S. 5285 2
ship to a business entity taxable, or previously taxable, under section
one hundred eighty-three, one hundred eighty-four[,] OR one hundred
eighty-five [or one hundred eighty-six] of article nine; article nine-A,
thirty-two or thirty-three of this chapter; [article twenty-three of
this chapter] or which would have been subject to tax under [such] arti-
cle twenty-three (as such article was in effect on January first, nine-
teen hundred eighty) or the income (or losses) of which is (or was)
includable under article twenty-two.
S 3. Clause (i) of subparagraph 5 of paragraph (a) of subdivision 9 of
section 208 of the tax law, as amended by section 2 of part C of chapter
25 of the laws of 2009, is amended to read as follows:
(i) any refund or credit of a tax imposed under this article[, article
twenty-three,] or article thirty-two of this chapter, for which tax no
exclusion or deduction was allowed in determining the taxpayer's entire
net income under this article[, article twenty-three,] or article thir-
ty-two of this chapter for any prior year,
S 4. Subparagraph 20 of paragraph (b) of subdivision 9 of section 208
of the tax law is REPEALED.
S 5. Paragraph (c) of subdivision 1-c of section 210 of the tax law,
as amended by chapter 1043 of the laws of 1981, is amended to read as
follows:
(c) is not a corporation which is substantially similar in operation
and in ownership to a business entity (or entities) taxable, or previ-
ously taxable, under this article; section one hundred eighty-three, one
hundred eighty-four[,] OR one hundred eighty-five [or one hundred eight-
y-six] of article nine; article thirty-two or thirty-three of this chap-
ter; [article twenty-three of this chapter] or which would have been
subject to tax under [such] article twenty-three (as such article was in
effect on January first, nineteen hundred eighty) or the income (or
losses) of which is (or was) includable under article twenty-two of this
chapter, and
S 6. Subparagraph 2 of paragraph j of subdivision 12 of section 210 of
the tax law, as amended by chapter 1043 of the laws of 1981, is amended
to read as follows:
(2) is substantially similar in operation and in ownership to a busi-
ness entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred eighty-five [or one hundred eighty-six] of article nine;
article thirty-two or thirty-three of this chapter; [article twenty-
three of this chapter] or which would have been subject to tax under
[such] article twenty-three (as such article was in effect on January
first, nineteen hundred eighty) or the income (or losses) of which is
(or was) includable under article twenty-two of this chapter whereby the
intent and purpose of this paragraph and paragraph (e) of this subdivi-
sion with respect to refunding of credit to new business would be
evaded; or
S 7. Paragraph 2 of subdivision (a) of section 292 of the tax law, as
amended by section 4 of part C of chapter 25 of the laws of 2009, is
amended to read as follows:
(2) There shall be subtracted from federal unrelated business taxable
income the amount of any refund or credit for overpayment of a tax
imposed under this article [or article twenty-three of this chapter].
S 8. Paragraph 8 of subdivision (a) of section 292 of the tax law is
REPEALED.
S. 5285 3
S 9. Subparagraph (A) of paragraph 10 of subsection (a) of section 606
of the tax law, as amended by section 3 of part CC of chapter 85 of the
laws of 2002, is amended to read as follows:
(A) the business of which the individual is an owner is substantially
similar in operation and in ownership to a business entity taxable, or
previously taxable, under section one hundred eighty-three, one hundred
eighty-four[,] OR one hundred eighty-five [or one hundred eighty-six] of
article nine; article nine-A, thirty-two or thirty-three of this chap-
ter; [article twenty-three of this chapter] or which would have been
subject to tax under [such] article twenty-three (as such article was in
effect on January first, nineteen hundred eighty) or the income (or
losses) of which is (or was) includable under article twenty-two of this
chapter whereby the intent and purpose of this paragraph and paragraph
five of this subsection with respect to refunding of credit to new busi-
ness would be evaded; or
S 10. Paragraph 39 of subsection (b) of section 612 of the tax law is
REPEALED.
