such person pertaining to the 29 stamping of cigarettes or the sale and delivery of cigarettes or tobacco 30 products taxable under this article, as well as the stock of cigarettes 31 or tobacco products in any such premises or vehicle. To verify the accu- 32 racy of the tax imposed and assessed by this article, each such person 33 is hereby directed and required to give to the commissioner [of taxation34and finance] or his or her duly authorized representatives, the means, 35 facilities and opportunity for such examinations as are herein provided 36 for and required. 37 (b) If a retail dealer, or its employees or agents, refuses to give 38 the commissioner or his or her duly authorized representatives, the 39 means, facilities and opportunity for such examinations as are required 40 and provided for by this section: (i) its registration to sell ciga- 41 rettes and tobacco products shall be revoked for a period of one year; 42 (ii) for a second such failure within a period of three years, its 43 registration shall be permanently revoked. If such retail dealer does 44 not possess a valid registration, either because it failed to obtain a 45 registration or its registration is suspended or revoked at the time of 46 such refusal, the retail dealer shall be subject to a penalty of up to 47 five thousand dollars for a first refusal and up to ten thousand dollars 48 for a second refusal within three years. 49 § 2. This act shall take effect immediately. 50 PART U 51 Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of 52 subdivision (b) of section 1402 of the tax law, as amended by section 1 53 of item UUU of subpart B of part XXX of chapter 58 of the laws of 2020, 54 is amended to read as follows:S. 4009 55 A. 3009 1 For purposes of this subdivision, the phrase "real estate investment 2 trust transfer" shall mean any conveyance of real property or an inter- 3 est therein to a REIT, or to a partnership or corporation in which a 4 REIT owns a controlling interest immediately following the conveyance, 5 which conveyance (I) occurs in connection with the initial formation of 6 the REIT, provided that the conditions set forth in clauses (i) and (ii) 7 of this subparagraph are satisfied, or (II) in the case of any real 8 estate investment trust transfer occurring on or after July thirteenth, 9 nineteen hundred ninety-six and before September first, two thousand 10 [twenty-three] twenty-six, is described in the last sentence of this 11 subparagraph. 12 § 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section 13 1201 of the tax law, as amended by section 2 of item UUU of subpart B of 14 part XXX of chapter 58 of the laws of 2020, is amended to read as 15 follows: 16 (2) any issuance or transfer of an interest in a REIT, or in a part- 17 nership or corporation in which a REIT owns a controlling interest imme- 18 diately following the issuance or transfer, in connection with a trans- 19 action described in subparagraph one of this paragraph. Notwithstanding 20 the foregoing, a transaction described in the preceding sentence shall 21 not constitute a real estate investment trust transfer unless (A) it 22 occurs in connection with the initial formation of the REIT and the 23 conditions described in subparagraphs three and four of this paragraph 24 are satisfied, or (B) in the case of any real estate investment trust 25 transfer occurring on or after July thirteenth, nineteen hundred nine- 26 ty-six and before September first, two thousand [twenty-three] twenty- 27 six, the transaction is described in subparagraph five of this paragraph 28 in which case the provisions of such subparagraph shall apply. 29 § 3. Subparagraph (B) of paragraph 2 of subdivision e of section 30 11-2102 of the administrative code of the city of New York, as amended 31 by section 3 of item UUU of subpart B of part XXX of chapter 58 of the 32 laws of 2020, is amended to read as follows: 33 (B) any issuance or transfer of an interest in a REIT, or in a part- 34 nership or corporation in which a REIT owns a controlling interest imme- 35 diately following the issuance or transfer in connection with a trans- 36 action described in subparagraph (A) of this paragraph. Notwithstanding 37 the foregoing, a transaction described in the preceding sentence shall 38 not constitute a real estate investment trust transfer unless (i) it 39 occurs in connection with the initial formation of the REIT and the 40 conditions described in subparagraphs (C) and (D) of this paragraph are 41 satisfied, or (ii) in the case of any real estate investment trust 42 transfer occurring on or after July thirteenth, nineteen hundred nine- 43 ty-six and before September first, two thousand [twenty-three] twenty- 44 six, the transaction is described in subparagraph (E) of this paragraph 45 in which case the provision of such subparagraph shall apply. 46 § 4. This act shall take effect immediately. 47 PART V 48 Section 1. Section 2016 of the tax law, as amended by chapter 401 of 49 the laws of 1987, is amended to read as follows: 50 § 2016. Judicial review. A decision of the tax appeals tribunal, which 51 is not subject to any further administrative review, shall finally and 52 irrevocably decide all the issues which were raised in proceedings 53 before the division of tax appeals upon which such decision is based 54 unless, within four months after notice of such decision is served byS. 4009 56 A. 3009 1 the tax appeals tribunal upon every party to the proceeding before such 2 tribunal by certified mail or personal service, the petitioner who 3 commenced the proceeding [petitions] or the commissioner, or both, peti- 4 tion for judicial review in the manner provided by article seventy-eight 5 of the civil practice law and rules, except as otherwise provided in 6 this [section] chapter. Such service by certified mail shall be 7 complete upon deposit of such notice, enclosed in a post-paid properly 8 addressed wrapper, in a post office or official depository under the 9 exclusive care and custody of the United States postal service. [The] 10 Where the petitioner who commenced the proceeding before the division of 11 tax appeals files a petition for judicial review, the petition shall 12 designate the tax appeals tribunal and the commissioner [of taxation and13finance] as respondents in the proceeding for judicial review. Where 14 the commissioner files a petition for judicial review, the petition 15 shall designate the tax appeals tribunal and the petitioner who 16 commenced the proceeding before the division of tax appeals as respond- 17 ents in the proceeding for judicial review. The tax appeals tribunal 18 shall not participate in proceedings for judicial review of its deci- 19 sions and such proceedings for judicial review shall be commenced in the 20 appellate division of the supreme court, third department. In all other 21 respects the provisions and standards of article seventy-eight of the 22 civil practice law and rules shall apply. The record to be reviewed in 23 such proceedings for judicial review shall include the determination of 24 the administrative law judge, the decision of the tax appeals tribunal, 25 the stenographic transcript of the hearing before the administrative law 26 judge, the transcript of any oral proceedings before the tax appeals 27 tribunal and any exhibit or document submitted into evidence at any 28 proceeding in the division of tax appeals upon which such decision is 29 based. 30 § 2. This act shall take effect immediately and shall apply to deci- 31 sions and orders issued by the tax appeals tribunal on or after such 32 date. 33 PART W 34 Section 1. Subdivision 1 of section 105 of the state finance law, as 35 amended by chapter 204 of the laws of 2002, is amended to read as 36 follows: 37 1. All moneys received by the commissioner of taxation and finance on 38 account of the state, excepting such moneys as are required by law to be 39 deposited to the credit of the comptroller, but including such moneys as 40 are thereafter paid into the state treasury by the comptroller, shall be 41 deposited by the commissioner of taxation and finance within three busi- 42 ness days after the receipt thereof, either as a demand deposit or an 43 interest-bearing time deposit (other than a time certificate of depos- 44 it), as [he] the commissioner and the comptroller may determine, in such 45 banks, trust companies and industrial banks as in [his] the opinion of 46 the commissioner and the opinion of the comptroller are secure. The 47 moneys so deposited shall be placed to the account of the commissioner 48 of taxation and finance. [He] The commissioner shall keep a bankbook in 49 which shall be entered [his] their account of deposit in and moneys 50 drawn from the banks and trust companies and industrial banks in which 51 deposits are made by [him] the commissioner, which [he] they shall 52 exhibit to the comptroller for [his] inspection on the first Tuesday of 53 every month and oftener if required. [He] The commissioner shall not 54 draw any moneys from such banks, trust companies or industrial banksS. 4009 57 A. 3009 1 unless by checks signed and countersigned in the manner prescribed by 2 section one hundred one, unless otherwise provided by law. No moneys 3 shall be paid by any such bank, trust company or industrial bank out of 4 any such deposit except upon such checks. Moneys may be paid through 5 electronic transfer in accordance with procedures developed by the 6 commissioner of taxation and finance and the comptroller and consistent 7 with the requirements of this section for recording payments. Such 8 payments through electronic transfer shall be considered, for purposes 9 of this chapter, to be moneys drawn by check. Every such bank, trust 10 company or industrial bank shall transmit to the comptroller monthly 11 statements of all moneys received and paid by it on account of the 12 commissioner of taxation and finance. 13 § 2. This act shall take effect immediately. 14 PART X 15 Section 1. Legislative findings. The legislature finds that it is in 16 the interests of the state to assist The New York Racing Association, 17 Inc., which is the franchised corporation pursuant to section two 18 hundred six of the racing, pari-mutuel wagering and breeding law, to 19 renovate Belmont Park racetrack and repurpose the Aqueduct property. 20 The legislature further finds and determines that the anticipated cost 21 of renovating Belmont Park racetrack is four hundred fifty-five million 22 dollars and that the renovation of Belmont Park racetrack shall initial- 23 ly be financed by the state subject to the provisions of the repayment 24 agreement of the franchised corporation required by section two of this 25 act. The franchised corporation will be responsible for repayment of the 26 state funds in accordance with the terms of such repayment agreement. 