S. 9454 2
§ 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 16 to read as follows:
(16) THE AMOUNT OF ANY GRANT RECEIVED THROUGH EITHER THE COVID-19
PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM, PURSUANT TO SECTION
SIXTEEN-FF OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT, OR
THE SMALL BUSINESS RESILIENCE GRANT PROGRAM ADMINISTERED BY THE DEPART-
MENT OF SMALL BUSINESS SERVICES, TO THE EXTENT THE AMOUNT OF EITHER SUCH
GRANT IS INCLUDED IN FEDERAL TAXABLE INCOME.
§ 4. Section 11-641 of the administrative code of the city of New York
is amended by adding a new subdivision (t) to read as follows:
(T) ENTIRE NET INCOME SHALL NOT INCLUDE THE AMOUNT OF ANY GRANT
RECEIVED THROUGH EITHER THE COVID-19 PANDEMIC SMALL BUSINESS RECOVERY
GRANT PROGRAM, PURSUANT TO SECTION SIXTEEN-FF OF THE NEW YORK STATE
URBAN DEVELOPMENT CORPORATION ACT, OR THE SMALL BUSINESS RESILIENCE
GRANT PROGRAM ADMINISTERED BY THE DEPARTMENT OF SMALL BUSINESS SERVICES,
TO THE EXTENT THE AMOUNT OF EITHER SUCH GRANT IS INCLUDED IN FEDERAL
TAXABLE INCOME.
§ 5. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 17 to read as follows:
(17) THE AMOUNT OF ANY GRANT RECEIVED THROUGH EITHER THE COVID-19
PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM, PURSUANT TO SECTION
SIXTEEN-FF OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT, OR
THE SMALL BUSINESS RESILIENCE GRANT PROGRAM ADMINISTERED BY THE DEPART-
MENT OF SMALL BUSINESS SERVICES, TO THE EXTENT THE AMOUNT OF EITHER SUCH
GRANT IS INCLUDED IN FEDERAL TAXABLE INCOME.
§ 6. Subparagraph 3 of paragraph (b) of subdivision 8 of section
11-652 of the administrative code of the city of New York, as added by
section 1 of part D of chapter 60 of the laws of 2015, is amended to
read as follows:
(3) taxes on or measured by profits or income paid or accrued to the
United States, any of its possessions, territories or commonwealths,
including taxes in lieu of any of the foregoing taxes otherwise general-
ly imposed by any possession, territory or commonwealth of the United
States, or taxes ON OR MEASURED BY PROFITS OR INCOME paid or accrued to
the state OR ANY SUBDIVISION THEREOF, INCLUDING TAXES PAID OR ACCRUED
under article nine, nine-A, thirteen-A, TWENTY-FOUR-A, TWENTY-FOUR-B OF
THE TAX LAW or UNDER ARTICLE thirty-two of the tax law as in effect on
December thirty-first, two thousand fourteen;
§ 7. Subdivision 1 and the opening paragraphs of subdivisions 2 and
2-a of section 11-653 of the administrative code of the city of New
York, as added by section 1 of part D of chapter 60 of the laws of 2015
and paragraph (a) of subdivision 1 as amended by section 20 of part Q of
chapter 60 of the laws of 2016, are amended to read as follows:
1. (a) For the privilege of doing business, or of employing capital,
or of owning or leasing property in the city in a corporate or organized
capacity, or of maintaining an office in the city, OR OF DERIVING
RECEIPTS FROM ACTIVITY IN THE CITY, for all or any part of each of its
fiscal or calendar years, every domestic or foreign corporation, except
corporations specified in subdivision four of this section, shall annu-
ally pay a tax, upon the basis of its business income, or upon such
other basis as may be applicable as hereinafter provided, for such
fiscal or calendar year or part thereof, on a report that shall be
filed, except as hereinafter provided, for taxable years beginning
before January first, two thousand sixteen, on or before the fifteenth
S. 9454 3
day of March next succeeding the close of each such calendar year, or,
in the case of a taxpayer that reports on the basis of a fiscal year,
within two and one-half months after the close of each such fiscal year,
and for taxable years beginning on or after January first, two thousand
sixteen, on or before the fifteenth day of April next succeeding the
close of each such calendar year, or, in the case of a taxpayer that
reports on the basis of a fiscal year, within three and one-half months
after the close of each such fiscal year, and shall be paid as herein-
after provided.
