LBD03827-01-3
A. 2286 2
CONFORMING IT WITH THE UNITED STATES INTERNAL REVENUE CODE OR OTHER
FEDERAL LAWS RELATING TO TAXATION AS PRESENTLY IN EFFECT OR AS THEY MAY
BE AMENDED.
EARNINGS TAX ON NONRESIDENTS
SEC. 1. MEANING OF TERMS.--AS USED IN THIS LOCAL LAW, THE FOLLOWING
TERMS SHALL MEAN AND INCLUDE: (A) "ADMINISTRATOR" MEANS THE STATE TAX
COMMISSION.
(B) "CITY" MEANS THE CITY IMPOSING THE TAX.
(C) "PAYROLL PERIOD" AND "EMPLOYER" SHALL MEAN THE SAME AS PAYROLL
PERIOD AND EMPLOYER AS DEFINED IN SUBSECTIONS (B) AND (D) OF SECTION
THIRTY-FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE, AND "EMPLOYEE"
SHALL ALSO INCLUDE ALL THOSE INCLUDED AS EMPLOYEES IN SUBSECTION (C) OF
SUCH SECTION OF SUCH CODE.
(D) "WAGES" SHALL MEAN WAGES AS DEFINED IN SUBSECTION (A) OF SECTION
THIRTY-FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE, EXCEPT THAT (1)
WAGES SHALL NOT INCLUDE PAYMENTS FOR ACTIVE SERVICE AS A MEMBER OF THE
ARMED FORCES OF THE UNITED STATES AND SHALL NOT INCLUDE, IN THE CASE OF
A NONRESIDENT INDIVIDUAL OR PARTNER OF A PARTNERSHIP DOING AN INSURANCE
BUSINESS AS A MEMBER OF THE NEW YORK INSURANCE EXCHANGE DESCRIBED IN
SECTION SIX THOUSAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY ITEM OF
INCOME, GAIN, LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS SUCH INDIVID-
UAL'S DISTRIBUTIVE OR PRO RATA SHARE FOR FEDERAL INCOME TAX PURPOSES OR
WHICH SUCH INDIVIDUAL IS REQUIRED TO TAKE INTO ACCOUNT SEPARATELY FOR
FEDERAL INCOME TAX PURPOSES AND (2) WAGES SHALL INCLUDE (I) THE AMOUNT
OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT SYSTEM OR PENSION
FUND PICKED UP BY THE EMPLOYER PURSUANT TO SUBDIVISION F OF SECTION FIVE
HUNDRED SEVENTEEN OR SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN OF
THE RETIREMENT AND SOCIAL SECURITY LAW OR SECTION 13-225.1, 13-327.1,
13-125.1, 13-125.2 OR 13-521.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK OR SUBDIVISION NINETEEN OF SECTION TWENTY-FIVE HUNDRED SEVEN-
TY-FIVE OF THE EDUCATION LAW, (II) THE AMOUNT DEDUCTED OR DEFERRED FROM
AN EMPLOYEE'S SALARY UNDER A FLEXIBLE BENEFITS PROGRAM ESTABLISHED
PURSUANT TO SECTION TWENTY-THREE OF THE GENERAL MUNICIPAL LAW OR SECTION
TWELVE HUNDRED TEN-A OF THE PUBLIC AUTHORITIES LAW, (III) THE AMOUNT BY
WHICH AN EMPLOYEE'S SALARY IS REDUCED PURSUANT TO THE PROVISIONS OF
SUBDIVISION B OF SECTION 12-126.1 AND SUBDIVISION B OF SECTION 12-126.2
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND (IV) THE AMOUNT
OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT SYSTEM OR PENSION
FUND PICKED UP OR PAID BY THE EMPLOYER FOR MEMBERS OF THE MANHATTAN AND
BRONX SURFACE TRANSPORTATION AUTHORITY PENSION PLAN AND TREATED AS
EMPLOYER CONTRIBUTIONS IN DETERMINING INCOME TAX TREATMENT UNDER SECTION
414(H) OF THE INTERNAL REVENUE CODE.