S 11. Paragraph 7 of subsection (c) of section 612 of the tax law, as
amended by section 7 of part C of chapter 25 of the laws of 2009, is
amended to read as follows:
(7) The amount of any refund or credit for overpayment of income taxes
imposed by this state, or any other taxing jurisdiction, [and any taxes
imposed by article twenty-three of this chapter,] to the extent properly
included in gross income for federal income tax purposes.
S 12. Clause (ii) and subclause 2 of clause (v) of subparagraph (B) of
paragraph 1 of subsection (o) of section 612 of the tax law, clause (ii)
as amended by chapter 28 of the laws of 1987 and subclause 2 as amended
by chapter 1043 of the laws of 1981, are amended to read as follows:
(ii) is, at the date of adoption of such plan, subject to taxation
(whether or not any amount is owing) under section one hundred eighty-
three[,] OR one hundred eighty-four [or one hundred eighty-six] of arti-
cle nine of this chapter, or under article [nine-a] NINE-A of this chap-
ter [or article twenty-three of this chapter], or would have been
subject to tax under article twenty-three (as such article was in effect
on January first, nineteen hundred eighty) if such article were still in
effect, and the first taxable period for which such new business became
subject to such taxation commenced on or after July first, nineteen
hundred eighty-one and before January first, nineteen hundred eighty-
eight, and such first taxable period includes the date of adoption of
such plan; if not so subject to taxation, the new business must be
subject to taxation under such sections or articles for the first time
within one year from the date of adoption of such plan, and
(2) A new business does not include (i) any new business of which
twenty-five percent or more of the number of shares of stock that enti-
tle the holders thereof to vote for the election of directors or trus-
tees is owned, directly or indirectly, by a taxpayer subject to tax
under section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred eighty-five [or one hundred eighty-six] of article nine of
this chapter, or under article nine-A, thirty-two or thirty-three of
this chapter or (ii) any new business substantially similar in operation
and in ownership, directly or indirectly, to a business entity (or enti-
ties) taxable, or previously taxable, under such sections, such arti-
cles, [article twenty-three] or which would have been subject to tax
under article twenty-three (as such article was in effect on January
first, nineteen hundred eighty) or the income (or losses) of which is
S. 5285 4
(or was) includable under article twenty-two whereby the intent and
purpose of this subsection would be evaded.
S 13. Paragraph 3 of subsection (p) of section 612 of the tax law, as
amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(3) is not substantially similar in operation or ownership, directly
or indirectly, to a business entity (or entities) taxable, or previously
taxable, under such sections, such articles, [article twenty-three] or
which would have been subject to tax under article twenty-three (as such
article was in effect on January first, nineteen hundred eighty) or the
income (or losses) of which is (or was) includable under article twen-
ty-two whereby the intent and purpose of this subsection would be
evaded,
S 14. Paragraph 8 of subsection (c) of section 615 of the tax law is
REPEALED.
S 15. Subsection 4 of section 618 of the tax law, as amended by
section 9 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(4) There shall be added or subtracted (as the case may be) the
modifications described in paragraphs (6), (10), (17), (18), (19), (20),
(21), (22), (23), (24), (25), (26), (27), (29), AND (38) [and (39)] of
subsection (b) and in paragraphs (11), (13), (15), (19), (20), (21),
(22), (23), (24), (25), (26) and (28) of subsection (c) of section six
hundred twelve of this part.
S 16. Subsection 4 of section 618 of the tax law, as separately
amended by section 5 of part HH-1 of chapter 57 of the laws of 2008 and
section 9 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(4) There shall be added or subtracted (as the case may be) the
modifications described in paragraphs (6), (10), (17), (18), (19), (20),
(21), (22), (23), (24), (25), (26), (27), [(28),] (29), AND (38) [and
(39)] of subsection (b) and in paragraphs (11), (13), (15), (19), (20),
(21), (22), (23), (24), (25), (26) and (28) of subsection (c) of section
six hundred twelve of this part.
