Bill Text: NY S09009 | 2025-2026 | General Assembly | Amended
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2026-2027 state fiscal year; sets forth a child and dependent care credit for taxable years beginning on or after January 1, 2026 (Part A); excludes up to twenty-five thousand dollars in qualified tips earned from New York adjusted gross income (Part B); retains the deductibility of certain charitable contributions (Part C); standardizes the definition of farmer for various tax credits (Part D); extends the current corporate tax rates (Part E); provides for exemptions from calculation of income in certain cases, provided such exemptions were not already applied in the calculation of income under federal provisions (Part F); relates to the treatment of certain deductions allowable under the internal revenue code in calculating New York city taxable income for corporations for taxable years beginning after December 31, 2024 (Part G); extends provisions of law relating to the commercial security tax credit from January 1, 2026 until January 1, 2029 (Part I); enhances the New York city musical and theatrical production credit (Part J); defines the term "alternative nicotine product"; makes provisions relating to the possession for sale, sale, and taxation of alternative nicotine products (Part K); extends the real estate transfer tax rate reduction for conveyances of real property to existing real estate investment funds (Part M); directs the commissioner of taxation and finance to establish a sales and use tax reregistration program and a sales and use tax penalty and interest discount program (Part N); extends the sales tax exemption for vending machines (Part P); extends the residential energy storage sales tax exemption for two years (Part Q); relates to the petroleum business tax filing deadline for commercial vessel operators (Part R); extends the alternative fuels tax exemptions (Part S); makes technical corrections to the STAR exemption and STAR credit programs (Part T); extends the assessment ceiling for local public utility mass real property to January 1, 2031; clarifies the powers of the state board of real property tax services (Part U); relates to rent exemptions and rent increase exemptions and property tax exemptions for certain persons; extends provisions of law relating thereto (Subpart A); provides notice to tenants regarding rent increase exemptions (Subpart B)(Part V); conforms pari-mutuel tax provisions; makes technical corrections (Part W); extends the utilization of funds in off-track betting corporations' capital acquisition funds (Part X); extends certain provisions of law relating to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks, distributions of wagers, and the imposition of certain taxes related thereto (Part Y); extends certain seasonal employee licensing requirements for additional race dates at Saratoga Racetrack for the year 2026 (Part Z); excludes certain distributions on federal elections for the purposes of calculating federal adjusted gross income (Part AA); relates to tax credits for donations to food pantries made by farmers (Part BB); relates to the sales tax exemption for meal donations; authorizes students to donate unused meal funds, meals or meal points to other students enrolled in such school, college or university who are facing food insecurity; extends the authorization of such sales tax exemption (Part CC); establishes additional qualifications for the board members of regional off-track betting corporations (Part DD); relates to the real property tax exemption for disabled veterans (Part EE); establishes a protecting our wallets energy rebate (POWER) credit (Part FF); relates to standardbred total carbon dioxide (TCO2) on-track drug testing (Part GG); authorizes a city having a population of one million or more to impose a surcharge on property that does not serve as a primary residence (Part HH); authorizes additional vendor fees to vendor tracks and video lottery gaming facilities; directs the gaming commission to conduct a study on video lottery terminal vendor fees and commercial casino tax rates (Part II); extends the duration of certain brownfield redevelopment and remediation tax credits with respect to certain sites (Part JJ).
Sponsorship: Committee Bill
Status: (Passed) 2026-05-28 - SIGNED CHAP.59 [S09009 Detail]
Download: New_York-2025-S09009-Amended.html
STATE OF NEW YORK ________________________________________________________________________ S. 9009--C A. 10009--C SENATE - ASSEMBLY January 21, 2026 ___________ 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law and the administrative code of the city of New York, in relation to enhancing and reforming the child and depend- ent care credit (Part A); to amend the tax law, in relation to exclud- ing certain tips earned from New York adjusted gross income (Part B); to amend the tax law, in relation to retaining the deductibility of certain charitable contributions (Part C); to amend the tax law, in relation to standardizing the definition of farmer for various cred- its; and to repeal certain provisions of such law relating thereto (Part D); to amend the tax law, in relation to extending the current corporate tax rates (Part E); to amend the tax law, in relation to exemptions from calculation of income in certain cases (Part F); to amend the administrative code of the city of New York, in relation to the treatment of certain deductions allowable under the internal revenue code in calculating New York city taxable income for corpo- rations (Part G); intentionally omitted (Part H); to amend the execu- tive law and the tax law, in relation to extending the commercial security tax credit (Part I); to amend the tax law, in relation to enhancing the New York city musical and theatrical production tax credit (Part J); to amend the tax law and the state finance law, in relation to alternative nicotine products (Part K); intentionally EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-05-6S. 9009--C 2 A. 10009--C omitted (Part L); to amend the tax law and the administrative code of the city of New York, in relation to extending the real estate trans- fer tax rate reduction for conveyances of real property to existing real estate investment funds (Part M); to establish a sales and use tax reregistration program and a sales and use tax penalty and inter- est discount program (Part N); intentionally omitted (Part O); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through a vending machine for three years (Part P); to amend part PP of chapter 58 of the laws of 2024 amending the tax law relating to establishing a sales tax exemption for residential energy storage, in relation to extending the residential energy stor- age exemption for two years (Part Q); to amend the tax law, in relation to the petroleum business tax filing deadline for commercial vessel operators (Part R); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part S); to amend the real property tax law and the tax law, in relation to making technical corrections to the STAR exemption and STAR credit programs; and to repeal certain provisions of the real property tax law relating thereto (Part T); to amend chapter 475 of the laws of 2013 amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2031; and to amend the real property tax law, in relation to the powers of the state board of real property tax services (Part U); to amend the real property tax law, in relation to expanding the rent increase exemption for senior citizens and persons with disabilities; to amend part U of chapter 55 of the laws of 2014, amending the real property tax law relating to the tax abate- ment and exemption for rent regulated and rent controlled property occupied by senior citizens, in relation to the effectiveness thereof; to amend chapter 129 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by persons with disabilities, in relation to the effectiveness thereof; and providing for the repeal of certain provisions upon expiration thereof (Subpart A); and to amend the administrative code of the city of New York and the real property tax law, in relation to providing notice to tenants regarding rent increase exemptions (Subpart B) (Part V); to amend the racing, pari- mutuel wagering and breeding law, in relation to conforming pari-mutu- el tax provisions (Part W); to amend the racing, pari-mutuel wagering and breeding law, in relation to extending the utilization of funds in the Capital off-track betting corporations' capital acquisition funds (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simul- casting of races run by out-of-state harness tracks and distributions of wagers; and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Part Y); to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain seasonal employee licensing requirements for additional race dates at Saratoga Racetrack (Part Z); to amend the tax law, in relation to excluding distributions due to certain federal elections from personal incomeS. 9009--C 3 A. 10009--C tax (Part AA); to amend the tax law, in relation to increasing tax credits for donations to food pantries by farmers (Part BB); to amend the tax law, in relation to authorizing students to donate unused meal funds, meals or meal points to other students enrolled in such school, college or university who are facing food insecurity; and to amend chapter 678 of the laws of 2025 amending the tax law relating to excluding certain food donations from sales tax, in relation to the effectiveness thereof (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to additional qualifications for the board members of regional off-track betting corporations; and to amend section 2 of part JJ of chapter 56 of the laws of 2023 amend- ing the racing, pari-mutuel wagering and breeding law, relating to the membership of the board of directors of the western regional off-track betting corporation, in relation to the effectiveness thereof (Part DD); to amend the real property tax law, in relation to the property tax exemption for certain disabled veterans (Part EE); to amend the tax law, in relation to establishing a protecting our wallets energy rebate (POWER) credit (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to standardbred testing (Part GG); to amend the tax law, the administrative code of the city of New York and the New York city charter, in relation to authorizing a city having a population of one million or more to impose a surcharge on property that does not serve as a primary residence; and providing for the repeal of such provisions upon expiration thereof (Part HH); to amend the tax law, in relation to authorizing additional vendor fees to vendor tracks and video lottery gaming facilities; and relating to directing the gaming commission to conduct a study on video lottery terminal vendor fees and commercial casino tax rates; and providing for the repeal of such provisions upon expiration thereof (Part II); and to extend the duration of certain brownfield redevelopment and remediation tax credits with respect to certain sites (Part JJ) 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 2026-2027 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through JJ. 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. Paragraph 1 of subsection (c) of section 606 of the tax 14 law, as amended by section 1 of part M of chapter 63 of the laws of 15 2000, is amended to read as follows: 16 (1) [A] For taxable years beginning before January first, two thousand 17 twenty-six, a taxpayer shall be allowed a credit as provided herein 18 equal to the applicable percentage of the credit allowable under sectionS. 9009--C 4 A. 10009--C 1 twenty-one of the internal revenue code for the same taxable year (with- 2 out regard to whether the taxpayer in fact claimed the credit under such 3 section twenty-one for such taxable year). The applicable percentage 4 shall be the sum of (i) twenty percent and (ii) a multiplier multiplied 5 by a fraction. For taxable years beginning in nineteen hundred ninety- 6 six and nineteen hundred ninety-seven, the numerator of such fraction 7 shall be the lesser of (i) four thousand dollars or (ii) fourteen thou- 8 sand dollars less the New York adjusted gross income for the taxable 9 year, provided, however, the numerator shall not be less than zero. For 10 the taxable year beginning in nineteen hundred ninety-eight, the numera- 11 tor of such fraction shall be the lesser of (i) thirteen thousand 12 dollars or (ii) thirty thousand dollars less the New York adjusted gross 13 income for the taxable year, provided, however, the numerator shall not 14 be less than zero. For taxable years beginning in nineteen hundred nine- 15 ty-nine, the numerator of such fraction shall be the lesser of (i) 16 fifteen thousand dollars or (ii) fifty thousand dollars less the New 17 York adjusted gross income for the taxable year, provided, however, the 18 numerator shall not be less than zero. For taxable years beginning after 19 nineteen hundred ninety-nine, the numerator of such fraction shall be 20 the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand 21 dollars less the New York adjusted gross income for the taxable year, 22 provided, however, the numerator shall not be less than zero. The denom- 23 inator of such fraction shall be four thousand dollars for taxable years 24 beginning in nineteen hundred ninety-six and nineteen hundred ninety- 25 seven, thirteen thousand dollars for the taxable year beginning in nine- 26 teen hundred ninety-eight, and fifteen thousand dollars for taxable 27 years beginning after nineteen hundred ninety-eight. The multiplier 28 shall be ten percent for taxable years beginning in nineteen hundred 29 ninety-six, forty percent for taxable years beginning in nineteen 30 hundred ninety-seven, and eighty percent for taxable years beginning 31 after nineteen hundred ninety-seven. Provided, however, for taxable 32 years beginning after nineteen hundred ninety-nine, for a person whose 33 New York adjusted gross income is less than forty thousand dollars, such 34 applicable percentage shall be equal to (i) one hundred percent, plus 35 (ii) ten percent multiplied by a fraction whose numerator shall be the 36 lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars 37 less the New York adjusted gross income for the taxable year, provided 38 such numerator shall not be less than zero, and whose denominator shall 39 be fifteen thousand dollars. Provided, further, that if the reversion 40 event, as defined in this paragraph, occurs, the applicable percentage 41 shall, for taxable years ending on or after the date on which the rever- 42 sion event occurred, be determined using the rules specified in this 43 paragraph applicable to taxable years beginning in nineteen hundred 44 ninety-nine. The reversion event shall be deemed to have occurred on the 45 date on which federal action, including but not limited to, administra- 46 tive, statutory or regulatory changes, materially reduces or eliminates 47 New York state's allocation of the federal temporary assistance for 48 needy families block grant, or materially reduces the ability of the 49 state to spend federal temporary assistance for needy families block 50 grant funds for the credit for certain household and dependent care 51 services necessary for gainful employment or to apply state general fund 52 spending on the credit for certain household and dependent care services 53 necessary for gainful employment toward the temporary assistance for 54 needy families block grant maintenance of effort requirement, and the 55 commissioner of the office of temporary and disability assistance shall 56 certify the date of such event to the commissioner, the director of theS. 9009--C 5 A. 10009--C 1 division of the budget, the speaker of the assembly and the temporary 2 president of the senate. 3 § 2. Section 606 of the tax law is amended by adding a new subsection 4 (c-2) to read as follows: 5 (c-2) New York state child and dependent care credit. (1) For taxable 6 years beginning on or after January first, two thousand twenty-six, an 7 eligible taxpayer shall be allowed a credit as provided herein to enable 8 the eligible taxpayer to be gainfully employed or a full-time student at 9 an educational institution for any period of the taxable year. If the 10 amount of the credit allowed under this subsection for any taxable year 11 shall exceed the eligible taxpayer's tax for such year, the excess shall 12 be treated as an overpayment of tax to be credited or refunded in 13 accordance with the provisions of six hundred eighty-six of this arti- 14 cle, provided, however, that no interest shall be paid thereon. 15 (2) For the purposes of this subsection: 16 (A) "Eligible taxpayer" shall mean a resident individual as defined in 17 paragraph one of subsection (b) of section six hundred five of this 18 article who, during the taxable year: (i) is not a dependent of another 19 taxpayer pursuant to section one hundred fifty-two of the internal 20 revenue code; and (ii) is not a resident married individual filing a 21 separate return unless such individual meets the conditions in paragraph 22 four of subdivision (e) of section twenty-one of the internal revenue 23 code. Provided, however, where married individuals file a joint federal 24 return, but are required to determine their New York taxes separately 25 pursuant to subsection (b) of section six hundred fifty-one of this 26 article, the credit allowed pursuant to this subsection may only be 27 applied against the tax imposed on the spouse with the lower New York 28 adjusted gross income. 29 (B) "Qualifying individual" shall mean an individual who: (i) is under 30 the age of thirteen at the close of the taxable year or is physically or 31 mentally incapable of caring for themselves during the taxable year; 32 (ii) resides with the eligible taxpayer for more than one-half of the 33 taxable year; and (iii) is claimed as a dependent pursuant to section 34 one hundred fifty-two of the internal revenue code, or could otherwise 35 be claimed as a dependent. Provided, a qualifying individual shall also 36 include an individual where a noncustodial parent claims such individual 37 under subsection (e) of section one hundred fifty-two of the internal 38 revenue code or the individual is the eligible taxpayer's spouse who is 39 physically or mentally incapable of caring for themselves during the 40 taxable year and resides with the eligible taxpayer for more than one- 41 half of the taxable year. 42 (C) "Earned income" shall mean the wages, salaries, tips and other 43 employee compensation, and those items of gross income which are inclu- 44 dible in the computation of net earnings from self-employment. 45 (D) (i) "Qualifying expenses" shall mean the sum of the amount 46 incurred and paid in the taxable year directly by an eligible taxpayer 47 for: a. services provided in and about the eligible taxpayer's resi- 48 dence to provide care for any qualifying individual, including such 49 expenses for the room and board of any such caregiver; and b. non-over- 50 night services provided outside of the eligible taxpayer's residence to 51 provide care for any qualifying individual; provided, however, that 52 amounts incurred or paid for which the primary purpose is educational 53 shall not be included. 54 (ii) Provided, however, "qualifying expenses" shall not include: a. 55 any amounts paid whereby the taxpayer receives reimbursement or are paid 56 from funds provided by a government entity, dependent care account, orS. 9009--C 6 A. 10009--C 1 other third party; b. any amounts paid to a dependent of the taxpayer 2 for which the taxpayer or the taxpayer's spouse is entitled to a 3 deduction for the taxable year under subsection (c) of section one 4 hundred fifty-one of the internal revenue code; or c. any amounts paid 5 to a child of the taxpayer as defined in paragraph one of subsection (f) 6 of section one hundred fifty-two of the internal revenue code who has 7 not attained the age of nineteen at the close of the taxable year. 8 (iii) For the purposes of the credit provided pursuant to this 9 subsection, an eligible taxpayer's qualifying expenses shall not exceed: 10 a. three thousand dollars, in the case of an eligible taxpayer with 11 one qualifying individual; 12 b. six thousand dollars, in the case of an eligible taxpayer with two 13 qualifying individuals; 14 c. seven thousand five hundred dollars, in the case of an eligible 15 taxpayer with three qualifying individuals; 16 d. eight thousand five hundred dollars, in the case of an eligible 17 taxpayer with four qualifying individuals; and 18 e. nine thousand dollars, in the case of an eligible taxpayer with 19 five or more qualifying individuals. 20 Provided, further, that an eligible taxpayer's qualifying expenses 21 shall not exceed such eligible taxpayer's earned income as defined in 22 subparagraph (C) of this paragraph, or in the case of a married eligible 23 taxpayer filing a joint return, the lesser of the earned income of each 24 spouse determined separately. 25 (E) "Applicable percentage" shall mean: (i) fifty-five percent in the 26 case of an eligible taxpayer with a New York adjusted gross income 27 determined pursuant to section six hundred twelve of this article of 28 fifteen thousand dollars or less; or (ii) fifty-five percent reduced by 29 twenty-five hundred thousandths of a percentage point for each dollar of 30 an eligible taxpayer's New York adjusted gross income determined pursu- 31 ant to section six hundred twelve of this article in excess of fifteen 32 thousand dollars. Provided, however, that the applicable percentage for 33 an eligible taxpayer shall not be reduced below four percent. 34 (3) The amount of the credit allowed to an eligible taxpayer under 35 this subsection shall be the product of the eligible taxpayer's qualify- 36 ing expenses determined pursuant to subparagraph (D) of paragraph two of 37 this subsection and the applicable percentage determined pursuant to 38 subparagraph (E) of paragraph two of this subsection. Provided, however, 39 the credit allowed under this subsection shall be reduced by twenty 40 dollars for each one thousand dollars by which the eligible taxpayer's 41 New York adjusted gross income determined pursuant to section six 42 hundred twelve of this article exceeds seven hundred fifty thousand 43 dollars. 44 (4) To be eligible for the credit provided by this subsection, an 45 eligible taxpayer shall provide the following information to the satis- 46 faction of the commissioner: (i) the amount of qualifying expenses; (ii) 47 identifying information related to the care provider; (iii) identifying 48 information related to the qualifying individual for whom the expenses 49 were incurred; and (iv) any other information as required. 50 (5) Any references to the internal revenue code in this subsection 51 shall be to the internal revenue code as it existed prior to January 52 first, two thousand twenty-five. 53 § 3. Paragraph 3 of subsection (e) of section 697 of the tax law, as 54 amended by chapter 284 of the laws of 2016, is amended to read as 55 follows:S. 9009--C 7 A. 10009--C 1 (3) Nothing herein shall be construed to prohibit the department, its 2 officers or employees from furnishing information to the office of 3 temporary and disability assistance relating to the payment of the cred- 4 it for certain household and dependent care services necessary for gain- 5 ful employment under subsection (c) of section six hundred six of this 6 article, the New York state child and dependent care credit under 7 subsection (c-2) of section six hundred six of this article, and the 8 earned income credit under subsection (d) of section six hundred six of 9 this article and the enhanced earned income credit under subsection 10 (d-1) of section six hundred six of this article, or pursuant to a local 11 law enacted by a city having a population of one million or more pursu- 12 ant to subsection (f) of section thirteen hundred ten of this chapter, 13 only to the extent necessary to calculate qualified state expenditures 14 under paragraph seven of subdivision (a) of section four hundred nine of 15 the federal social security act or to document the proper expenditure of 16 federal temporary assistance for needy families funds under section four 17 hundred three of such act. The office of temporary and disability 18 assistance may redisclose such information to the United States depart- 19 ment of health and human services only to the extent necessary to calcu- 20 late such qualified state expenditures or to document the proper expend- 21 iture of such federal temporary assistance for needy families funds. 22 Nothing herein shall be construed to prohibit the delivery by the 23 commissioner to a commissioner of jurors, appointed pursuant to section 24 five hundred four of the judiciary law, or, in counties within cities 25 having a population of one million or more, to the county clerk of such 26 county, or to the clerk of the court or jury administrator of a United 27 States district court appointed pursuant to title twenty-eight of the 28 United States Code, section 1836(b)(2), of a mailing list of individuals 29 to whom income tax forms are mailed by the commissioner for the sole 30 purpose of compiling a list of prospective jurors as provided in article 31 sixteen of the judiciary law or title twenty-eight of the United States 32 Code. Provided, however, such delivery shall only be made pursuant to an 33 order of the chief administrator of the courts, appointed pursuant to 34 section two hundred ten of the judiciary law or an order of a chief 35 judge of any United States district court in New York State. No such 36 order may be issued unless such chief administrator or chief judge of 37 such United States district court is satisfied that such mailing list is 38 needed to compile a proper list of prospective jurors for the county or 39 such United States district court for which such order is sought and 40 that, in view of the responsibilities imposed by the various laws of the 41 state on the department, it is reasonable to require the commissioner to 42 furnish such list. Such order shall provide that such list shall be used 43 for the sole purpose of compiling a list of prospective jurors and that 44 such commissioner of jurors, or such county clerk, or clerk of the court 45 or jury administrator of such United States district court shall take 46 all necessary steps to insure that the list is kept confidential and 47 that there is no unauthorized use or disclosure of such list. Further- 48 more, nothing herein shall be construed to prohibit the delivery to a 49 taxpayer or [his or her] their duly authorized representative of a 50 certified copy of any return or report filed in connection with [his or51her] their tax or to prohibit the publication of statistics so classi- 52 fied as to prevent the identification of particular reports or returns 53 and the items thereof, or the inspection by the attorney general or 54 other legal representatives of the state of the report or return of any 55 taxpayer or of any employer filed under section one hundred 56 seventy-one-h of this chapter, where such taxpayer or employer shallS. 9009--C 8 A. 10009--C 1 bring action to set aside or review the tax based thereon, or against 2 whom an action or proceeding under this chapter or under this chapter 3 and article eighteen of the labor law has been recommended by the 4 commissioner, the commissioner of labor with respect to unemployment 5 insurance matters, or the attorney general or has been instituted, or 6 the inspection of the reports or returns required under this article by 7 the comptroller or duly designated officer or employee of the state 8 department of audit and control, for purposes of the audit of a refund 9 of any tax paid by a taxpayer under this article, or the furnishing to 10 the state department of labor of unemployment insurance information 11 obtained or derived from quarterly combined withholding, wage reporting 12 and unemployment insurance returns required to be filed by employers 13 pursuant to paragraph four of subsection (a) of section six hundred 14 seventy-four of this article, for purposes of administration of such 15 department's unemployment insurance program, employment services 16 program, federal and state employment and training programs, employment 17 statistics and labor market information programs, worker protection 18 programs, federal programs for which the department has administrative 19 responsibility or for other purposes deemed appropriate by the commis- 20 sioner of labor consistent with the provisions of the labor law, and 21 redisclosure of such information in accordance with the provisions of 22 sections five hundred thirty-six and five hundred thirty-seven of the 23 labor law or any other applicable law, or the furnishing to the state 24 office of temporary and disability assistance of information obtained or 25 derived from New York state personal income tax returns as described in 26 paragraph (b) of subdivision two of section one hundred seventy-one-g of 27 this chapter for the purpose of reviewing support orders enforced pursu- 28 ant to title six-A of article three of the social services law to aid in 29 the determination of whether such orders should be adjusted, or the 30 furnishing of information obtained from the reports required to be 31 submitted by employers regarding newly hired or re-hired employees 32 pursuant to section one hundred seventy-one-h of this chapter to the 33 state office of temporary and disability assistance, the state depart- 34 ment of health, the state department of labor and the workers' compen- 35 sation board for purposes of administration of the child support 36 enforcement program, verification of individuals' eligibility for one or 37 more of the programs specified in subsection (b) of section eleven 38 hundred thirty-seven of the federal social security act and for other 39 public assistance programs authorized by state law, and administration 40 of the state's employment security and workers' compensation programs, 41 and to the national directory of new hires established pursuant to 42 section four hundred fifty-three-A of the federal social security act 43 for the purposes specified in such section, or the furnishing to the 44 state office of temporary and disability assistance of the amount of an 45 overpayment of income tax and interest thereon certified to the comp- 46 troller to be credited against past-due support pursuant to section one 47 hundred seventy-one-c of this chapter and of the name and social securi- 48 ty number of the taxpayer who made such overpayment, or the disclosing 49 to the commissioner of finance of the city of New York, pursuant to 50 section one hundred seventy-one-l of this chapter, of the amount of an 51 overpayment and interest thereon certified to the comptroller to be 52 credited against a city of New York tax warrant judgment debt and of the 53 name and social security number of the taxpayer who made such overpay- 54 ment, or the furnishing to the New York state higher education services 55 corporation of the amount of an overpayment of income tax and interest 56 thereon certified to the comptroller to be credited against the amountS. 9009--C 9 A. 10009--C 1 of a default in repayment of any education loan debt, including judg- 2 ments, owed to the federal or New York state government that is being 3 collected by the New York state higher education services corporation, 4 and of the name and social security number of the taxpayer who made such 5 overpayment, or the furnishing to the state department of health of the 6 information required by paragraph (f) of subdivision two and subdivision 7 two-a of section two thousand five hundred eleven of the public health 8 law and by subdivision eight of section three hundred sixty-six-a of the 9 social services law, or the furnishing to the state university of New 10 York or the city university of New York respectively or the attorney 11 general on behalf of such state or city university the amount of an 12 overpayment of income tax and interest thereon certified to the comp- 13 troller to be credited against the amount of a default in repayment of a 14 state university loan pursuant to section one hundred seventy-one-e of 15 this chapter and of the name and social security number of the taxpayer 16 who made such overpayment, or the disclosing to a state agency, pursuant 17 to section one hundred seventy-one-f of this chapter, of the amount of 18 an overpayment and interest thereon certified to the comptroller to be 19 credited against a past-due legally enforceable debt owed to such agency 20 and of the name and social security number of the taxpayer who made such 21 overpayment, or the furnishing of employee and employer information 22 obtained through the wage reporting system, pursuant to section one 23 hundred seventy-one-a of this chapter, as added by chapter five hundred 24 forty-five of the laws of nineteen hundred seventy-eight, to the state 25 office of temporary and disability assistance, the department of health 26 or to the state office of the medicaid inspector general for the purpose 27 of verifying eligibility for and entitlement to amounts of benefits 28 under the social services law or similar law of another jurisdiction, 29 locating absent parents or other persons legally responsible for the 30 support of applicants for or recipients of public assistance and care 31 under the social services law and persons legally responsible for the 32 support of a recipient of services under section one hundred eleven-g of 33 the social services law and, in appropriate cases, establishing support 34 obligations pursuant to the social services law and the family court act 35 or similar provision of law of another jurisdiction for the purpose of 36 evaluating the effect on earnings of participation in employment, train- 37 ing or other programs designed to promote self-sufficiency authorized 38 pursuant to the social services law by current recipients of public 39 assistance and care and by former applicants and recipients of public 40 assistance and care, (except that with regard to former recipients, 41 information which relates to a particular former recipient shall be 42 provided with client identifying data deleted), to the state office of 43 temporary and disability assistance for the purpose of determining the 44 eligibility of any child in the custody, care and custody or custody and 45 guardianship of a local social services district or of the office of 46 children and family services for federal payments for foster care and 47 adoption assistance pursuant to the provisions of title IV-E of the 48 federal social security act by providing information with respect to the 49 parents, the stepparents, the child and the siblings of the child who 50 were living in the same household as such child during the month that 51 the court proceedings leading to the child's removal from the household 52 were initiated, or the written instrument transferring care and custody 53 of the child pursuant to the provisions of section three hundred fifty- 54 eight-a or three hundred eighty-four-a of the social services law was 55 signed, provided however that the office of temporary and disability 56 assistance shall only use the information obtained pursuant to thisS. 9009--C 10 A. 10009--C 1 subdivision for the purpose of determining the eligibility of such child 2 for federal payments for foster care and adoption assistance pursuant to 3 the provisions of title IV-E of the federal social security act, and to 4 the state department of labor, or other individuals designated by the 5 commissioner of labor, for the purpose of the administration of such 6 department's unemployment insurance program, employment services 7 program, federal and state employment and training programs, employment 8 statistics and labor market information programs, worker protection 9 programs, federal programs for which the department has administrative 10 responsibility or for other purposes deemed appropriate by the commis- 11 sioner of labor consistent with the provisions of the labor law, and 12 redisclosure of such information in accordance with the provisions of 13 sections five hundred thirty-six and five hundred thirty-seven of the 14 labor law, or the furnishing of information, which is obtained from the 15 wage reporting system operated pursuant to section one hundred seventy- 16 one-a of this chapter, as added by chapter five hundred forty-five of 17 the laws of nineteen hundred seventy-eight, to the state office of 18 temporary and disability assistance so that it may furnish such informa- 19 tion to public agencies of other jurisdictions with which the state 20 office of temporary and disability assistance has an agreement pursuant 21 to paragraph (h) or (i) of subdivision three of section twenty of the 22 social services law, and to the state office of temporary and disability 23 assistance for the purpose of fulfilling obligations and responsibil- 24 ities otherwise incumbent upon the state department of labor, under 25 section one hundred twenty-four of the federal family support act of 26 nineteen hundred eighty-eight, by giving the federal parent locator 27 service, maintained by the federal department of health and human 28 services, prompt access to such information as required by such act, or 29 to the state department of health to verify eligibility under the child 30 health insurance plan pursuant to subdivisions two and two-a of section 31 two thousand five hundred eleven of the public health law, to verify 32 eligibility under the medical assistance and family health plus programs 33 pursuant to subdivision eight of section three hundred sixty-six-a of 34 the social services law, and to verify eligibility for the program for 35 elderly pharmaceutical insurance coverage under title three of article 36 two of the elder law, or to the office of vocational and educational 37 services for individuals with disabilities of the education department, 38 the commission for the blind and any other state vocational rehabili- 39 tation agency, for purposes of obtaining reimbursement from the federal 40 social security administration for expenditures made by such office, 41 commission or agency on behalf of disabled individuals who have achieved 42 economic self-sufficiency or to the higher education services corpo- 43 ration for the purpose of assisting the corporation in default 44 prevention and default collection of education loan debt, including 45 judgments, owed to the federal or New York state government; provided, 46 however, that such information shall be limited to the names, social 47 security numbers, home and/or business addresses, and employer names of 48 defaulted or delinquent student loan borrowers, or to the office of the 49 state comptroller for purposes of verifying the income of a retired 50 member of a retirement system or pension plan administered by the state 51 or any of its political subdivisions who returns to public employment. 52 Provided, however, that with respect to employee information the 53 office of temporary and disability assistance shall only be furnished 54 with the names, social security account numbers and gross wages of those 55 employees who are (A) applicants for or recipients of benefits under the 56 social services law, or similar provision of law of another jurisdictionS. 9009--C 11 A. 10009--C 1 (pursuant to an agreement under subdivision three of section twenty of 2 the social services law) or, (B) absent parents or other persons legally 3 responsible for the support of applicants for or recipients of public 4 assistance and care under the social services law or similar provision 5 of law of another jurisdiction (pursuant to an agreement under subdivi- 6 sion three of section twenty of the social services law), or (C) persons 7 legally responsible for the support of a recipient of services under 8 section one hundred eleven-g of the social services law or similar 9 provision of law of another jurisdiction (pursuant to an agreement under 10 subdivision three of section twenty of the social services law), or (D) 11 employees about whom wage reporting system information is being 12 furnished to public agencies of other jurisdictions, with which the 13 state office of temporary and disability assistance has an agreement 14 pursuant to paragraph (h) or (i) of subdivision three of section twenty 15 of the social services law, or (E) employees about whom wage reporting 16 system information is being furnished to the federal parent locator 17 service, maintained by the federal department of health and human 18 services, for the purpose of enabling the state office of temporary and 19 disability assistance to fulfill obligations and responsibilities other- 20 wise incumbent upon the state department of labor, under section one 21 hundred twenty-four of the federal family support act of nineteen 22 hundred eighty-eight, and, only if, the office of temporary and disabil- 23 ity assistance certifies to the commissioner that such persons are such 24 applicants, recipients, absent parents or persons legally responsible 25 for support or persons about whom information has been requested by a 26 public agency of another jurisdiction or by the federal parent locator 27 service and further certifies that in the case of information requested 28 under agreements with other jurisdictions entered into pursuant to 29 subdivision three of section twenty of the social services law, that 30 such request is in compliance with any applicable federal law. Provided, 31 further, that where the office of temporary and disability assistance 32 requests employee information for the purpose of evaluating the effects 33 on earnings of participation in employment, training or other programs 34 designed to promote self-sufficiency authorized pursuant to the social 35 services law, the office of temporary and disability assistance shall 36 only be furnished with the quarterly gross wages (excluding any refer- 37 ence to the name, social security number or any other information which 38 could be used to identify any employee or the name or identification 39 number of any employer) paid to employees who are former applicants for 40 or recipients of public assistance and care and who are so certified to 41 the commissioner by the commissioner of the office of temporary and 42 disability assistance. Provided, further, that with respect to employee 43 information, the department of health shall only be furnished with the 44 information required pursuant to the provisions of paragraph (f) of 45 subdivision two and subdivision two-a of section two thousand five 46 hundred eleven of the public health law and subdivision eight of section 47 three hundred sixty-six-a of the social services law, with respect to 48 those individuals whose eligibility under the child health insurance 49 plan, medical assistance program, and family health plus program is to 50 be determined pursuant to such provisions and with respect to those 51 members of any such individual's household whose income affects such 52 individual's eligibility and who are so certified to the commissioner or 53 by the department of health. Provided, further, that wage reporting 54 information shall be furnished to the office of vocational and educa- 55 tional services for individuals with disabilities of the education 56 department, the commission for the blind and any other state vocationalS. 9009--C 12 A. 10009--C 1 rehabilitation agency only if such office, commission or agency, as 2 applicable, certifies to the commissioner that such information is 3 necessary to obtain reimbursement from the federal social security 4 administration for expenditures made on behalf of disabled individuals 5 who have achieved self-sufficiency. Reports and returns shall be 6 preserved for three years and thereafter until the commissioner orders 7 them to be destroyed. 8 § 4. The opening paragraph of paragraph 1 of subdivision (e) of 9 section 11-1706 of the administrative code of the city of New York, as 10 added by chapter 484 of the laws of 2007, is amended to read as follows: 11 For taxable years beginning on or after January first, two thousand 12 seven, a taxpayer shall be allowed a credit as provided herein equal to 13 the applicable percentage of the credit allowed under [subsection] 14 subsections (c) and (c-2) of section six hundred six of the tax law with 15 respect to qualifying individuals as defined in paragraph one of 16 subsection (b) of section twenty-one of the internal revenue code (with- 17 out regard to whether the taxpayer in fact claimed the credit under such 18 section twenty-one for the taxable year) who are dependents of the 19 taxpayer and who have not attained the age of four as of the end of the 20 taxable year. The applicable percentage shall be determined as follows: 21 § 5. This act shall take effect immediately. 22 PART B 23 Section 1. Subsection (c) of section 612 of the tax law is amended by 24 adding a new paragraph 48 to read as follows: 25 (48) For taxable years beginning on or after January first, two thou- 26 sand twenty-six, an amount of up to twenty-five thousand dollars to the 27 extent allowed as a federal deduction pursuant to section two hundred 28 twenty-four of the internal revenue code. 29 § 2. This act shall take effect immediately. 30 PART C 31 Section 1. Subsection (g) of section 615 of the tax law, as amended by 32 section 1 of part Q of chapter 59 of the laws of 2019, paragraph 2 as 33 amended by section 1 of part A of chapter 59 of the laws of 2024, is 34 amended to read as follows: 35 (g) Notwithstanding subsection (a) of this section, the New York item- 36 ized deduction for charitable contributions shall be the amount allowed 37 under section one hundred seventy of the internal revenue code or the 38 amount allowable pursuant to paragraph three of this subsection, as 39 modified by paragraph nine of subsection (c) of this section and as 40 limited by this subsection. (1) With respect to an individual whose New 41 York adjusted gross income is over one million dollars and no more than 42 ten million dollars, the New York itemized deduction shall be an amount 43 equal to fifty percent of any charitable contribution deduction allowed 44 under section one hundred seventy of the internal revenue code or allow- 45 able pursuant to paragraph three of this subsection for taxable years 46 beginning after two thousand nine and before two thousand twenty-five. 47 With respect to an individual whose New York adjusted gross income is 48 over one million dollars, the New York itemized deduction shall be an 49 amount equal to fifty percent of any charitable contribution deduction 50 allowed under section one hundred seventy of the internal revenue code 51 or allowable pursuant to paragraph three of this subsection for taxable 52 years beginning in two thousand nine or after two thousand twenty-four.S. 9009--C 13 A. 10009--C 1 (2) With respect to an individual whose New York adjusted gross income 2 is over ten million dollars, the New York itemized deduction shall be an 3 amount equal to twenty-five percent of any charitable contribution 4 deduction allowed under section one hundred seventy of the internal 5 revenue code or allowable pursuant to paragraph three of this subsection 6 for taxable years beginning after two thousand nine and ending before 7 two thousand thirty. 8 (3) Contributions to an organization that meets the definition of an 9 exempt organization under paragraph four of subdivision (a) of section 10 eleven hundred sixteen of this chapter or to organizations that have 11 applied for, and were approved for tax-exempt status under subsection 12 (c) of section five hundred one of the internal revenue code by the 13 internal revenue service before January first, two thousand twenty-five, 14 will continue to qualify as charitable contributions allowable as a New 15 York itemized deduction under this subsection, to the extent otherwise 16 allowable under section one hundred seventy of the internal revenue 17 code, even if the internal revenue service revokes such organization's 18 tax-exempt status, so long as the organization establishes that the 19 revocation was unrelated to the organization's charitable mission and 20 that it continues to meet the statutory requirements of paragraph three 21 of subsection (c) of section five hundred one of the internal revenue 22 code and the regulations and authorities promulgated thereunder. 23 § 2. This act shall take effect immediately and shall apply to taxable 24 years beginning on or after January 1, 2026. 25 PART D 26 Section 1. Subdivision (c) of section 42 of the tax law, as amended by 27 section 1 of part N of chapter 59 of the laws of 2019, is amended to 28 read as follows: 29 (c) For purposes of this section, the term "eligible farmer" [means a30taxpayer whose federal gross income from farming as defined] shall have 31 the same meaning as set forth in subsection (n) of section six hundred 32 six of this chapter [for the taxable year is at least two-thirds of33excess federal gross income. Excess federal gross income means the34amount of federal gross income from all sources for the taxable year in35excess of thirty thousand dollars. For purposes of this section,36payments from the state's farmland protection program, administered by37the department of agriculture and markets, shall be included as federal38gross income from farming for otherwise eligible farmers]. 39 § 2. Subdivision (b) of section 42-a of the tax law, as amended by 40 section 2 of part KK of chapter 59 of the laws of 2025, is amended to 41 read as follows: 42 (b) For purposes of this section, the term "eligible farm employer" 43 means a taxpayer who received an overtime expense certificate pursuant 44 to section three hundred thirty-five of the agriculture and markets law 45 and [whose federal gross income from farming] who is an eligible farmer, 46 as defined in subsection (n) of section six hundred six of this chapter 47 for the taxable year [is at least two-thirds of excess federal gross48income. Excess federal gross income means the amount of federal gross49income from all sources for the taxable year in excess of thirty thou-50sand dollars. For purposes of this section, payments from the state's51farmland protection program, administered by the department of agricul-52ture and markets, shall be included as federal gross income from farming53for otherwise eligible farmers].S. 9009--C 14 A. 10009--C 1 § 3. Subdivision 11 of section 210-B of the tax law is amended by 2 adding a new paragraph (a-1) to read as follows: 3 (a-1) New York gross income from farming. For purposes of this subdi- 4 vision, the term "New York gross income from farming" means a taxpayer's 5 federal gross income from farming, plus payments from the state's farm- 6 land protection program, administered by the department of agriculture 7 and markets, income from a commercial horse boarding operation as 8 defined by subdivision thirteen of section three hundred one of the 9 agriculture and markets law, and income from the production or sale of 10 maple syrup, Christmas trees, and cider or wine from a licensed New York 11 state farm cidery or winery, as provided for in section fifty-eight-c 12 and article six of the alcoholic beverage control law. 13 § 4. Paragraph (b) of subdivision 11 of section 210-B of the tax law, 14 as added by section 17 of part A of chapter 59 of the laws of 2014, is 15 amended to read as follows: 16 (b) Eligible farmer. For purposes of this subdivision, the term 17 "eligible farmer" means a taxpayer whose [federal] New York gross income 18 from farming for the taxable year, or whose average New York gross 19 income from farming for the current year and two prior taxable years, is 20 at least two-thirds of [excess] such taxpayer's federal gross income 21 from all sources less thirty thousand dollars. The term "eligible farm- 22 er" also includes a corporation other than the taxpayer of record for 23 qualified agricultural land which has paid the school district property 24 taxes on such land pursuant to a contract for the future purchase of 25 such land; provided that such corporation [has a federal gross income26from farming for the taxable year which is at least two-thirds of excess27federal gross income; and provided further that, in determining such28income eligibility, a taxpayer may, for any taxable year, use the aver-29age of such federal gross income from farming for that taxable year and30such income for the two consecutive taxable years immediately preceding31such taxable year. Excess federal gross income means the amount of32federal gross income from all sources for the taxable year in excess of33thirty thousand dollars. For the purposes of this paragraph, payments34from the state's farmland protection program, administered by the35department of agriculture and markets, shall be included as federal36gross income from farming for otherwise eligible farmers] meets the 37 definition of eligible farmer pursuant to this paragraph. 38 § 5. Paragraph (i) of subdivision 11 of section 210-B of the tax law 39 is REPEALED. 40 § 6. Paragraph (b) of subdivision 52 of section 210-B of the tax law, 41 as added by section 4 of part DDD of chapter 59 of the laws of 2017, is 42 amended to read as follows: 43 (b) Eligible farmer. For purposes of this subdivision, the term 44 "eligible farmer" [means a taxpayer whose federal gross income from45farming for the taxable year is at least two-thirds of excess federal46gross income. Excess federal gross income means the amount of federal47gross income from all sources for the taxable year in excess of thirty48thousand dollars. For purposes of this paragraph, payments from the49state's farmland protection program, administered by the department of50agriculture and markets, shall be included as federal gross income from51farming for otherwise eligible farmers] shall have the same meaning as 52 set forth subdivision eleven of this section. 