[ ] is old law to be omitted.
LBD12574-02-3
S. 4009--A 2 A. 3009--A
theatrical production tax credit and establishing the New York state
council on the arts cultural program fund, in relation to the effec-
tiveness thereof; and to amend the tax law, in relation to the New
York city musical and theatrical production tax credit (Subpart
E)(Part I); to amend the tax law, in relation to making technical
corrections to the credit for companies who provide transportation to
individuals with disabilities (Subpart A); to amend the tax law, in
relation to eligibility for the brownfield redevelopment tax credit
(Subpart B); to amend the tax law, in relation to the pass-through
entity tax and city pass-through entity tax and making technical
corrections thereto (Subpart C) (Part J); to amend the real property
tax law, in relation to simplifying the senior citizens real property
tax exemption (Part K); to amend chapter 540 of the laws of 1992,
amending the real property tax law relating to oil and gas charges, in
relation to the effectiveness thereof (Part L); to amend the real
property tax law, in relation to requiring excess proceeds from a tax
foreclosure sale to be returned to the former owner (Part M); to amend
the real property tax law and the state administrative procedure act,
in relation to clarifying the solar or wind energy system appraisal
model (Part N); to amend the tax law, in relation to the authority of
counties to impose sales and compensating use taxes permanently; to
amend chapter 67 of the laws of 2015, relating to authorizing the city
of Yonkers to impose additional sales tax, in relation to the effec-
tiveness thereof; to amend section 2 of item R of subpart C of part
XXX of chapter 58 of the laws of 2020 amending the tax law relating to
extending the expiration of the authorization to the county of Genesee
to impose an additional one percent of sales and compensating use
taxes, in relation to making such provisions permanent; to amend
section 2 of item Z of subpart C of part XXX of chapter 58 of the laws
of 2020 amending the tax law relating to the imposition of sales
and compensating use taxes by the county of Monroe, in relation to
making such provisions permanent; to amend section 4 of item EE of
subpart C of part XXX of chapter 58 of the laws of 2020 amending the
tax law relating to extending the authorization of the county of Onon-
daga to impose an additional rate of sales and compensating use
taxes, in relation to making such provisions permanent; to amend
section 2 of item GG of subpart C of part XXX of chapter 58 of the
laws of 2020 amending the tax law relating to extending the authority
of the county of Orange to impose an additional rate of sales and
compensating use taxes, in relation to making such provisions perma-
nent; to amend section 3 of item XX of subpart C of part XXX of chap-
ter 58 of the laws of 2020 amending the tax law relating to extending
the authority of the county of Ulster to impose an additional 1
percent sales and compensating use tax, in relation to making such
provisions permanent; and to repeal certain provisions of such law
relating thereto (Part O); to repeal certain provisions of the tax
law, relating to eliminating congestion surcharge registration
requirements (Part P); to amend the tax law, in relation to the
payment of tax on increased quantities of motor fuel and Diesel motor
fuel on which the taxes pursuant to articles 12-A, 13-A and 28 were
not previously paid (Part Q); to amend the tax law, in relation to
extending the sales tax exemption for certain sales made through vend-
ing machines for those operated by business enterprise program partic-
ipants (Part R); to amend the tax law, in relation to an increase in
the rate of tax on cigarettes (Part S); to amend the tax law, in
relation to the revocation of certain certificates and civil penalties
S. 4009--A 3 A. 3009--A
for refusal of a cigarette and tobacco inspection (Part T); to amend
the tax law and the administrative code of the city of New York, in
relation to extending the tax rate reduction under the New York state
real estate transfer tax and the New York city real property transfer
tax for conveyances of real property to existing real estate invest-
ment funds (Part U); to amend the tax law, in relation to permitting
the commissioner of taxation and finance to seek judicial review of
decisions of the tax appeals tribunal (Part V); to amend the state
finance law, in relation to clarifying the deposit timeframe for
moneys deposited by the commissioner of taxation and finance (Part W);
to amend the tax law, in relation to requiring the New York Racing
Association, Inc. to enter into a repayment agreement with the state
of New York for the repayment of funds provided by the state for the
renovation of Belmont Park (Part X); to amend the tax law, in relation
to a keno style lottery game (Part Y); to amend the racing, pari-mutu-
el wagering and breeding law, in relation to the operations of off-
track betting corporations (Part Z); to amend the racing, pari-mutuel
wagering and breeding law, in relation to the utilization of funds in
the Capital region off-track betting corporations' capital acquisition
funds (Part AA); to amend the racing, pari-mutuel wagering and breed-
ing law, in relation to licenses for simulcast facilities, sums relat-
ing to track simulcast, simulcast of out-of-state thoroughbred races,
simulcasting of races run by out-of-state harness tracks and distrib-
utions of wagers; to amend chapter 281 of the laws of 1994 amending
the racing, pari-mutuel wagering and breeding law and other laws
relating to simulcasting; to amend chapter 346 of the laws of 1990
amending the racing, pari-mutuel wagering and breeding law and other
laws relating to simulcasting and the imposition of certain taxes, in
relation to extending certain provisions thereof; and to amend the
racing, pari- mutuel wagering and breeding law, in relation to extend-
ing certain provisions thereof (Part BB); and to amend the tax law, in
relation to conforming to the federal taxation of S corporations (Part
CC)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2023-2024
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through CC. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part,
including the effective date of the Part, which makes a reference to a
section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Section 1. The opening paragraph of paragraph a of subdivision twen-
ty-eighth of section 171 of the tax law, as amended by chapter 451 of
the laws of 2022, is amended to read as follows:
S. 4009--A 4 A. 3009--A
[In the case of a taxpayer who is determined for federal tax purposes
under the provisions of] HAVE THE AUTHORITY TO POSTPONE CERTAIN DEAD-
LINES FOR A PERIOD OF UP TO NINETY DAYS, OR LONGER WHEN NECESSARY TO
ALIGN WITH RELIEF PROVIDED BY THE INTERNAL REVENUE SERVICE PURSUANT TO
section seven thousand five hundred eight-A of the internal revenue code
[to be affected by a presidentially declared disaster, or who], FOR A
TAXPAYER WHO is determined [under regulations promulgated by the commis-
sioner] to be affected by a presidentially declared disaster or by a
disaster emergency declared by the governor[, have authority to provide
that a period of up to ninety days, or a longer period when necessary to
align with relief that has already been provided by the Internal Revenue
Service under the authority to postpone certain deadlines in section
seven thousand five hundred eight-A of the internal revenue code, may].
ANY EXTENSION PERIOD PROVIDED PURSUANT TO THE AUTHORITY IN THIS SUBDIVI-
SION SHALL be disregarded in determining under the tax law, or under a
law enacted pursuant to the authority of the tax law or former article
2-E of the general city law where administered by the commissioner, in
respect of any tax liability (including any interest, penalty, addi-
tional amount, or addition to the tax) of such taxpayer:
§ 2. Paragraph c of subdivision twenty-eighth of section 171 of the
tax law, as added by chapter 8 of the laws of 1998, is amended to read
as follows:
c. DEFINITIONS. 1. Presidentially declared disaster. For purposes of
this subdivision, the term "presidentially declared disaster" means any
disaster which, with respect to an area, resulted in a subsequent deter-
mination by the president of the United States that such area warrants
assistance by the federal government under the disaster relief and emer-
gency assistance act.
2. TAXPAYER. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "TAXPAYER"
MEANS ANY PERSON OR ENTITY REQUIRED TO FILE A RETURN OR REMIT ANY TAX TO
THE COMMISSIONER PURSUANT TO THIS CHAPTER.
§ 3. Subdivision twenty-eighth of section 171 of the tax law is
amended by adding a new paragraph d to read as follows:
D. WHERE A TAXPAYER WHO, PURSUANT TO SECTION SEVEN THOUSAND FIVE
HUNDRED EIGHT-A OF THE INTERNAL REVENUE CODE, IS DETERMINED FOR FEDERAL
TAX PURPOSES TO BE AFFECTED BY A PRESIDENTIALLY DECLARED DISASTER, OR
WHO IS DETERMINED TO BE AFFECTED BY A DISASTER EMERGENCY DECLARED BY THE
GOVERNOR, BUT THE COMMISSIONER HAS NOT POSTPONED A TAX DEADLINE PURSUANT
TO THE AUTHORITY IN PARAGRAPH A OF THIS SUBDIVISION DUE TO SUCH DISAS-
TER, THE COMMISSIONER MAY ABATE ANY AMOUNT OF INTEREST FROM THE UNDER-
PAYMENT OF ANY TAX ADMINISTERED BY THE COMMISSIONER UNDER THIS CHAPTER
THAT ACCRUED FOR THE PERIOD DURING WHICH THE TAXPAYER WAS UNABLE TO MEET
SUCH DEADLINE DUE TO DIRECT IMPACTS OF THE DISASTER.
§ 4. This act shall take effect immediately.
PART B
Section 1. Subsection (e) of section 800 of the tax law, as added by
section 1 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(e) Net earnings from self-employment. Net earnings from self-employ-
ment has the same meaning as in section 1402 of the internal revenue
code, PROVIDED, HOWEVER, THAT FOR PURPOSES OF DETERMINING WHETHER THE
EXCLUSION PURSUANT TO PARAGRAPH 13 OF SUBSECTION (A) OF SECTION 1402 OF
THE INTERNAL REVENUE CODE APPLIES, AN INDIVIDUAL SHALL NOT BE CONSIDERED
A LIMITED PARTNER IF THE INDIVIDUAL, DIRECTLY OR INDIRECTLY, TAKES PART
S. 4009--A 5 A. 3009--A
IN THE CONTROL, OR PARTICIPATES IN THE MANAGEMENT OR OPERATIONS OF THE
PARTNERSHIP SUCH THAT THE INDIVIDUAL IS NOT A PASSIVE INVESTOR, REGARD-
LESS OF THE INDIVIDUAL'S TITLE OR CHARACTERIZATION IN A PARTNERSHIP OR
OPERATING AGREEMENT.
§ 2. This act shall take effect immediately.
PART C
Section 1. Paragraph (d) of subdivision 1 of section 210-B of the tax
law, as amended by section 31 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
(d) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the fixed dollar minimum amount prescribed in
paragraph (d) of subdivision one of section two hundred ten of this
article. However, if the amount of credit allowable under this subdivi-
sion for any taxable year reduces the tax to such amount or if the
taxpayer otherwise pays tax based on the fixed dollar minimum amount,
any amount of credit allowed for a taxable year commencing prior to
January first, nineteen hundred eighty-seven and not deductible in such
taxable year may be carried over to the following year or years and may
be deducted from the taxpayer's tax for such year or years but in no
event shall such credit be carried over to taxable years commencing on
or after January first, two thousand two, and any amount of credit
allowed for a taxable year commencing on or after January first, nine-
teen hundred eighty-seven and not deductible in such year may be carried
over to the fifteen taxable years next following such taxable year and
may be deducted from the taxpayer's tax for such year or years. In lieu
of such carryover, (I) any such taxpayer which qualifies as a new busi-
ness under paragraph (f) of this subdivision may elect to treat the
amount of such carryover as an overpayment of tax to be credited or
refunded in accordance with the provisions of section one thousand
eighty-six of this chapter, AND (II) ANY SUCH TAXPAYER THAT IS AN ELIGI-
BLE FARMER, AS DEFINED IN SUBDIVISION ELEVEN OF THIS SECTION, MAY FOR
TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
ELECT TO TREAT THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAYMENT OF TAX TO
BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE
THOUSAND EIGHTY-SIX OF THIS CHAPTER, provided, however, the provisions
of subsection (c) of section one thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
§ 2. Paragraph 5 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or years
and may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years commenc-
ing on or after January first, nineteen hundred ninety-seven, and any
amount of credit allowed for a taxable year commencing on or after Janu-
ary first, nineteen hundred eighty-seven and not deductible in such year
may be carried over to the ten taxable years next following such taxable
year and may be deducted from the taxpayer's tax for such year or years.
In lieu of carrying over any such excess, (A) a taxpayer who qualifies
as an owner of a new business for purposes of paragraph ten of this
S. 4009--A 6 A. 3009--A
subsection may, at [his] THE TAXPAYER'S option, receive such excess as a
refund, AND (B) A TAXPAYER THAT IS AN ELIGIBLE FARMER AS DEFINED IN
SUBSECTION (N) OF THIS SECTION MAY, AT THE TAXPAYER'S OPTION, FOR TAXA-
BLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT
RECEIVE SUCH EXCESS AS A REFUND. Any refund paid pursuant to this para-
graph shall be deemed to be a refund of an overpayment of tax as
provided in section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
§ 3. This act shall take effect immediately, and apply to taxable
years beginning on or after January 1, 2023.
PART D
Section 1. Paragraph 2 of subdivision (a) of section 24 of the tax
law, as separately amended by sections 1 and 2 of part M of chapter 59
of the laws of 2020, is amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of [twenty-
five] THIRTY percent, OR THIRTY-FIVE PERCENT IN THE CASE OF AN ELIGIBLE
RELOCATED TELEVISION SERIES, and the qualified production costs paid or
incurred in the production of a qualified film, provided that: (i) the
qualified production costs (excluding post production costs) paid or
incurred which are attributable to the use of tangible property or the
performance of services at a qualified film production facility in the
production of such qualified film equal or exceed seventy-five percent
of the production costs (excluding post production costs) paid or
incurred which are attributable to the use of tangible property or the
performance of services at any film production facility within and with-
out the state in the production of such qualified film, and (ii) except
with respect to a qualified independent film production company or
pilot, at least ten percent of the total principal photography shooting
days spent in the production of such qualified film must be spent at a
qualified film production facility. However, if the qualified production
costs (excluding post production costs) which are attributable to the
use of tangible property or the performance of services at a qualified
film production facility in the production of such qualified film is
less than three million dollars, then the portion of the qualified
production costs attributable to the use of tangible property or the
performance of services in the production of such qualified film outside
of a qualified film production facility shall be allowed only if the
shooting days spent in New York outside of a film production facility in
the production of such qualified film equal or exceed seventy-five
percent of the total shooting days spent within and without New York
outside of a film production facility in the production of such quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed. However, in the case of
a qualified film that receives funds from additional pool 2, no credit
shall be claimed before the later of (1) the taxable year the production
of the qualified film is complete, or (2) the [first] taxable year
[beginning immediately after the] THAT INCLUDES THE LAST DAY OF THE
allocation year for which the film has been allocated credit by the
[governor's office for motion picture and television] DEPARTMENT OF
ECONOMIC development. If the amount of the credit is at least one
million dollars but less than five million dollars, the credit shall be
claimed over a two year period beginning in the first taxable year in
which the credit may be claimed and in the next succeeding taxable year,
S. 4009--A 7 A. 3009--A
with one-half of the amount of credit allowed being claimed in each
year. If the amount of the credit is at least five million dollars, the
credit shall be claimed over a three year period beginning in the first
taxable year in which the credit may be claimed and in the next two
succeeding taxable years, with one-third of the amount of the credit
allowed being claimed in each year.
§ 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as
amended by section 2 of part M of chapter 59 of the laws of 2022, is
amended to read as follows:
(5) For the period two thousand fifteen through two thousand [twenty-
nine] THIRTY-FOUR, in addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries paid to individuals directly employed (excluding those employed as
writers, directors, [music directors] COMPOSERS, producers and perform-
ers, [including] OTHER THAN background actors with no scripted lines) by
a qualified film production company or a qualified independent film
production company for services performed by those individuals in one of
the counties specified in this paragraph in connection with a qualified
film with a minimum budget of five hundred thousand dollars. For
purposes of this additional credit, the services must be performed in
one or more of the following counties: Albany, Allegany, Broome, Catta-
raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort-
land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee,
Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison,
Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans,
Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie,
Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins,
Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate
amount of tax credits allowed pursuant to the authority of this para-
graph shall be five million dollars each year during the period two
thousand fifteen through two thousand [twenty-nine] THIRTY-FOUR of the
annual allocation made available to the program pursuant to paragraph
four of subdivision (e) of this section. Such aggregate amount of cred-
its shall be allocated by the [governor's office for motion picture and
television] DEPARTMENT OF ECONOMIC development among taxpayers in order
of priority based upon the date of filing an application for allocation
of film production credit [with such office]. If the total amount of
allocated credits applied for under this paragraph in any year exceeds
the aggregate amount of tax credits allowed for such year under this
paragraph, such excess shall be treated as having been applied for on
the first day of the next year. If the total amount of allocated tax
credits applied for under this paragraph at the conclusion of any year
is less than five million dollars, the remainder shall be treated as
part of the annual allocation made available to the program pursuant to
paragraph four of subdivision (e) of this section. However, in no event
may the total of the credits allocated under this paragraph and the
credits allocated under paragraph five of subdivision (a) of section
thirty-one of this article exceed five million dollars in any year
during the period two thousand fifteen through two thousand [twenty-
nine] THIRTY-FOUR.
§ 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
amended by section 4 of part B of chapter 59 of the laws of 2013, is
amended to read as follows:
S. 4009--A 8 A. 3009--A
(1) "Qualified production costs" means production costs only to the
extent such costs are attributable to the use of tangible property or
the performance of services within the state directly and predominantly
in the production (including pre-production and post production) of a
qualified film. THE AGGREGATE TOTAL ELIGIBLE QUALIFIED PRODUCTION
COSTS FOR PRODUCERS, WRITERS, DIRECTORS, PERFORMERS (OTHER THAN BACK-
GROUND ACTORS WITH NO SCRIPTED LINES), AND COMPOSERS SHALL NOT EXCEED
FORTY PERCENT OF THE AGGREGATE SUM TOTAL OF ALL OTHER QUALIFIED
PRODUCTION COSTS.
§ 3. Paragraph 2 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60 of the laws of 2004, is
amended to read as follows:
(2) "Production costs" means any costs for tangible property used and
services performed directly and predominantly in the production (includ-
ing pre-production and post production) of a qualified film.
"Production costs" shall not include (i) costs for a story, script or
scenario to be used for a qualified film and (ii) wages or salaries or
other compensation for writers, directors, [including music directors]
COMPOSERS, producers and performers (other than background actors with
no scripted lines) TO THE EXTENT THOSE WAGES OR SALARIES OR OTHER
COMPENSATION EXCEED FIVE HUNDRED THOUSAND DOLLARS PER INDIVIDUAL.
"Production costs" generally include technical and crew production
costs, such as expenditures for film production facilities, or any part
thereof, props, makeup, wardrobe, film processing, camera, sound record-
ing, set construction, lighting, shooting, editing and meals.
§ 4. Paragraph 8 of subdivision (b) of section 24 of the tax law, as
added by section 2 of part B of chapter 59 of the laws of 2013, is
amended to read as follows:
(8) "Relocated television production" shall mean, notwithstanding the
limitations in subparagraph (i) of paragraph three of this subdivision,
a television production that is a talk or variety program that filmed at
least [five] TWO seasons outside the state prior to its first relocated
season in New York, the episodes are filmed before a studio audience of
two hundred or more, and the relocated television production incurs (i)
at least thirty million dollars in annual production costs in the state,
or (ii) at least ten million dollars in capital expenditures at a quali-
fied production facility in the state.
§ 5. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 9 to read as follows:
(9) "ELIGIBLE RELOCATED TELEVISION SERIES" SHALL MEAN THE FIRST TWO
YEARS OF A REGULARLY OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL
BROADCAST, REGARDLESS OF THE MEDIUM OR MODE OF ITS DISTRIBUTION, IN A
SERIES OF NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, EACH OF WHICH
HAS A RUNNING TIME OF AT LEAST THIRTY MINUTES IN LENGTH (INCLUSIVE OF
COMMERCIAL ADVERTISEMENT AND INTERSTITIAL PROGRAMMING, IF ANY). FOR THE
PURPOSES OF THIS DEFINITION ONLY, A TELEVISION SERIES PRODUCED BY AND
FOR MEDIA SERVICES PROVIDERS DESCRIBED AS STREAMING SERVICES AND/OR
DIGITAL PLATFORMS (AND EXCLUDING NETWORK/CABLE) SHALL MEAN A REGULARLY
OCCURRING PRODUCTION INTENDED TO RUN IN ITS INITIAL RELEASE IN A SERIES
OF NARRATIVE AND/OR THEMATICALLY RELATED EPISODES, THE AGGREGATE LENGTH
OF WHICH IS AT LEAST SEVENTY-FIVE MINUTES, ALTHOUGH THE EPISODES THEM-
SELVES MAY VARY IN DURATION FROM THE THIRTY MINUTES SPECIFIED FOR
NETWORK/CABLE PRODUCTION, WHICH HAD FILMED A MINIMUM OF SIX EPISODES OF
THE TELEVISION SERIES OUTSIDE THE STATE IMMEDIATELY PRIOR TO RELOCATING
TO THE STATE, WHERE THE TELEVISION SERIES HAD A TOTAL MINIMUM BUDGET OF
AT LEAST ONE MILLION DOLLARS PER EPISODE.
S. 4009--A 9 A. 3009--A
§ 6. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 3 of part M of chapter 59 of the laws of 2022, is
amended to read as follows:
(4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [twenty-nine] TWENTY-THREE AND SEVEN HUNDRED
MILLION DOLLARS EACH YEAR STARTING IN TWO THOUSAND TWENTY-FOUR THROUGH
TWO THOUSAND THIRTY-FOUR, provided however, seven million dollars of the
annual allocation shall be available for the empire state film post
production credit pursuant to section thirty-one of this article in two
thousand thirteen and two thousand fourteen, twenty-five million dollars
of the annual allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
each year starting in two thousand fifteen through two thousand [twen-
ty-nine and] TWENTY-THREE, AND FORTY-FIVE MILLIONS DOLLARS OF THE ANNUAL
ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST PRODUCTION
CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS ARTICLE IN EACH YEAR
STARTING IN TWO THOUSAND TWENTY-FOUR THROUGH TWO THOUSAND THIRTY-FOUR.
PROVIDED FURTHER, five million dollars of the annual allocation shall be
made available for the television writers' and directors' fees and sala-
ries credit pursuant to section twenty-four-b of this article in each
year starting in two thousand twenty through two thousand [twenty-nine]
THIRTY-FOUR. This amount shall be allocated by the [governor's office
for motion picture and television] DEPARTMENT OF ECONOMIC development
among taxpayers in accordance with subdivision (a) of this section. If
the commissioner of economic development determines that the aggregate
amount of tax credits available from additional pool 2 for the empire
state film production tax credit have been previously allocated, and
determines that the pending applications from eligible applicants for
the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to utilize the balance of
unallocated empire state film post production tax credits from such
pool, the remainder, after such pending applications are considered,
shall be made available for allocation in the empire state film tax
credit pursuant to this section, subdivision twenty of section two
hundred ten-B and subsection (gg) of section six hundred six of this
chapter. Also, if the commissioner of economic development determines
that the aggregate amount of tax credits available from additional pool
2 for the empire state film post production tax credit have been previ-
ously allocated, and determines that the pending applications from
eligible applicants for the empire state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part of
the remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post production
credit pursuant to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six hundred six of this
chapter. The [governor's office for motion picture and television]
DEPARTMENT OF ECONOMIC development must notify taxpayers of their allo-
cation year and include the allocation year on the certificate of tax
credit. Taxpayers eligible to claim a credit must report the allocation
year directly on their empire state film production credit tax form for
each year a credit is claimed and include a copy of the certificate with
their tax return. In the case of a qualified film that receives funds
from additional pool 2, no empire state film production credit shall be
S. 4009--A 10 A. 3009--A
claimed before the later of (1) the taxable year the production of the
qualified film is complete, or (2) the taxable year [immediately follow-
ing] THAT INCLUDES THE LAST DAY OF the allocation year for which the
film has been allocated credit by the [governor's office for motion
picture and television] DEPARTMENT OF ECONOMIC development.
§ 7. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 4 of part M of chapter 59 of the laws of 2022, is
amended to read as follows:
(4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [twenty-nine] TWENTY-THREE AND SEVEN HUNDRED
MILLION DOLLARS IN EACH YEAR STARTING IN TWO THOUSAND TWENTY-FOUR
THROUGH TWO THOUSAND THIRTY-FOUR, provided however, seven million
dollars of the annual allocation shall be available for the empire state
film post production credit pursuant to section thirty-one of this arti-
cle in two thousand thirteen and two thousand fourteen [and], twenty-
five million dollars of the annual allocation shall be available for the
empire state film post production credit pursuant to section thirty-one
of this article in each year starting in two thousand fifteen through
two thousand [twenty-nine] TWENTY-THREE, AND FORTY-FIVE MILLION DOLLARS
OF THE ANNUAL ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM
POST PRODUCTION CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS ARTICLE IN
EACH YEAR STARTING IN TWO THOUSAND TWENTY-FOUR THROUGH TWO THOUSAND
THIRTY-FOUR. This amount shall be allocated by the [governor's office
for motion picture and television] DEPARTMENT OF ECONOMIC development
among taxpayers in accordance with subdivision (a) of this section. If
the commissioner of economic development determines that the aggregate
amount of tax credits available from additional pool 2 for the empire
state film production tax credit have been previously allocated, and
determines that the pending applications from eligible applicants for
the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to utilize the balance of
unallocated empire state film post production tax credits from such
pool, the remainder, after such pending applications are considered,
shall be made available for allocation in the empire state film tax
credit pursuant to this section, subdivision twenty of section two
hundred ten-B and subsection (gg) of section six hundred six of this
chapter. Also, if the commissioner of economic development determines
that the aggregate amount of tax credits available from additional pool
2 for the empire state film post production tax credit have been previ-
ously allocated, and determines that the pending applications from
eligible applicants for the empire state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part of
the remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post production
credit pursuant to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six hundred six of this
chapter. The [governor's office for motion picture and television]
DEPARTMENT OF ECONOMIC development must notify taxpayers of their allo-
cation year and include the allocation year on the certificate of tax
credit. Taxpayers eligible to claim a credit must report the allocation
year directly on their empire state film production credit tax form for
each year a credit is claimed and include a copy of the certificate with
their tax return. In the case of a qualified film that receives funds
S. 4009--A 11 A. 3009--A
from additional pool 2, no empire state film production credit shall be
claimed before the later of (1) the taxable year the production of the
qualified film is complete, or (2) the taxable year [immediately follow-
ing] THAT INCLUDES THE LAST DAY OF the allocation year for which the
film has been allocated credit by the [governor's office for motion
picture and television] DEPARTMENT OF ECONOMIC development.
§ 8. Paragraph 2 of subdivision (a) of section 31 of the tax law, as
amended by section 5 of part M of chapter 59 of the laws of 2020, is
amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of [twenty-
five] THIRTY percent and the qualified post production costs paid in the
production of a qualified film at a qualified post production facility
located within the metropolitan commuter transportation district as
defined in section twelve hundred sixty-two of the public authorities
law or [thirty] THIRTY-FIVE percent and the qualified post production
costs paid in the production of a qualified film at a qualified post
production facility located elsewhere in the state.