S 17. Subsection (a) of section 686 of the tax law, as amended by
section 10 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(a) General.-- The commissioner of taxation and finance, within the
applicable period of limitations, may credit an overpayment of income
tax and interest on such overpayment against any liability in respect of
any tax imposed by this chapter[, including taxes imposed under article
twenty-three of this chapter,] on the person who made the overpayment,
against any liability in respect of any tax imposed pursuant to the
authority of this chapter or any other law on such person if such tax is
administered by the commissioner of taxation and finance and, as
provided in sections one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f and
one hundred seventy-one-l of this chapter, against past-due support, a
past-due legally enforceable debt, a city of New York tax warrant judg-
ment debt, and against the amount of a default in repayment of a guaran-
teed student, state university or city university loan. The balance
shall be refunded by the comptroller out of the proceeds of the tax
retained by him for such general purpose. Any refund under this section
shall be made only upon the filing of a return and upon a certificate of
the commissioner approved by the comptroller. The comptroller, as a
condition precedent to the approval of such a certificate, may examine
S. 5285 5
into the facts as disclosed by the return of the person who made the
overpayment and other information and data available in the files of the
commissioner.
S 18. Section 1311 of the tax law, as amended by chapter 682 of the
laws of 1976, is amended to read as follows:
S 1311. Enforcement with other taxes. (a) If there is assessed a tax
under a city income tax imposed pursuant to the authority of this arti-
cle and there is also assessed a tax or taxes against the same taxpayer
pursuant to article twenty-two [or articles twenty-two and twenty-three]
of this chapter or under a local law enacted pursuant to the authority
of FORMER article two-E of the general city law and payment of a single
amount is required under the provisions of this article, such payment
shall be deemed to have been made with respect to the taxes so assessed
in proportion to the amounts of such taxes due, including tax, penal-
ties, interest and additions to tax.
(b) If the state tax commission takes action under such article twen-
ty-two [or articles twenty-two and twenty-three] or under a local law
enacted pursuant to the authority of FORMER article two-E of the general
city law with respect to the enforcement and collection of the tax or
taxes assessed under such articles the state tax commission shall, wher-
ever possible, accompany such action with a similar action under similar
enforcement and collection provisions of such city income tax.
(c) Any moneys collected as a result of such joint action shall be
deemed to have been collected in proportion to the amounts due, includ-
ing tax, penalties, interest and additions to tax, under article twen-
ty-two [or articles twenty-two and twenty-three] of this chapter and
such city income tax.
(d) Whenever the state tax commission takes any action with respect to
a deficiency of income tax under article twenty-two [or articles twen-
ty-two and twenty-three] of this chapter or under a local law enacted
pursuant to the authority of FORMER article two-E of the general city
law, other than the action set forth in subdivision (a) of this section,
it may in its discretion accompany such action with a similar action
under such city income tax.
S 19. Paragraph 15 of subsection (b) of section 1453 of the tax law is
REPEALED.
S 20. Subsection (d) of section 1453 of the tax law, as amended by
section 13 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(d) Entire net income shall not include any refund or credit of a tax
for which no exclusion or deduction was allowed in determining the
taxpayer's entire net income under this article or [articles] ARTICLE
nine-A [or twenty-three] of this chapter for any prior year.
S 21. Subparagraph (B) of paragraph 8 of subsection (i) of section
1456 of the tax law, as added by section 27 of part A of chapter 56 of
the laws of 1998, is amended to read as follows:
(B) is substantially similar in operation and in ownership to a busi-
ness entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred eighty-five [or one hundred eighty-six] of article nine;
article nine-A or article thirty-three of this chapter; [article twen-
ty-three of this chapter] or which would have been subject to tax under
[such] article twenty-three (as such article was in effect on January
first, nineteen hundred eighty) or the income (or losses) of which is
(or was) includable under article twenty-two of this chapter whereby the
intent and purpose of this paragraph and paragraph five of this
S. 5285 6
subsection with respect to refunding of credit to new business would be
evaded; or
S 22. Subparagraph (C) of paragraph 1 of subdivision (b) of section
1503 of the tax law, as amended by section 14 of part C of chapter 25 of
the laws of 2009, is amended to read as follows:
(C) any refund or credit of a tax imposed under this article or
section one hundred eighty-seven, [or article twenty-three of this chap-
ter] heretofore in effect to the extent properly included as income for
federal income tax purposes, for which no exclusion or deduction was
allowed in determining the taxpayer's entire net income under this arti-
cle for any prior year;
S 23. Subparagraph (V) of paragraph 2 of subdivision (b) of section
1503 of the tax law is REPEALED.