53 § 7. Subsection (n) of section 606 of the tax law is amended by adding 54 a new paragraph 1-a to read as follows: 55 (1-a) New York gross income from farming. For purposes of this 56 subsection, the term "New York gross income from farming" means aS. 9009--C 15 A. 10009--C 1 taxpayer's federal gross income from farming, plus payments from the 2 state's farmland protection program, administered by the department of 3 agriculture and markets, income from a commercial horse boarding opera- 4 tion as defined by subdivision thirteen of section three hundred one of 5 the agriculture and markets law, and income from the production or sale 6 of maple syrup, Christmas trees, and cider or wine from a licensed New 7 York state farm cidery or winery, as provided for in section fifty- 8 eight-c and article six of the alcoholic beverage control law. 9 § 8. Paragraph 2 of subsection (n) of section 606 of the tax law, as 10 amended by chapter 297 of the laws of 2010, is amended to read as 11 follows: 12 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 13 ble farmer" means a taxpayer whose [federal] New York gross income from 14 farming for the taxable year, or whose average New York gross income 15 from farming for the current year and two prior taxable years, is at 16 least two-thirds of [excess] such taxpayer's federal gross income from 17 all sources less thirty thousand dollars. The term "eligible farmer" 18 also includes an individual other than the taxpayer of record for quali- 19 fied agricultural land who has paid the school district property taxes 20 on such land pursuant to a contract for the future purchase of such 21 land; provided that such individual [has a federal gross income from22farming for the taxable year which is at least two-thirds of excess23federal gross income; and provided further that, in determining such24income eligibility, a taxpayer may, for any taxable year, use the aver-25age of such federal gross income from farming for that taxable year and26such income for the two consecutive taxable years immediately preceding27such taxable year. Excess federal gross income means the amount of28federal gross income from all sources for the taxable year reduced by29the sum (not to exceed thirty thousand dollars) of those items included30in federal gross income which consist of (i) earned income, (ii) pension31payments, including social security payments, (iii) interest, and (iv)32dividends. For purposes of this paragraph, the term "earned income"33shall mean wages, salaries, tips and other employee compensation, and34those items of gross income which are includible in the computation of35net earnings from self-employment. For the purposes of this paragraph,36payments from the state's farmland protection program, administered by37the department of agriculture and markets, shall be included as federal38gross income from farming for otherwise eligible farmers] meets the 39 definition of "eligible farmer" pursuant to this paragraph. 40 § 9. Paragraph 8 of subsection (n) of section 606 of the tax law is 41 REPEALED. 42 § 10. Paragraph 2 of subsection (n-2) of section 606 of the tax law, 43 as added by section 1 of part DDD of chapter 59 of the laws of 2017, is 44 amended to read as follows: 45 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 46 ble farmer" [means a taxpayer whose federal gross income from farming47for the taxable year is at least two-thirds of excess federal gross48income. Excess federal gross income means the amount of federal gross49income from all sources for the taxable year reduced by the sum (not to50exceed thirty thousand dollars) of those items included in federal gross51income that consist of: (i) earned income, (ii) pension payments,52including social security payments, (iii) interest, and (iv) dividends.53For purposes of this paragraph, the term "earned income" shall mean54wages, salaries, tips and other employee compensation, and those items55of gross income that are includible in the computation of net earnings56from self-employment. For the purposes of this paragraph, payments fromS. 9009--C 16 A. 10009--C 1the state's farmland protection program, administered by the department2of agriculture and markets, shall be included as federal gross income3from farming for otherwise eligible farmers] shall have the same meaning 4 as set forth in subsection (n) of this section. 5 § 11. This act shall take effect immediately and shall apply to taxa- 6 ble years beginning on or after January 1, 2026. 7 PART E 8 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of 9 section 210 of the tax law, as amended by section 1 of subpart A of part 10 I of chapter 59 of the laws of 2023, is amended to read as follows: 11 For taxable years beginning before January first, two thousand 12 sixteen, the amount prescribed by this paragraph shall be computed at 13 the rate of seven and one-tenth percent of the taxpayer's business 14 income base. For taxable years beginning on or after January first, two 15 thousand sixteen, the amount prescribed by this paragraph shall be six 16 and one-half percent of the taxpayer's business income base. For taxable 17 years beginning on or after January first, two thousand twenty-one and 18 before January first, two thousand [twenty-seven] thirty for any taxpay- 19 er with a business income base for the taxable year of more than five 20 million dollars, the amount prescribed by this paragraph shall be seven 21 and one-quarter percent of the taxpayer's business income base. The 22 taxpayer's business income base shall mean the portion of the taxpayer's 23 business income apportioned within the state as hereinafter provided. 24 However, in the case of a small business taxpayer, as defined in para- 25 graph (f) of this subdivision, the amount prescribed by this paragraph 26 shall be computed pursuant to subparagraph (iv) of this paragraph and in 27 the case of a manufacturer, as defined in subparagraph (vi) of this 28 paragraph, the amount prescribed by this paragraph shall be computed 29 pursuant to subparagraph (vi) of this paragraph, and, in the case of a 30 qualified emerging technology company, as defined in subparagraph (vii) 31 of this paragraph, the amount prescribed by this paragraph shall be 32 computed pursuant to subparagraph (vii) of this paragraph. 33 § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 34 of the tax law, as amended by section 2 of subpart A of part I of chap- 35 ter 59 of the laws of 2023, is amended to read as follows: 36 (1) (i) The amount prescribed by this paragraph shall be computed 37 at .15 percent for each dollar of the taxpayer's total business capital, 38 or the portion thereof apportioned within the state as hereinafter 39 provided for taxable years beginning before January first, two thousand 40 sixteen. However, in the case of a cooperative housing corporation as 41 defined in the internal revenue code, the applicable rate shall be .04 42 percent until taxable years beginning on or after January first, two 43 thousand twenty and zero percent for taxable years beginning on or after 44 January first, two thousand twenty-one. The rate of tax for subsequent 45 tax years shall be as follows: .125 percent for taxable years beginning 46 on or after January first, two thousand sixteen and before January 47 first, two thousand seventeen; .100 percent for taxable years beginning 48 on or after January first, two thousand seventeen and before January 49 first, two thousand eighteen; .075 percent for taxable years beginning 50 on or after January first, two thousand eighteen and before January 51 first, two thousand nineteen; .050 percent for taxable years beginning 52 on or after January first, two thousand nineteen and before January 53 first, two thousand twenty; .025 percent for taxable years beginning on 54 or after January first, two thousand twenty and before January first,S. 9009--C 17 A. 10009--C 1 two thousand twenty-one; and .1875 percent for years beginning on or 2 after January first, two thousand twenty-one and before January first, 3 two thousand [twenty-seven] thirty, and zero percent for taxable years 4 beginning on or after January first, two thousand [twenty-seven] thirty. 5 Provided however, for taxable years beginning on or after January first, 6 two thousand twenty-one, the rate of tax for a small business as defined 7 in paragraph (f) of this subdivision shall be zero percent. The rate of 8 tax for a qualified New York manufacturer shall be .132 percent for 9 taxable years beginning on or after January first, two thousand fifteen 10 and before January first, two thousand sixteen, .106 percent for taxable 11 years beginning on or after January first, two thousand sixteen and 12 before January first, two thousand seventeen, .085 percent for taxable 13 years beginning on or after January first, two thousand seventeen and 14 before January first, two thousand eighteen; .056 percent for taxable 15 years beginning on or after January first, two thousand eighteen and 16 before January first, two thousand nineteen; .038 percent for taxable 17 years beginning on or after January first, two thousand nineteen and 18 before January first, two thousand twenty; .019 percent for taxable 19 years beginning on or after January first, two thousand twenty and 20 before January first, two thousand twenty-one; and zero percent for 21 years beginning on or after January first, two thousand twenty-one. (ii) 22 In no event shall the amount prescribed by this paragraph exceed three 23 hundred fifty thousand dollars for qualified New York manufacturers and 24 for all other taxpayers five million dollars. 25 § 3. This act shall take effect immediately. 26 PART F 27 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax 28 law is amended by adding three new subparagraphs 24, 25 and 26 to read 29 as follows: 30 (24) For taxable years beginning on or after January first, two thou- 31 sand twenty-five, in the case of qualified production property described 32 in paragraph two of subsection (n) of section one hundred sixty-eight of 33 the internal revenue code, the amount of any deduction allowed pursuant 34 to subsection (a) of section one hundred sixty-seven of the internal 35 revenue code as if the taxpayer has not made an election pursuant to 36 subsection (n) of section one hundred sixty-eight of the internal reven- 37 ue code. 38 (25) For taxable years beginning on or after January first, two thou- 39 sand twenty-five, the amount of any foreign and domestic research or 40 experimental expenditures, as defined in sections one hundred seventy- 41 four and 174A of the internal revenue code, paid or incurred in each 42 taxable year on and after January first, two thousand twenty-five, amor- 43 tized over a sixty-month period as if the election in subsection (c) of 44 section 174A of the internal revenue code applied to such foreign and 45 domestic research or experimental expenditures. 46 (26) For taxable years beginning on or after January first, two thou- 47 sand twenty-five, the remaining amount of any foreign and domestic 48 research or experimental expenditures, as defined in sections one 49 hundred seventy-four and 174A of the internal revenue code, paid or 50 incurred prior to January first, two thousand twenty-five, determined as 51 if section one hundred seventy-four of the internal revenue code in 52 effect as of January first, two thousand twenty-two, applied to such 53 expenditures.S. 9009--C 18 A. 10009--C 1 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is 2 amended by adding two new subparagraphs 28 and 29 to read as follows: 3 (28) For taxable years beginning on or after January first, two thou- 4 sand twenty-five, in the case of qualified production property described 5 in paragraph two of subsection (n) of section one hundred sixty-eight of 6 the internal revenue code, any amount which the taxpayer claimed as a 7 deduction under subsection (a) of section one hundred sixty-seven of the 8 internal revenue code that included an allowance solely as a result of 9 an election made pursuant to subsection (n) of section one hundred 10 sixty-eight of the internal revenue code. 11 (29) For taxable years beginning on or after January first, two thou- 12 sand twenty-five, any amount claimed as a deduction under sections one 13 hundred seventy-four and 174A of the internal revenue code in effect as 14 of January first, two thousand twenty-five, and any amount claimed as a 15 deduction pursuant to federal Public Law 119-21, title VII, section 16 70302(f)(2)(a), for foreign and domestic research or experimental 17 expenditures, as defined in sections one hundred seventy-four and 174A 18 of the internal revenue code. 19 § 3. Subsection (b) of section 612 of the tax law is amended by adding 20 two new paragraphs 44 and 45 to read as follows: 21 (44) For taxable years beginning on or after January first, two thou- 22 sand twenty-five, in the case of qualified production property described 23 in paragraph two of subsection (n) of section one hundred sixty-eight of 24 the internal revenue code, any amount which the taxpayer claimed as a 25 deduction under subsection (a) of section one hundred sixty-seven of the 26 internal revenue code that included an allowance solely as a result of 27 an election made pursuant to subsection (n) of section one hundred 28 sixty-eight of the internal revenue code. 29 (45) For taxable years beginning on or after January first, two thou- 30 sand twenty-five, any amount claimed as a deduction under sections one 31 hundred seventy-four and 174A of the internal revenue code in effect as 32 of January first, two thousand twenty-five, and any amount claimed as a 33 deduction pursuant to federal Public Law 119-21, title VII, section 34 70302(f)(2)(a), for foreign and domestic research or experimental 35 expenditures, as defined in sections one hundred seventy-four and 174A 36 of the internal revenue code. 37 § 4. Subsection (c) of section 612 of the tax law is amended by adding 38 three new paragraphs 48, 49 and 50 to read as follows: 39 (48) For taxable years beginning on or after January first, two thou- 40 sand twenty-five, in the case of qualified production property described 41 in paragraph two of subsection (n) of section one hundred sixty-eight of 42 the internal revenue code, the amount of any deduction allowed pursuant 43 to subsection (a) of section one hundred sixty-seven of the internal 44 revenue code as if the taxpayer has not made an election pursuant to 45 subsection (n) of section one hundred sixty-eight of the internal reven- 46 ue code. 47 (49) For taxable years beginning on or after January first, two thou- 48 sand twenty-five, the amount of any foreign and domestic research or 49 experimental expenditures, as defined in sections one hundred seventy- 50 four and 174A of the internal revenue code, paid or incurred in each 51 taxable year on and after January first, two thousand twenty-five, amor- 52 tized over a sixty-month period as if the election in subsection (c) of 53 section 174A of the internal revenue code applied to such foreign and 54 domestic research or experimental expenditures. 55 (50) For taxable years beginning on or after January first, two thou- 56 sand twenty-five, the remaining amount of any foreign and domesticS. 9009--C 19 A. 10009--C 1 research or experimental expenditures, as defined in sections one 2 hundred seventy-four and 174A of the internal revenue code, paid or 3 incurred prior to January first, two thousand twenty-five, determined as 4 if section one hundred seventy-four of the internal revenue code in 5 effect as of January first, two thousand twenty-two, applied to such 6 expenditures. 7 § 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 8 amended by adding three new subparagraphs (X), (Y) and (Z) to read as 9 follows: 10 (X) For taxable years beginning on or after January first, two thou- 11 sand twenty-five, in the case of qualified production property described 12 in paragraph two of subsection (n) of section one hundred sixty-eight of 13 the internal revenue code, the amount of any deduction allowed pursuant 14 to subsection (a) of section one hundred sixty-seven of the internal 15 revenue code as if the taxpayer has not made an election pursuant to 16 subsection (n) of section one hundred sixty-eight of the internal reven- 17 ue code. 18 (Y) For taxable years beginning on or after January first, two thou- 19 sand twenty-five, the amount of any foreign and domestic research or 20 experimental expenditures, as defined in sections one hundred seventy- 21 four and 174A of the internal revenue code, paid or incurred in each 22 taxable year on and after January first, two thousand twenty-five, amor- 23 tized over a sixty-month period as if the election in subsection (c) of 24 section 174A of the internal revenue code applied to such foreign and 25 domestic research or experimental expenditures. 26 (Z) For taxable years beginning on or after January first, two thou- 27 sand twenty-five, the remaining amount of any foreign and domestic 28 research or experimental expenditures, as defined in sections one 29 hundred seventy-four and 174A of the internal revenue code, paid or 30 incurred prior to January first, two thousand twenty-five, determined as 31 if section one hundred seventy-four of the internal revenue code in 32 effect as of January first, two thousand twenty-two, applied to such 33 expenditures. 34 § 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 35 amended by adding two new subparagraphs (AA) and (BB) to read as 36 follows: 37 (AA) For taxable years beginning on or after January first, two thou- 38 sand twenty-five, in the case of qualified production property described 39 in paragraph two of subsection (n) of section one hundred sixty-eight of 40 the internal revenue code, any amount which the taxpayer claimed as a 41 deduction under subsection (a) of section one hundred sixty-seven of the 42 internal revenue code that included an allowance solely as a result of 43 an election made pursuant to subsection (n) of section one hundred 44 sixty-eight of the internal revenue code. 45 (BB) For taxable years beginning on or after January first, two thou- 46 sand twenty-five, any amount claimed as a deduction under sections one 47 hundred seventy-four and 174A of the internal revenue code in effect as 48 of January first, two thousand twenty-five, and any amount claimed as a 49 deduction pursuant to federal Public Law 119-21, title VII, section 50 70302(f)(2)(a), for foreign and domestic research or experimental 51 expenditures, as defined in sections one hundred seventy-four and 174A 52 of the internal revenue code. 53 § 7. This act shall take effect immediately, and shall apply to tax 54 years beginning on or after January 1, 2025; provided, however, that no 55 interest or penalty shall accrue on returns under a valid extension that 56 are filed within the period of extension or amended returns filed forS. 9009--C 20 A. 10009--C 1 taxable years beginning on or after January 1, 2025, and before January 2 1, 2026, that solely report the modifications required by this act. 3 PART G 4 Section 1. Subdivision (b) of section 11-506 of the administrative 5 code of the city of New York is amended by adding four new paragraphs 6 19, 20, 21 and 22 to read as follows: 7 (19) For taxable years beginning after December thirty-first, two 8 thousand twenty-four, the amount allowed as an exclusion or deduction in 9 determining federal gross income of any depreciation of qualified 10 production property described in subsection (n) of section one hundred 11 sixty-eight of the internal revenue code. For the purposes of this chap- 12 ter, such property shall not be treated as section 1245 property as 13 described in section twelve hundred forty-five of the internal revenue 14 code. 15 (20) For taxable years beginning after December thirty-first, two 16 thousand twenty-four, the amount allowed as an exclusion or deduction in 17 determining federal gross income pursuant to subsection (a) of section 18 one hundred seventy-nine of the internal revenue code. 19 (21) For taxable years beginning after December thirty-first, two 20 thousand twenty-four, the amount allowed as an exclusion or deduction in 21 determining federal gross income for domestic research or experimental 22 expenditures pursuant to section one hundred seventy-four-A of the 23 internal revenue code. 24 (22) For taxable years beginning on or after January first, two thou- 25 sand twenty-five, the increase in the amount allowed as a federal inter- 26 est deduction pursuant to section one hundred sixty-three of the inter- 27 nal revenue code attributable to additional adjusted taxable income that 28 is attributable to depreciation, amortization, or depletion. For the 29 purposes of this subdivision, "additional adjusted taxable income that 30 is attributable to depreciation, amortization, or depletion" means the 31 difference between the amount of adjusted taxable income computed pursu- 32 ant to paragraph eight of subsection (j) of section one hundred sixty- 33 three of the internal revenue code and such amount calculated without 34 regard to clause (v) of subparagraph (A) of such paragraph. 35 § 2. Subdivision (c) of section 11-506 of the administrative code of 36 the city of New York is amended by adding three new paragraphs 14, 15 37 and 16 to read as follows: 38 (14) For taxable years beginning after December thirty-first, two 39 thousand twenty-four, for taxpayers that have made an election pursuant 40 to paragraph six of subsection (n) of section one hundred sixty-eight of 41 the internal revenue code with respect to any qualified production prop- 42 erty as defined in such subsection, the amount allowed as an exclusion 43 or deduction in determining federal gross income of any depreciation of 44 such qualified production property, pursuant to subsection (a) of 45 section one hundred sixty-seven of such code so that the depreciation 46 deduction and adjusted basis reduction or any other deduction or exclu- 47 sion allowed by subsection (n) of section one hundred sixty-eight of 48 such code shall not apply. 49 (15) For taxable years beginning after December thirty-first, two 50 thousand twenty-four, the amount allowed as an exclusion or deduction in 51 determining federal gross income pursuant to subsection (a) of section 52 one hundred seventy-nine of the internal revenue code subject to the 53 dollar limitations in paragraphs one and two of subsection (b) of such 54 section that were in effect for the last tax year beginning before Janu-S. 9009--C 21 A. 10009--C 1 ary first, two thousand twenty-five, adjusted in accordance with para- 2 graph six of such subsection using the amounts in paragraphs one and two 3 that were in effect for such tax year and, for the purposes of applying 4 clause (ii) of subparagraph (A) of paragraph three of subsection (f) of 5 section one of the internal revenue code, substituting "calendar year 6 2017" for "calendar year 2016". 7 (16) For taxable years beginning after December thirty-first, two 8 thousand twenty-four, the amount allowed as an exclusion or deduction in 9 determining federal gross income for domestic research or experimental 10 expenditures pursuant to section one hundred seventy-four-A of the 11 internal revenue code, provided that such exclusion or deduction is 12 calculated in the same manner as an exclusion or deduction for a foreign 13 research or experimental expenditure described in section one hundred 14 seventy-four of such code, except that the amortization deduction of 15 such expenditures shall be rated over the five-year period beginning 16 with the midpoint of the taxable year in which such expenditures are 17 paid or incurred. 18 § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- 19 trative code of the city of New York is amended by adding three new 20 subparagraphs 18, 19 and 20 to read as follows: 21 (18) for taxable years beginning after December thirty-first, two 22 thousand twenty-four, for taxpayers that have made an election pursuant 23 to paragraph six of subsection (n) of section one hundred sixty-eight of 24 the internal revenue code with respect to any qualified production prop- 25 erty defined in such subsection, the amount allowed as an exclusion or 26 deduction in determining federal taxable income of any depreciation of 27 such qualified production property, pursuant to subsection (a) of 28 section one hundred sixty-seven of such code so that the depreciation 29 deduction and adjusted basis reduction or any other deduction or exclu- 30 sion allowed by subsection (n) of section one hundred sixty-eight of 31 such code shall not apply. 32 (19) for taxable years beginning after December thirty-first, two 33 thousand twenty-four, the amount allowed as an exclusion or deduction in 34 determining federal taxable income pursuant to subsection (a) of section 35 one hundred seventy-nine of the internal revenue code subject to the 36 dollar limitations in paragraphs one and two of subsection (b) of such 37 section that were in effect for the last tax year beginning before Janu- 38 ary first, two thousand twenty-five, adjusted in accordance with para- 39 graph six of such subsection using the amounts in paragraphs one and two 40 that were in effect for such tax year and, for the purposes of applying 41 clause (ii) of subparagraph (A) of paragraph three of subsection (f) of 42 section one of the internal revenue code, substituting "calendar year 43 2017" for "calendar year 2016". 44 (20) for taxable years beginning after December thirty-first, two 45 thousand twenty-four, the amount allowed as an exclusion or deduction in 46 determining federal taxable income for domestic research or experimental 47 expenditures pursuant to section one hundred seventy-four-A of the 48 internal revenue code, provided that such exclusion or deduction is 49 calculated in the same manner as an exclusion or deduction for a foreign 50 research or experimental expenditure described in section one hundred 51 seventy-four of such code, except that the amortization deduction of 52 such expenditures shall be rated over the five-year period beginning 53 with the midpoint of the taxable year in which such expenditures are 54 paid or incurred.S. 9009--C 22 A. 10009--C 1 § 4. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- 2 trative code of the city of New York is amended by adding four new 3 subparagraphs 23, 24, 25 and 26 to read as follows: 4 (23) For taxable years beginning after December thirty-first, two 5 thousand twenty-four, the amount allowed as an exclusion or deduction in 6 determining federal taxable income of any depreciation of qualified 7 production property described in subsection (n) of section one hundred 8 sixty-eight of the internal revenue code. For the purposes of this 9 subchapter, such property shall not be treated as section 1245 property 10 as described in section one thousand two hundred forty-five of the 11 internal revenue code. 12 (24) For taxable years beginning after December thirty-first, two 13 thousand twenty-four, the amount allowed as an exclusion or deduction in 14 determining federal taxable income pursuant to subsection (a) of section 15 one hundred seventy-nine of the internal revenue code. 16 (25) For taxable years beginning after December thirty-first, two 17 thousand twenty-four, the amount allowed as an exclusion or deduction in 18 determining federal taxable income for domestic research or experimental 19 expenditures pursuant to section one hundred seventy-four-A of the 20 internal revenue code. 21 (26) For taxable years beginning on or after January first, two thou- 22 sand twenty-five, the increase in the amount allowed as a federal inter- 23 est deduction pursuant to section one hundred sixty-three of the inter- 24 nal revenue code attributable to additional adjusted taxable income that 25 is attributable to depreciation, amortization, or depletion. For the 26 purposes of this subdivision, "additional adjusted taxable income that 27 is attributable to depreciation, amortization, or depletion" means the 28 difference between the amount of adjusted taxable income computed pursu- 29 ant to paragraph eight of subsection (j) of section one hundred sixty- 30 three of the internal revenue code and such amount calculated without 31 regard to clause (v) of subparagraph (A) of such paragraph. 32 § 5. Clause (E) of subparagraph 2 of paragraph (a) of subdivision 3 of 33 section 11-604 of the administrative code of the city of New York, as 34 added by section 3 of part C of chapter 59 of the laws of 2019, is 35 amended to read as follows: 36 (E) notwithstanding any other provision of this paragraph, [net global37intangible low-taxed income shall be included in the receipts fraction38as provided in this clause. Receipts constituting net global intangible39low-taxed income] the amount required to be included in the taxpayer's 40 federal gross income pursuant to subsection (a) of section 951A of the 41 internal revenue code less the amount of the deduction allowed under 42 clause (i) of section 250(a)(1) (B) of such code shall not be included 43 in the numerator of the receipts fraction. [Receipts constituting net44global intangible low-taxed income] The amount required to be included 45 in the taxpayer's federal gross income pursuant to subsection (a) of 46 section 951A of the internal revenue code less the amount of the 47 deduction allowed under clause (i) of section 250(a)(1)(B) of such code 48 shall be included in the denominator of the receipts fraction. [For49purposes of this clause, the term "net global intangible low-taxed50income" means the amount that would have been required to be included in51the taxpayer's federal gross income pursuant to subsection (a) of52section 951A of the internal revenue code less the amount of the53deduction that would have been allowed under clause (i) of section54250(a)(1)(B) of such code if the taxpayer had not made an election under55subchapter s of chapter one of the internal revenue code] For any taxa-S. 9009--C 23 A. 10009--C 1 ble year, such amount shall be calculated pursuant to such provisions of 2 the internal revenue code provisions as in effect in such taxable year. 3 § 6. Subdivision (b) of section 11-641 of the administrative code of 4 the city of New York is amended by adding four new paragraphs 18, 19, 20 5 and 21 to read as follows: 6 (18) For taxable years beginning after December thirty-first, two 7 thousand twenty-four, the amount allowed as an exclusion or deduction in 8 determining federal taxable income of any depreciation of qualified 9 production property described in subsection (n) of section one hundred 10 sixty-eight of the internal revenue code. For the purposes of this 11 subchapter, such property shall not be treated as section 1245 property 12 as described in section one thousand two hundred forty-five of the 13 internal revenue code. 14 (19) For taxable years beginning after December thirty-first, two 15 thousand twenty-four, the amount allowed as an exclusion or deduction in 16 determining federal taxable income pursuant to subsection (a) of section 17 one hundred seventy-nine of the internal revenue code. 18 (20) For taxable years beginning after December thirty-first, two 19 thousand twenty-four, the amount allowed as an exclusion or deduction in 20 determining federal taxable income for domestic research or experimental 21 expenditures pursuant to section one hundred seventy-four-A of the 22 internal revenue code. 23 (21) For taxable years beginning on or after January first, two thou- 24 sand twenty-five, the increase in the amount allowed as a federal inter- 25 est deduction pursuant to section one hundred sixty-three of the inter- 26 nal revenue code attributable to additional adjusted taxable income that 27 is attributable to depreciation, amortization, or depletion. For the 28 purposes of this subdivision, "additional adjusted taxable income that 29 is attributable to depreciation, amortization, or depletion" means the 30 difference between the amount of adjusted taxable income computed pursu- 31 ant to paragraph eight of subsection (j) of section one hundred sixty- 32 three of the internal revenue code and such amount calculated without 33 regard to clause (v) of subparagraph (A) of such paragraph. 34 § 7. Subdivision (e) of section 11-641 of the administrative code of 35 the city of New York is amended by adding three new paragraphs 17, 18 36 and 19 to read as follows: 37 (17) for taxable years beginning after December thirty-first, two 38 thousand twenty-four, for taxpayers that have made an election pursuant 39 to paragraph six of subsection (n) of section one hundred sixty-eight of 40 the internal revenue code with respect to any qualified production prop- 41 erty defined in such subsection, the amount allowed as an exclusion or 42 deduction in determining federal taxable income of any depreciation of 43 such qualified production property, pursuant to subsection (a) of 44 section one hundred sixty-seven of such code so that the depreciation 45 deduction and adjusted basis reduction or any other deduction or exclu- 46 sion allowed by subsection (n) of section one hundred sixty-eight of 47 such code shall not apply. 48 (18) for taxable years beginning after December thirty-first, two 49 thousand twenty-four, the amount allowed as an exclusion or deduction in 50 determining federal taxable income pursuant to subsection (a) of section 51 one hundred seventy-nine of the internal revenue code subject to the 52 dollar limitations in paragraphs one and two of subsection (b) of such 53 section that were in effect for the last tax year beginning before Janu- 54 ary first, two thousand twenty-five, adjusted in accordance with para- 55 graph six of such subsection using the amounts in paragraphs one and two 56 that were in effect for such tax year and, for the purposes of applyingS. 9009--C 24 A. 10009--C 1 clause (ii) of subparagraph (A) of paragraph three of subsection (f) of 2 section one of the internal revenue code, substituting "calendar year 3 2017" for "calendar year 2016". 4 (19) for taxable years beginning after December thirty-first, two 5 thousand twenty-four, the amount allowed as an exclusion or deduction in 6 determining federal taxable income for domestic research or experimental 7 expenditures pursuant to section one hundred seventy-four-A of the 8 internal revenue code, provided that such exclusion or deduction is 9 calculated in the same manner as an exclusion or deduction for a foreign 10 research or experimental expenditure described in section one hundred 11 seventy-four of such code, except that the amortization deduction of 12 such expenditures shall be rated over the five-year period beginning 13 with the midpoint of the taxable year in which such expenditures are 14 paid or incurred. 15 § 8. Paragraph (a) of subdivision 8 of section 11-652 of the adminis- 16 trative code of the city of New York is amended by adding three new 17 subparagraphs 19, 20 and 21 to read as follows: 18 (19) for taxable years beginning after December thirty-first, two 19 thousand twenty-four, for taxpayers that have made an election pursuant 20 to paragraph six of subsection (n) of section one hundred sixty-eight of 21 the internal revenue code with respect to any qualified production prop- 22 erty defined in such subsection, the amount allowed as an exclusion or 23 deduction in determining federal taxable income of any depreciation of 24 such qualified production property, pursuant to subsection (a) of 25 section one hundred sixty-seven of such code so that the depreciation 26 deduction and adjusted basis reduction or any other deduction or exclu- 27 sion allowed by subsection (n) of section one hundred sixty-eight of 28 such code shall not apply. 29 (20) for taxable years beginning after December thirty-first, two 30 thousand twenty-four, the amount allowed as an exclusion or deduction in 31 determining federal taxable income pursuant to subsection (a) of section 32 one hundred seventy-nine of the internal revenue code subject to the 33 dollar limitations in paragraphs one and two of subsection (b) of such 34 section that were in effect for the last tax year beginning before Janu- 35 ary first, two thousand twenty-five, adjusted in accordance with para- 36 graph six of such subsection using the amounts in paragraphs one and two 37 that were in effect for such tax year and, for the purposes of applying 38 clause (ii) of subparagraph (A) of paragraph three of subsection (f) of 39 section one of the internal revenue code, substituting "calendar year 40 2017" for "calendar year 2016". 41 (21) for taxable years beginning after December thirty-first, two 42 thousand twenty-four, the amount allowed as an exclusion or deduction in 43 determining federal taxable income for domestic research or experimental 44 expenditures pursuant to section one hundred seventy-four-A of the 45 internal revenue code, provided that such exclusion or deduction is 46 calculated in the same manner as an exclusion or deduction for a foreign 47 research or experimental expenditure described in section one hundred 48 seventy-four of such code, except that the amortization deduction of 49 such expenditures shall be rated over the five-year period beginning 50 with the midpoint of the taxable year in which such expenditures are 51 paid or incurred. 52 § 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis- 53 trative code of the city of New York is amended by adding four new 54 subparagraphs 24, 25, 26 and 27 to read as follows: 55 (24) For taxable years beginning after December thirty-first, two 56 thousand twenty-four, the amount allowed as an exclusion or deduction inS. 9009--C 25 A. 10009--C 1 determining federal taxable income of any depreciation of qualified 2 production property described in subsection (n) of section one hundred 3 sixty-eight of the internal revenue code. For the purposes of this 4 subchapter, such property shall not be treated as section 1245 property 5 as described in section one thousand two hundred forty-five of the 6 internal revenue code. 7 (25) For taxable years beginning after December thirty-first, two 8 thousand twenty-four, the amount allowed as an exclusion or deduction in 9 determining federal taxable income pursuant to subsection (a) of section 10 one hundred seventy-nine of the internal revenue code. 11 (26) For taxable years beginning after December thirty-first, two 12 thousand twenty-four, the amount allowed as an exclusion or deduction in 13 determining federal taxable income for domestic research or experimental 14 expenditures pursuant to section one hundred seventy-four-A of the 15 internal revenue code. 16 (27) For taxable years beginning on or after January first, two thou- 17 sand twenty-five, the increase in the amount allowed as a federal inter- 18 est deduction pursuant to section one hundred sixty-three of the inter- 19 nal revenue code attributable to additional adjusted taxable income that 20 is attributable to depreciation, amortization, or depletion. For the 21 purposes of this subdivision, "additional adjusted taxable income that 22 is attributable to depreciation, amortization, or depletion" means the 23 difference between the amount of adjusted taxable income computed pursu- 24 ant to paragraph eight of subsection (j) of section one hundred sixty- 25 three of the internal revenue code and such amount calculated without 26 regard to clause (v) of subparagraph (A) of such paragraph. 27 § 10. Subdivision 5-a of section 11-654.2 of the administrative code 28 of the city of New York, as added by section 2 of part C of chapter 59 29 of the laws of 2019, is amended to read as follows: 30 5-a. Notwithstanding any other provision of this section, [net global31intangible low-taxed income shall be included in the receipts fraction32as provided in this subdivision. Receipts constituting net global intan-33gible low-taxed income] the amount required to be included in the 34 taxpayer's federal gross income pursuant to subsection (a) of section 35 951A of the internal revenue code less the amount of the deduction 36 allowed under clause (i) of section 250(a)(1)(B) of such code shall not 37 be included in the numerator of the receipts fraction. [Receipts consti-38tuting net global intangible low-taxed income] The amount required to be 39 included in the taxpayer's federal gross income pursuant to subsection 40 (a) of section 951A of the internal revenue code less the amount of the 41 deduction allowed under clause (i) of section 250(a)(1)(B) of such code 42 shall be included in the denominator of the receipts fraction. [For43purposes of this subdivision, the term "net global intangible low-taxed44income" means the amount required to be included in the taxpayer's45federal gross income pursuant to subsection (a) of section 951A of the46internal revenue code less the amount of the deduction allowed under47clause (i) of section 250(a)(1)(B) of such code] For any taxable year, 48 such amount shall be calculated pursuant to such provisions of the 49 internal revenue code provisions as in effect in such taxable year. 50 § 11. This act shall take effect immediately and shall be deemed to 51 have been in full force and effect on and after December 31, 2024, and 52 shall apply to taxable years beginning after December 31, 2024; 53 provided, however, that no interest or penalty shall accrue on returns 54 under a valid extension that are filed within the period of extension or 55 amended returns filed for taxable years beginning after December 31,S. 9009--C 26 A. 10009--C 1 2024, and before January 1, 2026, that solely report the modifications 2 required by this act. 3 PART H 4 Intentionally Omitted 5 PART I 6 Section 1. Paragraph (a) of subdivision 5 of section 845-e of the 7 executive law, as added by section 1 of part E of chapter 59 of the laws 8 of 2024, is amended to read as follows: 9 (a) For taxable years beginning on or after January first, two thou- 10 sand twenty-four and before January first, two thousand [twenty-six] 11 twenty-nine, a business entity in the commercial security tax credit 12 program that meets the eligibility requirements of subdivision two of 13 this section may be eligible to claim a credit equal to three thousand 14 dollars for each retail location of the business entity located in New 15 York state. 16 § 2. Subdivision (a) of section 49 of the tax law, as added by section 17 2 of part E of chapter 59 of the laws of 2024, is amended to read as 18 follows: 19 (a) Allowance of credit. For taxable years beginning on or after Janu- 20 ary first, two thousand twenty-four and before January first, two thou- 21 sand [twenty-six] twenty-nine, a taxpayer required to file a return 22 pursuant to articles nine, nine-A or twenty-two of this chapter shall be 23 allowed a credit against such tax, pursuant to the provisions referenced 24 in subdivision (f) of this section. The amount of the credit is equal to 25 the amount determined pursuant to section eight hundred forty-five-e of 26 the executive law. No cost or expense paid or incurred by the taxpayer 27 that is included as part of the calculation of this credit shall be the 28 basis of any other tax credit allowed under this chapter. 29 § 3. This act shall take effect immediately. 30 PART J 31 Section 1. Paragraph 1 of subdivision (f) of section 24-c of the tax 32 law, as amended by section 4 of part L of chapter 59 of the laws of 33 2025, is amended to read as follows: 34 (1) The aggregate amount of tax credits allowed under this section, 35 subdivision fifty-seven of section two hundred ten-B and subsection 36 (mmm) of section six hundred six of this chapter shall be [four] five 37 hundred fifty million dollars. Such aggregate amount of credits shall be 38 allocated by the department of economic development among taxpayers 39 based on the date of first performance of the qualified musical and 40 theatrical production. 41 § 2. This act shall take effect immediately and apply to qualified New 42 York city musical and theatrical production companies whose first 43 performance was on or after December 1, 2025; provided, however, that 44 the amendments to section 24-c of the tax law made by section one of 45 this act shall not affect the repeal of such section and shall be deemed 46 repealed therewith. 47 PART KS. 9009--C 27 A. 10009--C 1 Section 1. Subdivisions 2 and 12 of section 470 of the tax law, subdi- 2 vision 2 as amended by chapter 728 of the laws of 2019 and subdivision 3 12 as added by chapter 61 of the laws of 1989, are amended and a new 4 subdivision 22 is added to read as follows: 5 2. "Tobacco products." Any cigar, including a little cigar, [or] 6 tobacco, or alternative nicotine product, other than cigarettes, 7 intended for consumption by smoking, chewing, or as snuff. "Tobacco 8 products" shall not include research tobacco products. 9 12. "Distributor." Any person who imports or causes to be imported 10 into this state any tobacco product (in excess of fifty cigars [or], one 11 pound of tobacco, or fifteen units of alternative nicotine products) for 12 sale, or who manufactures any tobacco product in this state, and any 13 person within or without the state who is authorized by the commissioner 14 of taxation and finance to make returns and pay the tax on tobacco 15 products sold, shipped or delivered by [him] them to any person in the 16 state. 17 22. "Alternative nicotine product." Any noncombustible product, other 18 than vapor products, which contains nicotine but not tobacco and is 19 intended for human consumption, whether chewed, absorbed, dissolved, or 20 ingested by any other means. "Alternative nicotine product" does not 21 include any product regulated as a drug or device by the U.S. Food and 22 Drug Administration (FDA) under Chapter V (21 U.S.C. § 351 et seq.) of 23 the Federal Food, Drug, and Cosmetic Act. The term "unit" as it relates 24 to alternative nicotine products means any cannister, pack, box, carton, 25 or container of any kind or, if no other container, any wrapping, in 26 which an alternative nicotine product is offered for sale, sold, or 27 otherwise distributed to consumers. 28 § 2. The opening paragraph of subdivision (a) of section 471-c of the 29 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of 30 2009, is amended to read as follows: 31 There is hereby imposed and shall be paid a tax on all tobacco 32 products used in the state by any person, except that no such tax shall 33 be imposed (1) if the tax provided in section four hundred seventy-one-b 34 of this article is paid, or (2) on the use of tobacco products which are 35 exempt from the tax imposed by said section, or (3) on the use of two 36 hundred fifty cigars or less, or five pounds or less of tobacco other 37 than roll-your-own tobacco, or thirty-six ounces or less of roll-your- 38 own tobacco, or seventy-five units or less of alternative nicotine 39 products, brought into the state on, or in the possession of, any 40 person. 41 § 3. Subdivisions 2 and 3 of section 474 of the tax law, subdivision 2 42 as amended by chapter 552 of the laws of 2008 and subdivision 3 as added 43 by chapter 61 of the laws of 1989, are amended to read as follows: 44 2. Every person who shall possess or transport more than two hundred 45 fifty cigars, or more than five pounds of tobacco other than roll-your- 46 own tobacco, or more than thirty-six ounces of roll-your-own tobacco, or 47 more than seventy-five units of alternative nicotine products, upon the 48 public highways, roads or streets of the state, shall be required to 49 have in [his] their actual possession invoices or delivery tickets for 50 such tobacco products. Such invoices or delivery tickets shall show the 51 name and address of the consignor or seller, the name and address of the 52 consignee or purchaser, the quantity and brands of the tobacco products 53 transported, and the name and address of the person who has or shall 54 assume the payment of the tax and the wholesale price or the tax paid or 55 payable. The absence of such invoices or delivery tickets shall be primaS. 9009--C 28 A. 10009--C 1 facie evidence that such person is a dealer in tobacco products in this 2 state and subject to the requirements of this article. 3 3. Every dealer or distributor or employee thereof, or other person 4 acting on behalf of a dealer or distributor, who shall possess or trans- 5 port more than fifty cigars [or], more than one pound of tobacco, or 6 more than fifteen units of alternative nicotine products, upon the 7 public highways, roads or streets of the state, shall be required to 8 have in [his] their actual possession invoices or delivery tickets for 9 such tobacco products. Such invoices or delivery tickets shall show the 10 name and address of the consignor or seller, the name and address of the 11 consignee or purchaser, the quantity and brands of the tobacco products 12 transported, and the name and address of the person who has or shall 13 assume the payment of the tax and the wholesale price or the tax paid or 14 payable. The absence of such invoices or delivery tickets shall be prima 15 facie evidence that the tax imposed by this article on tobacco products 16 has not been paid and is due and owing. 17 § 4. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 18 of the tax law, as amended by section 1 of part O of chapter 59 of the 19 laws of 2013, is amended to read as follows: 20 (i) In addition to any other penalty imposed by this article, the 21 commissioner may (A) impose a penalty of not more than six hundred 22 dollars for each two hundred cigarettes, or fraction thereof, in excess 23 of one thousand cigarettes in unstamped or unlawfully stamped packages 24 in the possession or under the control of any person or (B) impose a 25 penalty of not more than two hundred dollars for each ten unaffixed 26 false, altered or counterfeit cigarette tax stamps, imprints or 27 impressions, or fraction thereof, in the possession or under the control 28 of any person. In addition, the commissioner may impose a penalty of not 29 more than seventy-five dollars for each fifty cigars [or], one pound of 30 tobacco, or fifteen units of alternative nicotine products, or fraction 31 thereof, in excess of two hundred fifty cigars [or], five pounds of 32 tobacco, or seventy-five units of alternative nicotine products, in the 33 possession or under the control of any person and a penalty of not more 34 than one hundred fifty dollars for each fifty cigars [or], pound of 35 tobacco, or fifteen units of alternative nicotine products, or fraction 36 thereof, in excess of five hundred cigars [or], ten pounds of tobacco, 37 or one hundred fifty units of alternative nicotine products, in the 38 possession or under the control of any person, with respect to which the 39 tobacco products tax has not been paid or assumed by a distributor or 40 tobacco products dealer; provided, however, that any such penalty 41 imposed shall not exceed seven thousand five hundred dollars in the 42 aggregate. The commissioner may impose a penalty of not more than seven- 43 ty-five dollars for each fifty cigars [or], one pound of tobacco, or 44 fifteen units of alternative nicotine products, or fraction thereof, in 45 excess of fifty cigars [or], one pound of tobacco, or fifteen units of 46 alternative nicotine products, in the possession or under the control of 47 any tobacco products dealer or distributor appointed by the commission- 48 er, and a penalty of not more than one hundred fifty dollars for each 49 fifty cigars [or], pound of tobacco, or fifteen units of alternative 50 nicotine products, or fraction thereof, in excess of two hundred fifty 51 cigars [or], five pounds of tobacco, or seventy-five units of alterna- 52 tive nicotine products, in the possession or under the control of any 53 such dealer or distributor, with respect to which the tobacco products 54 tax has not been paid or assumed by a distributor or a tobacco products 55 dealer; provided, however, that any such penalty imposed shall not 56 exceed fifteen thousand dollars in the aggregate.S. 9009--C 29 A. 10009--C 1 § 5. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of 2 subdivision 1 of section 481 of the tax law, as added by chapter 262 of 3 the laws of 2000, are amended to read as follows: 4 (B)(I) not less than twenty-five dollars but not more than one hundred 5 dollars for each fifty cigars [or], one pound of tobacco, or fifteen 6 units of alternative nicotine products, or fraction thereof, in excess 7 of two hundred fifty cigars [or], five pounds of tobacco, or seventy- 8 five units of alternative nicotine products, knowingly in the possession 9 or knowingly under the control of any person, with respect to which the 10 tobacco products tax has not been paid or assumed by a distributor or 11 tobacco products dealer; and 12 (II) not less than fifty dollars but not more than two hundred dollars 13 for each fifty cigars [or], pound of tobacco, or fifteen units of alter- 14 native nicotine products, or fraction thereof, in excess of five hundred 15 cigars [or], ten pounds of tobacco, or one hundred fifty units of alter- 16 native nicotine products, knowingly in the possession or knowingly under 17 the control of any person, with respect to which the tobacco products 18 tax has not been paid or assumed by a distributor or tobacco products 19 dealer; provided, however, that any such penalty imposed under this 20 clause shall not exceed ten thousand dollars in the aggregate. 