§ 4. Taxable years to which tax applies; tax for taxable years
beginning prior to and ending after July first, nineteen hundred
sixty-six.-- (a) General.--The tax imposed by section two, with any
modification permitted by subdivision (b) of this section, is imposed
for each taxable year beginning with taxable years ending after July
first, nineteen hundred sixty-six and prior to January first, nineteen
hundred seventy-six and each taxable year beginning in nineteen hundred
seventy-five and ending in nineteen hundred seventy-six.

(b) Alternate methods for determining tax for taxable years ending on
or after July first, nineteen hundred sixty-six and on or before June
thirtieth, nineteen hundred sixty-seven. -- (1) The tax for any taxable
year ending on or after July first, nineteen hundred sixty-six and on or
before June thirtieth, nineteen hundred sixty-seven shall be the same
part of the tax which would have been imposed had section two been in
effect for the entire taxable year as the number of months (or major
portions thereof) of the taxable year occurring after July first,
nineteen hundred sixty-six is of the number of months (or major portions
thereof) in the taxable year. The credit allowed against such tax as
provided by section twenty shall be reduced by a fraction the numerator
of which is equal to the number of months (or major portions thereof) in
such taxable year which occurred before July first, nineteen hundred
sixty-six and the denominator of which is equal to the number of months
(or major portions thereof) in such taxable year.

(2) In lieu of the method of computation of tax prescribed in
paragraph (1), if the taxpayer maintains adequate records for any
taxable year ending on or after July first, nineteen hundred sixty-six
and on or before June thirtieth, nineteen hundred sixty-seven, the tax
for such taxable year, at the election of the taxpayer, may be computed
on the basis of the city taxable income which the taxpayer would have
reported had he filed a return under this local law for the period
(referred to in this paragraph as "short period") beginning July first,
nineteen hundred sixty-six and ending with the last day of the
taxpayer's taxable year. If a return for a period of less than twelve
months is made under this paragraph (2), the city taxable income for
such short period shall be placed on an annual basis by multiplying such
income by twelve and dividing the result by the number of months in the
short period. In determining city taxable income under this paragraph
(2), the city personal exemptions provided by section sixteen, shall be
reduced to amounts that bear the same ratio to the full exemptions, as
the number of months in the short period bears to twelve. The credit
allowed against such tax as provided by section twenty shall be reduced
by a fraction the numerator of which is equal to the number of months
(or major portions thereof) in such taxable year which occurred before
July first, nineteen hundred sixty-six and the denominator of which is
equal to the number of months (or major portions thereof) in such
taxable year. The tax shall be the same part of the tax computed on the
annual basis as the number of months in the short period is of twelve
months. Except as provided in this paragraph (2), the tax for such
period ending on or before June thirtieth, nineteen hundred sixty-seven,
shall be computed in accordance with the other provisions of this local
law.