Bill - 2003-04 Revenue
STATE OF NEW YORK
________________________________________________________________________
S. 1410 A. 2110
SENATE - ASSEMBLY
January 29, 2003
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means
AN ACT to amend chapter 298 of the laws of 1985, amending the tax law
relating to the franchise tax on banking corporations imposed by the
tax law, authorized to be imposed by any city having a population of
one million or more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and relating to other
provisions of the tax law, chapter 883 of the laws of 1975 and the
administrative code of the city of New York which relates to such
franchise tax, to amend chapter 817 of the laws of 1987, amending the
tax law and the environmental conservation law, constituting the busi-
ness tax reform and rate reduction act of 1987, and to amend chapter
525 of the laws of 1988, amending the tax law and the administrative
code of the city of New York relating to the imposition of taxes in
the city of New York, in relation to the effectiveness of certain
provisions of such chapters; and to amend the tax law, in relation to
permitting certain banking corporations otherwise subject to tax under
article 32 of the tax law to make an election to be taxed under arti-
cle 9-A of such law; and to amend the administrative code of the city
of New York, in relation to permitting certain banking corporations
otherwise subject to tax under subchapter 3 of chapter 6 of title 11
of the administrative code of the city of New York to be taxed under
subchapter 2 of such code (Part A); to amend the tax law, in relation
to simplifying the tax on insurance corporations to eliminate the tax
on such corporations based on income, capital or subsidiary capital;
to repeal various sections of article 33 of the tax law relating ther-
eto; to amend the tax law, in relation to the tax on insurance corpo-
rations based on income, capital or subsidiary capital; to repeal
subparagraph 15 of paragraph (a) of subdivision 9 of section 208 of
the tax law relating to the determination of entire net income of an
attorney-in-fact for a mutual insurance company which is an inter-
insurer or reciprocal insurer; and to amend the insurance law, in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12114-01-3
S. 1410 2 A. 2110
relation to annuities and providing for the repeal of such provisions
of the insurance law upon expiration thereof (Part B); to amend the
tax law, in relation to exemptions from sales and compensating use
taxes for certain clothing and footwear (Part C); to amend the tax
law, in relation to certain fees imposed on limited liability compa-
nies and limited liability partnerships (Part D); to amend the real
property tax law, in relation to providing refunds of real property
taxes paid by qualified empire zone enterprises and to amend the tax
law, in relation to the credit for real property taxes provided to
qualified empire zone enterprises (Part E); to amend the tax law, in
relation to establishing income modifications for certain deductions
claimed with respect to sport utility vehicles (Part F); to amend the
tax law, in relation to payments of estimated tax by partnerships,
limited liability companies, and S corporations on behalf of certain
partners, members and shareholders (Part G); to amend the tax law and
the parks, recreation and historic preservation law, in relation to
providing a credit against income tax for the rehabilitation of
historic homes or for the purchase of rehabilitated historic homes in
certain instances (Part H); to amend the tax law, in relation to
establishing certified capital company program four to encourage
investments in high technology companies through state supported
research centers (Part I); and to amend the tax law, in relation to
enhancing the provisions relating to the operation of video terminals
at race tracks; and to amend chapter 383 of the laws of 2001 amending
the tax law relating to authorizing the division of the lottery to
conduct a pilot program involving the operation of video lottery
terminals at certain race tracks, in relation to eliminating the expi-
ration of and making permanent certain provisions thereof (Part J)
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2003-2004
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through J. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
14 tax law relating to the franchise tax on banking corporations imposed by
15 the tax law, authorized to be imposed by any city having a population of
16 one million or more by chapter 772 of the laws of 1966 and imposed by
17 the administrative code of the city of New York and relating to other
18 provisions of the tax law, chapter 883 of the laws of 1975 and the
19 administrative code of the city of New York which relates to such fran-
20 chise tax, as amended by section 1 of part P of chapter 383 of the laws
21 of 2001, is amended to read as follows:
S. 1410 3 A. 2110
1 § 51. This act shall take effect immediately and shall apply to taxa-
2 ble years beginning on or after January 1, 1985[, except that:
3 (a) sections one through eight shall not apply to taxable years begin-
4 ning on or after January 1, 2003;
5 (b) sections nine, twelve, the amendment made to paragraph 9 of
6 subsection (a) of section 1452 of the tax law by section thirteen,
7 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
8 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
9 of subdivision (a) of section 11-640 of the administrative code of the
10 city of New York by section thirty-three, sections thirty-five, thirty-
11 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
12 corporations other than savings banks and savings and loan associations
13 for taxable years beginning on or after January 1, 2003;
14 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
15 forty-two shall not apply to corporations other than savings banks and
16 savings and loan associations for taxable years beginning on or after
17 January 1, 2003, provided, however, that the provisions of such sections
18 which relate to the alternative minimum tax measured by taxable assets
19 shall continue to apply to all taxpayers for taxable years beginning on
20 or after January 1, 2003;
21 (d) the amendment to the section heading and the opening paragraph of
22 section 11-643.3 of the administrative code of the city of New York made
23 by section forty-three shall not apply to corporations other than
24 savings banks and savings and loan associations for taxable years begin-
25 ning on or after January 1, 2003 with respect to those provisions of
26 such section 11-643.3 which relate to the basic tax measured by entire
27 net income; and
28 (e) section twenty-eight, and the addition of new section 11-643.5 of
29 the administrative code of the city of New York made by section forty-
30 four shall not apply to corporations other than savings banks and
31 savings and loan associations for taxable years beginning on or after
32 January 1, 2003, provided, however, that the provisions of such sections
33 which relate to the alternative minimum taxes measured by assets, issued
34 capital stock and one hundred twenty-five dollars shall continue to
35 apply to all taxpayers for taxable years beginning on or after January
36 1, 2003].