21 (C)(I) not less than twenty-five dollars but not more than one hundred 22 dollars for each fifty cigars [or], one pound of tobacco, or fifteen 23 units of alternative nicotine products, or fraction thereof, in excess 24 of fifty cigars [or], one pound of tobacco, or fifteen units of alterna- 25 tive nicotine products, knowingly in the possession or knowingly under 26 the control of any person, with respect to which the tobacco products 27 tax has not been paid or assumed by a distributor or tobacco products 28 dealer; and 29 (II) not less than fifty dollars but not more than two hundred dollars 30 for each fifty cigars [or], pound of tobacco, or fifteen units of alter- 31 native nicotine products, or fraction thereof, in excess of two hundred 32 fifty cigars [or], five pounds of tobacco, or seventy-five units of 33 alternative nicotine products, knowingly in the possession or knowingly 34 under the control of any person, with respect to which the tobacco 35 products tax has not been paid or assumed by a distributor or a tobacco 36 products dealer; provided, however, that any such penalty imposed under 37 this clause shall not exceed twenty thousand dollars in the aggregate. 38 § 6. Paragraph (a) of subdivision 2 of section 481 of the tax law, as 39 amended by chapter 552 of the laws of 2008, is amended to read as 40 follows: 41 (a) The possession within this state of more than four hundred ciga- 42 rettes in unstamped or unlawfully stamped packages or more than two 43 hundred fifty cigars, or more than five pounds of tobacco other than 44 roll-your-own tobacco, or more than thirty-six ounces of roll-your-own 45 tobacco, or more than seventy-five units of alternative nicotine 46 products, by any person other than an agent or distributor, as the case 47 may be, at any one time shall be presumptive evidence that such ciga- 48 rettes or tobacco products are subject to tax as provided by this arti- 49 cle. 50 § 7. Section 482 of the tax law is amended by adding a new subdivision 51 (c) to read as follows: 52 (c) From the taxes, interest and penalties collected or received by 53 the commissioner under section four hundred seventy-one-b of this arti- 54 cle, effective April first, two thousand twenty-seven, fifty million 55 dollars from the moneys collected or received under such section shall 56 be deposited annually to the credit of the tobacco control and insuranceS. 9009--C 30 A. 10009--C 1 initiatives pool to be established and distributed by the commissioner 2 of health in accordance with section twenty-eight hundred seven-v of the 3 public health law. 4 § 8. Subdivisions (a) and (h) of section 1814 of the tax law, as 5 amended by section 28 of subpart I of part V1 of chapter 57 of the laws 6 of 2009, are amended to read as follows: 7 (a) Any person who willfully attempts in any manner to evade or defeat 8 the taxes imposed by article twenty of this chapter or payment thereof 9 on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars 10 or more, [or] (iii) four hundred forty pounds of tobacco or more, or 11 (iv) six thousand six hundred units of alternative nicotine products or 12 more, or has previously been convicted two or more times of a violation 13 of paragraph one of this subdivision shall be guilty of a class E felo- 14 ny. 15 (h) (1) Any dealer, other than a distributor appointed by the commis- 16 sioner of taxation and finance under article twenty of this chapter, who 17 shall knowingly transport or have in [his] their custody, possession or 18 under [his] their control more than ten pounds of tobacco [or], more 19 than five hundred cigars, or more than one hundred fifty units of alter- 20 native nicotine products, upon which the taxes imposed by article twenty 21 of this chapter have not been assumed or paid by a distributor appointed 22 by the commissioner of taxation and finance under article twenty of this 23 chapter, or other person treated as a distributor pursuant to section 24 four hundred seventy-one-d of this chapter, shall be guilty of a misde- 25 meanor punishable by a fine of not more than five thousand dollars or by 26 a term of imprisonment not to exceed thirty days. 27 (2) Any person, other than a dealer or a distributor appointed by the 28 commissioner under article twenty of this chapter, who shall knowingly 29 transport or have in [his] their custody, possession or under [his] 30 their control more than fifteen pounds of tobacco [or], more than seven 31 hundred fifty cigars, or more than two hundred twenty-five units of 32 alternative nicotine products, upon which the taxes imposed by article 33 twenty of this chapter have not been assumed or paid by a distributor 34 appointed by the commissioner under article twenty of this chapter, or 35 other person treated as a distributor pursuant to section four hundred 36 seventy-one-d of this chapter shall be guilty of a misdemeanor punisha- 37 ble by a fine of not more than five thousand dollars or by a term of 38 imprisonment not to exceed thirty days. 39 (3) Any person, other than a distributor appointed by the commissioner 40 under article twenty of this chapter, who shall knowingly transport or 41 have in [his] their custody, possession or under [his] their control 42 twenty-five hundred or more cigars [or], fifty or more pounds of 43 tobacco, or seven hundred fifty units or more of alternative nicotine 44 products, upon which the taxes imposed by article twenty of this chapter 45 have not been assumed or paid by a distributor appointed by the commis- 46 sioner under article twenty of this chapter, or other person treated as 47 a distributor pursuant to section four hundred seventy-one-d of this 48 chapter shall be guilty of a misdemeanor. Provided further, that any 49 person who has twice been convicted under this subdivision shall be 50 guilty of a class E felony for any subsequent violation of this section, 51 regardless of the amount of tobacco products involved in such violation. 52 (4) For purposes of this subdivision, such person shall knowingly 53 transport or have in [his] their custody, possession or under [his] 54 their control tobacco [or], cigars, or alternative nicotine products, on 55 which such taxes have not been assumed or paid by a distributor 56 appointed by the commissioner where such person has knowledge of theS. 9009--C 31 A. 10009--C 1 requirement of the tax on tobacco products and, where to [his] their 2 knowledge, such taxes have not been assumed or paid on such tobacco 3 products by a distributor appointed by the commissioner of taxation and 4 finance. 5 § 9. Section 1814-a of the tax law, as added by chapter 61 of the laws 6 of 1989, is amended to read as follows: 7 § 1814-a. Person not appointed as a tobacco products distributor. (a) 8 Any person who, while not appointed as a distributor of tobacco products 9 pursuant to the provisions of article twenty of this chapter, imports or 10 causes to be imported into the state more than fifty cigars [or], more 11 than one pound of tobacco, or more than fifteen units of alternative 12 nicotine products, for sale within the state, or produces, manufactures 13 or compounds tobacco products within the state shall be guilty of a 14 misdemeanor punishable by a fine of not more than five thousand dollars 15 or by a term of imprisonment not to exceed thirty days. If, within any 16 ninety day period, one thousand or more cigars, or five hundred pounds 17 or more of tobacco, or seven thousand five hundred units or more of 18 alternative nicotine products, are imported or caused to be imported 19 into the state for sale within the state or are produced, manufactured 20 or compounded within the state by any person while not appointed as a 21 distributor of tobacco products, such person shall be guilty of a misde- 22 meanor. Provided further, that any person who has twice been convicted 23 under this section shall be guilty of a class E felony for any subse- 24 quent violation of this section, regardless of the amount of tobacco 25 products involved in such violation. 26 (b) For purposes of this section, the possession or transportation 27 within this state by any person, other than a tobacco products distribu- 28 tor appointed by the commissioner of taxation and finance, at any one 29 time of seven hundred fifty or more cigars [or], fifteen pounds or more 30 of tobacco, or two hundred twenty-five units or more of alternative 31 nicotine products, shall be presumptive evidence that such tobacco 32 products are possessed or transported for the purpose of sale and are 33 subject to the tax imposed by section four hundred seventy-one-b of this 34 chapter. With respect to such possession or transportation, any 35 provisions of article twenty of this chapter providing for a time period 36 during which the tax imposed by such article may be paid shall not 37 apply. 38 § 10. Subdivision (a) of section 1846-a of the tax law, as amended by 39 chapter 556 of the laws of 2011, is amended to read as follows: 40 (a) Whenever a police officer designated in section 1.20 of the crimi- 41 nal procedure law or a peace officer designated in subdivision four of 42 section 2.10 of such law, acting pursuant to [his] their special duties, 43 shall discover any tobacco products in excess of five hundred cigars 44 [or], ten pounds of tobacco, or one hundred fifty units of alternative 45 nicotine products, which are [being imported for] possessed for the 46 purpose of sale in the state [where the person importing or causing] 47 when the excise taxes on such tobacco products [to be imported has not48been appointed as] have not been assumed or paid by a distributor 49 appointed pursuant to section four hundred seventy-two of this chapter, 50 such police officer or peace officer is hereby authorized and empowered 51 forthwith to seize and take possession of such tobacco products. Such 52 tobacco products seized by a police officer or peace officer shall be 53 turned over to the commissioner. Such seized tobacco products shall be 54 forfeited to the state. All tobacco products forfeited to the state 55 shall be destroyed or used for law enforcement purposes, except that 56 tobacco products that violate, or are suspected of violating, federalS. 9009--C 32 A. 10009--C 1 trademark laws or import laws shall not be used for law enforcement 2 purposes. If the commissioner determines the tobacco products may not be 3 used for law enforcement purposes, the commissioner must, within a 4 reasonable time thereafter, upon publication in the state registry of a 5 notice to such effect before the day of destruction, destroy such 6 forfeited tobacco products. The commissioner may, prior to any 7 destruction of tobacco products, permit the true holder of the trademark 8 rights in the tobacco products to inspect such forfeited products in 9 order to assist in any investigation regarding such tobacco products. 10 § 11. Subdivision (b) of section 1847 of the tax law, as added by 11 chapter 61 of the laws of 1989, is amended to read as follows: 12 (b) Any peace officer designated in subdivision four of section 2.10 13 of the criminal procedure law, acting pursuant to [his] their special 14 duties, or any police officer designated in section 1.20 of the criminal 15 procedure law may seize any vehicle or other means of transportation 16 used to import tobacco products in excess of five hundred cigars [or], 17 ten pounds of tobacco, or one hundred fifty units of alternative nico- 18 tine products, for sale where the person importing or causing such 19 tobacco products to be imported has not been appointed a distributor 20 pursuant to section four hundred seventy-two of this chapter, other than 21 a vehicle or other means of transportation used by any person as a 22 common carrier in transaction of business as such common carrier, and 23 such vehicle or other means of transportation shall be subject to 24 forfeiture as hereinafter in this section provided. 25 § 12. Subdivisions (a) and (b) of section 92-dd of the state finance 26 law, subdivision (a) as amended by section 2 of part UU of chapter 59 of 27 the laws of 2019 and subdivision (b) as amended by section 3 of part T 28 of chapter 61 of the laws of 2011, are amended to read as follows: 29 (a) On and after April first, two thousand five, such fund shall 30 consist of the revenues heretofore and hereafter collected or required 31 to be deposited pursuant to paragraph (a) of subdivision eighteen of 32 section twenty-eight hundred seven-c, and sections twenty-eight hundred 33 seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t 34 of the public health law, [subdivision] subdivisions (b) and (c) of 35 section four hundred eighty-two and section eleven hundred eighty-six of 36 the tax law and required to be credited to the tobacco control and 37 insurance initiatives pool, subparagraph (O) of paragraph four of 38 subsection (j) of section four thousand three hundred one of the insur- 39 ance law, section twenty-seven of part A of chapter one of the laws of 40 two thousand two and all other moneys credited or transferred thereto 41 from any other fund or source pursuant to law. 42 (b) The pool administrator under contract with the commissioner of 43 health pursuant to section twenty-eight hundred seven-y of the public 44 health law shall continue to collect moneys required to be collected or 45 deposited pursuant to paragraph (a) of subdivision eighteen of section 46 twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, 47 twenty-eight hundred seven-s and twenty-eight hundred seven-t of the 48 public health law, and shall deposit such moneys in the HCRA resources 49 fund. The comptroller shall deposit moneys collected or required to be 50 deposited pursuant to [subdivision] subdivisions (b) and (c) of section 51 four hundred eighty-two of the tax law and required to be credited to 52 the tobacco control and insurance initiatives pool, subparagraph (O) of 53 paragraph four of subsection (j) of section four thousand three hundred 54 one of the insurance law, section twenty-seven of part A of chapter one 55 of the laws of two thousand two and all other moneys credited or trans-S. 9009--C 33 A. 10009--C 1 ferred thereto from any other fund or source pursuant to law in the HCRA 2 resources fund. 3 § 13. Notwithstanding any other provision of law to the contrary, the 4 units of alternative nicotine products possessed in New York state as of 5 11:59 pm eastern standard time on August 31, 2026, by any person for 6 sale shall be subject to tax pursuant to section 471-b of the tax law, 7 and shall be remitted by September 21, 2026, in the form and manner 8 prescribed by the commissioner of taxation and finance. 9 § 14. This act shall take effect immediately, and shall apply to all 10 sales of alternative nicotine products on or after September 1, 2026. 11 PART L 12 Intentionally Omitted 13 PART M 14 Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of 15 subdivision (b) of section 1402 of the tax law, as amended by section 1 16 of part U of chapter 59 of the laws of 2023, is amended to read as 17 follows: 18 For purposes of this subdivision, the phrase "real estate investment 19 trust transfer" shall mean any conveyance of real property or an inter- 20 est therein to a REIT, or to a partnership or corporation in which a 21 REIT owns a controlling interest immediately following the conveyance, 22 which conveyance (I) occurs in connection with the initial formation of 23 the REIT, provided that the conditions set forth in clauses (i) and (ii) 24 of this subparagraph are satisfied, or (II) in the case of any real 25 estate investment trust transfer occurring on or after July thirteenth, 26 nineteen hundred ninety-six and before September first, two thousand 27 [twenty-six] twenty-nine, is described in the last sentence of this 28 subparagraph. 29 § 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section 30 1201 of the tax law, as amended by section 2 of part U of chapter 59 of 31 the laws of 2023, is amended to read as follows: 32 (2) any issuance or transfer of an interest in a REIT, or in a part- 33 nership or corporation in which a REIT owns a controlling interest imme- 34 diately following the issuance or transfer, in connection with a trans- 35 action described in subparagraph one of this paragraph. Notwithstanding 36 the foregoing, a transaction described in the preceding sentence shall 37 not constitute a real estate investment trust transfer unless (A) it 38 occurs in connection with the initial formation of the REIT and the 39 conditions described in subparagraphs three and four of this paragraph 40 are satisfied, or (B) in the case of any real estate investment trust 41 transfer occurring on or after July thirteenth, nineteen hundred nine- 42 ty-six and before September first, two thousand [twenty-six] 43 twenty-nine, the transaction is described in subparagraph five of this 44 paragraph in which case the provisions of such subparagraph shall apply. 45 § 3. Subparagraph (B) of paragraph 2 of subdivision e of section 46 11-2102 of the administrative code of the city of New York, as amended 47 by section 3 of part U of chapter 59 of the laws of 2023, is amended to 48 read as follows: 49 (B) any issuance or transfer of an interest in a REIT, or in a part- 50 nership or corporation in which a REIT owns a controlling interest imme- 51 diately following the issuance or transfer in connection with a trans-S. 9009--C 34 A. 10009--C 1 action described in subparagraph (A) of this paragraph. Notwithstanding 2 the foregoing, a transaction described in the preceding sentence shall 3 not constitute a real estate investment trust transfer unless (i) it 4 occurs in connection with the initial formation of the REIT and the 5 conditions described in subparagraphs (C) and (D) of this paragraph are 6 satisfied, or (ii) in the case of any real estate investment trust 7 transfer occurring on or after July thirteenth, nineteen hundred nine- 8 ty-six and before September first, two thousand [twenty-six] 9 twenty-nine, the transaction is described in subparagraph (E) of this 10 paragraph in which case the provision of such subparagraph shall apply. 11 § 4. This act shall take effect immediately. 12 PART N 13 Section 1. Notwithstanding any provision of law to the contrary, the 14 commissioner of taxation and finance is hereby directed to institute a 15 reregistration program in accordance with this section, to be completed 16 by December 31, 2030. Such commissioner shall issue a notice of expira- 17 tion to holders of current certificates of authority in an order and at 18 such times that such commissioner determines necessary for the proper 19 administration of such reregistration program and to ensure the integri- 20 ty and qualifications of registrants pursuant to this section. Such 21 notice of expiration shall be issued to the holder of such certificate 22 of authority at least 180 days prior to the date of expiration indicated 23 therein and shall be mailed by certified mail in accordance with the 24 provisions in subdivision (a) of section 1147 of the tax law. A properly 25 completed certificate of registration for a new certificate of authority 26 must be filed with such commissioner at least 90 days prior to the date 27 of expiration of the current certificate of authority. The commissioner, 28 within 30 days of receipt of a certificate of registration for a new 29 certificate of authority pursuant to this section, shall either: issue, 30 without charge, to each registrant a certificate of authority empowering 31 such person to collect sales tax for a specified term of no less than 32 three years, and a duplicate thereof for each additional place of busi- 33 ness of such person; or, shall propose to refuse to issue a certificate 34 of authority for any of the circumstances described in subparagraph (B) 35 of paragraph 4 of subdivision (a) of section 1134 of the tax law. A 36 person who has received a notice of proposed refusal pursuant to this 37 section may seek review of such determination in accordance with para- 38 graph (h) of subdivision 3-a of section 170 and subdivision 2 of section 39 2008 of the tax law; provided, however, the division of tax appeals must 40 schedule an expedited hearing within 30 days of receipt of a petition by 41 a person who has received a notice of proposed refusal pursuant to this 42 section. 43 § 2. (a) Notwithstanding any provision of law to the contrary, the 44 commissioner of taxation and finance shall administer a sales and use 45 tax penalty and interest discount program for all eligible taxpayers 46 with eligible tax liabilities as described in this section. 47 (b) For purposes of this sales and use tax penalty and interest 48 discount program, an eligible taxpayer is any person who is a holder of 49 a current certificate of authority subject to the reregistration program 50 authorized by section one of this act who has an eligible tax liability, 51 and who meets the conditions of this section. A person convicted of a 52 crime under the tax law, or a person convicted under the penal law who 53 is subject to a court order to pay a tax liability as result of such 54 conviction, is not eligible to participate in this program.S. 9009--C 35 A. 10009--C 1 (c) For purposes of this section, an eligible tax liability is a 2 liability for sales and use taxes imposed by article 28 of the tax law 3 or pursuant to the authority of article 29 of such law, including any 4 interest or penalty thereon, that is fixed and final on or before 5 September 1, 2026, such that the taxpayer no longer has any right to an 6 administrative or judicial review. An eligible tax liability shall not 7 include any penalty imposed by paragraphs 2 or 5 of subdivision (a) of 8 section 1145 of the tax law, or subdivisions (i) or (j) of such section 9 1145, as added by section 15 of subpart J of part V-1 of chapter 57 of 10 the laws of 2009. An eligible tax liability shall not include any 11 assessment that was reduced by a written agreement with the commission- 12 er, a liability that was compromised pursuant to subdivision eigh- 13 teenth-a of section 171 of the tax law, or a liability reduced pursuant 14 to subdivision 3 of section 1700 of the tax law. 15 (d) The discounted amount due under the sales and use tax penalty and 16 interest discount program for an eligible taxpayer with an eligible tax 17 liability shall be the sales or use tax liability plus fifty percent of 18 the interest accrued thereon, through December 31, 2026. 19 (e) The commissioner of taxation and finance shall identify the eligi- 20 ble taxpayers with eligible tax liabilities for purposes of this 21 section, shall compute the discounted amount due on such eligible tax 22 liabilities, and shall notify eligible taxpayers of such discounted 23 amount due. The discount authorized by this section shall not be granted 24 to any eligible taxpayer for any eligible tax liability unless the 25 eligible taxpayer pays the discounted amount due in full on or before 26 December 31, 2026. Payment pursuant to this program shall be made by 27 eligible taxpayers with eligible tax liabilities in a form and manner as 28 prescribed by the commissioner of taxation and finance. 29 (f) No refund will be granted or subsequent credit allowed with 30 respect to any penalty or interest paid with respect to an eligible tax 31 liability prior to the time the eligible taxpayer participates in the 32 sales and use tax penalty and interest discount program. 33 (g) No refund will be granted or subsequent credit allowed with 34 respect to any amount paid under the sales and use tax penalty and 35 interest discount program. 36 (h) If an eligible taxpayer has entered into an installment payment 37 agreement that applies to an eligible tax liability, the taxpayer may 38 participate in the sales and use tax penalty and interest discount 39 program with respect to that liability if the taxpayer pays the 40 discounted amount due under such program in full by December 31, 2026. 41 § 3. This act shall take effect immediately. 42 PART O 43 Intentionally Omitted 44 PART P 45 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 46 section 1115 of the tax law, as amended by section 1 of part AA of chap- 47 ter 59 of the laws of 2025, is amended to read as follows: 48 (B) Until May thirty-first, two thousand [twenty-six] twenty-nine, the 49 food and drink excluded from the exemption provided by clauses (i), (ii) 50 and (iii) of subparagraph (A) of this paragraph, and bottled water, 51 shall be exempt under this subparagraph: (i) when sold for one dollarS. 9009--C 36 A. 10009--C 1 and fifty cents or less through any vending machine that accepts coin or 2 currency only; or (ii) when sold for two dollars or less through any 3 vending machine that accepts any form of payment other than coin or 4 currency, whether or not it also accepts coin or currency. 5 § 2. This act shall take effect immediately. 6 PART Q 7 Section 1. Section 2 of part PP of chapter 58 of the laws of 2024 8 amending the tax law relating to establishing a sales tax exemption for 9 residential energy storage, is amended to read as follows: 10 § 2. This act shall take effect June 1, 2024 and shall expire and be 11 deemed repealed June 1, [2026] 2028. 12 § 2. This act shall take effect immediately. 13 PART R 14 Section 1. Subdivision (a) of section 308 of the tax law, as amended 15 by chapter 2 of the laws of 1995, is amended to read as follows: 16 (a) General.--Every petroleum business subject to tax under this arti- 17 cle shall monthly, on or before the twentieth day following the close of 18 its taxable month, file a return which shall state (i) the number of 19 gallons of motor fuel imported or caused to be imported into this state 20 for use, distribution, storage or sale in the state or produced, 21 refined, manufactured or compounded in the state during the preceding 22 calendar month, (ii) the number of gallons of diesel motor fuel sold or 23 used or, with respect to gallonage which prior thereto has not been 24 included in the measure of the tax imposed by this article, delivered by 25 the petroleum business to a filling station or into the fuel tank 26 connecting with the engine of a motor vehicle for use in the operation 27 thereof during the preceding calendar month, (iii) the number of gallons 28 of, and the resultant product produced, manufactured or blended, using 29 diesel motor fuel as a component of such resultant product and the sales 30 of such resultant product, and (iv) the number of gallons of residual 31 petroleum product sold or used in this state and the sales of such resi- 32 dual petroleum product, for the period covered by such return. A resi- 33 dual petroleum business shall include in its reports the number of 34 gallons of residual petroleum product imported into the state or 35 purchased in this state, the number of gallons of diesel motor fuel 36 purchased in this state and the number of gallons of, and the resultant 37 product produced, manufactured or blended by such petroleum business, 38 using diesel motor fuel as a component of such resultant product. The 39 commissioner of taxation and finance may permit the filing of a return 40 on a quarterly basis in the case of a petroleum business which only 41 makes sales of diesel motor fuel solely for residential heating purposes 42 and which is registered under article twelve-A of this chapter as a 43 diesel motor fuel distributor under a limited registration applicable 44 only to the importation, sale and distribution of diesel motor fuel for 45 the purposes described in subparagraph (i) of paragraph (b) of subdivi- 46 sion three of section two hundred eighty-two-a of this chapter or in the 47 case of a petroleum business registered as a "distributor of kero-jet 48 fuel only" pursuant to the provisions of subdivision two of section two 49 hundred eighty-two-a of this chapter. In the case of such returns 50 permitted to be filed on a quarterly basis, the adjustments to the rates 51 of tax then in effect, as provided for in sections three hundred one-a 52 and three hundred one-e of this article, which take effect on the firstS. 9009--C 37 A. 10009--C 1 day of January of each year shall, with respect to such quarterly 2 return, take effect on the first day of the next succeeding March. 3 Returns shall be filed with the commissioner [in] on a form prescribed 4 by the commissioner, setting forth such other information as the commis- 5 sioner may prescribe. Every petroleum business shall also transmit such 6 other returns and such facts and information as the commissioner may 7 require in the administration of this article. Every petroleum business 8 which is a corporation subject to tax under this article and which ceas- 9 es to exercise its franchise or to be subject to the tax imposed by this 10 article shall transmit to the commissioner a return on the date of such 11 cessation, or at such other time as the commissioner may require, cover- 12 ing each month or period for which no return was theretofore filed. The 13 commissioner may, if the commissioner deems it necessary in order to 14 insure the payment of the tax imposed by this article, require returns 15 to be made at such times and covering such periods as the commissioner 16 may deem necessary. Notwithstanding the foregoing provisions of this 17 subdivision, the commissioner may require any corporation or unincorpo- 18 rated business [which] that engages in transactions involving petroleum 19 or similar products, including aviation fuels, to file a monthly return, 20 which shall contain [any data specified by him] such information as the 21 commissioner prescribes, regardless of whether such corporation or unin- 22 corporated business is subject to tax under this article. Notwithstand- 23 ing the provisions of this subdivision, every petroleum business that 24 operates a "commercial vessel", as defined in subdivision (b) of section 25 eleven hundred one of this chapter, shall annually file the returns 26 required under this section, on a form and containing such information 27 as the commissioner prescribes. Such "commercial vessel" returns shall 28 be filed annually on or before March twentieth and shall cover the four 29 sales tax quarterly periods described in subdivision (b) of section 30 eleven hundred thirty-six of this chapter immediately preceding such 31 date. 32 § 2. This act shall take effect on the first day of the month next 33 commencing at least ninety days after this act shall have become a law; 34 provided, however, that a petroleum business that is required to file an 35 annual return pursuant to section one of this act shall be required to 36 file monthly returns for periods ending on or before such effective 37 date; and provided further, however, that such petroleum business shall 38 file an annual return for the remainder of the annual period of March 1, 39 2026 through February 28, 2027, on or before March 20, 2027, and shall 40 be required to file annual returns thereafter. 41 PART S 42 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 43 amending the tax law and other laws relating to providing exemptions, 44 reimbursements and credits from various taxes for certain alternative 45 fuels, as amended by section 1 of part EE of chapter 59 of the laws of 46 2021, is amended to read as follows: 47 § 19. This act shall take effect immediately; provided, however, that 48 sections one through thirteen of this act shall take effect September 1, 49 2006 and shall be deemed repealed on September 1, [2026] 2031 and such 50 repeal shall apply in accordance with the applicable transitional 51 provisions of sections 1106 and 1217 of the tax law, and shall apply to 52 sales made, fuel compounded or manufactured, and uses occurring on or 53 after such date, and with respect to sections seven through eleven of 54 this act, in accordance with applicable transitional provisions ofS. 9009--C 38 A. 10009--C 1 sections 1106 and 1217 of the tax law; provided, however, that the 2 commissioner of taxation and finance shall be authorized on and after 3 the date this act shall have become a law to adopt and amend any rules 4 or regulations and to take any steps necessary to implement the 5 provisions of this act; provided further that sections fourteen through 6 sixteen of this act shall take effect immediately and shall apply to 7 taxable years beginning on or after January 1, 2006. 8 § 2. This act shall take effect immediately. 9 PART T 10 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real 11 property tax law, as amended by section 1 of subpart A of part Z of 12 chapter 59 of the laws of 2022, is amended to read as follows: 13 (a-2) Notwithstanding any provision of law to the contrary, [where an14application for the "enhanced" STAR exemption authorized by subdivision15four of this section has not been filed on or before the taxable status16date, and the owner believes that good cause existed for the failure to17file the application by that date,] when a property owner of a property 18 with a basic STAR exemption believes they have become eligible for the 19 enhanced STAR exemption but their basic STAR exemption has not been 20 changed to an enhanced STAR exemption pursuant to the provisions of 21 paragraph (b) of subdivision four-b of this section, the owner may, no 22 later than the last day for paying school taxes without incurring inter- 23 est or penalty, submit a [written] request to the commissioner asking 24 [him or her to extend the filing deadline and] the commissioner to grant 25 the exemption. Such request shall be in a form prescribed by the commis- 26 sioner and shall contain an explanation of why the [deadline was missed,27and shall be accompanied by an application, reflecting the facts and28circumstances as they existed on the taxable status date] property owner 29 believes they have become eligible for the enhanced STAR exemption. 30 After consulting with the assessor, the commissioner may [extend the31filing deadline and] grant the exemption if the commissioner is satis- 32 fied that [(i) good cause existed for the failure to file the applica-33tion by the taxable status date, and that (ii)] the applicant is [other-34wise] entitled to the exemption. The commissioner shall mail notice of 35 [his or her] such determination to such owner and the assessor. If the 36 determination states that the commissioner has granted the exemption, 37 the assessor shall thereupon be authorized and directed to correct the 38 assessment roll accordingly, or, if another person has custody or 39 control of the assessment roll, to direct that person to make the appro- 40 priate corrections. Provided, however, that if the assessment roll 41 cannot be corrected in time for the exemption to appear on the appli- 42 cant's school tax bill, the commissioner shall be authorized to remit 43 directly to the applicant the tax savings that the STAR exemption would 44 have yielded if it had appeared on the applicant's tax bill. The amounts 45 so payable shall be paid from the account established for the payment of 46 STAR benefits to late registrants pursuant to subparagraph (iii) of 47 paragraph (a) of subdivision fourteen of this section. 48 § 2. Paragraphs (c) and (d) of subdivision 14 of section 425 of the 49 real property tax law are REPEALED and a new paragraph (c) is added to 50 read as follows: 51 (c) When the commissioner determines that a property is ineligible for 52 a STAR exemption, notice of such determination and an opportunity for 53 review thereof shall be provided in the manner set forth in subdivision 54 four-b of this section.S. 9009--C 39 A. 10009--C 1 § 3. Subparagraphs (ii) and (iii) of paragraph (b) of subdivision 15 2 of section 425 of the real property tax law are REPEALED and a new 3 subparagraph (ii) is added to read as follows: 4 (ii) When the commissioner determines that a property is ineligible 5 for a STAR exemption, notice of such determination and an opportunity 6 for review thereof shall be provided in the manner set forth in subdivi- 7 sion four-b of this section. 8 § 4. Subparagraph (A) of paragraph 1 of subsection (eee) of section 9 606 of the tax law, as amended by section 8 of part A of chapter 73 of 10 the laws of 2016, is amended to read as follows: 11 (A) "Qualified taxpayer" means a resident individual of the state, who 12 maintained [his or her] their primary residence in this state on [Decem-13ber thirty-first] July first of the taxable year, and who was an owner 14 of that property on that date, provided however: 15 (i) A taxpayer whose primary residence received a STAR exemption for 16 the associated fiscal year shall not be considered a qualified taxpayer 17 for purposes of this subsection. 18 (ii) An individual may be considered a qualified taxpayer with respect 19 to no more than one primary residence during any given taxable year. 20 [(iii) If a resident individual was an owner of the property during21the taxable year but did not own it on December thirty-first of the22taxable year, he or she shall be considered a qualified taxpayer if the23property was his or her primary residence during the taxable year and he24or she paid qualifying taxes on that property while he or she was still25an owner of that property.26(iv) If a resident individual has acquired ownership of property27during a taxable year, such resident individual shall not be considered28a qualified taxpayer for that taxable year to the extent that an advance29payment of the credit for that taxable year has been issued to the prior30owner with respect to the same property, unless such resident individual31can demonstrate that he or she paid qualifying taxes on such property32during the taxable year, and that the prior owner did not.] 33 § 5. Subsection (eee) of section 606 of the tax law is amended by 34 adding a new paragraph 2 to read as follows: 35 (2) Allowance of credit. A qualified taxpayer shall be allowed a cred- 36 it as provided in paragraph three or four of this subsection, whichever 37 is applicable, against the taxes imposed by this article reduced by the 38 credits permitted by this article, provided that the requirements set 39 forth in the applicable subsection are satisfied. If the credit exceeds 40 the tax as so reduced for such year under this article, the excess shall 41 be treated as an overpayment, to be credited or refunded, without inter- 42 est. If a qualified taxpayer is not required to file a return pursuant 43 to section six hundred fifty-one of this article, a qualified taxpayer 44 may nevertheless receive the full amount of the credit to be credited or 45 repaid as an overpayment, without interest thereon. 46 § 6. The opening paragraph of subparagraph (A) of paragraph 4 of 47 subsection (eee) of section 606 of the tax law, as amended by section 11 48 of part O of chapter 59 of the laws of 2025, is amended to read as 49 follows: 50 Beginning with taxable years after two thousand [twenty-four] twenty- 51 five, an enhanced STAR credit shall be available to a qualified taxpayer 52 where both of the following conditions are satisfied: 53 § 7. Subparagraph (C) of paragraph 13 of subsection (eee) of section 54 606 of the tax law, as added by section 1 of part TT of chapter 59 of 55 the laws of 2017, is amended to read as follows:S. 9009--C 40 A. 10009--C 1 (C) If the commissioner determines that a taxpayer received a prelimi- 2 nary advance payment that is above or below the advance payment to which 3 he or she was entitled under this subsection, the commissioner shall 4 provide notice to such taxpayer that the next advance payment due to 5 such taxpayer under this subsection shall be adjusted to reconcile such 6 underpayment or overpayment[; provided, however, the commissioner shall7permit a taxpayer to request that such adjustment be made on an8originally filed timely income tax return for the tax year in which such9overpayment or underpayment occurred, provided such return is filed on10or before the due date for such return, determined without regard to11extensions]. 12 § 8. This act shall take effect immediately; provided, however, that 13 section six of this act shall be deemed to have been in full force and 14 effect on and after January 1, 2026. 15 PART U 16 Section 1. Section 4 of chapter 475 of the laws of 2013 amending the 17 real property tax law relating to assessment ceilings for local public 18 utility mass real property, as amended by section 1 of part Y of chapter 19 59 of the laws of 2022, is amended to read as follows: 20 § 4. This act shall take effect on the first of January of the second 21 calendar year commencing after this act shall have become a law and 22 shall apply to assessment rolls with taxable status dates on or after 23 such date; provided, however, that this act shall expire and be deemed 24 repealed [twelve] sixteen years after such effective date; and provided, 25 further, that no assessment of local public utility mass real property 26 appearing on the municipal assessment roll with a taxable status date 27 occurring in the first calendar year after this act shall have become a 28 law shall be less than ninety percent or more than one hundred ten 29 percent of the assessment of the same property on the date this act 30 shall have become a law. 31 § 2. Paragraph (a) of subdivision 2 of section 200-a of the real prop- 32 erty tax law, as separately amended by section 2 of part J of chapter 57 33 and chapter 475 of the laws of 2013, is amended to read as follows: 34 (a) The power to determine the final special franchise value, special 35 franchise assessment, railroad ceiling, state equalization rate or any 36 other equalization product established pursuant to this chapter for 37 which a complaint has been filed, as provided by sections four hundred 38 eighty-nine-o, four hundred eighty-nine-ll, [four hundred ninety-nine-39pppp,] six hundred fourteen, twelve hundred ten, twelve hundred fifty- 40 three, and twelve hundred sixty-three of this chapter; 41 § 3. This act shall take effect immediately; provided, however, that 42 the amendments to paragraph (a) of subdivision 2 of section 200-a of the 43 real property tax law made by section two of this act shall not affect 44 the expiration and reversion of such section pursuant to section 4 of 45 chapter 475 of the laws of 2013, as amended. 46 PART V 47 Section 1. This Part enacts into law components of legislation relat- 48 ing to rent exemptions and rent increase exemptions and property tax 49 exemptions for certain persons. Each component is wholly contained with- 50 in a Subpart identified as Subparts A through B. The effective date for 51 each particular provision contained within such Subpart is set forth in 52 the last section of such Subpart. Any provision in any section containedS. 9009--C 41 A. 10009--C 1 within a Subpart, including the effective date of the Subpart, which 2 makes reference to a section "of this act", when used in connection with 3 that particular component, shall be deemed to mean and refer to the 4 corresponding section of the Subpart in which it is found. Section three 5 of this Part sets forth the general effective date of this Part. 6 SUBPART A 7 Section 1. Paragraph a of subdivision 3 of section 467-b of the real 8 property tax law, as amended by section 1 of part U of chapter 55 of the 9 laws of 2014, is amended to read as follows: 10 a. for a dwelling unit where the head of the household is a person 11 sixty-two years of age or older, no tax abatement shall be granted if 12 the combined income of all members of the household for the income tax 13 year immediately preceding the date of making application exceeds four 14 thousand dollars, or such other sum not more than twenty-five thousand 15 dollars beginning July first, two thousand five, twenty-six thousand 16 dollars beginning July first, two thousand six, twenty-seven thousand 17 dollars beginning July first, two thousand seven, twenty-eight thousand 18 dollars beginning July first, two thousand eight, twenty-nine thousand 19 dollars beginning July first, two thousand nine, [and] fifty thousand 20 dollars beginning July first, two thousand fourteen, and seventy-five 21 thousand dollars beginning July first, two thousand twenty-six, as may 22 be provided by the local law, ordinance or resolution adopted pursuant 23 to this section, provided that when the head of the household retires 24 before the commencement of such income tax year and the date of filing 25 the application, the income for such year may be adjusted by excluding 26 salary or earnings and projecting [his or her] their retirement income 27 over the entire period of such year. 28 § 2. Paragraph b of subdivision 3 of section 467-b of the real proper- 29 ty tax law, as amended by section 1 of chapter 129 of the laws of 2014, 30 is amended to read as follows: 31 b. for a dwelling unit where the head of the household qualifies as a 32 person with a disability pursuant to subdivision five of this section, 33 no tax abatement shall be granted if the combined income for all members 34 of the household for the current income tax year exceeds fifty thousand 35 dollars beginning July first, two thousand fourteen, and seventy-five 36 thousand dollars beginning July first, two thousand twenty-six, as may 37 be provided by the local law, ordinance or resolution adopted pursuant 38 to this section. 39 § 3. Subparagraph 1 of paragraph d of subdivision 1 of section 467-c 40 of the real property tax law, as amended by section 2 of part U of chap- 41 ter 55 of the laws of 2014, is amended to read as follows: 42 (1) a person or [his or her] their spouse who is sixty-two years of 43 age or older and is entitled to the possession or to the use and occu- 44 pancy of a dwelling unit, provided, however, with respect to a dwelling 45 which was subject to a mortgage insured or initially insured by the 46 federal government pursuant to section two hundred thirteen of the 47 National Housing Act, as amended "eligible head of the household" shall 48 be limited to that person or [his or her] their spouse who was entitled 49 to possession or the use and occupancy of such dwelling unit at the time 50 of termination of such mortgage, and whose income when combined with the 51 income of all other members of the household, does not exceed six thou- 52 sand five hundred dollars for the taxable period, or such other sum not 53 less than sixty-five hundred dollars nor more than twenty-five thousand 54 dollars beginning July first, two thousand five, twenty-six thousandS. 9009--C 42 A. 10009--C 1 dollars beginning July first, two thousand six, twenty-seven thousand 2 dollars beginning July first, two thousand seven, twenty-eight thousand 3 dollars beginning July first, two thousand eight, twenty-nine thousand 4 dollars beginning July first, two thousand nine, [and] fifty thousand 5 dollars beginning July first, two thousand fourteen, and seventy-five 6 thousand dollars beginning July first, two thousand twenty-six, as may 7 be provided by local law. 8 § 4. Paragraph m of subdivision 1 of section 467-c of the real proper- 9 ty tax law, as amended by chapter 129 of the laws of 2014, is amended to 10 read as follows: 11 m. "Person with a disability" means an individual who is currently 12 receiving social security disability insurance (SSDI) or supplemental 13 security income (SSI) benefits under the federal social security act or 14 disability pension or disability compensation benefits provided by the 15 United States department of veterans affairs or those previously eligi- 16 ble by virtue of receiving disability benefits under the supplemental 17 security income program or the social security disability program and 18 currently receiving medical assistance benefits based on determination 19 of disability as provided in section three hundred sixty-six of the 20 social services law and whose income for the current income tax year, 21 together with the income of all members of such individual's household, 22 does not exceed fifty thousand dollars beginning July first, two thou- 23 sand fourteen, and seventy-five thousand dollars beginning July first, 24 two thousand twenty-six, as may be provided by local law. 25 § 5. Paragraph (a) of subdivision 1 of section 467 of the real proper- 26 ty tax law, as amended by section 1 of part K of chapter 59 of the laws 27 of 2023, is amended to read as follows: 28 (a) Real property owned by one or more persons, each of whom is 29 sixty-five years of age or over, or real property owned by a married 30 couple or by siblings, one of whom is sixty-five years of age or over, 31 or real property owned by one or more persons, some of whom qualify 32 under this section and the others of whom qualify under section four 33 hundred fifty-nine-c of this title, shall be exempt from payments in 34 lieu of taxes (PILOT) to the battery park city authority or from taxa- 35 tion by any municipal corporation in which located to the extent of 36 fifty per centum of the assessed valuation thereof, provided the govern- 37 ing board of such municipality, after public hearing, adopts a local 38 law, ordinance or resolution providing therefor, and provided further 39 that such local law, ordinance or resolution shall be enacted or amended 40 separately from any other local law, ordinance, or resolution authorized 41 pursuant to a section of this article other than (i) this section or 42 (ii) section four hundred fifty-nine-c of this title. For the purposes 43 of this section, the term "sibling" shall include persons whose 44 relationship as siblings has been established through either half blood, 45 whole blood or adoption. 46 § 6. Subparagraph (i) of paragraph (a) of subdivision 3 of section 467 47 of the real property tax law, as amended by section 2 of part K of chap- 48 ter 59 of the laws of 2023, is amended to read as follows: 49 (i) if the income of the owner or the combined income of the owners of 50 the property for the applicable income tax year exceeds the sum of three 51 thousand dollars, or such other sum not less than three thousand dollars 52 nor more than [fifty] seventy-five thousand dollars beginning July 53 first, two thousand twenty-seven, as may be provided by the local law, 54 ordinance or resolution adopted pursuant to this section.S. 9009--C 43 A. 10009--C 1 § 7. Subparagraph (i) of paragraph (a) of subdivision 5 of section 2 459-c of the real property tax law, as amended by section 8 of part K of 3 chapter 59 of the laws of 2023, is amended to read as follows: 4 (i) if the income of the owner or the combined income of the owners of 5 the property for the applicable income tax year exceeds the sum of three 6 thousand dollars, or such other sum not less than three thousand dollars 7 nor more than [fifty] seventy-five thousand dollars beginning July 8 first, two thousand twenty-seven, as may be provided by the local law or 9 resolution adopted pursuant to this section. 10 § 8. Paragraph (a) of subdivision 1 of section 459-c of the real prop- 11 erty tax law, as amended by chapter 209 of the laws of 2024, is amended 12 to read as follows: 13 (a) Real property owned by one or more persons with disabilities, or 14 real property owned by a married person or a married couple, or by 15 siblings, at least one of whom has a disability, or a person with a 16 disability who has their primary residence in a special needs trust, or 17 a property owner who has a tenant with a disability whose lease provides 18 them with a life interest in the property as long as the tenant remains 19 in residence, or real property owned by one or more persons, some of 20 whom qualify under this section and the others of whom qualify under 21 section four hundred sixty-seven of this title, and whose income, as 22 hereafter defined, is limited by reason of such disability, shall be 23 exempt from payments in lieu of taxes (PILOT) to the battery city park 24 authority or from taxation by any municipal corporation in which located 25 to the extent of fifty per centum of the assessed valuation thereof as 26 hereinafter provided. After a public hearing, the governing board of a 27 county, city, town or village may adopt a local law and a school 28 district, other than a school district subject to article fifty-two of 29 the education law, may adopt a resolution to grant the exemption author- 30 ized pursuant to this section, provided that such local law or resol- 31 ution shall be enacted or amended separately from any other local law, 32 ordinance, or resolution authorized pursuant to a section of this arti- 33 cle other than (i) this section or (ii) section four hundred sixty-seven 34 of this title. 35 § 9. Section 4 of part U of chapter 55 of the laws of 2014, amending 36 the real property tax law relating to the tax abatement and exemption 37 for rent regulated and rent controlled property occupied by senior citi- 38 zens, as amended by chapter 144 of the laws of 2024, is amended to read 39 as follows: 40 § 4. This act shall take effect July 1, 2014, and sections one and two 41 of this act shall expire and be deemed repealed June 30, [2026] 2028; 42 provided that the amendment to section 467-b of the real property tax 43 law made by section one of this act shall not affect the expiration of 44 such section and shall be deemed to expire therewith. 