§ 9. Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended by section 6 of part M of chapter 59 of the laws of 2022, is
amended to read as follows:
(6) For the period two thousand fifteen through two thousand [twenty-
nine] THIRTY-FOUR, in addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries paid to individuals directly employed (excluding those employed as
writers, directors, [music directors] COMPOSERS, producers and perform-
ers, [including] OTHER THAN background actors with no scripted lines)
for services performed by those individuals in one of the counties spec-
ified in this paragraph in connection with the post production work on a
qualified film with a minimum budget of five hundred thousand dollars at
a qualified post production facility in one of the counties listed in
this paragraph. For purposes of this additional credit, the services
must be performed in one or more of the following counties: Albany,
Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango,
Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin,
Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Living-
ston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario,
Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenec-
tady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan,
Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates.
The aggregate amount of tax credits allowed pursuant to the authority of
this paragraph shall be five million dollars each year during the period
two thousand fifteen through two thousand [twenty-nine] THIRTY-FOUR of
the annual allocation made available to the empire state film post
production credit pursuant to paragraph four of subdivision (e) of
section twenty-four of this article. Such aggregate amount of credits
shall be allocated by the [governor's office for motion picture and
television] DEPARTMENT OF ECONOMIC development among taxpayers in order
of priority based upon the date of filing an application for allocation
of post production credit with such office. If the total amount of allo-
cated credits applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under this para-
graph, such excess shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
S. 4009--A 12 A. 3009--A
applied for under this paragraph at the conclusion of any year is less
than five million dollars, the remainder shall be treated as part of the
annual allocation for two thousand seventeen made available to the
empire state film post production credit pursuant to paragraph four of
subdivision (e) of section twenty-four of this article. However, in no
event may the total of the credits allocated under this paragraph and
the credits allocated under paragraph five of subdivision (a) of section
twenty-four of this article exceed five million dollars in any year
during the period two thousand fifteen through two thousand [twenty-
nine] THIRTY-FOUR.
§ 10. This act shall take effect immediately for initial applications
received on or after such effective date; provided, however, that the
amendments to paragraph 4 of subdivision (e) of section 24 of the tax
law made by section six of this act shall take effect on the same date
and in the same manner as section 6 of chapter 683 of the laws of 2019,
as amended, takes effect.
PART E
Section 1. Section 1085 of the tax law is amended by adding a new
subsection (e-1) to read as follows:
(E-1) WAIVER OF ADDITION FOR UNDERPAYMENT OF ESTIMATED TAX. NO ADDI-
TION TO TAX SHALL BE IMPOSED UNDER SUBSECTION (C) OF THIS SECTION WITH
RESPECT TO ANY UNDERPAYMENT TO THE EXTENT THE COMMISSIONER DETERMINES
THAT BY REASON OF CASUALTY, DISASTER OR OTHER UNUSUAL CIRCUMSTANCES THE
IMPOSITION OF SUCH ADDITION TO TAX WOULD BE AGAINST EQUITY AND GOOD
CONSCIENCE.
§ 2. This act shall take effect immediately.
PART F
Section 1. Subdivision 4 of section 484 of the economic development
law, as added by section 1 of part E of chapter 59 of the laws of 2022,
is amended to read as follows:
4. The business entity must submit its application by [March thirty-
first] SEPTEMBER THIRTIETH, two thousand twenty-three.
§ 2. This act shall take effect immediately.
PART G
Section 1. Article 6 of the social services law is amended by adding a
new title 1-A to read as follows:
TITLE 1-A
CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
SECTION 394. SHORT TITLE.
394-A. DEFINITIONS.
394-B. ELIGIBILITY CRITERIA.
394-C. APPLICATION AND APPROVAL PROCESS.
394-D. CHILD CARE CREATION AND EXPANSION TAX CREDIT.
394-E. ALLOCATION OF CREDIT.
394-F. POWERS AND DUTIES OF THE COMMISSIONER.
394-G. MAINTENANCE OF RECORDS.
§ 394. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM ACT".
§ 394-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
S. 4009--A 13 A. 3009--A
1. "CERTIFICATE OF TAX CREDIT" SHALL MEAN THE DOCUMENT ISSUED TO A
BUSINESS ENTITY BY THE OFFICE AFTER THE OFFICE HAS VERIFIED THAT THE
BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS
TITLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CREDIT
UNDER THIS TITLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION
THREE HUNDRED NINETY-FOUR-D OF THIS TITLE, AND THE SERVICE YEAR.
2. "CHILD CARE PROGRAM" SHALL MEAN A CHILD DAY CARE FOR WHICH A
LICENSE OR REGISTRATION TO OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE
OFFICE PURSUANT TO SECTION THREE HUNDRED NINETY OF THIS ARTICLE.
3. "CHILD CARE RATE" SHALL MEAN THE WEEKLY CHILD CARE SUBSIDY MARKET
RATES, BASED ON THE EIGHTIETH PERCENTILE OF THE 2021-22 NEW YORK STATE
CHILD CARE MARKET RATE SURVEY, FOR INFANT AND TODDLER CARE PROVIDED BY A
LICENSED OR REGISTERED CHILD CARE PROGRAM, AS REFLECTED IN THE 2022
CHILD CARE MARKET RATE SURVEY REPORT PUBLISHED BY THE OFFICE IN COMPLI-
ANCE WITH SECTION 98.45 OF TITLE FORTY-FIVE OF THE CODE OF FEDERAL REGU-
LATIONS.
4. "CHILD CARE SEATS" SHALL MEAN THE MAXIMUM NUMBER OF CHILDREN TO BE
ALLOWED ON THE PREMISES OF A CHILD CARE PROGRAM AT ANY TIME THAT SUCH
PROGRAM IS IN OPERATION AS SPECIFIED ON THE LICENSE OR REGISTRATION
ISSUED FOR SUCH PROGRAM BY THE OFFICE.
5. "CREATES CHILD CARE" SHALL MEAN THE MAKING AVAILABLE OF CHILD CARE
SEATS IN A CHILD CARE PROGRAM BY A BUSINESS ENTITY, DIRECTLY OR THROUGH
A THIRD-PARTY, FOR EMPLOYEES OF SUCH BUSINESS ENTITY, WHERE SUCH CHILD
CARE PROGRAM WAS NOT AVAILABLE PRIOR TO APRIL FIRST, TWO THOUSAND TWEN-
TY-THREE, PROVIDED THAT THE COSTS IMPOSED ON SUCH EMPLOYEES FOR SUCH
CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE.
6. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE OFFICE OF CHILDREN
AND FAMILY SERVICES.
7. "EXPANDS CHILD CARE" SHALL MEAN THE INCREASE IN THE NUMBER OF CHILD
CARE SEATS IN A CHILD CARE PROGRAM MADE AVAILABLE BY A BUSINESS ENTITY,
DIRECTLY OR THROUGH A THIRD PARTY, FOR EMPLOYEES OF SUCH BUSINESS ENTI-
TY, PROVIDED THAT SUCH INCREASE REQUIRES A NEW OR AMENDED LICENSE OR
REGISTRATION ISSUED BY THE OFFICE PURSUANT TO SECTION THREE HUNDRED
NINETY OF THIS ARTICLE ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-
THREE, AND, PROVIDED FURTHER, THAT THE COSTS IMPOSED ON SUCH EMPLOYEES
FOR SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD
CARE RATE.
8. "OCCUPIED" SHALL MEAN, FOR EACH SERVICE YEAR IN WHICH A CHILD CARE
PROGRAM IS IN OPERATION, THE AVERAGE DAILY NUMBER OF CHILDREN IN ATTEND-
ANCE ON THE PREMISES OF SUCH CHILD CARE PROGRAM.
9. "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
10. "SERVICE YEAR" SHALL MEAN THE TWELVE-MONTH PERIOD, OR PORTION
THEREOF, COMMENCING ON JANUARY FIRST AND ENDING ON DECEMBER THIRTY-
FIRST.
§ 394-B. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT
UNDER THE CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM, A BUSI-
NESS ENTITY MUST:
(A) BE A BUSINESS ENTITY THAT IS REQUIRED TO FILE A TAX RETURN PURSU-
ANT TO ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW;
(B) BE A CHILD CARE PROGRAM, OR CONTRACT WITH SUCH CHILD CARE PROGRAM,
AS DEFINED IN THIS TITLE THAT IS LICENSED OR REGISTERED PURSUANT TO
SECTION THREE HUNDRED NINETY OF THIS ARTICLE;
(C) CREATE OR EXPAND CHILD CARE SEATS, DIRECTLY OR THROUGH A THIRD
PARTY, FOR THE EMPLOYEES OF SUCH BUSINESS ENTITY ON OR AFTER APRIL
FIRST, TWO THOUSAND TWENTY-THREE AND BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE;
S. 4009--A 14 A. 3009--A
(D) OPERATE A BUSINESS LOCATION IN NEW YORK STATE;
(E) BE IN SUBSTANTIAL COMPLIANCE WITH ANY CHILD CARE LICENSING LAWS
AND REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR OR OTHER LAWS
AND REGULATIONS AS DETERMINED BY THE COMMISSIONER; AND
(F) NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE
BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BIND-
ING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY.
§ 394-C. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER BY THE
THIRTY-FIRST OF JANUARY AFTER THE END OF THE SERVICE YEAR.
2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR A BUSINESS ENTITY
TO SUBMIT APPLICATIONS. AS PART OF THE APPLICATION, EACH BUSINESS ENTITY
MUST:
(A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER OF THEIR BUSINESS ELIGIBILITY;
(B) PROVIDE THE LICENSE OR REGISTRATION ISSUED TO THE BUSINESS ENTITY,
DIRECTLY OR THROUGH A THIRD PARTY, BY THE OFFICE TO OPERATE A CHILD CARE
PROGRAM INDICATING THE NUMBER OF CHILD CARE SEATS CREATED OR, IN THE
CASE OF A CHILD CARE PROGRAM THAT HAS EXPERIENCED AN EXPANSION OF CHILD
CARE SEATS, THE LICENSE OR REGISTRATION ISSUED BY THE OFFICE DEMONSTRAT-
ING SUCH EXPANSION;
(C) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER ESTABLISHING:
(I) THE TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED DURING THE
SERVICE YEAR;
(II) OF SUCH TOTAL NUMBER OF CHILD CARE SEATS THAT WERE OCCUPIED, THE
NUMBER OF INFANT CHILD CARE SEATS THAT WERE OCCUPIED AND THE NUMBER OF
TODDLER CHILD CARE SEATS THAT WERE OCCUPIED;
(III) THAT, TO THE EXTENT THE BUSINESS ENTITY, DIRECTLY OR THROUGH A
THIRD PARTY, HAS EXPANDED CHILD CARE, THE NUMBER OF CHILD CARE SEATS IN
EXISTENCE BEFORE SUCH EXPANSION AND THE NUMBER OF SUCH CHILD CARE SEATS
THAT WERE OCCUPIED BEFORE SUCH EXPANSION; AND
(IV) THAT THE COSTS IMPOSED ON THE BUSINESS ENTITY'S EMPLOYEES FOR
SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE
RATE.
(D) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
BUSINESS ENTITY'S TAX INFORMATION RELEVANT TO THE ADMINISTRATION OF THIS
TITLE WITH THE OFFICE. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF
THIS TITLE SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE
STATE FREEDOM OF INFORMATION LAW;
(E) ALLOW THE OFFICE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND
RECORDS THE OFFICE MAY REQUIRE TO MONITOR COMPLIANCE; AND
(F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE OFFICE
RELEVANT TO THIS TITLE.
3. AFTER REVIEWING A BUSINESS ENTITY'S COMPLETED FINAL APPLICATION AND
DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA AS
SET FORTH IN THIS TITLE, THE OFFICE MAY ISSUE TO THAT BUSINESS ENTITY A
CERTIFICATE OF TAX CREDIT, WHICH SHALL SET FORTH THE AMOUNT OF THE CRED-
IT THAT MAY BE CLAIMED AND THE SERVICE YEAR.
§ 394-D. CHILD CARE CREATION AND EXPANSION TAX CREDIT. ALLOWANCE OF
CREDIT. 1. A BUSINESS ENTITY IN THE CHILD CARE CREATION AND EXPANSION
TAX CREDIT PROGRAM THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION
THREE HUNDRED NINETY-FOUR-B OF THIS TITLE MAY BE ELIGIBLE TO CLAIM A
CREDIT FOR THE PORTION OF THE SERVICE YEAR IN WHICH THE CHILD CARE
PROGRAM WAS IN OPERATION, EQUAL TO THE SUM OF: (A) THE PRODUCT OF THE
NUMBER OF INFANT CHILD CARE SEATS THAT HAVE BEEN CREATED OR EXPANDED AND
S. 4009--A 15 A. 3009--A
TWENTY PERCENT OF THE CHILD CARE RATE FOR SUCH INFANT CHILD CARE SEATS
AND (B) THE PRODUCT OF THE NUMBER OF TODDLER CHILD CARE SEATS THAT HAVE
BEEN CREATED OR EXPANDED AND TWENTY PERCENT OF THE CHILD CARE RATE FOR
SUCH TODDLER CHILD CARE SEATS; PROVIDED THAT SUCH INFANT AND TODDLER
CHILD CARE SEATS ARE CHILD CARE SEATS THAT ARE OCCUPIED. NOTWITHSTAND-
ING THE PRECEDING SENTENCE, A CREDIT SHALL NOT BE ALLOWED FOR MORE THAN
TWENTY-FIVE CHILD CARE SEATS THAT ARE OCCUPIED, AND THE AMOUNT OF SUCH
CREDIT MAY BE REDUCED AS A RESULT OF AN ALLOCATION OF AVAILABLE FUNDS,
AS DESCRIBED IN SECTION THREE HUNDRED NINETY-FOUR-E OF THIS TITLE.
2. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTION FORTY-EIGHT,
SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OOO) OF
SECTION SIX HUNDRED SIX AND SUBDIVISION (EE) OF SECTION FIFTEEN HUNDRED
ELEVEN OF THE TAX LAW.
§ 394-E. ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS TITLE, SUBDIVISION FIFTY-NINE OF SECTION TWO HUNDRED
TEN-B, SUBSECTION (OOO) OF SECTION SIX HUNDRED SIX AND SUBDIVISION (EE)
OF SECTION FIFTEEN ELEVEN OF THE TAX LAW SHALL BE TWENTY-FIVE MILLION
DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND TWENTY-THREE AND TWO
THOUSAND TWENTY-FOUR. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
CATED BY THE OFFICE ON A PRO RATA BASIS TO EACH BUSINESS ENTITY THAT
DEMONSTRATES ELIGIBILITY PURSUANT TO SECTION THREE HUNDRED NINETY-FOUR-B
OF THIS TITLE.
§ 394-F. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND
ELIGIBILITY CRITERIA, WHICH WILL BE APPLIED CONSISTENT WITH THE PURPOSES
OF THIS TITLE SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN THIS TITLE, THAT, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRA-
RY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMER-
GENCY BASIS.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE
SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION
AND FINANCE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
BUSINESS ENTITY APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
BUSINESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIRE-
MENTS SET FORTH IN SECTION THREE HUNDRED NINETY-FOUR-B OF THIS TITLE.
§ 394-G. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN
THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THE DURATION OF THEIR
PARTICIPATION IN THE PROGRAM FOR AT LEAST THREE YEARS.
§ 2. The tax law is amended by adding a new section 48 to read as
follows:
§ 48. CHILD CARE CREATION AND EXPANSION TAX CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO OR
THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX,
PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS
SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED
PURSUANT TO SECTION THREE HUNDRED NINETY-FOUR-D OF THE SOCIAL SERVICES
LAW AND SHALL BE CLAIMED IN THE TAXABLE YEAR THAT INCLUDES THE LAST DAY
OF THE SERVICE YEAR FOR WHICH THE CREDIT IS CALCULATED. NO COST OR
EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS INCLUDED AS PART OF THE
CALCULATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT
ALLOWED UNDER THIS CHAPTER.
(B) ELIGIBILITY. TO BE ELIGIBLE FOR THE CHILD CARE CREATION AND EXPAN-
SION TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF
S. 4009--A 16 A. 3009--A
TAX CREDIT BY THE OFFICE OF CHILDREN AND FAMILY SERVICES PURSUANT TO
SECTION THREE HUNDRED NINETY-FOUR-C OF THE SOCIAL SERVICES LAW. A
TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABIL-
ITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION THAT HAS
RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED ITS PRO RATA SHARE
OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR
SUBCHAPTER S CORPORATION.
(C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
THE OFFICE OF CHILDREN AND FAMILY SERVICES.
(D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP-
TER, EMPLOYEES OF THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE
DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
(1) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED
PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT
OR THAT ARE CLAIMING THE CREDIT; AND
(2) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS
SUBMITTED TO THE DEPARTMENT. EXCEPT AS PROVIDED IN PARAGRAPH ONE OF THIS
SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE OFFICE OF CHILDREN
AND FAMILY SERVICES AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLO-
SURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW.
(E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES UNDER TITLE 1-A OF ARTICLE SIX OF
THE SOCIAL SERVICES LAW IS REVOKED BY SUCH OFFICE, THE AMOUNT OF CREDIT
DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT
REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY
SUCH REVOCATION BECOMES FINAL.
(F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 59;
(2) ARTICLE 22: SECTION 606, SUBSECTION (OOO);
(3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 59 to read as follows:
59. CHILD CARE CREATION AND EXPANSION TAX CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAXES
IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
§ 4. Section 606 of the tax law is amended by adding a new subsection
(ooo) to read as follows:
(OOO) CHILD CARE CREATION AND EXPANSION TAX CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
S. 4009--A 17 A. 3009--A
IN SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (l) to read as follows:
(L) CHILD CARE CREATION AND AMOUNT OF CREDIT
EXPANSION TAX CREDIT UNDER UNDER SUBDIVISION 59
SUBSECTION (OOO) OF SECTION TWO HUNDRED
TEN-B
§ 6. Section 1511 of the tax law is amended by adding a new subdivi-
sion (ee) to read as follows:
(EE) CHILD CARE CREATION AND EXPANSION TAX CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS
APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND
EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID
THEREON.
§ 7. This act shall take effect immediately.
PART H
Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax
law, as amended by chapter 260 of the laws of 2015, is amended to read
as follows:
5. Any local law adopted pursuant to this subdivision may provide for
a credit as authorized by this subdivision for a maximum of three
consecutive calendar years, provided, however, that any such credit may
not apply to taxable years beginning before January first, two thousand
[ten] TWENTY-THREE or beginning on or after January first, two thousand
[nineteen] TWENTY-SIX.
§ 2. This act shall take effect immediately.
PART I
Section 1. This Part enacts into law major components of legislation
relating to extending various taxes and tax credits. Each component is
wholly contained within a Subpart identified as Subparts A through E.
The effective date for each particular provision contained within such
Subpart is set forth in the last section of such Subpart. Any provision
in any section contained within a Subpart, including the effective date
of the Subpart, which makes reference to a section "of this act", when
S. 4009--A 18 A. 3009--A
used in connection with that particular component, shall be deemed to
mean and refer to the corresponding section of the Subpart in which it
is found. Section three of this Part sets forth the general effective
date of this Part.
SUBPART A
Section 1. The opening paragraph of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 1 of part HHH of chap-
ter 59 of the laws of 2021, is amended to read as follows:
For taxable years beginning before January first, two thousand
sixteen, the amount prescribed by this paragraph shall be computed at
the rate of seven and one-tenth percent of the taxpayer's business
income base. For taxable years beginning on or after January first, two
thousand sixteen, the amount prescribed by this paragraph shall be six
and one-half percent of the taxpayer's business income base. For taxable
years beginning on or after January first, two thousand twenty-one and
before January first, two thousand [twenty-four] TWENTY-SEVEN for any
taxpayer with a business income base for the taxable year of more than
five million dollars, the amount prescribed by this paragraph shall be
seven and one-quarter percent of the taxpayer's business income base.
The taxpayer's business income base shall mean the portion of the
taxpayer's business income apportioned within the state as hereinafter
provided. However, in the case of a small business taxpayer, as defined
in paragraph (f) of this subdivision, the amount prescribed by this
paragraph shall be computed pursuant to subparagraph (iv) of this para-
graph and in the case of a manufacturer, as defined in subparagraph (vi)
of this paragraph, the amount prescribed by this paragraph shall be
computed pursuant to subparagraph (vi) of this paragraph, and, in the
case of a qualified emerging technology company, as defined in subpara-
graph (vii) of this paragraph, the amount prescribed by this paragraph
shall be computed pursuant to subparagraph (vii) of this paragraph.
§ 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 2 of part HHH of chapter 59 of the
laws of 2021, is amended to read as follows:
(1) (i) The amount prescribed by this paragraph shall be computed
at .15 percent for each dollar of the taxpayer's total business capital,
or the portion thereof apportioned within the state as hereinafter
provided for taxable years beginning before January first, two thousand
sixteen. However, in the case of a cooperative housing corporation as
defined in the internal revenue code, the applicable rate shall be .04
percent until taxable years beginning on or after January first, two
thousand twenty and zero percent for taxable years beginning on or after
January first, two thousand twenty-one. The rate of tax for subsequent
tax years shall be as follows: .125 percent for taxable years beginning
on or after January first, two thousand sixteen and before January
first, two thousand seventeen; .100 percent for taxable years beginning
on or after January first, two thousand seventeen and before January
first, two thousand eighteen; .075 percent for taxable years beginning
on or after January first, two thousand eighteen and before January
first, two thousand nineteen; .050 percent for taxable years beginning
on or after January first, two thousand nineteen and before January
first, two thousand twenty; .025 percent for taxable years beginning on
or after January first, two thousand twenty and before January first,
two thousand twenty-one; and .1875 percent for years beginning on or
after January first, two thousand twenty-one and before January first,
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two thousand [twenty-four] TWENTY-SEVEN, and zero percent for taxable
years beginning on or after January first, two thousand [twenty-four]
TWENTY-SEVEN. Provided however, for taxable years beginning on or after
January first, two thousand twenty-one, the rate of tax for a small
business as defined in paragraph (f) of this subdivision shall be zero
percent. The rate of tax for a qualified New York manufacturer shall be
.132 percent for taxable years beginning on or after January first, two
thousand fifteen and before January first, two thousand sixteen, .106
percent for taxable years beginning on or after January first, two thou-
sand sixteen and before January first, two thousand seventeen, .085
percent for taxable years beginning on or after January first, two thou-
sand seventeen and before January first, two thousand eighteen; .056
percent for taxable years beginning on or after January first, two thou-
sand eighteen and before January first, two thousand nineteen; .038
percent for taxable years beginning on or after January first, two thou-
sand nineteen and before January first, two thousand twenty; .019
percent for taxable years beginning on or after January first, two thou-
sand twenty and before January first, two thousand twenty-one; and zero
percent for years beginning on or after January first, two thousand
twenty-one. (ii) In no event shall the amount prescribed by this para-
graph exceed three hundred fifty thousand dollars for qualified New York
manufacturers and for all other taxpayers five million dollars.
§ 3. This act shall take effect immediately.
SUBPART B
Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of
section 606 of the tax law, as amended by section 1 of part CCC of chap-
ter 59 of the laws of 2021, is amended to read as follows:
(A) For taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand [twenty-five] THIRTY, a
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to one hundred percent
of the amount of credit allowed the taxpayer with respect to a certified
historic structure, and one hundred fifty percent of the amount of cred-
it allowed the taxpayer with respect to a certified historic structure
that is a small project, under internal revenue code section 47(c)(3),
determined without regard to ratably allocating the credit over a five
year period as required by subsection (a) of such section 47, with
respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed five million dollars. For
taxable years beginning on or after January first, two thousand [twen-
ty-five] THIRTY, a taxpayer shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the amount of credit allowed the taxpayer with respect
to a certified historic structure under internal revenue code section
47(c)(3), determined without regard to ratably allocating the credit
over a five year period as required by subsection (a) of such section
47, with respect to a certified historic structure located within the
state; provided, however, the credit shall not exceed one hundred thou-
sand dollars.
§ 2. Subparagraph (i) of paragraph (a) of subdivision 26 of section
210-B of the tax law, as amended by section 2 of part CCC of chapter 59
of the laws of 2021, is amended to read as follows:
(i) For taxable years beginning on or after January first, two thou-
sand ten, and before January first, two thousand [twenty-five] THIRTY, a
S. 4009--A 20 A. 3009--A
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to one hundred percent
of the amount of credit allowed the taxpayer for the same taxable year
with respect to a certified historic structure, and one hundred fifty
percent of the amount of credit allowed the taxpayer with respect to a
certified historic structure that is a small project, under internal
revenue code section 47(c)(3), determined without regard to ratably
allocating the credit over a five year period as required by subsection
(a) of such section 47, with respect to a certified historic structure
located within the state. Provided, however, the credit shall not exceed
five million dollars.
§ 3. Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
26 of section 210-B of the tax law, as added by section 17 of part A of
chapter 59 of the laws of 2014, is redesignated as paragraph (a-1) and
is amended to read as follows:
(a-1) If the taxpayer is a partner in a partnership or a shareholder
in a New York S corporation, then the credit caps imposed in [subpara-
graph (A)] PARAGRAPH (A) of this [paragraph] SUBDIVISION shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity in the taxable year
does not exceed the credit cap that is applicable in that taxable year.
§ 4. Subparagraph (ii) of paragraph (a) of subdivision 26 of section
210-B of the tax law, as amended by section 2 of part RR of chapter 59
of the laws of 2018, is amended to read as follows:
(ii) For taxable years beginning on or after January first, two thou-
sand [twenty-five] THIRTY, a taxpayer shall be allowed a credit as here-
inafter provided, against the tax imposed by this article, in an amount
equal to thirty percent of the amount of credit allowed the taxpayer for
the same taxable year determined without regard to ratably allocating
the credit over a five year period as required by subsection (a) of
section 47 of the internal revenue code, with respect to a certified
historic structure under subsection (c)(3) of section 47 of the internal
revenue code with respect to a certified historic structure located
within the state. Provided, however, the credit shall not exceed one
hundred thousand dollars.
§ 5. Subparagraph (A) of paragraph 1 of subdivision (y) of section
1511 of the tax law, as amended by section 3 of part CCC of chapter 59
of the laws of 2021, is amended to read as follows:
(A) For taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand [twenty-five] THIRTY, a
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to one hundred percent
of the amount of credit allowed the taxpayer with respect to a certified
historic structure, and one hundred fifty percent of the amount of cred-
it allowed the taxpayer with respect to a certified historic structure
that is a small project, under internal revenue code section 47(c)(3),
determined without regard to ratably allocating the credit over a five
year period as required by subsection (a) of such section 47, with
respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed five million dollars. For
taxable years beginning on or after January first, two thousand [twen-
ty-five] THIRTY, a taxpayer shall be allowed a credit as hereinafter
provided, against the tax imposed by this article, in an amount equal to
thirty percent of the amount of credit allowed the taxpayer with respect
to a certified historic structure under internal revenue code section
47(c)(3), determined without regard to ratably allocating the credit
S. 4009--A 21 A. 3009--A
over a five year period as required by subsection (a) of such section 47
with respect to a certified historic structure located within the state.