37 § 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
38 laws of 1987, amending the tax law and the environmental conservation
39 law, constituting the business tax reform and rate reduction act of
40 1987, as amended by section 2 of part P of chapter 383 of the laws of
41 2001, are amended to read as follows:
42 (d) The provisions of section sixty-seven except insofar as it amends
43 paragraph 10 of subsection (b) of section 1453 of the tax law, seventy-
44 one and seventy-four shall apply to taxable years beginning after Decem-
45 ber 31, 1986[, provided, however, that new paragraphs 11 and 12 of
46 subsection (b) of section 1453 of the tax law as added by section
47 sixty-seven of this act, the amendments made by section seventy-one of
48 this act, and new subsection (i) of section 1453 of the tax law as added
49 by section seventy-four of this act shall not apply to taxable years
50 beginning on or after January 1, 2003];
51 (f) The provisions of section one hundred four of this act shall apply
52 to taxable years beginning after December 31, 1986[, and shall not apply
53 to corporations other than savings banks and savings and loan associ-
54 ations for taxable years beginning on or after January 1, 2003,
55 provided, however, that the provisions of such section which relate to
56 the alternative minimum tax measured by taxable assets shall continue to
S. 1410 4 A. 2110
1 apply to all taxpayers for taxable years beginning on or after January
2 1, 2003].
3 § 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
4 of 1988, amending the tax law and the administrative code of the city of
5 New York relating to the imposition of taxes in the city of New York, as
6 amended by section 3 of part P of chapter 383 of the laws of 2001, are
7 amended to read as follows:
8 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
9 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
10 and forty-eight shall apply to taxable years beginning after December
11 31, 1986[, provided, however, that the amendments made by sections thir-
12 ty-six and forty-one of this act, and new subdivision (i) of section
13 11-641 of the administrative code of the city of New York as added by
14 section forty-four of this act shall not apply to taxable years begin-
15 ning on or after January 1, 2003];
16 (d) The provisions of section forty-six shall apply to taxable years
17 beginning after December 31, 1986[, and shall not apply to corporations
18 other than savings banks and savings and loan associations for taxable
19 years beginning on or after January 1, 2003, provided, however, that the
20 provisions of such section which relate to the alternative minimum tax
21 measured by taxable assets shall continue to apply to all taxpayers for
22 taxable years beginning on or after January 1, 2003];
23 § 4. Section 1452 of the tax law is amended by adding a new subsection
24 (j) to read as follows:
25 (j) Transitional provisions relating to the enactment and implementa-
26 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
27 to the contrary contained in this section, a corporation that was in
28 existence before January first, two thousand three and was subject to
29 tax under article nine-A of this chapter for its last taxable year
30 beginning before January first, two thousand three, shall continue to be
31 taxable under article nine-A for all taxable years beginning on or after
32 January first, two thousand three and before January first, two thousand
33 four. The preceding sentence shall not apply to any taxable year during
34 which such corporation is a banking corporation described in paragraphs
35 one through eight of subsection (a) of this section. Notwithstanding
36 anything to the contrary contained in this section, a banking corpo-
37 ration that was in existence before January first, two thousand three
38 and was subject to tax under this article for its last taxable year
39 beginning before January first, two thousand three, shall continue to be
40 taxable under this article for all taxable years beginning on or after
41 January first, two thousand three and before January first, two thousand
42 four. Provided, however, that nothing in this subsection shall prohibit
43 a corporation that elected pursuant to subsection (d) of this section to
44 be taxable under article nine-A of this chapter from revoking that
45 election in accordance with such subsection (d).
46 For purposes of this paragraph, a corporation shall be considered to
47 be subject to tax under article nine-A of this chapter for a taxable
48 year if such corporation was not a taxpayer but was properly included in
49 a combined report filed pursuant to section two hundred eleven of this
50 chapter for such taxable year and a corporation shall be considered to
51 be subject to tax under this article for a taxable year if such corpo-
52 ration was not a taxpayer but was properly included in a combined return
53 filed pursuant to subsection (f) or (g) of section fourteen hundred
54 sixty-two of this article for such taxable year. A corporation that was
55 in existence before January first, two thousand three but first becomes
56 a taxpayer in a taxable year beginning on or after January first, two
S. 1410 5 A. 2110
1 thousand three and before January first, two thousand four, shall be
2 considered for purposes of this paragraph to have been subject to tax
3 under article nine-A of this chapter for its last taxable year beginning
4 before January first, two thousand three if such corporation would have
5 been subject to tax under such article for such taxable year if it had
6 been a taxpayer during such taxable year. A corporation that was in
7 existence before January first, two thousand three but first becomes a
8 taxpayer in a taxable year beginning on or after January first, two
9 thousand three and before January first, two thousand four, shall be
10 considered for purposes of this paragraph to have been subject to tax
11 under this article for its last taxable year beginning before January
12 first, two thousand three if such corporation would have been subject to
13 tax under this article for such taxable year if it had been a taxpayer
14 during such taxable year.
15 (2) Notwithstanding anything to the contrary contained in this
16 section, a corporation formed on or after January first, two thousand
17 three and before January first, two thousand four may elect to be
18 subject to tax under this article or under article nine-A of this chap-
19 ter for its first taxable year beginning on or after January first, two
20 thousand three and before January first, two thousand four in which
21 either (i) sixty-five percent or more of its voting stock is owned or
22 controlled, directly or indirectly by a financial holding company,
23 provided the corporation whose voting stock is so owned or controlled is
24 principally engaged in activities that are described in section 4(k)(4)
25 or 4(k)(5) of the federal bank holding company act of nineteen hundred
26 fifty-six, as amended and the regulations promulgated pursuant to the
27 authority of such section, or (ii) it is a financial subsidiary.