27 § 2. Prior to, and as a condition to the state initially providing 28 funds for the renovation of Belmont Park racetrack, the franchised 29 corporation shall enter into a repayment agreement with the state 30 authorizing and directing that a portion of the funds of the franchised 31 corporation dedicated for capital expenditures of the franchised corpo- 32 ration pursuant to paragraph 3 of subdivision f and paragraph 3 of 33 subdivision f-1 of section 1612 of the tax law shall be used to repay 34 the state for the funds provided by the state for the renovation of 35 Belmont Park racetrack, in accordance with the repayment agreement 36 between the state and the franchised corporation. Such agreement shall 37 further provide that in the event the franchised corporation receives 38 future statutory payments enacted for the specific purpose of holding 39 the franchised corporation harmless for any loss of payments pursuant to 40 paragraph 3 of subdivision f and paragraph 3 of subdivision f-1 of 41 section 1612 of the tax law, such statutory payments shall also be used 42 to repay the state for the funds provided by the state for the reno- 43 vation of Belmont Park racetrack. Such agreement may also be amended 44 from time to time as agreed to by the state and the franchised corpo- 45 ration. At any time prior to the repayment of the state funds for the 46 renovation of Belmont Park racetrack, the state may issue state personal 47 income tax revenue bonds or state sales tax revenue bonds. In the event 48 of the issuance of such bonds, the repayment agreement shall be revised 49 to reflect the obligation of the franchised corporation to fully repay 50 the debt service costs associated with such bonds. 51 § 3. Prior to, and as a condition of, the state initially providing 52 funds for the renovation of Belmont Park racetrack, the franchised 53 corporation shall also enter into an agreement with the state relin- 54 quishing to the state its leasehold interest in real property located inS. 4009 58 A. 3009 1 South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial 2 completion of the renovation of Belmont Park racetrack. 3 § 4. The New York State Gaming Commission shall ensure that to the 4 extent that the law allows for a franchise agreement for the operation 5 of Belmont Park racetrack with a franchisee other than the franchised 6 corporation, the term of any such franchise agreement awarded after 7 funding provided by the state for the renovation of Belmont Park race- 8 track described by section one of this act shall include a provision 9 obligating such franchisee to assume the payments of the franchised 10 corporation required by section two of this act. 11 § 5. The opening paragraph of paragraph 3 of subdivision f of section 12 1612 of the tax law is designated subparagraph (i) and a new subpara- 13 graph (ii) is added to read as follows: 14 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event 15 the state provides funds to the franchised corporation for the reno- 16 vation of Belmont Park racetrack, out of the amount payable to the fran- 17 chised corporation for capital expenditures pursuant to subparagraph (i) 18 of this paragraph during any state fiscal year, an amount pursuant to 19 the repayment agreement between the state and the franchised corporation 20 shall instead be deposited into the miscellaneous capital projects fund, 21 New York racing capital improvement fund as required to repay the state 22 for funds provided for the renovation of Belmont Park racetrack. Any 23 amount payable to the franchised corporation in any state fiscal year 24 for capital expenditures pursuant to subparagraph (i) of this paragraph 25 in excess of the amount pursuant to the repayment agreement between 26 the state and the franchised corporation shall be deposited pursuant to 27 subparagraph (i) of this paragraph. Once the state has been fully reim- 28 bursed for the costs related to the renovation of Belmont Park race- 29 track, this subparagraph shall no longer apply and subparagraph (i) of 30 this paragraph shall apply. 31 § 6. The opening paragraph of paragraph 3 of subdivision f-1 of 32 section 1612 of the tax law is designated subparagraph (i) and a new 33 subparagraph (ii) is added to read as follows: 34 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event 35 the state provides funds to the franchised corporation for the reno- 36 vation of Belmont Park racetrack, and in the event the amount deposited 37 pursuant to subparagraph (ii) of paragraph three of subdivision f of 38 this section is insufficient to make the required repayment pursuant to 39 such subparagraph during any state fiscal year, an amount payable to the 40 franchised corporation for capital expenditures pursuant to subparagraph 41 (i) of this paragraph shall instead be deposited into the miscellaneous 42 capital projects fund, New York racing capital improvement fund to the 43 extent necessary, when combined with the amount set forth in subpara- 44 graph (ii) of paragraph three of subdivision f of this section, to make 45 any required repayment of funds provided by the state related to the 46 renovation of Belmont Park racetrack during such fiscal year. Any amount 47 payable to the franchised corporation in any state fiscal year for capi- 48 tal expenditures pursuant to subparagraph (i) of this paragraph in 49 excess of the amount pursuant to the repayment agreement between the 50 state and the franchised corporation shall be deposited pursuant to 51 subparagraph (i) of this paragraph. Once the state has been fully reim- 52 bursed for such costs related to the renovation of Belmont Park race- 53 track, this subparagraph shall no longer apply and subparagraph (i) of 54 this paragraph shall apply. 55 § 7. The state comptroller is hereby authorized and directed to loan 56 money in accordance with the provisions set forth in subdivision 5 ofS. 4009 59 A. 3009 1 section 4 of the state finance law to the miscellaneous capital projects 2 fund, New York racing capital improvement fund. 3 § 8. 1. Notwithstanding any other provisions of law to the contrary, 4 the dormitory authority, the urban development corporation, and the New 5 York state thruway authority are hereby authorized to issue personal 6 income tax revenue bonds or notes or state sales tax revenue bonds or 7 notes in one or more series in an aggregate principal amount not to 8 exceed four hundred fifty-five million dollars ($455,000,000) excluding 9 bonds or notes issued to pay costs of issuance of such bonds or notes 10 and bonds or notes issued to refund or otherwise repay such bonds or 11 notes previously issued, for the purpose of financing the renovation of 12 Belmont Park racetrack. 13 2. Notwithstanding any other provision of law to the contrary, in 14 order to assist the dormitory authority, urban development corporation, 15 and the New York state thruway authority in undertaking the financing 16 for the renovation of Belmont Park racetrack, the director of the budget 17 is hereby authorized to enter into one or more financing agreements with 18 the dormitory authority, the urban development corporation, and the New 19 York state thruway authority, upon such terms and conditions as the 20 director of the budget and the dormitory authority, the urban develop- 21 ment corporation and the New York state thruway authority agree, so as 22 to annually provide to the dormitory authority, the urban development 23 corporation, and the New York state thruway authority, in the aggregate, 24 a sum not to exceed the principal, interest, and related expenses 25 required for such bonds and notes. Any financing agreement entered into 26 pursuant to this section shall provide that the obligation of the state 27 to pay the amount therein provided shall not constitute a debt of the 28 state within the meaning of any constitutional or statutory provision 29 and shall be deemed executory only to the extent of monies available and 30 that no liability shall be incurred by the state beyond the monies 31 available for such purpose, subject to annual appropriation by the 32 legislature. Any such contract or any payments made or to be made there- 33 under may be assigned and pledged by the dormitory authority, the urban 34 development corporation, and the New York state thruway authority as 35 security for such bonds and notes, as authorized by this section. 36 § 9. Notwithstanding any law to the contrary, and in accordance with 37 section 4 of the state finance law, the comptroller is hereby authorized 38 and directed in each state fiscal year to transfer, upon request of the 39 director of the budget, up to the unencumbered balance or an amount up 40 to twenty-five million eight hundred thousand dollars ($25,800,000) from 41 the miscellaneous capital projects fund, New York racing capital 42 improvement fund to the general fund. 43 § 10. This act shall take effect immediately. 44 PART Y 45 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax 46 law, as amended by chapter 174 of the laws of 2013, is amended to read 47 as follows: 48 (1) sixty percent of the total amount for which tickets have been sold 49 for [a lawful lottery] the Quick Draw game [introduced on or after the50effective date of this paragraph,] subject to [the following provisions:51(A) such game shall be available only on premises occupied by licensed52lottery sales agents, subject to the following provisions:53(i) if the licensee does not hold a license issued pursuant to the54alcoholic beverage control law to sell alcoholic beverages for consump-S. 4009 60 A. 3009 1tion on the premises, then the premises must have a minimum square2footage greater than two thousand five hundred square feet;3(ii) notwithstanding the foregoing provisions, television equipment4that automatically displays the results of such drawings may be5installed and used without regard to the square footage if such premises6are used as:7(I) a commercial bowling establishment, or8(II) a facility authorized under the racing, pari-mutuel wagering and9breeding law to accept pari-mutuel wagers;10(B) the] rules for the operation of such game [shall be] as prescribed 11 by regulations promulgated and adopted by the division[, provided howev-12er, that such rules shall provide that no person under the age of twen-13ty-one may participate in such games on the premises of a licensee who14holds a license issued pursuant to the alcoholic beverage control law to15sell alcoholic beverages for consumption on the premises; and, provided,16further, that such regulations may be revised on an emergency basis not17later than ninety days after the enactment of this paragraph in order to18conform such regulations to the requirements of this paragraph]; or 19 § 2. This act shall take effect immediately. 