Provided, however, the credit shall not exceed one hundred thousand
dollars.
§ 6. This act shall take effect immediately.
SUBPART C
Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax
law, as amended by section 1 of part AAA of chapter 59 of the laws of
2019, is amended to read as follows:
(1) A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which is subject to tax under article nine-A or twenty-two of this
chapter, shall be allowed a credit against such tax, pursuant to the
provisions referenced in subdivision (c) of this section, to be computed
as provided in this section. Provided, however, to be eligible for such
credit, at least seventy-five percent of the production costs (excluding
post production costs) paid or incurred directly and predominantly in
the actual filming or recording of the qualified commercial must be
costs incurred in New York state. The tax credit allowed pursuant to
this section shall apply to taxable years beginning before January
first, two thousand [twenty-four] TWENTY-NINE.
§ 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law,
as amended by chapter 518 of the laws of 2018, is amended to read as
follows:
(c) Expiration of credit. The credit allowed under this subdivision
shall not be applicable to taxable years beginning on or after January
first, two thousand [twenty-four] TWENTY-NINE.
§ 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
amended by chapter 518 of the laws of 2018, is amended to read as
follows:
(1) Allowance of credit. A taxpayer that is eligible pursuant to the
provisions of section twenty-eight of this chapter shall be allowed a
credit to be computed as provided in such section against the tax
imposed by this article. The tax credit allowed pursuant to this section
shall apply to taxable years beginning before January first, two thou-
sand [twenty-four] TWENTY-NINE.
§ 4. This act shall take effect immediately.
SUBPART D
Section 1. Paragraph 1 of subdivision (a) of section 47 of the tax
law, as added by section 1 of part I of chapter 59 of the laws of 2022,
is amended to read as follows:
(1) Allowance of credit. A taxpayer that meets the eligibility
requirements of subdivision (b) of this section and is subject to tax
under article nine-A or twenty-two of this chapter may be eligible to
claim a grade no. 6 heating oil conversion tax credit in the taxable
year the conversion is complete. The credit shall be equal to fifty
percent of the conversion costs for all of the taxpayer's buildings
located at a facility regulated pursuant to section 19-0302 or title ten
of article seventeen of the environmental conservation law, paid by such
taxpayer on or after January first, two thousand twenty-two and before
[July] JANUARY first, two thousand [twenty-three] TWENTY-FOUR. The
credit cannot exceed five hundred thousand dollars per facility.
S. 4009--A 22 A. 3009--A
§ 2. This act shall take effect immediately.
SUBPART E
Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws
of 2021 amending the tax law and the state finance law relating to
establishing the New York city musical and theatrical production tax
credit and establishing the New York state council on the arts cultural
program fund, as amended by section 7 of part F of chapter 59 of the
laws of 2022, is amended to read as follows:
§ 6. This act shall take effect immediately; provided however, that
[section] SECTIONS one, two, three and four of this act shall apply to
taxable years beginning on or after January 1, 2021, and before January
1, [2024] 2026 and shall expire and be deemed repealed January 1, [2024]
2026; provided further, however that the obligations under paragraph 3
of subdivision (g) of section 24-c of the tax law, as added by section
one of this act, shall remain in effect until December 31, [2025] 2027.
§ 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
amended by section 1 of part F of chapter 59 of the laws of 2022, is
amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of twenty-five
percent and the sum of the qualified production expenditures paid for
during the qualified New York city musical and theatrical production's
credit period. Provided however that the amount of the credit cannot
exceed three million dollars per qualified New York city musical and
theatrical production for productions whose first performance is prior
to January first, two thousand [twenty-three] TWENTY-FIVE. [For
productions whose first performance is on or after January first, two
thousand twenty-three, such cap shall decrease to one million five
hundred thousand dollars per qualified New York city musical and theat-
rical production unless the New York city tourism economy has not suffi-
ciently recovered, as determined by the department of economic develop-
ment in consultation with the division of the budget. In determining
whether the New York city tourism economy has sufficiently recovered,
the department of economic development will perform an analysis of key
New York city economic indicators which shall include, but not be limit-
ed to, hotel occupancy rates and travel metrics. The department of
economic development's analysis shall also be informed by the status of
any remaining COVID-19 restrictions affecting New York city musical and
theatrical productions.] In no event shall a qualified New York city
musical and theatrical production be eligible for more than one credit
under this program.
§ 3. Subparagraph (i) of paragraph 5 of subdivision (b) of section
24-c of the tax law, as amended by section 2 of part F of chapter 59 of
the laws of 2022, is amended to read as follows:
(i) "The credit period of a qualified New York city musical and theat-
rical production company" is the period starting on the production start
date and ending on the earlier of the date the qualified musical and
theatrical production has expended sufficient qualified production
expenditures to reach its credit cap, September thirtieth, two thousand
[twenty-three] TWENTY-FIVE or the date the qualified musical and theat-
rical production closes.
§ 4. Subdivision (c) of section 24-c of the tax law, as added by
section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is
amended to read as follows:
S. 4009--A 23 A. 3009--A
(c) The credit shall be allowed for the taxable year beginning on or
after January first, two thousand twenty-one but before January first,
two thousand [twenty-four] TWENTY-SIX. A qualified New York city
musical and theatrical production company shall claim the credit in the
year in which its credit period ends.
§ 5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
law, paragraph 1 as amended by section 3 of part F of chapter 59 of the
laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
ter 59 of the laws of 2022, are amended to read as follows:
(1) The aggregate amount of tax credits allowed under this section,
subdivision fifty-seven of section two hundred ten-B and subsection
(mmm) of section six hundred six of this chapter shall be [two] THREE
hundred million dollars. Such aggregate amount of credits shall be allo-
cated by the department of economic development among taxpayers based on
the date of first performance of the qualified musical and theatrical
production.
(2) The commissioner of economic development, after consulting with
the commissioner, shall promulgate regulations to establish procedures
for the allocation of tax credits as required by this section. Such
rules and regulations shall include provisions describing the applica-
tion process, the due dates for such applications, the standards that
will be used to evaluate the applications, the documentation that will
be provided by applicants to substantiate to the department the amount
of qualified production expenditures of such applicants, and such other
provisions as deemed necessary and appropriate. Notwithstanding any
other provisions to the contrary in the state administrative procedure
act, such rules and regulations may be adopted on an emergency basis. In
no event shall a qualified New York city musical and theatrical
production submit an application for this program after June thirtieth,
two thousand [twenty-three] TWENTY-FIVE.
§ 6. This act shall take effect immediately; provided that the amend-
ments to section 24-c of the tax law made by sections two, three, four
and five of this act shall not affect the repeal of such section and
shall be deemed repealed therewith.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective dates of Subparts A through E of this act shall
be as specifically set forth in the last section of such Subparts.
PART J
Section 1. This act enacts into law major components of legislation
relating to taxation. Each component is wholly contained within a
Subpart identified as Subparts A through C. The effective date for each
particular provision contained within such Subpart is set forth in the
last section of such Subpart. Any provision in any section contained
within a Subpart, including the effective date of the Subpart, which
makes reference to a section "of this act", when used in connection with
S. 4009--A 24 A. 3009--A
that particular component, shall be deemed to mean and refer to the
corresponding section of the Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.
SUBPART A
Section 1. Paragraph (b) of subdivision 38 of section 210-B of the tax
law, as amended by section 2 of part L of chapter 59 of the laws of
2022, is amended to read as follows:
(b) Definitions. The term "accessible by individuals with disabili-
ties" shall, for the purposes of this subdivision, refer to a vehicle
that complies with federal regulations promulgated pursuant to the Amer-
icans with Disabilities Act applicable to vans under twenty-two feet in
length, by the federal Department of Transportation, in Code of Federal
Regulations, title 49, parts 37 and 38[, and by the federal Architecture
and Transportation Barriers Compliance Board, in Code of Federal Regu-
lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
ty Standards, Code of Federal Regulations, title 49, part [57] 571. The
term "electric vehicle" shall, for the purposes of this subdivision,
have the same meaning as in section sixty-six-s of the public service
law.
§ 2. Paragraph 2 of subsection (tt) of section 606 of the tax law, as
amended by section 4 of part L of chapter 59 of the laws of 2022, is
amended to read as follows:
(2) Definitions. The term "accessible by individuals with disabili-
ties" shall, for the purposes of this subsection, refer to a vehicle
that complies with federal regulations promulgated pursuant to the Amer-
icans with Disabilities Act applicable to vans under twenty-two feet in
length, by the federal Department of Transportation, in Code of Federal
Regulations, title 49, parts 37 and 38[, and by the federal Architecture
and Transportation Barriers Compliance Board, in Code of Federal Regu-
lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
The term "electric vehicle" shall, for the purposes of this subsection,
have the same meaning as in section sixty-six-s of the public service
law.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2023.
SUBPART B
Section 1. Paragraph 2 of subdivision (b) of section 21 of the tax
law, as amended by section 7 of part LL of chapter 58 of the laws of
2022, is amended to read as follows:
(2) Site preparation costs. The term "site preparation costs" shall
mean all amounts properly chargeable to a capital account, which are
paid or incurred which are necessary to implement a site's investi-
gation, remediation, or qualification for a certificate of completion,
and shall include costs of: excavation; demolition; activities undertak-
en under the oversight of the department of labor or in accordance with
standards established by the department of health to remediate and
dispose of regulated materials including asbestos, lead or polychlori-
nated biphenyls; environmental consulting; engineering; legal costs;
transportation, disposal, treatment or containment of contaminated soil;
remediation measures taken to address contaminated soil vapor; cover
systems consistent with applicable regulations; physical support of
S. 4009--A 25 A. 3009--A
excavation; dewatering and other work to facilitate or enable remedi-
ation activities; sheeting, shoring, and other engineering controls
required to prevent off-site migration of contamination from the quali-
fied site or migrating onto the qualified site; and the costs of fenc-
ing, temporary electric wiring, scaffolding, and security facilities
until such time as the certificate of completion has been issued. Site
preparation shall include all costs paid or incurred within sixty months
after the last day of the tax year in which the certificate of
completion is issued that are necessary for compliance with the certif-
icate of completion or subsequent modifications thereof, or the remedial
program defined in such certificate of completion including but not
limited to institutional controls, engineering controls, an approved
site management plan, and an environmental easement with respect to the
qualified site; provided, however, with respect to any qualified site
for which [the department of environmental conservation has issued a
notice to the taxpayer on or after July first, two thousand fifteen but
on or before June twenty-fourth, two thousand twenty-one that its
request for participation has been accepted under subdivision six of
section 27-1407 of the environmental conservation law] A CERTIFICATE OF
COMPLETION WAS ISSUED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN BUT
ON OR BEFORE JUNE TWENTY-FOURTH, TWO THOUSAND TWENTY-ONE, site prepara-
tion shall include all costs paid or incurred within eighty-four months
after the last day of the tax year in which the certificate of
completion is issued that are necessary for compliance with the certif-
icate of completion or subsequent modifications thereof, or the remedial
program defined in such certificate of completion including but not
limited to institutional controls, engineering controls, an approved
site management plan, and an environmental easement with respect to the
qualified site. Site preparation cost shall not include the costs of
foundation systems that exceed the cover system requirements in the
regulations applicable to the qualified site.
§ 2. This act shall take effect immediately and shall be deemed to
have been in effect on and after April 9, 2022.
SUBPART C
Section 1. Paragraphs 1, 2 and 3 of subsection (h) of section 860 of
the tax law, paragraph 1 as added by section 1 of part C of chapter 59
of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
by section 2 of subpart A of part MM of chapter 59 of the laws of 2022,
are amended to read as follows:
(1) In the case of an electing partnership, the sum of (i) all items
of income, gain, loss, or deduction derived from or connected with New
York sources to the extent they are included in the taxable income of a
nonresident partner subject to tax under article twenty-two, under para-
graph one of subsection (a) of section six hundred thirty-two of this
chapter; [and] (ii) all items of income, gain, loss, or deduction to the
extent they are included in the taxable income of a resident partner
subject to tax under article twenty-two of this chapter; AND (III) ALL
PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW
YORK, TAXES PAID UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY
OF NEW YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIAL-
LY SIMILAR TO THE TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR
FEDERAL INCOME TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE
TAXABLE YEAR, AND ARE INCLUDED IN THE TAXABLE INCOME OF THE PARTNERS
S. 4009--A 26 A. 3009--A
SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE
YEAR.
(2) In the case of an electing standard S corporation, the sum of (I)
all items of income, gain, loss, or deduction derived from or connected
with New York sources to the extent they would be included under para-
graph two of subsection (a) of section six hundred thirty-two of this
chapter in the taxable income of a shareholder subject to tax under
article twenty-two of this chapter; AND (II) ALL PASS-THROUGH ENTITY
TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMILAR TO THE
TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND
ARE INCLUDED IN THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
(3) In the case of an electing resident S corporation, the sum of (I)
all items of income, gain, loss, or deduction to the extent they are
included in the taxable income of a shareholder subject to tax under
article twenty-two of this chapter; AND (II) ALL PASS-THROUGH ENTITY
TAXES INCLUDING TAXES PAID UNDER THIS ARTICLE TO NEW YORK, TAXES PAID
UNDER ARTICLE TWENTY-FOUR-B OF THIS CHAPTER TO THE CITY OF NEW YORK, AND
TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMILAR TO
TAXES PAID UNDER THIS ARTICLE, TO THE EXTENT THAT, FOR FEDERAL INCOME
TAX PURPOSES, THE TAXES ARE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND
ARE INCLUDED IN THE TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX
UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
§ 2. Subsection (c) of section 861 of the tax law, as amended by
section 3 of subpart A of part MM of chapter 59 of the laws of 2022, is
amended to read as follows:
(c) The annual election must be made [by] ON OR BEFORE the due date of
the first estimated payment under section eight hundred sixty-four of
this article and will take effect for the current taxable year. Only one
election may be made during each calendar year. An election made under
this section is irrevocable [as of] AFTER the due date.
§ 3. Paragraphs 1 and 2 of subsection (b) of section 867 of the tax
law, as added by section 1 of subpart B of part MM of chapter 59 of the
laws of 2022, are amended to read as follows:
(1) In the case of an electing city partnership, the sum of (I) all
items of income, gain, loss, or deduction to the extent they are
included in the city taxable income of a partner or member of the elect-
ing city partnership who is a city taxpayer; AND (II) ALL PASS-THROUGH
ENTITY TAXES INCLUDING TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO THE CITY OF NEW
YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE SUBSTANTIALLY SIMI-
LAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, TO THE
EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE TAXES WERE PAID AND
DEDUCTED IN THE TAXABLE YEAR, AND THEY ARE INCLUDED IN THE TAXABLE
INCOME OF THE PARTNERS SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS
CHAPTER FOR THE TAXABLE YEAR.
(2) In the case of an electing city resident S corporation, the sum of
(I) all items of income, gain, loss, or deduction to the extent they
would be included in the city taxable income of a shareholder of the
electing city resident S corporation who is a city taxpayer; AND (II)
ALL PASS-THROUGH ENTITY TAXES INCLUDING TAXES PAID UNDER ARTICLE TWEN-
TY-FOUR-A OF THIS CHAPTER TO NEW YORK, TAXES PAID UNDER THIS ARTICLE TO
THE CITY OF NEW YORK, AND TAXES PAID TO OTHER JURISDICTIONS THAT ARE
S. 4009--A 27 A. 3009--A
SUBSTANTIALLY SIMILAR TO TAXES PAID UNDER ARTICLE TWENTY-FOUR-A OF THIS
CHAPTER, TO THE EXTENT THAT, FOR FEDERAL INCOME TAX PURPOSES, THE TAXES
WERE PAID AND DEDUCTED IN THE TAXABLE YEAR, AND THEY ARE INCLUDED IN THE
TAXABLE INCOME OF THE SHAREHOLDERS SUBJECT TO TAX UNDER ARTICLE TWENTY-
TWO OF THIS CHAPTER FOR THE TAXABLE YEAR.
§ 4. Subsection (e) of section 867 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:
(e) City taxpayer. A city taxpayer means [a city resident individual
subject to the tax imposed pursuant to the authority of article thirty
of this chapter]:
(1) A CITY RESIDENT INDIVIDUAL, AS DEFINED IN SUBSECTION (A) OF
SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER; AND
(2) A CITY RESIDENT TRUST OR ESTATE, AS DEFINED IN SUBSECTION (C) OF
SECTION THIRTEEN HUNDRED FIVE OF THIS CHAPTER.
§ 5. Subsection (i) of section 867 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:
(i) Eligible city partnership. Eligible city partnership means any
partnership as provided for in section 7701(a)(2) of the Internal Reven-
ue Code that has a filing requirement under paragraph one of subsection
(c) of section six hundred fifty-eight of this chapter other than a
publicly traded partnership as defined in section 7704 of the Internal
Revenue Code, where at least one partner or member is a city [resident
individual] TAXPAYER. An eligible city partnership includes any entity,
including a limited liability company, treated as a partnership for
federal income tax purposes that otherwise meets the requirements of
this subsection.
§ 6. Subsection (j) of section 867 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:
(j) Eligible city resident S corporation. Eligible city resident S
corporation means any New York S corporation as defined pursuant to
subdivision one-A of section two hundred eight of this chapter that is
subject to tax under section two hundred nine of this chapter that has
only city [resident individual] TAXPAYER shareholders. An eligible city
resident S corporation includes any entity, including a limited liabil-
ity company, treated as an S corporation for federal income tax purposes
that otherwise meets the requirements of this subsection.
§ 7. Subsection (c) 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:
(c) The annual election to be taxed pursuant to this article must be
made [by] ON OR BEFORE the due date of the first estimated payment under
section eight hundred sixty-four of this chapter and will take effect
for the current taxable year. Only one election to be taxed pursuant to
this article may be made during each calendar year. An election made
under this section is irrevocable [as of] AFTER such due date. To the
extent an election made under section eight hundred sixty-one of this
chapter is revoked or otherwise invalidated an election made under this
section is automatically invalidated.
§ 8. This act shall take effect immediately, provided, however, that:
(i) sections one and two of this act shall be deemed to have been in
full force and effect on and after the effective date of part C of chap-
ter 59 of the laws of 2021; (ii) sections three and seven of this act
shall be deemed to have been in full force and effect on and after the
S. 4009--A 28 A. 3009--A
effective date of section 1 of subpart B of part MM of chapter 59 of the
laws of 2022; and (iii) sections four, five and six of this act shall
apply to taxable years beginning on or after January 1, 2023.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately; provided, however, that
the applicable effective dates of Subparts A through C of this act shall
be as specifically set forth in the last section of such Subparts.
PART K
Section 1. Paragraphs (a) and (d) of subdivision 1 of section 467 of
the real property tax law, as amended by section 1 of part B of chapter
686 of the laws of 2022, are amended to read as follows:
(a) Real property owned by one or more persons, each of whom is
sixty-five years of age or over, or real property owned by [husband and
wife] A MARRIED COUPLE or by siblings, one of whom is sixty-five years
of age or over, or real property owned by one or more persons, some of
whom qualify under this section and the others of whom qualify under
section four hundred fifty-nine-c of this title, shall be exempt from
payments in lieu of taxes (PILOT) to the battery park city authority or
from taxation by any municipal corporation in which located to the
extent of fifty per centum of the assessed valuation thereof, provided
the governing board of such municipality, after public hearing, adopts a
local law, ordinance or resolution providing therefor. For the purposes
of this section, [sibling shall mean a brother or a sister, whether
related] THE TERM "SIBLING" SHALL INCLUDE PERSONS WHOSE RELATIONSHIP AS
SIBLINGS HAS BEEN ESTABLISHED through EITHER half blood, whole blood or
adoption.
(d) The real property tax or PILOT exemption on real property owned by
[husband and wife] A MARRIED COUPLE, one of whom is sixty-five years of
age or over, once granted, shall not be rescinded by any municipal
corporation solely because of the death of the older spouse so long as
the surviving spouse is at least sixty-two years of age.
§ 2. Subdivision 3 of section 467 of the real property tax law, as
amended by section 1 of part B of chapter 686 of the laws of 2022, para-
graph (a) as separately amended by chapter 488 of the laws of 2022, is
amended to read as follows:
3. No exemption shall be granted:
(a)(I) if the income of the owner or the combined income of the owners
of the property for the APPLICABLE income tax year [immediately preced-
ing the date of making application for exemption] exceeds the sum of
three thousand dollars, or such other sum not less than three thousand
dollars nor more than [twenty-six thousand dollars beginning July first,
two thousand six, twenty-seven thousand dollars beginning July first,
two thousand seven, twenty-eight thousand dollars beginning July first,
two thousand eight, twenty-nine thousand dollars beginning July first,
two thousand nine, fifty thousand dollars beginning July first, two
thousand twenty-two, and in a city with a population of one million or
S. 4009--A 29 A. 3009--A
more fifty thousand dollars beginning July first, two thousand seven-
teen,] FIFTY THOUSAND DOLLARS, as may be provided by the local law,
ordinance or resolution adopted pursuant to this section.
(II) Where the taxable status date is on or before April fourteenth,
THE APPLICABLE income tax year shall [mean] BE the twelve-month period
for which the owner or owners filed a federal personal income tax return
for the year before the income tax year immediately preceding the date
of application and where the taxable status date is on or after April
fifteenth, THE APPLICABLE income tax year shall [mean] BE the twelve-
month period for which the owner or owners filed a federal personal
income tax return for the income tax year immediately preceding the date
of application.
(III) Where title is vested in [either the husband or the wife, their]
A MARRIED PERSON, THE combined income OF SUCH PERSON AND SUCH PERSON'S
SPOUSE may not exceed such sum, except where [the husband or wife, or
ex-husband or ex-wife] ONE SPOUSE OR EX-SPOUSE is absent from the prop-
erty as provided in subparagraph (ii) of paragraph (d) of this subdivi-
sion, then only the income of the spouse or ex-spouse residing on the
property shall be considered and may not exceed such sum. [Such income
shall include social security and retirement benefits, interest, divi-
dends, total gain from the sale or exchange of a capital asset which may
be offset by a loss from the sale or exchange of a capital asset in the
same income tax year, net rental income, salary or earnings, and net
income from self-employment, but shall not include a return of capital,
gifts, inheritances, payments made to individuals because of their
status as victims of Nazi persecution, as defined in P.L. 103-286 or
monies earned through employment in the federal foster grandparent
program and any such income shall be offset by all medical and
prescription drug expenses actually paid which were not reimbursed or
paid for by insurance, if the governing board of a municipality, after a
public hearing, adopts a local law, ordinance or resolution providing
therefor. In addition, an exchange of an annuity for an annuity
contract, which resulted in non-taxable gain, as determined in section
one thousand thirty-five of the internal revenue code, shall be excluded
from such income. Provided that such exclusion shall be based on satis-
factory proof that such an exchange was solely an exchange of an annuity
for an annuity contract that resulted in a non-taxable transfer deter-
mined by such section of the internal revenue code. Furthermore, such
income shall not include the proceeds of a reverse mortgage, as author-
ized by section six-h of the banking law, and sections two hundred
eighty and two hundred eighty-a of the real property law; provided,
however, that monies used to repay a reverse mortgage may not be
deducted from income, and provided additionally that any interest or
dividends realized from the investment of reverse mortgage proceeds
shall be considered income. The provisions of this paragraph notwith-
standing, such income shall not include veterans disability compen-
sation, as defined in Title 38 of the United States Code provided the
governing board of such municipality, after public hearing, adopts a
local law, ordinance or resolution providing therefor. In computing net
rental income and net income from self-employment no depreciation
deduction shall be allowed for the exhaustion, wear and tear of real or
personal property held for the production of income;]
(IV) THE TERM "INCOME" AS USED HEREIN SHALL MEAN THE "ADJUSTED GROSS
INCOME" FOR FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLICANT'S
FEDERAL OR STATE INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR,
SUBJECT TO ANY SUBSEQUENT AMENDMENTS OR REVISIONS, PLUS ANY SOCIAL SECU-
S. 4009--A 30 A. 3009--A
RITY BENEFITS NOT INCLUDED IN SUCH ADJUSTED GROSS INCOME, MINUS ANY
DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME,
RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
MENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN WAS FILED FOR THE APPLICA-
BLE INCOME TAX YEAR, THE APPLICANT'S INCOME SHALL BE DETERMINED BASED ON
THE AMOUNTS THAT WOULD HAVE SO BEEN REPORTED IF SUCH A RETURN HAD BEEN
FILED; AND PROVIDED FURTHER, THAT THE GOVERNING BOARD OF A MUNICIPALITY
MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT ANY SOCIAL
SECURITY BENEFITS THAT WERE NOT INCLUDED IN THE APPLICANT'S ADJUSTED
GROSS INCOME SHALL NOT BE CONSIDERED INCOME FOR PURPOSES OF THIS
SECTION;
(b) unless the owner shall have held an exemption under this section
for [his] THE OWNER'S previous residence or unless the title of the
property shall have been vested in the owner or one of the owners of the
property for at least twelve consecutive months prior to the date of
making application for exemption, provided, however, that in the event
of the death of [either a husband or wife] A MARRIED PERSON in whose
name title of the property shall have been vested at the time of death
and then becomes vested solely in [the survivor] SUCH PERSON'S SURVIVING
SPOUSE by virtue of devise by or descent from the deceased [husband or
wife] SPOUSE, the time of ownership of the property by the deceased
[husband or wife] SPOUSE shall be deemed also a time of ownership by the
[survivor] SURVIVING SPOUSE and such ownership shall be deemed contin-
uous for the purposes of computing such period of twelve consecutive
months. In the event of a transfer by [either a husband or wife to the
other] A MARRIED PERSON TO SUCH PERSON'S spouse of all or part of the
title to the property, the time of ownership of the property by the
transferor spouse shall be deemed also a time of ownership by the trans-
feree spouse and such ownership shall be deemed continuous for the
purposes of computing such period of twelve consecutive months. Where
property of the owner or owners has been acquired to replace property
formerly owned by such owner or owners and taken by eminent domain or
other involuntary proceeding, except a tax sale, the period of ownership
of the former property shall be combined with the period of ownership of
the property for which application is made for exemption and such peri-
ods of ownership shall be deemed to be consecutive for purposes of this
section. Where a residence is sold and replaced with another within one
year and both residences are within the state, the period of ownership
of both properties shall be deemed consecutive for purposes of the
exemption from taxation by a municipality within the state granting such
exemption. Where the owner or owners transfer title to property which as
of the date of transfer was exempt from taxation or PILOT under the
provisions of this section, the reacquisition of title by such owner or
owners within nine months of the date of transfer shall be deemed to
satisfy the requirement of this paragraph that the title of the property
shall have been vested in the owner or one of the owners for such period
of twelve consecutive months. Where, upon or subsequent to the death of
an owner or owners, title to property which as of the date of such death
was exempt from taxation or PILOT under such provisions, becomes vested,
by virtue of devise or descent from the deceased owner or owners, or by
transfer by any other means within nine months after such death, solely
in a person or persons who, at the time of such death, maintained such
property as a primary residence, the requirement of this paragraph that
the title of the property shall have been vested in the owner or one of
the owners for such period of twelve consecutive months shall be deemed
satisfied;
S. 4009--A 31 A. 3009--A
(c) unless the property is used exclusively for residential purposes,
provided, however, that in the event any portion of such property is not
so used exclusively for residential purposes but is used for other
purposes, such portion shall be subject to taxation or PILOT and the
remaining portion only shall be entitled to the exemption provided by
this section;
(d) unless the real property is the legal residence of and is occupied
in whole or in part by the owner or by all of the owners of the proper-
ty: except where, (i) an owner is absent from the residence while
receiving health-related care as an inpatient of a residential health
care facility, as defined in section twenty-eight hundred one of the
public health law, provided that any income accruing to that person
shall only be income only to the extent that it exceeds the amount paid
by such owner, spouse, or co-owner for care in the facility, and
provided further, that during such confinement such property is not
occupied by other than the spouse or co-owner of such owner; or, (ii)
the real property is owned by a [husband and/or wife, or an ex-husband
and/or an ex-wife, and either] MARRIED PERSON OR A MARRIED COUPLE, OR BY
A FORMERLY MARRIED PERSON OR A FORMERLY MARRIED COUPLE, AND ONE SPOUSE
OR EX-SPOUSE is absent from the residence due to divorce, legal sepa-
ration or abandonment and all other provisions of this section are met
provided that where an exemption was previously granted when both
resided on the property, then the person remaining on the real property
shall be sixty-two years of age or over.