28 An election under this paragraph may not be made by a corporation
29 described in paragraphs one through eight of subsection (a) of this
30 section or in subsection (e) of this section. In addition, an election
31 under this paragraph may not be made by a corporation that is a party to
32 a reorganization, as defined in subsection (a) of section 368 of the
33 internal revenue code of 1986, as amended, of a corporation described in
34 paragraph one of this subsection if both corporations were sixty-five
35 percent or more owned or controlled, directly or indirectly, by the same
36 interests at the time of the reorganization. An election under this
37 paragraph must be made by the taxpayer on or before the due date for
38 filing its return (determined with regard to extensions of time for
39 filing) for the applicable taxable year. The election to be taxed under
40 article nine-A of this chapter shall be made by the taxpayer by filing
41 the report required pursuant to section two hundred eleven of this chap-
42 ter and the election to be taxed under this article shall be made by the
43 taxpayer by filing the return required pursuant to section fourteen
44 hundred sixty-two of this article. Any election made pursuant to this
45 paragraph shall be irrevocable and shall apply to each subsequent taxa-
46 ble year beginning on or after January first, two thousand three and
47 before January first, two thousand four, provided that the stock owner-
48 ship requirements described in subparagraph (i) of this paragraph are
49 met or such corporation described in subparagraph (ii) of this paragraph
50 continues as a financial subsidiary.
51 (3) For purposes of this section, a financial subsidiary means a
52 corporation (i) sixty-five percent or more of whose voting stock is
53 owned or controlled, directly or indirectly by a banking corporation
54 described in paragraph one, two or three of subsection (a) of this
55 section and (ii) is described in section 5136A(g) of the revised stat-
56 utes of the United States or section 46 of the federal deposit insurance
S. 1410 6 A. 2110
1 act. For purposes of this article, the term "banking corporation" shall
2 include a corporation electing to be taxed under this article pursuant
3 to paragraph two of this subsection for so long as such election shall
4 be in effect.
5 § 5. Subparagraph (iv) of paragraph 2 of subsection (f) of section
6 1462 of the tax law, as amended by section 6 of part P of chapter 383 of
7 the laws of 2001, is amended to read as follows:
8 (iv) (A) Notwithstanding any provision of this paragraph, any bank
9 holding company exercising its corporate franchise or doing business in
10 the state may make a return on a combined basis without seeking the
11 permission of the commissioner with any banking corporation exercising
12 its corporate franchise or doing business in the state in a corporate or
13 organized capacity sixty-five percent or more of whose voting stock is
14 owned or controlled, directly or indirectly, by such bank holding compa-
15 ny, for the first taxable year beginning on or after January first, two
16 thousand and before January first, two thousand [three] four during
17 which such bank holding company registers for the first time under the
18 federal bank holding company act, as amended, and also elects to be a
19 financial holding company. In addition, for each subsequent taxable year
20 beginning after January first, two thousand and before January first,
21 two thousand [three] four, any such bank holding company may file on a
22 combined basis without seeking the permission of the commissioner with
23 any banking corporation that is exercising its corporate franchise or
24 doing business in the state and sixty-five percent or more of whose
25 voting stock is owned or controlled, directly or indirectly, by such
26 bank holding company if either such banking corporation is exercising
27 its corporate franchise or doing business in the state in a corporate or
28 organized capacity for the first time during such subsequent taxable
29 year, or sixty-five percent or more of the voting stock of such banking
30 corporation is owned or controlled, directly or indirectly, by such bank
31 holding company for the first time during such subsequent taxable year.
32 Provided however, for each subsequent taxable year beginning after Janu-
33 ary first, two thousand and before January first, two thousand [three]
34 four, a banking corporation described in either of the two preceding
35 sentences which filed on a combined basis with any such bank holding
36 company in a previous taxable year, must continue to file on a combined
37 basis with such bank holding company if such banking corporation, during
38 such subsequent taxable year, continues to exercise its corporate fran-
39 chise or do business in the state in a corporate or organized capacity
40 and sixty-five percent or more of such banking corporation's voting
41 stock continues to be owned or controlled, directly or indirectly, by
42 such bank holding company, unless the permission of the commissioner has
43 been obtained to file on a separate basis for such subsequent taxable
44 year. Provided further, however, for each subsequent taxable year begin-
45 ning after January first, two thousand and before January first, two
46 thousand [three] four, a banking corporation described in either of the
47 first two sentences of this clause which did not file on a combined
48 basis with any such bank holding company in a previous taxable year, may
49 not file on a combined basis with such bank holding company during any
50 such subsequent taxable year unless the permission of the commissioner
51 has been obtained to file on a combined basis for such subsequent taxa-
52 ble year.
53 (B) Notwithstanding any provision of this paragraph other than clause
54 (A) of this subparagraph, the commissioner may not require a bank hold-
55 ing company which, during a taxable year beginning on or after January
56 first, two thousand and before January first, two thousand [three] four,
S. 1410 7 A. 2110
1 registers for the first time during such taxable year under the federal
2 bank holding company act, as amended, and also elects to be a financial
3 holding company, to make a return on a combined basis for any taxable
4 year beginning on or after January first, two thousand and before Janu-
5 ary first, two thousand [three] four with a banking corporation sixty-
6 five percent or more of whose voting stock is owned or controlled,
7 directly or indirectly, by such bank holding company.
8 § 6. Section 11-640 of the administrative code of the city of New York
9 is amended by adding a new subdivision (i) to read as follows:
10 (i) Transitional provisions relating to the enactment and implementa-
11 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
12 to the contrary contained in this section, a corporation that was in
13 existence before January first, two thousand three and was subject to
14 tax under subchapter two of this chapter for its last taxable year
15 beginning before January first, two thousand three, shall continue to be
16 taxable under subchapter two for all taxable years beginning on or after
17 January first, two thousand three and before January first, two thousand
18 four. The preceding sentence shall not apply to any taxable year during
19 which such corporation is a banking corporation described in paragraphs
20 one through eight of subdivision (a) of this section. Notwithstanding
21 anything to the contrary contained in this section, a banking corpo-
22 ration that was in existence before January first, two thousand three
23 and was subject to tax under this subchapter for its last taxable year
24 beginning before January first, two thousand three, shall continue to be
25 taxable under this subchapter for all taxable years beginning on or
26 after January first, two thousand three and before January first, two
27 thousand four. Provided, however, that nothing in this subdivision shall
28 prohibit a corporation that elected pursuant to subdivision (d) of this
29 section to be taxable under subchapter two of this chapter from revoking
30 that election in accordance with subdivision (d) of this section.