45 § 10. Section 4 of chapter 129 of the laws of 2014, amending the real 46 property tax law relating to the tax abatement and exemption for rent 47 regulated and rent controlled property occupied by persons with disabil- 48 ities, as amended by chapter 144 of the laws of 2024, is amended to read 49 as follows: 50 § 4. This act shall take effect July 1, 2014 provided, however, that: 51 (a) the amendments to paragraph b of subdivision 3 of section 467-b of 52 the real property tax law made by section one of this act shall be 53 subject to the expiration and reversion of such subdivision pursuant to 54 section 17 of chapter 576 of the laws of 1974, as amended, when upon 55 such date the provisions of section two of this act shall take effect; 56 andS. 9009--C 44 A. 10009--C 1 (b) nothing contained in this act shall be construed so as to extend 2 the provisions of this act beyond June 30, [2026] 2028, when upon such 3 date this act shall expire and the provisions contained in this act 4 shall be deemed repealed. 5 § 11. This act shall take effect immediately; provided however: 6 (a) sections one, two, three and four of this act shall expire and be 7 deemed repealed June 30, 2028; 8 (b) the amendments to paragraphs a and b of subdivision 3 of section 9 467-b of the real property tax law made by sections one and two of this 10 act shall not affect the expiration of such paragraphs and shall be 11 deemed to expire therewith; 12 (c) the amendments to subparagraph 1 of paragraph d of subdivision 1 13 of section 467-c of the real property tax law made by section three of 14 this act shall not affect the expiration of such subparagraph and shall 15 be deemed to expire therewith; 16 (d) the amendments to paragraph m of subdivision 1 of section 467-c of 17 the real property tax law made by section four of this act shall not 18 affect the expiration of such paragraph and shall be deemed to expire 19 therewith; and 20 (e) sections five, six, seven, and eight of this act shall take effect 21 July 1, 2027. 22 SUBPART B 23 Section 1. The administrative code of the city of New York is amended 24 by adding a new section 26-605.2 to read as follows: 25 § 26-605.2 Required notice. (a) (1) A tenant residing in a dwelling 26 unit subject to the provisions of this chapter shall be furnished a 27 notice informing such tenant about the tenant's potential eligibility 28 for a rent increase exemption pursuant to this chapter and sections four 29 hundred sixty-seven-b and four hundred sixty-seven-c of the real proper- 30 ty tax law. 31 (2) The form and content of such notice shall be promulgated as 32 required by paragraph i of subdivision three of section four hundred 33 sixty-seven-b of the real property tax law. 34 (3) Such notice shall clearly and conspicuously display the eligibil- 35 ity requirements for the rent increase exemption and the website address 36 and telephone number where tenants may obtain more information. 37 (b) The notice required by subdivision (a) of this section shall be 38 furnished by the following agencies or individuals at the same time as 39 the notice required by the occurrence of the following events: 40 (1) Notwithstanding paragraph two of subdivision (a) of this section, 41 the state commissioner of housing and community renewal shall provide 42 such notice, in a form to be determined by such commissioner, to a 43 tenant: 44 (i) Upon receipt of an application for a rent adjustment due to a 45 major capital improvement; and 46 (ii) For dwelling units subject to chapter three of this title, upon a 47 maximum base rent adjustment pursuant to paragraph one of subdivision g 48 of section 26-405 of this title. 49 (2) The landlord of a dwelling unit shall provide such notice to a 50 tenant: 51 (i) With an initial lease and any renewal lease; and 52 (ii) Upon the annual registration of a housing accommodation as 53 required by section 26-517 of this title.S. 9009--C 45 A. 10009--C 1 (3) A company, as such term is defined in subdivision two of section 2 twelve of the private housing finance law, shall provide such notice to 3 a tenant upon a rent increase pursuant to section thirty-one of the 4 private housing finance law, provided that the company shall provide 5 such notice to a tenant at least once annually. 6 § 2. Subparagraph 2 of paragraph i of subdivision 3 of section 467-b 7 of the real property tax law, as added by chapter 424 of the laws of 8 2015, is amended to read as follows: 9 (2) (A) a landlord of any housing accommodation subject to provisions 10 of the local emergency housing rent control act, the emergency tenant 11 protection act of nineteen seventy-four or any local laws enacted pursu- 12 ant thereto, the emergency housing rent control law or the rent stabili- 13 zation law of nineteen hundred sixty-nine shall, at least once annually, 14 including with a new lease and all renewal leases and upon the annual 15 registration of a housing accommodation as required by section 26-517 of 16 the administrative code of the city of New York delivered to the occu- 17 pant of such accommodation, provide the informational material describ- 18 ing eligibility for and the benefits of the senior citizen rent increase 19 exemption program and the disability rent increase exemption program, as 20 provided by the entity administering the program pursuant to subpara- 21 graph one of this paragraph. 22 (B) The state commissioner of housing and community renewal shall 23 provide notice to a tenant, the form of which shall be determined by 24 such commissioner, clearly and conspicuously displaying the eligibility 25 requirements for the senior citizen rent increase exemption program and 26 the disability rent increase exemption program and the website address 27 and telephone number where tenants may obtain more information. Such 28 commissioner shall provide such notice to a tenant at the same time as: 29 (i) Receipt of an application for a rent adjustment due to a major 30 capital improvement; and 31 (ii) For dwelling units subject to chapter three of title twenty-six 32 of the administrative code of the city of New York, a maximum base rent 33 adjustment pursuant to paragraph one of subdivision g of section 26-405 34 of the administrative code of the city of New York. 35 (C) A company, as such term is defined in subdivision two of section 36 twelve of the private housing finance law, shall provide the notice 37 required by clause (A) of this subparagraph to a tenant upon a rent 38 increase pursuant to section thirty-one of the private housing finance 39 law, provided that the company shall provide such notice to a tenant at 40 least once annually. 41 § 3. Subdivision 3 of section 467-c of the real property tax law is 42 amended by adding a new paragraph e to read as follows: 43 e. (1) notwithstanding any provision of law to the contrary: 44 (A) A tenant residing in a dwelling unit subject to the provisions of 45 this section shall be furnished a notice informing such tenant about the 46 tenant's potential eligibility for a rent increase exemption pursuant to 47 this section. 48 (B) The form and content of such notice shall be promulgated as 49 required by paragraph i of subdivision three of section four hundred 50 sixty-seven-b of this title. 51 (C) Such notice shall clearly and conspicuously display the eligibil- 52 ity requirements for the rent increase exemption and the website address 53 and telephone number where tenants may obtain more information. 54 (2) The notice required by subparagraph one of this paragraph shall be 55 furnished by the following agencies or individuals at the same time as 56 the notice required by the occurrence of the following events:S. 9009--C 46 A. 10009--C 1 (A) Notwithstanding clause (B) of subparagraph one of this paragraph, 2 the state commissioner of housing and community renewal shall provide 3 such notice, in a form to be determined by such commissioner, to a 4 tenant: 5 (i) Upon receipt of an application for a rent adjustment due to a 6 major capital improvement; and 7 (ii) For dwelling units subject to chapter three of title twenty-six 8 of the administrative code of the city of New York, upon a maximum base 9 rent adjustment pursuant to paragraph one of subdivision g of section 10 26-405 of the administrative code of the city of New York. 11 (B) The landlord of a dwelling unit shall provide such notice to a 12 tenant: 13 (i) With an initial lease and any renewal lease; and 14 (ii) Upon the annual registration of a housing accommodation as 15 required by section 26-517 of the administrative code of the city of New 16 York. 17 (C) A company, as such term is defined in subdivision two of section 18 twelve of the private housing finance law, shall provide such notice to 19 a tenant upon a rent increase pursuant to section thirty-one of the 20 private housing finance law, provided that the company shall provide 21 such notice to a tenant at least once annually. 22 § 4. This act shall take effect on the thirtieth day after it shall 23 have become a law. Effective immediately, the addition, amendment and/or 24 repeal of any rule or regulation necessary for the implementation of 25 this act on its effective date are authorized to be made and completed 26 on or before such effective date. 27 § 2. Severability. If any clause, sentence, paragraph, subdivision, 28 section or subpart of this part shall be adjudged by any court of compe- 29 tent jurisdiction to be invalid, such judgment shall not affect, impair, 30 or invalidate the remainder thereof, but shall be confined in its opera- 31 tion to the clause, sentence, paragraph, subdivision, section or subpart 32 directly involved in the controversy in which the judgment shall have 33 been rendered. It is hereby declared to be the intent of the legislature 34 that this part and each subpart herein would have been enacted even if 35 such invalid provisions had not been included herein. 36 § 3. This act shall take effect immediately provided, however, that 37 the applicable effective date of Subparts A through B of this Part shall 38 be as specifically set forth in the last section of such Subparts. 39 PART W 40 Section 1. Subdivisions 2, 4 and 5 of section 136 of the racing, 41 pari-mutuel wagering and breeding law, as added by section 1 of subpart 42 A of part FF of chapter 59 of the laws of 2025, are amended to read as 43 follows: 44 2. Beginning with state fiscal year two thousand twenty-six, the 45 aggregate amount of the pari-mutuel wagering tax paid by a harness track 46 pursuant to [paragraph (b) of] subdivision one of this section in a 47 state fiscal year shall not exceed the pari-mutuel wagering tax attrib- 48 utable to live racing handle paid by such harness track in state fiscal 49 year two thousand twenty-four. 50 4. Breaks[, as defined in sections two hundred thirty-six, two hundred51thirty-eight, three hundred eighteen, and four hundred eighteen of this52chapter] are not permitted, unless required by another jurisdiction 53 pursuant to section nine hundred five of this chapter. All distributionsS. 9009--C 47 A. 10009--C 1 to the holders of winning tickets shall be calculated to the nearest 2 penny. 3 5. Notwithstanding subdivision four of this section, a racetrack may 4 round to the nearest nickel for bets made at the facility[, however the] 5 only if such breaks [must be] are directed to the retired and rescued 6 thoroughbred horse aftercare fund pursuant to section two hundred nine-n 7 of the tax law if the bet was made on a thoroughbred race, and to the 8 retired and rescued standardbred horse aftercare fund pursuant to 9 section two hundred nine-o of the tax law if the bet was made on a 10 [standardbred] harness race. 11 § 2. Section 236 of the racing, pari-mutuel wagering and breeding law, 12 as amended by chapter 18 of the laws of 2008, subdivisions 1, 2 and 3 as 13 amended by chapter 243 of the laws of 2020, is amended to read as 14 follows: 15 § 236. Disposition of pari-mutuel pools; percentage payable to state 16 as a tax; authority of counties or certain cities to impose a tax. 1. 17 Every corporation authorized under this chapter to conduct pari-mutuel 18 betting at a race meeting on races run thereat, except as provided in 19 section two hundred thirty-eight of this article with respect to the 20 franchised corporation, shall distribute all sums deposited in any pari- 21 mutuel pool to the holders of winning tickets therein, providing such 22 tickets be presented for payment before April first of the year follow- 23 ing the year of their purchase, less an amount that shall be established 24 and retained by such racing corporation of between fourteen to twenty 25 percent of the total deposits in pools resulting from regular on-track 26 bets and less sixteen to twenty-two percent of the total deposits in 27 pools resulting from multiple on-track bets and less twenty to thirty 28 percent of the total deposits in pools resulting from exotic on-track 29 bets and less twenty to thirty-six percent of the total pools resulting 30 from super exotic on-track bets[, plus the breaks]. The retention rate 31 to be established is subject to the prior approval of the commission. 32 Such rate may not be changed more than once per calendar quarter to be 33 effective on the first day of the calendar quarter. "Exotic bets" and 34 "multiple bets" shall have the meanings set forth in section five 35 hundred nineteen of this chapter [and breaks are hereby defined as the36odd cents over any multiple of five for payoffs greater than one dollar37five cents but less than five dollars, over any multiple of ten for38payoffs greater than five dollars but less than twenty-five dollars,39over any multiple of twenty-five for payoffs greater than twenty-five40dollars but less than two hundred fifty dollars, or over any multiple of41fifty for payoffs over two hundred fifty dollars]. "Super exotic bets" 42 shall have the meaning set forth in section three hundred one of this 43 chapter. Of the amount so retained there shall be paid by such corpo- 44 ration to the department of taxation and finance as a reasonable tax by 45 the state for the privilege of conducting pari-mutuel betting on the 46 races run at the race meeting held by such corporation, which tax is 47 hereby levied, [the following percentages of the total pool, plus48fifty-five percent of the breaks; the applicable rates for regular and49multiple bets shall be one and one-half percent; the applicable rates50for exotic bets shall be six and three-quarter percent and the applica-51ble rate for super exotic bets shall be seven and three-quarter percent.52Effective on and after September first, nineteen hundred ninety-four,53the applicable tax rate shall be one percent of all wagers, provided54that, an amount equal to one-half the difference between the taxation55rate for on-track regular, multiple and exotic bets as of December thir-56ty-first, nineteen hundred ninety-three and the rates on such on-trackS. 9009--C 48 A. 10009--C 1wagers as herein provided shall be used exclusively for purses.2Provided, however, that] in the applicable percentage set forth in 3 subdivision one of section one hundred thirty-six of this chapter. Any 4 such racing corporation shall, for any twelve-month period beginning on 5 April first in nineteen hundred ninety and any year thereafter, [each of6the applicable rates set forth above shall be increased by one-quarter7of one percent on all on-track bets of any such racing corporation that8did not] expend an amount equal to at least one-half of one percent of 9 its on-track bets during the immediately preceding calendar year for 10 enhancements consisting of capital improvements as defined by section 11 two hundred thirty-seven of this article, repairs to its physical plant, 12 structures, and equipment used in its racing or wagering operations [as13certified by the commission to the commissioner of taxation and finance14no later than eighty days after the close of such calendar year,] and 15 five special events at each track in each calendar year, not otherwise 16 conducted in the ordinary course of business, the purpose of which shall 17 be to encourage, attract and promote track attendance and encourage new 18 and continued patronage, which events shall be subject to the prior 19 approval of the commission for purposes of this subdivision. In the 20 determination of the amounts expended for such enhancements, the commis- 21 sion may consider the immediately preceding twelve-month calendar period 22 or the average of the two immediately preceding twelve-month calendar 23 periods. Provided further, however, that of the portion of the increased 24 amounts retained by such corporation above those amounts retained in 25 nineteen hundred eighty-four, an amount of such increase shall be 26 distributed to purses in the same proportion as commissions and purses 27 were distributed during nineteen hundred eighty-four as certified by the 28 commission. [Such corporation in the second zone shall receive a credit29against the daily tax imposed by this subdivision in an amount equal to30four-tenths of one percent of total daily pools resulting from the31simulcast of such corporation's races to licensed facilities operated by32regional off-track betting corporations in accordance with section one33thousand eight of this chapter, provided however, that sixty percent of34the amount of such credit shall be used exclusively to increase purses35for overnight races conducted by such corporation; and, provided36further, that in no event shall such total daily credit exceed four-37tenths of one percent of the total daily pool of such corporation.] 38 Such corporation shall pay to the New York state thoroughbred breeding 39 and development fund one-half of one percent of the total daily on-track 40 pari-mutuel pools from regular, multiple and exotic bets, and three 41 percent of super exotic bets. [The corporation shall receive credit as a42reduction of the tax by the state for the privilege of conducting pari-43mutuel betting for the amounts, except amounts paid from super exotic44betting pools, paid to the New York state thoroughbred breeding and45development fund after January first, nineteen hundred seventy-eight.] 46 Such corporation shall distribute to purses an amount equal to fifty 47 percent of any compensation it receives from simulcasting or from wager- 48 ing conducted outside the United States. Such corporation shall pay to 49 the commission as a regulatory fee, which fee is hereby levied, six- 50 tenths of one percent of the total daily on-track pari-mutuel pools of 51 such corporation. 52 2. The balance of the retained percentage of such pool [and of the53breaks] shall be held by such corporation for its own use and purposes, 54 except that in addition to any payments to purses provided for in subdi- 55 vision one of this section, an amount equal to two and one-half percent 56 of the total pools resulting from on-track regular bets and exotic betsS. 9009--C 49 A. 10009--C 1 and an amount equal to three and one-half percent of the total pools 2 resulting from on-track multiple bets and an amount equal to twelve 3 percent of on-track super exotic bets shall be used exclusively for the 4 purpose of increasing purses (including stakes, premiums and prizes) 5 awarded to horses in races conducted by such corporation. Such two and 6 one-half percent and three and one-half percent shall be in addition to 7 (i) four and one-half percent of such total pools resulting from regular 8 and multiple wagers and five and one-half percent of such total pools 9 resulting from exotic wagers, or (ii) the percentage of such total pools 10 used for purses (including stakes, premiums and prizes) during the year 11 nineteen hundred eighty-two, whichever is larger. Such percentage of the 12 total pools mentioned in this subdivision shall be used for purses 13 (including stakes, premiums and prizes) in races hereafter conducted by 14 such corporation, and any portion not so used during any year shall be 15 so used during the following year[, failing which such portion shall be16payable to the commissioner of taxation and finance as additional tax]. 17 The commission shall report annually, on or before July first, to the 18 director of the budget, the chair of the senate finance committee and 19 the chair of the assembly ways and means committee the extent to which 20 such corporation used and retained percentages [and breakage] for oper- 21 ations, maintenance, capital improvements, advertising and promotion, 22 administration and general overhead and evaluate the effectiveness and 23 make recommendations with respect to the application of the [reduced] 24 rates of taxation [as provided for in subdivision one of this section in25accomplishing the objectives stated therein]. Such report shall also 26 specify the amount of such retained percentages [and breakage] used for 27 investments not directly related to racing activities and such amounts 28 used to declare dividends or other profit distributions, additions to 29 capital stock, its sale and transfer and additions to retained earnings. 30 Such reports shall also include an analysis of any such agreements or 31 proposals to conduct or otherwise expand wagers authorized under article 32 ten of this chapter and present its conclusions with respect to the 33 conduct of such wagering, the nature of such proposals and agreements, 34 and recommendations to ensure the future maintenance of the intent of 35 this article. 36 3. [Tax rates in event of a failure to maintain] Maintenance of pari- 37 mutuel racing activity. [a. Notwithstanding any other provision of this38section to the contrary, for] For any calendar year commencing on or 39 after January first, nineteen hundred eighty-nine, [in which] a racing 40 corporation in zone two [does] shall not conduct [a minimum number of] 41 fewer pari-mutuel programs and pari-mutuel races at its facilities 42 [equal to at least] than ninety percent of the programs and races so 43 conducted during nineteen hundred eighty-five or during nineteen hundred 44 eighty-six, whichever is less, [in lieu of the tax rates set forth in45subdivision one of this section the applicable pari-mutuel tax rates for46such corporation with respect to on-track pari-mutuel betting pools47during such year shall be increased by one percent of regular, multiple48and exotic betting pools. Notwithstanding the foregoing, no increase49shall be proposed unless such corporation has been afforded notice and50opportunity to be heard. The commission shall promulgate rules and regu-51lations to implement the provisions relating to notice and hearing.52b. The provisions of this subdivision shall not apply to a corporation53for any calendar year for which the commission certifies to the commis-54sioner of taxation and finance:55(i) by December fifteenth of the year immediately preceding such year,56that such corporation has been assigned for such year, from the programsS. 9009--C 50 A. 10009--C 1and races it requested, at least the minimum number of programs and2races prescribed in paragraph a of this subdivision, or, if fewer than3such number were assigned for such year, that the assignment of such4lesser number was for] unless such corporation demonstrates to the 5 satisfaction of the commission good cause due to factors beyond the 6 control of such corporation or because the commission [found] finds that 7 it would be uneconomical or impractical for such corporation to be 8 assigned or conduct the prescribed number[; and9(ii) by January thirty-first of the year immediately subsequent to10such year, that such corporation did conduct such number of programs and11races as were certified pursuant to subparagraph (i) of this paragraph,12or if it failed to conduct such number that such failure was for good13cause due to factors beyond its control or because the commission found14it uneconomical or impractical for such corporation to conduct such a15number.16c. For any calendar year for which the commission does not certify17pursuant to the provisions of subparagraph (i) of paragraph b of this18subdivision with respect to a corporation, the tax imposed by this19section shall be computed by substituting the provisions of paragraph a20of this subdivision for the provisions of subdivision one of this21section and shall pay the tax so computed to the commissioner of taxa-22tion and finance. In such computation and payment, all other provisions23of this section shall apply as if the provisions of this paragraph and24of paragraph a of this subdivision had been incorporated in whole in25subdivision one of this section.26d. For any calendar year for which the commission does not certify27pursuant to the provisions of subparagraph (ii) of paragraph b of this28subdivision with respect to a corporation, the tax required to be paid29hereunder for such year shall be equal to the difference between the tax30imposed pursuant to paragraph a of this subdivision and the tax imposed31pursuant to the provisions of subdivision one of this section less one-32half of such difference in recognition of purses that were required to33be paid, plus an additional amount equal to ten percent of such tax in34the event of a willful failure to comply with the provisions of subpara-35graph (ii) of paragraph b of this subdivision, and such corporation36shall pay the tax so computed to the commissioner of taxation and37finance on or before March fifteenth of the following year. Notwith-38standing the provisions of this subdivision, in the event that upon39appeal from the determination of the commission that the certification40provided in paragraph b of this subdivision will not be made, it is41finally determined that the commission erred in failing to so certify42and that any moneys received by the commissioner of taxation and finance43under paragraph c of this subdivision were paid in error, the same shall44be refunded at the rate of interest of six percent per annum. Payment of45such balance of tax due, or the anticipation of such payment, shall not46affect the determination of purses in the year in which such tax arises47or in the year in which such payment is made nor shall such payment in48any other manner be considered in any statutory or contractual calcu-49lation of purse obligations.50e. Written notice of the certification of the commission pursuant to51the provisions of paragraph b of this subdivision shall be given by the52commission to the applicable corporation by the dates therein specified.53In like manner, written notice that such certification will not be made54shall be given by the commission to the commissioner of taxation and55finance and the applicable corporation by such dates].S. 9009--C 51 A. 10009--C 1 4. The payment of the state tax imposed by this section shall be made 2 to the commissioner of taxation and finance on the last business day of 3 each month and shall cover taxes due for the period from the sixteenth 4 day of the preceding month through the fifteenth day of the current 5 month provided, however, that such payments required to be made on March 6 thirty-first shall include all taxes due and accruing through the last 7 full week of racing in March of the current year or as otherwise deter- 8 mined by the commissioner of taxation and finance, and shall be accompa- 9 nied by a report under oath, showing the total of all such contrib- 10 utions, together with such other information as the commissioner of 11 taxation and finance may require. A penalty of five [per centum] percent 12 and interest at the rate of one [per centum] percent per month from the 13 date the report is required to be filed to the date of payment of the 14 tax shall be payable in case any tax imposed by this section is not paid 15 when due. If the commissioner of taxation and finance determines that 16 any moneys received under this subdivision were paid in error, the 17 commissioner of taxation and finance may cause the same to be refunded 18 without interest out of any moneys collected thereunder, provided an 19 application therefor is filed with the commissioner of taxation and 20 finance within one year from the time the erroneous payment was made. 21 Such taxes, interest and penalties when collected, after the deduction 22 of refunds of taxes erroneously paid, shall be paid by the commissioner 23 of taxation and finance into the general fund of the state treasury. 24 5. No county, city, town, village or other political subdivision of 25 the state may impose, levy or collect a tax on admission fees or tickets 26 of admission, on wagers made by patrons, in the form of purchases of 27 pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on 28 breaks, on dividends or payments made to winning bettors, or on that 29 part of the pari-mutuel pools [or breaks] to be retained by racing 30 corporations under this section, except as otherwise provided in this 31 chapter. 32 § 3. Section 238 of the racing, pari-mutuel wagering and breeding law, 33 as amended by chapter 18 of the laws of 2008, subdivision 1 as amended 34 by chapter 243 of the laws of 2020, paragraph (a) of subdivision 1 as 35 amended by section 9 of subpart B of part FF of chapter 59 of the laws 36 of 2025, and paragraph c of subdivision 2 as amended by chapter 367 of 37 the laws of 2021, is amended to read as follows: 38 § 238. Disposition of pari-mutuel pools of the franchised corporation; 39 percentage payable to state as a tax; authority of counties or certain 40 cities to impose a tax. 1. (a) The franchised corporation authorized 41 under this chapter to conduct pari-mutuel betting at a race meeting or 42 races run thereat shall distribute all sums deposited in any pari-mutuel 43 pool to the holders of winning tickets therein, provided such tickets 44 are presented for payment before April first of the year following the 45 year of their purchase, less an amount that shall be established and 46 retained by such franchised corporation of between twelve to seventeen 47 percent of the total deposits in pools resulting from on-track regular 48 bets, and fourteen to twenty-one percent of the total deposits in pools 49 resulting from on-track multiple bets and fifteen to twenty-five percent 50 of the total deposits in pools resulting from on-track exotic bets and 51 fifteen to thirty-six percent of the total deposits in pools resulting 52 from on-track super exotic bets[, plus the breaks]. The retention rate 53 to be established is subject to the prior approval of the commission. 54 Such rate may not be changed more than once per calendar quarter to be 55 effective on the first day of the calendar quarter. "Exotic bets" and 56 "multiple bets" shall have the meanings set forth in section fiveS. 9009--C 52 A. 10009--C 1 hundred nineteen of this chapter. "Super exotic bets" shall have the 2 meaning set forth in section three hundred one of this chapter. For 3 purposes of this section, a "pick six bet" shall mean a single bet or 4 wager on the outcomes of six races. [The breaks are hereby defined as5the odd cents over any multiple of five for payoffs greater than one6dollar five cents but less than five dollars, over any multiple of ten7for payoffs greater than five dollars but less than twenty-five dollars,8over any multiple of twenty-five for payoffs greater than twenty-five9dollars but less than two hundred fifty dollars, or over any multiple of10fifty for payoffs over two hundred fifty dollars.] Out of the amount so 11 retained there shall be paid by such franchised corporation to the 12 commissioner of taxation and finance, as a reasonable tax by the state 13 for the privilege of conducting pari-mutuel betting on the races run at 14 the race meetings held by such franchised corporation, which tax is 15 hereby levied, in the [following percentages of the total pool for regu-16lar and multiple bets five percent of regular bets and four percent of17multiple bets plus twenty percent of the breaks; for exotic wagers seven18and one-half percent plus twenty percent of the breaks, and for super19exotic bets seven and one-half percent plus fifty percent of the breaks.20For the period April first, two thousand one through December thirty-21first, two thousand twenty-six, such tax on all wagers shall be one and22six-tenths percent, plus, in each such period, twenty percent of the23breaks] applicable percentage set forth in subdivision one of section 24 one hundred thirty-six of this chapter. Payment to the New York state 25 thoroughbred breeding and development fund by such franchised corpo- 26 ration shall be one-half of one percent of total daily on-track pari-mu- 27 tuel pools resulting from regular, multiple and exotic bets and three 28 percent of super exotic bets and for the period April first, two thou- 29 sand one through December thirty-first, two thousand twenty-six, such 30 payment shall be seven-tenths of one percent of regular, multiple and 31 exotic pools. 32 (b) An amount equal to fifty percent of any compensation received by a 33 franchised corporation from simulcasting or from wagering conducted 34 outside the United States or outside New York state and within the 35 United States shall be distributed to purses, except with respect to 36 such compensation received from Connecticut which shall be computed as a 37 percentage of wagering handle in a manner approved by the commission. 38 (c) An amount equal to fifty percent of any compensation received by 39 the franchised corporation from simulcasting or from wagering conducted 40 outside the United States shall be distributed to purses. 41 (d) (i) [The pari-mutuel tax rate authorized by paragraph (a) of this42subdivision shall be effective so long as a franchised corporation noti-43fies the commission by August fifteenth of each year that such pari-mu-44tuel tax rate is effective of its intent to] The franchised corporation 45 shall conduct a race meeting at Aqueduct racetrack during the months of 46 December, January, February, March and April. For purposes of this para- 47 graph such race meeting shall consist of not less than ninety-five days 48 of racing unless otherwise agreed to in writing by the New York 49 Thoroughbred Breeders Inc., the New York thoroughbred horsemen's associ- 50 ation (or such other entity as is certified and approved pursuant to 51 section two hundred twenty-eight of this article) and approved by the 52 commission. Not later than May first of each year [that such pari-mutuel53tax rate is effective], the commission shall determine whether a race 54 meeting at Aqueduct racetrack consisted of the number of days as 55 required by this [paragraph] subparagraph. In determining the number of 56 race days, cancellation of a race day because of an act of God that theS. 9009--C 53 A. 10009--C 1 commission approves or because of weather conditions that are unsafe or 2 hazardous that the commission approves shall not be construed as a fail- 3 ure to conduct a race day. Additionally, cancellation of a race day 4 because of circumstances beyond the control of such franchised corpo- 5 ration for which the commission gives approval shall not be construed as 6 a failure to conduct a race day. [If the commission determines that the7number of days of racing as required by this paragraph have not occurred8then the pari-mutuel tax rate in paragraph (a) of this subdivision shall9revert to the pari-mutuel tax rates in effect prior to January first,10nineteen hundred ninety-five.] 11 (ii) Such franchised corporation shall pay to the commission as a 12 regulatory fee, which fee is hereby levied, six-tenths of one percent of 13 the total daily on-track pari-mutuel pools of such franchised corpo- 14 ration. 15 2. a. Subject to the provisions of this section the payment of such 16 state tax shall be made to the commissioner of taxation and finance on 17 the last business day of each month and shall cover taxes due for the 18 period from the sixteenth day of the preceding month through the 19 fifteenth day of the current month provided, however, that such payments 20 required to be made on March thirty-first shall include all taxes due 21 and accruing through the last full week of racing in March of the 22 current year or as otherwise determined by the commissioner, and shall 23 be accompanied by a report under oath, showing such information as the 24 commissioner may require. A penalty of five [per centum] percent and 25 interest at the rate of one [per centum] percent per month from the date 26 the report is required to be filed to the date of the payment of the tax 27 shall be payable in case any tax imposed by this section is not paid 28 when due. If the commissioner determines that any moneys received by the 29 commissioner under this section were paid in error, the commissioner may 30 cause the same to be refunded without interest out of any moneys 31 collected thereunder, provided an application therefor is filed with the 32 commissioner within one year from the time the erroneous payment was 33 made. Such taxes, interest and penalties when collected, after the 34 deduction of refunds of taxes erroneously paid, shall be paid by the 35 commissioner into the general fund of the state treasury. 36 b. The balance of the retained percentage of such pool [and of the37breaks] shall be held by such franchised corporation for its corporate 38 purposes, except as provided in paragraph c of this subdivision. 39 c. An amount equal to five and ninety-four hundredths percent of the 40 total pools resulting from on-track regular bets and an amount equal to 41 five and ninety-four hundredths percent of the total pools resulting 42 from on-track multiple and exotic bets, and twelve percent of the total 43 pools resulting from super exotic bets shall be used exclusively for 44 purses (including stakes, premiums and prizes) awarded in races 45 conducted by such franchised corporation. Any portion of such percent 46 not so used during any year shall be so used during the following year[,47failing which such portion shall be payable to the commissioner as addi-48tional tax. Such additional tax shall be payable on or before April49first in the year following the year in which such portion is not so50used and the provisions of paragraph a of this subdivision shall be51applicable thereto except as to the time of payment]. 52 3. No county, city, town, village or other political subdivision of 53 the state may impose, levy or collect a tax on admission fees or tickets 54 of admission, on wagers made by patrons in the form of purchases of 55 pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on 56 breaks, on dividends or payments made to winning bettors, or on revenueS. 9009--C 54 A. 10009--C 1 retained by the franchised corporation, except as provided in former 2 article two-B of the general city law, and as otherwise provided in this 3 chapter. 4 [4. Notwithstanding any inconsistent provision of this chapter, when-5ever the franchised corporation operates the Breeder's Cup Meet at one6of its racing facilities, such franchised corporation shall not be7required to pay to the department of taxation and finance pursuant to8this section the pari-mutuel tax on the pari-mutuel pools of such fran-9chised corporation's races during the Breeder's Cup Meet. For the10purposes of this subdivision, the Breeder's Cup Meet shall consist of11three days: the day on which the Breeder's Cup races are conducted, the12day preceding such races and the day subsequent to such races.] 13 § 4. Subdivisions 1, 4 and 5 of section 318 of the racing, pari-mutuel 14 wagering and breeding law, subdivisions 1 and 5 as amended by chapter 15 243 of the laws of 2020, and subdivision 4 as amended by chapter 261 of 16 the laws of 1988, are amended to read as follows: 17 1. Except as otherwise provided by law, every association or corpo- 18 ration authorized under this article to conduct pari-mutuel betting at a 19 harness horse race meeting on races run thereat shall distribute all 20 sums deposited in any pari-mutuel pool to the holders of winning tickets 21 therein, provided such tickets be presented for payment prior to April 22 first of the year following the year of their purchase, less an amount 23 that shall be established and retained by such racing association or 24 corporation of between fourteen and twenty percent of the total deposits 25 in pools resulting from regular bets, less sixteen to twenty-two percent 26 of the total deposits in pools resulting from multiple bets, less twenty 27 to thirty percent of the total deposits in pools resulting from exotic 28 bets, and less twenty to thirty-six percent of the total betting depos- 29 its in pools resulting from super exotic bets[, plus the breaks]. The 30 retention rate to be established is subject to the prior approval of the 31 commission. Such rate may not be changed more than once per calendar 32 quarter to be effective on the first day of the calendar quarter. 33 "Exotic bets" and "multiple bets" shall have the meanings set forth in 34 section five hundred nineteen of this chapter[, "super]. "Super exotic 35 bets" shall have the meaning set forth in subdivision four of section 36 three hundred one of this article [and "the breaks" are hereby defined37as the odd cents over any multiple of ten for regular and multiple bets,38or for exotic bets, over any multiple of fifty, or for super exotic39bets, over any multiple of one hundred calculated on the basis of one40dollar and otherwise payable to a patron, provided however, that effec-41tive after October fifteenth, nineteen hundred ninety-four breaks are42hereby defined as the odd cents over any multiple of five for payoffs43greater than one dollar five cents but less than five dollars, over any44multiple of ten for payoffs greater than five dollars but less than45twenty-five dollars, over any multiple of twenty-five for payoffs great-46er than twenty-five dollars but less than two hundred fifty dollars, or47over any multiple of fifty for payoffs over two hundred fifty dollars]. 48 a. Of the sum so retained from on-track pari-mutuel betting pools, 49 such association or corporation authorized to operate in Westchester or 50 Nassau county: (i) shall pay to the commissioner of taxation and finance 51 as a reasonable tax for the privilege of conducting pari-mutuel betting 52 at races run at race meetings held by such corporation or association, a 53 tax, which is hereby levied, [at the rate of one-half of one percent of54all wagers from total daily on-track pools. Such association or corpo-55ration shall receive credit as a reduction of the daily tax by the state56for the privilege of conducting pari-mutuel betting of amounts equal toS. 9009--C 55 A. 10009--C 1four-tenths percent of total daily pools resulting from the simulcast of2such association's or corporation's races to licensed facilities oper-3ated by regional off-track betting corporations in accordance with4section one thousand eight of this chapter; provided, however, that in5no event shall total daily credit exceed four-tenths percent of the6total daily pool of such association or corporation. An amount equal to7fifty percent of such credit shall be used to increase purses; provided,8however, that] in the applicable percentage set forth in subdivision one 9 of section one hundred thirty-six of this chapter as limited by subdivi- 10 sion two of section one hundred thirty-six of this chapter. Any such 11 association or corporation shall, for any twelve-month period beginning 12 on April first in nineteen hundred ninety and any year thereafter, [each13of the applicable rates set forth above shall be increased by one-half14of one percent on all on-track bets of any such racing association or15corporation that did not] expend an amount equal to at least one-half of 16 one percent of its on-track bets during the immediately preceding calen- 17 dar year for enhancements consisting of capital improvements as defined 18 by section three hundred nineteen of this article, repairs to its phys- 19 ical plant, structures, and equipment used in its racing or wagering 20 operations, [as certified by the commission to the commissioner of taxa-21tion and finance no later than eighty days after the close of such22calendar year,] and five special events at each track in each calendar 23 year, not otherwise conducted in the ordinary course of business, the 24 purpose of which shall be to encourage, attract and promote track 25 attendance and encourage new and continued patronage, which events shall 26 be subject to the approval of the commission for purposes of this subdi- 27 vision. In the determination of the amounts expended for such enhance- 28 ments, the commission shall consider the average of the two immediately 29 preceding twelve-month calendar periods. [Notwithstanding the foregoing30no increase shall be imposed unless such corporation or association has31been afforded notice and opportunity to be heard. The commission shall32promulgate rules and regulations to implement the provisions relating to33notice and hearing.] 34 (ii) except as otherwise provided in this paragraph an amount equal to 35 six and eight-tenths percent of the total pool resulting from on-track 36 regular bets, an amount equal to seven and ninety-five one hundredths 37 percent of the total pool resulting from on-track multiple bets, an 38 amount equal to ten and one-half percent of the total pool resulting 39 from on-track exotic bets, an amount equal to fifteen and one-half 40 percent of the total daily pool resulting from on-track super exotic 41 bets shall be used exclusively for purses, of which an amount of not 42 less than ninety percent shall be used exclusively for purses for over- 43 night races conducted by such association or corporation. Such amounts 44 may be reduced upon an application approved by the commission and an 45 agreement between the licensed harness racing corporation or association 46 and the representative horsemen's organization as a condition to reduce 47 the amounts of retained percentages as provided for in this section. 48 However, of the total amount available for purses, an amount as deter- 49 mined by contractual obligations between an organization representing at 50 least fifty-one percent of the owners and trainers using the facilities 51 of such association or corporation for racing, training or stabling 52 purposes and the association or corporation, shall be used for the 53 administrative purposes of said organization and for such welfare and 54 medical plans for regularly employed backstretch employees principally 55 employed at the facilities of such corporation or association as 56 provided by said organization, provided, however, that eligibility forS. 9009--C 56 A. 10009--C 1 benefits in such plans shall not be conditioned upon membership in such 2 organization by any employee or employer thereof, and any denial of 3 eligibility for benefits in such plans which, upon investigation and 4 review by the commission, is determined to have resulted from a person, 5 firm, association, corporation or organization knowingly aiding in or 6 permitting eligibility for benefits being conditioned upon membership in 7 such organization shall subject such organization to the penalties 8 imposed under sections three hundred ten and three hundred twenty-one of 9 this article but the ratio between the amounts actually expended for 10 such welfare and medical plans and the cost actually incurred in admin- 11 istering such welfare and medical plans for fiscal years of such corpo- 12 ration or association, on or after July twenty-fourth, nineteen hundred 13 eighty-one, shall not be less than the ratio between such amounts actu- 14 ally expended and such costs actually incurred for the fiscal year imme- 15 diately prior to such date. Such organization shall annually on or 16 before July first certify to the commission that it represents at least 17 fifty-one percent of such owners and trainers and provide copies of such 18 certification to such association or corporation. Any other organization 19 claiming to represent at least fifty-one percent of such owners and 20 trainers may file a challenge with the commission within fifteen days of 21 such original certification. The commission shall examine such claim and 22 may undertake studies and conduct hearings to determine the validity of 23 such claim. Within sixty days of receiving such challenge and based 24 upon the findings of such studies and hearings, the commission shall 25 render a decision on the validity of such claim and advise such organ- 26 izations and association or corporation of its determination. Upon 27 receipt of such original certification by such organization, the associ- 28 ation or corporation shall make such payments to said organization and, 29 in the event of a challenge brought to any other organization, such 30 payments shall continue to be made until such time as the commission 31 renders its decision on such challenge; and 32 (iii) the balance of the retained percentage of such pools [and the33balance of the breaks] may be held by such association or corporation 34 for its own use and purposes except as provided in paragraph c of this 35 subdivision and in subdivision four of section three hundred one of this 36 article, provided, however, that the commission shall report annually, 37 on or before July first, to the director of the budget, the chair of the 38 senate finance committee and the chair of the assembly ways and means 39 committee the extent to which such corporations and associations used 40 such retained percentages [and breakage] for operations, maintenance, 41 capital improvements, advertising and promotion, administration and 42 general overhead and evaluate the effectiveness and make recommendations 43 with respect to the application of the [reduced] rates of taxation as 44 provided for in subparagraph (i) of this paragraph in accomplishing the 45 objectives stated therein. Such report shall also specify the amounts of 46 such retained percentages [and breakage] used for investments not 47 directly related to racing activities and such amounts used to declare 48 dividends or other profit distributions, additions to capital stock, its 49 sale and transfer and additions to retained earnings. Such reports shall 50 also include an analysis of any such agreements or proposals to conduct 51 or otherwise expand wagers authorized under article ten of this chapter 52 and present its conclusions with respect to the conduct of such wager- 53 ing, the nature of such proposals and agreements, and recommendations to 54 ensure the future maintenance of the intent of this article and article 55 ten of this chapter.S. 9009--C 57 A. 10009--C 1 b. (i) Of the sums retained by any other licensed harness racing asso- 2 ciation or corporation other than those described in paragraph a of this 3 subdivision, such association or corporation shall pay to the commis- 4 sioner of taxation and finance as a reasonable tax for the privilege of 5 conducting pari-mutuel betting at races run at race meetings held by 6 such corporation or association, a tax, which is hereby levied, in the 7 applicable [tax rates for regular bets shall be six-tenths of one8percent; for multiple bets shall be one and one-tenth percent; for exot-9ic bets shall be five and six-tenths percent and for super exotic bets10shall be seven percent, plus fifty percent of the breaks. Effective11September first, nineteen hundred ninety-four, for all licensed harness12racing associations and corporations that have entered into a contract13with their representative horsemen's association on and after such date,14such tax shall be one-half of one percent of all wagers, plus fifty15percent of the breaks.16Provided, however, that] percentage set forth in subdivision one of 17 section one hundred thirty-six of this chapter, as limited by subdivi- 18 sion two of section one hundred thirty-six of this chapter. Any such 19 racing association or corporation shall for any twelve-month period 20 beginning on April first in nineteen hundred ninety and any year there- 21 after, [each of the applicable rates set forth above shall be increased22by one-quarter of one percent on all on-track bets of any such racing23association or corporation that did not] expend an amount equal to at 24 least one-half of one percent of its on-track bets during the immediate- 25 ly preceding calendar year for enhancements consisting of capital 26 improvements as defined by section three hundred nineteen of this arti- 27 cle, repairs to its physical plant, structures, and equipment used in 28 its racing or wagering operations, [as certified by the commission to29the commissioner of taxation and finance no later than eighty days after30the close of such calendar year, and five special events at each track31in each calendar year,] not otherwise conducted in the ordinary course 32 of business, the purpose of which shall be to encourage, attract and 33 promote track attendance and encourage new and continued patronage, 34 which events shall be subject to the approval of the commission for 35 purposes of this subdivision. In this regard, expenditures by a county 36 agricultural society pursuant to section three hundred nineteen of this 37 article shall be credited to the applicable harness racing association 38 or corporation for this purpose. In the determination of the amounts 39 expended for such enhancements, the commission may consider the imme- 40 diately preceding twelve-month calendar period or the average of the two 41 immediately preceding twelve-month calendar periods. [Notwithstanding42the foregoing no increase shall be imposed unless such corporation or43association has been afforded a notice and opportunity to be heard. The44commission shall promulgate rules and regulations to implement the45provisions relating to notice and hearing.46Such associations or corporations shall receive credit as a reduction47of the daily tax by the state for the privilege of conducting pari-mutu-48el betting of amounts equal to four-tenths percent of total daily pools49resulting from the simulcast of such association's or corporation's50races to licensed facilities operated by regional off-track betting51corporations in accordance with section one thousand eight of this chap-52ter, provided however, that in no event shall the total daily credit53exceed four-tenths percent of the total daily pool of such association54or corporation which tax is hereby levied and shall be paid to the55commissioner of taxation and finance as a reasonable tax imposed by the56state for the privilege of conducting pari-mutuel betting at races runS. 9009--C 58 A. 10009--C 1at race meetings held by such association or corporation.] The commis- 2 sion shall report annually, before July first, to the director of the 3 budget, the chair of the senate finance committee and the chair of the 4 assembly ways and means committee the extent to which such corporations 5 and associations used such retained percentages [and breakage] for oper- 6 ations, maintenance, capital improvements, advertising and promotion, 7 administration and general overhead and evaluate the effectiveness and 8 make recommendations with respect to the application of the [reduced] 9 rates of taxation as provided for in this subparagraph in accomplishing 10 the objectives stated therein. Such report shall also specify the 11 amounts of such retained percentages [and breakage] used for investments 12 not directly related to racing activities and such amounts used to 13 declare dividends or other profit distributions, additions to capital 14 stock, its sale and transfer and additions to retained earnings. Such 15 reports shall also include an analysis of any such agreements or 16 proposals to conduct or otherwise expand wagers authorized under article 17 ten of this chapter and present its conclusions with respect to the 18 conduct of such wagering, the nature of such proposals and agreements, 19 and recommendations to ensure the future maintenance of the intent of 20 this article. 