§ 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop-
erty tax law, as amended by section 1 of part B of chapter 686 of the
laws of 2022, is amended to read as follows:
(a) For the purposes of this section, title to that portion of real
property owned by a cooperative apartment corporation in which a
tenant-stockholder of such corporation resides and which is represented
by [his] THE TENANT-STOCKHOLDER'S share or shares of stock in such
corporation as determined by its or their proportional relationship to
the total outstanding stock of the corporation, including that owned by
the corporation, shall be deemed to be vested in such tenant-stockhold-
er.
§ 4. Subdivisions 5 and 5-a of section 467 of the real property tax
law, as amended by section 1 of part B of chapter 686 of the laws of
2022, are amended to read as follows:
5. Application for such exemption must be made by the owner, or all of
the owners of the property, on forms prescribed by the commissioner to
be furnished by the appropriate assessing authority and shall furnish
the information and be executed in the manner required or prescribed in
such forms, and shall be filed in such assessor's office on or before
the appropriate taxable status date. Notwithstanding any other provision
of law, at the option of the municipal corporation, any person otherwise
qualifying under this section shall not be denied the exemption under
this section if [he] SUCH PERSON becomes sixty-five years of age after
the appropriate taxable status date and on or before December thirty-
first of the same year.
5-a. Any local law or ordinance adopted pursuant to paragraph (a) of
subdivision one of this section may be amended, or a local law or ordi-
nance may be adopted to provide, notwithstanding subdivision five of
this section, that an application for such exemption may be filed with
the assessor after the appropriate taxable status date but not later
than the last date on which a petition with respect to complaints of
assessment may be filed, where failure to file a timely application
S. 4009--A 32 A. 3009--A
resulted from: (a) a death of the applicant's spouse, child, parent[,
brother or sister] OR SIBLING; or (b) an illness of the applicant or of
the applicant's spouse, child, parent[, brother or sister] OR SIBLING,
which actually prevents the applicant from filing on a timely basis, as
certified by a licensed physician. The assessor shall approve or deny
such application as if it had been filed on or before the taxable status
date.
§ 5. Subdivision 6 of section 467 of the real property tax law, as
amended by section 1 of part B of chapter 686 of the laws of 2022, is
amended to read as follows:
6. (a) At least sixty days prior to the appropriate taxable status
date, the assessing authority shall mail to each person who was granted
exemption pursuant to this section on the latest completed assessment
roll an application form and a notice that such application must be
filed on or before the taxable status date and be approved in order for
the exemption to be granted. The assessing authority shall, within three
days of the completion and filing of the tentative assessment roll,
notify by mail any applicant [who has included with his] WHOSE applica-
tion INCLUDES at least one self-addressed, pre-paid envelope, of the
approval or denial of the application; provided, however, that the
assessing authority shall, upon the receipt and filing of the applica-
tion, send by mail notification of receipt to any applicant who has
included two of such envelopes with the application. Where an applicant
is entitled to a notice of denial pursuant to this subdivision, such
notice shall be on a form prescribed by the commissioner and shall state
the reasons for such denial and shall further state that the applicant
may have such determination reviewed in the manner provided by law.
Failure to mail any such application form or notices or the failure of
such person to receive any of the same shall not prevent the levy,
collection and enforcement of the payment of the taxes or PILOT on prop-
erty owned by such person.
(b) Except in cities of one million or more, any person who has been
granted exemption pursuant to this section on five (5) consecutive
completed assessment rolls, including any years when the exemption was
granted to a property owned by [a husband and/or wife] A MARRIED PERSON
OR A MARRIED COUPLE while both SPOUSES resided in such property, shall
not be subject to the requirements set forth in paragraph (a) of this
subdivision provided the governing board of the municipality in which
said property is situated after public hearing adopts a local law, ordi-
nance or resolution providing therefor however said person shall be
mailed an application form and a notice [informing him of his] SETTING
FORTH SUCH PERSON'S rights. Such exemption shall be automatically grant-
ed on each subsequent assessment roll. Provided, however, that when tax
payment is made by such person a sworn affidavit must be included with
such payment which shall state that such person continues to be eligible
for such exemption. Such affidavit shall be on a form prescribed by the
commissioner. If such affidavit is not included with the tax payment,
the collecting officer shall proceed pursuant to section five hundred
fifty-one-a of this chapter.
(c) In cities of one million or more, any person who has been granted
exemption pursuant to this section shall file the completed application
with the appropriate assessing authority every twenty-four months from
the date such exemption was granted without the necessity of having been
granted exemption pursuant to this section on five (5) consecutive
completed assessment rolls including any years when the exemption was
S. 4009--A 33 A. 3009--A
granted to a property owned by [a husband and/or wife] A MARRIED PERSON
OR A MARRIED COUPLE while both SPOUSES resided in such property.
§ 6. Subdivision 8-a of section 467 of the real property tax law, as
amended by section 1 of part B of chapter 686 of the laws of 2022, is
amended to read as follows:
8-a. Notwithstanding any provision of law to the contrary, the local
governing body of a municipal corporation that is authorized to adopt a
local law pursuant to subdivision eight of this section is further
authorized to adopt a local law providing that where a renewal applica-
tion for the exemption authorized by this section has not been filed on
or before the taxable status date, and the owner believes that good
cause existed for the failure to file the renewal application by that
date, the owner may, no later than the last day for paying taxes or
PILOT without incurring interest or penalty, submit a written request to
the assessor asking [him or her] THE ASSESSOR to extend the filing dead-
line and grant the exemption. Such request shall contain an explanation
of why the deadline was missed, and shall be accompanied by a renewal
application, reflecting the facts and circumstances as they existed on
the taxable status date. The assessor may extend the filing deadline and
grant the exemption if [he or she] THE ASSESSOR is satisfied that (i)
good cause existed for the failure to file the renewal application by
the taxable status date, and that (ii) the applicant is otherwise enti-
tled to the exemption. The assessor shall MAKE A DETERMINATION AND mail
notice [of his or her determination] THEREOF to the owner. If the deter-
mination states that the assessor has granted the exemption, [he or she]
THE ASSESSOR shall thereupon be authorized and directed to correct the
assessment roll accordingly, or, if another person has custody or
control of the assessment roll, to direct that person to make the appro-
priate corrections. If the correction is not made before taxes are
levied, the failure to take the exemption into account in the computa-
tion of the tax shall be deemed a "clerical error" for purposes of title
three of article five of this chapter, and shall be corrected according-
ly.
§ 7. This act shall take effect immediately and shall apply to all
applications for exemptions pursuant to section 467 of the real property
tax law on assessment rolls that are based on taxable status dates
occurring on and after October 1, 2023.
PART L
Section 1. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas charges, as amended by
section 1 of part C of chapter 59 of the laws of 2020, is amended to
read as follows:
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act shall remain in full force and
effect until March 31, [2024] 2027, at which time section 593 of the
real property tax law as added by section one of this act shall be
repealed.
§ 2. This act shall take effect immediately.
PART M
S. 4009--A 34 A. 3009--A
Section 1. The real property tax law is amended by adding a new
section 989 to read as follows:
§ 989. DISTRIBUTION OF SURPLUS IN TAX ENFORCEMENT PROCEEDINGS. 1.
NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO
THE CONTRARY, WHEN A PROPERTY OWNER IS DIVESTED OF TITLE DUE TO THE
FORECLOSURE OF A DELINQUENT REAL PROPERTY TAX LIEN ON THE PROPERTY, AND
THE PROPERTY IS SOLD TO A THIRD PARTY, THE PROCEEDS OF SUCH SALE SHALL
BE DISTRIBUTED AS FOLLOWS:
(A) IF THE PROCEEDS OF THE SALE ARE LESS THAN OR EQUAL TO THE TOTAL
TAXES DUE ON THE PROPERTY PLUS INTEREST, PENALTIES AND OTHER CHARGES
DULY IMPOSED UPON THE PROPERTY, INCLUDING THE ADMINISTRATIVE COSTS ASSO-
CIATED WITH THE FORECLOSURE PROCESS, THE ENTIRE PROCEEDS SHALL BE PAID
TO THE LOCAL GOVERNMENT.
(B) IF THE PROCEEDS OF THE SALE EXCEED THE TOTAL TAXES DUE ON THE
PROPERTY PLUS INTEREST, PENALTIES AND OTHER CHARGES DULY IMPOSED UPON
THE PROPERTY, INCLUDING THE ADMINISTRATIVE COSTS ASSOCIATED WITH THE
FORECLOSURE PROCESS, THE EXCESS SHALL BE DISTRIBUTED AS FOLLOWS:
(I) IF THE PROPERTY IS NOT SUBJECT TO OTHER LIENS, THE EXCESS PROCEEDS
SHALL BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
(II) IF THE PROPERTY IS SUBJECT TO OTHER LIENS, THE LIENHOLDERS SHALL
BE PAID FROM THE EXCESS PROCEEDS IN THE SAME ORDER AND TO THE SAME
EXTENT AS THEY WOULD BE IN AN ACTION TO FORECLOSE A MORTGAGE PURSUANT TO
ARTICLE THIRTEEN OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW. ANY
PROCEEDS REMAINING AFTER THE OTHER LIENHOLDERS HAVE BEEN SO PAID SHALL
BE PAID TO THE PRIOR OWNER OR OWNERS OF THE PROPERTY.
2. THE PROVISIONS OF THIS SECTION SHALL APPLY WHETHER PROPERTY IS SOLD
THROUGH A PUBLIC AUCTION OR OTHERWISE.
3. WHEN A FORECLOSURE CONCLUDES WITH THE TAX DISTRICT TAKING TITLE TO
PROPERTY, THE PROVISIONS OF THIS SECTION SHALL NOT APPLY UNLESS AND
UNTIL THE TAX DISTRICT SELLS THE PROPERTY TO A THIRD PARTY; PROVIDED
THAT IN SUCH A CASE, IF THERE ARE EXCESS PROCEEDS TO BE PAID TO THE
PRIOR OWNER OR OWNERS OF THE PROPERTY, SUCH PROCEEDS SHALL BE PAID TO
THE OWNER OR OWNERS OF THE PROPERTY PRIOR TO ITS ACQUISITION BY THE TAX
DISTRICT.
4. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE ENFORCEMENT
OF TAX LIENS ON ABANDONED REAL PROPERTY. FOR PURPOSES OF THIS SECTION,
REAL PROPERTY SHALL BE DEEMED ABANDONED IF IT:
(A) HAS BEEN INCLUDED ON A LOCAL MUNICIPAL ROLL, REGISTRY OR LIST OF
VACANT AND ABANDONED RESIDENTIAL PROPERTY PURSUANT TO SECTION ELEVEN
HUNDRED ELEVEN-A OF THIS CHAPTER, OR
(B) HAS BEEN CERTIFIED AS ABANDONED COMMERCIAL OR INDUSTRIAL REAL
PROPERTY PURSUANT TO ARTICLE NINETEEN-A OF THE REAL PROPERTY ACTIONS AND
PROCEEDINGS LAW, OR
(C) HAS BEEN INCLUDED ON THE STATEWIDE REGISTRY OF VACANT AND ABAN-
DONED PROPERTY PURSUANT TO SECTION THIRTEEN HUNDRED TEN OF THE REAL
PROPERTY ACTIONS AND PROCEEDINGS LAW.
5. THIS SECTION SHALL BE CONSTRUED TO SUPERSEDE ALL GENERAL, SPECIAL
AND LOCAL LAWS RELATING TO TAX ENFORCEMENT TO THE EXTENT THAT SUCH LAWS
WOULD OTHERWISE ALLOW THE PROCEEDS OF A SALE TO BE DISTRIBUTED IN A
MANNER OTHER THAN AS SET FORTH IN THIS SECTION. THIS SECTION IS NOT
INTENDED TO SUPERSEDE SUCH LAWS IN OTHER RESPECTS.
§ 2. Subdivision 2 of section 1104 of the real property tax law, as
amended by chapter 532 of the laws of 1994, paragraph (iii) as further
amended by subdivision (b) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
S. 4009--A 35 A. 3009--A
2. The provisions of this article shall not be applicable to a county,
city or town which: (i) on January first, nineteen hundred ninety-three,
was authorized to enforce the collection of delinquent taxes pursuant to
a county charter, city charter, administrative code or special law; (ii)
adopted a local law, no later than July first, nineteen hundred ninety-
four, providing that the collection of taxes in such county, city or
town shall continue to be enforced pursuant to such charter, code or
special law, as such charter, code or special law may from time to time
be amended; and (iii) filed a copy of such local law with the commis-
sioner no later than August first, nineteen hundred ninety-four.
PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
EXEMPT ANY SUCH COUNTY, CITY OR TOWN FROM THE PROVISIONS OF SECTION NINE
HUNDRED EIGHTY-NINE OF THIS CHAPTER.
§ 3. Subdivision 1 of section 1166 of the real property tax law, as
amended by chapter 500 of the laws of 2015, is amended to read as
follows:
1. Whenever any tax district shall become vested with the title to
real property by virtue of a foreclosure proceeding brought pursuant to
the provisions of this article, such tax district is hereby authorized
to sell and convey the real property so acquired, which shall include
any and all gas, oil or mineral rights associated with such real proper-
ty, either with or without advertising for bids, notwithstanding the
provisions of any general, special or local law. THE PROCEEDS OBTAINED
FROM ANY SUCH SALE SHALL BE DISTRIBUTED IN THE MANNER PROVIDED BY
SECTION NINE HUNDRED EIGHTY-NINE OF THIS CHAPTER.
§ 4. This act shall take effect October 1, 2023, and shall apply to
all tax foreclosure proceedings commenced on and after such date.
PART N
Section 1. Section 575-b of the real property tax law is amended by
adding a new subdivision 1-a to read as follows:
1-A. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE SOLAR
OR WIND ENERGY SYSTEM APPRAISAL MODEL AUTHORIZED BY THIS SECTION SHALL
BE IDENTIFIED, FORMULATED, ADOPTED, PUBLISHED, AND UPDATED PERIODICALLY
IN THE MANNER PROVIDED IN THIS SECTION WITHOUT REGARD TO THE PROVISIONS
OF ARTICLE TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
§ 2. Subparagraph (viii) of paragraph (b) of subdivision 2 of section
102 of the state administrative procedure act, as amended by chapter 74
of the laws of 1987, is amended to read as follows:
(viii) APPRAISAL MODELS, DISCOUNT RATES, state equalization rates,
class ratios, special equalization rates and special equalization ratios
established pursuant to the real property tax law;
§ 3. No assessing unit that failed to use the appraisal model pursu-
ant to section 575-b of the real property tax law in 2022 shall be held
liable for failing to use such model in 2022. Within fifteen days from
the effective date of this act, the commissioner of taxation and finance
may readopt the 2022 appraisal model or models and discount rates for
use in 2023, without additional consultation with the New York state
energy research and development authority or the New York state asses-
sors association, and without soliciting or considering additional
public comments.
§ 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after the effective date of
part X of chapter 59 of the laws of 2021.
S. 4009--A 36 A. 3009--A
PART O
Section 1. Subparagraph (i) of the opening paragraph of section 1210
of the tax law is REPEALED and a new subparagraph (i) is added to read
as follows:
(I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING
COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE
IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI-
NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE
OF FOUR AND ONE-HALF PERCENT;
(2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN
THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND
AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT
ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE
FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE
AUTHORIZED ABOVE IN THIS PARAGRAPH:
(A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA,
CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS,
ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS,
LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO,
ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST.
LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN,
SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE,
WESTCHESTER, WYOMING, YATES;
(B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU;
(C) ONE AND ONE-HALF PERCENT - ALLEGANY;
(D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA.
(E) PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE
ADDITIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN
LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS;
(II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH
PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL
RATE IN QUARTER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE
ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL
BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY-
TWO-E OF THIS ARTICLE; (IV) THE ONE AND THREE-QUARTERS PERCENT ADDI-
TIONAL RATE TO BE IMPOSED BY THE COUNTY OF ERIE SHALL BE SUBJECT TO THE
LIMITATIONS SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-Q OF THIS
ARTICLE.
§ 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
tax law is REPEALED and a new subparagraph (ii) is added to read as
follows:
(II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS
AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR
RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT
INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI-
TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE
IN THIS PARAGRAPH:
(1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS;
(2) ONE AND ONE-QUARTER PERCENT - NONE;
(3) ONE AND ONE-HALF PERCENT - YONKERS.
S. 4009--A 37 A. 3009--A
§ 3. Subparagraphs (iii) and (iv) of the opening paragraph of section
1210 of the tax law are REPEALED and a new subparagraph (iii) is added
to read as follows:
(III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY-
FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI-
TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA,
CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I)
AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
§ 4. Section 1210 of the tax law is amended by adding a new subdivi-
sion (p) to read as follows:
(P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY OTHER LAW TO
THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES
OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF
THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF
MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY
SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW,
ORDINANCE, OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS-
ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY
SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR.
NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS
AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR-
IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD
COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-THREE AND ENDING ON
NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE. ANY SUCH LOCAL LAW, ORDI-
NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI-
SIONS (D) AND (E) OF THIS SECTION.
§ 5. Section 1210-E of the tax law is REPEALED.
§ 6. Subdivision (a) of section 1223 of the tax law, as amended by
chapter 44 of the laws of 2019, is amended to read as follows:
(a) No transaction taxable under sections twelve hundred two through
twelve hundred four of this article shall be taxed pursuant to this
article by any county or by any city located therein, or by both, at an
aggregate rate in excess of the highest rate set forth in the applicable
subdivision of section twelve hundred one of this article or, in the
case of any taxes imposed pursuant to the authority of section twelve
hundred ten or twelve hundred eleven of this article (other than taxes
imposed by the county of Nassau, Erie, [Steuben, Cattaraugus, Suffolk,]
Oneida, [Genesee, Greene, Franklin, Hamilton,] Herkimer, [Tioga, Orle-
ans,] AND Allegany[, Ulster, Albany, Rensselaer, Tompkins, Wyoming,
Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sulli-
van, Wayne, Livingston, Schenectady, Montgomery, Delaware, Clinton,
Niagara, Yates, Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua,
Orange, Oswego, Ontario, Jefferson, St. Lawrence, Westchester or Ononda-
ga and by the county of Cortland and the city of Cortland and by the
county of Broome and the city of Binghamton and by the county of Cayuga
and the city of Auburn and by the county of Otsego and the city of
Oneonta and by the county of Madison and the city of Oneida and by the
county of Fulton and the city of Gloversville or the city of Johnstown]
as provided in section twelve hundred ten of this article) at a rate in
excess of [three] FOUR percent, except that, in the city of Yonkers[, in
the city of Mount Vernon, in the city of New Rochelle, in the city of
Fulton, in the city of Oswego, and in the city of White Plains,] the
rate may not be in excess of four AND ONE-HALF percent, and except that
in the city of Poughkeepsie in the county of Dutchess, if such county
withdraws from the metropolitan commuter transportation district pursu-
ant to section twelve hundred seventy-nine-b of the public authorities
S. 4009--A 38 A. 3009--A
law and if the revenues from a three-eighths percent rate of such tax
imposed by such county, pursuant to the authority of section twelve
hundred ten of this article, are required by local laws, ordinances or
resolutions to be set aside for mass transportation purposes, the rate
may not be in excess of [three] FOUR and three-eighths percent.
§ 7. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m),
(n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1),
(aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section
1224 of the tax law are REPEALED.
§ 8. Section 1224 of the tax law is amended by adding three new subdi-
visions (d), (e), and (f) to read as follows:
(D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN
THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE
HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE
HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO
PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE
IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED.
HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL
LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION.
(E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE
RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING
USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR-
IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA-
GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF
THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO
PREEMPTION.
(1) COUNTIES:
(A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG,
CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE-
SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY,
NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER,
ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER,
SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN,
WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES;
(B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU;
(C) ONE AND ONE-HALF PERCENT - ALLEGANY;
(D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA.
(E) PROVIDED, HOWEVER, THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE
SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH
COUNTY IS AUTHORIZED TO IMPOSE PURSUANT TO THE AUTHORITY OF CLAUSE TWO
OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED
TEN OF THIS ARTICLE IN THE AREA OF THE COUNTY OUTSIDE THE CITIES OF
MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS, AND YONKERS.
(2) CITIES:
(A) ONE-QUARTER OF ONE PERCENT - ROME;
(B) ONE-HALF OF ONE PERCENT - NONE;
(C) THREE-QUARTERS OF ONE PERCENT - NONE;
(D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS;
(E) ONE AND ONE-QUARTER PERCENT - NONE;
(F) ONE AND ONE-HALF PERCENT - YONKERS.
(F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES
IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY
OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF
THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN
OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH
SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY;
S. 4009--A 39 A. 3009--A
CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON
COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE
DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY
IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE
EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR
AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A
CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE
DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN
SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER
REQUIREMENTS OF THIS ARTICLE.
§ 9. Subdivision (b) of section 1262-b of the tax law is REPEALED.
§ 10. Section 1262-e of the tax law, as amended by section 2 of item
BB of subpart C of part XXX of chapter 58 of the laws of 2020, is
amended to read as follows:
§ 1262-e. Establishment of local government assistance programs in
Nassau county. 1. Towns and cities. Notwithstanding any other provision
of law to the contrary, for the calendar year beginning on January
first, nineteen hundred ninety-eight and continuing through the calendar
year beginning on January first, two thousand twenty-three, AND EACH
CALENDAR YEAR THEREAFTER BEGINNING ON JANUARY FIRST, the county of
Nassau shall enact and establish a local government assistance program
for the towns and cities within such county to assist such towns and
cities to minimize real property taxes; defray the cost and expense of
the treatment, collection, management, disposal, and transportation of
municipal solid waste, and to comply with the provisions of chapter two
hundred ninety-nine of the laws of nineteen hundred eighty-three; and
defray the cost of maintaining conservation and environmental control
programs. Such special assistance program for the towns and cities with-
in such county and the funding for such program shall equal one-third of
the revenues received by such county from the imposition of the three-
quarters percent sales and use tax during calendar years two thousand
one, two thousand two, two thousand three, two thousand four, two thou-
sand five, two thousand six, two thousand seven, two thousand eight, two
thousand nine, two thousand ten, two thousand eleven, two thousand
twelve, two thousand thirteen, two thousand fourteen, two thousand
fifteen, two thousand sixteen, two thousand seventeen, two thousand
eighteen, two thousand nineteen, two thousand twenty, two thousand twen-
ty-one, two thousand twenty-two [and], two thousand twenty-three AND
EACH CALENDAR YEAR THEREAFTER additional to the regular three percent
rate authorized for such county in section twelve hundred ten of this
article. The monies for such special local assistance shall be paid and
distributed to the towns and cities on a per capita basis using the
population figures in the latest decennial federal census. Provided
further, that notwithstanding any other law to the contrary, the estab-
lishment of such special assistance program shall preclude any city or
town within such county from preempting or claiming under any other
section of this chapter the revenues derived from the additional tax
authorized by section twelve hundred ten of this article. Provided
further, that any such town or towns may, by resolution of the town
board, apportion all or a part of monies received in such special
assistance program to an improvement district or special district
account within such town or towns in order to accomplish the purposes of
this special assistance program.
2. Villages. Notwithstanding any other provision of law to the contra-
ry, for the calendar year beginning on January first, nineteen hundred
ninety-eight and continuing through the calendar year beginning on Janu-
S. 4009--A 40 A. 3009--A
ary first, two thousand twenty-three, AND EACH CALENDAR YEAR THEREAFTER,
the county of Nassau, by local law, is hereby empowered to enact and
establish a local government assistance program for the villages within
such county to assist such villages to minimize real property taxes;
defray the cost and expense of the treatment, collection, management,
disposal, and transportation of municipal solid waste; and defray the
cost of maintaining conservation and environmental control programs. The
funding of such local assistance program for the villages within such
county may be provided by Nassau county during any calendar year in
which such village local assistance program is in effect and shall not
exceed one-sixth of the revenues received from the imposition of the
three-quarters percent sales and use tax that are remaining after the
towns and cities have received their funding pursuant to the provisions
of subdivision one of this section. The funding for such village local
assistance program shall be paid and distributed to the villages on a
per capita basis using the population figures in the latest decennial
federal census. Provided further, that the establishment of such village
local assistance program shall preclude any village within such county
from preempting or claiming under any other section of this chapter the
revenues derived from the additional tax authorized by section twelve
hundred ten of this article.