31 For purposes of this paragraph, a corporation shall be considered to
32 be subject to tax under subchapter two of this chapter for a taxable
33 year if such corporation was not a taxpayer but was properly included in
34 a combined report filed pursuant to subdivision four of section 11-605
35 of this chapter for such taxable year and a corporation shall be consid-
36 ered to be subject to tax under this subchapter for a taxable year if
37 such corporation was not a taxpayer but was properly included in a
38 combined report filed pursuant to subdivision (f) or (g) of section
39 11-646 of this chapter for such taxable year. A corporation that was in
40 existence before January first, two thousand three but first becomes a
41 taxpayer in a taxable year beginning on or after January first, two
42 thousand three and before January first, two thousand four, shall be
43 considered for purposes of this paragraph to have been subject to tax
44 under subchapter two of this chapter for its last taxable year beginning
45 before January first, two thousand three if such corporation would have
46 been subject to tax under such subchapter for such taxable year if it
47 had been a taxpayer during such taxable year. A corporation that was in
48 existence before January first, two thousand three but first becomes a
49 taxpayer in a taxable year beginning on or after January first, two
50 thousand three and before January first, two thousand four, shall be
51 considered for purposes of this paragraph to have been subject to tax
52 under this subchapter for its last taxable year beginning before January
53 first, two thousand three if such corporation would have been subject to
54 tax under this subchapter for such taxable year if it had been a taxpay-
55 er during such taxable year.
S. 1410 8 A. 2110
1 (2) Notwithstanding anything to the contrary contained in this
2 section, a corporation formed on or after January first, two thousand
3 three and before January first, two thousand four may elect to be
4 subject to tax under this subchapter or under subchapter two of this
5 chapter for its first taxable year beginning on or after January first,
6 two thousand three and before January first, two thousand four in which
7 either (i) sixty-five percent or more of its voting stock is owned or
8 controlled, directly or indirectly by a financial holding company,
9 provided the corporation whose voting stock is so owned or controlled is
10 principally engaged in activities that are described in section 4(k)(4)
11 or 4(k)(5) of the federal bank holding company act of nineteen hundred
12 fifty-six, as amended and the regulations promulgated pursuant to the
13 authority of such section or (ii) it is a financial subsidiary. An
14 election under this paragraph may not be made by a corporation described
15 in paragraphs one through eight of subdivision (a) of this section or in
16 subdivision (e) of this section. In addition, an election under this
17 paragraph may not be made by a corporation that is a party to a reorgan-
18 ization, as defined in subsection (a) of section 368 of the internal
19 revenue code of 1986, as amended, of a corporation described in para-
20 graph one of this subdivision if both corporations were sixty-five
21 percent or more owned or controlled, directly or indirectly by the same
22 interests at the time of the reorganization.
23 An election under this paragraph must be made by the taxpayer on or
24 before the due date for filing its return (determined with regard to
25 extensions of time for filing) for the applicable taxable year. The
26 election to be taxed under subchapter two of this chapter shall be made
27 by the taxpayer by filing the return required pursuant to subdivision
28 one of section 11-605 of this chapter and the election to be taxed under
29 this subchapter shall be made by the taxpayer by filing the return
30 required pursuant to subdivision (a) of section 11-646 of this chapter.
31 Any election made pursuant to this paragraph shall be irrevocable and
32 shall apply to each subsequent taxable year beginning on or after Janu-
33 ary first, two thousand three and before January first, two thousand
34 four, provided that the stock ownership requirements described in
35 subparagraph (i) of this paragraph are met or such corporation described
36 in subparagraph (ii) of this paragraph continues as a financial subsid-
37 iary.
38 (3) For purposes of this section, a financial subsidiary means a
39 corporation (i) sixty-five percent or more of whose voting stock is
40 owned or controlled, directly or indirectly by a banking corporation
41 described in paragraph one, two or three of subdivision (a) of this
42 section and (ii) is described in section 5136A(g) of the revised stat-
43 utes of the United States or section 46 of the federal deposit insurance
44 act. For purposes of this subchapter, the term "banking corporation"
45 shall include a corporation electing to be taxed under this subchapter
46 pursuant to paragraph two of this subdivision for so long as such
47 election shall be in effect.
48 § 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
49 11-646 of the administrative code of the city of New York, as amended by
50 section 9 of part P of chapter 383 of the laws of 2001, is amended to
51 read as follows:
52 (iv) (A) Notwithstanding any provision of this paragraph, any bank
53 holding company exercising its corporate franchise or doing business in
54 the city may make a return on a combined basis without seeking the
55 permission of the commissioner with any banking corporation exercising
56 its corporate franchise or doing business in the city in a corporate or
S. 1410 9 A. 2110
1 organized capacity sixty-five percent or more of whose voting stock is
2 owned or controlled, directly or indirectly, by such bank holding compa-
3 ny, for the first taxable year beginning on or after January first, two
4 thousand and before January first, two thousand [three] four during
5 which such bank holding company registers for the first time under the
6 federal bank holding company act, as amended, and also elects to be a
7 financial holding company. In addition, for each subsequent taxable year
8 beginning after January first, two thousand and before January first,
9 two thousand [three] four, any such bank holding company may file on a
10 combined basis without seeking the permission of the commissioner with
11 any banking corporation that is exercising its corporate franchise or
12 doing business in the city and sixty-five percent or more of whose
13 voting stock is owned or controlled, directly or indirectly, by such
14 bank holding company if either such banking corporation is exercising
15 its corporate franchise or doing business in the city in a corporate or
16 organized capacity for the first time during such subsequent taxable
17 year, or sixty-five percent or more of the voting stock of such banking
18 corporation is owned or controlled, directly or indirectly, by such bank
19 holding company for the first time during such subsequent taxable year.