(b) [Intentionally omitted] A CORPORATION IS DERIVING RECEIPTS FROM
ACTIVITY IN THE CITY IF IT HAS RECEIPTS WITHIN THE CITY OF ONE MILLION
DOLLARS OR MORE IN A TAXABLE YEAR. FOR PURPOSES OF THIS SECTION, THE
TERM "RECEIPTS" MEANS THE RECEIPTS THAT ARE SUBJECT TO THE ALLOCATION
RULES SET FORTH IN SECTION 11-654.2 OF THIS SUBCHAPTER, AND THE TERM
"RECEIPTS WITHIN THE CITY" MEANS THE RECEIPTS INCLUDED IN THE NUMERATOR
OF THE RECEIPTS FRACTION DETERMINED UNDER SECTION 11-654.2 OF THIS
SUBCHAPTER. FOR PURPOSES OF THIS PARAGRAPH, RECEIPTS FROM PROCESSING
CREDIT CARD TRANSACTIONS FOR MERCHANTS INCLUDE MERCHANT DISCOUNT FEES
RECEIVED BY THE CORPORATION.
(c) A corporation is doing business in the city if (1) it has issued
credit cards to one thousand or more customers who have a mailing
address within the city as of the last day of its taxable year, (2) it
has merchant customer contracts with merchants and the total number of
locations covered by those contracts equals one thousand or more
locations in the city to whom the corporation remitted payments for
credit card transactions during the taxable year, or (3) the sum of the
number of customers described in subparagraph one of this paragraph plus
the number of locations covered by its contracts described in subpara-
graph two of this paragraph equals one thousand or more. As used in this
subdivision, the term "credit card" includes bank, credit, travel and
entertainment cards.
(d) [Intentionally omitted] (1) A CORPORATION WITH LESS THAN ONE
MILLION DOLLARS BUT AT LEAST TEN THOUSAND DOLLARS OF RECEIPTS WITHIN THE
CITY IN A TAXABLE YEAR THAT IS PART OF A UNITARY GROUP THAT MEETS THE
OWNERSHIP TEST UNDER SECTION 11-654.3 OF THIS SUBCHAPTER IS DERIVING
RECEIPTS FROM ACTIVITY IN THE CITY IF THE RECEIPTS WITHIN THE CITY OF
THE MEMBERS OF THE UNITARY GROUP THAT HAVE AT LEAST TEN THOUSAND DOLLARS
OF RECEIPTS WITHIN THE CITY IN THE AGGREGATE MEET THE THRESHOLD SET
FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION.
(2) A CORPORATION THAT DOES NOT MEET ANY OF THE THRESHOLDS SET FORTH
IN PARAGRAPH (C) OF THIS SUBDIVISION BUT HAS AT LEAST TEN CUSTOMERS, OR
LOCATIONS, OR CUSTOMERS AND LOCATIONS, AS DESCRIBED IN PARAGRAPH (C) OF
THIS SUBDIVISION, AND IS PART OF A UNITARY GROUP THAT MEETS THE OWNER-
SHIP TEST UNDER SECTION 11-654.3 OF THIS SUBCHAPTER, IS DOING BUSINESS
IN THE CITY IF THE NUMBER OF CUSTOMERS, LOCATIONS, OR CUSTOMERS AND
LOCATIONS, WITHIN THE CITY OF THE MEMBERS OF THE UNITARY GROUP THAT HAVE
AT LEAST TEN CUSTOMERS, LOCATIONS, OR CUSTOMERS AND LOCATIONS, WITHIN
THE CITY IN THE AGGREGATE MEETS ANY OF THE THRESHOLDS SET FORTH IN PARA-
GRAPH (C) OF THIS SUBDIVISION.
(3) FOR PURPOSES OF THIS PARAGRAPH, ANY CORPORATION DESCRIBED IN PARA-
GRAPH (C) OF SUBDIVISION TWO OF SECTION 11-654.3 OF THIS SUBCHAPTER
SHALL NOT BE CONSIDERED.