21 (ii) Of the sums retained by such association or corporation, an 22 amount equal to one and three-quarters percent of the total pool result- 23 ing from on-track regular, multiple and exotic bets shall be used exclu- 24 sively for the purpose of increasing purses awarded in overnight races 25 conducted by such association or corporation. Such amounts shall be in 26 addition to purse moneys otherwise provided pursuant to existing 27 contractual obligations. In this regard an amount equal to twelve 28 percent of the total bets in super exotic pools shall be used for purses 29 in lieu of any such contractual obligations that might otherwise apply 30 to purses to be awarded on super exotic bets. Any portion of such amount 31 not so used during any year shall be so used during the following year[,32failing which such portion shall be payable to the commissioner of taxa-33tion and finance as additional tax]. In addition to the amounts 34 required in this paragraph, fifty percent of all additional sums 35 retained, as a result of tax reductions provided in this section after 36 September first, nineteen hundred ninety-four to qualified licensed 37 harness racing associations, shall be used exclusively for purposes of 38 increasing purses awarded in overnight races conducted by such associ- 39 ation or corporation, provided that such association or corporation has 40 entered into a written agreement with its representative horsemen's 41 organization on and after September first, nineteen hundred ninety-four. 42 Notwithstanding anything contained herein to the contrary, in a harness 43 special betting district the amount to be used for purses or the method- 44 ology for calculating the amount to be used for purses may be specified 45 in a written contract between a harness racing association or corpo- 46 ration and its representative horsemen's association. The balance of the 47 retained percentage of such pool may be held by such corporation or 48 association for its own use and purposes. 49 (iii) [Of the amount of the breaks from on-track regular, multiple,50exotic and super exotic bets such association or corporation shall pay51fifty percent to the commissioner of taxation and finance. The balance52of such breaks may be held by such association or corporation for its53own use and purposes.54(iv)] The commission shall as a condition of racing require an associ- 55 ation authorized to operate in areas other than Westchester or Nassau 56 county to withhold one percent of all purses and to pay such sum to theS. 9009--C 59 A. 10009--C 1 horsemen's organization representing the owners and trainers using the 2 facilities of such association [which] that had a contract with the 3 association governing the conditions of racing on January first, nine- 4 teen hundred ninety-two, as determined by the commission. 5 Any other horsemen's organization may apply to the commission to be 6 approved as the qualified organization to receive payment of the one 7 percent of all purses by submitting to the commission proof of both, 8 that (i) such organization represents more than fifty-one percent of all 9 the owners and trainers using the same facilities and (ii) the 10 horsemen's organization previously approved as qualified by the commis- 11 sion does not represent fifty-one percent of all the owners and trainers 12 using the same facilities. If the commission is satisfied that the 13 documentation submitted with the application of any other horsemen's 14 organization is conclusive with respect to subparagraphs (i) and (ii) of 15 this paragraph, the commission may approve the applicant as the quali- 16 fied recipient organization. 17 In the best interests of racing, upon receipt of such an application, 18 the commission may direct the payments to the previously qualified 19 horsemen's organization to continue uninterrupted, or it may direct the 20 payments to be withheld and placed in interest-bearing accounts for a 21 period not to exceed ninety days, during which time the commission shall 22 review and approve or disapprove the application. Funds held in such 23 manner shall be paid to the organization approved by the commission. In 24 no event shall the commission accept more than one such application in 25 any calendar year from the same horsemen's organization. 26 The funds authorized to be paid by the commission are to be used 27 exclusively for the benefit of those horsemen racing in New York state 28 through the administrative purposes of such qualified organization, 29 benevolent activities on behalf of backstretch employees, and for the 30 promotion of equine research. 31 c. Of the sums retained by any harness racing association or corpo- 32 ration, an amount equal to one percent of the total pools resulting from 33 on-track regular, multiple and exotic bets and an amount equal to three 34 percent of the total pools resulting from on-track super exotic bets 35 shall be paid to the agriculture and New York state horse breeding 36 development fund. 37 d. Every harness racing association or corporation shall pay to the 38 commission as a regulatory fee, which fee is hereby levied, six-tenths 39 of one percent of the total daily on-track pari-mutuel pools of such 40 association or corporation. 41 4. Notwithstanding any other provisions of this chapter, there shall 42 be no pari-mutuel tax imposed upon the compensation received by any 43 harness racing association or corporation in consideration for (a) 44 permission to have wagering conducted outside this state on races run by 45 such association or corporation, and (b) the simulcasting outside this 46 state of races run by such association or corporation, except for such 47 permission or such simulcasting as may be granted to an off-track 48 betting operator in the state of Connecticut by a harness racing associ- 49 ation or corporation located in Nassau or Westchester county. Any such 50 association or corporation so simulcasting to an off-track betting oper- 51 ator in the state of Connecticut shall pay to the New York commissioner 52 of taxation and finance a reasonable tax for such permission and privi- 53 lege for such simulcasting, which is hereby levied, at the following 54 rates: one and one-tenth [per centum] percent of total daily regular and 55 multiple bets; three and one-tenth [per centum] percent of total dailyS. 9009--C 60 A. 10009--C 1 exotic bets; and three and one-half [per centum] percent of total daily 2 super exotic bets. 3 5. [Tax rates in event of failure to maintain] Maintenance of pari-mu- 4 tuel racing activity. [a. Notwithstanding any other provision of this5section to the contrary, for] For any calendar year commencing on or 6 after January first, nineteen hundred eighty-nine, [in which] a harness 7 racing association or corporation [does] shall not conduct [a minimum8number of] fewer pari-mutuel programs and pari-mutuel races at its 9 facilities [equal to at least] than ninety percent of the programs and 10 races so conducted during nineteen hundred eighty-five or during nine- 11 teen hundred eighty-six, whichever is less, [in lieu of the tax rates12set forth in subdivision one of this section the applicable pari-mutuel13tax rates for such association or corporation with respect to on-track14pari-mutuel betting pools during such year shall be as follows:15(i) For such an association or corporation authorized to operate in16Westchester or Nassau county: of total daily on-track pools resulting17from regular bets, three and seventy-five hundredths percent of the18first five hundred thousand dollars comprising such pools and five and19twenty-five hundredths percent of the amount in excess of five hundred20thousand dollars, plus fifty percent of the breaks; of total daily21on-track pools resulting from multiple bets, four and seventy-five22hundredths percent of the first three hundred thousand dollars compris-23ing such pools and six and twenty-five hundredths percent of the amount24in excess of three hundred thousand dollars, plus fifty percent of the25breaks; of total daily on-track pools resulting from exotic bets, eight26and seventy-five hundredths percent of the first two hundred thousand27dollars comprising such pools, and ten and twenty-five hundredths28percent of the amount in excess of two hundred thousand dollars, plus29fifty percent of the breaks; and of total daily on-track pools resulting30from super exotic bets, seven percent, plus fifty percent of the breaks;31and32(ii) For any harness racing association or corporation other than one33described in subparagraph (i) of this paragraph: of total daily on-track34pools resulting from regular bets, one and one-half percent, plus fifty35percent of the breaks; of total daily on-track pools resulting from36multiple bets, two percent, plus fifty percent of the breaks; of total37daily on-track pools resulting from exotic bets, six and one-half38percent, plus fifty percent of the breaks; and of total daily on-track39pools resulting from super exotic bets, seven percent, plus fifty40percent of the breaks.41b. The provisions of this subdivision shall not apply to an associ-42ation or corporation for any calendar year for which the commission43certifies to the commissioner of taxation and finance:44(i) by December fifteenth of the year immediately preceding such year,45that such association or corporation has been assigned for such year,46from the programs and races it requested, at least the minimum number of47programs and races prescribed in paragraph a of this subdivision, or, if48fewer than such number were assigned for such year, that the assignment49of such lesser number was for] unless such association or corporation 50 demonstrates to the satisfaction of the commission good cause due to 51 factors beyond the control of such association or corporation or because 52 the commission [found] finds that it would be uneconomical or impracti- 53 cal for such association or corporation to be assigned or conduct the 54 prescribed number[; and55(ii) by January thirty-first of the year immediately subsequent to56such year, that such association or corporation did conduct such numberS. 9009--C 61 A. 10009--C 1of programs and races as were certified pursuant to subparagraph (i) of2this paragraph, or if it failed to conduct such number that such failure3was for good cause due to factors beyond its control or because the4commission found it uneconomical or impractical for such association or5corporation to conduct such a number.6c. For any calendar year for which the commission does not certify7pursuant to the provisions of subparagraph (i) of paragraph b of this8subdivision with respect to an association or corporation, the tax9imposed by this section shall be computed by substituting the provisions10of paragraph a of this subdivision for the provisions of paragraph a or11b, whichever is applicable, of subdivision one of this section and shall12pay the tax so computed to the commissioner of taxation and finance. In13such computation and payment, all other provisions of this section shall14apply as if the provisions of this paragraph and of paragraph a of this15subdivision had been incorporated in whole in paragraph a or b, whichev-16er is applicable, of subdivision one of this section.17d. For any calendar year for which the commission does not certify18pursuant to the provisions of subparagraph (ii) of paragraph b of this19subdivision with respect to an association or corporation, the tax20required to be paid hereunder for such year shall be equal to the21difference between the tax imposed pursuant to the provisions of para-22graph a of this subdivision and the tax imposed pursuant to the23provisions of paragraph a or b, whichever is applicable, of subdivision24one of this section, less one-half of such difference in recognition of25purses that were required to be paid, plus an additional amount equal to26ten percent of such tax in the event of a willful failure to comply with27the provisions of subparagraph (ii) of paragraph b of this subdivision28and such association or corporation shall pay the tax so computed to the29commissioner of taxation and finance on or before March fifteenth of the30following year. Notwithstanding the provisions of this subdivision, in31the event that upon appeal from the determination of the commission that32the certification provided in paragraph b of this subdivision will not33be made, it is finally determined that the commission erred in failing34to so certify and that any moneys received by the commissioner of taxa-35tion and finance under paragraph c of this subdivision were paid in36error, the same shall be refunded at the rate of interest of six percent37per annum. Payment of such tax due, or the anticipation of such payment,38shall not affect the determination of purses in the year in which such39tax arises or in the year in which such payment is made nor shall such40payment in any other manner be considered in any statutory or contractu-41al calculation of purse obligations.42e. Written notice of the certification of the commission pursuant to43the provisions of paragraph b of this subdivision shall be given by the44commission to the applicable association or corporation by the dates45therein specified. In like manner, written notice that such certif-46ication will not be made shall be given by the commission to the commis-47sioner of taxation and finance and the applicable association or corpo-48ration by such dates]. 49 § 5. Subdivision 1 of section 418 of the racing, pari-mutuel wagering 50 and breeding law, as amended by chapter 243 of the laws of 2020, is 51 amended to read as follows: 52 1. Every association or corporation authorized under [sections two53hundred twenty-two through seven] section four hundred five of this 54 [chapter] article to conduct pari-mutuel betting at a quarter horse race 55 meeting on races run thereat shall distribute all sums deposited in any 56 pari-mutuel pool to the holders of winning tickets therein provided suchS. 9009--C 62 A. 10009--C 1 tickets be presented for payment before April first of the year follow- 2 ing the year of their purchase, less seventeen percent of the total 3 deposits in pools resulting from regular on-track bets and less nineteen 4 percent of the total deposits in pools resulting from multiple bets and 5 less twenty-five percent of the total deposits in pools resulting from 6 exotic on-track bets[, plus the breaks]. "Multiple bet" or "multiple 7 wager" shall mean a single bet or wager on two horses, evidenced by a 8 single ticket and representing an interest in a single betting pool. 9 "Exotic bet" or "exotic wager" shall mean a single bet or wager on three 10 or more horses, evidenced by a single ticket and representing an inter- 11 est in a single betting pool. [The breaks for regular bets and multiple12bets are hereby defined as the odd cents over any multiple of ten or for13exotic bets, over any multiple of fifty calculated on the basis of one14dollar and otherwise payable to a patron.] Of the sum so retained [the15applicable tax rates for regular bets shall be three percent; the appli-16cable tax rates for multiple bets shall be three and one-half percent;17the applicable tax rates for exotic bets] there shall be eight percent, 18 plus sixty-five percent of the amount of the breaks from on-track regu- 19 lar, multiple and exotic bets shall be paid by such corporation or asso- 20 ciation to the department of taxation and finance as a reasonable tax by 21 the state for the privilege of conducting pari-mutuel betting on the 22 races run at the quarter horse race meetings held by such corporation or 23 association, which tax is hereby levied, [and the balance of the24retained percentage of such pool and of the breaks may be held by such25corporation or association for its own use and purposes] in the applica- 26 ble percentage set forth in subdivision one of section one hundred thir- 27 ty-six of this chapter. The payment of such state tax shall be made to 28 the department of taxation and finance at such regular intervals as the 29 department of taxation and finance may require, and shall be accompanied 30 by a report under oath showing the total of all such contributions 31 together with such other information as the department of taxation and 32 finance may require. A penalty of five percent and interest at the rate 33 of one percent per month from the date the report is required to be 34 filed to the date of payment of the tax shall be payable in case any tax 35 imposed by this section is not paid when due. If the department of taxa- 36 tion and finance determines that any moneys received under this section 37 were paid in error, it may cause the same to be refunded without inter- 38 est out of any moneys collected thereunder, provided an application 39 therefor is filed with it within one year from the time the erroneous 40 payment was made. Such taxes, interest and penalties when collected, 41 after the deduction of refunds of taxes erroneously paid, shall be paid 42 by the department of taxation and finance into the general fund of the 43 state treasury. [Ten percent of the breaks shall be paid to the New York44state quarter horse breeding and development fund.] 45 § 6. Subdivisions 1, 5, 7 and 8 of section 527 of the racing, pari-mu- 46 tuel wagering and breeding law, as amended by chapter 18 of the laws of 47 2008, the opening paragraph of subdivision 1 and subdivision 5 as 48 amended by chapter 243 of the laws of 2020, are amended to read as 49 follows: 50 1. The disposition of the retained commission from pools resulting 51 from regular, multiple or exotic bets, as the case may be, whether 52 placed on races run within a region or outside a region, conducted by 53 racing corporations, harness racing associations or corporations, quar- 54 ter horse racing associations or corporations or races run outside the 55 state shall be governed by the tables in paragraphs a and b of this 56 subdivision. [The rate denominated "state tax"] There shall [representS. 9009--C 63 A. 10009--C 1the rate of] be paid by each regional corporation conducting off-track 2 betting, as a reasonable tax imposed upon the retained commission for 3 the privilege of conducting off-track pari-mutuel betting, which tax is 4 hereby levied [and], a percentage of all money wagered on live races 5 through such corporation, which shall be payable in the manner set forth 6 in this section and in subdivision one of section one hundred thirty-six 7 of this chapter. Each off-track betting corporation shall pay to the 8 commission as a regulatory fee, which fee is hereby levied, six-tenths 9 of one percent of the total daily pools of such corporation. Each corpo- 10 ration shall also pay twenty percent of the breaks derived from bets on 11 out-of-state harness races and fifty percent of the breaks derived from 12 bets on all other out-of-state races to the agriculture and New York 13 State horse breeding and development fund and to the thoroughbred breed- 14 ing and development fund, the total of such payments to be apportioned 15 fifty percent to each such fund. For the purposes of this section, the 16 New York city, Suffolk, Nassau, and the Catskill regions shall consti- 17 tute a single region and any thoroughbred track located within the Capi- 18 tal District region shall be deemed to be within such single region. A 19 "regional meeting" shall refer to either harness or thoroughbred meet- 20 ings, or both, except that a franchised corporation shall not be a 21 regional track for the purpose of receiving distributions from bets on 22 thoroughbred races conducted by a thoroughbred track in the Catskill 23 region conducting a mixed meeting. With the exception of a harness 24 racing association or corporation first licensed to conduct pari-mutuel 25 wagering at a track located in Tioga, Saratoga or Westchester county 26 after January first, two thousand five, racing corporations first 27 licensed to conduct pari-mutuel racing after January first, nineteen 28 hundred eighty-six or a harness racing association or corporation first 29 licensed to conduct pari-mutuel wagering at a track located in Genesee 30 County after January first, two thousand five, and quarter horse tracks 31 shall not be "regional tracks"; if there is more than one harness track 32 within a region, such tracks shall evenly divide payments made pursuant 33 to the tables in paragraphs a and b of this subdivision when neither 34 track is running. In the event a track elects to reduce its retained 35 percentage from any or all of its pari-mutuel pools, the payments to the 36 track holding the race and the regional track required by paragraphs a 37 and b of this subdivision shall be reduced in proportion to such 38 reduction. Nothing in this section shall be construed to authorize the 39 conduct of off-track betting contrary to the provisions of section five 40 hundred twenty-three of this article. 41 a. Regular and multiple bets: 42 Track 43 holding Regional [State] 44 race track [tax] 45 Pools on races run by: 46 Franchised corporations: 47 in region;..................... 3.50 N/A [.30] 48 out-region, during a regional 49 meeting;....................... 1.00 2.50 [.30] 50 out-region, no regional 51 meeting;....................... 1.75 1.75 [.30] 52 Racing corporations 53 in special 54 betting district:S. 9009--C 64 A. 10009--C 1 in-special betting district;... 3.80 N/A [1.00] 2 out-district, during a regional 3 meeting;....................... 1.00 2.80 [1.00] 4 out-district, no regional 5 meeting;....................... 1.90 1.90 [1.00] 6 Harness racing associations or 7 corporations within Suffolk, 8 Nassau, or Catskill regions: 9 in region;..................... 4.00 N/A [.70] 10 out-region, during a regional 11 meeting;....................... 1.00 3.00 [.70] 12 out-region, no regional 13 meeting;....................... 2.00 2.00 [.70] 14 Harness racing associations or 15 corporations: 16 in-special betting 17 district;...................... 4.00 N/A [.50] 18 out-district, during a 19 regional meeting;.............. 1.00 3.00 [.50] 20 out-district, no regional 21 meeting;....................... 2.00 2.00 [.50] 22 Other harness racing associations 23 or corporations: 24 in region;..................... 4.00 N/A [.50] 25 out-region, during a regional 26 meeting;....................... 1.00 3.00 [.50] 27 out-region, no regional 28 meeting;....................... 2.00 2.00 [.50] 29 Quarter horse racing associations 30 or corporations;............... 3.50 N/A [1.10] 31 Out-of-state tracks:............. 3.50 divided [1.10] 32 pursuant to 33 paragraph 34 g of this 35 subdivision 36 b. Exotic bets: 37 Track 38 holding Regional [State] 39 race track [tax] 40 Pools on races run by: 41 Franchised corporations: 42 in region;..................... 6.50 N/A [1.30] 43 out-region, during a regional 44 meeting;....................... 2.00 4.50 [1.30] 45 out-region, no regional 46 meeting;....................... 3.25 3.25 [1.30] 47 Racing corporations 48 in special 49 betting district: 50 in-special betting districts;.. 6.80 N/A [3.00] 51 out-district, during a regional 52 meeting;....................... 2.00 4.80 [3.00] 53 out-district, no regional 54 meeting;....................... 3.40 3.40 [3.00]S. 9009--C 65 A. 10009--C 1 Harness racing associations or 2 corporations within Suffolk, 3 Nassau, or Catskill 4 regions: 5 in region;..................... 7.00 N/A [2.70] 6 out-region, during a regional 7 meeting;....................... 2.00 5.00 [2.70] 8 out-region, no regional 9 meeting;....................... 3.50 3.50 [2.70] 10 Harness racing associations 11 or corporations: 12 in-special betting 13 district;...................... 7.00 N/A [2.50] 14 out-district, during a 15 regional meeting;.............. 2.00 5.00 [2.50] 16 out-district, no regional 17 meeting;....................... 3.50 3.50 [2.50] 18 Other harness racing associa- 19 tions or corporations: 20 in-region;..................... 7.00 N/A [2.50] 21 out-region, during a 22 regional meeting;.............. 2.00 5.00 [2.50] 23 out-region, no regional 24 meeting;....................... 3.50 3.50 [2.50] 25 Quarter horse racing associa- 26 tions or corporations;......... 6.50 N/A [3.10] 27 Out-of-state tracks:............. 6.50 divided [3.10] 28 pursuant to 29 paragraph 30 g of this 31 subdivision 32 c. Super Exotic Bets: 33 Track 34 holding Regional [State] 35 race track [tax] 36 Pools on races run by: 37 Franchised corporations: 38 in region;..................... 12.00 N/A [3.50] 39 out-region, during a regional 40 meeting;....................... 3.00 10.00 [2.50] 41 out-region, no regional 42 meeting;....................... 6.00 6.00 [3.50] 43 Racing corporations 44 in special 45 betting district: 46 in-special betting districts;.. 12.00 N/A [3.50] 47 out-district, during a regional 48 meeting;....................... 3.00 10.00 [2.50] 49 out-district, no regional 50 meeting;....................... 6.00 6.00 [3.50] 51 Harness racing associations or 52 corporations within Suffolk, 53 Nassau, or Catskill regions: 54 in-region;..................... 12.00 N/A [3.50]S. 9009--C 66 A. 10009--C 1 out-region, during a regional 2 meeting;....................... 3.00 10.00 [2.50] 3 out-region, no regional 4 meeting;....................... 6.00 6.00 [3.50] 5 Harness racing associations 6 or corporations: 7 in-special betting 8 district;...................... 12.00 N/A [3.50] 9 out-district, during a 10 regional meeting;.............. 3.00 10.00 [2.50] 11 out-district, no regional 12 meeting;....................... 6.00 6.00 [3.50] 13 Other harness racing associations 14 or corporations: 15 in-region;..................... 12.00 N/A [3.50] 16 out-region, during a 17 regional meeting;.............. 3.00 10.00 [2.50] 18 out-region, no regional 19 meeting;....................... 6.00 6.00 [3.50] 20 d. For the portion of the Western region included within a thorough- 21 bred special betting district and not within a harness special betting 22 district, when no thoroughbred race meeting is conducted by a racing 23 corporation located within such thoroughbred special district, the 24 distribution of the retained commission to "regional tracks" by such 25 regional corporation derived from wagers placed within such special 26 betting district shall be divided as follows: 27 (i) when a harness corporation located in such district is conducting 28 a meet the full amount to such harness corporation; and when a harness 29 corporation in the region but not located in such district is conducting 30 a meet, forty percent to the thoroughbred racing corporation and sixty 31 percent to the harness corporation conducting a meet; 32 (ii) when no racing is being conducted, forty [per centum] percent to 33 the thoroughbred racing corporation and the balance divided equally 34 between the harness racing corporations located in such region; and 35 (iii) when no racing is being conducted and no more than one harness 36 racing association is licensed during the calendar year to conduct a 37 race meeting, fifty [per centum] percent to the thoroughbred racing 38 corporation and fifty [per centum] percent to the harness racing associ- 39 ation located in such region. 40 e. For the portions of the Capital District, Catskill, Central and 41 Western regions included within a harness racing special betting 42 district, except those portions described in paragraph e of this subdi- 43 vision, the harness track located in such special district shall be the 44 "regional track" for the purposes of the distributions made pursuant to 45 paragraphs a and b of this subdivision. 46 f. For the portions of the Catskill, Central and Western regions 47 included in both a thoroughbred special betting district and a harness 48 special betting district, the distribution of the retained commission to 49 "regional tracks" by such regional corporations derived from wagers 50 placed within such portions of such regions shall be divided as follows: 51 (i) when a harness corporation located in the harness special betting 52 district is conducting a meet and no thoroughbred race meeting is being 53 conducted by a racing corporation located in the thoroughbred special 54 betting district, the full amount to such harness association;S. 9009--C 67 A. 10009--C 1 (ii) when a thoroughbred corporation located in the thoroughbred 2 special betting district is conducting a meet and no harness race meet- 3 ing is being conducted by a harness association located in the harness 4 special betting district, the full amount to such thoroughbred corpo- 5 ration; 6 (iii) when no racing is being conducted the amount to be divided even- 7 ly between the thoroughbred track located in such thoroughbred special 8 betting district and the harness track located in such harness special 9 betting district. 10 g. With respect to the amounts payable to track operators from the 11 retained commission on pools resulting from thoroughbred or harness 12 races outside this state, the regional corporation shall first pay any 13 contractual obligation owed to the out-of-state track operator, or to 14 another state or entity thereof, as the case may be. The balance of such 15 amounts shall be divided as follows: 16 (i) for the betting region composed of the New York city, Suffolk and 17 Nassau regions and the portion of the Catskill region outside a special 18 betting district: when both harness and thoroughbred meets are in 19 progress in such betting region, the balance to the association or 20 corporation holding the same type of meet as the out-of-state race; when 21 only a harness meet is in progress in such betting region, the balance 22 to the harness track operator; when only a thoroughbred meet is in 23 progress in such betting region, the balance to the thoroughbred track 24 operator; when no meet is in progress, fifty [per centum] percent of the 25 balance to the franchised corporation and the remainder divided among 26 harness racing corporations or associations within such betting region; 27 (ii) for the Capital District region and the portion of the Western 28 region outside a special betting district: when a harness meet is in 29 progress in such region and a thoroughbred meet is in progress outside a 30 special betting district, the balance to whichever operator is conduct- 31 ing the same type of meet as the out-of-state race; when no harness meet 32 is in progress, the balance to the racing association outside a special 33 betting district; and when no meet is in progress within such region and 34 no thoroughbred meet is in progress outside a special betting district, 35 fifty [per centum] percent of the balance to the racing association 36 outside a special betting district and the remainder to the licensed 37 harness racing corporations or associations within such region; 38 (iii) for the portion of the Western region within a thoroughbred 39 special betting district but not within a harness special betting 40 district: when a harness meet and a thoroughbred meet are in progress 41 within such region and the district, the balance to the association or 42 corporation conducting the same type of meet as the out-of-state or 43 out-of-region race; when a harness meet is in progress in such region 44 but no thoroughbred meet is in progress in the special betting district, 45 the balance to the harness track operator within such region; when only 46 a thoroughbred meet is in progress in such betting region, the balance 47 to the thoroughbred track operator; and when no meet is in progress 48 within such region the balance is divided, forty [per centum] percent to 49 the thoroughbred racing corporation within the district and the remain- 50 der divided between the harness racing associations or corporations 51 within the region provided, however, that if no more than one harness 52 racing association or corporation is licensed to conduct a race meeting, 53 fifty [per centum] percent to the thoroughbred racing corporation within 54 the district and fifty [per centum] percent to the licensed harness 55 racing association within the region;S. 9009--C 68 A. 10009--C 1 (iv) for the portions of the Capital District, Catskill, Central and 2 Western regions included in a harness special betting district: when a 3 harness meeting is in progress in such harness special betting district 4 and a thoroughbred meeting is in progress outside the thoroughbred 5 special betting district, the balance to the association or corporation 6 holding the same kind of race; when no harness meet is in progress, the 7 balance to the racing corporation holding a thoroughbred race meeting 8 outside the thoroughbred special betting district; when a harness meet- 9 ing is in progress in the harness special betting district and no 10 thoroughbred meeting is in progress outside the thoroughbred special 11 betting district, the balance to the harness track operating in such 12 harness special betting district; when no harness meet is being held 13 within such harness special betting district and no thoroughbred meet is 14 being held outside the thoroughbred special betting district, fifty [per15centum] percent of such amount to the harness racing corporation in such 16 harness special betting district and fifty [per centum] percent to the 17 thoroughbred track operator outside the thoroughbred special betting 18 district; 19 (v) for the portions of the Catskill and Western regions included in 20 both a thoroughbred special betting district and a harness special 21 betting district: when a harness meet and a thoroughbred meet are in 22 progress within both such districts the balance to the association or 23 corporation conducting the same type of meet as the out-of-state race; 24 when a harness meet is in progress but no thoroughbred meet the balance 25 to the harness track operator within such district; when a thoroughbred 26 meet is in progress but no harness meet the balance to the thoroughbred 27 track operator in the district; and when no meet is in progress the 28 balance to be divided evenly between the harness track operator in the 29 harness special betting district and the thoroughbred operator located 30 within the thoroughbred special betting district; 31 (vi) notwithstanding any contrary provision contained in this section, 32 the portion of retained commissions from off-track pools distributable 33 to the track holding the race shall be for regular and multiple bets: 34 five and three-quarters [per centum] percent and for exotic bets: seven 35 and three-quarters [per centum] percent for the three races commonly 36 referred to as the Triple Crown consisting of the Kentucky Derby, the 37 Preakness and the Belmont Stakes, run respectively at Churchill Downs, 38 Kentucky, at Pimlico, Maryland and at Belmont Park, New York; addi- 39 tionally the same commissions shall apply to the series of races known 40 as the Breeders' Cup and the portion distributable from retained commis- 41 sions shall be paid to the Breeders' Cup, ltd. irrespective of whether 42 the races are held at a track within or without the state; provided, 43 however, that as a condition precedent to the obligation of a regional 44 corporation to make the foregoing distributions as required in this 45 subparagraph with respect to wagers on the Belmont Stakes, such regional 46 corporation shall have accepted wagers on at least one or both of the 47 immediately preceding Kentucky Derby and Preakness races; and provided 48 further that the distributable portion of such retained commissions with 49 respect to the Belmont Stakes shall be deemed to include the additional 50 amounts payable pursuant to the provisions of paragraph b of subdivision 51 three of this section; and provided further, notwithstanding the forego- 52 ing provisions of this subparagraph, that of the retained commissions 53 resulting from off-track wagers placed in a special betting district on 54 the Belmont Stakes, the track holding the race shall receive one per 55 centum from regular and multiple bets and two [per centum] percent from 56 exotic bets, and the thoroughbred track conducting racing within suchS. 9009--C 69 A. 10009--C 1 district shall receive four and three-quarters [per centum] percent from 2 regular and multiple bets, and five and three-quarters [per centum] 3 percent from exotic bets. 4 5. a. One percent of daily pools derived from bets on harness races 5 shall be paid to the agriculture and New York state breeding and devel- 6 opment fund except that for super exotic betting pools such amount shall 7 be three percent of such bets. 8 b. An amount equal to one-half of one percent of total daily off-track 9 pari-mutuel pools resulting from regular, multiple and exotic bets and 10 three percent of super exotic bets on thoroughbred or steeplechase races 11 shall be paid to the New York state thoroughbred breeding and develop- 12 ment fund. 13 c. From the total breaks retained by a regional corporation, an amount 14 equal to ten percent of the breaks derived from bets on out-of-state 15 quarter horse races shall be paid to the New York state quarter horse 16 breeding and development fund. 17 7. In addition to any other amount required by this section, of the 18 portion of commissions retained by a regional corporation, an amount 19 equal to one [per centum] percent of multiple pools derived from wagers 20 on races conducted by a thoroughbred racing corporation, licensed by the 21 board, other than a franchised corporation, shall be paid to such 22 thoroughbred racing corporation and held by such corporation for its own 23 use and purposes, except that an amount equal to one-half [per centum] 24 percent shall be used exclusively for the purpose of increasing purses, 25 including stakes, premiums and prizes, awarded to horses in races 26 conducted by such corporation. Any portion of said amount not so used 27 during any year shall be used during the following year, failing which 28 it shall be returned to the regional corporation on or before April 29 first in the year following the year in which it is not so used to be 30 distributed to the participating local governments. 31 8. From the nineteen [per centum] percent of the total deposits in 32 pools resulting from multiple bets on thoroughbred races outside this 33 state, two [per centum] percent shall be paid to a franchised corpo- 34 ration to be used exclusively for the purpose of increasing purses, 35 including stakes, premiums and prizes. Any portion of said amount not so 36 used during any year shall be used during the following year, failing 37 which it shall be returned to the regional corporation on or before 38 April first in the year following the year in which it is not so used to 39 be distributed to the participating local governments. Notwithstanding 40 the provisions of section fifteen of chapter three hundred sixty-three 41 of the laws of nineteen hundred eighty-four, the provisions of this 42 subdivision shall not expire. 43 § 7. Subdivisions 1, 3, 3-a and 6 of section 532 of the racing, pari- 44 mutuel wagering and breeding law, subdivisions 1 and 3 as amended by 45 chapter 243 of the laws of 2020, subparagraph (vi) of paragraph b of 46 subdivision 3 as amended by chapter 526 of the laws of 2022, and subdi- 47 visions 3-a and 6 as added by chapter 346 of the laws of 1990, are 48 amended to read as follows: 49 1. Notwithstanding any other provision of law, each regional off-track 50 betting corporation, or off-track betting operator, including the New 51 York city off-track betting corporation, conducting off-track betting 52 shall impose a surcharge of five percent on the portion of pari-mutuel 53 wagering pools distributable to persons having placed bets at off-track 54 betting facilities located within such region. The revenues derived from 55 such surcharge[, plus the breaks,] shall be held separate and apart from 56 any amounts otherwise authorized to be retained from pari-mutuel pools.S. 9009--C 70 A. 10009--C 1 Such surcharge is hereby levied subject to the conditions set forth in 2 this subdivision and article ten of this chapter. 3 3. The revenues received from any surcharge imposed by subdivision one 4 of this section[, plus the breaks,] shall be distributed monthly, as 5 follows: 6 a. fifty percent to such city, or to the counties and cities entitled 7 to receive revenues from the regional corporation pursuant to section 8 five hundred sixteen of this chapter and in the same proportion as 9 provided therein, or to an off-track betting operator; and 10 b. the balance as follows: 11 (i) where the track conducting the race on which the bet was placed is 12 located within a city with a population in excess of one hundred thou- 13 sand, to such city; 14 (ii) where the track conducting the race on which the bet was placed 15 is not located within a city with a population in excess of one hundred 16 thousand, to the county in which such track is located; 17 (iii) where the track conducting the race on which the bet was placed 18 is located partially within a city with a population in excess of one 19 million and partially within a county, twenty-five percent of such 20 balance to the city and the remainder to the county; 21 (iv) where the track conducting the race on which the bet was placed 22 is located outside the state, in the same manner as described in para- 23 graph a of this subdivision; 24 (v) where the track conducting the race is located in a thoroughbred 25 special betting district and is simulcasting pursuant to section one 26 thousand eight of this chapter outside such special betting district, 27 ninety percent to the off-track betting operator and ten percent to the 28 county in which such track is located; and 29 (vi) for the period of September first, two thousand twenty-two until 30 August thirty-first, two thousand twenty-seven and where the track 31 conducting the race on which the bet was placed is a harness track 32 located in the county of Erie, to such track. 33 3-a. Such five [per centum] percent surcharge herein provided is here- 34 by increased by a supplemental one [per centum] percent surcharge on the 35 portion of pari-mutuel wagering pools of multiple, exotic and super 36 exotic bets distributable to persons having placed bets at off-track 37 betting facilities to be distributed in accordance with the provisions 38 of section five hundred nine-a or six hundred nine-a of this chapter, 39 whichever may be applicable to the corporation with which such bets 40 originated. 41 6. Notwithstanding any provision herein or in section one thousand 42 nine of this chapter to the contrary where the track conducting the race 43 is a thoroughbred track located in the Catskill region conducting a 44 mixed meeting such surcharge shall be collected on all wagers placed in 45 branch offices or simulcast theaters of a regional off-track betting 46 corporation. The revenues received from any such surcharge imposed in 47 accordance with this section [plus the breaks] shall be distributed 48 monthly as follows: 49 a. one-fifth to the county in which such track is located; 50 b. three-fifths to a regional track located in the region in which the 51 bet is placed in accordance with provisions of section five hundred 52 twenty-seven of this article, one-half thereof to be used for purses at 53 such regional track, except that in any region containing two or more 54 regional tracks such tracks shall be entitled to an equal share; 55 c. one-fifth to be retained by the off-track betting operator with 56 whom such bet originated as operating revenues.S. 9009--C 71 A. 10009--C 1 § 8. Paragraph c of subdivision 1 of section 904 of the racing, pari- 2 mutuel wagering and breeding law, as amended by chapter 243 of the laws 3 of 2020, is amended to read as follows: 4 c. Every association and corporation shall distribute all sums depos- 5 ited in any pari-mutuel pool to the holders of winning tickets therein, 6 providing such tickets be presented for payment before April first of 7 the year following the year of their purchase, less an amount that it 8 shall retain at the same rate established by the sending track [plus the9breaks]. 10 § 9. Paragraph c of subdivision 2 and subdivision 4 of section 905 of 11 the racing, pari-mutuel wagering and breeding law, paragraph c of subdi- 12 vision 2 as amended by chapter 243 of the laws of 2020, subdivision 4 as 13 amended by section 15 of part F3 of chapter 62 of the laws of 2003 and 14 such section as renumbered by chapter 18 of the laws of 2008, are 15 amended to read as follows: 16 c. If different retention or breakage rates than those prevailing at 17 the site of the New York interface are prescribed by the laws governing 18 such out-of-state or foreign betting operator, and the commission is 19 satisfied that it would not be contrary to the public interest to accept 20 such wagers for combination with New York wagers, calculations of the 21 current odds and final pay-off prices shall be made as follows: 22 (i) All New York state and out-of-state and foreign wagers of the same 23 type shall be combined into single pools for calculation. 24 (ii) As many tentative payout prices as there are different retention 25 and breakage rates applicable (including the prevailing New York 26 retention rate) shall be calculated on the basis of returning the appro- 27 priate rate of return, less breaks after imposition of each such rate of 28 retention and breaks. 29 (iii) To each such out-of-state or foreign operator shall be allocated 30 an amount sufficient for it to pay the appropriate pay-off to holders of 31 winning wagers placed with it together with the applicable retention 32 amount on its total wagers. 33 (iv) To each New York operator shall be allocated an amount sufficient 34 for it to pay the appropriate pay-off to holders of winning wagers 35 placed with it together with the applicable New York retention amount on 36 its total wagers. 37 (v) The total amount of the combined pool less the combined total of 38 all allocations as determined in subparagraphs (iii) and (iv) of this 39 paragraph shall be credited to a special breakage account. The amount in 40 such account giving appropriate weight to rates established for breakage 41 shall be allocated as breaks among all operators in the combined pool in 42 accordance with the rules and regulations of the commission. Should a 43 minus pool eventuate in which the total combined pool is insufficient to 44 reimburse each operator for the allocation due to it then the allocation 45 due to each such operator shall be reduced as may be appropriate and 46 such operator shall be responsible for satisfying its liability from its 47 own operating capital. 48 4. In those instances in which the retention rates of the out-of-state 49 track are different from the retention rates authorized in this section, 50 distribution to each of the entities entitled to receive payment under 51 section five hundred twenty-seven or article ten of this chapter after 52 payment of state taxes and regulatory fees shall be adjusted proportion- 53 ately in an appropriate manner to account for higher or lower retention 54 rates. For purposes of determining payment on out-of-state wagers the 55 retention rate shall be the amount sufficient to pay holders of winningS. 9009--C 72 A. 10009--C 1 wagers plus any payments required to be made to the out-of-state track 2 which exceeds two [per centum] percent of handle. 3 § 10. Paragraph a of subdivision 3 of section 1007 of the racing, 4 pari-mutuel wagering and breeding law, as amended by chapter 243 of the 5 laws of 2020, is amended to read as follows: 6 a. Of the sums retained by the receiving track from simulcast pools 7 the pari-mutuel tax shall be levied at the [lower of the pari-mutuel8tax] rate [in effect on December thirty-first, nineteen hundred ninety-9three at the receiving track, plus ten percent of the breaks or the10following rates: two percent of simulcast pools generated by regular11wagers, two and one-half percent of simulcast pools generated by multi-12ple wagers, and seven percent of simulcast pools generated by exotic and13super exotic wagers, plus ten percent of the breaks] set forth in subdi- 14 vision one of section one hundred thirty-six of this chapter. 15 § 11. Paragraph a of subdivision 4 of section 1009 of the racing, 16 pari-mutuel wagering and breeding law, as amended by chapter 243 of the 17 laws of 2020, is amended to read as follows: 18 a. Of the sums retained by the operator as provided in this subdivi- 19 sion, the pari-mutuel tax shall be levied at the [following rates plus20twenty percent of the breaks: from wagers on thoroughbred races, eight-21tenths of one percent of pools generated from regular wagers; one and22three-tenths percent of pools generated from multiple wagers; two and23eight-tenths percent of pools generated from exotic wagers; and three24and one-half percent of pools generated from super exotic wagers; and25from wagers on harness races, one-half of one percent of pools generated26from regular wagers; one percent of pools generated from multiple27wagers; two and one-half percent of pools generated from exotic wagers28and three percent of pools generated from super exotic wagers] rate set 29 forth in subdivision one of section one hundred thirty-six of this chap- 30 ter. 31 § 12. Paragraph i of subdivision 1 of section 1014 of the racing, 32 pari-mutuel wagering and breeding law, as amended by chapter 243 of the 33 laws of 2020, is amended to read as follows: 34 i. Any facility authorized to accept wagers on out-of-state tracks 35 shall distribute all sums deposited in any pari-mutuel pool to the hold- 36 ers of winning tickets therein, provided such tickets are presented for 37 payment prior to April first of the year following the year of their 38 purchase less eighteen percent of the total deposits in pools resulting 39 from regular bets, less twenty-one percent of the total deposits in 40 pools resulting from multiple bets, less twenty-six percent of the total 41 deposits in pools resulting from exotic bets, less thirty-six percent of 42 the total deposits in pools resulting from super exotic bets [plus the43breaks as defined in section two hundred thirty-six of this chapter] 44 except that the retention rates and breaks shall be as prescribed by 45 another state or country if such wagers are combined with those in the 46 other state or country pursuant to section nine hundred five of this 47 chapter. 48 (1) Of the sum so retained, the applicable tax rate shall be [one and49one-half percent of all such wagers plus fifty percent of the breaks;50provided, however, fifty percent of the breaks accruing from off-track51betting corporations licensed in accordance with section one thousand52eight of this article and from simulcast theaters licensed in accordance53with section one thousand nine of this article, shall be paid to the54agriculture and New York state horse breeding and development fund and55to the thoroughbred breeding and development fund, the total of such56payments to be apportioned fifty percent to each such fund] rate setS. 9009--C 73 A. 10009--C 1 forth in subdivision one of section one hundred thirty-six of this chap- 2 ter. 3 (2) Of the sums so retained, one-half of one percent of all wagers 4 shall be paid to the New York state thoroughbred breeding and develop- 5 ment fund, except that of the sums so retained on such wagers at 6 licensed harness tracks, one-half of one percent shall be paid to the 7 agricultural and New York State horse breeding and development fund. 8 (3) Of the sum so retained, two percent of all wagers shall be paid to 9 a franchised corporation to be used exclusively for the purpose of 10 increasing purses, including stakes, premiums and prizes, provided 11 further that such amount shall not exceed the amount paid to such non- 12 profit racing association in nineteen hundred ninety-three from wagers 13 placed on out-of-state tracks on a day when no racing was being 14 conducted by the non-profit racing association and a racing program was 15 being conducted by a thoroughbred racing corporation located in the 16 state. The excess, if any, shall be paid to a thoroughbred racing corpo- 17 ration located in the state until August thirty-first, nineteen hundred 18 ninety-five and on and after July nineteen, nineteen hundred ninety-six 19 to be used exclusively for the purpose of increasing purses, including 20 stakes, premiums and prizes. 