20 Provided however, for each subsequent taxable year beginning after Janu-
21 ary first, two thousand and before January first, two thousand [three]
22 four, a banking corporation described in either of the two preceding
23 sentences which filed on a combined basis with any such bank holding
24 company in a previous taxable year, must continue to file on a combined
25 basis with such bank holding company if such banking corporation, during
26 such subsequent taxable year, continues to exercise its corporate fran-
27 chise or do business in the city in a corporate or organized capacity
28 and sixty-five percent or more of such banking corporation's voting
29 stock continues to be owned or controlled, directly or indirectly, by
30 such bank holding company, unless the permission of the commissioner has
31 been obtained to file on a separate basis for such subsequent taxable
32 year. Provided further, however, for each subsequent taxable year
33 beginning after January first, two thousand and before January first,
34 two thousand [three] four, a banking corporation described in either of
35 the first two sentences of this clause which did not file on a combined
36 basis with any such bank holding company in a previous taxable year, may
37 not file on a combined basis with such bank holding company during any
38 such subsequent taxable year unless the permission of the commissioner
39 has been obtained to file on a combined basis for such subsequent taxa-
40 ble year.
41 (B) Notwithstanding any provision of this paragraph other than clause
42 (A) of this subparagraph, the commissioner may not require a bank hold-
43 ing company which, during a taxable year beginning on or after January
44 first, two thousand and before January first, two thousand [three] four,
45 registers for the first time during such taxable year under the federal
46 bank holding company act, as amended, and also elects to be a financial
47 holding company, to make a return on a combined basis for any taxable
48 year beginning on or after January first, two thousand and before Janu-
49 ary first, two thousand [three] four with a banking corporation sixty-
50 five percent or more of whose voting stock is owned or controlled,
51 directly or indirectly, by such bank holding company.
52 § 8. This act shall take effect immediately.
53 PART B
S. 1410 10 A. 2110
1 Section 1. Subdivision (e) of section 1500 of the tax law, as amended
2 by section 148 of part A of chapter 389 of the laws of 1997, is amended
3 to read as follows:
4 (e) The term "taxpayer" means any insurance corporation subject to the
5 tax imposed under section [fifteen hundred one or] fifteen hundred ten
6 or any captive insurance company subject to the tax imposed under
7 section fifteen hundred two-b of this article.
8 § 2. Subdivisions (g), (h), (i) and (j) of section 1500 of the tax law
9 are REPEALED and subdivision (k) is relettered subdivision (g).
10 § 3. Section 1501 of the tax law is REPEALED.
11 § 4. Section 1502 of the tax law is REPEALED.
12 § 5. Subdivision (a) of section 1502-b of the tax law, as added by
13 section 149 of part A of chapter 389 of the laws of 1997, is amended to
14 read as follows:
15 (a) In lieu of the [taxes and] tax [surcharges] surcharge and tax
16 imposed by sections [fifteen hundred one,] fifteen hundred five-a[,] and
17 fifteen hundred ten of this article, every captive insurance company
18 licensed by the superintendent of insurance pursuant to the provisions
19 of article seventy of the insurance law, other than the metropolitan
20 transportation authority which is expressly exempt from the payment of
21 fees, taxes or assessments whether state or local, shall, for the privi-
22 lege of exercising its corporate franchise, pay a tax on (1) all gross
23 direct premiums, less return premiums thereon, written on risks located
24 or resident in this state and (2) all assumed reinsurance premiums, less
25 return premiums thereon, written on risks located or resident in this
26 state. The rate of the tax imposed on gross direct premiums shall be
27 four-tenths of one percent on all or any part of the first twenty
28 million dollars of premiums, three-tenths of one percent on all or any
29 part of the second twenty million dollars of premiums, two-tenths of one
30 percent on all or any part of the third twenty million dollars of premi-
31 ums, and seventy-five thousandths of one percent on each dollar of
32 premiums thereafter. The rate of the tax on assumed reinsurance premi-
33 ums shall be two hundred twenty-five thousandths of one percent on all
34 or any part of the first twenty million dollars of premiums, one hundred
35 and fifty thousandths of one percent on all or any part of the second
36 twenty million dollars of premiums, fifty thousandths of one percent on
37 all or any part of the third twenty million dollars of premiums and
38 twenty-five thousandths of one percent on each dollar of premiums there-
39 after. The tax imposed by this section shall be equal to the greater of
40 (i) the sum of the tax imposed on gross direct premiums and the tax
41 imposed on assumed reinsurance premiums or (ii) five thousand dollars.
42 § 6. Section 1503 of the tax law is REPEALED.
43 § 7. Section 1504 of the tax law is REPEALED.
44 § 8. Section 1505 of the tax law is REPEALED.
