S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    135
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing a  payroll  tax
   for  the  purpose of child care for families with children under three
   years of age within certain counties; and providing for the repeal  of
   such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 24-C to read
 as follows:
                               ARTICLE 24-C
                  CENTRAL NEW YORK CHILD CARE PAYROLL TAX
 SECTION 880. DEFINITIONS.
         881. IMPOSITION OF TAX AND RATE.
         882. PASS THROUGH OF TAX PROHIBITED.
         883. EXEMPTION OVERRIDE.
         884. PAYMENT OF TAX.
         885. DEPOSIT AND DISPOSITION OF REVENUE.
         886. PROCEDURAL PROVISIONS.
         887. ENFORCEMENT WITH OTHER TAXES.
   § 880. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   (A) EMPLOYER. EMPLOYER MEANS  AN  EMPLOYER  REQUIRED  BY  SECTION  SIX
 HUNDRED  SEVENTY-ONE  OF  THIS  CHAPTER  TO DEDUCT AND WITHHOLD TAX FROM
 WAGES THAT HAVE A PAYROLL EXPENSE IN EXCESS OF SIX  HUNDRED  TWENTY-FIVE
 THOUSAND DOLLARS IN ANY CALENDAR QUARTER; OTHER THAN:
   (1) ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES;
   (2) THE UNITED NATIONS;
   (3)  AN INTERSTATE AGENCY OR PUBLIC CORPORATION CREATED PURSUANT TO AN
 AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00325-01-3
              

 A. 135                              2
 
   (4)  (I)  ANY  NON-PROFIT  EARLY  CHILDHOOD  SERVICES  PROVIDER  WHICH
 RECEIVES FUNDING FROM THE FEDERAL OR STATE GOVERNMENT, OR ANY MUNICIPAL,
 STATE OR FEDERAL AGENCY, OR POLITICAL SUBDIVISION.
   (II)  AS  USED  IN  THIS  SECTION, THE TERM "EARLY CHILDHOOD SERVICES"
 SHALL MEAN SERVICES WHICH INCLUDE, BUT ARE NOT LIMITED  TO,  REGISTERED,
 CERTIFIED  OR  LICENSED  CARE IN FAMILY DAY CARE HOMES; GROUP FAMILY DAY
 CARE HOMES; SCHOOL-AGE CHILD CARE PROGRAMS;  HEAD  START  PROGRAMS;  DAY
 CARE CENTERS; CHILD CARE WHICH MAY BE PROVIDED WITHOUT A PERMIT, CERTIF-
 ICATE  OR  REGISTRATION IN ACCORDANCE WITH THIS STATUTE; EARLY CHILDHOOD
 EDUCATION PROGRAMS APPROVED BY THE STATE EDUCATION DEPARTMENT; AND  CARE
 PROVIDED  IN A CHILDREN'S CAMP AS DEFINED IN SECTION FOURTEEN HUNDRED OF
 THE PUBLIC HEALTH LAW.
   (B) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND  COMPENSATION  AS
 DEFINED  IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT
 REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO  ALL
 COVERED EMPLOYEES.
   (C)  COVERED  EMPLOYEE.  COVERED  EMPLOYEE  MEANS  AN  EMPLOYEE WHO IS
 EMPLOYED IN THE COUNTIES OF  ONONDAGA,  MADISON,  CAYUGA,  CORTLAND  AND
 OSWEGO.
   §  881.  IMPOSITION  OF  TAX AND RATE. FOR THE PURPOSE OF PROVIDING AN
 ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE TO ADDRESS CHILD
 CARE AFFORDABILITY, ACCESSIBILITY, AND QUALITY FOR FAMILIES  WITH  CHIL-
 DREN  UNDER THREE YEARS OF AGE, A TAX IS HEREBY IMPOSED ON EMPLOYERS WHO
 ENGAGE IN BUSINESS IN THE COUNTIES OF ONONDAGA, MADISON,  CAYUGA,  CORT-
 LAND AND OSWEGO AND INDIVIDUALS AS FOLLOWS: THE TAX IS IMPOSED AT A RATE
 OF  (A)  FIFTEEN  HUNDREDTHS  (.15)  PERCENT  OF THE PAYROLL EXPENSE FOR
 EMPLOYERS WITH PAYROLL EXPENSE IN  EXCESS  OF  SIX  HUNDRED  TWENTY-FIVE
 THOUSAND  DOLLARS  AND NOT MORE THAN ONE MILLION TWO HUNDRED FIFTY THOU-
 SAND DOLLARS PER CALENDAR QUARTER, (B) EIGHTEEN HUNDREDTHS (.18) PERCENT
 OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH PAYROLL EXPENSE IN  EXCESS  OF
 ONE  MILLION  TWO  HUNDRED  FIFTY THOUSAND DOLLARS AND NOT MORE THAN TWO
 MILLION FIVE HUNDRED THOUSAND DOLLARS  PER  CALENDAR  QUARTER,  AND  (C)
 TWENTY-TWO HUNDREDTHS (.22) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS
 WITH  PAYROLL  EXPENSE  IN  EXCESS  OF TWO MILLION FIVE HUNDRED THOUSAND
 DOLLARS PER CALENDAR QUARTER. IF THE EMPLOYER IS A PROFESSIONAL EMPLOYER
 ORGANIZATION, AS DEFINED IN SECTION NINE HUNDRED SIXTEEN  OF  THE  LABOR
 LAW,  THE  EMPLOYER'S TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL
 EXPENSE ATTRIBUTABLE TO EACH CLIENT WHO HAS ENTERED INTO A  PROFESSIONAL
 EMPLOYER  AGREEMENT  WITH  SUCH  ORGANIZATION  AND  THE  PAYROLL EXPENSE
 ATTRIBUTABLE TO SUCH ORGANIZATION  ITSELF,  MULTIPLYING  EACH  OF  THOSE
 PAYROLL  EXPENSE  AMOUNTS BY THE APPLICABLE RATE SET FORTH IN THIS PARA-
 GRAPH AND ADDING THOSE PRODUCTS TOGETHER.