20 PART Z 21 Section 1. The racing, pari-mutuel wagering and breeding law is 22 amended by adding a new section 502-a to read as follows: 23 § 502-a. Closure of Catskill regional off-track betting corporation. 24 1. Catskill regional off-track betting corporation established under 25 section five hundred two of this article is terminated, subject to the 26 satisfaction of outstanding debts and obligations and distribution of 27 any remaining assets, as set forth in this section. 28 2. Catskill regional off-track betting corporation shall continue in 29 its existence solely for the purpose of satisfying all outstanding debts 30 and obligations and distribution of any remaining assets, taking into 31 account the priority requirements of subdivision two of section five 32 hundred six and subdivision two of section five hundred sixteen of this 33 article. Such corporation shall submit a list of all outstanding debts 34 and obligations to the commission and a plan proposing the order in 35 which such debts and obligations shall be satisfied. The commission 36 shall approve or modify such plan. Once all debts and obligations are 37 satisfied or all available funds have been exhausted, and any remaining 38 assets are distributed, such corporation shall be terminated for all 39 purposes. Such corporation may use the following to satisfy its exist- 40 ing debts and obligations: 41 (a) in accordance with subdivision four of section five hundred nine 42 of this article, any remaining money in such corporation's capital 43 reserve fund, after use of such funds for payment of the principal of 44 bonds, interest on such bonds and the payment of any redemption premium 45 required, as set forth in such section; and 46 (b) in accordance with subdivision four of section five hundred nine-a 47 of this article, funds from its capital acquisition fund. 48 § 2. Paragraph c of subdivision 1 of section 509 of the racing, pari- 49 mutuel wagering and breeding law, as amended by chapter 243 of the laws 50 of 2020, is amended and a new subdivision 4 is added, to read as 51 follows: 52 c. Any other moneys that may be made available to the corporation for 53 the purpose of such capital reserve fund from any other source or sourc- 54 es. All moneys held in the capital reserve fund, except as [hereinafter]S. 4009 61 A. 3009 1 provided in this paragraph and in subdivision four of this section, 2 shall be used solely for the payment of the principal of bonds of the 3 corporation, the payment of interest on such bonds, or the payment of 4 any redemption premium required to be paid when such bonds are redeemed 5 prior to maturity; provided, however, that moneys in such capital 6 reserve fund shall not be withdrawn therefrom at any time in such amount 7 as would reduce the amount of such fund to less than the maximum amount 8 of principal and interest maturing and becoming due in any succeeding 9 fiscal year of the corporation on all bonds of the corporation then 10 outstanding, except for the purpose of paying principal of and interest 11 on such bonds of the corporation maturing and becoming due and for the 12 payment of which other moneys of the corporation are not available. Any 13 income or interest earned by, or increment to, the capital reserve fund 14 due to the investment thereof may be transferred to other funds or 15 accounts to the extent it does not reduce the amount of the capital 16 reserve fund below the maximum amount of principal and interest maturing 17 and becoming due in any such succeeding fiscal year on all bonds of the 18 corporation then outstanding. 19 4. Upon the termination of Catskill regional off-track betting corpo- 20 ration pursuant to section five hundred two-a of this article, the 21 remainder of the corporation's capital reserve fund, after such funds 22 are used for the purposes set forth in paragraph c of subdivision one of 23 this section, shall be used to pay other obligations, debts and liabil- 24 ities of the corporation pursuant to the commission-approved plan 25 described in subdivision two of section five hundred two-a of this arti- 26 cle. 27 § 3. Section 509-a of the racing, pari-mutuel wagering and breeding 28 law is amended by adding a new subdivision 4 to read as follows: 29 4. As of April first, two thousand twenty-three, Catskill regional 30 off-track betting corporation may use any remaining money in its capital 31 acquisition fund to pay off any outstanding debts and obligations in 32 accordance with the commission-approved plan described in subdivision 33 two of section five hundred two-a of this article. The use of such money 34 shall be subject to the approval of the commission and shall not be used 35 to pay the wages and benefits of employees of such corporation until all 36 other debts and obligations have been satisfied. Any money remaining in 37 the fund after such debts and obligations have been paid upon termi- 38 nation of such corporation shall be distributed to the counties in 39 accordance with law. 40 § 4. Section 521 of the racing, pari-mutuel wagering and breeding law 41 is amended by adding a new subdivision 9 to read as follows: 42 9. Notwithstanding any other provision of this article to the contra- 43 ry, a county for whose benefit Catskill regional off-track betting 44 corporation had been established may enter into an agreement with an 45 existing off-track betting corporation from a different region to 46 provide the services authorized under this article within such county. 47 § 5. This act shall take effect immediately. 48 PART AA 49 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 50 wagering and breeding law, as amended by section 1 of part DD of chapter 51 59 of the laws of 2022, is amended to read as follows: 52 2. a. Notwithstanding any other provision of law or regulation to the 53 contrary, from April nineteenth, two thousand twenty-one to March thir- 54 ty-first, two thousand twenty-two, twenty-three percent of the funds,S. 4009 62 A. 3009 1 not to exceed two and one-half million dollars, in the Catskill off- 2 track betting corporation's capital acquisition fund and twenty-three 3 percent of the funds, not to exceed four hundred forty thousand dollars, 4 in the Capital off-track betting corporation's capital acquisition fund 5 established pursuant to this section shall also be available to such 6 off-track betting corporation for the purposes of statutory obligations, 7 payroll, and expenditures necessary to accept authorized wagers. 8 b. Notwithstanding any other provision of law or regulation to the 9 contrary, from April first, two thousand twenty-two to March thirty- 10 first, two thousand twenty-three, twenty-three percent of the funds, not 11 to exceed two and one-half million dollars, in the Catskill off-track 12 betting corporation's capital acquisition fund established pursuant to 13 this section, and twenty-three percent of the funds, not to exceed four 14 hundred forty thousand dollars, in the Capital off-track betting corpo- 15 ration's capital acquisition fund established pursuant to this section, 16 shall be available to such off-track betting corporations for the 17 purposes of statutory obligations, payroll, and expenditures necessary 18 to accept authorized wagers. 19 c. Notwithstanding any other provision of law or regulation to the 20 contrary, from April first, two thousand twenty-three to March thirty- 21 first, two thousand twenty-four, twenty-three percent of the funds, not 22 to exceed four hundred forty thousand dollars, in the Capital off-track 23 betting corporation's capital acquisition fund established pursuant to 24 this section, shall be available to such off-track betting corporation 25 for the purposes of statutory obligations, payroll, and expenditures 26 necessary to accept authorized wagers. 27 d. Prior to a corporation being able to utilize the funds authorized 28 by [paragraph] paragraphs b and c of this subdivision, the corporation 29 must submit an expenditure plan to the gaming commission for review. 30 Such plan shall include the corporation's outstanding liabilities, 31 projected revenue for the upcoming year, a detailed explanation of how 32 the funds will be used, and any other information determined necessary 33 by the commission. Upon review, the commission will make a determination 34 as to whether access to the funds is needed and warranted. 35 § 2. This act shall take effect immediately. 36 PART BB 37 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 38 racing, pari-mutuel wagering and breeding law, as amended by section 1 39 of part EE of chapter 59 of the laws of 2022, is amended to read as 40 follows: 41 (a) Any racing association or corporation or regional off-track 42 betting corporation, authorized to conduct pari-mutuel wagering under 43 this chapter, desiring to display the simulcast of horse races on which 44 pari-mutuel betting shall be permitted in the manner and subject to the 45 conditions provided for in this article may apply to the commission for 46 a license so to do. Applications for licenses shall be in such form as 47 may be prescribed by the commission and shall contain such information 48 or other material or evidence as the commission may require. No license 49 shall be issued by the commission authorizing the simulcast transmission 50 of thoroughbred races from a track located in Suffolk county. The fee 51 for such licenses shall be five hundred dollars per simulcast facility 52 and for account wagering licensees that do not operate either a simul- 53 cast facility that is open to the public within the state of New York or 54 a licensed racetrack within the state, twenty thousand dollars per yearS. 