S T A T E   O F   N E W   Y O R K
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                                  8615

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 29, 2009
                               ___________

Introduced  by  M.  of  A.  FARRELL,  COOK,  KELLNER, ESPAILLAT, WRIGHT,
  POWELL, BING -- Multi-Sponsored by -- M. of A. O'DONNELL -- read  once
  and referred to the Committee on Ways and Means

AN  ACT  to  amend  the  administrative code of the city of New York, in
  relation to the unincorporated business tax

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  3  of subdivision (b) of section 11-503 of the
administrative code of the city of New York, as amended by  chapter  481
of the laws of 1997, is amended to read as follows:
  (3)  For each taxable year beginning after nineteen hundred ninety-six
BUT BEFORE TWO THOUSAND NINE:
  (A) if the tax computed under subdivision (a) of this section  is  one
thousand  eight  hundred  dollars or less, a credit shall be allowed for
the entire amount of such tax;
  (B) if the tax computed under subdivision (a) of this section  exceeds
one  thousand  eight hundred dollars but is less than three thousand two
hundred dollars, a credit shall be allowed in the amount  determined  by
multiplying such tax by a fraction the numerator of which is three thou-
sand  two hundred dollars minus the amount of such tax and the denomina-
tor of which is one thousand four hundred dollars; or
  (C) if the tax computed under subdivision (a) of this section is three
thousand two hundred dollars or more, no credit shall be allowed.
  S 2. Subdivision (b) of section 11-503 of the administrative  code  of
the city of New York is amended by adding a new paragraph 3-a to read as
follows:
  (3-A) FOR EACH TAXABLE YEAR BEGINNING AFTER TWO THOUSAND EIGHT:
  (A) IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION IS THREE
THOUSAND FOUR HUNDRED DOLLARS OR LESS, A CREDIT SHALL BE ALLOWED FOR THE
ENTIRE AMOUNT OF SUCH TAX;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11919-01-9

              

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  (B)  IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION EXCEEDS
THREE THOUSAND FOUR HUNDRED DOLLARS BUT IS LESS THAN FIVE THOUSAND  FOUR
HUNDRED  DOLLARS,  A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY
MULTIPLYING SUCH TAX BY A FRACTION THE NUMERATOR OF WHICH IS FIVE  THOU-
SAND FOUR HUNDRED DOLLARS MINUS THE AMOUNT OF SUCH TAX AND THE DENOMINA-
TOR OF WHICH IS TWO THOUSAND DOLLARS; OR
  (C)  IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION IS FIVE
THOUSAND FOUR HUNDRED DOLLARS OR MORE, NO CREDIT SHALL BE ALLOWED.
  S 3. Subdivision (a) of section 11-511 of the administrative  code  of
the  city of New York, as amended by chapter 481 of the laws of 1997, is
amended to read as follows:
  (a) Requirement of declaration.  Except as provided in subdivision (j)
of this section, every unincorporated business shall make a  declaration
of  its  estimated tax for the taxable year, containing such information
as the commissioner of finance may prescribe by regulations or  instruc-
tion, if:
  (1)  for taxable years beginning after nineteen hundred eighty-six but
before nineteen hundred ninety-six, its unincorporated business  taxable
income can reasonably be expected to exceed fifteen thousand dollars;
  (2)  for  taxable  years beginning in nineteen hundred ninety-six, its
unincorporated business taxable income can  reasonably  be  expected  to
exceed twenty thousand dollars; [and]
  (3)  for taxable years beginning after nineteen hundred ninety-six BUT
BEFORE TWO THOUSAND NINE, its estimated tax can reasonably  be  expected
to exceed one thousand eight hundred dollars; AND
  (4)  FOR  TAXABLE  YEARS BEGINNING AFTER TWO THOUSAND EIGHT, ITS ESTI-
MATED TAX CAN REASONABLY BE  EXPECTED  TO  EXCEED  THREE  THOUSAND  FOUR
HUNDRED DOLLARS.
  S  4.  Subdivision (a) of section 11-514 of the administrative code of
the city of New York, as amended by chapter 481 of the laws of 1997,  is
amended to read as follows:
  (a)  General.  On  or  before  the  fifteenth  day of the fourth month
following the close of a taxable year, an unincorporated business income
tax return shall be made and filed, and the balance of any tax shown  on
the  face  of  such return, not previously paid as installments of esti-
mated tax, shall be paid:
  (1) by or for every unincorporated business, for taxable years  begin-
ning after nineteen hundred eighty-six but before nineteen hundred nine-
ty-seven,  having  unincorporated  business gross income, determined for
purposes of this subdivision without any deduction for the cost of goods
sold or services performed, of more than ten thousand dollars, or having
any amount of unincorporated business taxable income;
  (2) by or for every partnership, for  taxable  years  beginning  after
nineteen  hundred  ninety-six BUT BEFORE TWO THOUSAND NINE, having unin-
corporated business gross income, determined for purposes of this subdi-
vision without any deduction for the cost  of  goods  sold  or  services
performed, of more than twenty-five thousand dollars, or having unincor-
porated  business  taxable income of more than fifteen thousand dollars;
[and]
  (3) by or for every unincorporated business other than a  partnership,
for taxable years beginning after nineteen hundred ninety-six BUT BEFORE
TWO  THOUSAND  NINE, having unincorporated business gross income, deter-
mined for purposes of this subdivision without  any  deduction  for  the
cost  of  goods  sold  or  services performed, of more than seventy-five
thousand dollars, or having unincorporated business  taxable  income  of
more than thirty-five thousand dollars; AND

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  (4)  BY OR FOR EVERY UNINCORPORATED BUSINESS, FOR TAXABLE YEARS BEGIN-
NING AFTER TWO THOUSAND  EIGHT,  HAVING  UNINCORPORATED  BUSINESS  GROSS
INCOME,   DETERMINED  FOR  PURPOSES  OF  THIS  SUBDIVISION  WITHOUT  ANY
DEDUCTION FOR THE COST OF GOODS SOLD OR SERVICES PERFORMED, OF MORE THAN
NINETY-FIVE THOUSAND DOLLARS.
  S  5.  This  act shall take effect immediately; provided, however that
sections one and two of this act shall be deemed to have  been  in  full
force and effect on and after January 1, 2009.