21 (4) Any thoroughbred racing corporation or harness racing association 22 or corporation or off-track betting corporation authorized pursuant to 23 this section shall pay to the commission as a regulatory fee, which fee 24 is hereby levied, six-tenths of one percent of all wagering pools. 25 § 13. The opening paragraph of subdivision 3 of section 1015 of the 26 racing, pari-mutuel wagering and breeding law, as amended by chapter 243 27 of the laws of 2020, is amended to read as follows: 28 Any facility authorized to accept wagers on out-of-state tracks shall 29 distribute all sums deposited in any pari-mutuel pool to the holders of 30 any tickets therein provided such tickets are presented for payment 31 prior to April first of the year following the year of their purchase 32 less nineteen percent of total deposits in pools resulting from regular 33 bets, less twenty-one percent of total deposits of pools resulting from 34 multiple bets, less twenty-seven percent of total deposits of pools 35 resulting from exotic bets, less thirty-six percent of total deposits of 36 pools resulting from super exotic bets [plus the breaks as defined in37section three hundred eighteen of this chapter] except that the 38 retention rates and breaks shall be as prescribed by another state or 39 country if such wagers are combined with those in the other state or 40 country pursuant to section nine hundred five of this chapter. 41 § 14. Paragraph a, the opening paragraph of paragraph b, subparagraph 42 1 of paragraph b, clauses (A) and (B) of subparagraph 3 of paragraph b, 43 clauses (A) and (B) of subparagraph 4 of paragraph b, clauses (A), (B) 44 and (D) of subparagraph 5 of paragraph b, and clauses (A) and (B) of 45 subparagraph 6 of paragraph b of subdivision 1 of section 1016 of the 46 racing, pari-mutuel wagering and breeding law, paragraph a, clauses (A) 47 and (B) of subparagraph 3 of paragraph b, clauses (A) and (B) of subpar- 48 agraph 4 of paragraph b, clauses (A), (B) and (D) of subparagraph 5 of 49 paragraph b, clauses (A) and (B) of subparagraph 6 of paragraph b as 50 amended by chapter 18 of the laws of 2008, the opening paragraph and 51 subparagraph 1 of paragraph b as amended by chapter 243 of the laws of 52 2020, are amended to read as follows: 53 a. Each off-track betting branch office accepting wagers on an out-of- 54 state track shall accept wagers on races run at all in-state thorough- 55 bred tracks [which] that are conducting racing programs and every simul- 56 casting facility licensed in accordance with sections one thousand eightS. 9009--C 74 A. 10009--C 1 and one thousand nine of this article [which] that is accepting wagers 2 and displaying the simulcast signal from an out-of-state track shall 3 similarly accept wagers and display the signal from all in-state 4 thoroughbred tracks conducting racing programs. 5 Any facility authorized to accept wagers on out-of-state tracks shall 6 distribute all sums deposited in any pari-mutuel pool to the holders of 7 winning tickets therein, provided such tickets are presented for payment 8 prior to April first of the year following the year of their purchase 9 less eighteen percent of the total deposits in pools resulting from 10 regular bets, less twenty-one percent of the total deposits in pools 11 resulting from multiple bets, less twenty-six percent of the total 12 deposits in pools resulting from exotic bets, and less twenty-seven 13 percent of the total deposits in pools resulting from super exotic bets, 14 [plus the breaks as defined in section two hundred thirty-six of this15chapter] may be required by another jurisdiction except that the 16 retention rates and breaks shall be as prescribed by another state or 17 country if such wagers are combined with those in the other state or 18 country pursuant to section nine hundred five of this chapter. 19 (1) Of the sums so retained, the applicable tax rates shall be as 20 [governed by clauses (A) and (B) of subparagraphs three, four, five and21six of this paragraph plus fifty percent of the breaks; provided, howev-22er, fifty percent of the breaks accruing from off-track betting corpo-23rations licensed in accordance with section one thousand eight of this24article and from simulcast theaters licensed in accordance with section25one thousand nine of this article, shall be paid to the agriculture and26New York State horse breeding and development fund and to the thorough-27bred breeding and development fund, the total of such payments to be28apportioned fifty percent to each such fund] as set forth in subdivision 29 one of section one hundred thirty-six of this chapter. 30 (A) Of the sums so retained on days when a franchised corporation is 31 not conducting a race meeting within the state and a thoroughbred racing 32 corporation is conducting a race meeting 33 Super- 34 Regular Multiple Exotic exotic 35 bets bets bets bets 36 [State Tax 1.50 1.50 1.50 1.50] 37 Non-franchised 38 Thoroughbred Racing 39 corporation 0.50 0.50 0.50 0.50 40 Non-franchised 41 Thoroughbred Racing 42 corporation payments to purses 1.50 2.00 1.50 2.00 43 Franchised corporation 0.50 0.50 0.50 0.50 44 Franchised corporation 45 payments to purses 2.00 2.00 2.50 4.00 46 (B) Of the sums so retained on days when a franchised corporation is 47 conducting a race meeting within the state 48 Super- 49 Regular Multiple Exotic exotic 50 bets bets bets betsS. 9009--C 75 A. 10009--C 1 [State Tax 1.00 1.00 1.00 1.00] 2 Non-franchised 3 Thoroughbred Racing 4 corporation 0.50 0.50 0.50 0.00 5 Non-franchised 6 Thoroughbred Racing 7 corporation payments to purses 0.50 0.50 0.50 0.50 8 Franchised corporation 2.00 1.50 1.50 2.00 9 Franchised corporation 10 payments to purses 2.00 3.00 3.00 5.00 11 (A) Of the sums so retained on days when a franchised corporation is 12 not conducting a race meeting within the state and a thoroughbred racing 13 corporation is conducting a race meeting 14 Super- 15 Regular Multiple Exotic exotic 16 bets bets bets bets 17 [State Tax 1.00 1.00 1.00 1.00] 18 Non-franchised 19 Thoroughbred Racing 2.00 2.00 2.00 2.50 20 corporation payments to purses 21 Franchised corporation 1.00 1.00 1.00 1.00 22 Franchised corporation 23 payments to purses 2.00 2.00 2.50 4.00 24 (B) Of the sums so retained on days when a franchised corporation is 25 conducting a race meeting within the state 26 Super- 27 Regular Multiple Exotic exotic 28 bets bets bets bets 29 [State Tax 0.50 0.50 0.50 0.50] 30 Non-franchised 31 Thoroughbred racing 0.50 0.25 0.50 0.50 32 corporation 33 Non-franchised 34 Thoroughbred racing 0.50 0.25 0.50 0.50 35 corporation payments to purses 36 Franchised corporation 2.25 2.25 2.00 2.50 37 Franchised corporation 38 payments to purses 2.25 3.25 3.00 4.50S. 9009--C 76 A. 10009--C 1 (A) Of the sums so retained on days when a franchised corporation is 2 not conducting a race meeting within the state and a thoroughbred racing 3 corporation is conducting a race meeting 4 Super- 5 Regular Multiple Exotic exotic 6 bets bets bets bets 7 [State Tax 1.50 1.50 1.50 1.50] 8 Non-franchised 9 Thoroughbred racing 0.25 0.25 0.25 0.50 10 corporation 11 Non-franchised 12 Thoroughbred racing 0.75 1.00 0.75 1.00 13 corporation payments to purses 14 Franchised corporation 0.25 0.25 0.25 0.25 15 Franchised corporation 16 payments to purses 1.00 1.00 2.25 2.00 17 (B) Of the sums so retained on days when a franchised corporation is 18 conducting a race meeting within the state 19 Super- 20 Regular Multiple Exotic exotic 21 bets bets bets bets 22 [State Tax 1.00 1.00 1.00 1.00] 23 Non-franchised 24 Thoroughbred racing 25 corporation 0.25 0.25 0.25 0.25 26 Non-franchised 27 Thoroughbred racing 28 corporation payments to purses 0.25 0.25 0.25 0.25 29 Franchised corporation 1.00 0.75 0.75 1.00 30 Franchised corporation 31 payments to purses 1.00 1.50 1.50 2.50 32 (D) For wagers placed at a thoroughbred racing corporation the state 33 tax shall be the amounts specified in [clauses (A) and (B) of this34subparagraph] subdivision one of section one hundred thirty-six of this 35 chapter and retention thereafter shall be identical to sums retained for 36 each type of on-track wager. 37 (A) Of the sums so retained on days when a franchised corporation is 38 not conducting a race meeting within the state and a thoroughbred racing 39 corporation is conducting a race meeting 40 Super- 41 Regular Multiple Exotic exotic 42 bets bets bets bets 43 [State Tax 1.00 1.00 1.00 1.00]S. 9009--C 77 A. 10009--C 1 Non-franchised 2 Thoroughbred Racing 3 corporation payments to purses 1.00 1.00 1.00 1.25 4 Franchised corporation 0.50 0.50 0.50 0.50 5 Franchised corporation 6 payments to purses 1.00 1.00 1.25 2.00 7 (B) Of the sums so retained on days when a franchised corporation is 8 conducting a race meeting within the state 9 Super- 10 Regular Multiple Exotic exotic 11 bets bets bets bets 12 [State Tax 0.50 0.50 0.50 0.50] 13 Non-franchised 14 Thoroughbred Racing 15 corporation 0.25 0.25 0.25 0.25 16 Non-franchised 17 Thoroughbred Racing 18 corporation payments to purses 0.25 0.25 0.25 0.25 19 Franchised corporation 1.25 1.25 1.00 1.25 20 Franchised corporation 21 payments to purses 1.25 2.00 1.50 2.25 22 § 15. Subdivision 1 of section 1018 of the racing, pari-mutuel wager- 23 ing and breeding law, as amended by chapter 18 of the laws of 2008, is 24 amended to read as follows: 25 1. Of the sums so retained, the applicable tax rates shall be as set 26 forth in [this paragraph plus fifty percent of the breaks; provided,27however, fifty percent of the breaks accruing from an off-track betting28corporation licensed in accordance with section one thousand eight of29this article and from simulcast theatres licensed in accordance with30section one thousand nine of this article, shall be paid to the agricul-31ture and New York state horse breeding and development fund] subdivision 32 one of section one hundred thirty-six of this chapter. 33 § 16. This act shall take effect immediately. 34 PART X 35 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 36 wagering and breeding law, as amended by section 1 of part HH of chapter 37 59 of the laws of 2025, is amended to read as follows: 38 2. a. Notwithstanding any other provision of law or regulation to the 39 contrary, from April nineteenth, two thousand twenty-one to March thir- 40 ty-first, two thousand twenty-two, twenty-three percent of the funds, 41 not to exceed two and one-half million dollars, in the Catskill off- 42 track betting corporation's capital acquisition fund and twenty-three 43 percent of the funds, not to exceed four hundred forty thousand dollars, 44 in the Capital off-track betting corporation's capital acquisition fund 45 established pursuant to this section shall also be available to suchS. 9009--C 78 A. 10009--C 1 off-track betting corporation for the purposes of statutory obligations, 2 payroll, and expenditures necessary to accept authorized wagers. 3 b. Notwithstanding any other provision of law or regulation to the 4 contrary, from April first, two thousand twenty-two to March thirty- 5 first, two thousand twenty-three, twenty-three percent of the funds, not 6 to exceed two and one-half million dollars, in the Catskill off-track 7 betting corporation's capital acquisition fund established pursuant to 8 this section, and twenty-three percent of the funds, not to exceed four 9 hundred forty thousand dollars, in the Capital off-track betting corpo- 10 ration's capital acquisition fund established pursuant to this section, 11 shall be available to such off-track betting corporations for the 12 purposes of statutory obligations, payroll, and expenditures necessary 13 to accept authorized wagers. 14 c. Notwithstanding any other provision of law or regulation to the 15 contrary, from April first, two thousand twenty-three to March thirty- 16 first, two thousand twenty-four, twenty-three percent of the funds, not 17 to exceed two and one-half million dollars, in the Catskill off-track 18 betting corporation's capital acquisition fund established pursuant to 19 this section, and one million dollars in the Capital off-track betting 20 corporation's capital acquisition fund established pursuant to this 21 section, shall be available to such off-track betting corporation for 22 the purposes of expenditures necessary to accept authorized wagers; past 23 due statutory obligations to New York licensed or franchised racing 24 corporations or associations; past due contractual obligations due to 25 other racing associations or organizations for the costs of acquiring a 26 simulcast signal; past due statutory payment obligations due to the New 27 York state thoroughbred breeding and development fund corporation, agri- 28 culture and New York state horse breeding development fund, and the 29 Harry M. Zweig memorial fund for equine research; and past due obli- 30 gations due the state. 31 d. Notwithstanding any other provision of law or regulation to the 32 contrary, from April first, two thousand twenty-four to March thirty- 33 first, two thousand twenty-five, twenty-three percent of the funds, not 34 to exceed two and one-half million dollars, in the Catskill off-track 35 betting corporation's capital acquisition fund established pursuant to 36 this section, and one million dollars in the Capital off-track betting 37 corporation's capital acquisition fund established pursuant to this 38 section, shall be available to such off-track betting corporation for 39 the purposes of expenditures necessary to accept authorized wagers; past 40 due statutory obligations to New York licensed or franchised racing 41 corporations or associations; past due contractual obligations due to 42 other racing associations or organizations for the costs of acquiring a 43 simulcast signal; past due statutory payment obligations due to the New 44 York state thoroughbred breeding and development fund corporation, agri- 45 culture and New York state horse breeding development fund, and the 46 Harry M. Zweig memorial fund for equine research; and past due obli- 47 gations due the state. 48 e. Notwithstanding any other provision of law or regulation to the 49 contrary, from April first, two thousand twenty-five to March thirty- 50 first, two thousand twenty-six, one million dollars in the Capital off- 51 track betting corporation's capital acquisition fund established pursu- 52 ant to this section shall be available to such off-track betting 53 corporation for the purposes of expenditures necessary to accept author- 54 ized wagers; past due statutory obligations to New York licensed or 55 franchised racing corporations or associations; past due contractual 56 obligations due to other racing associations or organizations for theS. 9009--C 79 A. 10009--C 1 cost of acquiring a simulcast signal; past due statutory payment obli- 2 gations due to the New York state thoroughbred breeding and development 3 fund corporation, agriculture and New York state horse breeding develop- 4 ment fund, and the Harry M. Zweig memorial fund for equine research; and 5 past due obligations due the state. 6 f. Notwithstanding any other provision of law or regulation to the 7 contrary, from April first, two thousand twenty-six to March thirty- 8 first, two thousand twenty-seven, one million dollars in the Capital 9 off-track betting corporation's capital acquisition fund established 10 pursuant to this section, shall be available to such off-track betting 11 corporation for the purposes of expenditures necessary to accept author- 12 ized wagers; past due statutory obligations to New York licensed or 13 franchised racing corporations or associations; past due contractual 14 obligations due to other racing associations or organizations for the 15 cost of acquiring a simulcast signal; past due statutory payment obli- 16 gations due to the New York state thoroughbred breeding and development 17 fund corporation, agriculture and New York state horse breeding develop- 18 ment fund, and the Harry M. Zweig memorial fund for equine research; and 19 past due obligations due the state. 20 g. Prior to a corporation being able to utilize the funds authorized 21 by paragraph c, d [or], e or f of this subdivision, the corporation must 22 attest that the surcharge monies from section five hundred thirty-two of 23 this chapter are being held separate and apart from any amounts other- 24 wise authorized to be retained from pari-mutuel pools and all surcharge 25 monies have been and will continue to be paid to the localities as 26 prescribed in law. Once this condition is satisfied, the corporation 27 must submit an expenditure plan to the gaming commission for review. 28 Such plan shall include the corporation's outstanding liabilities, 29 projected revenue for the upcoming year, a detailed explanation of how 30 the funds will be used, and any other information necessary to detail 31 such plan as determined by the commission. Upon review, the commission 32 shall make a determination as to whether the requirements of this para- 33 graph have been satisfied and notify the corporation of expenditure plan 34 approval. In the event the commission determines the requirements of 35 this paragraph have not been satisfied, the commission shall notify the 36 corporation of all deficiencies necessary for approval. As a condition 37 of such expenditure plan approval, the corporation shall provide a 38 report to the commission no later than the last day of the calendar year 39 for which the funds are requested, which shall include an accounting of 40 the use of such funds. At such time, the commission may cause an inde- 41 pendent audit to be conducted of the corporation's books to ensure that 42 all moneys were spent as indicated in such approved plan. The audit 43 shall be paid for from money in the fund established by this section. If 44 the audit determines that a corporation used the money authorized under 45 this section for a purpose other than one listed in their expenditure 46 plan, then the corporation shall reimburse the capital acquisition fund 47 for the unauthorized amount. 48 § 2. This act shall take effect immediately and shall be deemed to 49 have been in full force and effect on and after April 1, 2026. 50 PART Y 51 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 52 racing, pari-mutuel wagering and breeding law, as amended by section 1 53 of subpart B of part FF of chapter 59 of the laws of 2025, is amended to 54 read as follows:S. 9009--C 80 A. 10009--C 1 (a) Any racing association or corporation or regional off-track 2 betting corporation, authorized to conduct pari-mutuel wagering under 3 this chapter, desiring to display the simulcast of horse races on which 4 pari-mutuel betting shall be permitted in the manner and subject to the 5 conditions provided for in this article may apply to the commission for 6 a license so to do. Applications for licenses shall be in such form as 7 may be prescribed by the commission and shall contain such information 8 or other material or evidence as the commission may require. No license 9 shall be issued by the commission authorizing the simulcast transmission 10 of thoroughbred races from a track located in Suffolk county. The fee 11 for such licenses shall be five hundred dollars per simulcast facility 12 and for account wagering licensees that do not operate either a simul- 13 cast facility that is open to the public within the state of New York or 14 a licensed racetrack within the state, twenty thousand dollars per year 15 payable by the licensee to the commission for deposit into the general 16 fund. Except as provided in this section, the commission shall not 17 approve any application to conduct simulcasting into individual or group 18 residences, homes or other areas for the purposes of or in connection 19 with pari-mutuel wagering. The commission may approve simulcasting into 20 residences, homes or other areas to be conducted jointly by one or more 21 regional off-track betting corporations and one or more of the follow- 22 ing: a franchised corporation, thoroughbred racing corporation or a 23 harness racing corporation or association; provided (i) the simulcasting 24 consists only of those races on which pari-mutuel betting is authorized 25 by this chapter at one or more simulcast facilities for each of the 26 contracting off-track betting corporations which shall include wagers 27 made in accordance with [section] sections one thousand fifteen, one 28 thousand sixteen and one thousand seventeen of this article; provided 29 further that the contract provisions or other simulcast arrangements for 30 such simulcast facility shall be no less favorable than those in effect 31 on January first, two thousand five; (ii) that each off-track betting 32 corporation having within its geographic boundaries such residences, 33 homes or other areas technically capable of receiving the simulcast 34 signal shall be a contracting party; (iii) the distribution of revenues 35 shall be subject to contractual agreement of the parties except that 36 statutory payments to non-contracting parties, if any, may not be 37 reduced; provided, however, that nothing herein to the contrary shall 38 prevent a track from televising its races on an irregular basis primari- 39 ly for promotional or marketing purposes as found by the commission. For 40 purposes of this paragraph, the provisions of section one thousand thir- 41 teen of this article shall not apply. Any agreement authorizing an 42 in-home simulcasting experiment commencing prior to May fifteenth, nine- 43 teen hundred ninety-five, may, and all its terms, be extended until June 44 thirtieth, two thousand [twenty-six] twenty-seven; provided, however, 45 that any party to such agreement may elect to terminate such agreement 46 upon conveying written notice to all other parties of such agreement at 47 least forty-five days prior to the effective date of the termination, 48 via registered mail. Any party to an agreement receiving such notice of 49 an intent to terminate, may request the commission to mediate between 50 the parties new terms and conditions in a replacement agreement between 51 the parties as will permit continuation of an in-home experiment until 52 June thirtieth, two thousand [twenty-six] twenty-seven; and (iv) no 53 in-home simulcasting in the thoroughbred special betting district shall 54 occur without the approval of the regional thoroughbred track. 55 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 56 1007 of the racing, pari-mutuel wagering and breeding law, as amended byS. 9009--C 81 A. 10009--C 1 section 2 of subpart B of part FF of chapter 59 of the laws of 2025, is 2 amended to read as follows: 3 (iii) Of the sums retained by a receiving track located in Westchester 4 county on races received from a franchised corporation, for the period 5 commencing January first, two thousand eight and continuing through June 6 thirtieth, two thousand [twenty-six] twenty-seven, the amount used 7 exclusively for purses to be awarded at races conducted by such receiv- 8 ing track shall be computed as follows: of the sums so retained, two and 9 one-half percent of the total pools. Such amount shall be increased or 10 decreased in the amount of fifty percent of the difference in total 11 commissions determined by comparing the total commissions available 12 after July twenty-first, nineteen hundred ninety-five to the total 13 commissions that would have been available to such track prior to July 14 twenty-first, nineteen hundred ninety-five. 15 § 3. The opening paragraph of subdivision 1 of section 1014 of the 16 racing, pari-mutuel wagering and breeding law, as amended by section 3 17 of subpart B of part FF of chapter 59 of the laws of 2025, is amended to 18 read as follows: 19 The provisions of this section shall govern the simulcasting of races 20 conducted at thoroughbred tracks located in another state or country on 21 any day during which a franchised corporation is conducting a race meet- 22 ing in Saratoga county at Saratoga thoroughbred racetrack until June 23 thirtieth, two thousand [twenty-six] twenty-seven and on any day regard- 24 less of whether or not a franchised corporation is conducting a race 25 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 26 thirtieth, two thousand [twenty-six] twenty-seven. On any day on which a 27 franchised corporation has not scheduled a racing program but a 28 thoroughbred racing corporation located within the state is conducting 29 racing, each off-track betting corporation branch office and each simul- 30 casting facility licensed in accordance with section one thousand seven 31 (that has entered into a written agreement with such facility's repre- 32 sentative horsemen's organization, as approved by the commission), one 33 thousand eight, or one thousand nine of this article shall be authorized 34 to accept wagers and display the live simulcast signal from thoroughbred 35 tracks located in another state or foreign country subject to the 36 following provisions: 37 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 38 and breeding law, as amended by section 4 of subpart B of part FF of 39 chapter 59 of the laws of 2025, is amended to read as follows: 40 1. The provisions of this section shall govern the simulcasting of 41 races conducted at harness tracks located in another state or country 42 during the period July first, nineteen hundred ninety-four through June 43 thirtieth, two thousand [twenty-six] twenty-seven. This section shall 44 supersede all inconsistent provisions of this chapter. 45 § 5. The opening paragraph of subdivision 1 of section 1016 of the 46 racing, pari-mutuel wagering and breeding law, as amended by section 5 47 of subpart B of part FF of chapter 59 of the laws of 2025, is amended to 48 read as follows: 49 The provisions of this section shall govern the simulcasting of races 50 conducted at thoroughbred tracks located in another state or country on 51 any day during which a franchised corporation is not conducting a race 52 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 53 thirtieth, two thousand [twenty-six] twenty-seven. Every off-track 54 betting corporation branch office and every simulcasting facility 55 licensed in accordance with section one thousand seven that have entered 56 into a written agreement with such facility's representative horsemen'sS. 9009--C 82 A. 10009--C 1 organization as approved by the commission, one thousand eight or one 2 thousand nine of this article shall be authorized to accept wagers and 3 display the live full-card simulcast signal of thoroughbred tracks 4 (which may include quarter horse or mixed meetings provided that all 5 such wagering on such races shall be construed to be thoroughbred races) 6 located in another state or foreign country, subject to the following 7 provisions; provided, however, no such written agreement shall be 8 required of a franchised corporation licensed in accordance with section 9 one thousand seven of this article: 10 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 11 wagering and breeding law, as amended by section 6 of subpart B of part 12 FF of chapter 59 of the laws of 2025, is amended to read as follows: 13 Notwithstanding any other provision of this chapter, for the period 14 July twenty-fifth, two thousand one through September eighth, two thou- 15 sand [twenty-five] twenty-six, when a franchised corporation is conduct- 16 ing a race meeting within the state at Saratoga Race Course, every off- 17 track betting corporation branch office and every simulcasting facility 18 licensed in accordance with section one thousand seven (that has entered 19 into a written agreement with such facility's representative horsemen's 20 organization as approved by the commission), one thousand eight or one 21 thousand nine of this article shall be authorized to accept wagers and 22 display the live simulcast signal from thoroughbred tracks located in 23 another state, provided that such facility shall accept wagers on races 24 run at all in-state thoroughbred tracks which are conducting racing 25 programs subject to the following provisions; provided, however, no such 26 written agreement shall be required of a franchised corporation licensed 27 in accordance with section one thousand seven of this article. 28 § 7. Section 54 of chapter 346 of the laws of 1990, amending the 29 racing, pari-mutuel wagering and breeding law and other laws relating to 30 simulcasting and the imposition of certain taxes, as amended by section 31 8 of subpart B of part FF of chapter 59 of the laws of 2025, is amended 32 to read as follows: 33 § 54. This act shall take effect immediately; provided, however, 34 sections three through twelve of this act shall take effect on January 35 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 36 ing law, as added by section thirty-eight of this act, shall expire and 37 be deemed repealed on July 1, [2026] 2027; and section eighteen of this 38 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 39 two of this act shall take effect as of the same date as chapter 772 of 40 the laws of 1989 took effect. 41 § 8. Paragraph (a) of subdivision 1 of section 238 of the racing, 42 pari-mutuel wagering and breeding law, as amended by section 9 of 43 subpart B of part FF of chapter 59 of the laws of 2025, is amended to 44 read as follows: 45 (a) The franchised corporation authorized under this chapter to 46 conduct pari-mutuel betting at a race meeting or races run thereat shall 47 distribute all sums deposited in any pari-mutuel pool to the holders of 48 winning tickets therein, provided such tickets are presented for payment 49 before April first of the year following the year of their purchase, 50 less an amount that shall be established and retained by such franchised 51 corporation of between twelve to seventeen percent of the total deposits 52 in pools resulting from on-track regular bets, and fourteen to twenty- 53 one percent of the total deposits in pools resulting from on-track 54 multiple bets and fifteen to twenty-five percent of the total deposits 55 in pools resulting from on-track exotic bets and fifteen to thirty-six 56 percent of the total deposits in pools resulting from on-track superS. 9009--C 83 A. 10009--C 1 exotic bets[, plus the breaks]. The retention rate to be established is 2 subject to the prior approval of the commission. Such rate may not be 3 changed more than once per calendar quarter to be effective on the first 4 day of the calendar quarter. "Exotic bets" and "multiple bets" shall 5 have the meanings set forth in section five hundred nineteen of this 6 chapter. "Super exotic bets" shall have the meaning set forth in section 7 three hundred one of this chapter. For purposes of this section, a "pick 8 six bet" shall mean a single bet or wager on the outcomes of six races. 9 [The breaks are hereby defined as the odd cents over any multiple of10five for payoffs greater than one dollar five cents but less than five11dollars, over any multiple of ten for payoffs greater than five dollars12but less than twenty-five dollars, over any multiple of twenty-five for13payoffs greater than twenty-five dollars but less than two hundred fifty14dollars, or over any multiple of fifty for payoffs over two hundred15fifty dollars.] Out of the amount so retained there shall be paid by 16 such franchised corporation to the commissioner of taxation and finance, 17 as a reasonable tax by the state for the privilege of conducting pari- 18 mutuel betting on the races run at the race meetings held by such fran- 19 chised corporation, which tax is hereby levied, in the [following20percentages of the total pool for regular and multiple bets five percent21of regular bets and four percent of multiple bets plus twenty percent of22the breaks; for exotic wagers seven and one-half percent plus twenty23percent of the breaks, and for super exotic bets seven and one-half24percent plus fifty percent of the breaks.25For the period April first, two thousand one through December thirty-26first, two thousand twenty-six, such tax on all wagers shall be one and27six-tenths percent, plus, in each such period, twenty percent of the28breaks] applicable percentage set forth in subdivision one of section 29 one hundred thirty-six of this chapter. Payment to the New York state 30 thoroughbred breeding and development fund by such franchised corpo- 31 ration shall be one-half of one percent of total daily on-track pari-mu- 32 tuel pools resulting from regular, multiple and exotic bets and three 33 percent of super exotic bets and for the period April first, two thou- 34 sand one through December thirty-first, two thousand [twenty-six] twen- 35 ty-seven, such payment shall be seven-tenths of one percent of regular, 36 multiple and exotic pools. 37 § 9. This act shall take effect immediately. 38 PART Z 39 Section 1. Subdivision 1 of section 220 of the racing, pari-mutuel 40 wagering and breeding law, as amended by section 2 of part NN of chapter 41 59 of the laws of 2025, is amended to read as follows: 42 1. For the purpose of maintaining a proper control over race meetings 43 conducted pursuant to sections two hundred five and two hundred six of 44 this article, the commission shall license owners, which term shall be 45 deemed to include part-owners and lessees, trainers, assistant trainers 46 and jockeys, jockey agents, stable employees, non-publicly appointed 47 members of the board of a franchised corporation, and such other persons 48 as the commission may by rule prescribe at running races and at steeple- 49 chases, provided, however, that no such license shall be required for 50 seasonal employees hired solely to work for no longer than six weeks 51 during the summer meet at Saratoga racetrack, and any such other times 52 as race dates historically assigned to Belmont Park are conducted at the 53 Saratoga racetrack in two thousand twenty-four [and], two thousand twen- 54 ty-five and two thousand twenty-six as approved in writing by theS. 9009--C 84 A. 10009--C 1 commission. In the event that a proposed licensee is other than a 2 natural person, the commission shall require by regulation disclosure of 3 the names and addresses of all owners of an interest in such entity. The 4 commission may retain, employ or appoint such officers, employees and 5 agents, as it may deem necessary to receive, examine and make recommen- 6 dations, for the consideration of the commission, in respect of applica- 7 tions for such licenses; prescribe their duties in connection therewith, 8 and fix their compensation therefor within the limitations prescribed by 9 law. Each applicant for a license shall pay to the commission an annual 10 license fee as follows: owner's license, if a renewal, fifty dollars, 11 and if an original application, one hundred dollars; trainer's license, 12 thirty dollars; assistant trainer's license, thirty dollars; jockey's 13 license, fifty dollars; jockey agent's license, twenty dollars; and 14 stable employee's license, five dollars. Each applicant may apply for a 15 two-year or three-year license by payment to the commission of the 16 appropriate multiple of the annual fee. The commission may by rule fix 17 the license fees to be paid by other persons required to be licensed by 18 the rules of the commission, not to exceed thirty dollars per category. 19 The application for the license shall be in writing in such form as the 20 commission may prescribe, and contain such information as the commission 21 may require. The commission shall henceforth cause all applicants for 22 licenses to be photographed and fingerprinted and may issue identifica- 23 tion cards to licensees. Such fingerprints shall be submitted to the 24 division of criminal justice services for a state criminal history 25 record check, as defined in subdivision one of section three thousand 26 thirty-five of the education law, and may be submitted to the federal 27 bureau of investigation for a national criminal history record check. A 28 fee equal to the actual cost of issuance shall be charged for the 29 initial issuance of such identification cards. Each such license unless 30 revoked for cause shall be for the period of no more than one, two or 31 three years, determined by rule of the commission, expiring on the 32 applicant's birth date. Licenses of non-publicly appointed members of 33 the board of a franchised corporation shall be issued without fee and 34 remain in effect for the duration of their board service. Licenses 35 current on the effective date of this provision shall not be reduced in 36 duration by this provision. An applicant who applies for a license that, 37 if issued, would take effect less than six months prior to the appli- 38 cant's birth date may, by payment of a fifty percent higher fee, receive 39 a license which shall not expire until the applicant's second succeeding 40 birth date. All receipts of the commission derived from the operation of 41 this section shall be paid by it into the state treasury on or before 42 the tenth day of each month. All officials connected with the actual 43 conduct of racing shall be subject to approval by the commission. 44 § 2. This act shall take effect immediately; provided, however, that 45 the amendments to subdivision 1 of section 220 of the racing, pari-mutu- 46 el wagering and breeding law made by section one of this act shall not 47 affect the expiration of such subdivision and shall expire and be deemed 48 repealed therewith. 49 PART AA 50 Section 1. Subsection (c) of section 612 of the tax law is amended by 51 adding a new paragraph 48 to read as follows: 52 (48) The amount of any distribution included in federal adjusted gross 53 income pursuant to subsection (d) of section nine hundred sixty-two of 54 the internal revenue code.S. 9009--C 85 A. 10009--C 1 § 2. This act shall take effect immediately and shall apply to taxable 2 years beginning on or after January 1, 2026. 3 PART BB 4 Section 1. Paragraph (a) of subdivision 52 of section 210-B of the tax 5 law, as added by section 4 of part DDD of chapter 59 of the laws of 6 2017, is amended to read as follows: 7 (a) General. In the case of a taxpayer that is an eligible farmer, 8 there shall be allowed a credit, to be computed as hereinafter provided 9 against the tax imposed by this article for taxable years beginning on 10 and after January first, two thousand eighteen. The amount of the credit 11 shall be twenty-five percent of the fair market value of the taxpayer's 12 qualified donations made to any eligible food pantry during the taxable 13 year, not to exceed five thousand dollars per taxable year for taxable 14 years ending before January first, two thousand twenty-six, and fifty 15 percent of the fair market value of the taxpayer's qualified donations 16 made to any eligible food pantry during the taxable year, not to exceed 17 twenty thousand dollars per taxable year, for taxable years beginning on 18 and after January first, two thousand twenty-six. If the taxpayer is a 19 partner in a partnership, then the cap imposed by the preceding sentence 20 shall be applied at the entity level, so that the aggregate credit 21 allowed to all partners of such entity in the taxable year does not 22 exceed five thousand dollars for taxable years ending before January 23 first, two thousand twenty-six, and twenty thousand dollars for taxable 24 years beginning on and after January first, two thousand twenty-six. 25 § 2. Paragraph 1 of subsection (n-2) of section 606 of the tax law, as 26 added by section 1 of part DDD of chapter 59 of the laws of 2017, is 27 amended to read as follows: 28 (1) General. In the case of a taxpayer who is an eligible farmer, 29 there shall be allowed a credit, to be computed as hereinafter provided, 30 against the tax imposed by this article for taxable years beginning on 31 and after January first, two thousand eighteen. The amount of the credit 32 shall be twenty-five percent of the fair market value of the taxpayer's 33 qualified donations made to any eligible food pantry during the taxable 34 year, not to exceed five thousand dollars per taxable year for taxable 35 years ending before January first, two thousand twenty-six, and fifty 36 percent of the fair market value of the taxpayer's qualified donations 37 made to any eligible food pantry during the taxable year, not to exceed 38 twenty thousand dollars per taxable year, for taxable years beginning on 39 and after January first, two thousand twenty-six. If the taxpayer is a 40 partner in a partnership or a shareholder of a New York S corporation, 41 then the cap imposed by the preceding sentence shall be applied at the 42 entity level, so that the aggregate credit allowed to all partners or 43 shareholders of such entity in the taxable year does not exceed five 44 thousand dollars for taxable years ending before January first, two 45 thousand twenty-six, and twenty thousand dollars for taxable years 46 beginning on and after January first, two thousand twenty-six. 47 § 3. This act shall take effect immediately. 48 PART CC 49 Section 1. Subparagraph (B) of paragraph (ii) of subdivision (d) of 50 section 1105 of the tax law, as amended by chapter 678 of the laws of 51 2025, is amended to read as follows:S. 9009--C 86 A. 10009--C 1 (B) food or drink sold to a student of a nursery school, kindergarten, 2 elementary or secondary school at a restaurant or cafeteria located on 3 the premises of such a school, or food or drink, other than beer, wine, 4 or other alcoholic beverages, sold at a restaurant, tavern or other 5 establishment located on the premises of a college, university or a 6 school (other than a nursery school, kindergarten, elementary or second- 7 ary school) to a student enrolled therein who purchases such food or 8 drink under a contractual arrangement whereby the student does not pay 9 cash at the time such student is served, [including food sold to a10student enrolled therein purchasing a meal using an approved donation11program of funds or food points,] provided the school, college or 12 university described in this subparagraph is operated by an exempt 13 organization described in subdivision (a) of section eleven hundred 14 sixteen, or is created, incorporated, registered, or licensed by the 15 state legislature or pursuant to the education law or the regulations of 16 the commissioner of education, or is incorporated by the regents of the 17 university of the State of New York or with their consent or the consent 18 of the commissioner of education as provided in section two hundred 19 sixteen of the education law; provided, further, that the contractual 20 arrangement between an enrolled student and a college, university or 21 school may include a provision permitting such enrolled student to 22 donate unused meal funds, meals or meal points to other students 23 enrolled in such school, college or university who are facing food inse- 24 curity through a program operated by such school, college or university 25 directly or through a contract with a nonprofit organization that is 26 exempt from federal taxation pursuant to subsection (c) of section five 27 hundred one of the internal revenue code, provided that no part of the 28 donated funds, meals or meal points inure to the benefit of such school, 29 college, university or nonprofit organization; and 30 § 2. Section 2 of chapter 678 of the laws of 2025 amending the tax law 31 relating to excluding certain food donations from sales tax, as amended 32 by chapter 35 of the laws of 2026, is amended to read as follows: 33 § 2. This act shall take effect [July] June 1, 2026. 34 § 3. This act shall take effect immediately; provided, however, that 35 section one of this act shall take effect on the same date and in the 36 same manner as section 1 of chapter 678 of the laws of 2025, takes 37 effect. 38 PART DD 39 Section 1. Subdivision 1 of section 502 of the racing, pari-mutuel 40 wagering and breeding law, as amended by chapter 710 of the laws of 41 1990, is amended to read as follows: 42 1. a. A regional off-track betting corporation is hereby established 43 for each region, except the New York city region for which the New York 44 city off-track betting corporation established pursuant to and subject 45 to article six of this chapter shall constitute the regional corporation 46 and such article six shall govern such New York city off-track betting 47 corporation. Each regional corporation shall be a body corporate and 48 politic constituting a public benefit corporation. Each corporation 49 shall be administered by a board of directors consisting of two members 50 from each participating county containing a city of over one hundred 51 fifty thousand in population, according to the last federal census, and 52 one member from each other participating county. Notwithstanding any 53 other provision of law to the contrary, the members shall be appointed 54 by the county governing body, and may, at the discretion of such govern-S. 9009--C 87 A. 10009--C 1 ing body of counties which have a population of less than two hundred 2 thousand, include sitting members of such governing body. A member of a 3 governing body who is appointed a director after July first, nineteen 4 hundred ninety shall not be compensated by the regional corporation; 5 provided, however, that the mayor of a city of over one hundred fifty 6 thousand that has elected to participate in the management of a corpo- 7 ration pursuant to subdivision two of this section shall, with the 8 approval of the city's legislative body, appoint one of the members to 9 which the county containing such city is entitled. In the case of the 10 corporation established for the Suffolk region and Nassau region, the 11 board of directors of each corporation shall consist of three members 12 appointed by the governing body of each county, not more than two of 13 whom shall be members of the same political party. Each director shall 14 serve at the pleasure of the governing body or mayor appointing [him] 15 such director, as the case may be. A [chairman] chair shall be elected 16 by the members to serve a term of one year. 17 b. No person who has served as a board member or officer of the corpo- 18 ration shall within a period of five years after such person's termi- 19 nation of such service, regardless of the reason for termination, (i) be 20 appointed, reappointed or qualified as a member of the corporation; (ii) 21 appear or practice before such corporation or receive compensation for 22 any services rendered by such former board member or officer on behalf 23 of any person, firm, corporation or association in relation to any case, 24 proceeding or application or other matter before such corporation; or 25 (iii) receive compensation for any services on behalf of any person, 26 firm, corporation or association to appear, practice or directly commu- 27 nicate with the board of directors to promote or oppose, directly or 28 indirectly, the passage of resolutions by such board of directors. No 29 person who has served as a board member or officer of the corporation 30 shall after the termination of such service appear, practice, communi- 31 cate or otherwise render services before such corporation, or the board 32 of directors thereof, or receive compensation for any such services 33 rendered by such person on behalf of any person, firm, corporation or 34 other entity in relation to any case, proceeding, application or trans- 35 action with respect to which such person was directly concerned and in 36 which such person personally participated during the period of such 37 service, or which was under their active consideration. 38 c. No person who is appointed to be a member of the board of directors 39 may attend or participate in any board meetings, including executive 40 sessions, until that person's application for a license has been 41 approved by the commission. 42 § 2. Subdivisions 6 and 7 of section 502-a of the racing, pari-mutuel 43 wagering and breeding law are renumbered subdivisions 7 and 8 and a new 44 subdivision 6 is added to read as follows: 45 6. a. No person who has served as a board member or officer of the 46 corporation shall within a period of five years after such person's 47 termination of such service, regardless of the reason for termination, 48 (i) be appointed, reappointed or qualified as a member of the corpo- 49 ration; (ii) appear or practice before such corporation or receive 50 compensation for any services rendered by such former board member or 51 officer on behalf of any person, firm, corporation or association in 52 relation to any case, proceeding or application or other matter before 53 such corporation; or (iii) receive compensation for any services on 54 behalf of any person, firm, corporation or association to appear, prac- 55 tice or directly communicate with the board of directors to promote or 56 oppose, directly or indirectly, the passage of resolutions by such boardS. 9009--C 88 A. 10009--C 1 of directors. No person who has served as a board member or officer of 2 the corporation shall after the termination of such service appear, 3 practice, communicate or otherwise render services before such corpo- 4 ration, or the board of directors thereof, or receive compensation for 5 any such services rendered by such person on behalf of any person, firm, 6 corporation or other entity in relation to any case, proceeding, appli- 7 cation or transaction with respect to which such person was directly 8 concerned and in which such person personally participated during the 9 period of such service, or which was under their active consideration. 10 b. No person who is appointed to be a member of the board of directors 11 may attend or participate in any board meetings, including executive 12 sessions, until that person's application for a license has been 13 approved by the commission. 14 § 3. Section 2 of part JJ of chapter 56 of the laws of 2023, amending 15 the racing, pari-mutuel wagering and breeding law, relating to the 16 membership of the board of directors of the western regional off-track 17 betting corporation, is amended to read as follows: 18 § 2. This act shall take effect immediately; provided, however, that 19 effective immediately, cities and counties may take any action necessary 20 to begin the selection and appointment process for new board member 21 terms pursuant to this act; and provided further, that upon selection of 22 new board members, cities and counties shall notify the corporation of 23 their respective appointments via certified mail; and provided further, 24 that this act shall expire and be deemed repealed [four] fourteen years 25 after such effective date. 26 § 4. This act shall take effect immediately; provided, however, that 27 the amendments to section 502-a of the racing, pari-mutuel wagering and 28 breeding law made by section two of this act shall not affect the repeal 29 of such section and shall be deemed repealed therewith. 30 PART EE 31 Section 1. Subdivision 11 of section 458-a of the real property tax 32 law, as amended by chapter 77 of the laws of 2026, is amended to read as 33 follows: 34 11. In addition to any other exemption from taxation on real property 35 which may be allowed to veterans pursuant to the provisions of this 36 chapter, including subdivision three of section four hundred fifty-eight 37 of this title, a county, city, town, village or school district may 38 adopt a local law or resolution providing that the primary residence of 39 any seriously disabled veteran [who] shall be fully exempt from taxation 40 and special district charges, assessments and special ad valorem levies, 41 provided that such veteran meets all other requirements of this section 42 and such veteran has met at least one of the criteria set forth in 43 paragraph (a) of this subdivision and the criterion set forth in para- 44 graph (b) of this subdivision. To be eligible for such exemption, a 45 veteran: 46 (a)(i) [was] must have been discharged or released [therefrom under47honorable conditions] from active military, naval, space or air service, 48 including army and air national guard service performed pursuant to 49 federal orders under title 10 of the United States code, under honorable 50 conditions; or 51 (ii) [has] must have a qualifying condition, as defined in section one 52 of the veterans' services law, and [has] must have received a discharge 53 other than bad conduct or dishonorable from such service; orS. 9009--C 89 A. 10009--C 1 (iii) [is] must be a discharged LGBT veteran, as defined in section 2 one of the veterans' services law, and [has] must have received a 3 discharge other than bad conduct or dishonorable from such service; and 4 (b) [(i) is] must be considered by the United States department of 5 veterans affairs to be permanently and totally disabled as a result of 6 military service[;7(ii) is rated one hundred percent disabled by the United States8department of veterans affairs;9(iii) has been rated by the United States department of veterans10affairs as individually unemployable; and11(iv) who is eligible for pecuniary assistance from the United States12government, or has received pecuniary assistance from the United States13government and has applied such assistance toward the acquisition or14modification of a suitable housing unit with special features or movable15facilities made necessary by the nature of the veterans' disability, and16the necessary land therefor shall be fully exempt from taxation and17special district charges, assessments and special ad valorem levies,18provided that such veteran meets all other requirements of this19section.], as evidenced by a letter, official form, or other document 20 sent to such veteran from such department that specifically states such 21 veteran is considered to be permanently and totally disabled as a result 22 of such service. 