(e) [Intentionally omitted] AT THE END OF EACH YEAR, THE COMMISSIONER
SHALL REVIEW THE CUMULATIVE PERCENTAGE CHANGE IN THE CONSUMER PRICE
INDEX. THE COMMISSIONER SHALL ADJUST THE RECEIPT THRESHOLDS SET FORTH IN
THIS SUBDIVISION IF THE CONSUMER PRICE INDEX HAS CHANGED BY TEN PERCENT
S. 9454 4
OR MORE SINCE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, OR SINCE THE DATE
THAT THE THRESHOLDS WERE LAST ADJUSTED UNDER THIS SUBDIVISION. THE
THRESHOLDS SHALL BE ADJUSTED TO REFLECT THE CUMULATIVE PERCENTAGE CHANGE
IN THE CONSUMER PRICE INDEX. THE ADJUSTED THRESHOLDS SHALL BE ROUNDED TO
THE NEAREST ONE THOUSAND DOLLARS. AS USED IN THIS PARAGRAPH, "CONSUMER
PRICE INDEX" MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
(CPI-U) AVAILABLE FROM THE BUREAU OF LABOR STATISTICS OF THE UNITED
STATES DEPARTMENT OF LABOR. ANY ADJUSTMENT SHALL APPLY TO TAX PERIODS
THAT BEGIN AFTER THE ADJUSTMENT IS MADE.
(f) If a partnership is doing business, employing capital, owning or
leasing property in the city, or maintaining an office in the city, OR
DERIVING RECEIPTS FROM ACTIVITY IN THE CITY, any corporation that is a
partner in such partnership shall be subject to tax under this subchap-
ter as described in the regulations of the commissioner of finance.
A foreign corporation shall not be deemed to be doing business,
employing capital, owning or leasing property, or maintaining an office
in the city, OR DERIVING RECEIPTS FROM ACTIVITY IN THE CITY, for the
purposes of this subchapter, by reason of:
An alien corporation shall not be deemed to be doing business,
employing capital, owning or leasing property, or maintaining an office
in the city, OR DERIVING RECEIPTS FROM ACTIVITY IN THE CITY, for the
purposes of this subchapter, if its activities in the city are limited
solely to:
§ 8. Subdivision 1 of section 11-677 of the administrative code of the
city of New York is amended to read as follows:
1. General. The commissioner of finance, within the applicable period
of limitations, may credit an overpayment of tax and interest on such
overpayment against any liability in respect of any tax imposed by [any
of the named subchapters of this chapter or] THIS TITLE on the taxpayer
who made the overpayment, and the balance shall be refunded out of the
proceeds of the tax. SUCH CREDIT OF AN OVERPAYMENT SHALL BE APPLIED
BEFORE SUCH OVERPAYMENT, OR ANY PORTION THEREOF, IS PAID TO THE STATE
COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SECTION ONE HUNDRED
SEVENTY-ONE-M OF THE TAX LAW.
§ 9. Subdivision h of section 11-2105 of the administrative code of
the city of New York, as added by chapter 297 of the laws of 2019, is
amended to read as follows:
h. When the grantor or grantee of a deed for A BUILDING USED AS resi-
dential real property containing [one- to four-family] UP TO FOUR FAMILY
dwelling units is a limited liability company, the joint return shall
not be accepted for filing unless it is accompanied by a document which
identifies the names and business addresses of all members, managers,
and any other authorized persons, if any, of such limited liability
company and the names and business addresses or, if none, the business
addresses of all shareholders, directors, officers, members, managers
and partners of any limited liability company or other business entity
that are to be the members, managers or authorized persons, if any, of
such limited liability company. The identification of such names and
addresses shall not be deemed an unwarranted invasion of personal priva-
cy pursuant to article six of the public officers law. If any such
member, manager or authorized person of the limited liability company is
itself a limited liability company or other business entity OTHER THAN A
PUBLICLY TRADED ENTITY, A REIT, AN UPREIT, OR A MUTUAL FUND, the names
and addresses of the shareholders, directors, officers, members, manag-
ers and partners of the limited liability company or other business
entity shall also be disclosed until full disclosure of ultimate owner-
S. 9454 5
ship by natural persons is achieved. For purposes of this subdivision,
the terms "members", "managers", "authorized person", "limited liability
company" and "other business entity" shall have the same meaning as
those terms are defined in section one hundred two of the limited
liability company law.
§ 10. Subsection (b) of section 868 of the tax law, as added by
section 1 of subpart B of part MM of chapter 59 of the laws of 2022, is
amended to read as follows:
(b) In order to be effective, the annual election to be taxed pursuant
to this article must be made by [a city taxpayer and (1) if the entity
is an S corporation, by any officer, manager or shareholder of the S
corporation who is authorized under the law of the state where the
corporation is incorporated or under the S corporation's organizational
documents to make the election and who represents to having such author-
ization under penalty of perjury; or (2) if the entity is not an S
corporation, by any member, partner, owner, or other individual with
authority to bind the entity or sign returns pursuant to section six
hundred fifty-three of this chapter] AN INDIVIDUAL AS DESCRIBED IN
SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER WHO
MADE THE ANNUAL ELECTION TO BE TAXED PURSUANT TO ARTICLE TWENTY-FOUR-A
OF THIS CHAPTER FOR THE TAXABLE YEAR.