4009 63 A. 3009 1 payable by the licensee to the commission for deposit into the general 2 fund. Except as provided in this section, the commission shall not 3 approve any application to conduct simulcasting into individual or group 4 residences, homes or other areas for the purposes of or in connection 5 with pari-mutuel wagering. The commission may approve simulcasting into 6 residences, homes or other areas to be conducted jointly by one or more 7 regional off-track betting corporations and one or more of the follow- 8 ing: a franchised corporation, thoroughbred racing corporation or a 9 harness racing corporation or association; provided (i) the simulcasting 10 consists only of those races on which pari-mutuel betting is authorized 11 by this chapter at one or more simulcast facilities for each of the 12 contracting off-track betting corporations which shall include wagers 13 made in accordance with section one thousand fifteen, one thousand 14 sixteen and one thousand seventeen of this article; provided further 15 that the contract provisions or other simulcast arrangements for such 16 simulcast facility shall be no less favorable than those in effect on 17 January first, two thousand five; (ii) that each off-track betting 18 corporation having within its geographic boundaries such residences, 19 homes or other areas technically capable of receiving the simulcast 20 signal shall be a contracting party; (iii) the distribution of revenues 21 shall be subject to contractual agreement of the parties except that 22 statutory payments to non-contracting parties, if any, may not be 23 reduced; provided, however, that nothing herein to the contrary shall 24 prevent a track from televising its races on an irregular basis primari- 25 ly for promotional or marketing purposes as found by the commission. For 26 purposes of this paragraph, the provisions of section one thousand thir- 27 teen of this article shall not apply. Any agreement authorizing an 28 in-home simulcasting experiment commencing prior to May fifteenth, nine- 29 teen hundred ninety-five, may, and all its terms, be extended until June 30 thirtieth, two thousand [twenty-three] twenty-four; provided, however, 31 that any party to such agreement may elect to terminate such agreement 32 upon conveying written notice to all other parties of such agreement at 33 least forty-five days prior to the effective date of the termination, 34 via registered mail. Any party to an agreement receiving such notice of 35 an intent to terminate, may request the commission to mediate between 36 the parties new terms and conditions in a replacement agreement between 37 the parties as will permit continuation of an in-home experiment until 38 June thirtieth, two thousand [twenty-three] twenty-four; and (iv) no 39 in-home simulcasting in the thoroughbred special betting district shall 40 occur without the approval of the regional thoroughbred track. 41 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 42 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 43 section 2 of part EE of chapter 59 of the laws of 2022, is amended to 44 read as follows: 45 (iii) Of the sums retained by a receiving track located in Westchester 46 county on races received from a franchised corporation, for the period 47 commencing January first, two thousand eight and continuing through June 48 thirtieth, two thousand [twenty-three] twenty-four, the amount used 49 exclusively for purses to be awarded at races conducted by such receiv- 50 ing track shall be computed as follows: of the sums so retained, two and 51 one-half percent of the total pools. Such amount shall be increased or 52 decreased in the amount of fifty percent of the difference in total 53 commissions determined by comparing the total commissions available 54 after July twenty-first, nineteen hundred ninety-five to the total 55 commissions that would have been available to such track prior to July 56 twenty-first, nineteen hundred ninety-five.S. 4009 64 A. 3009 1 § 3. The opening paragraph of subdivision 1 of section 1014 of the 2 racing, pari-mutuel wagering and breeding law, as amended by section 3 3 of part EE of chapter 59 of the laws of 2022, is amended to read as 4 follows: 5 The provisions of this section shall govern the simulcasting of races 6 conducted at thoroughbred tracks located in another state or country on 7 any day during which a franchised corporation is conducting a race meet- 8 ing in Saratoga county at Saratoga thoroughbred racetrack until June 9 thirtieth, two thousand [twenty-three] twenty-four and on any day 10 regardless of whether or not a franchised corporation is conducting a 11 race meeting in Saratoga county at Saratoga thoroughbred racetrack after 12 June thirtieth, two thousand [twenty-three] twenty-four. On any day on 13 which a franchised corporation has not scheduled a racing program but a 14 thoroughbred racing corporation located within the state is conducting 15 racing, each off-track betting corporation branch office and each simul- 16 casting facility licensed in accordance with section one thousand seven 17 (that has entered into a written agreement with such facility's repre- 18 sentative horsemen's organization, as approved by the commission), one 19 thousand eight, or one thousand nine of this article shall be authorized 20 to accept wagers and display the live simulcast signal from thoroughbred 21 tracks located in another state or foreign country subject to the 22 following provisions: 23 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 24 and breeding law, as amended by section 4 of part EE of chapter 59 of 25 the laws of 2022, is amended to read as follows: 26 1. The provisions of this section shall govern the simulcasting of 27 races conducted at harness tracks located in another state or country 28 during the period July first, nineteen hundred ninety-four through June 29 thirtieth, two thousand [twenty-three] twenty-four. This section shall 30 supersede all inconsistent provisions of this chapter. 31 § 5. The opening paragraph of subdivision 1 of section 1016 of the 32 racing, pari-mutuel wagering and breeding law, as amended by section 5 33 of part EE of chapter 59 of the laws of 2022, is amended to read as 34 follows: 35 The provisions of this section shall govern the simulcasting of races 36 conducted at thoroughbred tracks located in another state or country on 37 any day during which a franchised corporation is not conducting a race 38 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 39 thirtieth, two thousand [twenty-three] twenty-four. Every off-track 40 betting corporation branch office and every simulcasting facility 41 licensed in accordance with section one thousand seven that have entered 42 into a written agreement with such facility's representative horsemen's 43 organization as approved by the commission, one thousand eight or one 44 thousand nine of this article shall be authorized to accept wagers and 45 display the live full-card simulcast signal of thoroughbred tracks 46 (which may include quarter horse or mixed meetings provided that all 47 such wagering on such races shall be construed to be thoroughbred races) 48 located in another state or foreign country, subject to the following 49 provisions; provided, however, no such written agreement shall be 50 required of a franchised corporation licensed in accordance with section 51 one thousand seven of this article: 52 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 53 wagering and breeding law, as amended by section 6 of part EE of chapter 54 59 of the laws of 2022, is amended to read as follows: 55 Notwithstanding any other provision of this chapter, for the period 56 July twenty-fifth, two thousand one through September eighth, two thou-S. 4009 65 A. 3009 1 sand [twenty-two] twenty-three, when a franchised corporation is 2 conducting a race meeting within the state at Saratoga Race Course, 3 every off-track betting corporation branch office and every simulcasting 4 facility licensed in accordance with section one thousand seven (that 5 has entered into a written agreement with such facility's representative 6 horsemen's organization as approved by the commission), one thousand 7 eight or one thousand nine of this article shall be authorized to accept 8 wagers and display the live simulcast signal from thoroughbred tracks 9 located in another state, provided that such facility shall accept 10 wagers on races run at all in-state thoroughbred tracks which are 11 conducting racing programs subject to the following provisions; 12 provided, however, no such written agreement shall be required of a 13 franchised corporation licensed in accordance with section one thousand 14 seven of this article. 15 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 16 racing, pari-mutuel wagering and breeding law and other laws relating to 17 simulcasting, as amended by section 7 of part EE of chapter 59 of the 18 laws of 2022, is amended to read as follows: 19 § 32. This act shall take effect immediately and the pari-mutuel tax 20 reductions in section six of this act shall expire and be deemed 21 repealed on July 1, [2023] 2024; provided, however, that nothing 22 contained herein shall be deemed to affect the application, qualifica- 23 tion, expiration, or repeal of any provision of law amended by any 24 section of this act, and such provisions shall be applied or qualified 25 or shall expire or be deemed repealed in the same manner, to the same 26 extent and on the same date as the case may be as otherwise provided by 27 law; provided further, however, that sections twenty-three and twenty- 28 five of this act shall remain in full force and effect only until May 1, 29 1997 and at such time shall be deemed to be repealed. 30 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 31 racing, pari-mutuel wagering and breeding law and other laws relating to 32 simulcasting and the imposition of certain taxes, as amended by section 33 8 of part EE of chapter 59 of the laws of 2022, is amended to read as 34 follows: 35 § 54. This act shall take effect immediately; provided, however, 36 sections three through twelve of this act shall take effect on January 37 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 38 ing law, as added by section thirty-eight of this act, shall expire and 39 be deemed repealed on July 1, [2023] 2024; and section eighteen of this 40 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 41 two of this act shall take effect as of the same date as chapter 772 of 42 the laws of 1989 took effect. 43 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 44 pari-mutuel wagering and breeding law, as amended by section 9 of part 45 EE of chapter 59 of the laws of 2022, is amended to read as follows: 46 (a) The franchised corporation authorized under this chapter to 47 conduct pari-mutuel betting at a race meeting or races run thereat shall 48 distribute all sums deposited in any pari-mutuel pool to the holders of 49 winning tickets therein, provided such tickets are presented for payment 50 before April first of the year following the year of their purchase, 51 less an amount that shall be established and retained by such franchised 52 corporation of between twelve to seventeen percent of the total deposits 53 in pools resulting from on-track regular bets, and fourteen to twenty- 54 one percent of the total deposits in pools resulting from on-track 55 multiple bets and fifteen to twenty-five percent of the total deposits 56 in pools resulting from on-track exotic bets and fifteen to thirty-sixS. 4009 66 A. 3009 1 percent of the total deposits in pools resulting from on-track super 2 exotic bets, plus the breaks. The retention rate to be established is 3 subject to the prior approval of the commission. 