§ 11. Section 1262-g of the tax law, as amended by section 2 of item
DD of subpart C of part XXX of chapter 58 of the laws of 2020, is
amended to read as follows:
§ 1262-g. Oneida county allocation and distribution of net collections
from the additional [one percent rate] RATES of sales and compensating
use taxes. Notwithstanding any contrary provision of law, (A) if the
county of Oneida imposes sales and compensating use taxes at a rate
which is one percent additional to the three percent rate authorized by
section twelve hundred ten of this article, as authorized by such
section, [(a)] (I) where a city in such county imposes tax pursuant to
the authority of subdivision (a) of such section twelve hundred ten,
such county shall allocate, distribute and pay in cash quarterly to such
city one-half of the net collections attributable to such additional one
percent rate of the county's taxes collected in such city's boundaries;
[(b)] (II) where a city in such county does not impose tax pursuant to
the authority of such subdivision (a) of such section twelve hundred
ten, such county shall allocate, distribute and pay in cash quarterly to
such city not so imposing tax a portion of the net collections attribut-
able to one-half of the county's additional one percent rate of tax
calculated on the basis of the ratio which such city's population bears
to the county's total population, such populations as determined in
accordance with the latest decennial federal census or special popu-
lation census taken pursuant to section twenty of the general municipal
law completed and published prior to the end of the quarter for which
the allocation is made, which special census must include the entire
area of the county; [and (c)] provided, however, that such county shall
dedicate the first one million five hundred thousand dollars of net
collections attributable to such additional one percent rate of tax
received by such county after the county receives in the aggregate eigh-
teen million five hundred thousand dollars of net collections from such
additional one percent rate of tax [imposed for any of the periods:
September first, two thousand twelve through August thirty-first, two
thousand thirteen; September first, two thousand thirteen through August
thirty-first, two thousand fourteen; and September first, two thousand
fourteen through August thirty-first, two thousand fifteen; September
S. 4009--A 41 A. 3009--A
first, two thousand fifteen through August thirty-first, two thousand
sixteen; and September first, two thousand sixteen through August thir-
ty-first, two thousand seventeen; September first, two thousand seven-
teen through August thirty-first, two thousand eighteen; September
first, two thousand eighteen through August thirty-first, two thousand
twenty; and September first, two thousand twenty through August thirty-
first, two thousand twenty-three,] to an allocation on a per capita
basis, utilizing figures from the latest decennial federal census or
special population census taken pursuant to section twenty of the gener-
al municipal law, completed and published prior to the end of the year
for which such allocation is made, which special census must include the
entire area of such county, to be allocated and distributed among the
towns of Oneida county by appropriation of its board of legislators;
provided, further, that nothing herein shall require such board of
legislators to make any such appropriation until it has been notified by
any town by appropriate resolution and, in any case where there is a
village wholly or partly located within a town, a resolution of every
such village, embodying the agreement of such town and village or
villages upon the amount of such appropriation to be distributed to such
village or villages out of the allocation to the town or towns in which
it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSAT-
ING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDI-
TIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED
TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARA-
GRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS
ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS
PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE
DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE
COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE
HUNDRED SIXTY-TWO OF THIS PART.
§ 12. Section 1262-h of the tax law, as amended by chapter 315 of the
laws of 2020, is amended to read as follows:
§ 1262-h. Allocation and distribution of net collections from the
additional one percent rate of sales and compensating use taxes in Steu-
ben county. Notwithstanding any provision of law to the contrary, of the
net collections received by the county of Steuben as a result of the
imposition of the additional one percent rate of tax authorized by
section twelve hundred ten of this article [(a) during the period begin-
ning December first, nineteen hundred ninety-three and ending November
thirtieth, nineteen hundred ninety-four, the county of Steuben shall pay
or cause to be paid to the city of Hornell the sum of two hundred thou-
sand dollars, to the city of Corning the sum of three hundred thousand
dollars, and the sum of five hundred thousand dollars to the towns and
villages of the county of Steuben, on the basis of the ratio which the
full valuation of real property in each town or village bears to the
aggregate full valuation of real property in all of the towns and
villages in such area. Of the net collections received by the county of
Steuben as a result of the imposition of said additional one percent
rate of tax authorized by section twelve hundred ten of this article
during the period beginning December first, nineteen hundred ninety-four
and ending November thirtieth, nineteen hundred ninety-five, the county
of Steuben shall pay or cause to be paid to the city of Hornell the sum
of three hundred thousand dollars, to the city of Corning the sum of
four hundred fifty thousand dollars, and the sum of seven hundred fifty
thousand dollars to the towns and villages of the county of Steuben, on
the basis of the ratio which the full valuation of real property in each
S. 4009--A 42 A. 3009--A
town or village bears to the aggregate full valuation of real property
in all of the towns and villages in such area; and (b) during the period
beginning December first, nineteen hundred ninety-five and ending Novem-
ber thirtieth, two thousand seven, the county of Steuben shall annually
pay or cause to be paid to the city of Hornell the sum of five hundred
fifty thousand dollars, to the city of Corning the sum of six hundred
thousand dollars, and the sum of seven hundred fifty thousand dollars to
the towns and villages of the county of Steuben, on the basis of the
ratio which the full valuation of real property in each town or village
bears to the aggregate full valuation of real property in all of the
towns and villages in such area; and during the period beginning Decem-
ber first, two thousand seven and ending November thirtieth, two thou-
sand nine, the county of Steuben shall annually pay or cause to be paid
to the city of Hornell the sum of six hundred ten thousand dollars, to
the city of Corning the sum of six hundred fifty thousand dollars, and
the sum of seven hundred fifty thousand dollars to the towns and
villages of the county of Steuben, on the basis of the ratio which the
full valuation of real property in each town or village bears to the
aggregate full valuation of real property in all of the towns and
villages in such area; and during the period beginning December first,
two thousand nine and ending November thirtieth, two thousand eleven,
the county of Steuben shall annually pay or cause to be paid to the city
of Hornell the sum of seven hundred ten thousand dollars, to the city of
Corning the sum of seven hundred ten thousand dollars, and the sum of
seven hundred fifty thousand dollars to the towns and villages of the
county of Steuben, on the basis of the ratio which the full valuation of
real property in each town or village bears to the aggregate full valu-
ation of real property in all of the towns and villages in such area;
and during the period beginning December first, two thousand eleven and
ending November thirtieth, two thousand thirteen, the county of Steuben
shall annually pay or cause to be paid to the city of Hornell the sum of
seven hundred forty thousand dollars, to the city of Corning the sum of
seven hundred forty thousand dollars, and the sum of seven hundred fifty
thousand dollars to the towns and villages of the county of Steuben, on
the basis of the ratio which the full valuation of real property in each
town or village bears to the aggregate full valuation of real property
in all of the towns and villages in such area; and during the period
beginning December first, two thousand thirteen and ending November
thirtieth, two thousand fifteen, the county of Steuben shall annually
pay or cause to be paid to the city of Hornell the sum of seven hundred
sixty-five thousand dollars, to the city of Corning the sum of seven
hundred sixty-five thousand dollars, and the sum of seven hundred fifty
thousand dollars to the towns and villages of the county of Steuben, on
the basis of the ratio which the full valuation of real property in each
town or village bears to the aggregate full valuation of real property
in all of the towns and villages in such area; and during the period
beginning December first, two thousand fifteen and ending November thir-
tieth, two thousand seventeen, the county of Steuben shall annually pay
or cause to be paid to the city of Hornell the sum of seven hundred
sixty-five thousand dollars, to the city of Corning the sum of seven
hundred sixty-five thousand dollars, and the sum of seven hundred fifty
thousand dollars to the towns and villages of the county of Steuben, on
the basis of the ratio which the full valuation of real property in each
town or village bears to the aggregate full valuation of real property
in all of the towns and villages in such area; and during the period
beginning December first, two thousand seventeen and ending November
S. 4009--A 43 A. 3009--A
thirtieth, two thousand twenty, the county of Steuben shall annually pay
or cause to be paid to the city of Hornell the sum of seven hundred
eighty thousand dollars, to the city of Corning the sum of seven hundred
eighty thousand dollars, and the sum of seven hundred fifty thousand
dollars to the towns and villages of the county of Steuben, on the basis
of the ratio which the full valuation of real property in each town or
village bears to the aggregate full valuation of real property in all of
the towns and villages in such area; and during the] FOR ANY period
beginning ON OR AFTER December first, two thousand twenty [and ending
November thirtieth, two thousand twenty-three], the county of Steuben
shall annually pay or cause to be paid to the city of Hornell the sum of
eight hundred twenty thousand dollars, to the city of Corning the sum of
eight hundred twenty thousand dollars, and the sum of seven hundred
ninety thousand dollars to the towns and villages of the county of Steu-
ben, on the basis of the ratio which the full valuation of real property
in each town or village bears to the aggregate full valuation of real
property in all of the towns and villages in such area.
§ 13. Subdivision (c) of section 1262-j of the tax law, as amended by
section 2 of item TT of subpart C of part XXX of chapter 58 of the laws
of 2020, is amended to read as follows:
(c) Notwithstanding any provision of law to the contrary, of the net
collections received by the county of Suffolk as a result of the
increase of one percent to the tax authorized by section twelve hundred
ten of this article for [the] ANY period beginning OR AFTER June first,
two thousand one [and ending November thirtieth, two thousand twenty-
three], imposed by local laws or resolutions (by simple majority) by the
county legislature, and signed by the county executive, the county of
Suffolk shall allocate such net collections as follows: no less than
one-eighth and no more than three-eighths of such net collections
received shall be dedicated for public safety purposes and the balance
shall be deposited in the general fund of the county of Suffolk.
§ 14. Section 1262-l of the tax law, as amended by section 2 of item
MM of subpart C of part XXX of chapter 58 of the laws of 2020, is
amended to read as follows:
§ 1262-1. Allocation and distribution of net collections from the
additional rate of sales and compensating use tax in Rockland county. 1.
Notwithstanding any provision of law to the contrary, if the county of
Rockland imposes the additional five-eighths of one percent rate of tax
authorized by section twelve hundred ten of this article [during the]
FOR EACH period beginning ON OR AFTER March first, two thousand two,
[and ending November thirtieth, two thousand twenty-three,] such county
shall allocate and distribute twenty percent of the net collections from
such additional rate to the towns and villages in the county in accord-
ance with subdivision (c) of section twelve hundred sixty-two of this
part on the basis of the ratio which the population of each such town or
village bears to such county's total population; and
2. Notwithstanding any provision of law to the contrary, if the county
of Rockland imposes the additional three-eighths of one percent rate of
tax authorized by section twelve hundred ten of this article [during
the] FOR ANY period beginning ON OR AFTER March first, two thousand
seven, [and ending November thirtieth, two thousand twenty-three,] such
county shall allocate and distribute [sixteen and two-thirds] THIRTY-
THREE AND ONE-THIRD percent of the net collections from such additional
rate to the general funds of towns and villages within the county of
Rockland with existing town and village police departments from [March
first, two thousand seven through December thirty-first, two thousand
S. 4009--A 44 A. 3009--A
seven and thirty-three and one-third percent of the net collections from
such additional rate from] January first, two thousand eight [through
November thirtieth, two thousand twenty-three] AND THEREAFTER. The
monies allocated and distributed pursuant to this subdivision shall be
allocated and distributed to towns and villages with police departments
on the basis of the number of full-time equivalent police officers
employed by each police department and shall not be used for salaries
heretofore or hereafter negotiated.
§ 15. Section 1262-n of the tax law, as amended by section 2 of item
CC of subpart C of part XXX of chapter 58 of the laws of 2020, is
amended to read as follows:
§ 1262-n. Disposition of net collections from the additional one
percent rate of sales and compensating use taxes in the county of
Niagara. Notwithstanding any contrary provision of law, if the county
of Niagara imposes the additional one percent rate of sales and compen-
sating use taxes authorized by section twelve hundred ten of this arti-
cle for all or any portion of [the] EACH period beginning ON OR AFTER
March first, two thousand three [and ending November thirtieth, two
thousand twenty-three,] the county shall use all net collections from
such additional one percent rate to pay the county's expenses for Medi-
caid. The net collections from the additional one percent rate imposed
pursuant to this section shall be deposited in a special fund to be
created by such county separate and apart from any other funds and
accounts of the county. Any and all remaining net collections from such
additional one percent tax, after the Medicaid expenses are paid, shall
be deposited by the county of Niagara in the general fund of such county
for any county purpose.
§ 16. Section 1262-o of the tax law, as amended by section 2 of item F
of subpart C of part XXX of chapter 58 of the laws of 2020, is amended
to read as follows:
§ 1262-o. Disposition of net collections from the additional rate of
sales and compensating use taxes in the county of Chautauqua. [Notwith-
standing any contrary provision of law, if the county of Chautauqua
imposes the additional one and one-quarter percent rate of sales and
compensating use taxes authorized by section twelve hundred ten of this
article for all or any portion of the period beginning March first, two
thousand five and ending August thirty-first, two thousand six, the
additional one percent rate authorized by such section for all or any of
the period beginning September first, two thousand six and ending Novem-
ber thirtieth, two thousand seven, the additional three-quarters of one
percent rate authorized by such section for all or any of the period
beginning December first, two thousand seven and ending November thirti-
eth, two thousand ten, the county shall allocate one-fifth of the net
collections from the additional three-quarters of one percent to the
cities, towns and villages in the county on the basis of their respec-
tive populations, determined in accordance with the latest decennial
federal census or special population census taken pursuant to section
twenty of the general municipal law completed and published prior to the
end of the quarter for which the allocation is made, and allocate the
remainder of the net collections from the additional three-quarters of
one percent as follows: (1) to pay the county's expenses for Medicaid
and other expenses required by law; (2) to pay for local road and bridge
projects; (3) for the purposes of capital projects and repaying any
debts incurred for such capital projects in the county of Chautauqua
that are not otherwise paid for by revenue received from the mortgage
recording tax; and (4) for deposit into a reserve fund for bonded
S. 4009--A 45 A. 3009--A
indebtedness established pursuant to the general municipal law. Notwith-
standing any contrary provision of law, if the county of Chautauqua
imposes the additional one-half percent rate of sales and compensating
use taxes authorized by such section twelve hundred ten for all or any
of the period beginning December first, two thousand ten and ending
November thirtieth, two thousand fifteen, the county shall allocate
three-tenths of the net collections from the additional one-half of one
percent to the cities, towns and villages in the county on the basis of
their respective populations, determined in accordance with the latest
decennial federal census or special population census taken pursuant to
section twenty of the general municipal law completed and published
prior to the end of the quarter for which the allocation is made, and
allocate the remainder of the net collections from the additional one-
half of one percent as follows: (1) to pay the county's expenses for
Medicaid and other expenses required by law; (2) to pay for local road
and bridge projects; (3) for the purposes of capital projects and repay-
ing any debts incurred for such capital projects in the county of Chau-
tauqua that are not otherwise paid for by revenue received from the
mortgage recording tax; and (4) for deposit into a reserve fund for
bonded indebtedness established pursuant to the general municipal law.]
Notwithstanding any contrary provision of law, if the county of Chautau-
qua imposes the additional one percent rate of sales and compensating
use taxes authorized by such section twelve hundred ten for all or any
of [the] ANY period beginning ON OR AFTER December first, two thousand
fifteen and [ending November thirtieth, two thousand twenty-three,] the
county shall allocate three-twentieths of the net collections from the
additional one percent to the cities, towns and villages in the county
on the basis of their respective populations, determined in accordance
with the latest decennial federal census or special population census
taken pursuant to section twenty of the general municipal law completed
and published prior to the end of the quarter for which the allocation
is made, and allocate the remainder of the net collections from the
additional one percent as follows: (1) to pay the county's expenses for
Medicaid and other expenses required by law; (2) to pay for local road
and bridge projects; (3) for the purposes of capital projects and repay-
ing any debts incurred for such capital projects in the county of Chau-
tauqua that are not otherwise paid for by revenue received from the
mortgage recording tax; and (4) for deposit into a reserve fund for
bonded indebtedness established pursuant to the general municipal law.
The net collections from the additional rates imposed pursuant to this
section shall be deposited in a special fund to be created by such coun-
ty separate and apart from any other funds and accounts of the county to
be used for purposes above described.
§ 17. Section 1262-p of the tax law, as amended by section 2 of item X
of subpart C of part XXX of chapter 58 of the laws of 2020, is amended
to read as follows:
§ 1262-p. Disposition of net collections from the additional one
percent rate of sales and compensating use taxes in the county of
Livingston. Notwithstanding any contrary provision of law, if the coun-
ty of Livingston imposes the additional one percent rate of sales and
compensating use taxes authorized by section twelve hundred ten of this
article for all or any portion of [the] ANY period beginning ON OR AFTER
June first, two thousand three [and ending November thirtieth, two thou-
sand twenty-three], the county shall use all net collections from such
additional one percent rate to pay the county's expenses for Medicaid.
The net collections from the additional one percent rate imposed pursu-
S. 4009--A 46 A. 3009--A
ant to this section shall be deposited in a special fund to be created
by such county separate and apart from any other funds and accounts of
the county. Any and all remaining net collections from such additional
one percent tax, after the Medicaid expenses are paid, shall be deposit-
ed by the county of Livingston in the general fund of such county for
any county purpose.
§ 18. Subdivision 1 of section 1262-q of the tax law, as amended by
chapter 243 of the laws of 2011, is amended to read as follows:
(1) If the county of Erie imposes the additional one percent rate of
sales and compensating use taxes authorized by [item (i) of clause (4)
of subparagraph (i) of the opening paragraph of] section twelve hundred
ten of this article [during the] FOR ANY period beginning January first,
two thousand seven, or thereafter, the county shall allocate each calen-
dar year the first twelve million five hundred thousand dollars of the
net collections from such one percent rate to the cities of such county
and the area in such county outside its cities to be applied or distrib-
uted in the same manner and proportion as the net collections for such
cities and area are applied or distributed under the revenue distrib-
ution agreement entered into pursuant to the authority of subdivision
(c) of section twelve hundred sixty-two of this part in effect on Janu-
ary first, two thousand six, and subject to all provisions of such
agreement governing the net collections for such cities and area and
shall retain the remainder of such net collections for any county
purpose.
§ 19. Subdivision 2 of section 1262-q of the tax law, as amended by
section 2 of item N of subpart C of part XXX of chapter 58 of the laws
of 2020, is amended to read as follows:
(2) Net collections from the additional three-quarters of one percent
rate of sales and compensating use taxes which the county may impose
[during the period] commencing December first, two thousand eleven, [and
ending November thirtieth, two thousand twenty-three,] pursuant to the
authority of [item (ii) of clause (4) of subparagraph (i) of the opening
paragraph of] section twelve hundred ten of this article shall be used
by the county solely for county purposes and shall not be subject to any
revenue distribution agreement the county entered into pursuant to the
authority of subdivision (c) of section twelve hundred sixty-two of this
part.
§ 20. The opening paragraph of section 1262-r of the tax law, as added
by chapter 37 of the laws of 2006, is amended to read as follows:
(1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF
ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI-
TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO
CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL
THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR
COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO
BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF
SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS
SECTION.
(2) Notwithstanding the provisions of subdivision (c) of section
twelve hundred sixty-two of this part to the contrary, if the cities of
Canandaigua and Geneva in the county of Ontario do not impose sales and
compensating use taxes pursuant to the authority of section twelve
hundred ten of this article and such cities and county enter into an
agreement pursuant to the authority of subdivision (c) of section twelve
S. 4009--A 47 A. 3009--A
hundred sixty-two of this part to be effective March first, two thousand
six, such agreement may provide that:
§ 21. Section 1262-s of the tax law, as amended by section 3 of item U
of subpart C of part XXX of chapter 58 of the laws of 2020, is amended
to read as follows:
§ 1262-s. Disposition of net collections from the additional one-quar-
ter of one percent rate of sales and compensating use taxes in the coun-
ty of Herkimer. Notwithstanding any contrary provision of law, if the
county of Herkimer imposes [the additional] SALES AND COMPENSATING USE
TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of
sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE
AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE AS authorized
by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE
OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all
or any portion of the period beginning December first, two thousand
seven and ending November thirtieth, two thousand twenty-three], the
county shall use all net collections [from such] ATTRIBUTABLE TO THE
additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay
the county's expenses for the construction of additional correctional
facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER
PERCENT OF SUCH additional rate [imposed pursuant to section twelve
hundred ten-E of this article] shall be deposited in a special fund to
be created by such county separate and apart from any other funds and
accounts of the county. Any and all remaining net collections from such
additional tax, after the expenses of such construction are paid, shall
be deposited by the county of Herkimer in the general fund of such coun-
ty for any county purpose.
§ 22. Section 1262-t of the tax law, as added by chapter 67 of the
laws of 2015, is amended to read as follows:
§ 1262-t. City of Yonkers - disposition of net collections from the
additional one-half of one percent rate of sales and compensating use
taxes in the city of Yonkers. Notwithstanding any provision of law to
the contrary, if the city of Yonkers imposes the additional one-half of
one percent rate of sales and compensating use taxes authorized by [item
(b) of clause one of] subparagraph (ii) of the opening paragraph of
section twelve hundred ten of this article, the city shall use the net
collections from such additional one-half of one percent rate solely for
the support of education, unless the city council votes, on an annual
basis, to use such net collections for a different purpose of the city,
provided, however, that the requirements of paragraph b of subdivision
five-b of section two thousand five hundred seventy-six of the education
law are met.
§ 23. The tax law is amended by adding a new section 1262-w to read as
follows:
§ 1262-W. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF
SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY
CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI-
TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED
PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF
SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH
ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET
ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH
NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE-
MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO
THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF
THIS PART.
S. 4009--A 48 A. 3009--A
§ 24. The tax law is amended by adding a new section 1262-x to read as
follows:
§ 1262-X. ALLOCATION AND DISTRIBUTION OF NET COLLECTIONS FROM THE
ADDITIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES IN WEST-
CHESTER COUNTY. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,
IF THE COUNTY OF WESTCHESTER IMPOSES THE ADDITIONAL ONE PERCENT RATE OF
SALES AND COMPENSATING USE TAX AUTHORIZED BY SECTION TWELVE HUNDRED TEN
OF THIS ARTICLE, THE COUNTY SHALL ALLOCATE AND CREDIT OR PAY NET
COLLECTIONS FROM SUCH ADDITIONAL ONE PERCENT RATE WITH RESPECT TO THE
AREA OF THE COUNTY OUTSIDE ANY CITY IMPOSING SALES AND COMPENSATING USE
TAXES AT A RATE OF ONE AND ONE-HALF PERCENT OR GREATER PURSUANT TO THE
AUTHORITY OF SUBDIVISION (A) OR AT ANY RATE PURSUANT TO THE AUTHORITY OF
SUBDIVISION (B) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE AS
FOLLOWS:
(1) SEVENTY PERCENT OF SUCH NET COLLECTIONS SHALL BE RETAINED BY THE
COUNTY TO BE USED FOR ANY COUNTY PURPOSE.
(2) TEN PERCENT OF SUCH NET COLLECTIONS SHALL BE ALLOCATED AND PAID
QUARTERLY BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE SEVERAL
SCHOOL DISTRICTS IN SUCH AREA OF THE COUNTY OUTSIDE ANY SUCH CITY IMPOS-
ING SALES AND COMPENSATING USE TAXES. SUCH ALLOCATION AND PAYMENT, TO
SUCH SEVERAL SCHOOL DISTRICTS, SHALL BE MADE ON THE BASIS OF THE RATIO
WHICH THE POPULATION OF EACH SUCH SCHOOL DISTRICT BEARS TO THE AGGREGATE
POPULATION OF ALL OF THE SCHOOL DISTRICTS IN SUCH AREA. IN THE CASE OF
SCHOOL DISTRICTS WHICH ARE PARTIALLY WITHIN AND PARTIALLY WITHOUT THE
COUNTY, OR PARTIALLY WITHIN OR PARTIALLY WITHOUT THE AREA OF THE COUNTY
OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES, THE ALLOCATION
AND PAYMENT TO EACH SUCH SCHOOL DISTRICT SHALL BE MADE ON THE BASIS OF
THE POPULATION IN SUCH SCHOOL DISTRICT IN THE COUNTY, OR IN SUCH AREA OF
THE COUNTY OUTSIDE A CITY IMPOSING SALES AND COMPENSATING USE TAXES, AS
THE CASE MAY BE. SUCH POPULATIONS SHALL BE DETERMINED IN ACCORDANCE WITH
THE LATEST FEDERAL CENSUS OR SPECIAL POPULATION CENSUS UNDER SECTION
TWENTY OF THE GENERAL MUNICIPAL LAW COMPLETED AND PUBLISHED PRIOR TO THE
END OF THE QUARTER IN WHICH SUCH ALLOCATION AND PAYMENT ARE MADE, WHICH
SPECIAL POPULATION CENSUS SHALL INCLUDE THE ENTIRE AREA OF THE COUNTY;
PROVIDED THAT SUCH SPECIAL POPULATION CENSUS SHALL NOT BE TAKEN MORE
THAN ONCE IN EVERY TWO YEARS. A SCHOOL DISTRICT SPLIT BETWEEN WESTCHES-
TER COUNTY AND ANOTHER COUNTY SHALL APPLY SUCH ALLOCATION AND PAYMENT
SOLELY TO THE BENEFIT OF THE RESIDENTS OF THE COUNTY IN WHICH THE SALES
AND COMPENSATING USE TAXES ARE IMPOSED.
(3) TWENTY PERCENT OF SUCH NET COLLECTIONS SHALL BE ALLOCATED AND PAID
QUARTERLY BY THE COUNTY COMMISSIONER OF FINANCE, IN CASH, TO THE CITIES
NOT IMPOSING SALES AND COMPENSATING USE TAXES AND TO THE TOWNS AND
VILLAGES ON WHICH SUCH RATE IS IMPOSED, ON THE BASIS OF THE RATIO WHICH
THE POPULATION OF EACH SUCH CITY, TOWN OR VILLAGE ON WHICH SUCH RATE IS
IMPOSED BEARS TO THE ENTIRE POPULATION OF ALL SUCH CITIES, TOWNS AND
VILLAGES IN THE AREA ON WHICH SUCH RATE IS IMPOSED. SUCH POPULATIONS
SHALL BE DETERMINED IN ACCORDANCE WITH THE LATEST FEDERAL CENSUS OR
SPECIAL POPULATION CENSUS UNDER SECTION TWENTY OF THE GENERAL MUNICIPAL
LAW COMPLETED AND PUBLISHED PRIOR TO THE END OF THE QUARTER IN WHICH
SUCH ALLOCATION IS MADE, WHICH SPECIAL POPULATION CENSUS SHALL INCLUDE
THE ENTIRE AREA OF THE COUNTY; PROVIDED THAT SUCH SPECIAL POPULATION
CENSUS SHALL NOT BE TAKEN MORE THAN ONCE IN EVERY TWO YEARS.