   § 882. PASS THROUGH OF TAX PROHIBITED. AN EMPLOYER CANNOT DEDUCT  FROM
 THE  WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL
 OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE.
   § 883. EXEMPTION OVERRIDE. (A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF
 THIS SECTION, ANY EXEMPTION FROM TAX SPECIFIED IN ANY  OTHER  STATE  LAW
 WILL NOT APPLY TO THE TAX IMPOSED BY THIS ARTICLE.
   (B)  FOR  A  TAX-FREE  NY  AREA APPROVED PURSUANT TO THE PROVISIONS OF
 ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, THE PAYROLL  EXPENSE
 IN  SUCH TAX-FREE NY AREA OF ANY EMPLOYER AND ACCEPTED INTO THE START-UP
 NY PROGRAM SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS ARTICLE.
   § 884. PAYMENT OF TAX. EMPLOYERS WITH PAYROLL EXPENSE. THE TAX IMPOSED
 ON THE PAYROLL EXPENSE OF EMPLOYERS UNDER SECTION EIGHT  HUNDRED  SIXTY-
 ONE  OF  THIS  ARTICLE  MUST  BE  PAID  AT THE SAME TIME THE EMPLOYER IS
 REQUIRED TO REMIT PAYMENTS UNDER SECTION  SIX  HUNDRED  SEVENTY-FOUR  OF
 A. 135                              3
 
 THIS CHAPTER; PROVIDED HOWEVER, THAT EMPLOYERS SUBJECT TO THE PROVISIONS
 OF  SECTION NINE OF THIS CHAPTER MUST PAY THE TAX ON THE PAYROLL EXPENSE
 AT THE SAME TIME AS THE WITHHOLDING TAX REMITTED  UNDER  THE  ELECTRONIC
 PAYMENT  REPORTING  SYSTEM  AND  THE  ELECTRONIC  FUNDS  TRANSFER SYSTEM
 AUTHORIZED BY SECTION NINE OF THIS CHAPTER.
   § 885. DEPOSIT AND DISPOSITION OF REVENUE. (A)  THE  TAXES,  INTEREST,
 AND  PENALTIES  IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE
 COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
 ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE  COMPTROLLER,
 TO  THE CREDIT OF SUCH COMPTROLLER IN TRUST. SUCH DEPOSITS SHALL BE KEPT
 SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF  THE  COMP-
 TROLLER.  THE  COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH
 DEPOSITORIES. OF THE TOTAL REVENUE  COLLECTED  OR  RECEIVED  UNDER  THIS
 ARTICLE,  THE  COMPTROLLER  SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER
 MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE  COMP-
 TROLLER  IS  AUTHORIZED  AND  DIRECTED  TO  DEDUCT  FROM  THE AMOUNTS IT
 RECEIVES UNDER THIS ARTICLE, BEFORE  DEPOSIT  INTO  THE  TRUST  ACCOUNTS
 DESIGNATED  BY SUCH COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFEC-
 TUATE REFUNDS OF THE DEPARTMENT TO  REIMBURSE  THE  DEPARTMENT  FOR  THE
 COSTS  INCURRED  TO ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES IMPOSED
 BY THIS ARTICLE.
   (B) AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS  AND  DEDUCTING  SUCH
 AMOUNTS  FOR  SUCH  COSTS,  AS  PROVIDED  FOR  IN SUBSECTION (A) OF THIS
 SECTION, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF
 ALL REVENUES SO RECEIVED DURING THE PRIOR  MONTH  AS  A  RESULT  OF  THE
 TAXES,  INTEREST  AND  PENALTIES  SO  IMPOSED. THE AMOUNT OF REVENUES SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT  WITHOUT  APPROPRIATION  INTO
 THE GENERAL FUND.