4 Such rate may not be changed more than once per calendar quarter to be 5 effective on the first day of the calendar quarter. "Exotic bets" and 6 "multiple bets" shall have the meanings set forth in section five 7 hundred nineteen of this chapter. "Super exotic bets" shall have the 8 meaning set forth in section three hundred one of this chapter. For 9 purposes of this section, a "pick six bet" shall mean a single bet or 10 wager on the outcomes of six races. The breaks are hereby defined as the 11 odd cents over any multiple of five for payoffs greater than one dollar 12 five cents but less than five dollars, over any multiple of ten for 13 payoffs greater than five dollars but less than twenty-five dollars, 14 over any multiple of twenty-five for payoffs greater than twenty-five 15 dollars but less than two hundred fifty dollars, or over any multiple of 16 fifty for payoffs over two hundred fifty dollars. Out of the amount so 17 retained there shall be paid by such franchised corporation to the 18 commissioner of taxation and finance, as a reasonable tax by the state 19 for the privilege of conducting pari-mutuel betting on the races run at 20 the race meetings held by such franchised corporation, the following 21 percentages of the total pool for regular and multiple bets five percent 22 of regular bets and four percent of multiple bets plus twenty percent of 23 the breaks; for exotic wagers seven and one-half percent plus twenty 24 percent of the breaks, and for super exotic bets seven and one-half 25 percent plus fifty percent of the breaks. 26 For the period April first, two thousand one through December thirty- 27 first, two thousand [twenty-three] twenty-four, such tax on all wagers 28 shall be one and six-tenths percent, plus, in each such period, twenty 29 percent of the breaks. Payment to the New York state thoroughbred breed- 30 ing and development fund by such franchised corporation shall be one- 31 half of one percent of total daily on-track pari-mutuel pools resulting 32 from regular, multiple and exotic bets and three percent of super exotic 33 bets and for the period April first, two thousand one through December 34 thirty-first, two thousand [twenty-three] twenty-four, such payment 35 shall be seven-tenths of one percent of regular, multiple and exotic 36 pools. 37 § 10. This act shall take effect immediately. 38 PART CC 39 Section 1. Subdivision 1-A of section 208 of the tax law, as amended 40 by section 4 of part A of chapter 59 of the laws of 2014, is amended to 41 read as follows: 42 1-A. The term "New York S corporation" means, with respect to any 43 taxable year, a federal S corporation [subject to tax under this article44for which an election is in effect pursuant to] required to file as a 45 New York S corporation pursuant to subsection (a) of section six hundred 46 sixty of this chapter for such year, and any such year shall be denomi- 47 nated a "New York S year", [and such election shall be denominated a48"New York S election"] unless the corporation is treated as a New York C 49 corporation for such year under subsection (b) of section six hundred 50 sixty of this chapter. The term "New York C corporation" means, with 51 respect to any taxable year, a corporation subject to tax under this 52 article which is not a New York S corporation, and any such year shall 53 be denominated a "New York C year". The term "termination year" means 54 any taxable year of a corporation during which the corporation's statusS. 4009 67 A. 3009 1 as a New York S [election] corporation terminates on a day other than 2 the first day of such year. The portion of the taxable year ending 3 before the first day for which such termination is effective shall be 4 denominated the "S short year", and the portion of such year beginning 5 on such first day shall be denominated the "C short year". [The term6"New York S termination year" means any termination year which is not7also an S termination year for federal purposes.] 8 § 2. Subdivision 1-B of section 208 of the tax law, as amended by 9 section 4 of part A of chapter 59 of the laws of 2014, is amended to 10 read as follows: 11 1-B. The term "QSSS" means a corporation which is a qualified subchap- 12 ter S subsidiary as defined in subparagraph (B) of paragraph three of 13 subsection (b) of section thirteen hundred sixty-one of the internal 14 revenue code. [The term "exempt QSSS" means a QSSS exempt from tax under15this article as provided in paragraph (k) of subdivision nine of this16section, or a QSSS described in subclause (i) of clause (B) of subpara-17graph two of paragraph (k) of subdivision nine of this section, wherein18the parent corporation of the QSSS is subject to tax under this article,19and the assets, liabilities, income and deductions of the QSSS are20treated as the assets, liabilities, income and deductions of the parent21corporation. Where a QSSS is an exempt QSSS, then for all purposes under22this article] When the parent corporation of the QSSS is a New York S 23 corporation: 24 (a) the assets, liabilities, income, deductions, property, payroll, 25 receipts, capital, credits, and all other tax attributes and elements of 26 economic activity of the QSSS shall be deemed to be those of the parent 27 corporation, 28 (b) the stocks, bonds and other securities issued by, and any indebt- 29 edness from, the QSSS shall not be investment or business capital of the 30 parent corporation, 31 (c) transactions between the parent corporation and the QSSS, includ- 32 ing the payment of interest and dividends, shall not be taken into 33 account, [and] 34 (d) general executive officers of the QSSS shall be deemed to be 35 general executive officers of the parent corporation, and 36 (e) the QSSS shall not be subject to tax under this article. 37 § 3. Paragraph (k) of subdivision 9 of section 208 of the tax law, as 38 amended by section 4 of part A of chapter 59 of the laws of 2014, is 39 amended to read as follows: 40 (k) QSSS. (1) [New York S corporation. In the case of a New York S41corporation which is the parent of a qualified subchapter S subsidiary42(QSSS) with respect to a taxable year:43(A) where the QSSS is not an excluded corporation,44(i) in determining the entire net income of such parent corporation,45all assets, liabilities, income and deductions of the QSSS shall be46treated as assets, liabilities, income and deductions of the parent47corporation, and48(ii) the QSSS shall be exempt from all taxes imposed by this article,49and50(B) where the QSSS is an excluded corporation, the entire net income51of the parent corporation shall be determined as if the federal QSSS52election had not been made.53(2)] New York C corporation. In the case of a federal S corporation 54 that is a New York C corporation [which is] under subsection (b) of 55 section six hundred sixty of this chapter and is the parent of a QSSS 56 with respect to a taxable year:S. 4009 68 A. 3009 1 (A) where the QSSS is a taxpayer, 2 (i) in determining the entire net income of such parent corporation, 3 all assets, liabilities, income and deductions of the QSSS shall be 4 treated as assets, liabilities, income and deductions of the parent 5 corporation, and 6 (ii) the QSSS shall be exempt from all taxes imposed by this article, 7 and 8 (B) where the QSSS is not a taxpayer, 9 (i) if the QSSS is not an excluded corporation, the parent corporation 10 may make a QSSS inclusion election to include all assets, liabilities, 11 income and deductions of the QSSS as assets, liabilities, income and 12 deductions of the parent corporation, and 13 (ii) in the absence of such election, or where the QSSS is an excluded 14 corporation, the entire net income of the parent corporation shall be 15 determined as if the federal QSSS election had not been made. 16 [(3) Non-New York S corporation not excluded. In the case of an S17corporation which is not a taxpayer and not an excluded corporation, and18which is the parent of a QSSS which is a taxpayer, the shareholders of19the parent corporation shall be entitled to make the New York S election20under subsection (a) of section six hundred sixty of this chapter.21(A) For any taxable year for which such election is in effect, the22parent corporation shall be subject to tax under this article as a New23York S corporation, and the provisions of clause (A) of subparagraph one24of this paragraph shall apply.25(B) For any taxable year for which such election is not in effect, the26QSSS shall be a New York C corporation, and the entire net income of the27QSSS shall be determined as if the federal QSSS election had not been28made. For purposes of such determination, the taxable year of the parent29corporation shall constitute the taxable year of the QSSS, excluding,30however, any portion of such year during which the QSSS is not a taxpay-31er.32(4) S corporation excluded. In the case of an S corporation which is33an excluded corporation and which is the parent of a QSSS which is a34taxpayer, the QSSS shall be a New York C corporation and the provisions35of clause (B) of subparagraph three of this paragraph shall apply.36(5)] (2) Excluded corporation. The term "excluded corporation" means a 37 corporation subject to tax under sections one hundred eighty-three 38 through one hundred eighty-six, inclusive, or article thirty-three of 39 this chapter, or a foreign corporation not taxable by this state which, 40 if it were taxable, would be subject to tax under any of such sections 41 or article. 42 [(6)] (3) Taxpayer. For purposes of this paragraph, the term "taxpay- 43 er" means a parent corporation or QSSS subject to tax under this arti- 44 cle, determined without regard to the provisions of this paragraph. 45 [(7)] (4) QSSS inclusion election. The election under subclause (i) of 46 clause (B) of subparagraph [two] one of this paragraph shall be effec- 47 tive for the taxable year for which made and for all succeeding taxable 48 years of the corporation until such election is terminated. An election 49 or termination shall be made on such form and in such manner as the 50 commissioner may prescribe by regulation or instruction. 51 § 4. Subparagraph (A) of paragraph 5 of subdivision (a) of section 292 52 of the tax law, as added by section 48 of part A of chapter 389 of the 53 laws of 1997, is amended to read as follows: 54 (A) In the case of a shareholder of an S corporation, (i) [where the55election provided for in] except for when such S corporation is treated 56 as a New York C corporation under subsection [(a)] (b) of section sixS. 4009 69 A. 3009 1 hundred sixty of this chapter [is in effect with respect to such corpo-2ration], there shall be added to federal unrelated business taxable 3 income an amount equal to the shareholder's pro rata share of the corpo- 4 ration's reductions for taxes described in paragraphs two and three of 5 subsection (f) of section thirteen hundred sixty-six of the internal 6 revenue code, and (ii) where such [election has not been made with7respect to such corporation] S corporation is treated as a New York C 8 corporation under subsection (b) of section six hundred sixty of this 9 chapter, there shall be subtracted from federal unrelated business taxa- 10 ble income any items of income of the corporation included therein, and 11 there shall be added to federal unrelated business taxable income any 12 items of loss or deduction included therein, and (iii) in the case of [a13New York] an S termination year, the amount of any such items of S 14 corporation income, loss, deduction and reductions for taxes shall be 15 adjusted in the manner provided in paragraph two or three of subsection 16 (s) of section six hundred twelve of this chapter. 