(E) "NET EARNINGS FROM SELF-EMPLOYMENT" SHALL MEAN THE SAME AS NET
EARNINGS FROM SELF-EMPLOYMENT AS DEFINED IN SUBSECTION (A) OF SECTION
FOURTEEN HUNDRED TWO OF THE INTERNAL REVENUE CODE, EXCEPT THAT THE
DEDUCTION FOR WAGES AND SALARIES PAID OR INCURRED FOR THE TAXABLE YEAR
WHICH IS NOT ALLOWED PURSUANT TO SECTION TWO HUNDRED EIGHTY-C OF SUCH
CODE SHALL BE ALLOWED, AND EXCEPT THAT AN ESTATE OR TRUST SHALL BE
DEEMED TO HAVE NET EARNINGS FROM SELF-EMPLOYMENT DETERMINED IN THE SAME
MANNER AS IF IT WERE AN INDIVIDUAL SUBJECT TO THE TAX ON SELF-EMPLOYMENT
INCOME IMPOSED BY SECTION FOURTEEN HUNDRED ONE OF THE INTERNAL REVENUE
CODE DIMINISHED BY (1) THE AMOUNT OF ANY DEDUCTION ALLOWED BY SUBSECTION
(C) OF SECTION SIX HUNDRED FORTY-TWO OF THE INTERNAL REVENUE CODE AND
(2) THE DEDUCTIONS ALLOWED BY SECTIONS SIX HUNDRED FIFTY-ONE AND SIX
HUNDRED SIXTY-ONE OF SAID CODE TO THE EXTENT THAT THEY REPRESENT
DISTRIBUTIONS OR PAYMENTS TO A RESIDENT OF THE CITY. HOWEVER, "TRADE OR
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BUSINESS" AS USED IN SUBSECTION (A) OF SECTION FOURTEEN HUNDRED TWO OF
SUCH CODE SHALL MEAN THE SAME AS TRADE OR BUSINESS AS DEFINED IN
SUBSECTION (C) OF SECTION FOURTEEN HUNDRED TWO OF SUCH CODE, EXCEPT THAT
PARAGRAPHS (4), (5) AND (6) OF SUCH SUBSECTION SHALL NOT APPLY IN DETER-
MINING NET EARNINGS FROM SELF-EMPLOYMENT TAXABLE UNDER THIS LOCAL LAW.
PROVIDED HOWEVER, IN THE CASE OF A NONRESIDENT INDIVIDUAL OR PARTNER OF
A PARTNERSHIP DOING AN INSURANCE BUSINESS DESCRIBED IN SECTION SIX THOU-
SAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY ITEM OF INCOME, GAIN,
LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS THE INDIVIDUAL'S DISTRIBU-
TIVE OR PRO RATA SHARE FOR FEDERAL INCOME TAX PURPOSES OR WHICH THE
INDIVIDUAL IS REQUIRED TO TAKE INTO ACCOUNT SEPARATELY FOR FEDERAL
INCOME TAX PURPOSES SHALL NOT BE CONSIDERED TO BE "NET EARNINGS FROM
SELF-EMPLOYMENT".
(F) "TAXABLE YEAR" SHALL MEAN THE TAXPAYER'S TAXABLE YEAR FOR FEDERAL
INCOME TAX PURPOSES.
(G) RESIDENT INDIVIDUAL.--A RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL:
(1) WHO IS DOMICILED IN THE CITY, UNLESS (A) HE OR SHE MAINTAINS NO
PERMANENT PLACE OF ABODE IN THE CITY, MAINTAINS A PERMANENT PLACE OF
ABODE ELSEWHERE, AND SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS
OF THE TAXABLE YEAR IN THE CITY, OR (B) (I) WITHIN ANY PERIOD OF FIVE
HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS PRESENT IN A FOREIGN
COUNTRY OR COUNTRIES FOR AT LEAST FOUR HUNDRED FIFTY DAYS, AND (II)
DURING SUCH PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR
SHE IS NOT PRESENT IN THE CITY FOR MORE THAN NINETY DAYS AND DOES NOT
MAINTAIN A PERMANENT PLACE OF ABODE IN THE CITY AT WHICH HIS SPOUSE
(UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE PRESENT
FOR MORE THAN NINETY DAYS, AND (III) DURING ANY PERIOD OF LESS THAN
TWELVE MONTHS, WHICH WOULD BE TREATED AS A SEPARATE TAXABLE PERIOD BASED
ON A CHANGE OF RESIDENT STATUS, AND WHICH PERIOD IS CONTAINED WITHIN
SUCH PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS, HE OR SHE IS
PRESENT IN THE CITY FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN AMOUNT
WHICH BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS CONTAINED IN
SUCH PERIOD OF LESS THAN TWELVE MONTHS BEARS TO FIVE HUNDRED
FORTY-EIGHT, OR
(2) WHO IS NOT DOMICILED IN THE CITY BUT MAINTAINS A PERMANENT PLACE
OF ABODE IN THE CITY AND SPENDS IN THE AGGREGATE MORE THAN ONE HUNDRED
EIGHTY-THREE DAYS OF THE TAXABLE YEAR IN THE CITY, UNLESS SUCH INDIVID-
UAL IS IN ACTIVE SERVICE IN THE ARMED FORCES OF THE UNITED STATES.