§ 25. Paragraph 2 of subdivision (c) of section 1261 of the tax law,
as amended by chapter 67 of the laws of 2015, is amended to read as
follows:
S. 4009--A 49 A. 3009--A
(2) However, the taxes, penalties and interest from the additional one
percent rate which the city of Yonkers is authorized to impose pursuant
to [item (a) of clause one of] subparagraph (ii) of the opening para-
graph of section twelve hundred ten of this article, after the comp-
troller has reserved such refund fund and such cost shall be paid to the
special sales and compensating use tax fund for the city of Yonkers
established by section ninety-two-f of the state finance law at the
times set forth in the preceding sentence.
§ 26. The tax law is amended by adding a new section 1265 to read as
follows:
§ 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES.
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY REFERENCE IN
ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDI-
NANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE,
TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY
PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF
SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE
HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF A PART OF
THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE THAT ADDED THIS
SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE
REPEALED BY SECTION FIVE OF SUCH PART SHALL BE DEEMED TO BE A REFERENCE
TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY
PURSUANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF CLAUSE TWO OF
SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF
SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF
SUCH PART OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE.
§ 27. Section 7 of chapter 67 of the laws of 2015, amending the tax
law relating to authorizing the city of Yonkers to impose additional
sales tax, as amended by section 2 of item CCC of subpart C of part XXX
of chapter 58 of the laws of 2020, is amended to read as follows:
§ 7. This act shall take effect immediately [and shall expire and be
deemed repealed November 30, 2023].
§ 28. Section 2 of item R of subpart C of part XXX of chapter 58 of
the laws of 2020 amending the tax law relating to extending the expira-
tion of the authorization to the county of Genesee to impose an addi-
tional one percent of sales and compensating use taxes, is amended to
read as follows:
§ 2. Notwithstanding any other provision of law to the contrary, the
one percent increase in sales and compensating use taxes authorized for
the county of Genesee [until November 30, 2023] pursuant to [clause 20
of subparagraph (i) of the opening paragraph of] section 1210 of the tax
law[, as amended by section one of this act,] shall be divided in the
same manner and proportion as the existing three percent sales and
compensating use taxes in such county are divided.
§ 29. Section 2 of item Z of subpart C of part XXX of chapter 58 of
the laws of 2020 amending the tax law relating to the imposition of
sales and compensating use taxes by the county of Monroe, is amended
to read as follows:
§ 2. Notwithstanding the provisions of subdivisions (b) and (c) of
section 1262 and section 1262-g of the tax law, net collections, as such
term is defined in section 1262 of the tax law, derived from the imposi-
tion of sales and compensating use taxes by the county of Monroe at the
additional rate of one percent as authorized pursuant to [clause (25) of
subparagraph (i) of the opening paragraph of] section 1210 of the tax
law[, as amended by section one of this act,] which are in addition to
the current net collections derived from the imposition of such taxes at
S. 4009--A 50 A. 3009--A
the three percent rate authorized by [the opening paragraph of] section
1210 of the tax law, shall be distributed and allocated as follows: for
[the] ANY period [of] BEGINNING ON OR AFTER December 1, 2020 [through
November 30, 2023] in cash, five percent to the school districts in the
area of the county outside the city of Rochester, three percent to the
towns located within the county, one and one-quarter percent to the
villages located within the county, and ninety and three-quarters
percent to the city of Rochester and county of Monroe. The amount of the
ninety and three-quarters percent to be distributed and allocated to the
city of Rochester and county of Monroe shall be distributed and allo-
cated to each so that the combined total distribution and allocation to
each from the sales tax revenues pursuant to sections 1262 and 1262-g of
the tax law and this section shall result in the same total amount being
distributed and allocated to the city of Rochester and county of Monroe.
The amount so distributed and allocated to the county shall be used for
county purposes. The foregoing cash payments to the school districts
shall be allocated on the basis of the enrolled public school pupils,
thereof, as such term is used in subdivision (b) of section 1262 of the
tax law, residing in the county of Monroe. The cash payments to the
towns located within the county of Monroe shall be allocated on the
basis of the ratio which the population of each town, exclusive of the
population of any village or portion thereof located within a town,
bears to the total population of the towns, exclusive of the population
of the villages located within such towns. The cash payments to the
villages located within the county shall be allocated on the basis of
the ratio which the population of each village bears to the total popu-
lation of the villages located within the county. The term population as
used in this section shall have the same meaning as used in subdivision
(b) of section 1262 of the tax law.
§ 30. Section 4 of item EE of subpart C of part XXX of chapter 58 of
the laws of 2020 amending the tax law relating to extending the authori-
zation of the county of Onondaga to impose an additional rate of sales
and compensating use taxes, is amended to read as follows:
§ 4. Notwithstanding any contrary provision of law, net collections
from the additional one percent rate of sales and compensating use taxes
which may be imposed by the county of Onondaga during [the] ANY period
commencing ON OR AFTER December 1, 2022 [and ending November 30, 2023],
pursuant to the authority of section 1210 of the tax law, shall not be
subject to any revenue distribution agreement entered into under subdi-
vision (c) of section 1262 of the tax law, but shall be allocated and
distributed or paid, at least quarterly, as follows: (i) 1.58% to the
county of Onondaga for any county purpose; (ii) 97.79% to the city of
Syracuse; and (iii) .63% to the school districts in accordance with
subdivision (a) of section 1262 of the tax law.
§ 31. Section 2 of item GG of subpart C of part XXX of chapter 58 of
the laws of 2020 amending the tax law relating to extending the authori-
ty of the county of Orange to impose an additional rate of sales and
compensating use taxes, is amended to read as follows:
§ 2. Notwithstanding subdivision (c) of section 1262 of the tax law,
net collections from any additional rate of sales and compensating use
taxes which may be imposed by the county of Orange [during the] FOR ANY
period commencing ON OR AFTER December 1, 2020, [and ending November 30,
2023,] pursuant to the authority of section 1210 of the tax law, shall
be paid to the county of Orange and shall be used by such county solely
for county purposes and shall not be subject to any revenue distribution
S. 4009--A 51 A. 3009--A
agreement entered into pursuant to the authority of subdivision (c) of
section 1262 of the tax law.
§ 32. Section 3 of item XX of subpart C of part XXX of chapter 58 of
the laws of 2020 amending the tax law relating to extending the authori-
ty of the county of Ulster to impose an additional 1 percent sales and
compensating use tax, is amended to read as follows:
§ 3. If, pursuant to the authority of this act, the county of Ulster
imposes sales and compensating use taxes at a rate greater than three
percent for all or any portion of [the] ANY period commencing ON OR
AFTER September 1, 2002, [and ending November 30, 2023,] net collections
from such additional rate of tax imposed during such period shall be
deemed to be, and shall be included in, net collections subject to such
county's existing agreement with the city of Kingston entered into
pursuant to subdivision (c) of section 1262 of the tax law and such net
collections shall be allocated in accordance with such agreement.
§ 33. This act shall take effect immediately.
PART P
Section 1. Section 1299-C of the tax law is REPEALED.
§ 2. Notwithstanding any provision of law to the contrary, there shall
be no refund of any registration fees paid prior to the effective date
of this act.
§ 3. This act shall take effect immediately.
PART Q
Section 1. Section 285-a of the tax law is amended by adding a new
subdivision 4 to read as follow:
4. UPON EACH SALE OF MOTOR FUEL, OTHER THAN A SALE THAT IS OTHERWISE
EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX IMPOSED
BY THIS ARTICLE TO THE PURCHASER ON EACH GALLON SOLD. IF THE TAXES
IMPOSED BY THIS ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY A
DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
§ 2. Section 285-b of the tax law is amended by adding a new subdivi-
sion 5 to read as follows:
5. UPON EACH SALE OF DIESEL MOTOR FUEL, OTHER THAN A SALE THAT IS
OTHERWISE EXEMPT UNDER THIS ARTICLE, THE DISTRIBUTOR MUST CHARGE THE TAX
IMPOSED BY THIS ARTICLE TO THE PURCHASER ON EACH GALLON SOLD. IF THE
TAXES IMPOSED BY THIS ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY A
DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
§ 3. Section 308 of the tax law is amended by adding a new subdivision
(j) to read as follows:
(J) EVERY PETROLEUM BUSINESS SUBJECT TO TAX UNDER THIS ARTICLE THAT IS
ALSO A DISTRIBUTOR, AS DEFINED IN SECTION TWO HUNDRED EIGHTY-TWO OF THIS
CHAPTER, MUST CHARGE THE TAX IMPOSED BY THIS ARTICLE TO THE PURCHASER ON
EACH GALLON SOLD, UNLESS OTHERWISE EXEMPT. IF THE TAXES IMPOSED BY THIS
ARTICLE HAVE NOT ALREADY BEEN ASSUMED OR PAID BY SUCH PETROLEUM BUSINESS
ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT NOT LIMITED
TO, THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE FLUCTUATION,
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SUCH PETROLEUM BUSINESS MUST REMIT SUCH TAXES TO THE COMMISSIONER ON THE
RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
§ 4. Section 1102 of the tax law is amended by adding a new subdivi-
sion (g) to read as follows:
(G) THE TAX IMPOSED BY THIS SECTION MUST BE CHARGED ON THE SALE, OTHER
THAN A RETAIL SALE OR A SALE THAT IS OTHERWISE EXEMPT UNDER THIS ARTI-
CLE, OF EACH GALLON OF MOTOR FUEL OR DIESEL MOTOR FUEL. IF THE TAXES
IMPOSED BY THIS SECTION HAVE NOT ALREADY BEEN ASSUMED OR PAID BY THE
DISTRIBUTOR ON ANY QUANTITY OF SUCH FUEL FOR ANY REASON, INCLUDING, BUT
NOT LIMITED TO, THE EXPANSION OF SUCH FUEL AS A RESULT OF TEMPERATURE
FLUCTUATION, THE DISTRIBUTOR MUST REMIT SUCH TAXES TO THE COMMISSIONER
ON THE RETURN FOR THE PERIOD IN WHICH SUCH SALE WAS MADE.
§ 5. This act shall take effect on September 1, 2023 and shall apply
to sales of motor fuel and Diesel motor fuel on or after such date.
PART R
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
section 1115 of the tax law, as amended by section 1 of part GG of chap-
ter 59 of the laws of 2022, is amended to read as follows:
(B) Until May [thirty first] THIRTY-FIRST, two thousand [twenty-three]
TWENTY-FOUR, the food and drink excluded from the exemption provided by
clauses (i), (ii) and (iii) of subparagraph (A) of this paragraph, and
bottled water, shall be exempt under this subparagraph: (I) when sold
for one dollar and fifty cents or less through any vending machine OPER-
ATED BY A PARTICIPANT IN THE "BUSINESS ENTERPRISE PROGRAM", AS SUCH TERM
IS DEFINED IN PARAGRAPH TWO OF SUBDIVISION A OF SECTION ELEVEN-A OF
CHAPTER FOUR HUNDRED FIFTEEN OF THE LAWS OF NINETEEN HUNDRED THIRTEEN
that accepts coin or currency only; or (II) when sold for two dollars or
less through any vending machine OPERATED BY SUCH A PARTICIPANT that
accepts any form of payment other than coin or currency, whether or not
it also accepts coin or currency.
§ 2. This act shall take effect June 1, 2023.
PART S
Section 1. Subdivision 1 of section 471 of the tax law, as amended by
section 1 of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
1. There is hereby imposed and shall be paid a tax on all cigarettes
possessed in the state by any person for sale, except that no tax shall
be imposed on cigarettes sold under such circumstances that this state
is without power to impose such tax, including sales to qualified Indi-
ans for their own use and consumption on their nations' or tribes' qual-
ified reservation, or sold to the United States or sold to or by a
voluntary unincorporated organization of the armed forces of the United
States operating a place for the sale of goods pursuant to regulations
promulgated by the appropriate executive agency of the United States, to
the extent provided in such regulations and policy statements of such an
agency applicable to such sales. The tax imposed by this section is
imposed on all cigarettes sold on an Indian reservation to non-members
of the Indian nation or tribe and to non-Indians and evidence of such
tax shall be by means of an affixed cigarette tax stamp. Indian nations
or tribes may elect to participate in the Indian tax exemption coupon
system established in section four hundred seventy-one-e of this article
which provides a mechanism for the collection of the tax imposed by this
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section on cigarette sales on qualified reservations to such non-members
and non-Indians and for the delivery of quantities of tax-exempt ciga-
rettes to Indian nations or tribes for the personal use and consumption
of qualified members of the Indian nation or tribe. If an Indian nation
or tribe does not elect to participate in the Indian tax exemption
coupon system, the prior approval system shall be the mechanism for the
delivery of quantities of tax-exempt cigarettes to Indian nations or
tribes for the personal use and consumption of qualified members of the
Indian nation or tribe as provided for in paragraph (b) of subdivision
five of this section. Such tax on cigarettes shall be at the rate of
[four] FIVE dollars and thirty-five cents for each twenty cigarettes or
fraction thereof, provided, however, that if a package of cigarettes
contains more than twenty cigarettes, the rate of tax on the cigarettes
in such package in excess of twenty shall be one dollar and [eight]
THIRTY-THREE and three-quarters cents for each five cigarettes or frac-
tion thereof. Such tax is intended to be imposed upon only one sale of
the same package of cigarettes. It shall be presumed that all cigarettes
within the state are subject to tax until the contrary is established,
and the burden of proof that any cigarettes are not taxable hereunder
shall be upon the person in possession thereof.
§ 2. Section 471-a of the tax law, as amended by section 5 of part D
of chapter 134 of the laws of 2010, is amended to read as follows:
§ 471-a. Use tax on cigarettes. There is hereby imposed and shall be
paid a tax on all cigarettes used in the state by any person, except
that no tax shall be imposed (1) if the tax provided in section four
hundred seventy-one of this article is paid, (2) on the use of ciga-
rettes which are exempt from the tax imposed by said section, or (3) on
the use of four hundred or less cigarettes, brought into the state on,
or in the possession of, any person. Such tax on cigarettes shall be at
the rate of [four] FIVE dollars and thirty-five cents for each twenty
cigarettes or fraction thereof, provided, however, that if a package of
cigarettes contains more than twenty cigarettes, the rate of tax on the
cigarettes in such package in excess of twenty shall be one dollar and
[eight] THIRTY-THREE and three-quarters cents for each five cigarettes
or fraction thereof. Within twenty-four hours after liability for the
tax accrues, each such person shall file with the commissioner a return
in such form as the commissioner may prescribe together with a remit-
tance of the tax shown to be due thereon. For purposes of this article,
the word "use" means the exercise of any right or power actual or
constructive and shall include but is not limited to the receipt, stor-
age or any keeping or retention for any length of time, but shall not
include possession for sale. All other provisions of this article if not
inconsistent shall apply to the administration and enforcement of the
tax imposed by this section in the same manner as if the language of
said provisions had been incorporated in full into this section.
§ 3. Notwithstanding any other provision of law to the contrary, the
tax due on cigarettes possessed in New York state as of the close of
business on August 31, 2023, by any person for sale solely attributable
to the increase imposed by the amendments to section 471 of the tax law,
as amended by section one of this act, shall be paid by November 20,
2023, subject to such terms and conditions as the commissioner of taxa-
tion and finance shall prescribe.
§ 4. This act shall take effect on September 1, 2023, and shall apply
to all cigarettes possessed in this state by any person for sale and all
cigarettes used in this state by any person on or after such date.
S. 4009--A 54 A. 3009--A
PART T
Section 1. Subdivision 4 of section 474 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
4. (A) At the time of delivering cigarettes to any person each agent
or wholesale dealer, and at the time of delivering tobacco products to
any person each distributor or wholesale dealer of tobacco products,
shall make a true duplicate invoice showing the date of delivery, the
number of packages and number of cigarettes contained therein, in each
shipment of cigarettes delivered, and the items and quantity and whole-
sale price of each item in each shipment of tobacco products delivered,
and the name of the purchaser to whom delivery is made, and shall retain
the same for a period of three years subject to the use and inspection
of the commissioner [of taxation and finance]. Each dealer shall procure
and retain invoices showing the number of packages and number of ciga-
rettes contained therein, in each shipment of cigarettes received by him
OR HER, and the items and quantity and wholesale price of each item in
each shipment of tobacco products received by him OR HER, the date ther-
eof, and the name of the shipper, and shall retain the same for a period
of three years subject to the use and inspection of the commissioner [of
taxation and finance]. The commissioner [of taxation and finance] by
regulation may provide that whenever cigarettes or tobacco products are
shipped into the state, the railroad company, express company, trucking
company or other public carrier transporting any shipment thereof shall
file with the commissioner [of taxation and finance] a copy of the
freight bill within ten days after the delivery in the state of each
shipment. All dealers shall maintain and keep for a period of three
years such other records of cigarettes or tobacco products received,
sold or delivered within the state as may be required by the commission-
er [of taxation and finance]. The commissioner [of taxation and finance]
is hereby authorized to examine the books, papers, invoices and other
records of any person in possession, control or occupancy of any prem-
ises where cigarettes or tobacco products are placed, stored, sold or
offered for sale, and the equipment of any such person pertaining to the
stamping of cigarettes or the sale and delivery of cigarettes or tobacco
products taxable under this article, as well as the stock of cigarettes
or tobacco products in any such premises or vehicle. To verify the accu-
racy of the tax imposed and assessed by this article, each such person
is hereby directed and required to give to the commissioner [of taxation
and finance] or his OR HER duly authorized representatives, the means,
facilities and opportunity for such examinations as are herein provided
for and required.
(B) IF A RETAIL DEALER, OR ITS EMPLOYEES OR AGENTS, REFUSES TO GIVE
THE COMMISSIONER OR HIS OR HER DULY AUTHORIZED REPRESENTATIVES, THE
MEANS, FACILITIES AND OPPORTUNITY FOR SUCH EXAMINATIONS AS ARE REQUIRED
AND PROVIDED FOR BY THIS SECTION: (I) ITS REGISTRATION TO SELL CIGA-
RETTES AND TOBACCO PRODUCTS SHALL BE REVOKED FOR A PERIOD OF ONE YEAR;
(II) FOR A SECOND SUCH FAILURE WITHIN A PERIOD OF THREE YEARS, ITS
REGISTRATION SHALL BE PERMANENTLY REVOKED. IF SUCH RETAIL DEALER DOES
NOT POSSESS A VALID REGISTRATION, EITHER BECAUSE IT FAILED TO OBTAIN A
REGISTRATION OR ITS REGISTRATION IS SUSPENDED OR REVOKED AT THE TIME OF
SUCH REFUSAL, THE RETAIL DEALER SHALL BE SUBJECT TO A PENALTY OF UP TO
FIVE THOUSAND DOLLARS FOR A FIRST REFUSAL AND UP TO TEN THOUSAND DOLLARS
FOR A SECOND REFUSAL WITHIN THREE YEARS.
§ 2. This act shall take effect immediately.
S. 4009--A 55 A. 3009--A
PART U
Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
subdivision (b) of section 1402 of the tax law, as amended by section 1
of item UUU of subpart B of part XXX of chapter 58 of the laws of 2020,
is amended to read as follows:
For purposes of this subdivision, the phrase "real estate investment
trust transfer" shall mean any conveyance of real property or an inter-
est therein to a REIT, or to a partnership or corporation in which a
REIT owns a controlling interest immediately following the conveyance,
which conveyance (I) occurs in connection with the initial formation of
the REIT, provided that the conditions set forth in clauses (i) and (ii)
of this subparagraph are satisfied, or (II) in the case of any real
estate investment trust transfer occurring on or after July thirteenth,
nineteen hundred ninety-six and before September first, two thousand
[twenty-three] TWENTY-SIX, is described in the last sentence of this
subparagraph.
§ 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section
1201 of the tax law, as amended by section 2 of item UUU of subpart B of
part XXX of chapter 58 of the laws of 2020, is amended to read as
follows:
(2) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer, in connection with a trans-
action described in subparagraph one of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (A) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs three and four of this paragraph
are satisfied, or (B) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-three] TWENTY-
SIX, the transaction is described in subparagraph five of this paragraph
in which case the provisions of such subparagraph shall apply.
§ 3. Subparagraph (B) of paragraph 2 of subdivision e of section
11-2102 of the administrative code of the city of New York, as amended
by section 3 of item UUU of subpart B of part XXX of chapter 58 of the
laws of 2020, is amended to read as follows:
(B) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer in connection with a trans-
action described in subparagraph (A) of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (i) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs (C) and (D) of this paragraph are
satisfied, or (ii) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-three] TWENTY-
SIX, the transaction is described in subparagraph (E) of this paragraph
in which case the provision of such subparagraph shall apply.
§ 4. This act shall take effect immediately.
PART V
S. 4009--A 56 A. 3009--A
Section 1. Section 2016 of the tax law, as amended by chapter 401 of
the laws of 1987, is amended to read as follows:
§ 2016. Judicial review. A decision of the tax appeals tribunal, which
is not subject to any further administrative review, shall finally and
irrevocably decide all the issues which were raised in proceedings
before the division of tax appeals upon which such decision is based
unless, within four months after notice of such decision is served by
the tax appeals tribunal upon every party to the proceeding before such
tribunal by certified mail or personal service, the petitioner who
commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
TION for judicial review in the manner provided by article seventy-eight
of the civil practice law and rules, except as otherwise provided in
this [section] CHAPTER. Such service by certified mail shall be
complete upon deposit of such notice, enclosed in a post-paid properly
addressed wrapper, in a post office or official depository under the
exclusive care and custody of the United States postal service. [The]
WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall
designate the tax appeals tribunal and the commissioner [of taxation and
finance] as respondents in the proceeding for judicial review. WHERE
THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION
SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO
COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND-
ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal
shall not participate in proceedings for judicial review of its deci-
sions and such proceedings for judicial review shall be commenced in the
appellate division of the supreme court, third department. In all other
respects the provisions and standards of article seventy-eight of the
civil practice law and rules shall apply. The record to be reviewed in
such proceedings for judicial review shall include the determination of
the administrative law judge, the decision of the tax appeals tribunal,
the stenographic transcript of the hearing before the administrative law
judge, the transcript of any oral proceedings before the tax appeals
tribunal and any exhibit or document submitted into evidence at any
proceeding in the division of tax appeals upon which such decision is
based.
§ 2. This act shall take effect immediately and shall apply to deci-
sions and orders issued by the tax appeals tribunal on or after such
date.
PART W
Section 1. Subdivision 1 of section 105 of the state finance law, as
amended by chapter 204 of the laws of 2002, is amended to read as
follows:
1. All moneys received by the commissioner of taxation and finance on
account of the state, excepting such moneys as are required by law to be
deposited to the credit of the comptroller, but including such moneys as
are thereafter paid into the state treasury by the comptroller, shall be
deposited by the commissioner of taxation and finance within three BUSI-
NESS days after the receipt thereof, either as a demand deposit or an
interest-bearing time deposit (other than a time certificate of depos-
it), as [he] THE COMMISSIONER and the comptroller may determine, in such
banks, trust companies and industrial banks as in [his] THE opinion OF
THE COMMISSIONER and the opinion of the comptroller are secure. The
moneys so deposited shall be placed to the account of the commissioner
S. 4009--A 57 A. 3009--A
of taxation and finance. [He] THE COMMISSIONER shall keep a bankbook in
which shall be entered [his] THEIR account of deposit in and moneys
drawn from the banks and trust companies and industrial banks in which
deposits are made by [him] THE COMMISSIONER, which [he] THEY shall
exhibit to the comptroller for [his] inspection on the first Tuesday of
every month and oftener if required. [He] THE COMMISSIONER shall not
draw any moneys from such banks, trust companies or industrial banks
unless by checks signed and countersigned in the manner prescribed by
section one hundred one, unless otherwise provided by law. No moneys
shall be paid by any such bank, trust company or industrial bank out of
any such deposit except upon such checks. Moneys may be paid through
electronic transfer in accordance with procedures developed by the
commissioner of taxation and finance and the comptroller and consistent
with the requirements of this section for recording payments. Such
payments through electronic transfer shall be considered, for purposes
of this chapter, to be moneys drawn by check. Every such bank, trust
company or industrial bank shall transmit to the comptroller monthly
statements of all moneys received and paid by it on account of the
commissioner of taxation and finance.
§ 2. This act shall take effect immediately.
PART X
Section 1. Legislative findings. The legislature finds that it is in
the interests of the state to assist The New York Racing Association,
Inc., which is the franchised corporation pursuant to section two
hundred six of the racing, pari-mutuel wagering and breeding law, to
renovate Belmont Park racetrack and repurpose the Aqueduct property.
The legislature further finds and determines that the anticipated cost
of renovating Belmont Park racetrack is four hundred fifty-five million
dollars and that the renovation of Belmont Park racetrack shall initial-
ly be financed by the state subject to the provisions of the repayment
agreement of the franchised corporation required by section two of this
act. The franchised corporation will be responsible for repayment of the
state funds in accordance with the terms of such repayment agreement.
§ 2. Prior to, and as a condition to the state initially providing
funds for the renovation of Belmont Park racetrack, the franchised
corporation shall enter into a repayment agreement with the state
authorizing and directing that a portion of the funds of the franchised
corporation dedicated for capital expenditures of the franchised corpo-
ration pursuant to paragraph 3 of subdivision f and paragraph 3 of
subdivision f-1 of section 1612 of the tax law shall be used to repay
the state for the funds provided by the state for the renovation of
Belmont Park racetrack, in accordance with the repayment agreement
between the state and the franchised corporation. Such agreement shall
further provide that in the event the franchised corporation receives
future statutory payments enacted for the specific purpose of holding
the franchised corporation harmless for any loss of payments pursuant to
paragraph 3 of subdivision f and paragraph 3 of subdivision f-1 of
section 1612 of the tax law, such statutory payments shall also be used
to repay the state for the funds provided by the state for the reno-
vation of Belmont Park racetrack. Such agreement may also be amended
from time to time as agreed to by the state and the franchised corpo-
ration. At any time prior to the repayment of the state funds for the
renovation of Belmont Park racetrack, the state may issue state personal
income tax revenue bonds or state sales tax revenue bonds. In the event
S. 4009--A 58 A. 3009--A
of the issuance of such bonds, the repayment agreement shall be revised
to reflect the obligation of the franchised corporation to fully repay
the debt service costs associated with such bonds.
§ 3. Prior to, and as a condition of, the state initially providing
funds for the renovation of Belmont Park racetrack, the franchised
corporation shall also enter into an agreement with the state relin-
quishing to the state its leasehold interest in real property located in
South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
completion of the renovation of Belmont Park racetrack.
§ 4. The New York State Gaming Commission shall ensure that to the
extent that the law allows for a franchise agreement for the operation
of Belmont Park racetrack with a franchisee other than the franchised
corporation, the term of any such franchise agreement awarded after
funding provided by the state for the renovation of Belmont Park race-
track described by section one of this act shall include a provision
obligating such franchisee to assume the payments of the franchised
corporation required by section two of this act.