45 § 9. Subdivision (a) of section 1505-a of the tax law, as amended by
46 section 7 of part D of chapter 20 of the laws of 2001, is amended to
47 read as follows:
48 (a) Every domestic insurance corporation and every foreign or alien
49 insurance corporation, and every life insurance corporation described in
50 subdivision (b) of section fifteen hundred [one] ten of this article,
51 for the privilege of exercising its corporate franchise, or of [doing]
52 carrying on business[, or of employing capital, or of owning or leasing
53 property] in the metropolitan commuter transportation district in a
54 corporate or organized capacity[, or of maintaining an office in the
55 metropolitan commuter transportation district,] for all or any part of
56 its taxable years commencing on or after January first, nineteen hundred
S. 1410 11 A. 2110
1 eighty-two, but ending before December thirty-first, two thousand five,
2 except corporations specified in subdivision (c) of section fifteen
3 hundred twelve of this article, shall annually pay, in addition to the
4 [taxes] tax imposed by [sections fifteen hundred one and] section
5 fifteen hundred ten of this article [as limited by section fifteen
6 hundred five of this article], a tax surcharge on the [taxes] tax
7 imposed under [sections fifteen hundred one and] section fifteen hundred
8 ten of this article [as limited by section fifteen hundred five of this
9 article] after the deduction of any credits otherwise allowable under
10 this article as allocated to such district. Such [taxes] tax shall be
11 allocated to such district for purposes of computing such tax surcharge
12 [by applying the methodology, procedures and computations set forth in
13 subdivisions (a) and (b) of section fifteen hundred four of this arti-
14 cle, except that references to terms denoting New York premiums, and
15 total wages, salaries, personal service compensation and commissions
16 within New York shall be read as denoting within the metropolitan commu-
17 ter transportation district and terms denoting total premiums and total
18 wages, salaries, personal service compensation and commissions shall be
19 read as denoting within the state. If it shall appear to the commis-
20 sioner that the application of the methodology, procedures and computa-
21 tions set forth in such subdivisions (a) and (b) does not properly
22 reflect the activity, business or income of a taxpayer within the metro-
23 politan commuter transportation district, then the commissioner shall be
24 authorized, in the commissioner's discretion, to adjust such methodol-
25 ogy, procedures and computations for the purpose of allocating such
26 taxes by:
27 (1) excluding one or more factors therein;
28 (2) including one or more other factors therein, such as expenses,
29 purchases, receipts other than premiums, real property or tangible
30 personal property; or
31 (3) any other similar or different method which allocates such taxes
32 by attributing a fair and proper portion of such taxes to the metropol-
33 itan commuter transportation district. The commissioner from time to
34 time shall publish all rulings of general public interest with respect
35 to any application of the provisions of the preceding sentence. The
36 commissioner may promulgate rules and regulations to further implement
37 the provisions of this section] pursuant to a fraction, the denominator
38 of which shall be the direct premiums subject to tax under section
39 fifteen hundred ten of this article, and the numerator of which shall be
40 the direct premiums subject to tax under section fifteen hundred ten of
41 this article that are written on risks located or resident in the metro-
42 politan commuter transportation district, including premiums written,
43 procured or received in the metropolitan commuter transportation
44 district on business that cannot be specifically assigned as located or
45 resident in an area of New York state outside the metropolitan commuter
46 transportation district, or in another state or states; provided, howev-
47 er, in the case of special risk premiums, the numerator shall include
48 only those premiums written, procured or received in the metropolitan
49 commuter transportation district on property or risks located or resi-
50 dent in the metropolitan commuter transportation district. Such tax
51 surcharge shall be computed at the rate of eighteen per centum of the
52 taxes imposed under sections fifteen hundred one and fifteen hundred ten
53 of this article as limited by section fifteen hundred five of this arti-
54 cle (as those sections were in effect prior to January first, two thou-
55 sand three), as allocated to such district, for such taxable years or
56 any part of such taxable years ending before December thirty-first,
S. 1410 12 A. 2110
1 nineteen hundred eighty-three after the deduction of any credits other-
2 wise allowable under this article, [and] at the rate of seventeen per
3 centum of the taxes imposed under such sections as limited by section
4 fifteen hundred five of this article (as those sections were in effect
5 prior to January first, two thousand three), as allocated to such
6 district, for such taxable years or any part of such taxable years
7 ending on or after December thirty-first, nineteen hundred eighty-three
8 and before January first, two thousand three after the deduction of any
9 credits otherwise allowable under this article, and at the rate of
10 seventeen per centum of the tax imposed under section fifteen hundred
11 ten of this article, as allocated to such district, for such taxable
12 years or any part of such taxable years ending on or after December
13 thirty-first, two thousand three after the deduction of any credits
14 otherwise allowable under this article; provided, however, that the tax
15 surcharge imposed by this section shall not be imposed upon any taxpayer
16 for more than two hundred seventy-six months. Provided, however, that
17 for taxable years commencing on or after July first, two thousand and
18 before January first, two thousand three, such surcharge shall be calcu-
19 lated as if (i) the rate of the tax computed under paragraph one of
20 subdivision (a) of section fifteen hundred two of this article (as that
21 section was in effect prior to January first, two thousand three) was
22 nine percent and (ii) the rate of the limitation on tax set forth in
23 section fifteen hundred five of this article (as that section was in
24 effect prior to January first, two thousand three) for domestic, foreign
25 and alien insurance corporations, except life insurance corporations,
26 was two and six-tenths percent.
27 § 10. Paragraph 2 of subdivision (d) of section 1505-a of the tax law,
28 as amended by chapter 999 of the laws of 1984, is amended to read as
29 follows:
30 (2) If, by the laws of any state other than this state, or by the
31 action of any public official of such other state, any insurer organized
32 or domiciled in this state, or the duly authorized agents thereof,
33 subject to the business tax surcharge imposed by this section, shall be
34 required to pay taxes for the privilege of doing business in such other
35 state, which taxes are imposed or assessed because of the taxes imposed
36 or assessed under this section for taxable years beginning before Janu-
37 ary first, two thousand three, in computing the tax imposed by this
38 section, a credit shall be allowed for taxes paid to other states, which
39 credit shall be determined pursuant to the provisions of this section;
40 provided, however, that the credit allowed any insurer under this subdi-
41 vision shall in no event be greater than the tax surcharge payable by
42 such insurer pursuant to this section for the taxable year with respect
43 to which such amount has been imposed or assessed by such other states.
44 § 11. Subdivision (e) of section 1505-a of the tax law, as amended by
45 chapter 166 of the laws of 1991, is amended to read as follows:
46 (e) The provisions concerning returns under section fifteen hundred
47 fifteen of this article shall be applicable to this section, except that
48 for purposes of an automatic extension for six months for filing a
49 return covering the tax surcharges imposed by this section, such auto-
50 matic extension shall be allowed only if a taxpayer files with the
51 commissioner an application for extension in such form and manner as
52 said commissioner may prescribe by regulation and such taxpayer pays on
53 or before the date of such filing, in addition to any other amounts
54 required under this article, either ninety percent of the entire tax
55 required to be paid under this section for the applicable period, or not
56 less than the tax surcharge shown on the taxpayer's return for the
S. 1410 13 A. 2110
1 preceding taxable year, if such preceding taxable year was a taxable
2 year of twelve months. The tax surcharge imposed by this section shall
3 be payable to the commissioner in full at the time the return is
4 required to be filed, and such tax surcharge or the balance thereof,
5 imposed on any taxpayer which ceases to exercise its franchise or be
6 subject to the tax surcharge imposed by this section, shall be payable
7 to the commissioner at the time the return is required to be filed,
8 provided such tax surcharge of such domestic, foreign or alien insurance
9 corporation, including life insurance corporations, as described in
10 subdivision (b) of section fifteen hundred [one] ten of this article,
11 shall be subject to adjustment as the circumstances may require; all
12 other tax surcharges of any such taxpayer, which pursuant to the forego-
13 ing provisions of this section would otherwise be payable subsequent to
14 the time such return is required to be filed, shall nevertheless be
15 payable at such time. All of the provisions of this article presently
16 applicable are applicable to the tax surcharge imposed by this section.