(H) NONRESIDENT INDIVIDUAL.--A NONRESIDENT INDIVIDUAL MEANS AN INDI-
VIDUAL WHO IS NOT A RESIDENT.
(I) RESIDENT ESTATE OR TRUST.--A RESIDENT ESTATE OR TRUST MEANS: (1)
THE ESTATE OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN THE
CITY,
(2) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS-
FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN
THE CITY, OR
(3) A TRUST, OR PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
(A) A PERSON DOMICILED IN THE CITY AT THE TIME SUCH PROPERTY WAS
TRANSFERRED TO THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST WAS THEN
IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSEQUENTLY BECOME
IRREVOCABLE; OR
(B) A PERSON DOMICILED IN THE CITY AT THE TIME SUCH TRUST, OR PORTION
OF A TRUST, BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH PROPERTY
WAS TRANSFERRED TO THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREVOCABLE.
FOR THE PURPOSES OF THE FOREGOING, A TRUST OR PORTION OF A TRUST IS
REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY
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FUTURE TIME, TO REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTITUTES
SUCH TRUST OR PORTION OF A TRUST, AND A TRUST OR PORTION OF A TRUST
BECOMES IRREVOCABLE WHEN THE POSSIBILITY THAT SUCH POWER MAY BE EXER-
CISED HAS BEEN TERMINATED.
(J) NONRESIDENT ESTATE OR TRUST.--A NONRESIDENT ESTATE OR TRUST MEANS
AN ESTATE OR TRUST WHICH IS NOT A RESIDENT.
(K) UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED, ANY TERM USED IN
THIS LOCAL LAW SHALL HAVE THE SAME MEANING AS WHEN USED IN A COMPARABLE
CONTEXT IN THE LAWS OF THE UNITED STATES RELATING TO FEDERAL TAXES BUT
SUCH MEANING SHALL BE SUBJECT TO THE EXCEPTIONS OR MODIFICATIONS
PRESCRIBED IN OR PURSUANT TO ARTICLE TWO-E OF THE GENERAL CITY LAW OR BY
THE LAWS OF THIS STATE. ANY REFERENCE IN THIS LOCAL LAW TO THE INTERNAL
REVENUE CODE, THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX
OR TO THE LAWS OF THE UNITED STATES SHALL MEAN THE PROVISIONS OF THE
INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX (UNLESS A REFERENCE
TO THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED FIFTY-FOUR IS CLEARLY
INTENDED), AND AMENDMENTS THERETO, AND OTHER PROVISIONS OF THE LAWS OF
THE UNITED STATES RELATING TO FEDERAL TAXES, AS THE SAME ARE INCLUDED IN
THIS LOCAL LAW AS AN APPENDIX AND SUPPLEMENT TO THE APPENDIX OR AS
INCLUDED BY REFERENCE TO AN APPENDIX AND SUPPLEMENT TO THE APPENDIX OF A
TITLE ENACTED BY THE SAME LOCAL LAW AS ENACTS THIS LOCAL LAW. (THE
QUOTATION OF THE AFORESAID LAWS OF THE UNITED STATES IS INTENDED TO MAKE
THEM A PART OF THIS LOCAL LAW AND TO AVOID CONSTITUTIONAL UNCERTAINTIES
WHICH MIGHT RESULT IF SUCH LAWS WERE MERELY INCORPORATED BY REFERENCE.