17 § 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as 18 amended by chapter 606 of the laws of 1984, subparagraph (A) as amended 19 by chapter 28 of the laws of 1987 and subparagraph (B) as amended by 20 chapter 190 of the laws of 1990, is amended to read as follows: 21 (18) In the case of a shareholder of an S corporation as described in 22 subsection (a) of section six hundred sixty of this article: 23 (A) [where the election provided for in subsection (a) of section six24hundred sixty is in effect with respect to such corporation,] an amount 25 equal to [his] such shareholder's pro rata share of the corporation's 26 reductions for taxes described in paragraphs two and three of subsection 27 (f) of section thirteen hundred sixty-six of the internal revenue code, 28 and 29 (B) in the case of [a New York] an S termination year, subparagraph 30 (A) of this paragraph shall apply to the amount of reductions for taxes 31 determined under subsection (s) of this section. 32 § 6. Paragraph 19 of subsection (b) of section 612 of the tax law, as 33 amended by chapter 606 of the laws of 1984, subparagraph (A) as amended 34 by chapter 28 of the laws of 1987 and subparagraph (B) as amended by 35 chapter 190 of the laws of 1990, is amended to read as follows: 36 (19) In the case of a shareholder of an S corporation (A) where [the37election provided for in] such S corporation is treated as a New York C 38 corporation under subsection [(a)] (b) of section six hundred sixty [has39not been made with respect to such corporation] of this article, any 40 item of loss or deduction of the corporation included in federal gross 41 income pursuant to section thirteen hundred sixty-six of the internal 42 revenue code, and (B) in the case of [a New York] an S termination year, 43 subparagraph (A) of this paragraph shall apply to the amounts of loss or 44 deduction determined under subsection (s) of this section. 45 § 7. Paragraph 20 of subsection (b) of section 612 of the tax law, as 46 amended by chapter 606 of the laws of 1984, is amended to read as 47 follows: 48 (20) S corporation distributions to the extent not included in federal 49 gross income for the taxable year because of the application of section 50 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred 51 seventy-one or subsection (c) of section thirteen hundred seventy-nine 52 of the internal revenue code which represent income not previously 53 subject to tax under this article (a) for tax years beginning before 54 January first, two thousand twenty-four, because the election provided 55 for in subsection (a) of section six hundred sixty of this article had 56 not been made, or (b) for tax years beginning on or after January first,S. 4009 70 A. 3009 1 two thousand twenty-four, because the S corporation filed a return under 2 article nine-A of this chapter pursuant to subsection (b) of section six 3 hundred sixty of this article. Any such distribution treated in the 4 manner described in paragraph two of subsection (b) of section thirteen 5 hundred sixty-eight of the internal revenue code for federal income tax 6 purposes shall be treated as ordinary income for purposes of this arti- 7 cle. 8 § 8. Paragraph 22 of subsection (c) of section 612 of the tax law, as 9 amended by chapter 606 of the laws of 1984, subparagraph (A) as amended 10 by chapter 28 of the laws of 1987 and subparagraph (B) as amended by 11 chapter 190 of the laws of 1990, is amended to read as follows: 12 (22) In the case of a shareholder of an S corporation (A) where [the13election provided for in] such S corporation is treated as a New York C 14 corporation under subsection [(a)] (b) of section six hundred sixty [has15not been made with respect to such corporation] of this article, any 16 item of income of the corporation included in federal gross income 17 pursuant to section thirteen hundred sixty-six of the internal revenue 18 code, and 19 (B) in the case of [a New York] an S termination year, subparagraph 20 (A) of this paragraph shall apply to the amounts of income determined 21 under subsection (s) of this section. 22 § 9. The section heading and paragraph 1 of subsection (s) of section 23 612 of the tax law, as amended by chapter 760 of the laws of 1992, is 24 amended to read as follows: 25 (s) [New York] S termination year. (1) General. In the case of [a New26York] an S termination year, the amount of any item of S corporation 27 income, loss and deduction included in the shareholder's federal 28 adjusted gross income and any reductions for taxes (as described in 29 paragraphs two and three of subsection (f) of section thirteen hundred 30 sixty-six of the internal revenue code) shall be adjusted in accordance 31 with the treatment provided in paragraph two or three of this 32 subsection. 33 § 10. Paragraph 6 of subsection (c) of section 615 of the tax law, as 34 added by chapter 606 of the laws of 1984, subparagraph (B) as amended by 35 chapter 190 of the laws of 1990, is amended to read as follows: 36 (6) in the case of a shareholder of an S corporation 37 (A) where [the election provided for in] such S corporation is treated 38 as a New York C corporation under subsection [(a)] (b) of section six 39 hundred sixty [has not been made] of this article, S corporation items 40 of deduction included in federal itemized deductions, and 41 (B) in the case of [a New York] an S termination year, [the portion of42such items assigned to the period beginning on the day the election43ceases to be effective, as] the modification under subparagraph (A) of 44 this paragraph shall be determined under subsection (s) of section six 45 hundred twelve of this part. 46 § 11. Subparagraph (C) of paragraph 1 of subsection (b) of section 631 47 of the tax law, as amended by chapter 586 of the laws of 1999, is 48 amended to read as follows: 49 (C) in the case of a shareholder of an S corporation [where the50election provided for in] subject to subsection (a) of section six 51 hundred sixty of this article [is in effect], the ownership of shares 52 issued by such corporation, to the extent determined under section six 53 hundred thirty-two of this [article] part; or 54 § 12. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 55 631 of the tax law, as added by section 3 of part C of chapter 57 of the 56 laws of 2010, is amended to read as follows:S. 4009 71 A. 3009 1 (E-1) in the case of an S corporation [for which an election is in2effect pursuant] subject to subsection (a) of section six hundred sixty 3 of this article that terminates its taxable status in New York, any 4 income or gain recognized on the receipt of payments from an installment 5 sale contract entered into when the S corporation was subject to tax in 6 New York, allocated in a manner consistent with the applicable methods 7 and rules for [allocation] apportionment under article nine-A or former 8 article thirty-two of this chapter, in the year that the S corporation 9 sold its assets. 10 § 13. The section heading and paragraph 2 of subsection (a) of section 11 632 of the tax law, the section heading as amended by chapter 606 of the 12 laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 13 of part A of chapter 59 of the laws of 2014, are amended to read as 14 follows: 15 Nonresident partners and [electing] shareholders of S corporations. 16 (2) In determining New York source income of a nonresident shareholder 17 of [an] a New York S corporation [where the election provided for in18subsection (a) of section six hundred sixty] as defined in subdivision 19 one-A of section two hundred eight of [this article is in effect] this 20 chapter, there shall be included only the portion derived from or 21 connected with New York sources of such shareholder's pro rata share of 22 items of S corporation income, loss and deduction entering into [his] 23 such shareholder's federal adjusted gross income, increased by 24 reductions for taxes described in paragraphs two and three of subsection 25 (f) of section thirteen hundred sixty-six of the internal revenue code, 26 as such portion shall be determined under regulations of the commission- 27 er consistent with the applicable methods and rules for [allocation] 28 apportionment under article nine-A of this chapter[, regardless of29whether or not such item or reduction is included in entire net income30under article nine-A for the tax year]. If a nonresident is a sharehold- 31 er in [an] a New York S corporation [where the election provided for in32subsection (a) of section six hundred sixty] as defined in subdivision 33 one-A of section two hundred eight of [this article is in effect] this 34 chapter, and the S corporation has distributed an installment obligation 35 under section 453(h)(1)(A) of the Internal Revenue Code, then any gain 36 recognized on the receipt of payments from the installment obligation 37 for federal income tax purposes will be treated as New York source 38 income allocated in a manner consistent with the applicable methods and 39 rules for [allocation] apportionment under article nine-A of this chap- 40 ter in the year that the assets were sold. In addition, if the share- 41 holders of the S corporation have made an election under section 42 338(h)(10) of the Internal Revenue Code, then any gain recognized on the 43 deemed asset sale for federal income tax purposes will be treated as New 44 York source income allocated in a manner consistent with the applicable 45 methods and rules for [allocation] apportionment under article nine-A of 46 this chapter in the year that the shareholder made the section 47 338(h)(10) election. For purposes of a section 338(h)(10) election, when 48 a nonresident shareholder exchanges his or her S corporation stock as 49 part of the deemed liquidation, any gain or loss recognized shall be 50 treated as the disposition of an intangible asset and will not increase 51 or offset any gain recognized on the deemed assets sale as a result of 52 the section 338(h)(10) election. 53 § 14. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection 54 (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 55 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended byS. 4009 72 A. 3009 1 section 72 of part A of chapter 59 of the laws of 2014, are amended to 2 read as follows: 3 (2) S corporations. Every S corporation [for which the election4provided for in subsection (a) of section six hundred sixty is in5effect] treated as a New York S corporation as defined in subdivision 6 one-A of section two hundred eight of this chapter shall make a return 7 for the taxable year setting forth all items of income, loss and 8 deduction and such other pertinent information as the commissioner of 9 taxation and finance may by regulations and instructions prescribe. Such 10 return shall be filed on or before the fifteenth day of the third month 11 following the close of each taxable year. 12 (A) General. Every entity which is a partnership, other than a public- 13 ly traded partnership as defined in section 7704 of the federal Internal 14 Revenue Code, subchapter K limited liability company or [an] a New York 15 S corporation [for which the election provided for in subsection (a) of16section six hundred sixty of this part is in effect] as defined in 17 subdivision one-A of section two hundred eight of this chapter, which 18 has partners, members or shareholders who are nonresident individuals, 19 as defined under subsection (b) of section six hundred five of this 20 article, or C corporations, and which has any income derived from New 21 York sources, determined in accordance with the applicable rules of 22 section six hundred thirty-one of this article as in the case of a 23 nonresident individual, shall pay estimated tax on such income on behalf 24 of such partners, members or shareholders in the manner and at the times 25 prescribed by subsection (c) of section six hundred eighty-five of this 26 article. For purposes of this paragraph, the term "estimated tax" shall 27 mean a partner's, member's or shareholder's distributive share or pro 28 rata share of the entity income derived from New York sources, multi- 29 plied by the highest rate of tax prescribed by section six hundred one 30 of this article for the taxable year of any partner, member or share- 31 holder who is an individual taxpayer, or paragraph (a) of subdivision 32 one of section two hundred ten of this chapter for the taxable year of 33 any partner, member or shareholder which is a C corporation, whether or 34 not such C corporation is subject to tax under article nine, nine-A or 35 thirty-three of this chapter, and reduced by the distributive share or 36 pro rata share of any credits determined under section one hundred 37 eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen 38 hundred eleven of this chapter, whichever is applicable, derived from 39 the entity. 40 § 15. Section 660 of the tax law, as amended by chapter 606 of the 41 laws of 1984, subsections (a) and (h) as amended by section 73 of part A 42 of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as 43 amended by section 51, paragraphs 4 and 5 of subsection (b) as added and 44 paragraph 6 of subsection (b) as renumbered by section 52 and 45 subsections (e) and (f) as added and subsection (g) as relettered by 46 section 53 of part A of chapter 389 of the laws of 1997, subsection (d) 47 as added by chapter 760 of the laws of 1992, subsection (i) as added by 48 section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of 49 subsection (i) as amended by section 39 of part T of chapter 59 of the 50 laws of 2015, is amended to read as follows: 51 § 660. [Election by shareholders of S corporations] Tax treatment of 52 federal S corporations. (a) [Election.] If a corporation is an eligible 53 S corporation, except for eligible S corporations treated as New York C 54 corporations under subsection (b) of this section, the shareholders of 55 the corporation [may elect in the manner set forth in subsection (b) of56this section to] shall take into account, to the extent provided for inS. 4009 73 A. 3009 1 this article (or in article thirteen of this chapter, in the case of a 2 shareholder which is a taxpayer under such article), the S corporation 3 items of income, loss, deduction and reductions for taxes described in 4 paragraphs two and three of subsection (f) of section thirteen hundred 5 sixty-six of the internal revenue code which are taken into account for 6 federal income tax purposes for the taxable year. [No election under7this subsection shall be effective unless all shareholders of the corpo-8ration have so elected.] An eligible S corporation is (i) [an S] a 9 corporation [which] that has elected to be an S corporation for federal 10 income tax purposes pursuant to section thirteen hundred sixty-two of 11 the internal revenue code that is subject to tax under article nine-A of 12 this chapter, or (ii) [an S] a corporation [which] that has elected to 13 be an S corporation for federal income tax purposes pursuant to section 14 thirteen hundred sixty-two of the internal revenue code that is not 15 subject to tax under article nine-A of this chapter, or an excluded 16 corporation, and is the parent of a qualified subchapter S subsidiary as 17 defined in subparagraph (B) of paragraph three of subsection (b) of 18 section thirteen hundred sixty-one of the internal revenue code subject 19 to tax under article nine-A[, where the shareholders of such parent20corporation are entitled to make the election under this subsection by21reason of subparagraph three of paragraph (k) of subdivision nine of22section two hundred eight] of this chapter. Except as provided in 23 subsection (b) of this section, an eligible S corporation is a New York 24 S corporation. 25 (b) [Requirements of election] Treatment of qualified New York 26 manufacturers as New York C corporations. [An election] An eligible S 27 corporation that meets the requirements of subparagraph (vi) of para- 28 graph (a) of subdivision one of section two hundred ten of this chapter 29 to be a qualified New York manufacturer may be treated as a New York C 30 corporation subject to tax under article nine-A of this chapter. Treat- 31 ment under this subsection [(a) of this section] as a New York C corpo- 32 ration shall be made on such form and in such manner as the [tax commis-33sion] commissioner may prescribe by regulation or instruction. 34 (1) [When made] Timing. [An election] To be treated under this 35 subsection [(a) of this section may be made at any time during the36preceding taxable year of the corporation or at any time during the37taxable year of the corporation and on or before the fifteenth day of38the third month of such taxable year.39(2) Certain elections made during first two and one-half months. If an40election made under subsection (a) of this section is made for any taxa-41ble year of the corporation during such year and on or before the42fifteenth day of the third month of such year, such election shall be43treated as made for the following taxable year if44(A) on one or more days in such taxable year before the day on which45the election was made the corporation did not meet the requirements of46subsection (b) of section thirteen hundred sixty-one of the internal47revenue code or48(B) one or more of the shareholders who held stock in the corporation49during such taxable year and before the election was made did not50consent to the election.51(3) Elections made after first two and one-half months. If an election52under subsection (a) of this section is made for any taxable year of the53corporation and such election is made after the fifteenth day of the54third month of such taxable year and on or before the fifteenth day of55the third month of the following taxable year, such election shall be56treated as made for the following taxable year.S. 4009 74 A. 3009 1(4) Taxable years of two and one-half months or less. For purposes of2this subsection, an election for a taxable year made not later than two3months and fifteen days after the first day of the taxable year shall be4treated as timely made during such year.5(5) Authority to treat late elections, etc., as timely. If (A) an6election under subsection (a) of this section is made for any taxable7year (determined without regard to paragraph three of this subsection)8after the date prescribed by this subsection for making such election9for such taxable year, or if no such election is made for any taxable10year, and11(B) the commissioner determines that there was reasonable cause for12failure to timely make such election, then13(C) the commissioner may treat such an election as timely made for14such taxable year (and paragraph three of this subsection shall not15apply).16(6) Years for which effective. An election under subsection (a) of17this section shall be effective for the taxable year of the corporation18for which it is made and for all succeeding taxable years of the corpo-19ration until such election is terminated under subsection (c) of this20section.] as a New York C corporation for a taxable year, the corpo- 21 ration shall file a report as a New York C corporation under article 22 nine-A of this chapter for such year. Such treatment shall be effective 23 as of the first day of the taxable year covered by such report. 24 (c) Termination. [An election] (1) Treatment of a federal S corpo- 25 ration as a New York S corporation under subsection (a) of this section, 26 and treatment of a federal S corporation as a New York C corporation 27 under subsection [(a)] (b) of this section shall cease to be effective 28 [(1)] on the day an election to be an S corporation ceases to be 29 effective for federal income tax purposes pursuant to subsection (d) of 30 section thirteen hundred sixty-two of the internal revenue code[, or31(2) if shareholders holding more than one-half of the shares of stock32of the corporation on the day on which the revocation is made revoke33such election in the manner the tax commission may prescribe by regu-34lation,35(A) on the first day of the taxable year of the corporation, if the36revocation is made during such taxable year and on or before the37fifteenth day of the third month thereof, or38(B) on the first day of the following taxable year of the corporation,39if the revocation is made during the taxable year but after the40fifteenth day of the third month thereof, or41(C) on and after the date so specified, if the revocation specifies a42date for revocation which is on or after the day on which the revocation43is made, or44(3) if any person who was not a shareholder of the corporation on the45day on which the election is made becomes a shareholder in the corpo-46ration and affirmatively refuses to consent to such election in the47manner the tax commission may prescribe by regulation, on the day such48person becomes a shareholder] and, in such case, the corporation shall 49 be treated as a New York C corporation subject to tax under article 50 nine-A of this chapter. 