17 § 12. Section 1510 of the tax law, as added by chapter 649 of the laws
18 of 1974, subdivision (a) as amended by chapter 640 of the laws of 1992,
19 subdivision (b) as amended by chapter 57 of the laws of 1977, paragraph
20 1 of subdivision (b) as amended by section 88 of part A of chapter 389
21 of the laws of 1997, paragraph 1 of subdivision (c) as amended by chap-
22 ter 729 of the laws of 1993, paragraph 2 of subdivision (c) as amended
23 by chapter 805 of the laws of 1984 and paragraph 4 of subdivision (c) as
24 amended by chapter 389 of the laws of 1979, is amended to read as
25 follows:
26 § 1510. [Additional franchise] Franchise tax on insurance corpo-
27 rations. (a) [Domestic, foreign and alien insurance corporations except
28 life insurance corporations.] Except as hereinafter provided, every
29 domestic insurance corporation, every foreign insurance corporation and
30 every alien insurance corporation[, other than such corporations trans-
31 acting the business of life insurance,] (1) authorized to transact busi-
32 ness in this state under a certificate of authority from the superinten-
33 dent of insurance or (2) which is a risk retention group as defined in
34 subsection [(o)] (n) of section five thousand nine hundred two of the
35 insurance law, shall, for the privilege of exercising corporate fran-
36 chises or for carrying on business in a corporate or organized capacity
37 within this state, and in addition to any other taxes imposed for such
38 privilege, pay a tax on all gross direct premiums, less return premiums
39 thereon, written on risks located or resident in this state. The rate
40 of tax imposed by this subdivision shall be two percent [on premiums
41 written on or after January first, nineteen hundred seventy-four and
42 before January first, nineteen hundred seventy-five, one and nine-tenths
43 percent on premiums written on or after January first, nineteen hundred
44 seventy-five and before January first, nineteen hundred seventy-six, one
45 and eight-tenths percent on premiums written on or after January first,
46 nineteen hundred seventy-six and before January first, nineteen hundred
47 seventy-eight, one and two-tenths percent on premiums written on or
48 after January first, nineteen hundred seventy-eight and before January
49 first, nineteen hundred ninety-two and one and three-tenths percent on
50 premiums written on and after such date. Provided, however, that the
51 rate of tax imposed by this subdivision on all gross direct premiums,
52 less return premiums thereon, for accident and health insurance
53 contracts shall be one and six-tenths percent for such premiums written
54 on or after January first, nineteen hundred seventy-four and before
55 January first, nineteen hundred seventy-eight, and one percent for such
S. 1410 14 A. 2110
1 premiums written on or after January first, nineteen hundred seventy-
2 eight].
3 (b) [Domestic, foreign and alien life insurance corporations. (1)
4 Except as hereinafter provided, every domestic life insurance corpo-
5 ration, and every foreign and alien life insurance corporation author-
6 ized to transact business in this state under a certificate of authority
7 from the superintendent of insurance, shall, for the privilege of exer-
8 cising corporate franchises or for carrying on business in a corporate
9 or organized capacity within this state, and in addition to any other
10 taxes imposed for such privilege, pay a tax on all gross direct premi-
11 ums, less return premiums thereon, received in cash or otherwise on
12 risks resident in this state, including supplemental contracts for total
13 and permanent disability benefits and accidental death benefits. The
14 rate of such tax shall be (i) one and six-tenths percent on such premi-
15 ums received on or after January first, nineteen hundred seventy-four
16 and before January first, nineteen hundred seventy-eight, (ii) one
17 percent on such premiums received on or after January first, nineteen
18 hundred seventy-eight and before January first, nineteen hundred eight-
19 y-seven, (iii) eight-tenths percent on such premiums received on or
20 after January first, nineteen hundred eighty-seven and before January
21 first, nineteen hundred ninety-eight, and (iv) seven-tenths percent on
22 such premiums received on or after January first, nineteen hundred nine-
23 ty-eight.
24 (2)] Every [such] life insurance corporation which shall obtain a
25 certificate of authority to transact business in this state or a renewal
26 of such certificate from the superintendent of insurance shall, upon the
27 expiration of such certificate for any cause or upon its ceasing to
28 transact new business in this state, continue to pay a tax upon its
29 business remaining in force in this state at the rate and as computed in
30 this subdivision.
31 (c) Determination of direct premiums--general provisions. (1) The term
32 "premium" includes all amounts received as consideration for insurance
33 contracts or reinsurance contracts, other than for annuity contracts,
34 and shall include premium deposits, assessments, policy fees, membership
35 fees, any separate costs by carriers assessed upon their policyholders
36 and every other compensation for such contract. In ascertaining the
37 amount of direct premiums upon which a tax is payable under this section
38 there shall be first determined the amount of total gross premiums or
39 deposit premiums or assessments, less returns thereon, on all policies,
40 certificates, renewals, policies subsequently cancelled, insurance and
41 reinsurance executed, issued or delivered on property or risks located
42 or resident in this state, including premiums for reinsurance assumed,
43 and also including premiums written, procured or received in this state
44 on business which cannot specifically be allocated or apportioned and
45 reported as taxable premiums or which have been used as a measure of a
46 tax on business of any other state or states. Provided however, in the
47 case of special risk premiums, direct premiums shall include only those
48 premiums written, procured or received in this state on property or
49 risks located or resident in this state. The reporting of premiums for
50 the purpose of the tax imposed by this section shall be on a written
51 basis or on a paid-for basis consistent with the basis required by the
52 annual statement filed with the superintendent of insurance pursuant to
53 section three hundred seven of the insurance law.