THE QUOTATION OF A PROVISION OF THE FEDERAL INTERNAL REVENUE CODE OR OF
ANY OTHER LAW OF THE UNITED STATES SHALL NOT NECESSARILY MEAN THAT IT IS
APPLICABLE TO OR HAS RELEVANCE TO THIS LOCAL LAW.)
(L) THE TERM "PARTNERSHIP" SHALL INCLUDE, UNLESS A DIFFERENT MEANING
IS CLEARLY REQUIRED, A SUBCHAPTER K LIMITED LIABILITY COMPANY. THE TERM
"SUBCHAPTER K LIMITED LIABILITY COMPANY" SHALL MEAN A LIMITED LIABILITY
COMPANY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES.
THE TERM "LIMITED LIABILITY COMPANY" MEANS A DOMESTIC LIMITED LIABIL-
ITY COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY, AS DEFINED IN
SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, A LIMITED
LIABILITY INVESTMENT COMPANY FORMED PURSUANT TO SECTION FIVE HUNDRED
SEVEN OF THE BANKING LAW, OR A LIMITED LIABILITY TRUST COMPANY FORMED
PURSUANT TO SECTION ONE HUNDRED TWO-A OF THE BANKING LAW.
SEC. 2. PERSONS SUBJECT TO TAX.--(A) IMPOSITION OF TAX.--A TAX IS
HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER JULY FIRST, TWO
THOUSAND FOURTEEN ON THE WAGES EARNED, AND NET EARNINGS FROM SELF-EM-
PLOYMENT, WITHIN THE CITY, OF EVERY NONRESIDENT INDIVIDUAL, ESTATE AND
TRUST WHICH SHALL COMPRISE A TAX AT THE RATE OF ONE PERCENT ON ALL WAGES
AND ALL NET EARNINGS FROM SELF-EMPLOYMENT.
(B) EXCLUSION.--(1) IN COMPUTING THE AMOUNT OF WAGES AND NET EARN-
INGS FROM SELF-EMPLOYMENT TAXABLE UNDER SUBSECTION (A), THERE SHALL BE
ALLOWED AN EXCLUSION AGAINST THE TOTAL OF WAGES AND NET EARNINGS FROM
SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
TOTAL OF WAGES AND NET EARNINGS
FROM SELF-EMPLOYMENT EXCLUSION ALLOWABLE
NOT OVER $10,000 $3,000
OVER $10,000 BUT NOT OVER $20,000 $2,000
OVER $20,000 BUT NOT OVER $30,000 $1,000
OVER $30,000 NONE
(2) THE EXCLUSION ALLOWABLE SHALL BE APPLIED PRO RATA AGAINST WAGES
AND NET EARNINGS FROM SELF-EMPLOYMENT.
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(3) FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE EXCLUSION ALLOW-
ABLE SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
(C) LIMITATION.--IN NO EVENT SHALL A TAXPAYER BE SUBJECT TO THE TAX
UNDER THIS LOCAL LAW IN AN AMOUNT GREATER THAN HE OR SHE WOULD BE
REQUIRED TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT TO
A TAX ON PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW.
SEC. 3. TAXABLE YEARS TO WHICH THE TAX IMPOSED BY THIS LOCAL LAW
APPLIES; TAX FOR TAXABLE YEARS BEGINNING AFTER JULY FIRST, TWO THOUSAND
FOURTEEN.--THE TAX IMPOSED BY THIS LOCAL LAW IS IMPOSED FOR EACH TAXABLE
YEAR BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND FOURTEEN.