   §  886.  PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE
 TWENTY-TWO OF THIS CHAPTER SHALL APPLY TO THE PROVISIONS OF THIS ARTICLE
 IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
 OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO
 THIS ARTICLE AND  HAD  BEEN  SPECIFICALLY  ADJUSTED  FOR  AND  EXPRESSLY
 REFERRED  TO  THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT
 ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR
 IS  NOT  RELEVANT  TO  THIS  ARTICLE.    NOTWITHSTANDING  THE  PRECEDING
 SENTENCE,  NO  CREDIT  AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER
 CAN BE USED TO OFFSET THE TAX DUE UNDER THIS ARTICLE.
   (B) COMBINED FILINGS. NOTWITHSTANDING ANY  OTHER  PROVISIONS  OF  THIS
 ARTICLE:
   (1) THE COMMISSIONER MAY REQUIRE THE FILING OF A COMBINED RETURN WHICH
 MAY  ALSO  INCLUDE ANY OF THE RETURNS REQUIRED TO BE FILED BY A TAXPAYER
 PURSUANT TO THE PROVISIONS OF SECTION  SIX  HUNDRED  FIFTY-ONE  OF  THIS
 CHAPTER  AND WHICH MAY BE REQUIRED TO BE FILED BY SUCH TAXPAYER PURSUANT
 TO ANY LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY  OF  ARTICLE  THIRTY,
 THIRTY-A OR THIRTY-B OF THIS CHAPTER.
   (2)  WHERE  A  COMBINED  RETURN  IS  REQUIRED, AND WITH RESPECT TO THE
 PAYMENT OF ESTIMATED TAX, THE COMMISSIONER MAY ALSO REQUIRE THE  PAYMENT
 TO  IT  OF  A  SINGLE  AMOUNT WHICH SHALL EQUAL THE TOTAL OF THE AMOUNTS
 (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) WHICH WOULD HAVE BEEN REQUIRED
 TO BE PAID WITH THE RETURNS OR IN PAYMENT OF ESTIMATED TAX  PURSUANT  TO
 THE  PROVISIONS OF THIS ARTICLE, THE PROVISIONS OF ARTICLE TWENTY-TWO OF
 THIS CHAPTER, AND THE PROVISIONS OF LOCAL LAWS ENACTED UNDER THE AUTHOR-
 ITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER.
 A. 135                              4
 
   (3) NOTWITHSTANDING ANY OTHER LAW TO THE  CONTRARY,  THE  COMMISSIONER
 MAY  REQUIRE  THAT  ALL  FILINGS  OF FORMS OR RETURNS UNDER THIS ARTICLE
 SHALL BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELEC-
 TRONICALLY.
   § 887. ENFORCEMENT WITH OTHER TAXES. (A) JOINT ASSESSMENT. IF THERE IS
 ASSESSED  A  TAX  UNDER  THIS  ARTICLE  AND THERE IS ALSO ASSESSED A TAX
 AGAINST THE SAME TAXPAYER PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER
 OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE  THIR-
 TY,  THIRTY-A,  OR  THIRTY-B  OF  THIS  CHAPTER, 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)  JOINT ACTION. IF THE COMMISSIONER TAKES ACTION UNDER SUCH ARTICLE
 TWENTY-TWO OR UNDER A LOCAL LAW ENACTED PURSUANT  TO  THE  AUTHORITY  OF
 ARTICLE  THIRTY,  THIRTY-A,  OR THIRTY-B OF THIS CHAPTER WITH RESPECT TO
 THE ENFORCEMENT AND COLLECTION OF THE TAX OR TAXES ASSESSED  UNDER  SUCH
 ARTICLES,  THE  COMMISSIONER  SHALL,  WHENEVER  POSSIBLE  AND NECESSARY,
 ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION  UNDER  SIMILAR  ENFORCEMENT
 AND COLLECTION PROVISIONS OF THE TAX IMPOSED BY THIS ARTICLE.
   (C)  APPORTIONMENT  OF  MONEYS  COLLECTED  BY JOINT ACTION. ANY MONEYS
 COLLECTED AS A RESULT OF SUCH JOINT ACTION SHALL BE DEEMED TO HAVE  BEEN
 COLLECTED  IN  PROPORTION  TO THE AMOUNTS DUE, INCLUDING TAX, PENALTIES,
 INTEREST AND ADDITIONS TO TAX, UNDER ARTICLE TWENTY-TWO OF THIS  CHAPTER
 OR  UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
 TY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER AND THE TAX  IMPOSED  BY  THIS
 ARTICLE.
   (D)  JOINT  DEFICIENCY  ACTION.  WHENEVER  THE  COMMISSIONER TAKES ANY
 ACTION WITH RESPECT TO A DEFICIENCY OF INCOME TAX UNDER ARTICLE  TWENTY-
 TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHOR-
 ITY OF ARTICLE THIRTY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER, OTHER THAN
 THE ACTION SET FORTH IN SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER
 MAY IN HIS OR HER DISCRETION ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION
 UNDER THIS ARTICLE.
   §  2.  This act shall take effect immediately, and shall expire and be
 deemed repealed 5 years after such effective date.