23 (c) In no case shall the taxable assessed value of the property of a 24 qualifying veteran be reduced below zero. Nothing contained herein shall 25 be construed to require or authorize the discontinuance of any exemption 26 granted pursuant to subdivision three of section four hundred fifty- 27 eight of this title. 28 (d) Each county, city, town, village or school district that adopts a 29 local law or resolution for the exemption authorized by this subdivision 30 shall notify the department of veterans' services within thirty days of 31 such adoption; provided, however, that a failure to notify the depart- 32 ment of veterans' services within thirty days shall not render such 33 local law or resolution ineffective. The department of veterans' 34 services shall compile and maintain a publicly available record of each 35 such county, city, town, village or school district that has adopted 36 such exemption. 37 § 2. This act shall take effect immediately and shall apply to assess- 38 ment rolls based on taxable status dates occurring on and after October 39 1, 2026. 40 PART FF 41 Section 1. Section 606 of the tax law is amended by adding a new 42 subsection (uuu) to read as follows: 43 (uuu) Protecting our wallets energy rebate (POWER) credit. (1) A 44 taxpayer who meets the eligibility standards in paragraph two of this 45 subsection shall be allowed a credit against the taxes imposed by this 46 article in the amount specified in paragraph three of this subsection 47 for tax year two thousand twenty-six. 48 (2) To be eligible for the credit, the taxpayer (or taxpayers filing 49 joint returns) (A) must have been a full-year resident of the state of 50 New York in tax year two thousand twenty-four, (B) must have timely 51 filed a return for tax year two thousand twenty-four pursuant to section 52 six hundred fifty-one of this article, determined with regard to exten- 53 sions pursuant to section six hundred fifty-seven of this article, (C) 54 (i) must have had New York adjusted gross income of three hundred thou-S. 9009--C 90 A. 10009--C 1 sand dollars or less in tax year two thousand twenty-four if they filed 2 a New York state resident income tax return as married taxpayers filing 3 jointly or a qualified surviving spouse, or (ii) must have had New York 4 adjusted gross income of one hundred fifty thousand dollars or less in 5 tax year two thousand twenty-four if they filed a New York state resi- 6 dent income tax return as a single taxpayer, married taxpayer filing a 7 separate return, or head of household, and (D) must not have been 8 claimed as a dependent by another taxpayer in tax year two thousand 9 twenty-four. 10 (3) Amount of credit. (A) For taxpayers who meet the eligibility stan- 11 dards in paragraph two who filed a New York state resident income tax 12 return as married taxpayers filing jointly or a qualified surviving 13 spouse, (i) with a New York adjusted gross income of greater than one 14 hundred fifty thousand dollars but no greater than three hundred thou- 15 sand dollars in tax year two thousand twenty-four, the credit amount 16 shall be one hundred fifty dollars, or (ii) with a New York adjusted 17 gross income of no greater than one hundred fifty thousand dollars in 18 tax year two thousand twenty-four, the credit amount shall be two 19 hundred dollars, and (B) for taxpayers who meet the eligibility stand- 20 ards in paragraph two who filed a New York state resident income tax 21 return as a single taxpayer, married taxpayer filing a separate return, 22 or head of household with a New York adjusted gross income of no greater 23 than one hundred fifty thousand dollars in tax year two thousand twen- 24 ty-four, the credit amount shall be one hundred dollars. 25 (4) The amount of the credit shall be treated as an overpayment of tax 26 to be credited or refunded in accordance with the provisions of section 27 six hundred eighty-six of this article, provided, however, that no 28 interest shall be paid thereon. The commissioner shall determine the 29 taxpayer's eligibility for this credit utilizing information available 30 to the commissioner on the taxpayer's personal income tax return filed 31 for tax year two thousand twenty-four. For those taxpayers whom the 32 commissioner has determined eligible for this credit, the commissioner 33 shall advance a payment in the amount specified in paragraph three of 34 this subsection. A taxpayer who failed to receive an advance payment 35 that they believe was due, or who received an advance payment that they 36 believe is less than the amount that was due, may request payment of the 37 claimed deficiency in a manner prescribed by the commissioner. 38 § 2. Notwithstanding any provision of law to the contrary, any credit 39 paid pursuant to this act, to the extent includible in gross income for 40 federal income tax purposes, shall not be subject to state or local 41 income tax. 42 § 3. This act shall take effect immediately. 43 PART GG 44 Section 1. Subdivision 1 of section 115-a of the racing, pari-mutuel 45 wagering and breeding law, as added by section 1 of part A of chapter 60 46 of the laws of 2012, is amended to read as follows: 47 1. In order to provide supplemental funding to support the operations 48 of the commission, a fee in the amount of ten dollars shall be assessed 49 and paid upon every horse entered in a pari-mutuel race in New York 50 state that actually starts in the race. Beginning January first, two 51 thousand twenty-seven, an amount as determined by the commission to 52 support the standardbred total carbon dioxide on-track drug testing 53 program outlined in section nine hundred two-a of this chapter shall be 54 added to such fee upon every standardbred horse entered in a pari-mutuelS. 9009--C 91 A. 10009--C 1 race in New York state that actually starts in the race. Such fee shall 2 be refunded to the owner or credited to the owner's account in the event 3 the horse does not actually start in the race. The commission shall, as 4 a condition of racing, require any corporation authorized under this 5 chapter to conduct pari-mutuel betting at a race meeting or races run 6 thereat, to require that each owner racing a horse shall have placed on 7 deposit at the time of entry with the horsemen's bookkeeper or similar 8 office of such corporation the required fee in the amount of ten dollars 9 per horse entered in a pari-mutuel race. Unless refunded or credited, 10 the total fee amount collected during the preceding month by the 11 horsemen's bookkeeper or similar office of such corporation shall be 12 paid to the commission on the first business day of each month. Payment 13 shall be accompanied by a report, under oath, showing such information 14 as the commission may require. A penalty of five percent, and interest 15 at the rate of one percent per month from the date the report is 16 required to be filed to the date of the payment of the fee, shall be 17 payable in case any fee imposed by this subdivision is not paid when 18 due. If the commission determines that any fees received by it under 19 this subdivision were paid in error, the commission may cause the same 20 to be refunded without interest out of any monies collected hereunder, 21 provided an application therefor is filed with the commission within one 22 year from the time the erroneous payment is made. 23 § 2. The racing, pari-mutuel wagering and breeding law is amended by 24 adding a new section 902-a to read as follows: 25 § 902-a. Standardbred total carbon dioxide (TCO2) on-track drug test- 26 ing program. 1. Program. The commission shall establish and administer a 27 program to conduct on-track drug testing for excess levels of TCO2 in 28 standardbred horses entered to race at licensed harness tracks in this 29 state. Such program shall include on-track pre-race testing done by the 30 commission or its employees or representatives in accordance with this 31 section and regulations promulgated by the commission. For the purposes 32 of this section, the term "TCO2" shall mean total carbon dioxide. 33 2. Recurring annual expenses. (a) The commission shall mandate an 34 additional amount to be added to start fees, outlined in subdivision one 35 of section one hundred fifteen-a of this chapter, necessary to cover 36 fifty percent of the costs to support the program established by this 37 section for the applicable calendar year. 38 (b) The commission shall mandate corporations or associations author- 39 ized under this chapter to conduct pari-mutuel betting at a standardbred 40 race meeting or standardbred races run thereat to make payment, or 41 payments, to the racing regulation account in the amount necessary to 42 cover fifty percent of the costs to support the program established by 43 this section for the applicable calendar year. The commission shall 44 determine the frequency and manner of such payments. 45 (c) (i) No later than January thirty-first of the applicable year, the 46 commission shall notice the applicable organization representing at 47 least fifty-one percent of the owners and trainers using the facilities 48 of the applicable corporation or association authorized under this chap- 49 ter to conduct pari-mutuel betting at a standardbred race meeting or 50 standardbred races run thereat of the additional amount to be included 51 in the start fees outlined in paragraph (a) of this subdivision during 52 the applicable calendar year. 53 (ii) No later than January thirty-first of the applicable year, the 54 commission shall notice corporations or associations authorized under 55 this chapter to conduct pari-mutuel betting at a standardbred race meet- 56 ing or standardbred races run thereat of the amount, frequency andS. 9009--C 92 A. 10009--C 1 manner of the payment or payments outlined in paragraph (b) of this 2 subdivision during the applicable calendar year. 3 3. Pre-race testing. (a) Blood or other biologic samples shall be 4 taken from at least three of the horses programmed to race or fifty 5 percent of horses programmed to race, whichever is higher, prior to the 6 race in which such horse is programmed, at a time and location specified 7 by the commission. Horses selected for such samples shall be selected at 8 random by the commission or its employees or representatives. 9 (b) The trainer or such trainer's representative shall accompany such 10 horse at the prescribed time and location and shall manage the horse as 11 directed. Willful failure to be present at, refusal to permit, or inter- 12 ference with the taking of any sample pursuant to this subdivision shall 13 constitute a violation of this section and may subject the person 14 responsible to disciplinary action by the commission pursuant to this 15 chapter. 16 (c) Blood samples shall be taken by a veterinarian or veterinary tech- 17 nician authorized by the commission and licensed to practice in this 18 state. 19 (d) Urine samples may be collected by a commission inspector or other 20 person authorized by the commission. 21 (e) Whenever an on-track test indicates the presence of excess TCO2 22 levels, in a sample taken from a horse, the judges shall scratch the 23 horse from the race. 24 (f) Unless specifically permitted in writing by the presiding judge, a 25 horse from which a pre-race sample has been taken shall not be removed 26 from the grounds except for transport to the racecourse where such horse 27 is scheduled to race if such racecourse is not located on the grounds 28 where the sample was taken. 29 § 3. This act shall take effect immediately. 30 PART HH 31 Section 1. Legislative findings. The residents of New York city and 32 many who do business here contribute daily to the health and vibrancy of 33 the city through their economic activity and the taxes they pay. Howev- 34 er, many of the city's most valuable homes are held as second homes, 35 allowing the owners of those homes to reap considerable benefits from 36 the city's broader economy, from city services, and from a vibrant real 37 estate market. The legislature finds that it is prudent to impose a 38 surcharge on the owners of these second homes to maintain important city 39 services. 40 The legislature further finds that this surcharge should be applied to 41 second homes with values of $5 million or more when measured by the 42 sales of comparable properties. Recognizing that many second homes in 43 New York city have not historically been valued using comparable sales 44 methods, the legislature finds that it is appropriate, for the initial 45 phase of the surcharge, to impose the surcharge on such properties using 46 current valuation methods and corresponding surcharge rates the legisla- 47 ture deems appropriate for this transitional period. 48 § 2. The tax law is amended by adding a new article 30-C to read as 49 follows: 50 ARTICLE 30-C 51 CITY SURCHARGE ON PROPERTY THAT DOES NOT SERVE AS A PRIMARY RESIDENCE 52 Section 1350. Imposition of surcharge. 53 1351. Definitions. 54 1352. Primary residence.S. 9009--C 93 A. 10009--C 1 1353. Surcharge rates. 2 1354. Administration of surcharge. 3 1355. Administrative and judicial review. 4 1356. Information sharing. 5 § 1350. Imposition of surcharge. In addition to any other tax or 6 assessment imposed by this chapter or other law, there is hereby 7 imposed, beginning on July first, two thousand twenty-six, a surcharge 8 in accordance with this article on a covered property, or in the case of 9 a covered property that is a residential cooperative property, a resi- 10 dential cooperative dwelling unit, that is not a primary residence, 11 provided that (a) for fiscal years beginning on or after July first, two 12 thousand twenty-six, and before July first, two thousand twenty-eight, 13 the phase one market value of such covered property that is a class one 14 property is equal to or greater than five million dollars, the phase one 15 market value of such covered property that is a residential condominium 16 dwelling unit is equal to or greater than one million dollars, or, in 17 the case of a covered property that is a residential cooperative proper- 18 ty, the phase one market value of a residential cooperative dwelling 19 unit within such residential cooperative property is equal to or greater 20 than one million dollars; and (b) for fiscal years beginning on or after 21 July first, two thousand twenty-eight, the phase two market value of 22 such covered property or, in the case of a covered property that is a 23 residential cooperative property, such residential cooperative dwelling 24 unit, is equal to or greater than five million dollars. 25 § 1351. Definitions. As used in this article, the following terms 26 shall have the following meanings: 27 (a) "Administrative code" means the administrative code of the city of 28 New York. 29 (b) "Class one property" means class one, as such class of property is 30 defined in section eighteen hundred two of the real property tax law, 31 other than such property described in subparagraph (c) of such defi- 32 nition. 33 (c) "Class two property" means class two, as such class of property is 34 defined in section eighteen hundred two of the real property tax law. 35 (d) "Covered owner" means: 36 (1) an owner or owners of real property classified as class one prop- 37 erty; 38 (2) a tenant-stockholder of a cooperative corporation whose interest 39 in a portion of real property held by such corporation is represented by 40 shares of stock in such corporation; 41 (3) an owner or owners of a residential condominium dwelling unit; 42 (4) where real property classified as class one or a residential 43 condominium dwelling unit is held, or shares of stock in a cooperative 44 corporation are held, in trust, a beneficial owner or owners of such 45 trust, provided that such beneficial owner or owners are the sole bene- 46 ficiaries of such trust; or 47 (5) where real property classified as class one or a residential 48 condominium dwelling unit is held, or shares of stock in a cooperative 49 corporation are held, by a partnership, corporation or limited liability 50 company, a partner or partners, shareholder or shareholders or member or 51 members of such partnership, corporation, or limited liability company, 52 respectively, provided that such partner or partners, shareholder or 53 shareholders, or member or members hold a majority interest in such 54 partnership, corporation or limited liability company respectively. 55 (e) "Covered property" means real property, other than excluded prop- 56 erty, classified as:S. 9009--C 94 A. 10009--C 1 (1) class one property, other than vacant land; 2 (2) class two property that is a residential cooperative property in 3 which at least one residential cooperative dwelling unit: (A) has a 4 phase one market value equal to or greater than one million dollars or 5 phase two market value equal to or greater than five million dollars; 6 and (B) is not a primary residence; and 7 (3) class two property that is a residential condominium dwelling 8 unit. 9 (f) "Department of finance" means the department of finance in a city 10 having a population of one million or more. 11 (g) "Excluded property" means a class one or class two property: 12 (1) for which a temporary or permanent certificate of occupancy is 13 required and has not yet been issued; or 14 (2) a residential condominium dwelling unit or residential cooperative 15 dwelling unit that is subject to an offering plan required by section 16 three hundred fifty-two-e of the general business law and such unit has 17 not been sold, or an economic interest in such unit has not been trans- 18 ferred, by the person, partnership, corporation, company, trust or asso- 19 ciation who has filed such plan. 20 (h) "Imputed cooperative phase one market value" means the market 21 value of a residential cooperative dwelling unit in a residential coop- 22 erative property, calculated as the product of: 23 (1) the market value of such residential cooperative property as 24 determined by the department of finance pursuant to chapter fifty-eight 25 of the New York city charter for the fiscal year in which the surcharge 26 described in this article is imposed; and 27 (2) the quotient of (A) the shares in a cooperative corporation 28 representing an interest in such residential cooperative dwelling unit; 29 divided by (B) the total shares of stock in such cooperative corpo- 30 ration. 31 (i) "Notice of surcharge" means a notice issued by the department of 32 finance to an owner indicating that a covered property, or, in the case 33 of a residential cooperative property, a residential cooperative dwell- 34 ing unit, is, or may be, subject to the surcharge authorized by this 35 article, including the phase one market value or phase two market value, 36 as applicable, of such covered property or residential cooperative 37 dwelling unit and a determination by the department of finance that such 38 covered property or residential cooperative dwelling unit is not a 39 primary residence. 40 (j) "Owner" means: 41 (1) an owner or owners of real property classified as class one prop- 42 erty; 43 (2) a tenant-stockholder of a cooperative corporation whose interest 44 in a portion of real property held by such corporation is represented by 45 shares of stock in such corporation, or such corporation; or 46 (3) an owner or owners of a residential condominium dwelling unit. 47 (k) "Phase one market value" means: 48 (1) for a class one property, the market value of a covered property 49 as determined by the department of finance pursuant to chapter fifty- 50 eight of the New York city charter for the fiscal year in which the 51 surcharge described in this article is imposed; 52 (2) for a class two property that is a residential condominium dwell- 53 ing unit, the market value of such residential condominium dwelling unit 54 as determined by the department of finance pursuant to chapter fifty- 55 eight of the New York city charter for the fiscal year in which the 56 surcharge described in this article is imposed; andS. 9009--C 95 A. 10009--C 1 (3) for a class two property that is a residential cooperative proper- 2 ty, the imputed cooperative phase one market value for any residential 3 cooperative dwelling unit in such residential cooperative property. 4 (l) "Phase two market value" means: 5 (1) for a class one property, the market value of a covered property 6 as determined by the department of finance pursuant to chapter fifty- 7 eight of the New York city charter for the fiscal year in which the 8 surcharge described in this article is imposed; 9 (2) for a class two property that is a residential condominium dwell- 10 ing unit, the market value of such residential condominium dwelling 11 unit, as determined by the department of finance pursuant to chapter 12 fifty-eight of the New York city charter for the fiscal year in which 13 the surcharge described in this article is imposed, provided that such 14 market value shall be determined using a method that considers sales of 15 comparable residential condominium dwelling units or comparable residen- 16 tial cooperative dwelling units without regard to the restrictions 17 described in section five hundred eighty-one of the real property tax 18 law or section three hundred thirty-nine-y of the real property law; and 19 (3) for a class two property that is a residential cooperative proper- 20 ty, the market value of any residential cooperative dwelling unit in 21 such residential cooperative property, as determined by the department 22 of finance pursuant to chapter fifty-eight of the New York city charter 23 for the fiscal year in which the surcharge described in this article is 24 imposed, provided that such market value shall be determined using a 25 method that considers sales of comparable residential cooperative dwell- 26 ing units or comparable residential condominium dwelling units without 27 regard to the restrictions found in section five hundred eighty-one of 28 the real property tax law. 29 (m) "Primary residence" means the use of a covered property, or, in 30 the case of a residential cooperative property, a residential cooper- 31 ative dwelling unit, as of the taxable status date immediately preceding 32 the fiscal year in which the surcharge described by this article is 33 imposed, as a primary residence of (1) one or more of the covered 34 owners, or an immediate family member of one or more of the covered 35 owners, provided such covered owners are natural persons; or (2) one or 36 more lessees, and any sub-lessees to which a lessee has sublet the 37 covered property or residential cooperative dwelling unit pursuant to 38 subdivision two of section two hundred twenty-six-b of the real property 39 law, provided any such lessee or sub-lessee is a natural person occupy- 40 ing such covered property or residential cooperative dwelling unit 41 pursuant to a bona fide lease agreement negotiated in an arms-length 42 transaction with a term of not less than one year. For purposes of this 43 article, the phrase "immediate family member" means a spouse, child, 44 sibling, parent, grandparent, or grandchild. 45 (n) "Residential condominium dwelling unit" means a unit, as defined 46 in section three hundred thirty-nine-e of the real property law, held in 47 a condominium form of ownership and used as residential real property, 48 other than: (1) such a unit that is residential cooperative property; or 49 (2) such a unit that includes more than three dwelling units and all 50 such dwelling units are held by the same owner, except where the depart- 51 ment of finance determines that a unit has been divided into more than 52 three units to avoid application of the surcharge. 53 (o) "Residential cooperative dwelling unit" means a dwelling unit in 54 real property held by a cooperative corporation where an owner is a 55 tenant-stockholder of such cooperative corporation and such dwelling 56 unit is used as residential real property.S. 9009--C 96 A. 10009--C 1 (p) "Residential cooperative property" means real property owned or 2 leased by a cooperative corporation and that contains one or more resi- 3 dential cooperative dwelling units. 4 (q) "Taxable status date" means the January fifth immediately preced- 5 ing the fiscal year in which the surcharge is imposed pursuant to this 6 article. 7 § 1352. Primary residence. (a) Determination of primary residency. (1) 8 The department of finance shall make, on an annual basis, an initial 9 determination that a covered property, or, in the case of a covered 10 property that is a residential cooperative property, a residential coop- 11 erative dwelling unit, that has a phase one or phase two market value 12 equal to, or greater than, the threshold provided in section thirteen 13 hundred fifty of this article, is not a primary residence. The depart- 14 ment of finance shall make a determination of primary residence based on 15 factors identified by rules of the department of finance, including but 16 not limited to whether such covered property or residential cooperative 17 dwelling unit was occupied in aggregate for a majority of days during a 18 calendar year by a covered owner of such covered property or residential 19 cooperative dwelling unit. The department of finance shall make such 20 initial determination based on information available to such department. 21 (2) The department of finance shall provide notice to the owner of a 22 covered property, or, in the case of a covered property that is a resi- 23 dential cooperative property, a residential cooperative dwelling unit, 24 of such initial determination, provided that, for the fiscal year begin- 25 ning July first, two thousand twenty-six, such department shall provide 26 such notice no later than August thirtieth, two thousand twenty-six. 27 Such notice shall include an opportunity for such owner to submit proof 28 of primary residence, to the satisfaction of such department, in accord- 29 ance with a time period established by rules of such department. The 30 department of finance may require that such owner provide a certif- 31 ication that such covered property or residential cooperative dwelling 32 unit is a primary residence, as well as any documentation demonstrating: 33 (A) that a covered owner provided the address of such covered property 34 or residential cooperative dwelling unit as such covered owner's perma- 35 nent home address on the New York state resident income tax return filed 36 by such covered owner for the calendar year that ends immediately 37 preceding the fiscal year in which the surcharge is imposed; 38 (B) such covered property or residential cooperative dwelling unit 39 received a real property tax exemption pursuant to section four hundred 40 twenty-five of the real property tax law during the fiscal year imme- 41 diately preceding the fiscal year in which the surcharge is imposed or 42 the owner of such covered property or residential cooperative dwelling 43 unit received a tax credit pursuant to subsection (eee) of section six 44 hundred six of the tax law for such covered property or residential 45 cooperative dwelling unit for the calendar year immediately preceding 46 the fiscal year in which the surcharge is imposed; or 47 (C) such covered property or residential cooperative dwelling unit is 48 the primary residence of one or more lessees or sub-lessees to which a 49 lessee has sublet such covered property or residential cooperative 50 dwelling unit pursuant to subdivision two of section two hundred twen- 51 ty-six-b of the real property law or an immediate family member of a 52 covered owner. 53 (3) After consideration of a submission of proof of primary residence 54 by a covered owner pursuant to paragraph two of this subsection, and 55 other available information, the department of finance shall determine 56 whether such covered property or residential cooperative dwelling unitS. 9009--C 97 A. 10009--C 1 is not a primary residence. Such determination shall constitute a final 2 determination of the department of finance. 3 (4) The department of finance may require electronic submission of any 4 certification or documentation described in this section. 5 (5) Failure to provide the notice required by this section shall not 6 affect the validity of the imposition of the surcharge authorized by 7 this article. 8 (b) Promulgation of rules. The department of finance may promulgate 9 rules to: 10 (1) specify additional factors or documentation that may assist in the 11 initial or final determination of whether a covered property, or, in the 12 case of a covered property that is a residential cooperative property, a 13 residential cooperative dwelling unit, is a primary residence; and 14 (2) establish a process through which the department of finance may 15 audit any certification or documentation of primary residency submitted 16 pursuant to this section within six years of such submission. 17 § 1353. Surcharge rates. The surcharge shall be calculated as follows: 18 (a) For fiscal years beginning on or after July first, two thousand 19 twenty-six, and before July first, two thousand twenty-eight, (1) for 20 covered property that is in class one, where the phase one market value 21 is (A) greater than or equal to five million dollars, but less than or 22 equal to fifteen million dollars, at a rate of 0.8 percent; (B) greater 23 than fifteen million dollars, but less than or equal to twenty-five 24 million dollars, at a rate of 1.05 percent; (C) greater than twenty-five 25 million dollars, at a rate of 1.3 percent; and (2) for covered property 26 that is a residential condominium dwelling unit or, in the case of a 27 residential cooperative property, a residential cooperative dwelling 28 unit, where the phase one market value is (A) greater than or equal to 29 one million dollars, but less than or equal to three million dollars, at 30 a rate of 4.0 percent; (B) greater than three million dollars, but less 31 than or equal to five million dollars, at a rate of 5.25 percent; (C) 32 greater than five million dollars, at a rate of 6.5 percent. 33 (b) For fiscal years beginning on or after July first, two thousand 34 twenty-eight, for covered property or, in the case of a residential 35 cooperative property, a residential cooperative dwelling unit, where the 36 phase two market value is (1) greater than or equal to five million 37 dollars, but less than or equal to fifteen million dollars, at a rate of 38 0.8 percent; (2) greater than fifteen million dollars, but less than or 39 equal to twenty-five million dollars, at a rate of 1.05 percent; (3) 40 greater than twenty-five million dollars, at a rate of 1.3 percent. 41 § 1354. Administration of surcharge. (a) The department of finance 42 shall add the surcharge authorized by this article to the statement of 43 account of a covered property. In the case of a residential cooperative 44 property, the department of finance shall add to the statement of 45 account of such residential cooperative property the sum of any 46 surcharges authorized by this article for each residential cooperative 47 dwelling unit in such residential cooperative property where such dwell- 48 ing unit: (1) has a phase one or phase two market value equal to, or 49 greater than, the threshold provided in section thirteen hundred fifty 50 of this article; and (2) does not serve as a primary residence. Such 51 surcharge shall be due and payable in the same manner as real property 52 taxes are due and payable pursuant to section fifteen hundred nineteen-a 53 of the New York city charter. The department of finance shall administer 54 and enforce this surcharge, to the greatest extent practicable not 55 inconsistent with this section, in the same manner used to administerS. 9009--C 98 A. 10009--C 1 and enforce real property taxes, except that any abatement, credit or 2 exemption authorized by law shall not apply to such surcharge. 3 (b) Notwithstanding subsection (a) of this section, any surcharge 4 imposed on a covered property in the fiscal year commencing on July 5 first, two thousand twenty-six, shall be due and payable on the same 6 date as the second semi-annual installment of real property taxes is 7 due, as described in section fifteen hundred nineteen-a of the charter 8 of the city of New York. 9 (c) Notwithstanding any provision of law to the contrary, where the 10 department of finance adds the sum of any surcharges authorized by this 11 article for a residential cooperative dwelling unit pursuant to subdivi- 12 sion (a) of this section to the statement of account of a residential 13 cooperative property, each such surcharge shall be collected by the 14 cooperative corporation from the tenant-stockholder of such cooperative 15 corporation whose interest in each such residential cooperative dwelling 16 unit is represented by shares of stock in such corporation. 17 (d) Notwithstanding any provision of law to the contrary, the 18 surcharge imposed on a covered property pursuant to this article shall 19 be separate and distinct from any other tax levied on real property. Any 20 revenue collected as a result of the imposition of this surcharge shall 21 not be included in the calculation of the tax levy for purposes of 22 determining class shares pursuant to article eighteen of the real prop- 23 erty tax law, shall not be subject to apportionment among classes of 24 real property, and shall not be considered when establishing tax rates 25 for any class of property. Such revenue shall be considered receipts 26 other than taxes on real property for the purposes of section fifteen 27 hundred fifteen of the New York city charter. 28 (e) The department of finance may promulgate any rules: 29 (1) necessary to implement this article, including, but not limited 30 to, rules: 31 (A) to address a change in ownership of a covered property or a resi- 32 dential cooperative dwelling unit, or illness or death of an owner of a 33 covered property or residential cooperative dwelling unit; 34 (B) to authorize persons other than a covered owner to submit proof of 35 primary residency on behalf of a covered owner; 36 (C) relating to requirements for provision of notice of surcharge; or 37 (D) to establish when a sale of a residential condominium dwelling 38 unit, or a transfer of an economic interest in a residential cooperative 39 dwelling unit, has occurred for purposes of paragraph two of subdivision 40 (g) of section thirteen hundred fifty-one of this article. 41 (2) to establish penalties not exceeding fifty percent of the 42 surcharge imposed on a covered property by this article if, after notice 43 and a hearing, the department of finance determines that: 44 (A) any certification or documentation submitted to the department of 45 finance contains inaccurate or misleading information that: (i) is mate- 46 rial to the determination of the imposition of such surcharge, including 47 a determination relating to primary residence; and (ii) was submitted 48 negligently or in bad faith; or 49 (B) a covered property that is a residential condominium unit has been 50 divided into more than three units to avoid application of such 51 surcharge and the owner of such covered property has made such division 52 in bad faith. 53 (f) The department of finance may enforce and collect any penalty 54 imposed pursuant to the authority set forth in subsection (e) of this 55 section in the same manner as the department of finance enforces and 56 collects the surcharge authorized by this article.S. 9009--C 99 A. 10009--C 1 (g) The commissioner of the department of finance may subpoena and 2 require the attendance of witnesses and the production of books, papers 3 and documents to secure information pertinent to the determination of 4 the surcharge, including a determination relating to primary residence. 5 § 1355. Administrative and judicial review. (a) Notwithstanding any 6 provision of law to the contrary, an owner of a covered property, or, in 7 the case of a residential cooperative property, a residential cooper- 8 ative dwelling unit, may seek administrative and judicial review of the 9 imposition of the surcharge on such covered property or residential 10 cooperative dwelling unit pursuant to the provisions of the administra- 11 tive code imposing such surcharge. 12 (b) The remedies provided by the provisions of the administrative code 13 imposing such surcharge shall be the exclusive remedies available to any 14 person for the review of liability of the surcharge authorized by this 15 article. 16 § 1356. Information sharing. A city having a population of one million 17 or more imposing a surcharge pursuant to this article shall, upon 18 request by the commissioner of taxation and finance, provide the depart- 19 ment of taxation and finance with any records in its possession used or 20 considered in determining whether a covered property, or, in the case of 21 a residential cooperative property, a residential cooperative dwelling 22 unit, is not a primary residence. The department of taxation and finance 23 shall, upon request by such city, provide such city with any records in 24 its possession contained in any return filed pursuant to article thirty 25 of this chapter or disclosed by any investigation of tax liability under 26 such article for the purposes of implementing such surcharge. Informa- 27 tion shared pursuant to this subsection shall not be subject to disclo- 28 sure pursuant to article six of the public officers law. 29 § 3. Title 11 of the administrative code of the city of New York is 30 amended by adding a new chapter 32 to read as follows: 31 CHAPTER 32 32 SURCHARGE ON PROPERTY THAT DOES NOT SERVE AS A PRIMARY RESIDENCE 33 § 11-3201 Definitions. As used in this chapter, the following terms 34 have the following meanings: 35 Class one property. The term "class one property" means class one, as 36 such class of property is defined in section eighteen hundred two of the 37 real property tax law, other than such property described in subpara- 38 graph (c) of such definition. 39 Class two property. The term "class two property" means class two, as 40 such class of property is defined in section eighteen hundred two of the 41 real property tax law. 42 Commissioner. The term "commissioner" means the commissioner of the 43 department of finance. 44 Covered owner. The term "covered owner" means: 45 (i) an owner or owners of real property classified as class one prop- 46 erty; 47 (ii) a tenant-stockholder of a cooperative corporation whose interest 48 in a portion of real property held by such corporation is represented by 49 shares of stock in such corporation; 50 (iii) an owner or owners of a residential condominium dwelling unit; 51 (iv) where real property classified as class one or a residential 52 condominium dwelling unit is held, or shares of stock in a cooperative 53 corporation are held, in trust, a beneficial owner of such trust, 54 provided that such beneficial owner or owners are the sole beneficiaries 55 of such trust; orS. 9009--C 100 A. 10009--C 1 (v) where real property classified as class one or a residential 2 condominium dwelling unit is held, or shares of stock in a cooperative 3 corporation are held, by a partnership, corporation or limited liability 4 company, a partner or partners, shareholder or shareholders or member or 5 members of such partnership, corporation, or limited liability company, 6 respectively, provided that such partner or partners, shareholder or 7 shareholders, or member or members hold a majority interest in such 8 partnership, corporation or limited liability company respectively. 9 Covered property. The term "covered property" means real property, 10 other than excluded property, classified as: 11 (i) class one property, other than vacant land; 12 (ii) class two property that is a residential cooperative property in 13 which at least one residential cooperative dwelling unit: (A) has a 14 phase one market value equal to or greater than one million dollars or 15 phase two market value equal to or greater than five million dollars; 16 and (B) is not a primary residence; and 17 (iii) class two property that is a residential condominium dwelling 18 unit. 19 Department. The term "department" means the department of finance. 20 Excluded property. The term "excluded property" means a class one or 21 class two property: 22 (i) for which a temporary or permanent certificate of occupancy is 23 required and has not yet been issued; or 24 (ii) a residential condominium dwelling unit or residential cooper- 25 ative dwelling unit that is subject to an offering plan required by 26 section three hundred fifty-two-e of the general business law and such 27 unit has not been sold, or an economic interest in such unit has not 28 been transferred, by the person, partnership, corporation, company, 29 trust or association who has filed such plan. 30 Imputed cooperative phase one market value. The term "imputed cooper- 31 ative phase one market value" means the market value of a residential 32 cooperative dwelling unit in a residential cooperative property, calcu- 33 lated as the product of: 34 (i) the market value of such residential cooperative property as 35 determined by the department pursuant to chapter fifty-eight of the New 36 York city charter for the fiscal year in which the surcharge described 37 in this chapter is imposed; and 38 (ii) the quotient of (A) the shares of stock in such cooperative 39 corporation representing an interest in such residential cooperative 40 dwelling unit; divided by (B) the total shares of stock in such cooper- 41 ative corporation. 42 Notice of surcharge. The term "notice of surcharge" means a notice 43 issued by the department to an owner indicating that a covered property, 44 or, in the case of a residential cooperative property, a residential 45 cooperative dwelling unit, is, or may be, subject to the surcharge 46 imposed by this chapter, which includes the phase one market value or 47 phase two market value, as applicable, of such covered property or resi- 48 dential cooperative dwelling unit as determined by the department, and a 49 determination by the department that such covered property or residen- 50 tial cooperative dwelling unit is not a primary residence. 51 Owner. The term "owner" means: 52 (i) an owner or owners of real property classified as class one prop- 53 erty; 54 (ii) a tenant-stockholder of a cooperative corporation whose interest 55 in a portion of real property held by such corporation is represented by 56 shares of stock in such corporation, or such corporation; orS. 9009--C 101 A. 10009--C 1 (iii) an owner or owners of a residential condominium dwelling unit. 2 Phase one market value. The term "phase one market value" means: 3 (i) for a class one property, the market value of a covered property 4 as determined by the department pursuant to chapter fifty-eight of the 5 New York city charter for the fiscal year in which the surcharge 6 described by this chapter is imposed; and 7 (ii) for a class two property that is a residential condominium dwell- 8 ing unit, the market value of such residential condominium dwelling unit 9 as determined by the department pursuant to chapter fifty-eight of the 10 New York city charter for the fiscal year in which the surcharge 11 described by this chapter is imposed; and 12 (iii) for a class two property that is a residential cooperative prop- 13 erty, the imputed cooperative phase one market value of any residential 14 cooperative dwelling in such residential cooperative property. 15 Phase two market value. The term "phase two market value" means: 16 (i) for a class one property, the market value of a covered property 17 as determined by the department pursuant to chapter fifty-eight of the 18 New York city charter for the fiscal year in which the surcharge 19 described in this chapter is imposed; 20 (ii) for a class two property that is a residential condominium dwell- 21 ing unit, the market value of such residential condominium dwelling unit 22 as determined by the department pursuant to chapter fifty-eight of the 23 New York city charter for the fiscal year in which the surcharge 24 described in this chapter is imposed, provided that such market value 25 shall be determined using a method that considers sales of comparable 26 residential condominium dwelling units or comparable residential cooper- 27 ative dwelling units without regard to the restrictions described in 28 section five hundred eighty-one of the real property tax law or section 29 three hundred thirty-nine-y of the real property law; and 30 (iii) for a class two property that is a residential cooperative prop- 31 erty, the market value of any residential cooperative dwelling unit in 32 such residential cooperative property, as determined by the department 33 pursuant to chapter fifty-eight of the New York city charter for the 34 fiscal year in which the surcharge described in this chapter is imposed, 35 provided that such market value shall be determined using a method that 36 considers sales of comparable residential cooperative dwelling units or 37 comparable residential condominium dwelling units without regard to the 38 restrictions found in section five hundred eighty-one of the real prop- 39 erty tax law. 40 Primary residence. The term "primary residence" means the use of a 41 covered property, or, in the case of a residential cooperative property, 42 a residential cooperative dwelling unit, as of the taxable status date 43 immediately preceding the fiscal year in which the surcharge described 44 by this chapter is imposed, as a primary residence of (i) one or more of 45 the covered owners, or an immediate family member of one or more of the 46 covered owners, provided such covered owners are natural persons; or 47 (ii) one or more lessees, and any sub-lessees to which a lessee has 48 sublet the covered property or residential cooperative dwelling unit 49 pursuant to subdivision two of section two hundred twenty-six-b of the 50 real property law, provided any such lessee or sub-lessee is a natural 51 person occupying such covered property or residential cooperative dwell- 52 ing unit pursuant to a bona fide lease agreement negotiated in an arms- 53 length transaction with a term of not less than one year. For purposes 54 of this chapter, the phrase "immediate family member" means a spouse, 55 child, sibling, parent, grandparent, or grandchild.S. 9009--C 102 A. 10009--C 1 Residential condominium dwelling unit. The term "residential condomin- 2 ium dwelling unit" means a unit, as defined in section three hundred 3 thirty-nine-y of the real property law, held in a condominium form of 4 ownership and used as residential real property, other than: (i) such a 5 unit that is residential cooperative property; or (ii) such a unit that 6 includes more than three dwelling units and all such dwelling units are 7 held by the same owner, except where the department determines that a 8 unit has been divided into more than three units to avoid application of 9 the surcharge. 10 Residential cooperative dwelling unit. The term "residential cooper- 11 ative dwelling unit" means a dwelling unit in real property held by a 12 cooperative corporation where an owner is a tenant-stockholder of such 13 cooperative corporation and such dwelling unit is used as residential 14 real property. 15 Residential cooperative property. The term "residential cooperative 16 property" means real property owned or leased by a cooperative corpo- 17 ration and that contains one or more residential cooperative dwelling 18 units. 19 Surcharge. The term "surcharge" means the surcharge imposed pursuant 20 to section 11-3202 of this chapter. 21 Taxable status date. The term "taxable status date" has the meaning 22 set forth in section fifteen hundred seven of the New York city charter. 23 § 11-3202 Imposition of surcharge. In accordance with article thirty-C 24 of the tax law, in addition to any other tax or assessment imposed by 25 this chapter or other law, and notwithstanding section three hundred 26 five of the real property tax law, a surcharge is hereby imposed on a 27 covered property or, in the case of a covered property that is a resi- 28 dential cooperative property, a residential cooperative dwelling unit, 29 that is not a primary residence, provided that (a) for fiscal years 30 beginning on or after July first, two thousand twenty-six, and before 31 July first, two thousand twenty-eight, the phase one market value of 32 such covered property that is in class one is equal to or greater than 33 five million dollars, the phase one market value of such covered proper- 34 ty that is a residential condominium dwelling unit is equal to or great- 35 er than one million dollars, or, in the case of a covered property that 36 is a residential cooperative property, the phase one market value of a 37 residential cooperative dwelling unit within such residential cooper- 38 ative property is equal to or greater than one million dollars, and (b) 39 for fiscal years beginning on or after July first, two thousand twenty- 40 eight, the phase two market value of such covered property or, in the 41 case of a covered property that is a residential cooperative property, 42 such residential cooperative dwelling unit, is equal to or greater than 43 five million dollars. 44 § 11-3203 Primary residence. (a) Determination of primary residency. 45 (1) The department shall make, on an annual basis, an initial determi- 46 nation that a covered property, or, in the case of a covered property 47 that is a residential cooperative property, a residential cooperative 48 dwelling unit, that has a market value amount equal to or greater than 49 the applicable phase one or phase two market value threshold established 50 in section 11-3202 of this chapter, is not a primary residence. The 51 department shall make a determination of primary residence based on 52 factors identified by rules of the department, including but not limited 53 to whether such covered property or residential cooperative dwelling 54 unit was occupied in aggregate for a majority of days during a calendar 55 year by a covered owner of such covered property or residential cooper-S. 9009--C 103 A. 10009--C 1 ative dwelling unit. The department shall make such initial determi- 2 nation based on information available to such department. 3 (2) The department shall provide notice to the owner of a covered 4 property, or, in the case of a covered property that is a residential 5 cooperative property, a residential cooperative dwelling unit, of such 6 initial determination, provided that, for the fiscal year beginning July 7 first, two thousand twenty-six, such department shall provide such 8 notice no later than August thirtieth, two thousand twenty-six. Such 9 notice shall include an opportunity for such owner to submit proof of 10 primary residence to the satisfaction of such department in accordance 11 with a time period established by rule by the department. The department 12 may require that such owner provide a certification that such covered 13 property or residential cooperative dwelling unit is a primary resi- 14 dence, as well as documentation demonstrating: 15 (i) that a covered owner provided the address of such covered property 16 or residential cooperative dwelling unit as such covered owner's perma- 17 nent home address on the New York state resident income tax return filed 18 by such covered owner for the calendar year that ends immediately 19 preceding the fiscal year in which the surcharge is imposed; 20 (ii) such covered property or residential cooperative dwelling unit 21 received a real property tax exemption pursuant to section four hundred 22 twenty-five of the real property tax law during the fiscal year imme- 23 diately preceding the fiscal year in which the surcharge is imposed or 24 the owner of such covered property or residential cooperative dwelling 25 unit received a tax credit pursuant to subsection (eee) of section six 26 hundred six of the tax law for such covered property or residential 27 cooperative dwelling unit for the calendar year immediately preceding 28 the fiscal year in which the surcharge is imposed; or 29 (iii) such covered property or residential cooperative dwelling unit 30 is the primary residence of one or more lessees or a sub-lessees to 31 which a lessee has sublet such covered property or residential cooper- 32 ative dwelling unit pursuant to subdivision two of section two hundred 33 twenty-six-b of the real property law or an immediate family member of a 34 covered owner. 35 (3) After consideration of a submission of proof of primary residence 36 by an owner pursuant to paragraph two of this subdivision, and other 37 available information, the department shall determine whether such 38 covered property or residential cooperative dwelling unit is not a 39 primary residence. Such determination shall constitute a final determi- 40 nation of the department. 41 (4) Where an owner fails to submit proof of primary residence pursuant 42 to paragraph two of this subdivision, the initial determination made by 43 the department pursuant to paragraph one of this subdivision shall 44 constitute a final determination of such department and shall not be 45 subject to challenge pursuant to section 11-3206 of this chapter, unless 46 such owner has challenged such initial determination of primary resi- 47 dence pursuant to paragraph two of subdivision (b) of section 11-3206 of 48 this chapter. 