SEC. 4. ACCOUNTING PERIODS AND METHODS.--(A) ACCOUNTING PERIODS.-- A
TAXPAYER'S TAXABLE YEAR UNDER THIS LOCAL LAW SHALL BE THE SAME AS HIS
TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
(B) CHANGE OF ACCOUNTING PERIODS.--IF A TAXPAYER'S TAXABLE YEAR IS
CHANGED FOR FEDERAL INCOME TAX PURPOSES, HIS OR HER TAXABLE YEAR FOR
PURPOSES OF THIS LOCAL LAW SHALL BE SIMILARLY CHANGED. IF A TAXABLE
PERIOD OF LESS THAN TWELVE MONTHS RESULTS FROM A CHANGE OF TAXABLE YEAR,
THE EXCLUSION ALLOWABLE UNDER SECTION TWO OF THIS LOCAL LAW SHALL BE
PRORATED UNDER REGULATIONS OF THE ADMINISTRATOR.
(C) ACCOUNTING METHODS.--A TAXPAYER'S METHOD OF ACCOUNTING UNDER THIS
SECTION SHALL BE THE SAME AS HIS OR HER METHOD OF ACCOUNTING FOR FEDERAL
INCOME TAX PURPOSES. IN THE ABSENCE OF ANY METHOD OF ACCOUNTING FOR
FEDERAL INCOME TAX PURPOSES, NET EARNINGS FROM SELF-EMPLOYMENT WITHIN
THE CITY SHALL BE COMPUTED UNDER SUCH METHOD AS IN THE OPINION OF THE
ADMINISTRATOR CLEARLY REFLECTS NET EARNINGS FROM SELF-EMPLOYMENT WITHIN
THE CITY.
(D) CHANGE OF ACCOUNTING METHODS.--(1) IF A TAXPAYER'S METHOD OF
ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, HIS OR HER METHOD
OF ACCOUNTING FOR PURPOSES OF THIS LOCAL LAW SHALL BE SIMILARLY CHANGED.
(2) IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED, OTHER THAN FROM
AN ACCRUAL TO AN INSTALLMENT METHOD, ANY ADDITIONAL TAX WHICH RESULTS
FROM ADJUSTMENTS DETERMINED TO BE NECESSARY SOLELY BY REASON OF THE
CHANGE SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLO-
CATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING
TAXABLE YEARS, BEGINNING AFTER JULY FIRST, TWO THOUSAND FOURTEEN, NOT IN
EXCESS OF TWO, DURING WHICH THE TAXPAYER USED THE METHOD OF ACCOUNTING
FROM WHICH THE CHANGE IS MADE.
(3) IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED FROM AN ACCRUAL
TO AN INSTALLMENT METHOD, ANY ADDITIONAL TAX FOR THE YEAR OF SUCH CHANGE
OF METHOD AND FOR ANY SUBSEQUENT YEAR WHICH IS ATTRIBUTABLE TO THE
RECEIPT OF INSTALLMENT PAYMENTS PROPERLY ACCRUED IN A PRIOR YEAR, SHALL
BE REDUCED BY THE PORTION OF TAX FOR ANY PRIOR TAXABLE YEAR ATTRIBUTABLE
TO THE ACCRUAL OF SUCH INSTALLMENT PAYMENTS, IN ACCORDANCE WITH REGU-
LATIONS OF THE ADMINISTRATOR.
SEC. 5. RETURNS AND PAYMENT OF TAX.--ON OR BEFORE THE FIFTEENTH DAY
OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, EVERY
PERSON SUBJECT TO THE TAX SHALL MAKE AND FILE A RETURN AND ANY BALANCE
OF THE TAX SHOWN DUE ON THE FACE OF SUCH RETURN SHALL BE PAID THEREWITH.
THE ADMINISTRATOR MAY, BY REGULATION, PROVIDE FOR THE FILING OF RETURNS
AND PAYMENT OF THE TAX AT SUCH OTHER TIMES AS HE OR SHE DEEMS NECESSARY
FOR THE PROPER ENFORCEMENT OF THIS LOCAL LAW. THE ADMINISTRATOR MAY
ALSO PROVIDE BY REGULATION THAT ANY RETURN OTHERWISE REQUIRED TO BE MADE
AND FILED UNDER THIS LOCAL LAW BY ANY NONRESIDENT INDIVIDUAL NEED NOT BE
MADE AND FILED IF SUCH NONRESIDENT INDIVIDUAL HAD, DURING THE TAXABLE
YEAR TO WHICH THE RETURN WOULD RELATE, NO NET EARNINGS FROM SELF-EMPLOY-
A. 2286 6
MENT WITHIN THE CITY. ANY REGULATION ALLOWING SUCH WAIVER OF RETURN MAY
PROVIDE FOR ADDITIONAL LIMITATIONS ON AND CONDITIONS AND PREREQUISITES
TO THE PRIVILEGE OF NOT FILING A RETURN.