S 24. Subparagraph (B) of paragraph 7 of subdivision (q) of section
1511 of the tax law, as added by section 1 of part L of chapter 63 of
the laws of 2000, is amended to read as follows:
(B) is substantially similar in operation and in ownership to a busi-
ness entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred [eight-five or one hundred eighty-six] EIGHTY-FIVE of arti-
cle nine; article nine-A or article thirty-two of this chapter; [article
twenty-three of this chapter] or which would have been subject to tax
under [such] article twenty-three (as such article was in effect [of] ON
January first, nineteen hundred eighty) or the income (or losses) of
which is (or was) includable under article twenty-two of this chapter
whereby the intent and purpose of this paragraph and paragraph four of
this subdivision with respect to refunding of credit to new business
would be evaded; or
S 25. Subparagraph 5 of paragraph (a) of subdivision 8 of section
11-602 of the administrative code of the city of New York, as amended by
section 16 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(5) any refund or credit of a tax imposed under this chapter, or
imposed by article nine, nine-A, [twenty-three,] or thirty-two of the
tax law, for which tax no exclusion or deduction was allowed in deter-
mining the taxpayer's entire net income under this subchapter or
subchapter three of this chapter for any prior year;
S 26. Subparagraph 19 of paragraph (b) of subdivision 8 of section
11-602 of the administrative code of the city of New York is REPEALED.
S 27. Paragraph 16 of subdivision b of section 11-641 of the adminis-
trative code of the city of New York is REPEALED.
S 28. Subdivision (d) of section 11-641 of the administrative code of
the city of New York, as amended by section 19 of part C of chapter 25
of the laws of 2009, is amended to read as follows:
(d) Entire net income shall not include any refund or credit of a tax
for which no exclusion or deduction was allowed in determining the
taxpayer's entire net income under this subchapter or subchapter two of
this chapter[, or imposed by article twenty-three of the tax law for any
prior year].
S 29. Paragraph 35 of subdivision (b) of section 11-1712 of the admin-
istrative code of the city of New York is REPEALED.
S 30. Paragraph 7 of subdivision (c) of section 11-1712 of the admin-
istrative code of the city of New York, as amended by section 21 of part
C of chapter 25 of the laws of 2009, is amended to read as follows:
(7) The amount of any refund or credit for overpayment of income taxes
imposed by this city, OR any other taxing jurisdiction, [or any taxes
S. 5285 7
imposed by article twenty-three of the tax law] to the extent properly
included in gross income for federal income tax purposes.
S 31. Paragraph 3 of subdivision (p) of section 11-1712 of the admin-
istrative code of the city of New York, as amended by chapter 333 of the
laws of 1987, is amended to read as follows:
(3) is not substantially similar in operation or ownership, directly
or indirectly, to a business entity (or entities) taxable, or previously
taxable, under such sections, such articles, [article twenty-three of
the tax law] or which would have been subject to tax under article twen-
ty-three (as such article was in effect on January first, nineteen
hundred eighty) or the income (or losses) of which is (or was) includi-
ble under article twenty-two of the tax law whereby the intent and
purpose of this subdivision would be evaded,
S 32. Subdivision 4 of section 11-1718 of the administrative code of
the city of New York, as amended by section 22 of part C of chapter 25
of the laws of 2009, is amended to read as follows:
(4) There shall be added or subtracted (as the case may be) the
modifications described in paragraphs six, ten, seventeen, eighteen,
nineteen, twenty, twenty-one, twenty-two, twenty-three, twenty-four,
twenty-five, twenty-six, twenty-seven, twenty-nine AND, thirty-four [and
thirty-five] of subdivision (b) and in paragraphs eleven, thirteen,
fifteen, nineteen, twenty, twenty-one, twenty-two, twenty-three, twen-
ty-four, twenty-five, twenty-six and twenty-eight of subdivision (c) of
section 11-1712 of this subchapter.