§ 5. The opening paragraph of paragraph 3 of subdivision f of section
1612 of the tax law is designated subparagraph (i) and a new subpara-
graph (ii) is added to read as follows:
(II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
THE STATE PROVIDES FUNDS TO THE FRANCHISED CORPORATION FOR THE RENO-
VATION OF BELMONT PARK RACETRACK, OUT OF THE AMOUNT PAYABLE TO THE FRAN-
CHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I)
OF THIS PARAGRAPH DURING ANY STATE FISCAL YEAR, AN AMOUNT PURSUANT TO
THE REPAYMENT AGREEMENT BETWEEN THE STATE AND THE FRANCHISED CORPORATION
SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS CAPITAL PROJECTS FUND,
NEW YORK RACING CAPITAL IMPROVEMENT FUND AS REQUIRED TO REPAY THE STATE
FOR FUNDS PROVIDED FOR THE RENOVATION OF BELMONT PARK RACETRACK. ANY
AMOUNT PAYABLE TO THE FRANCHISED CORPORATION IN ANY STATE FISCAL YEAR
FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH
IN EXCESS OF THE AMOUNT PURSUANT TO THE REPAYMENT AGREEMENT BETWEEN
THE STATE AND THE FRANCHISED CORPORATION SHALL BE DEPOSITED PURSUANT TO
SUBPARAGRAPH (I) OF THIS PARAGRAPH. ONCE THE STATE HAS BEEN FULLY REIM-
BURSED FOR THE COSTS RELATED TO THE RENOVATION OF BELMONT PARK RACE-
TRACK, THIS SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
THIS PARAGRAPH SHALL APPLY.
§ 6. The opening paragraph of paragraph 3 of subdivision f-1 of
section 1612 of the tax law is designated subparagraph (i) and a new
subparagraph (ii) is added to read as follows:
(II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE EVENT
THE STATE PROVIDES FUNDS TO THE FRANCHISED CORPORATION FOR THE RENO-
VATION OF BELMONT PARK RACETRACK, AND IN THE EVENT THE AMOUNT DEPOSITED
PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH THREE OF SUBDIVISION F OF
THIS SECTION IS INSUFFICIENT TO MAKE THE REQUIRED REPAYMENT PURSUANT TO
SUCH SUBPARAGRAPH DURING ANY STATE FISCAL YEAR, AN AMOUNT PAYABLE TO THE
FRANCHISED CORPORATION FOR CAPITAL EXPENDITURES PURSUANT TO SUBPARAGRAPH
(I) OF THIS PARAGRAPH SHALL INSTEAD BE DEPOSITED INTO THE MISCELLANEOUS
CAPITAL PROJECTS FUND, NEW YORK RACING CAPITAL IMPROVEMENT FUND TO THE
EXTENT NECESSARY, WHEN COMBINED WITH THE AMOUNT SET FORTH IN SUBPARA-
GRAPH (II) OF PARAGRAPH THREE OF SUBDIVISION F OF THIS SECTION, TO MAKE
ANY REQUIRED REPAYMENT OF FUNDS PROVIDED BY THE STATE RELATED TO THE
RENOVATION OF BELMONT PARK RACETRACK DURING SUCH FISCAL YEAR. ANY AMOUNT
PAYABLE TO THE FRANCHISED CORPORATION IN ANY STATE FISCAL YEAR FOR CAPI-
TAL EXPENDITURES PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH IN
EXCESS OF THE AMOUNT PURSUANT TO THE REPAYMENT AGREEMENT BETWEEN THE
S. 4009--A 59 A. 3009--A
STATE AND THE FRANCHISED CORPORATION SHALL BE DEPOSITED PURSUANT TO
SUBPARAGRAPH (I) OF THIS PARAGRAPH. ONCE THE STATE HAS BEEN FULLY REIM-
BURSED FOR SUCH COSTS RELATED TO THE RENOVATION OF BELMONT PARK RACE-
TRACK, THIS SUBPARAGRAPH SHALL NO LONGER APPLY AND SUBPARAGRAPH (I) OF
THIS PARAGRAPH SHALL APPLY.
§ 7. The state comptroller is hereby authorized and directed to loan
money in accordance with the provisions set forth in subdivision 5 of
section 4 of the state finance law to the miscellaneous capital projects
fund, New York racing capital improvement fund.
§ 8. 1. Notwithstanding any other provisions of law to the contrary,
the dormitory authority, the urban development corporation, and the New
York state thruway authority are hereby authorized to issue personal
income tax revenue bonds or notes or state sales tax revenue bonds or
notes in one or more series in an aggregate principal amount not to
exceed four hundred fifty-five million dollars ($455,000,000) excluding
bonds or notes issued to pay costs of issuance of such bonds or notes
and bonds or notes issued to refund or otherwise repay such bonds or
notes previously issued, for the purpose of financing the renovation of
Belmont Park racetrack.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority, urban development corporation,
and the New York state thruway authority in undertaking the financing
for the renovation of Belmont Park racetrack, the director of the budget
is hereby authorized to enter into one or more financing agreements with
the dormitory authority, the urban development corporation, and the New
York state thruway authority, upon such terms and conditions as the
director of the budget and the dormitory authority, the urban develop-
ment corporation and the New York state thruway authority agree, so as
to annually provide to the dormitory authority, the urban development
corporation, and the New York state thruway authority, in the aggregate,
a sum not to exceed the principal, interest, and related expenses
required for such bonds and notes. Any financing agreement entered into
pursuant to this section shall provide that the obligation of the state
to pay the amount therein provided shall not constitute a debt of the
state within the meaning of any constitutional or statutory provision
and shall be deemed executory only to the extent of monies available and
that no liability shall be incurred by the state beyond the monies
available for such purpose, subject to annual appropriation by the
legislature. Any such contract or any payments made or to be made there-
under may be assigned and pledged by the dormitory authority, the urban
development corporation, and the New York state thruway authority as
security for such bonds and notes, as authorized by this section.
§ 9. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed in each state fiscal year to transfer, upon request of the
director of the budget, up to the unencumbered balance or an amount up
to twenty-five million eight hundred thousand dollars ($25,800,000) from
the miscellaneous capital projects fund, New York racing capital
improvement fund to the general fund.
§ 10. This act shall take effect immediately.
PART Y
Section 1. Paragraph 1 of subdivision a of section 1612 of the tax
law, as amended by chapter 174 of the laws of 2013, is amended to read
as follows:
S. 4009--A 60 A. 3009--A
(1) sixty percent of the total amount for which tickets have been sold
for [a lawful lottery] THE QUICK DRAW game [introduced on or after the
effective date of this paragraph,] subject to [the following provisions:
(A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
(i) if the licensee does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for consump-
tion on the premises, then the premises must have a minimum square
footage greater than two thousand five hundred square feet;
(ii) notwithstanding the foregoing provisions, television equipment
that automatically displays the results of such drawings may be
installed and used without regard to the square footage if such premises
are used as:
(I) a commercial bowling establishment, or
(II) a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;
(B) the] rules for the operation of such game [shall be] as prescribed
by regulations promulgated and adopted by the division[, provided howev-
er, that such rules shall provide that no person under the age of twen-
ty-one may participate in such games on the premises of a licensee who
holds a license issued pursuant to the alcoholic beverage control law to
sell alcoholic beverages for consumption on the premises; and, provided,
further, that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph]; or
§ 2. This act shall take effect immediately.
PART Z
Section 1. The racing, pari-mutuel wagering and breeding law is
amended by adding a new section 502-a to read as follows:
§ 502-A. CLOSURE OF CATSKILL REGIONAL OFF-TRACK BETTING CORPORATION.
1. CATSKILL REGIONAL OFF-TRACK BETTING CORPORATION ESTABLISHED UNDER
SECTION FIVE HUNDRED TWO OF THIS ARTICLE IS TERMINATED, SUBJECT TO THE
SATISFACTION OF OUTSTANDING DEBTS AND OBLIGATIONS AND DISTRIBUTION OF
ANY REMAINING ASSETS, AS SET FORTH IN THIS SECTION.
2. CATSKILL REGIONAL OFF-TRACK BETTING CORPORATION SHALL CONTINUE IN
ITS EXISTENCE SOLELY FOR THE PURPOSE OF SATISFYING ALL OUTSTANDING DEBTS
AND OBLIGATIONS AND DISTRIBUTION OF ANY REMAINING ASSETS, TAKING INTO
ACCOUNT THE PRIORITY REQUIREMENTS OF SUBDIVISION TWO OF SECTION FIVE
HUNDRED SIX AND SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF THIS
ARTICLE. SUCH CORPORATION SHALL SUBMIT A LIST OF ALL OUTSTANDING DEBTS
AND OBLIGATIONS TO THE COMMISSION AND A PLAN PROPOSING THE ORDER IN
WHICH SUCH DEBTS AND OBLIGATIONS SHALL BE SATISFIED. THE COMMISSION
SHALL APPROVE OR MODIFY SUCH PLAN. ONCE ALL DEBTS AND OBLIGATIONS ARE
SATISFIED OR ALL AVAILABLE FUNDS HAVE BEEN EXHAUSTED, AND ANY REMAINING
ASSETS ARE DISTRIBUTED, SUCH CORPORATION SHALL BE TERMINATED FOR ALL
PURPOSES. SUCH CORPORATION MAY USE THE FOLLOWING TO SATISFY ITS EXIST-
ING DEBTS AND OBLIGATIONS:
(A) IN ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE HUNDRED NINE
OF THIS ARTICLE, ANY REMAINING MONEY IN SUCH CORPORATION'S CAPITAL
RESERVE FUND, AFTER USE OF SUCH FUNDS FOR PAYMENT OF THE PRINCIPAL OF
BONDS, INTEREST ON SUCH BONDS AND THE PAYMENT OF ANY REDEMPTION PREMIUM
REQUIRED, AS SET FORTH IN SUCH SECTION; AND
(B) IN ACCORDANCE WITH SUBDIVISION FOUR OF SECTION FIVE HUNDRED NINE-A
OF THIS ARTICLE, FUNDS FROM ITS CAPITAL ACQUISITION FUND.
S. 4009--A 61 A. 3009--A
§ 2. Paragraph c of subdivision 1 of section 509 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 243 of the laws
of 2020, is amended and a new subdivision 4 is added, to read as
follows:
c. Any other moneys that may be made available to the corporation for
the purpose of such capital reserve fund from any other source or sourc-
es. All moneys held in the capital reserve fund, except as [hereinafter]
provided IN THIS PARAGRAPH AND IN SUBDIVISION FOUR OF THIS SECTION,
shall be used solely for the payment of the principal of bonds of the
corporation, the payment of interest on such bonds, or the payment of
any redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that moneys in such capital
reserve fund shall not be withdrawn therefrom at any time in such amount
as would reduce the amount of such fund to less than the maximum amount
of principal and interest maturing and becoming due in any succeeding
fiscal year of the corporation on all bonds of the corporation then
outstanding, except for the purpose of paying principal of and interest
on such bonds of the corporation maturing and becoming due and for the
payment of which other moneys of the corporation are not available. Any
income or interest earned by, or increment to, the capital reserve fund
due to the investment thereof may be transferred to other funds or
accounts to the extent it does not reduce the amount of the capital
reserve fund below the maximum amount of principal and interest maturing
and becoming due in any such succeeding fiscal year on all bonds of the
corporation then outstanding.
4. UPON THE TERMINATION OF CATSKILL REGIONAL OFF-TRACK BETTING CORPO-
RATION PURSUANT TO SECTION FIVE HUNDRED TWO-A OF THIS ARTICLE, THE
REMAINDER OF THE CORPORATION'S CAPITAL RESERVE FUND, AFTER SUCH FUNDS
ARE USED FOR THE PURPOSES SET FORTH IN PARAGRAPH C OF SUBDIVISION ONE OF
THIS SECTION, SHALL BE USED TO PAY OTHER OBLIGATIONS, DEBTS AND LIABIL-
ITIES OF THE CORPORATION PURSUANT TO THE COMMISSION-APPROVED PLAN
DESCRIBED IN SUBDIVISION TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTI-
CLE.
§ 3. Section 509-a of the racing, pari-mutuel wagering and breeding
law is amended by adding a new subdivision 4 to read as follows:
4. AS OF APRIL FIRST, TWO THOUSAND TWENTY-THREE, CATSKILL REGIONAL
OFF-TRACK BETTING CORPORATION MAY USE ANY REMAINING MONEY IN ITS CAPITAL
ACQUISITION FUND TO PAY OFF ANY OUTSTANDING DEBTS AND OBLIGATIONS IN
ACCORDANCE WITH THE COMMISSION-APPROVED PLAN DESCRIBED IN SUBDIVISION
TWO OF SECTION FIVE HUNDRED TWO-A OF THIS ARTICLE. THE USE OF SUCH MONEY
SHALL BE SUBJECT TO THE APPROVAL OF THE COMMISSION AND SHALL NOT BE USED
TO PAY THE WAGES AND BENEFITS OF EMPLOYEES OF SUCH CORPORATION UNTIL ALL
OTHER DEBTS AND OBLIGATIONS HAVE BEEN SATISFIED. ANY MONEY REMAINING IN
THE FUND AFTER SUCH DEBTS AND OBLIGATIONS HAVE BEEN PAID UPON TERMI-
NATION OF SUCH CORPORATION SHALL BE DISTRIBUTED TO THE COUNTIES IN
ACCORDANCE WITH LAW.
§ 4. Section 521 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 9 to read as follows:
9. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRA-
RY, A COUNTY FOR WHOSE BENEFIT CATSKILL REGIONAL OFF-TRACK BETTING
CORPORATION HAD BEEN ESTABLISHED MAY ENTER INTO AN AGREEMENT WITH AN
EXISTING OFF-TRACK BETTING CORPORATION FROM A DIFFERENT REGION TO
PROVIDE THE SERVICES AUTHORIZED UNDER THIS ARTICLE WITHIN SUCH COUNTY.
§ 5. This act shall take effect immediately.
PART AA
S. 4009--A 62 A. 3009--A
Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part DD of chapter
59 of the laws of 2022, is amended to read as follows:
2. a. Notwithstanding any other provision of law or regulation to the
contrary, from April nineteenth, two thousand twenty-one to March thir-
ty-first, two thousand twenty-two, twenty-three percent of the funds,
not to exceed two and one-half million dollars, in the Catskill off-
track betting corporation's capital acquisition fund and twenty-three
percent of the funds, not to exceed four hundred forty thousand dollars,
in the Capital off-track betting corporation's capital acquisition fund
established pursuant to this section shall also be available to such
off-track betting corporation for the purposes of statutory obligations,
payroll, and expenditures necessary to accept authorized wagers.
b. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-two to March thirty-
first, two thousand twenty-three, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and twenty-three percent of the funds, not to exceed four
hundred forty thousand dollars, in the Capital off-track betting corpo-
ration's capital acquisition fund established pursuant to this section,
shall be available to such off-track betting corporations for the
purposes of statutory obligations, payroll, and expenditures necessary
to accept authorized wagers.
c. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-THREE TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-FOUR, TWENTY-THREE PERCENT OF THE FUNDS, NOT
TO EXCEED FOUR HUNDRED FORTY THOUSAND DOLLARS, IN THE CAPITAL OFF-TRACK
BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSUANT TO
THIS SECTION, SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING CORPORATION
FOR THE PURPOSES OF STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDITURES
NECESSARY TO ACCEPT AUTHORIZED WAGERS.
D. Prior to a corporation being able to utilize the funds authorized
by [paragraph] PARAGRAPHS b AND C of this subdivision, the corporation
must submit an expenditure plan to the gaming commission for review.
Such plan shall include the corporation's outstanding liabilities,
projected revenue for the upcoming year, a detailed explanation of how
the funds will be used, and any other information determined necessary
by the commission. Upon review, the commission will make a determination
as to whether access to the funds is needed and warranted.
§ 2. This act shall take effect immediately.
PART BB
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part EE of chapter 59 of the laws of 2022, is amended to read as
follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
S. 4009--A 63 A. 3009--A
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [twenty-three] TWENTY-FOUR; provided, however,
that any party to such agreement may elect to terminate such agreement
upon conveying written notice to all other parties of such agreement at
least forty-five days prior to the effective date of the termination,
via registered mail. Any party to an agreement receiving such notice of
an intent to terminate, may request the commission to mediate between
the parties new terms and conditions in a replacement agreement between
the parties as will permit continuation of an in-home experiment until
June thirtieth, two thousand [twenty-three] TWENTY-FOUR; and (iv) no
in-home simulcasting in the thoroughbred special betting district shall
occur without the approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part EE of chapter 59 of the laws of 2022, is amended to
read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twenty-three] TWENTY-FOUR, the amount used
exclusively for purses to be awarded at races conducted by such receiv-
ing track shall be computed as follows: of the sums so retained, two and
S. 4009--A 64 A. 3009--A
one-half percent of the total pools. Such amount shall be increased or
decreased in the amount of fifty percent of the difference in total
commissions determined by comparing the total commissions available
after July twenty-first, nineteen hundred ninety-five to the total
commissions that would have been available to such track prior to July
twenty-first, nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part EE of chapter 59 of the laws of 2022, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twenty-three] TWENTY-FOUR and on any day
regardless of whether or not a franchised corporation is conducting a
race meeting in Saratoga county at Saratoga thoroughbred racetrack after
June thirtieth, two thousand [twenty-three] TWENTY-FOUR. On any day on
which a franchised corporation has not scheduled a racing program but a
thoroughbred racing corporation located within the state is conducting
racing, each off-track betting corporation branch office and each simul-
casting facility licensed in accordance with section one thousand seven
(that has entered into a written agreement with such facility's repre-
sentative horsemen's organization, as approved by the commission), one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks located in another state or foreign country subject to the
following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part EE of chapter 59 of
the laws of 2022, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twenty-three] TWENTY-FOUR. This section shall
supersede all inconsistent provisions of this chapter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of part EE of chapter 59 of the laws of 2022, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twenty-three] TWENTY-FOUR. Every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven that have entered
into a written agreement with such facility's representative horsemen's
organization as approved by the commission, one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
S. 4009--A 65 A. 3009--A
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part EE of chapter
59 of the laws of 2022, is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two thou-
sand [twenty-two] TWENTY-THREE, when a franchised corporation is
conducting a race meeting within the state at Saratoga Race Course,
every off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
has entered into a written agreement with such facility's representative
horsemen's organization as approved by the commission), one thousand
eight or one thousand nine of this article shall be authorized to accept
wagers and display the live simulcast signal from thoroughbred tracks
located in another state, provided that such facility shall accept
wagers on races run at all in-state thoroughbred tracks which are
conducting racing programs subject to the following provisions;
provided, however, no such written agreement shall be required of a
franchised corporation licensed in accordance with section one thousand
seven of this article.
§ 7. Section 32 of chapter 281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part EE of chapter 59 of the
laws of 2022, is amended to read as follows:
§ 32. This act shall take effect immediately and the pari-mutuel tax
reductions in section six of this act shall expire and be deemed
repealed on July 1, [2023] 2024; provided, however, that nothing
contained herein shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any provision of law amended by any
section of this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
§ 8. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of part EE of chapter 59 of the laws of 2022, is amended to read as
follows:
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2023] 2024; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
§ 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part
EE of chapter 59 of the laws of 2022, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
S. 4009--A 66 A. 3009--A
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent of the total deposits in pools resulting from on-track super
exotic bets, plus the breaks. The retention rate to be established is
subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five percent
of regular bets and four percent of multiple bets plus twenty percent of
the breaks; for exotic wagers seven and one-half percent plus twenty
percent of the breaks, and for super exotic bets seven and one-half
percent plus fifty percent of the breaks.
For the period April first, two thousand one through December thirty-
first, two thousand [twenty-three] TWENTY-FOUR, such tax on all wagers
shall be one and six-tenths percent, plus, in each such period, twenty
percent of the breaks. Payment to the New York state thoroughbred breed-
ing and development fund by such franchised corporation shall be one-
half of one percent of total daily on-track pari-mutuel pools resulting
from regular, multiple and exotic bets and three percent of super exotic
bets and for the period April first, two thousand one through December
thirty-first, two thousand [twenty-three] TWENTY-FOUR, such payment
shall be seven-tenths of one percent of regular, multiple and exotic
pools.
§ 10. This act shall take effect immediately.
PART CC
Section 1. Subdivision 1-A of section 208 of the tax law, as amended
by section 4 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1-A. The term "New York S corporation" means, with respect to any
taxable year, a FEDERAL S corporation [subject to tax under this article
for which an election is in effect pursuant to] REQUIRED TO FILE AS A
NEW YORK S CORPORATION PURSUANT TO subsection (a) of section six hundred
sixty of this chapter for such year, AND any such year shall be denomi-
nated a "New York S year", [and such election shall be denominated a
S. 4009--A 67 A. 3009--A
"New York S election"] UNLESS THE CORPORATION IS TREATED AS A NEW YORK C
CORPORATION FOR SUCH YEAR UNDER SUBSECTION (B) OF SECTION SIX HUNDRED
SIXTY OF THIS CHAPTER. The term "New York C corporation" means, with
respect to any taxable year, a corporation subject to tax under this
article which is not a New York S corporation, and any such year shall
be denominated a "New York C year". The term "termination year" means
any taxable year of a corporation during which the CORPORATION'S STATUS
AS A New York S [election] CORPORATION terminates on a day other than
the first day of such year. The portion of the taxable year ending
before the first day for which such termination is effective shall be
denominated the "S short year", and the portion of such year beginning
on such first day shall be denominated the "C short year". [The term
"New York S termination year" means any termination year which is not
also an S termination year for federal purposes.]
§ 2. Subdivision 1-B of section 208 of the tax law, as amended by
section 4 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1-B. The term "QSSS" means a corporation which is a qualified subchap-
ter S subsidiary as defined in subparagraph (B) of paragraph three of
subsection (b) of section thirteen hundred sixty-one of the internal
revenue code. [The term "exempt QSSS" means a QSSS exempt from tax under
this article as provided in paragraph (k) of subdivision nine of this
section, or a QSSS described in subclause (i) of clause (B) of subpara-
graph two of paragraph (k) of subdivision nine of this section, wherein
the parent corporation of the QSSS is subject to tax under this article,
and the assets, liabilities, income and deductions of the QSSS are
treated as the assets, liabilities, income and deductions of the parent
corporation. Where a QSSS is an exempt QSSS, then for all purposes under
this article] WHEN THE PARENT CORPORATION OF THE QSSS IS A NEW YORK S
CORPORATION:
(a) the assets, liabilities, income, deductions, property, payroll,
receipts, capital, credits, and all other tax attributes and elements of
economic activity of the QSSS shall be deemed to be those of the parent
corporation,
(b) the stocks, bonds and other securities issued by, and any indebt-
edness from, the QSSS shall not be investment or business capital of the
parent corporation,
(c) transactions between the parent corporation and the QSSS, includ-
ing the payment of interest and dividends, shall not be taken into
account, [and]
(d) general executive officers of the QSSS shall be deemed to be
general executive officers of the parent corporation, AND
(E) THE QSSS SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE.
§ 3. Paragraph (k) of subdivision 9 of section 208 of the tax law, as
amended by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(k) QSSS. (1) [New York S corporation. In the case of a New York S
corporation which is the parent of a qualified subchapter S subsidiary
(QSSS) with respect to a taxable year:
(A) where the QSSS is not an excluded corporation,
(i) in determining the entire net income of such parent corporation,
all assets, liabilities, income and deductions of the QSSS shall be
treated as assets, liabilities, income and deductions of the parent
corporation, and
(ii) the QSSS shall be exempt from all taxes imposed by this article,
and
S. 4009--A 68 A. 3009--A
(B) where the QSSS is an excluded corporation, the entire net income
of the parent corporation shall be determined as if the federal QSSS
election had not been made.
(2)] New York C corporation. In the case of a FEDERAL S CORPORATION
THAT IS A New York C corporation [which is] UNDER SUBSECTION (B) OF
SECTION SIX HUNDRED SIXTY OF THIS CHAPTER AND IS the parent of a QSSS
with respect to a taxable year:
(A) where the QSSS is a taxpayer,
(i) in determining the entire net income of such parent corporation,
all assets, liabilities, income and deductions of the QSSS shall be
treated as assets, liabilities, income and deductions of the parent
corporation, and
(ii) the QSSS shall be exempt from all taxes imposed by this article,
and
(B) where the QSSS is not a taxpayer,
(i) if the QSSS is not an excluded corporation, the parent corporation
may make a QSSS inclusion election to include all assets, liabilities,
income and deductions of the QSSS as assets, liabilities, income and
deductions of the parent corporation, and
(ii) in the absence of such election, or where the QSSS is an excluded
corporation, the entire net income of the parent corporation shall be
determined as if the federal QSSS election had not been made.
[(3) Non-New York S corporation not excluded. In the case of an S
corporation which is not a taxpayer and not an excluded corporation, and
which is the parent of a QSSS which is a taxpayer, the shareholders of
the parent corporation shall be entitled to make the New York S election
under subsection (a) of section six hundred sixty of this chapter.
(A) For any taxable year for which such election is in effect, the
parent corporation shall be subject to tax under this article as a New
York S corporation, and the provisions of clause (A) of subparagraph one
of this paragraph shall apply.
(B) For any taxable year for which such election is not in effect, the
QSSS shall be a New York C corporation, and the entire net income of the
QSSS shall be determined as if the federal QSSS election had not been
made. For purposes of such determination, the taxable year of the parent
corporation shall constitute the taxable year of the QSSS, excluding,
however, any portion of such year during which the QSSS is not a taxpay-
er.
(4) S corporation excluded. In the case of an S corporation which is
an excluded corporation and which is the parent of a QSSS which is a
taxpayer, the QSSS shall be a New York C corporation and the provisions
of clause (B) of subparagraph three of this paragraph shall apply.
(5)] (2) Excluded corporation. The term "excluded corporation" means a
corporation subject to tax under sections one hundred eighty-three
through one hundred eighty-six, inclusive, or article thirty-three of
this chapter, or a foreign corporation not taxable by this state which,
if it were taxable, would be subject to tax under any of such sections
or article.
[(6)] (3) Taxpayer. For purposes of this paragraph, the term "taxpay-
er" means a parent corporation or QSSS subject to tax under this arti-
cle, determined without regard to the provisions of this paragraph.
[(7)] (4) QSSS inclusion election. The election under subclause (i) of
clause (B) of subparagraph [two] ONE of this paragraph shall be effec-
tive for the taxable year for which made and for all succeeding taxable
years of the corporation until such election is terminated. An election
S. 4009--A 69 A. 3009--A
or termination shall be made on such form and in such manner as the
commissioner may prescribe by regulation or instruction.
