§ 699. Transition provisions. For purposes of implementation of
changes in tax rate and in amounts of taxable income subject to each
rate applicable to any taxable year (whether or not such taxable year is
a taxable year of twelve months) beginning in nineteen hundred
ninety-five and nineteen hundred ninety-six, under subsections (a), (b)
or (c) of section six hundred one, the tax is imposed and determined for
each such taxable year in accordance with the following provisions:

(1) Taxable years beginning in nineteen hundred ninety-six. Paragraph
two of subsections (a), (b) and (c) of section six hundred one, relating
to imposition of the income tax for taxable years beginning in nineteen
hundred ninety-six, establishes a new tax rate schedule effective on the
first day of the taxpayer's taxable year, except that the highest rate
of tax of seven percent shall not take effect until the first day of the
fourth month of the taxpayer's taxable year beginning in nineteen
hundred ninety-six. For purposes of implementation of the tax for
taxable years beginning in nineteen hundred ninety-six, the highest rate
of tax in each tax rate schedule shall be administered for the entire
taxable year at the rate of 7.125 percent on New York taxable income in
excess of (A) twenty-six thousand dollars in the case of married
individuals filing joint returns and surviving spouses, (B) seventeen
thousand dollars in the case of heads of households and (C) thirteen
thousand dollars in the case of unmarried individuals, married
individuals filing separate returns and estates and trusts.

(2) Taxable years beginning in nineteen hundred ninety-five. Paragraph
three of subsections (a), (b) and (c) of section six hundred one,
relating to imposition of the income tax for taxable years beginning in
nineteen hundred ninety-five, establishes a new tax rate schedule
effective on the first day of the taxpayer's taxable year, except that
the highest rate of tax of seven and one-half percent shall not take
effect until the first day of the fourth month of the taxpayer's taxable
year beginning in nineteen hundred ninety-five. For purposes of
implementation of the tax, the highest rate of tax in each tax rate
schedule shall be administered for the entire taxable year at the rate
of 7.59375 percent on New York taxable income (A) in excess of
twenty-five thousand dollars in the case of married individuals filing
joint returns and surviving spouses, (B) in excess of nineteen thousand
dollars in the case of heads of households and (C) in excess of twelve
thousand five hundred dollars in the case of unmarried individuals,
married individuals filing separate returns and estates and trusts.