SEC. 6. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS.--THE STATE
TAX COMMISSION MAY REQUIRE:
(1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
(A) A COMBINED RETURN WHICH IN ADDITION TO THE RETURN PROVIDED FOR IN
A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO INCLUDE RETURNS REQUIRED
TO BE FILED UNDER A LOCAL LAW AUTHORIZED BY ARTICLE THIRTY OF THE TAX
LAW AND UNDER ARTICLE TWENTY-TWO OF THE TAX LAW.
(B) A COMBINED EMPLOYER'S RETURN WHICH IN ADDITION TO THE EMPLOYER'S
RETURN PROVIDED FOR IN A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO
INCLUDE EMPLOYER'S RETURNS REQUIRED TO BE FILED UNDER A LOCAL LAW
AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW AND UNDER ARTICLE TWENTY-TWO
OF THE TAX LAW.
(2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
RESPECT TO THE PAYMENT OF ESTIMATED TAX, THE STATE TAX COMMISSION MAY
ALSO REQUIRE PAYMENT OF A SINGLE AMOUNT WHICH SHALL BE THE TOTAL OF THE
AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) REQUIRED TO BE PAID
WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN PAYMENT OF ESTIMATED TAX
PURSUANT TO THE PROVISIONS OF LOCAL LAWS IMPOSED UNDER THE AUTHORITY OF
THIS ARTICLE, ARTICLE THIRTY OF THE TAX LAW AND PURSUANT TO THE
PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
SEC. 7. EFFECT OF INVALIDITY IN PART; INCONSISTENCIES WITH OTHER
LAWS.--(A) IF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBSECTION, SECTION,
PROVISION OR OTHER PORTION OF THIS LOCAL LAW OR THE APPLICATION THEREOF
TO ANY PERSON OR CIRCUMSTANCES SHALL BE HELD TO BE INVALID, SUCH HOLDING
SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER OF THIS LOCAL LAW
OR THE APPLICATION OF SUCH PORTION HELD INVALID, TO ANY OTHER PERSON OR
CIRCUMSTANCES, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE,
SENTENCE, PARAGRAPH, SUBSECTION, SECTION, PROVISION OR OTHER PORTION
THEREOF DIRECTLY INVOLVED IN SUCH HOLDING OR TO THE PERSON AND CIRCUM-
STANCES THEREIN INVOLVED.
(B) IF ANY PROVISION OF THIS LOCAL LAW IS INCONSISTENT WITH, IN
CONFLICT WITH, OR CONTRARY TO ANY OTHER PROVISION OF LAW, SUCH PROVISION
OF THIS LOCAL LAW SHALL PREVAIL OVER SUCH OTHER PROVISION AND SUCH OTHER
PROVISION SHALL BE DEEMED TO HAVE BEEN AMENDED, SUPERSEDED OR REPEALED
TO THE EXTENT OF SUCH INCONSISTENCY, CONFLICT OR CONTRARIETY.
S 25-N. ADMINISTRATIVE PROVISIONS. (A) GENERAL. ANY LOCAL LAW ADOPTED
PURSUANT TO THIS ARTICLE SHALL ALSO CONTAIN PROVISIONS NECESSARY AND
APPROPRIATE FOR THE COLLECTION AND THE ADMINISTRATION OF THE TAX HEREIN
AUTHORIZED.
(B) METHODS OF REVIEW.--SUCH LOCAL LAW SHALL ALSO CONTAIN PROVISIONS
SUBSTANTIALLY THE SAME AS THE FOLLOWING:
(I) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR ANY
OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO THE
SUPREME COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH
FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
INSTITUTED UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH
SUCH INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL LAW
OR REGULATION, SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDERTAK-
ING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
STATE AND APPROVED BY THE SUPERINTENDENT OF INSURANCE OF THIS STATE AS
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TO SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE
SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE
DISMISSED OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND
CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT
THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT
TO COVER THE TAXES, INTEREST AND PENALTIES STATED IN SUCH DETERMINATION
PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSE-
CUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE
REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECE-
DENT TO THE APPLICATION.