49 (5) The department shall provide any notice required by this section 50 by electronic means and may require that an owner submit any certif- 51 ication or documentation by electronic means, provided that the depart- 52 ment may promulgate rules authorizing other forms of communication for 53 any such owner or owners for whom the department does not have an elec- 54 tronic address available, or for whom communication by electronic means 55 is not practicable or feasible.S. 9009--C 104 A. 10009--C 1 (6) Failure to provide the notice required by this section shall not 2 affect the validity of the imposition of the surcharge authorized by 3 this chapter. 4 (b) The department may promulgate rules to: 5 (1) specify additional factors or documentation that may assist in the 6 initial or final determination of whether a covered property, or, in the 7 case of a covered property that is a residential cooperative property, a 8 residential cooperative dwelling unit, is a primary residence; and 9 (2) establish a process through which the department may audit any 10 certification or documentation of primary residency submitted pursuant 11 to this section within six years of such submission. 12 § 11-3204 Surcharge rates. The department shall calculate the 13 surcharge imposed pursuant to section 11-3202 of this chapter as 14 follows: 15 (a) For fiscal years beginning on or after July first, two thousand 16 twenty-six, and before July first, two thousand twenty-eight, (1) for 17 covered property that is in class one, where the phase one market value 18 is (i) greater than or equal to five million dollars, but less than or 19 equal to fifteen million dollars, at a rate of 0.8 percent; (ii) greater 20 than fifteen million dollars, but less than or equal to twenty-five 21 million dollars, at a rate of 1.05 percent; (iii) greater than twenty- 22 five million dollars, at a rate of 1.3 percent; and (2) for covered 23 property that is a residential condominium dwelling unit or, in the case 24 of a residential cooperative property, a residential cooperative dwell- 25 ing unit, where the phase one market value is (i) greater than or equal 26 to one million dollars, but less than or equal to three million dollars, 27 at a rate of 4.0 percent; (ii) greater than three million dollars, but 28 less than or equal to five million dollars, at a rate of 5.25 percent; 29 (iii) greater than five million dollars, at a rate of 6.5 percent. 30 (b) For fiscal years beginning on or after July first, two thousand 31 twenty-eight, for covered property or, in the case of a residential 32 cooperative property, a residential cooperative dwelling unit, where the 33 phase two market value is (1) greater than or equal to five million 34 dollars, but less than or equal to fifteen million dollars, at a rate of 35 0.8 percent; (2) greater than fifteen million dollars, but less than or 36 equal to twenty-five million dollars, at a rate of 1.05 percent; (3) 37 greater than twenty-five million dollars, at a rate of 1.3 percent. 38 § 11-3205 Administration of surcharge. (a) The department shall add 39 the surcharge imposed pursuant to section 11-3202 of this chapter to the 40 statement of account required pursuant to section 11-129 of this title 41 of a covered property. In the case of a residential cooperative proper- 42 ty, the department shall add to the statement of account of such proper- 43 ty the sum of any surcharges authorized by this chapter for each resi- 44 dential cooperative dwelling unit in such residential cooperative 45 property where such dwelling unit: (1) has a phase one or phase two 46 market value equal to, or greater than, the threshold provided in 47 section 11-3202 of this chapter; and (2) does not serve as a primary 48 residence. Any abatement, credit or exemption of the real property taxes 49 owed by such covered property shall not apply to such surcharge. 50 (b) Such surcharge shall be due and payable in the same manner as real 51 property taxes are due and payable pursuant to section fifteen hundred 52 nineteen-a of the New York city charter. Such surcharge and any penal- 53 ties authorized pursuant to paragraph three of subdivision (b) of 54 section 11-3203 of this chapter, and the interest imposed thereon in 55 accordance with section 11-224.1 of this title, shall continue to be a 56 lien on the covered property. Such lien shall be a tax lien within theS. 9009--C 105 A. 10009--C 1 meaning of sections 11-301, 11-319 and 11-401 of this title and may be 2 sold, enforced or foreclosed in the manner provided in chapters three or 3 four of this title or section 11-3208 of this chapter. 4 (c) The department shall administer and enforce this surcharge, to the 5 greatest extent practicable not inconsistent with this chapter, in the 6 same manner used to administer and enforce real property taxes. For 7 purposes of section fifteen hundred four of the New York city charter, 8 the term "real property taxes" shall include the surcharge imposed 9 pursuant to section 11-3202 of this chapter. Notwithstanding the preced- 10 ing sentences of this subdivision, section 11-207 of this title shall 11 not apply to this surcharge and this surcharge shall not constitute a 12 real property tax for the purposes of section fifteen hundred twenty- 13 seven of such charter. For the purposes of the preparation, publication, 14 addition or adjustment of the annual record of assessed valuation or 15 assessment rolls, or any processes required by law to produce such 16 rolls, the department shall only be required to publish information 17 relating to phase two market values of covered properties in relation to 18 this surcharge. 19 (d) The books of annual records of the phase one or phase two market 20 value, as applicable, of covered property shall be opened to the public 21 on the same dates and in the same manner as the books of the assessed 22 valuation of real estate pursuant to section fifteen hundred ten of the 23 New York city charter. For the fiscal year beginning July first, two 24 thousand twenty-six, the books of annual records of the phase one market 25 value shall be opened to the public not later than the date on which a 26 notice of surcharge is issued to an owner of a covered property, or, in 27 the case of a residential cooperative property, to a cooperative corpo- 28 ration, and remain open during the usual business hours for public 29 inspection and examination until December thirty-first, two thousand 30 twenty-six. The commissioner, previous to and during the time such books 31 are open to public inspection, shall advertise such fact in the city 32 record and in such other newspaper or newspapers published in the 33 several boroughs as may be authorized by the director of the city record 34 with the approval of the mayor and the comptroller. The provisions of 35 this subdivision shall not affect any time frame in which the books of 36 annual record are open for the purposes of inspection of annual valu- 37 ation for the purposes of the assessment of real property taxes. 38 (e) Notwithstanding subdivision (b) of this section, any surcharge 39 imposed on a covered property in the fiscal year commencing on July 40 first, two thousand twenty-six, shall be due and payable on the same 41 date as the second semi-annual installment of real property taxes is 42 due, as described in section fifteen hundred nineteen-a of the charter 43 of the city of New York. 44 (f) Notwithstanding any provision of law to the contrary, where the 45 department adds the sum of any surcharges imposed pursuant to section 46 11-3202 of this chapter for a residential cooperative dwelling unit 47 pursuant to subdivision (a) of this section to the statement of account 48 of a residential cooperative property, each such surcharge shall be 49 collected by the cooperative corporation from the tenant-stockholder of 50 such cooperative corporation whose interest in each such residential 51 cooperative dwelling unit is represented by shares of stock in such 52 corporation. 53 (g) Notwithstanding any provision of law to the contrary, the 54 surcharge imposed on a covered property pursuant to section 11-3202 of 55 this chapter shall be separate and distinct from any other tax levied on 56 real property. Any revenue collected as a result of the imposition ofS. 9009--C 106 A. 10009--C 1 such surcharge shall not be included in the calculation of the tax levy 2 for purposes of determining class shares pursuant to article eighteen of 3 the real property tax law, shall not be subject to apportionment among 4 classes of real property, and shall not be considered when establishing 5 tax rates for any class of property. Such revenue shall be considered 6 receipts other than taxes on real property for the purposes of section 7 fifteen hundred fifteen of the New York city charter. 8 (h) Upon receipt of a notice of surcharge by a residential cooperative 9 property, the cooperative corporation that holds such residential coop- 10 erative property shall provide such notice to the owners of the residen- 11 tial cooperative dwelling unit that is the subject of such notice as 12 soon as practicable. 13 (i) The department may promulgate any rules: 14 (1) necessary to implement this chapter, including, but not limited 15 to, rules: (i) to address a change in ownership of a covered property or 16 a residential cooperative dwelling unit, or illness or death of an owner 17 of a covered property or residential cooperative dwelling unit; (ii) to 18 authorize persons other than a covered owner to submit proof of primary 19 residency on behalf of a covered owner; (iii) relating to requirements 20 for provision of notice of surcharge, including rules designating such 21 notice as the statement of account required pursuant to section 11-129 22 of this title, the assessment roll required pursuant to chapter fifty- 23 eight of the New York city charter, or a combination including such 24 statement and such roll; or (iv) to establish when a sale of a residen- 25 tial condominium dwelling unit, or a transfer of an economic interest in 26 a residential cooperative dwelling unit, has occurred for purposes of 27 whether such residential condominium dwelling unit or residential coop- 28 erative dwelling constitutes excluded property. 29 (2) to establish penalties not exceeding fifty percent of the 30 surcharge imposed on a covered property by this chapter if, after notice 31 and a hearing, the department determines that: 32 (i) any certification or documentation submitted to the department 33 contains inaccurate or misleading information that: (A) is material to 34 the determination of the imposition of such surcharge, including a 35 determination relating to primary residence; and (B) was submitted 36 negligently or in bad faith; or 37 (ii) a covered property that is a residential condominium unit has 38 been divided into more than three units to avoid application of such 39 surcharge and the owner of such covered property has made such division 40 in bad faith. 41 (j) The commissioner of the department may subpoena and require the 42 attendance of witnesses and the production of books, papers and docu- 43 ments to secure information pertinent to the determination of the 44 surcharge, including a determination relating to primary residence. 45 § 11-3206 Administrative and judicial review. (a) When used in this 46 section, the following terms have the following meanings: 47 Excessive. The term "excessive" means, as it related to the value of a 48 covered property, an assessment of the market value of a covered proper- 49 ty, or, in the case of a residential cooperative property, a residential 50 cooperative dwelling unit, made for the purposes of the surcharge which 51 exceeds the full value of such covered property or residential cooper- 52 ative dwelling unit. 53 Market value. The term "market value" means the phase one market value 54 or phase two market value, as applicable for the fiscal year for which 55 the surcharge is imposed.S. 9009--C 107 A. 10009--C 1 Unlawful. The term "unlawful" means, as it relates to the value of a 2 covered property an assessment of the market value of covered property, 3 or, in the case of a residential cooperative property, a residential 4 cooperative dwelling unit, made for the purposes of the surcharge where: 5 (i) such covered property or residential cooperative dwelling unit is 6 not subject to the surcharge imposed by this chapter; 7 (ii) such covered property or residential cooperative dwelling unit is 8 entirely outside the boundaries of the city of New York; or 9 (iii) such covered property or residential cooperative dwelling unit 10 cannot be identified from the assessment roll description or tax map 11 land parcel number on the assessment roll, provided that, in the case of 12 residential cooperative property, the market value is not unlawful where 13 an entry on an assessment roll identifies a residential cooperative 14 dwelling unit by the street address and unit number of such residential 15 cooperative dwelling unit; or 16 (iv) such assessment has been made by a person or body without author- 17 ity to make such entry. 18 (b) During the time that the books of annual records of the phase one 19 market value or phase two market value of a covered property are open 20 for public inspection, an owner of covered property claiming to be 21 aggrieved by the market value of such covered property, or, in the case 22 of a residential cooperative property, of a residential cooperative 23 dwelling unit within such residential cooperative property, determined 24 for purposes of the surcharge imposed pursuant to section 11-3202 of 25 this chapter may apply to the tax commission for correction of such 26 market value. Such application shall be duly verified by a person having 27 personal knowledge of the facts stated therein, provided that if the 28 application is signed by someone other than the person or an officer of 29 the corporation claiming to be aggrieved, the application must be accom- 30 panied by a duly executed power of attorney and any other documentation 31 as prescribed by the rules of the tax commission. An owner may chal- 32 lenge, pursuant to this section, the following: 33 (1) the market value of such covered property or residential cooper- 34 ative dwelling unit, as determined by the department; 35 (2) an initial determination by the department that such covered prop- 36 erty or residential cooperative dwelling unit is not a primary resi- 37 dence, provided that such owner or cooperative corporation challenges 38 the market value of such covered property or residential cooperative 39 dwelling unit pursuant to paragraph one of this subdivision at the same 40 time as such initial determination; and 41 (3) a final determination by the department that such covered property 42 or residential cooperative dwelling unit is not a primary residence. 43 (c) The grounds for review shall be that the market value determined 44 by the department is excessive or unlawful, or that the covered proper- 45 ty, or, in the case of a residential cooperative property, the residen- 46 tial cooperative dwelling unit, is a primary residence. 47 (d) The application shall be on a form prescribed by the tax commis- 48 sion and shall contain a statement specifying the respect in which the 49 market value is excessive or unlawful, or the respect in which the 50 covered property, or, in the case of a residential cooperative property, 51 the residential cooperative dwelling unit, is a primary residence, and 52 the reduction in market value or determination of primary residency 53 sought. 54 (e) The filing of an application in the manner and form hereinabove 55 described shall be prerequisite to the review of a final determination 56 of the tax commission as provided in section one hundred sixty-six ofS. 9009--C 108 A. 10009--C 1 the New York city charter. Such application shall be filed in the office 2 of the tax commission in the borough in which such covered property is 3 situated. Employees of the commission assigned by the president for the 4 purpose of receiving such applications are hereby authorized to adminis- 5 ter oaths between the first day of November, two thousand twenty-six, 6 and the first day of March, two thousand twenty-seven, and between the 7 fifteenth day of January and the first day of March in any year there- 8 after. 9 (f) Except as otherwise provided in this section, an application shall 10 be filed, and the tax commission shall review an application in the same 11 manner and between the same dates as an application for review of an 12 assessment pursuant to sections one hundred sixty-four, one hundred 13 sixty-four-a, one hundred sixty-four-b, one hundred sixty-five, one 14 hundred sixty-six, and fifteen hundred twelve of the New York city char- 15 ter and subchapter one of chapter two of this title. Notwithstanding any 16 other provision of law to the contrary, where an application is filed 17 for review of the market value of real estate for the fiscal year begin- 18 ning July first, two thousand twenty-six, such application may be filed 19 between the date on which a notice of surcharge is issued to an owner of 20 a covered property, or, in the case of a residential cooperative proper- 21 ty, to a cooperative corporation, and the last date on which an applica- 22 tion may be filed pursuant to this section for review of the market 23 value of a covered property for the fiscal year beginning July first, 24 two thousand twenty-seven, and the tax commission shall review an appli- 25 cation filed pursuant to this section for review of the market value of 26 a covered property for the fiscal year beginning July first, two thou- 27 sand twenty-eight, in the same manner and between the same dates as an 28 application filed pursuant to this section for review of the market 29 value of real estate for the fiscal year beginning July first, two thou- 30 sand twenty-seven. 31 (g) An application filed with the tax commission pursuant to this 32 section or a determination by the tax commission pursuant to this 33 section shall not be given any force or effect in any other administra- 34 tive proceeding before the tax commission or in any subsequent judicial 35 proceeding brought to review any other determination by the tax commis- 36 sion, provided that, where the tax commission makes a determination with 37 regard to a residential cooperative dwelling unit in a residential coop- 38 erative property, the tax commission shall consider such determination 39 in any proceeding relating to any other residential cooperative dwelling 40 unit in such residential cooperative property for the same fiscal year. 41 (h) An owner of a covered property may challenge, in accordance with 42 title one of article seven of the real property tax law, and notwith- 43 standing any provision of such article seven to the contrary, a final 44 determination by the tax commission pursuant to this section on the 45 grounds for review described in subdivision (c) of this section. A chal- 46 lenge pursuant to this subdivision must be commenced within the time 47 specified by section one hundred sixty-six of the New York city charter. 48 § 11-3207 Information sharing. The city shall, upon request by the 49 commissioner of taxation and finance, provide the department of taxation 50 and finance with any records in its possession used or considered in 51 determining whether a covered property, or, in the case of a residential 52 cooperative property, a residential cooperative dwelling unit, is not a 53 primary residence. The department of taxation and finance shall, upon 54 request by such city provide such city with any records in its 55 possession contained in any return filed pursuant to article thirty of 56 the tax law or disclosed by any investigation of tax liability underS. 9009--C 109 A. 10009--C 1 such article for the purposes of implementing the surcharge. Information 2 shared pursuant to this subdivision shall not be subject to disclosure 3 pursuant to article six of the public officers law. 4 § 11-3208 Proceedings to recover surcharge. (a) Whenever any owner, 5 or, in the case of a residential cooperative property, a cooperative 6 corporation, subject to the surcharge imposed pursuant to section 7 11-3202 of this chapter shall fail to pay such surcharge or any inter- 8 est, as herein provided, the corporation counsel shall, upon the request 9 of the commissioner, bring or cause to be brought an action to enforce 10 the payment of the same on behalf of the city of New York in any court 11 of the state of New York or of any other state or of the United States. 12 (b) As an additional or alternate remedy, the commissioner may issue a 13 warrant, directed to the city sheriff commanding such sheriff to levy 14 upon and sell the real and personal property of such owner or cooper- 15 ative corporation that may be found within the city, for the payment of 16 the amount thereof, with any interest, and the cost of executing the 17 warrant, and to return such warrant to the commissioner and to pay to 18 such sheriff the money collected by virtue thereof within sixty days 19 after the receipt of such warrant. The city sheriff shall within five 20 days after the receipt of the warrant file with the county clerk a copy 21 thereof, and thereupon such clerk shall enter in the judgment docket the 22 name of the such owner or cooperative corporation mentioned in the 23 warrant and the amount of the surcharge and interest for which the 24 warrant is issued and the date when such copy is filed. Thereupon the 25 amount of such warrant so docketed shall become a lien upon the title to 26 and the interest in real and personal property of such owner or cooper- 27 ative corporation against whom the warrant is issued. The city sheriff 28 shall then proceed upon the warrant in the same manner, and with like 29 effect, as that provided by law in respect to executions issued against 30 property upon judgments of a court of record and for services in execut- 31 ing the warrant such sheriff shall be entitled to the same fees, which 32 such sheriff may collect in the same manner. In the discretion of the 33 commissioner, a warrant of like terms, force and effect may be issued 34 and directed to an officer or employee of the department, and in the 35 execution thereof such officer or employee shall have all the powers 36 conferred by law upon sheriffs, but shall be entitled to any fee or 37 compensation in excess of the actual expenses paid in the performance of 38 such duty. If a warrant is returned not satisfied in full, the commis- 39 sioner may from time to time issue new warrants and shall also have the 40 same remedies to enforce the amount due thereunder as if the city had 41 recovered judgment therefor and execution thereon had been returned 42 unsatisfied. 43 (c) The commissioner, if such commissioner finds that the interests of 44 the city will not thereby be jeopardized, and upon such conditions as 45 the commissioner may require, may release any property from the lien of 46 any warrant or vacate such warrant for unpaid taxes, additions to tax, 47 penalties and interest filed pursuant to subdivision (b) of this 48 section, and such release or vacating of the warrant may be recorded in 49 the office of any recording officer in which such warrant has been 50 filed. The clerk shall thereupon cancel and discharge as of the original 51 date of docketing the vacated warrant. 52 (d) The procedures provided in this section for the enforcement of the 53 surcharge against any such owner or cooperative corporation shall be in 54 addition to any other methods provided under any other provision of law 55 for the enforcement such surcharge.S. 9009--C 110 A. 10009--C 1 § 4. Subdivision b of section 153 of the New York city charter, as 2 amended by local law number 76 of the city of New York for the year 3 1984, is amended to read as follows: 4 b. The tax commission shall be charged with the duty of reviewing and 5 correcting all assessments of real property made pursuant to the 6 provisions of section fifteen hundred six and all determinations of 7 market values of real property made pursuant to chapter thirty-two of 8 title eleven of the administrative code of the city of New York. 9 § 5. Severability. The provisions of this act shall be severable, and 10 if the application of any clause, sentence, paragraph, subdivision, 11 section or part of this act to any person or circumstance shall be 12 adjudged by any court of competent jurisdiction to be invalid, such 13 judgment shall not necessarily affect, impair or invalidate the applica- 14 tion of any such clause, sentence, paragraph, subdivision, section, or 15 part of this act or remainder thereof, as the case may be, to any other 16 person or circumstance, but shall be confined in its operation to the 17 clause, sentence, paragraph, subdivision, section or part thereof 18 directly involved in the controversy in which such judgment shall have 19 been rendered. 20 § 6. This act shall take effect immediately; provided, however, that 21 article 30-C of the tax law, as added by section two of this act, and 22 chapter 32 of title 11 of the administrative code of the city of New 23 York, as added by section three of this act, shall apply to fiscal years 24 commencing on or after July 1, 2026; and provided further that this act 25 shall expire and be deemed repealed on June 30, 2031. 26 PART II 27 Section 1. Subparagraph (iii) of paragraph 1 of subdivision b of 28 section 1612 of the tax law, as added by section 1 of part EE of chapter 29 59 of the laws of 2019, the opening paragraph of clause (A) as amended 30 by section 1-a of part S of chapter 39 of the laws of 2019 and clause 31 (B) as amended by chapter 528 of the laws of 2023, is amended to read as 32 follows: 33 (iii) less any additional vendor's fees. Additional vendor's fees 34 shall be calculated as follows: 35 (A) when a vendor track is located within region one and is located 36 within Orange county or region two of development zone two, as such zone 37 is defined in section thirteen hundred ten of the racing, pari-mutuel 38 wagering and breeding law, or is located within region six of such 39 development zone two and is located within Ontario county, the addi- 40 tional vendor fee received by the vendor track shall be calculated 41 pursuant to subclause one of this clause; provided, however, such addi- 42 tional vendor fee shall not exceed ten percent. 43 (1) The additional vendor fee is a percentage of the total revenue 44 wagered at the vendor track after payout for prizes pursuant to this 45 chapter. That percentage is calculated by subtracting the effective tax 46 rate on all taxable gross gaming revenue paid by a gaming facility with- 47 in the same region as the vendor track from the percentage that is nine- 48 ty percent less [than] the [percentage of the] vendor track's vendor fee 49 percentage and less the additional vendor fee percentage authorized 50 pursuant to clause (D) of this subparagraph. For purposes of this 51 clause, Seneca and Wayne counties shall be deemed to be located within 52 region six of development zone two. 53 (2) The additional vendor fee paid pursuant to this clause shall 54 commence with the state fiscal year beginning on April first, two thou-S. 9009--C 111 A. 10009--C 1 sand nineteen and shall be paid to a vendor track no later than ninety 2 days after the close of the fiscal year. The additional vendor fee 3 authorized by this clause shall only be applied to revenue wagered at a 4 vendor track while a gaming facility in the same region as that vendor 5 track is open and operating pursuant to an operation certificate issued 6 pursuant to section thirteen hundred thirty-one of the racing, pari-mu- 7 tuel wagering and breeding law. 8 (B) for a vendor track that is located within Oneida county, within 9 fifteen miles of a Native American class III gaming facility, such addi- 10 tional vendor fee shall be six and four-tenths percent of the total 11 revenue wagered at the vendor after payout for prizes pursuant to this 12 chapter. The vendor track shall forfeit this additional vendor fee for 13 any time period that the vendor track does not maintain at least seventy 14 percent of full-time equivalent employees as they employed in the year 15 two thousand sixteen. 16 (C) (1) for a vendor track that is located within development zone one 17 as defined by section thirteen hundred ten of the racing, pari-mutuel 18 wagering and breeding law, such additional vendor fee shall be six and 19 five-tenths percent of the total revenue wagered at the vendor track 20 after payout for prizes pursuant to this chapter. At the conclusion of 21 each fiscal year, if the effective tax rate on all taxable gross gaming 22 revenue paid by a gaming facility that is licensed under title two-A of 23 article thirteen of the racing, pari-mutuel wagering and breeding law, 24 and located within New York city is below forty-four percent, the vendor 25 track shall receive an additional calculated amount no later than ninety 26 days after the close of the fiscal year. For the purposes of this 27 clause, an additional calculated amount shall be the differential 28 between forty-four percent and the effective tax rate on all taxable 29 gross gaming revenue paid by the applicable gaming facility applied to 30 revenue wagered at such vendor track after payout for prizes pursuant to 31 this chapter. The vendor track must maintain at least ninety percent of 32 full-time equivalent gaming employees as they employed in the year two 33 thousand twenty-five to receive the additional vendor fee and additional 34 calculated amount. The additional vendor fee and additional calculated 35 amount authorized by this clause shall only be applied to revenue 36 wagered at a vendor track while the applicable gaming facility refer- 37 enced pursuant to this clause is open and operating pursuant to an oper- 38 ation certificate issued pursuant to section thirteen hundred thirty-one 39 of the racing, pari-mutuel wagering and breeding law. 40 (2) To be eligible to receive the additional vendor fee authorized 41 pursuant to this clause, a vendor track must submit an application to 42 the gaming commission. Such application shall identify the number of 43 full-time equivalent gaming employees employed at the facility in calen- 44 dar year two thousand twenty-five. 45 (3) The additional vendor fee authorized by this clause shall be 46 applicable commencing on the date that an eligible facility submits 47 their application under subclause two of this clause to the gaming 48 commission. 49 (D) (1) five percent for the following: 50 (I) any video lottery gaming facility located in either Nassau or 51 Suffolk county that is operated by a corporation established pursuant to 52 section five hundred two of the racing, pari-mutuel wagering and breed- 53 ing law; 54 (II) a vendor track located within region one and located within 55 Orange county;S. 9009--C 112 A. 10009--C 1 (III) any vendor track located within fifteen miles of a Native Ameri- 2 can class III gaming facility as defined in 25 U.S.C §2703(8); and 3 (IV) a vendor track located more than fifteen miles but less than 4 fifty miles from a destination resort gaming facility authorized pursu- 5 ant to article thirteen of the racing, pari-mutuel wagering and breeding 6 law. 7 (2) To be eligible to receive the additional vendor fee authorized 8 pursuant to this clause, a vendor track or video lottery gaming facility 9 must submit an application to the gaming commission. Such application 10 shall identify the number of full-time equivalent gaming employees 11 employed at the facility in calendar year two thousand twenty-five. 12 (3) On July first of each year beginning on July first, two thousand 13 twenty-seven, each track or facility shall certify to the gaming commis- 14 sion the number of full-time equivalent gaming employees employed by the 15 facility for the preceding calendar year. If the number of full-time 16 equivalent gaming employees certified to the gaming commission is less 17 than the number of full-time equivalent gaming employees employed by the 18 facility in the year two thousand twenty-five, the gaming commission may 19 reduce the additional vendor fee received by such track or facility 20 pursuant to this clause by the following amount: 21 (I) if the number of certified full-time equivalent gaming employees 22 is less than one hundred percent but more than or equal to ninety-five 23 percent of the original amount, one percent; 24 (II) if the number of certified full-time equivalent gaming employees 25 is less than ninety-five percent but more than or equal to ninety 26 percent of the original amount, two percent; 27 (III) if the number of certified full-time equivalent gaming employees 28 is less than ninety percent but more than or equal to eighty-five 29 percent of the original amount, three percent; 30 (IV) if the number of certified full-time equivalent gaming employees 31 is less than eighty-five percent but more than or equal to eighty 32 percent of the original amount, four percent; and 33 (V) if the number of certified full-time equivalent gaming employees 34 is less than eighty percent of the original amount, the full five 35 percent. 36 (4) The additional vendor fee authorized by this clause shall be 37 applicable commencing on the date that an eligible facility submits its 38 application under subclause two of this clause to the gaming commission. 39 § 2. 1. The gaming commission shall undertake a study to (a) analyze 40 the effects of potential changes in commercial casino tax rates and 41 video lottery gaming vendor fees on the growth or limitation of each 42 component of the gaming industry, state and local revenues, and educa- 43 tion aid; (b) determine factors that should be considered when estab- 44 lishing a tax rate and vendor fee for licensed gaming facilities; and 45 (c) propose options regarding vendor fees and tax rates using the infor- 46 mation gathered as part of the study. 47 2. The study conducted pursuant to this section shall not be subject 48 to section 163 of the state finance law. 49 § 3. To ensure public disclosure of the additional vendor fee, each 50 vendor track or video lottery gaming facility receiving an additional 51 vendor fee pursuant to this act shall submit a report to the gaming 52 commission by September 30, 2029, detailing how each such vendor track 53 or video lottery gaming facility used the additional vendor fees author- 54 ized by clauses (C) and (D) of subparagraph (iii) of paragraph 1 of 55 subdivision b of section 1612 of the tax law, including information onS. 9009--C 113 A. 10009--C 1 compensation, capital investment costs, and other expenditures. The 2 gaming commission shall post each report on its website. 3 § 4. This act shall take effect immediately; provided, however, that 4 sections one and two of this act shall expire and be deemed repealed 3 5 years after such date; provided further, however, that section three of 6 this act shall expire and be deemed repealed on December 31, 2029; and 7 provided further, however, that the amendments to clause (B) of subpara- 8 graph (iii) of paragraph 1 of subdivision b of section 1612 of the tax 9 law made by section one of this act shall not affect the repeal of such 10 clause and shall expire and be deemed repealed therewith. 11 PART JJ 12 Section 1. (a) Notwithstanding any provision of law, rule or regu- 13 lation to the contrary, any site for which (i) a brownfield cleanup 14 agreement with the department of environmental conservation was entered 15 into prior to December 20, 2013 with respect to a site located at the 16 corner of Broadway and Spencer Street in downtown Albany, approximately 17 900 feet west of the Hudson River, Albany county, and (ii) which 18 received a certificate of completion on or before December 31, 2017, 19 shall be a qualified site for purposes of the brownfield redevelopment 20 tax credits available to such a site pursuant to section 21 of the tax 21 law as in effect for such a site as of the effective date of this act 22 provided that both the site preparation credit component and the on-site 23 groundwater remediation credit component shall be allowed for all eligi- 24 ble costs incurred on such a site prior to and within the tax year in 25 which qualified tangible property on such a site is placed in service, 26 and for a five year period (60 months) following the year such property 27 is first placed in service upon such a site, provided, such a date 28 occurs prior to the 2031 tax year, and the tangible property credit 29 component shall be allowed for all eligible costs incurred on such a 30 site prior to and within the tax year in which qualified tangible prop- 31 erty on such a site is placed in service, and for a ten year period (120 32 months) following the year such property is first placed in service upon 33 such a site, provided such a date occurs prior to the 2031 tax year. 34 (b) In addition, any site for which (i) a brownfield cleanup agreement 35 with the department of environmental conservation was entered into prior 36 to December 20, 2013 with respect to a site located at the corner of 37 Broadway and Spencer Street in downtown Albany, approximately 900 feet 38 west of the Hudson River, Albany county, and (ii) which received a 39 certificate of completion on or before December 31, 2017, shall be 40 eligible to claim the tax credit for remediated brownfields available to 41 such a site pursuant to section 22 of the tax law as in effect for such 42 a site as of the effective date of this act provided the benefit period 43 as applicable thereto shall be deemed to be a ten-consecutive-tax-year 44 period beginning with the tax year in which qualified tangible property 45 on such a site is placed in service where said benefit period shall 46 begin no later than the 2031 tax year. 47 (c) Further, any site for which (i) a brownfield cleanup agreement 48 with the department of environmental conservation was entered into prior 49 to December 20, 2013 with respect to a site located at the corner of 50 Broadway and Spencer Street in downtown Albany, approximately 900 feet 51 west of the Hudson River, Albany county, and (ii) which received a 52 certificate of completion on or before December 31, 2017, shall be a 53 qualified site for purposes of claiming the tax credit for remediated 54 brownfields available to such a site pursuant to section 22 of the taxS. 9009--C 114 A. 10009--C 1 law, provided that such developer as defined under section 22 of the tax 2 law has purchased or in any other way has been conveyed all or any 3 portion of such a site from any other party who or which has been issued 4 a certificate of completion with respect to such site and further 5 provided that such purchase or conveyance occurs no later than the 2031 6 tax year. 7 § 2. (a) Notwithstanding any provision of law, rule or regulation to 8 the contrary, any site for which (i) a brownfield cleanup agreement with 9 the department of environmental conservation was entered into prior to 10 December 22, 2007 with respect to a site located at 555 West 34th 11 Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues 12 in Manhattan, New York County, and (ii) which received a certificate of 13 completion on or before December 19, 2012, shall be a qualified site for 14 purposes of the brownfield redevelopment tax credits available to such a 15 site pursuant to section 21 of the tax law as in effect for such a site 16 as of the effective date of this act provided that both the site prepa- 17 ration credit component and the on-site groundwater remediation credit 18 component shall be allowed for all eligible costs incurred on such a 19 site prior to and within the tax year in which qualified tangible prop- 20 erty on such a site is placed in service, and for a five year period (60 21 months) following the year such property is first placed in service upon 22 such a site, provided, such a date occurs prior to the 2033 tax year, 23 and the tangible property credit component shall be allowed for all 24 eligible costs incurred on such a site prior to and within the tax year 25 in which qualified tangible property on such a site is placed in 26 service, and for a ten year period (120 months) following the year such 27 property is first placed in service upon such a site, provided such a 28 date occurs prior to the 2033 tax year. 29 (b) In addition, any site for which (i) a brownfield cleanup agreement 30 with the department of environmental conservation was entered into prior 31 to December 22, 2007 with respect to a site located at 555 West 34th 32 Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues 33 in Manhattan, New York County, and (ii) which received a certificate of 34 completion on or before December 19, 2012, shall be eligible to claim 35 the tax credit for remediated brownfields available to such a site 36 pursuant to section 22 of the tax law as in effect for such a site as of 37 the effective date of this act provided the benefit period as applicable 38 thereto shall be deemed to be a ten-consecutive-tax-year period begin- 39 ning with the tax year in which qualified tangible property on such a 40 site is placed in service where said benefit period shall begin no later 41 than the 2033 tax year. 42 (c) Further, any site for which (i) a brownfield cleanup agreement 43 with the department of environmental conservation was entered into prior 44 to December 22, 2007 with respect to a site located at 555 West 34th 45 Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues 46 in Manhattan, New York County, and (ii) which received a certificate of 47 completion on or before December 19, 2012, shall be a qualified site for 48 purposes of claiming the tax credit for remediated brownfields available 49 to such a site pursuant to section 22 of the tax law, provided that such 50 developer as defined under section 22 of the tax law has purchased or in 51 any other way has been conveyed all or any portion of such a site from 52 any other party who or which has been issued a certificate of completion 53 with respect to such site and further provided that such purchase or 54 conveyance occurs no later than the 2033 tax year. 55 § 3. (a) Notwithstanding any provision of law, rule or regulation to 56 the contrary, any site for which (i) a brownfield cleanup agreement withS. 9009--C 115 A. 10009--C 1 the department of environmental conservation was entered into prior to 2 February 1, 2013 with respect to a site located at 125 Bath Street, in 3 the Town of Milton, Village of Ballston Spa, Saratoga County, and (ii) 4 which received a certificate of completion on or before December 31, 5 2019, shall be a qualified site for purposes of the brownfield redevel- 6 opment tax credits available to such a site pursuant to section 21 of 7 the tax law as in effect for such a site as of the effective date of 8 this act provided that both the site preparation credit component and 9 the on-site groundwater remediation credit component shall be allowed 10 for all eligible costs incurred on such a site prior to and within the 11 tax year in which qualified tangible property on such a site is placed 12 in service, and for a five year period (60 months) following the year 13 such property is first placed in service upon such a site, provided, 14 such a date occurs prior to the 2031 tax year, and the tangible property 15 credit component shall be allowed for all eligible costs incurred on 16 such a site prior to and within the tax year in which qualified tangible 17 property on such a site is placed in service, and for a ten year period 18 (120 months) following the year such property is first placed in service 19 upon such a site, provided such a date occurs prior to the 2031 tax 20 year. 21 (b) In addition, any site for which (i) a brownfield cleanup agreement 22 with the department of environmental conservation was entered into prior 23 to February 1, 2013 with respect to a site located at 125 Bath Street, 24 in the Town of Milton, Village of Ballston Spa, Saratoga County, and 25 (ii) which received a certificate of completion on or before December 26 31, 2019, shall be eligible to claim the tax credit for remediated 27 brownfields available to such a site pursuant to section 22 of the tax 28 law as in effect for such a site as of the effective date of this act 29 provided the benefit period as applicable thereto shall be deemed to be 30 a ten-consecutive-tax-year period beginning with the tax year in which 31 qualified tangible property on such a site is placed in service where 32 said benefit period shall begin no later than the 2031 tax year. 33 (c) Further, any site for which (i) a brownfield cleanup agreement 34 with the department of environmental conservation was entered into prior 35 to February 1, 2013 with respect to a site located at 125 Bath Street, 36 in the Town of Milton, Village of Ballston Spa, Saratoga County, and 37 (ii) which received a certificate of completion on or before December 38 31, 2019, shall be a qualified site for purposes of claiming the tax 39 credit for remediated brownfields available to such a site pursuant to 40 section 22 of the tax law, provided that such developer as defined under 41 section 22 of the tax law has purchased or in any other way has been 42 conveyed all or any portion of such a site from any other party who or 43 which has been issued a certificate of completion with respect to such 44 site and further provided that such purchase or conveyance occurs no 45 later than the 2031 tax year. 46 § 4. (a) Notwithstanding any provision of law, rule or regulation to 47 the contrary, any site for which (i) a brownfield cleanup agreement with 48 the department of environmental conservation was entered into prior to 49 July 31, 2014 with respect to a site located at 4630 River Road, bounded 50 by the Niagara River to the north, vacant industrial property and a 51 County park to the east, a paved bike path and River Road to the south, 52 and United Refining Company property to the west, in the Town of Tona- 53 wanda, Erie County, and (ii) which received a certificate of completion 54 on or before December 16, 2016, shall be a qualified site for purposes 55 of the brownfield redevelopment tax credits available to such a site 56 pursuant to section 21 of the tax law as in effect for such a site as ofS. 9009--C 116 A. 10009--C 1 the effective date of this act provided that both the site preparation 2 credit component and the on-site groundwater remediation credit compo- 3 nent shall be allowed for all eligible costs incurred on such a site 4 prior to and within the tax year in which qualified tangible property on 5 such a site is placed in service, and for a five year period (60 months) 6 following the year such property is first placed in service upon such a 7 site, provided, such a date occurs prior to the 2031 tax year, and the 8 tangible property credit component shall be allowed for all eligible 9 costs incurred on such a site prior to and within the tax year in which 10 qualified tangible property on such a site is placed in service, and for 11 a ten year period (120 months) following the year such property is first 12 placed in service upon such a site, provided such a date occurs prior to 13 the 2031 tax year. 14 (b) In addition, any site for which (i) a brownfield cleanup agreement 15 with the department of environmental conservation was entered into prior 16 to July 31, 2014 with respect to a site located at 4630 River Road, 17 bounded by the Niagara River to the north, vacant industrial property 18 and a County park to the east, a paved bike path and River Road to the 19 south, and United Refining Company property to the west, in the Town of 20 Tonawanda, Erie County, and (ii) which received a certificate of 21 completion on or before December 16, 2016, shall be eligible to claim 22 the tax credit for remediated brownfields available to such a site 23 pursuant to section 22 of the tax law as in effect for such a site as of 24 the effective date of this act provided the benefit period as applicable 25 thereto shall be deemed to be a ten-consecutive-tax-year period begin- 26 ning with the tax year in which qualified tangible property on such a 27 site is placed in service where said benefit period shall begin no later 28 than the 2031 tax year. 29 (c) Further, any site for which (i) a brownfield cleanup agreement 30 with the department of environmental conservation was entered into prior 31 to July 31, 2014 with respect to a site located at 4630 River Road, 32 bounded by the Niagara River to the north, vacant industrial property 33 and a County park to the east, a paved bike path and River Road to the 34 south, and United Refining Company property to the west, in the Town of 35 Tonawanda, Erie County, and (ii) which received a certificate of 36 completion on or before December 16, 2016, shall be a qualified site for 37 purposes of claiming the tax credit for remediated brownfields available 38 to such a site pursuant to section 22 of the tax law, provided that such 39 developer as defined under section 22 of the tax law has purchased or in 40 any other way has been conveyed all or any portion of such a site from 41 any other party who or which has been issued a certificate of completion 42 with respect to such site and further provided that such purchase or 43 conveyance occurs no later than the 2031 tax year. 44 § 5. (a) Notwithstanding any provision of law, rule or regulation to 45 the contrary, any site for which (i) a brownfield cleanup agreement with 46 the department of environmental conservation was entered into prior to 47 June 16, 2005 with respect to a site located at 18 Ambrose Street and on 48 the rear parcel of 214 Lake Avenue, including Haidt Place in Rochester, 49 Monroe County, and (ii) which received a certificate of completion on or 50 before December 31, 2017, shall be a qualified site for purposes of the 51 brownfield redevelopment tax credits available to such a site pursuant 52 to section 21 of the tax law as in effect for such a site as of the 53 effective date of this act provided that both the site preparation cred- 54 it component and the on-site groundwater remediation credit component 55 shall be allowed for all eligible costs incurred on such a site prior to 56 and within the tax year in which qualified tangible property on such aS. 9009--C 117 A. 10009--C 1 site is placed in service, and for a five year period (60 months) 2 following the year such property is first placed in service upon such a 3 site, provided, such a date occurs prior to the 2031 tax year, and the 4 tangible property credit component shall be allowed for all eligible 5 costs incurred on such a site prior to and within the tax year in which 6 qualified tangible property on such a site is placed in service, and for 7 a ten year period (120 months) following the year such property is first 8 placed in service upon such a site, provided such a date occurs prior to 9 the 2031 tax year. 10 (b) In addition, any site for which (i) a brownfield cleanup agreement 11 with the department of environmental conservation was entered into prior 12 to June 16, 2005 with respect to a site located at 18 Ambrose Street and 13 on the rear parcel of 214 Lake Avenue, including Haidt Place in Roches- 14 ter, Monroe County, and (ii) which received a certificate of completion 15 on or before December 31, 2017, shall be eligible to claim the tax cred- 16 it for remediated brownfields available to such a site pursuant to 17 section 22 of the tax law as in effect for such a site as of the effec- 18 tive date of this act provided the benefit period as applicable thereto 19 shall be deemed to be a ten-consecutive-tax-year period beginning with 20 the tax year in which qualified tangible property on such a site is 21 placed in service where said benefit period shall begin no later than 22 the 2031 tax year. 23 (c) Further, any site for which (i) a brownfield cleanup agreement 24 with the department of environmental conservation was entered into prior 25 to June 16, 2005 with respect to a site located at 18 Ambrose Street and 26 on the rear parcel of 214 Lake Avenue, including Haidt Place in Roches- 27 ter, Monroe County, and (ii) which received a certificate of completion 28 on or before December 31, 2017, shall be a qualified site for purposes 29 of claiming the tax credit for remediated brownfields available to such 30 a site pursuant to section 22 of the tax law, provided that such devel- 31 oper as defined under section 22 of the tax law has purchased or in any 32 other way has been conveyed all or any portion of such a site from any 33 other party who or which has been issued a certificate of completion 34 with respect to such site and further provided that such purchase or 35 conveyance occurs no later than the 2031 tax year. 36 § 6. This act shall take effect immediately. 37 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 38 sion, section or part of this act shall be adjudged by any court of 39 competent jurisdiction to be invalid, such judgment shall not affect, 40 impair, or invalidate the remainder thereof, but shall be confined in 41 its operation to the clause, sentence, paragraph, subdivision, section 42 or part thereof directly involved in the controversy in which such judg- 43 ment shall have been rendered. It is hereby declared to be the intent of 44 the legislature that this act would have been enacted even if such 45 invalid provisions had not been included herein. 46 § 3. This act shall take effect immediately provided, however, that 47 the applicable effective date of Parts A through JJ of this act shall be 48 as specifically set forth in the last section of such Parts.