§ 11. Paragraph 3 of subsection (b) of section 864 of the tax law, as
added by section 1 of part C of chapter 59 of the laws of 2021, is
amended to read as follows:
(3) [The] NOTWITHSTANDING PARAGRAPH FOUR OF SUBSECTION (C) OF SECTION
SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER, THE required annual payment is
the lesser of: (A) ninety percent of the tax shown on the return for the
taxable year; or (B) one hundred percent of the tax shown on the return
of the electing partnership or electing S corporation for the preceding
taxable year.
§ 12. Paragraph 3 of subsection (b) of section 871 of the tax law, as
added by section 1 of subpart B of part MM of chapter 59 of the laws of
2022, is amended to read as follows:
(3) [The] WITHOUT REGARD TO PARAGRAPH FOUR OF SUBSECTION (C) OF
SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER, THE required annual
payment is the lesser of: (A) ninety percent of the tax shown on the
return for the taxable year; or (B) one hundred percent of the tax shown
on the return of the electing city partnership or electing city resident
S corporation for the preceding taxable year.
§ 13. Paragraph 3 of subsection (c) of section 873 of the tax law, as
added by section 1 of subpart B of part MM of chapter 59 of the laws of
2022, is amended to read as follows:
(3) Any [city] taxpayer eligible to claim a credit authorized pursuant
to subsection (g) of section thirteen hundred ten of this chapter OR A
CREDIT AUTHORIZED PURSUANT TO SUBSECTION (KKK) OF SECTION SIX HUNDRED
SIX OF THIS CHAPTER because such taxpayer is a partner or member in an
electing city partnership or a shareholder in an electing city resident
S corporation, either directly or through a disregarded entity, that is
a general, managing or controlling partner of the electing city partner-
ship or managing or controlling shareholder of the electing city resi-
dent S corporation, or owns greater than fifty percent of the interests
or profits of the electing city partnership or electing city resident S
corporation, or is under a duty to act for the electing city partnership
or electing city resident S corporation in complying with the provisions
of this article, or was the individual that made the election on behalf
of the electing city partnership or electing city resident S corporation
S. 9454 6
authorized by section eight hundred sixty-eight of this article, shall
be jointly and severally liable for the tax imposed pursuant to this
article on such electing city partnership or electing city resident S
corporation.
§ 14. Section 12 of subpart B of part MM of chapter 59 of the laws of
2022 is amended to read as follows:
§ 12. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, [2023] 2022; provided, howev-
er, that subparagraph 3 of paragraph (b) of subdivision 8 of section
11-602 of the administrative code of the city of New York as amended by
section nine of this act and paragraph 2 of subdivision (b) of section
11-641 of the administrative code of the city of New York as amended by
section ten of this act other than the amendments in those sections
relating to article 24-B of the tax law, shall be deemed to have been in
full force and effect on and after January 1, 2021.
§ 15. (a) Notwithstanding section 868 of the tax law, as amended by
section ten of this act, the election to be taxed pursuant to article
24-B of the tax law for taxable year 2022 must be made by March 15,
2023, in a manner prescribed by the commissioner.
(b) Further for the taxable year 2022, notwithstanding section 871 of
the tax law, as amended by section twelve of this act, an electing city
partnership or electing city S corporation shall not be required to make
estimated tax payments for taxable year 2022.
(c) For taxable year 2022, city taxpayers who are partners, members or
shareholders of electing city partnerships and electing city S corpo-
rations shall continue to make the required New York city personal
income tax estimated tax payments, calculated as if they were not enti-
tled to the tax credit allowed pursuant to subsection (g) of section
1310 of the tax law. Any addition to tax imposed under subsection (c) of
section 685 of the tax law for the failure of a partner or member of an
electing city partnership or a shareholder of an electing city S corpo-
ration to make such required estimated tax payments for the 2022 taxable
year shall be calculated as if such partner, member, or shareholder was
not entitled to a tax credit allowed pursuant to subsection (g) of
section 1310 of the tax law.
§ 16. This act shall take effect immediately; provided, however,
sections one, three, four, and five of this act shall be retroactive to
and deemed to have been in full force and effect as of January 1, 2021,
and shall be applicable to tax years beginning on or after such date;
and provided further, however, sections six, seven, ten, eleven, twelve,
thirteen, fourteen, and fifteen of this act shall apply to tax years
beginning on or after January 1, 2022.