(II) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR OFFICERS, AND SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH DETERMINATION SHALL BE REVIEWABLE BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED, HOWEVER,
THAT SUCH PROCEEDING IS INSTITUTED WITHIN FOUR MONTHS AFTER THE GIVING
OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE WAS
NOT PREVIOUSLY MADE, AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH SURETIES AS A
JUSTICE OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE PETITIONER WILL PAY
ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
PROCEEDING.
(III) NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRA-
TION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF THE RETURN
EXCEPT THAT WHERE NO RETURN HAS BEEN FILED OR, IN THE CASE OF THE FILING
OF A WILFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX,
THE TAX MAY BE ASSESSED AT ANY TIME; PROVIDED, HOWEVER, WHERE A TAXPAYER
OMITS FROM HIS OR HER RETURN AN AMOUNT WHICH SHOULD BE PROPERLY INCLUDED
THEREIN WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT OF THE
GROSS INCOME DERIVED BY HIM OR HER FROM ANY TRADE OR BUSINESS, NO
ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE
THAN SIX YEARS FROM THE DATE OF THE FILING OF THE RETURN, EXCEPT AS
OTHERWISE PROVIDED HEREIN.
(C) DELEGATION OF FUNCTIONS.--THE LOCAL LAW MAY PROVIDE THAT THE
ADMINISTRATOR OF THE TAX IMPOSED, AS DEFINED IN THE LOCAL LAW, MAY DELE-
GATE HIS OR HER POWERS AND FUNCTIONS UNDER THE LOCAL LAW TO ONE OF HIS
OR HER DEPUTIES OR TO ANY EMPLOYEE OR EMPLOYEES OF HIS OR HER DEPARTMENT
AND AUTHORIZE BANKS OR TRUST COMPANIES WHICH ARE DEPOSITORIES OR FINAN-
CIAL AGENTS OF THE CITY TO RECEIVE AND GIVE A RECEIPT FOR ANY TAX
IMPOSED UNDER THE LOCAL LAW.
S 25-O. DEPOSIT AND DISPOSITION OF REVENUES. ONE HALF THE REVENUES
RESULTING FROM THE IMPOSITION OF THE TAX AUTHORIZED BY THIS ARTICLE
SHALL BE:
(A) PAID INTO THE TREASURY OF THE CITY AND SHALL BE CREDITED TO AND
DEPOSITED IN THE GENERAL FUND OF SUCH CITY AND SHALL BE AVAILABLE FOR
ANY LAWFUL CITY PURPOSE; AND
(B) DEPOSITED IN THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
ASSISTANCE FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-FF OF THE
STATE FINANCE LAW.
(C) SUCH REVENUES SHALL BE DEPOSITED AND DISPOSED OF IN THE SAME
MANNER AS REVENUES RESULTING FROM THE IMPOSITION OF THE TAXES AUTHORIZED
BY ARTICLE THIRTY OF THE TAX LAW.
S 2. Section 1301 of the tax law is amended by adding a new subsection
(c) to read as follows:
A. 2286 8
(C) THE TAXES AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED ONLY IF THE
GENERAL CITY LAW AUTHORIZES THE ADOPTION OF A CITY TAX ON THE EARNINGS
OF NONRESIDENTS AND THE CITY IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE
ALSO IMPOSES SUCH TAX ON THE EARNINGS OF NONRESIDENTS.
S 3. Subsection (b) of section 1305 of the tax law, as amended by
chapter 5 of the laws of 1999, is amended to read as follows:
(b) City nonresident individual. A city nonresident individual means
an individual who is not a resident of such city [or the state of New
York].
S 4. Separability. If any clause, sentence, paragraph or part of this
act shall be adjudged to be unconstitutional or invalid, such judgment
shall not affect, impair, or invalidate, the remainder thereof, but
shall be confined in its operation to the clause, sentence, paragraph,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
S 5. This act shall take effect immediately. The commissioner of
taxation and finance is authorized to promulgate immediately and on an
emergency basis all necessary and reasonable rules and regulations for
the timely implementation of this act.