51 (2) Treatment of a federal S corporation as a New York C corporation 52 under subsection (b) of this section shall cease to be effective if the 53 corporation no longer meets the requirements to be considered a quali- 54 fied New York manufacturer under subparagraph (vi) of paragraph (a) of 55 subdivision one of section two hundred ten of this chapter for the taxa-S. 4009 75 A. 3009 1 ble year, and in such case the corporation shall be treated as a New 2 York S corporation subject to subsection (a) of this section. 3 (d) [New York] S termination year. In the case of [a New York] an S 4 termination year, the amount of any item of S corporation income, loss 5 and deduction and reductions for taxes (as described in paragraphs two 6 and three of subsection (f) of section thirteen hundred sixty-six of the 7 internal revenue code) required to be taken account of under this arti- 8 cle shall be adjusted in the same manner that the S corporation's items 9 which are included in the shareholder's federal adjusted gross income 10 are adjusted under subsection (s) of section six hundred twelve. 11 (e) [Inadvertent invalid elections. If (1) an election under12subsection (a) of this section was not effective for the taxable year13for which made (determined without regard to paragraph two of subsection14(b) of this section) by reason of a failure to obtain shareholder15consents,16(2) the commissioner determines that the circumstances resulting in17such ineffectiveness were inadvertent,18(3) no later than a reasonable period of time after discovery of the19circumstances resulting in such ineffectiveness, steps were taken to20acquire the required shareholder consents, and21(4) the corporation, and each person who was a shareholder in the22corporation at any time during the period specified pursuant to this23subsection, agrees to make such adjustments (consistent with the treat-24ment of the corporation as a New York S corporation) as may be required25by the commissioner with respect to such period,26(5) then, notwithstanding the circumstances resulting in such ineffec-27tiveness, such corporation shall be treated as a New York S corporation28during the period specified by the commissioner.] Qualified subchapter S 29 subsidiaries ("QSSS"). If a New York S corporation has elected to treat 30 its wholly owned subsidiary as a qualified subchapter S subsidiary for 31 federal income tax purposes under paragraph three of subsection (b) of 32 section thirteen hundred sixty-one of the internal revenue code, such 33 election shall be applicable for New York state tax purposes, and 34 (1) the assets, liabilities, income, deductions, property, payroll, 35 receipts, capital, credits, and all other tax attributes and elements of 36 economic activity of the subsidiary shall be deemed to be those of the 37 parent corporation, 38 (2) transactions between the parent corporation and the subsidiary, 39 including the payment of interest and dividends, shall not be taken into 40 account, and 41 (3) general executive officers of the subsidiary shall be deemed to be 42 general executive officers of the parent corporation. 43 (f) Validated federal elections. If [(1) an election under subsection44(a) of this section was made for a taxable year or years of a corpo-45ration, which years occur with or within the period for which] the 46 federal S election of [such] an eligible S corporation has been vali- 47 dated pursuant to the provisions of subsection (f) of section thirteen 48 hundred sixty-two of the internal revenue code, [and49(2) the corporation, and each person who was a shareholder in the50corporation at any time during such taxable year or years agrees to make51such adjustments (consistent with the treatment of the corporation as a52New York S corporation) as may be required by the commissioner with53respect to such year or years,54(3) then] such corporation shall be treated as a New York S corpo- 55 ration, subject to subsection (a) of this section, during [such] the 56 year or years for which such election has been validated except if theS. 4009 76 A. 3009 1 eligible S corporation is treated as a New York C corporation under 2 subsection (b) of this section. 3 (g) [Transitional rule. Any election made under this section (as in4effect for taxable years beginning before January first, nineteen5hundred eighty-three) shall be treated as an election made under6subsection (a) of this section.7(h) Cross reference. For definitions relating to S corporations, see8subdivision one-A of section two hundred eight of this chapter.9(i) Mandated New York S corporation election. (1) Notwithstanding the10provisions in subsection (a) of this section, in the case of an eligible11S corporation for which the election under subsection (a) of this12section is not in effect for the current taxable year, the shareholders13of an eligible S corporation are deemed to have made that election14effective for the eligible S corporation's entire current taxable year,15if the eligible S corporation's investment income for the current taxa-16ble year is more than fifty percent of its federal gross income for such17year. In determining whether an eligible S corporation is deemed to have18made that election, the income of a qualified subchapter S subsidiary19owned directly or indirectly by the eligible S corporation shall be20included with the income of the eligible S corporation.21(2) For the purposes of this subsection, the term "eligible S corpo-22ration" has the same definition as in subsection (a) of this section.23(3) For the purposes of this subsection, the term "investment income"24means the sum of an eligible S corporation's gross income from interest,25dividends, royalties, annuities, rents and gains derived from dealings26in property, including the corporation's share of such items from a27partnership, estate or trust, to the extent such items would be includa-28ble in federal gross income for the taxable year.29(4)] Rules related to change in status. (1) Net operating losses. Any 30 net operating loss carryforward that otherwise would have been allowed 31 under subparagraph (ix) of paragraph (a) of subdivision one of section 32 two hundred ten of this chapter for a New York C corporation that 33 becomes a New York S corporation shall be held in abeyance and be avail- 34 able to such taxpayer if such taxpayer is treated as a New York C corpo- 35 ration because its election to be a federal S corporation is terminated 36 or by operation of subsection (b) of this section. However, the taxpay- 37 er's years as a New York S corporation shall be counted for purposes of 38 computing any time period applicable to the allowance of any net operat- 39 ing loss. 40 (2) Credit carryforwards. Any carryforwards of credits allowed under 41 section two hundred ten-B of this chapter for a New York C corporation 42 that becomes a New York S corporation shall be held in abeyance and be 43 available to such taxpayer if such taxpayer is treated as a New York C 44 corporation because its election to be a federal S corporation is termi- 45 nated or by operation of subsection (b) of this section. However, the 46 taxpayer's years as a New York S corporation shall be counted for 47 purposes of computing any time period applicable to the allowance of any 48 credit carryforward. 49 (3) Estimated tax payments. When making estimated tax payments 50 required to be made under this chapter in the current tax year, the 51 eligible S corporation and its shareholders may rely on the eligible S 52 corporation's filing status for the prior year. If the eligible S corpo- 53 ration's filing status changes from the prior tax year the corporation 54 or the shareholders, as the case may be, which made the payments shall 55 be entitled to a refund of such estimated tax payments. No additions to 56 tax with respect to any required declarations or payments of estimatedS. 4009 77 A. 3009 1 tax imposed under this chapter shall be imposed on the corporation or 2 shareholders, whichever is the taxpayer for the current taxable year, if 3 the corporation or the shareholders file such declarations and make such 4 estimated tax payments by January fifteenth of the following calendar 5 year, regardless of whether the taxpayer's tax year is a calendar or a 6 fiscal year. 7 (h) Excluded corporation. For purposes of this section an excluded 8 corporation shall be as defined in paragraph (k) of subdivision nine of 9 section two hundred eight of this chapter. 10 § 16. Transition rules. Any prior net operating loss conversion 11 subtraction that otherwise would have been allowed under subparagraph 12 (viii) of paragraph (a) of subdivision one of section two hundred ten of 13 the tax law for the taxable years beginning on or after January 1, 2024, 14 to any taxpayer that was a New York C corporation for a taxable year 15 beginning on or after January 1, 2023, and before January 1, 2024, and 16 that becomes a New York S corporation for a taxable year beginning on or 17 after January 1, 2024, as a result of the amendments made by this act, 18 shall be held in abeyance and be available to such taxpayer if such 19 taxpayer is treated as a New York C corporation because its election to 20 be a federal S corporation is terminated or by operation of subsection 21 (b) of section six hundred sixty of the tax law. However, the taxpay- 22 er's years as a New York S corporation shall be counted for purposes of 23 computing the twenty-year time period specified in subclause four of 24 clause (B) of subparagraph (viii) of paragraph (a) of subdivision one of 25 section two hundred ten of the tax law applicable to the allowance of 26 the prior net operating loss conversion subtraction. 27 § 17. This act shall take effect immediately and shall apply to taxa- 28 ble years beginning on or after January 1, 2024. 29 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 30 sion, section or part of this act shall be adjudged by any court of 31 competent jurisdiction to be invalid, such judgment shall not affect, 32 impair, or invalidate the remainder thereof, but shall be confined in 33 its operation to the clause, sentence, paragraph, subdivision, section 34 or part thereof directly involved in the controversy in which such judg- 35 ment shall have been rendered. It is hereby declared to be the intent of 36 the legislature that this act would have been enacted even if such 37 invalid provisions had not been included herein. 38 § 3. This act shall take effect immediately provided, however, that 39 the applicable effective date of Parts A through CC of this act shall be 40 as specifically set forth in the last section of such Parts.