S 33. Subdivision 4 of section 11-1718 of the administrative code of
the city of New York, as separately amended by section 12 of part HH-1
of chapter 57 of the laws of 2008 and section 22 of part C of chapter 25
of the laws of 2009, is amended to read as follows:
(4) There shall be added or subtracted (as the case may be) the
modifications described in paragraphs six, ten, seventeen, eighteen,
nineteen, twenty, twenty-one, twenty-two, twenty-three, twenty-four,
twenty-five, twenty-seven, [twenty-eight,] twenty-nine AND, thirty-four
[and thirty-five] of subdivision (b) and in paragraphs eleven, thirteen,
fifteen, nineteen, twenty, twenty-one, twenty-two, twenty-three, twen-
ty-four, twenty-five, twenty-six and twenty-eight of subdivision (c) of
section 11-1712 of this subchapter.
S 34. Subparagraphs 17 and 18 of paragraph t of subdivision 1 of
section 3602 of the education law, as amended by section 2 of part D of
chapter 25 of the laws of 2009, are amended to read as follows:
(17) in any year in which expenditures are made to the New York state
teachers' retirement system or the New York state and local employees'
retirement system for both the prior school year and the current school
year, any expenditures made to such retirement systems and recorded in
the school year prior to the school year in which such obligations are
paid[; and (18) any payments to the commissioner of taxation and finance
pursuant to article twenty-three of the tax law].
S 35. Section 3609-g of the education law is REPEALED.
S 36. Paragraph (e) of subdivision 7 of section 38 of the highway law,
as amended by chapter 196 of the laws of 1981 and as relettered by chap-
ter 153 of the laws of 1984, is amended to read as follows:
(e) No such certificate approving or authorizing the first partial
payment or any final payment to a foreign contractor shall be made
unless such contractor shall furnish satisfactory proof that all taxes
due the state tax commission by such contractor, under the provisions of
or pursuant to a law enacted pursuant to the authority of article nine,
nine-a, twelve-a, [sixteen, sixteen-a,] twenty-one, twenty-two, [twen-
S. 5285 8
ty-three,] twenty-eight, twenty-nine or thirty of the tax law [or arti-
cle two-E of the general city law] have been paid. The certificate of
the state tax commission to the effect that all such taxes have been
paid shall be, for purpose of this paragraph, conclusive proof of the
payment of such taxes. The term "foreign contractor" as used in this
subdivision means, in the case of an individual, a person who is not a
resident of this state, in the case of a partnership, one having one or
more partners not a resident of this state, and in the case of a corpo-
ration, one not organized under the laws of this state.
S 37. Section 1270-h of the public authorities law is REPEALED.
S 38. Section 92-ff of the state finance law is REPEALED.
S 39. This act shall take effect immediately; provided that the amend-
ments to subsection 4 of section 618 of the tax law made by section
fifteen of this act shall be subject to the expiration and reversion of
such subdivision pursuant to section 8 of chapter 782 of the laws of
1988, as amended, when upon such date the provisions of section sixteen
of this act shall take effect; and provided further that the amendments
to subdivision 4 of section 11-1718 of the administrative code of the
city of New York made by section thirty-two of this act shall be subject
to the expiration and reversion of such subdivision pursuant to section
8 of chapter 782 of the laws of 1988, as amended, when upon such date
the provisions of section thirty-three of this act shall take effect.