§ 4. Subparagraph (A) of paragraph 5 of subdivision (a) of section 292
of the tax law, as added by section 48 of part A of chapter 389 of the
laws of 1997, is amended to read as follows:
(A) In the case of a shareholder of an S corporation, (i) [where the
election provided for in] EXCEPT FOR WHEN SUCH S CORPORATION IS TREATED
AS A NEW YORK C CORPORATION UNDER subsection [(a)] (B) of section six
hundred sixty of this chapter [is in effect with respect to such corpo-
ration], there shall be added to federal unrelated business taxable
income an amount equal to the shareholder's pro rata share of the corpo-
ration's reductions for taxes described in paragraphs two and three of
subsection (f) of section thirteen hundred sixty-six of the internal
revenue code, and (ii) where such [election has not been made with
respect to such corporation] S CORPORATION IS TREATED AS A NEW YORK C
CORPORATION UNDER SUBSECTION (B) OF SECTION SIX HUNDRED SIXTY OF THIS
CHAPTER, there shall be subtracted from federal unrelated business taxa-
ble income any items of income of the corporation included therein, and
there shall be added to federal unrelated business taxable income any
items of loss or deduction included therein, and (iii) in the case of [a
New York] AN S termination year, the amount of any such items of S
corporation income, loss, deduction and reductions for taxes shall be
adjusted in the manner provided in paragraph two or three of subsection
(s) of section six hundred twelve of this chapter.
§ 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as
amended by chapter 606 of the laws of 1984, subparagraph (A) as amended
by chapter 28 of the laws of 1987 and subparagraph (B) as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(18) In the case of a shareholder of an S corporation AS DESCRIBED IN
SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY OF THIS ARTICLE:
(A) [where the election provided for in subsection (a) of section six
hundred sixty is in effect with respect to such corporation,] an amount
equal to [his] SUCH SHAREHOLDER'S pro rata share of the corporation's
reductions for taxes described in paragraphs two and three of subsection
(f) of section thirteen hundred sixty-six of the internal revenue code,
and
(B) in the case of [a New York] AN S termination year, subparagraph
(A) of this paragraph shall apply to the amount of reductions for taxes
determined under subsection (s) of this section.
§ 6. Paragraph 19 of subsection (b) of section 612 of the tax law, as
amended by chapter 606 of the laws of 1984, subparagraph (A) as amended
by chapter 28 of the laws of 1987 and subparagraph (B) as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(19) In the case of a shareholder of an S corporation (A) where [the
election provided for in] SUCH S CORPORATION IS TREATED AS A NEW YORK C
CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
not been made with respect to such corporation] OF THIS ARTICLE, any
item of loss or deduction of the corporation included in federal gross
income pursuant to section thirteen hundred sixty-six of the internal
revenue code, and (B) in the case of [a New York] AN S termination year,
subparagraph (A) of this paragraph shall apply to the amounts of loss or
deduction determined under subsection (s) of this section.
§ 7. Paragraph 20 of subsection (b) of section 612 of the tax law, as
amended by chapter 606 of the laws of 1984, is amended to read as
follows:
S. 4009--A 70 A. 3009--A
(20) S corporation distributions to the extent not included in federal
gross income for the taxable year because of the application of section
thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
seventy-one or subsection (c) of section thirteen hundred seventy-nine
of the internal revenue code which represent income not previously
subject to tax under this article (A) FOR TAX YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, because the election provided
for in subsection (a) of section six hundred sixty OF THIS ARTICLE had
not been made, OR (B) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-FOUR, BECAUSE THE S CORPORATION FILED A RETURN UNDER
ARTICLE NINE-A OF THIS CHAPTER PURSUANT TO SUBSECTION (B) OF SECTION SIX
HUNDRED SIXTY OF THIS ARTICLE. Any such distribution treated in the
manner described in paragraph two of subsection (b) of section thirteen
hundred sixty-eight of the internal revenue code for federal income tax
purposes shall be treated as ordinary income for purposes of this arti-
cle.
§ 8. Paragraph 22 of subsection (c) of section 612 of the tax law, as
amended by chapter 606 of the laws of 1984, subparagraph (A) as amended
by chapter 28 of the laws of 1987 and subparagraph (B) as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(22) In the case of a shareholder of an S corporation (A) where [the
election provided for in] SUCH S CORPORATION IS TREATED AS A NEW YORK C
CORPORATION UNDER subsection [(a)] (B) of section six hundred sixty [has
not been made with respect to such corporation] OF THIS ARTICLE, any
item of income of the corporation included in federal gross income
pursuant to section thirteen hundred sixty-six of the internal revenue
code, and
(B) in the case of [a New York] AN S termination year, subparagraph
(A) of this paragraph shall apply to the amounts of income determined
under subsection (s) of this section.
§ 9. The section heading and paragraph 1 of subsection (s) of section
612 of the tax law, as amended by chapter 760 of the laws of 1992, is
amended to read as follows:
(s) [New York] S termination year. (1) General. In the case of [a New
York] AN S termination year, the amount of any item of S corporation
income, loss and deduction included in the shareholder's federal
adjusted gross income and any reductions for taxes (as described in
paragraphs two and three of subsection (f) of section thirteen hundred
sixty-six of the internal revenue code) shall be adjusted in accordance
with the treatment provided in paragraph two or three of this
subsection.
§ 10. Paragraph 6 of subsection (c) of section 615 of the tax law, as
added by chapter 606 of the laws of 1984, subparagraph (B) as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(6) in the case of a shareholder of an S corporation
(A) where [the election provided for in] SUCH S CORPORATION IS TREATED
AS A NEW YORK C CORPORATION UNDER subsection [(a)] (B) of section six
hundred sixty [has not been made] OF THIS ARTICLE, S corporation items
of deduction included in federal itemized deductions, and
(B) in the case of [a New York] AN S termination year, [the portion of
such items assigned to the period beginning on the day the election
ceases to be effective, as] THE MODIFICATION UNDER SUBPARAGRAPH (A) OF
THIS PARAGRAPH SHALL BE determined under subsection (s) of section six
hundred twelve OF THIS PART.
S. 4009--A 71 A. 3009--A
§ 11. Subparagraph (C) of paragraph 1 of subsection (b) of section 631
of the tax law, as amended by chapter 586 of the laws of 1999, is
amended to read as follows:
(C) in the case of a shareholder of an S corporation [where the
election provided for in] SUBJECT TO subsection (a) of section six
hundred sixty of this article [is in effect], the ownership of shares
issued by such corporation, to the extent determined under section six
hundred thirty-two of this [article] PART; or
§ 12. Subparagraph (E-1) of paragraph 1 of subsection (b) of section
631 of the tax law, as added by section 3 of part C of chapter 57 of the
laws of 2010, is amended to read as follows:
(E-1) in the case of an S corporation [for which an election is in
effect pursuant] SUBJECT to subsection (a) of section six hundred sixty
of this article that terminates its taxable status in New York, any
income or gain recognized on the receipt of payments from an installment
sale contract entered into when the S corporation was subject to tax in
New York, allocated in a manner consistent with the applicable methods
and rules for [allocation] APPORTIONMENT under article nine-A or FORMER
ARTICLE thirty-two of this chapter, in the year that the S corporation
sold its assets.
§ 13. The section heading and paragraph 2 of subsection (a) of section
632 of the tax law, the section heading as amended by chapter 606 of the
laws of 1984, and paragraph 2 of subsection (a) as amended by section 71
of part A of chapter 59 of the laws of 2014, are amended to read as
follows:
Nonresident partners and [electing] shareholders of S corporations.
(2) In determining New York source income of a nonresident shareholder
of [an] A NEW YORK S corporation [where the election provided for in
subsection (a) of section six hundred sixty] AS DEFINED IN SUBDIVISION
ONE-A OF SECTION TWO HUNDRED EIGHT of [this article is in effect] THIS
CHAPTER, there shall be included only the portion derived from or
connected with New York sources of such shareholder's pro rata share of
items of S corporation income, loss and deduction entering into [his]
SUCH SHAREHOLDER'S federal adjusted gross income, increased by
reductions for taxes described in paragraphs two and three of subsection
(f) of section thirteen hundred sixty-six of the internal revenue code,
as such portion shall be determined under regulations of the commission-
er consistent with the applicable methods and rules for [allocation]
APPORTIONMENT under article nine-A of this chapter[, regardless of
whether or not such item or reduction is included in entire net income
under article nine-A for the tax year]. If a nonresident is a sharehold-
er in [an] A NEW YORK S corporation [where the election provided for in
subsection (a) of section six hundred sixty] AS DEFINED IN SUBDIVISION
ONE-A OF SECTION TWO HUNDRED EIGHT of [this article is in effect] THIS
CHAPTER, and the S corporation has distributed an installment obligation
under section 453(h)(1)(A) of the Internal Revenue Code, then any gain
recognized on the receipt of payments from the installment obligation
for federal income tax purposes will be treated as New York source
income allocated in a manner consistent with the applicable methods and
rules for [allocation] APPORTIONMENT under article nine-A of this chap-
ter in the year that the assets were sold. In addition, if the share-
holders of the S corporation have made an election under section
338(h)(10) of the Internal Revenue Code, then any gain recognized on the
deemed asset sale for federal income tax purposes will be treated as New
York source income allocated in a manner consistent with the applicable
methods and rules for [allocation] APPORTIONMENT under article nine-A of
S. 4009--A 72 A. 3009--A
this chapter in the year that the shareholder made the section
338(h)(10) election. For purposes of a section 338(h)(10) election, when
a nonresident shareholder exchanges his or her S corporation stock as
part of the deemed liquidation, any gain or loss recognized shall be
treated as the disposition of an intangible asset and will not increase
or offset any gain recognized on the deemed assets sale as a result of
the section 338(h)(10) election.
§ 14. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection
(c) of section 658 of the tax law, paragraph 2 as amended by chapter 190
of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by
section 72 of part A of chapter 59 of the laws of 2014, are amended to
read as follows:
(2) S corporations. Every S corporation [for which the election
provided for in subsection (a) of section six hundred sixty is in
effect] TREATED AS A NEW YORK S CORPORATION AS DEFINED IN SUBDIVISION
ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER shall make a return
for the taxable year setting forth all items of income, loss and
deduction and such other pertinent information as the commissioner of
taxation and finance may by regulations and instructions prescribe. Such
return shall be filed on or before the fifteenth day of the third month
following the close of each taxable year.
(A) General. Every entity which is a partnership, other than a public-
ly traded partnership as defined in section 7704 of the federal Internal
Revenue Code, subchapter K limited liability company or [an] A NEW YORK
S corporation [for which the election provided for in subsection (a) of
section six hundred sixty of this part is in effect] AS DEFINED IN
SUBDIVISION ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, which
has partners, members or shareholders who are nonresident individuals,
as defined under subsection (b) of section six hundred five of this
article, or C corporations, and which has any income derived from New
York sources, determined in accordance with the applicable rules of
section six hundred thirty-one of this article as in the case of a
nonresident individual, shall pay estimated tax on such income on behalf
of such partners, members or shareholders in the manner and at the times
prescribed by subsection (c) of section six hundred eighty-five of this
article. For purposes of this paragraph, the term "estimated tax" shall
mean a partner's, member's or shareholder's distributive share or pro
rata share of the entity income derived from New York sources, multi-
plied by the highest rate of tax prescribed by section six hundred one
of this article for the taxable year of any partner, member or share-
holder who is an individual taxpayer, or paragraph (a) of subdivision
one of section two hundred ten of this chapter for the taxable year of
any partner, member or shareholder which is a C corporation, whether or
not such C corporation is subject to tax under article nine, nine-A or
thirty-three of this chapter, and reduced by the distributive share or
pro rata share of any credits determined under section one hundred
eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen
hundred eleven of this chapter, whichever is applicable, derived from
the entity.
§ 15. Section 660 of the tax law, as amended by chapter 606 of the
laws of 1984, subsections (a) and (h) as amended by section 73 of part A
of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as
amended by section 51, paragraphs 4 and 5 of subsection (b) as added and
paragraph 6 of subsection (b) as renumbered by section 52 and
subsections (e) and (f) as added and subsection (g) as relettered by
section 53 of part A of chapter 389 of the laws of 1997, subsection (d)
S. 4009--A 73 A. 3009--A
as added by chapter 760 of the laws of 1992, subsection (i) as added by
section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of
subsection (i) as amended by section 39 of part T of chapter 59 of the
laws of 2015, is amended to read as follows:
§ 660. [Election by shareholders of S corporations] TAX TREATMENT OF
FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an eligible
S corporation, EXCEPT FOR ELIGIBLE S CORPORATIONS TREATED AS NEW YORK C
CORPORATIONS UNDER SUBSECTION (B) OF THIS SECTION, the shareholders of
the corporation [may elect in the manner set forth in subsection (b) of
this section to] SHALL take into account, to the extent provided for in
this article (or in article thirteen of this chapter, in the case of a
shareholder which is a taxpayer under such article), the S corporation
items of income, loss, deduction and reductions for taxes described in
paragraphs two and three of subsection (f) of section thirteen hundred
sixty-six of the internal revenue code which are taken into account for
federal income tax purposes for the taxable year. [No election under
this subsection shall be effective unless all shareholders of the corpo-
ration have so elected.] An eligible S corporation is (i) [an S] A
corporation [which] THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL
INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF
THE INTERNAL REVENUE CODE THAT is subject to tax under article nine-A of
this chapter, or (ii) [an S] A corporation [which] THAT HAS ELECTED TO
BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION
THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE THAT IS NOT
SUBJECT TO TAX UNDER ARTICLE NINE-A OF THIS CHAPTER, OR AN EXCLUDED
CORPORATION, AND is the parent of a qualified subchapter S subsidiary AS
DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF
SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject
to tax under article nine-A[, where the shareholders of such parent
corporation are entitled to make the election under this subsection by
reason of subparagraph three of paragraph (k) of subdivision nine of
section two hundred eight] of this chapter. EXCEPT AS PROVIDED IN
SUBSECTION (B) OF THIS SECTION, AN ELIGIBLE S CORPORATION IS A NEW YORK
S CORPORATION.
(b) [Requirements of election] TREATMENT OF QUALIFIED NEW YORK
MANUFACTURERS AS NEW YORK C CORPORATIONS. [An election] AN ELIGIBLE S
CORPORATION THAT MEETS THE REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARA-
GRAPH (A) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER
TO BE A QUALIFIED NEW YORK MANUFACTURER MAY BE TREATED AS A NEW YORK C
CORPORATION SUBJECT TO TAX UNDER ARTICLE NINE-A OF THIS CHAPTER. TREAT-
MENT under THIS subsection [(a) of this section] AS A NEW YORK C CORPO-
RATION shall be made on such form and in such manner as the [tax commis-
sion] COMMISSIONER may prescribe by regulation or instruction.
(1) [When made] TIMING. [An election] TO BE TREATED under THIS
subsection [(a) of this section may be made at any time during the
preceding taxable year of the corporation or at any time during the
taxable year of the corporation and on or before the fifteenth day of
the third month of such taxable year.
(2) Certain elections made during first two and one-half months. If an
election made under subsection (a) of this section is made for any taxa-
ble year of the corporation during such year and on or before the
fifteenth day of the third month of such year, such election shall be
treated as made for the following taxable year if
(A) on one or more days in such taxable year before the day on which
the election was made the corporation did not meet the requirements of
S. 4009--A 74 A. 3009--A
subsection (b) of section thirteen hundred sixty-one of the internal
revenue code or
(B) one or more of the shareholders who held stock in the corporation
during such taxable year and before the election was made did not
consent to the election.
(3) Elections made after first two and one-half months. If an election
under subsection (a) of this section is made for any taxable year of the
corporation and such election is made after the fifteenth day of the
third month of such taxable year and on or before the fifteenth day of
the third month of the following taxable year, such election shall be
treated as made for the following taxable year.
(4) Taxable years of two and one-half months or less. For purposes of
this subsection, an election for a taxable year made not later than two
months and fifteen days after the first day of the taxable year shall be
treated as timely made during such year.
(5) Authority to treat late elections, etc., as timely. If (A) an
election under subsection (a) of this section is made for any taxable
year (determined without regard to paragraph three of this subsection)
after the date prescribed by this subsection for making such election
for such taxable year, or if no such election is made for any taxable
year, and
(B) the commissioner determines that there was reasonable cause for
failure to timely make such election, then
(C) the commissioner may treat such an election as timely made for
such taxable year (and paragraph three of this subsection shall not
apply).
(6) Years for which effective. An election under subsection (a) of
this section shall be effective for the taxable year of the corporation
for which it is made and for all succeeding taxable years of the corpo-
ration until such election is terminated under subsection (c) of this
section.] AS A NEW YORK C CORPORATION FOR A TAXABLE YEAR, THE CORPO-
RATION SHALL FILE A REPORT AS A NEW YORK C CORPORATION UNDER ARTICLE
NINE-A OF THIS CHAPTER FOR SUCH YEAR. SUCH TREATMENT SHALL BE EFFECTIVE
AS OF THE FIRST DAY OF THE TAXABLE YEAR COVERED BY SUCH REPORT.
(c) Termination. [An election] (1) TREATMENT OF A FEDERAL S CORPO-
RATION AS A NEW YORK S CORPORATION UNDER SUBSECTION (A) OF THIS SECTION,
AND TREATMENT OF A FEDERAL S CORPORATION AS A NEW YORK C CORPORATION
under subsection [(a)] (B) of this section shall cease to be effective
[(1)] on the day an election to be an S corporation ceases to be
effective for federal income tax purposes pursuant to subsection (d) of
section thirteen hundred sixty-two of the internal revenue code[, or
(2) if shareholders holding more than one-half of the shares of stock
of the corporation on the day on which the revocation is made revoke
such election in the manner the tax commission may prescribe by regu-
lation,
(A) on the first day of the taxable year of the corporation, if the
revocation is made during such taxable year and on or before the
fifteenth day of the third month thereof, or
(B) on the first day of the following taxable year of the corporation,
if the revocation is made during the taxable year but after the
fifteenth day of the third month thereof, or
(C) on and after the date so specified, if the revocation specifies a
date for revocation which is on or after the day on which the revocation
is made, or
(3) if any person who was not a shareholder of the corporation on the
day on which the election is made becomes a shareholder in the corpo-
S. 4009--A 75 A. 3009--A
ration and affirmatively refuses to consent to such election in the
manner the tax commission may prescribe by regulation, on the day such
person becomes a shareholder] AND, IN SUCH CASE, THE CORPORATION SHALL
BE TREATED AS A NEW YORK C CORPORATION SUBJECT TO TAX UNDER ARTICLE
NINE-A OF THIS CHAPTER.
(2) TREATMENT OF A FEDERAL S CORPORATION AS A NEW YORK C CORPORATION
UNDER SUBSECTION (B) OF THIS SECTION SHALL CEASE TO BE EFFECTIVE IF THE
CORPORATION NO LONGER MEETS THE REQUIREMENTS TO BE CONSIDERED A QUALI-
FIED NEW YORK MANUFACTURER UNDER SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER FOR THE TAXA-
BLE YEAR, AND IN SUCH CASE THE CORPORATION SHALL BE TREATED AS A NEW
YORK S CORPORATION SUBJECT TO SUBSECTION (A) OF THIS SECTION.
(d) [New York] S termination year. In the case of [a New York] AN S
termination year, the amount of any item of S corporation income, loss
and deduction and reductions for taxes (as described in paragraphs two
and three of subsection (f) of section thirteen hundred sixty-six of the
internal revenue code) required to be taken account of under this arti-
cle shall be adjusted in the same manner that the S corporation's items
which are included in the shareholder's federal adjusted gross income
are adjusted under subsection (s) of section six hundred twelve.
(e) [Inadvertent invalid elections. If (1) an election under
subsection (a) of this section was not effective for the taxable year
for which made (determined without regard to paragraph two of subsection
(b) of this section) by reason of a failure to obtain shareholder
consents,
(2) the commissioner determines that the circumstances resulting in
such ineffectiveness were inadvertent,
(3) no later than a reasonable period of time after discovery of the
circumstances resulting in such ineffectiveness, steps were taken to
acquire the required shareholder consents, and
(4) the corporation, and each person who was a shareholder in the
corporation at any time during the period specified pursuant to this
subsection, agrees to make such adjustments (consistent with the treat-
ment of the corporation as a New York S corporation) as may be required
by the commissioner with respect to such period,
(5) then, notwithstanding the circumstances resulting in such ineffec-
tiveness, such corporation shall be treated as a New York S corporation
during the period specified by the commissioner.] QUALIFIED SUBCHAPTER S
SUBSIDIARIES ("QSSS"). IF A NEW YORK S CORPORATION HAS ELECTED TO TREAT
ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S SUBSIDIARY FOR
FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF SUBSECTION (B) OF
SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE, SUCH
ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES, AND
(1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL,
RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE
PARENT CORPORATION,
(2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY,
INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
ACCOUNT, AND
(3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
(f) Validated federal elections. If [(1) an election under subsection
(a) of this section was made for a taxable year or years of a corpo-
ration, which years occur with or within the period for which] the
federal S election of [such] AN ELIGIBLE S corporation has been vali-
S. 4009--A 76 A. 3009--A
dated pursuant to the provisions of subsection (f) of section thirteen
hundred sixty-two of the internal revenue code, [and
(2) the corporation, and each person who was a shareholder in the
corporation at any time during such taxable year or years agrees to make
such adjustments (consistent with the treatment of the corporation as a
New York S corporation) as may be required by the commissioner with
respect to such year or years,
(3) then] such corporation shall be treated as a New York S corpo-
ration, SUBJECT TO SUBSECTION (A) OF THIS SECTION, during [such] THE
year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED EXCEPT IF THE
ELIGIBLE S CORPORATION IS TREATED AS A NEW YORK C CORPORATION UNDER
SUBSECTION (B) OF THIS SECTION.
(g) [Transitional rule. Any election made under this section (as in
effect for taxable years beginning before January first, nineteen
hundred eighty-three) shall be treated as an election made under
subsection (a) of this section.
(h) Cross reference. For definitions relating to S corporations, see
subdivision one-A of section two hundred eight of this chapter.
(i) Mandated New York S corporation election. (1) Notwithstanding the
provisions in subsection (a) of this section, in the case of an eligible
S corporation for which the election under subsection (a) of this
section is not in effect for the current taxable year, the shareholders
of an eligible S corporation are deemed to have made that election
effective for the eligible S corporation's entire current taxable year,
if the eligible S corporation's investment income for the current taxa-
ble year is more than fifty percent of its federal gross income for such
year. In determining whether an eligible S corporation is deemed to have
made that election, the income of a qualified subchapter S subsidiary
owned directly or indirectly by the eligible S corporation shall be
included with the income of the eligible S corporation.
(2) For the purposes of this subsection, the term "eligible S corpo-
ration" has the same definition as in subsection (a) of this section.
(3) For the purposes of this subsection, the term "investment income"
means the sum of an eligible S corporation's gross income from interest,
dividends, royalties, annuities, rents and gains derived from dealings
in property, including the corporation's share of such items from a
partnership, estate or trust, to the extent such items would be includa-
ble in federal gross income for the taxable year.
(4)] RULES RELATED TO CHANGE IN STATUS. (1) NET OPERATING LOSSES. ANY
NET OPERATING LOSS CARRYFORWARD THAT OTHERWISE WOULD HAVE BEEN ALLOWED
UNDER SUBPARAGRAPH (IX) OF PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION
TWO HUNDRED TEN OF THIS CHAPTER FOR A NEW YORK C CORPORATION THAT
BECOMES A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE AND BE AVAIL-
ABLE TO SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW YORK C CORPO-
RATION BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS TERMINATED
OR BY OPERATION OF SUBSECTION (B) OF THIS SECTION. HOWEVER, THE TAXPAY-
ER'S YEARS AS A NEW YORK S CORPORATION SHALL BE COUNTED FOR PURPOSES OF
COMPUTING ANY TIME PERIOD APPLICABLE TO THE ALLOWANCE OF ANY NET OPERAT-
ING LOSS.
(2) CREDIT CARRYFORWARDS. ANY CARRYFORWARDS OF CREDITS ALLOWED UNDER
SECTION TWO HUNDRED TEN-B OF THIS CHAPTER FOR A NEW YORK C CORPORATION
THAT BECOMES A NEW YORK S CORPORATION SHALL BE HELD IN ABEYANCE AND BE
AVAILABLE TO SUCH TAXPAYER IF SUCH TAXPAYER IS TREATED AS A NEW YORK C
CORPORATION BECAUSE ITS ELECTION TO BE A FEDERAL S CORPORATION IS TERMI-
NATED OR BY OPERATION OF SUBSECTION (B) OF THIS SECTION. HOWEVER, THE
TAXPAYER'S YEARS AS A NEW YORK S CORPORATION SHALL BE COUNTED FOR
S. 4009--A 77 A. 3009--A
PURPOSES OF COMPUTING ANY TIME PERIOD APPLICABLE TO THE ALLOWANCE OF ANY
CREDIT CARRYFORWARD.
(3) Estimated tax payments. When making estimated tax payments
required to be made under this chapter in the current tax year, the
eligible S corporation and its shareholders may rely on the eligible S
corporation's filing status for the prior year. If the eligible S corpo-
ration's filing status changes from the prior tax year the corporation
or the shareholders, as the case may be, which made the payments shall
be entitled to a refund of such estimated tax payments. No additions to
tax with respect to any required declarations or payments of estimated
tax imposed under this chapter shall be imposed on the corporation or
shareholders, whichever is the taxpayer for the current taxable year, if
the corporation or the shareholders file such declarations and make such
estimated tax payments by January fifteenth of the following calendar
year, regardless of whether the taxpayer's tax year is a calendar or a
fiscal year.
(H) EXCLUDED CORPORATION. FOR PURPOSES OF THIS SECTION AN EXCLUDED
CORPORATION SHALL BE AS DEFINED IN PARAGRAPH (K) OF SUBDIVISION NINE OF
SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
§ 16. Transition rules. Any prior net operating loss conversion
subtraction that otherwise would have been allowed under subparagraph
(viii) of paragraph (a) of subdivision one of section two hundred ten of
the tax law for the taxable years beginning on or after January 1, 2024,
to any taxpayer that was a New York C corporation for a taxable year
beginning on or after January 1, 2023, and before January 1, 2024, and
that becomes a New York S corporation for a taxable year beginning on or
after January 1, 2024, as a result of the amendments made by this act,
shall be held in abeyance and be available to such taxpayer if such
taxpayer is treated as a New York C corporation because its election to
be a federal S corporation is terminated or by operation of subsection
(b) of section six hundred sixty of the tax law. However, the taxpay-
er's years as a New York S corporation shall be counted for purposes of
computing the twenty-year time period specified in subclause four of
clause (B) of subparagraph (viii) of paragraph (a) of subdivision one of
section two hundred ten of the tax law applicable to the allowance of
the prior net operating loss conversion subtraction.
§ 17. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2024.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through CC of this act shall be
as specifically set forth in the last section of such Parts.