54 (2) The term "gross direct premiums," as used in this section, shall
55 not include premiums for policies issued pursuant to section four thou-
56 sand two hundred thirty-six of the insurance law [and premiums for
S. 1410 15 A. 2110
1 insurance upon hulls, freights, or disbursements, or upon goods, wares,
2 merchandise and all other personal property and interests therein, in
3 the course of exportation from, importation into any country, or trans-
4 portation coastwise, including transportation by land or water from
5 point of origin to final destination in respect to, appertaining to, or
6 in connection with, any and all risks or perils of navigation, transit
7 or transportation, and while being prepared for, and while awaiting
8 shipment, and during any delays, storage, transshipment or reshipment
9 incident thereto, including war risks and marine builder's risks].
10 (3) After determining the amount of total gross premiums, less returns
11 thereon, as hereinbefore provided, there shall be deducted the following
12 items:
13 (A) Such premiums, less return premiums thereon, which have been
14 received by way of reinsurance from corporations or other insurers
15 authorized to transact business in this state;
16 (B) Such premiums, less return premiums thereon, which have been
17 received by way of reinsurance from corporations or other insurers not
18 authorized to transact business in this state to the extent that such
19 premiums relate to transactions (i) that are authorized by section two
20 thousand one hundred five of the insurance law with respect to excess
21 line insurance, and (ii) with respect to which sums are payable by
22 licensed excess line brokers to the superintendent of insurance pursuant
23 to section two thousand one hundred eighteen of such law; and
24 (C) Dividends on such direct business, including unused or unabsorbed
25 portions of premium deposits paid or credited to policyholders, but not
26 including deferred dividends paid in cash to policyholders on maturing
27 policies, nor cash surrender values.
28 (4) In determining the amount of direct premiums taxable in this
29 state, all such premiums written, procured or received in this state
30 shall be deemed written on property or risks located or resident in this
31 state except such premiums as are properly allocated or apportioned and
32 reported as taxable premiums or which have been used as a measure of a
33 tax of any other state or states, provided however, in the case of
34 special risk premiums, direct premiums shall include only those premiums
35 written, procured or received in this state on property or risks located
36 or resident in this state.
37 (d) In no event shall the tax imposed under this section be less than
38 two hundred fifty dollars.
39 (e) Powers and duties of the superintendent of insurance. (1) The
40 superintendent of insurance shall, on behalf of the [tax commission]
41 commissioner, have the power, duty and responsibility to examine returns
42 of an insurance corporation filed with him or her pursuant to section
43 fifteen hundred fifteen and, together with any other information within
44 his or her possession or that may come into his or her possession, to
45 ascertain the correct amount of tax imposed under this section [of] on
46 any insurance corporation. For the purpose of ascertaining the correct-
47 ness of any such tax imposed under this section or for the purpose of
48 making an estimate of the tax liability under this section of any insur-
49 ance corporation, the superintendent of insurance shall have the power
50 to examine or cause to have examined by any agent or representative
51 designated by him or her for that purpose, any books, papers, records or
52 memoranda bearing upon the matters required to be included in the
53 return.
54 (2) If the superintendent of insurance ascertains that the amount of
55 tax imposed under this section as shown on the return of any insurance
56 corporation is less than the amount of tax disclosed by his or her exam-
S. 1410 16 A. 2110
1 ination, he or she shall propose, in writing, to the [tax commission]
2 commissioner the issuance of a notice of deficiency for the amount due.
3 If an insurance corporation fails to file a return with the superinten-
4 dent of insurance within the time required for the filing of such return
5 (with regard to any extension of time for the filing thereof), the
6 superintendent of insurance shall make an estimate of the amount of tax
7 due for the period in respect to which such insurance corporation failed
8 to file the return. The estimate shall be made from any available infor-
9 mation which is in the possession or may come into the possession of the
10 superintendent of insurance and he or she shall propose, in writing, to
11 the [tax commission] commissioner the issuance of a notice of deficiency
12 for the amount of such estimated tax. Any proposal pursuant to this
13 paragraph shall set forth the basis thereof and the details of its
14 computation.
15 (3) The [tax commission] commissioner shall, on receipt of a proposal
16 from the superintendent of insurance pursuant to paragraph [(2)] two of
17 this subdivision, review such proposal and if satisfied as to the
18 correctness thereof shall take appropriate action under this chapter for
19 the assessment and collection of the amount of tax, together with inter-
20 est and penalties, either shown by such proposal to be due or which the
21 [state tax commission] commissioner ascertains to be due. The provisions
22 of this subdivision shall not in any way be deemed to limit the power of
23 the [tax commission] commissioner to conduct such examination, or inves-
24 tigation as it deems necessary in order to carry out its duties with
25 respect to the taxes imposed under this section.
26 (4) Subject to the consent of the superintendent of insurance and
27 notwithstanding any other provisions of law to the contrary, the [tax
28 commission] commissioner may delegate such other of [its] his or her
29 powers and duties with respect to the administration and collection of
30 the taxes imposed under this section to the superintendent of insurance,
31 as the [tax commission] commissioner finds necessary in order to facili-
32 tate such administration and collection.
33 § 13. Paragraph 1 of subdivision (c) of section 1511 of the tax law,
34 as added by chapter 649 of the laws of 1974, is amended to read as
35 follows:
36 (1) If, by the laws of any state other than this state, or by the
37 action of any public official of such other state, any insurer organized
38 or domiciled in this state, or the duly authorized agents thereof, shall
39 be required to pay taxes for the privilege of doing business in such
40 other state for taxable years beginning before January first, two thou-
41 sand three, and such amounts are imposed or assessed because the taxes
42 which are or would be imposed under this chapter and the insurance law
43 upon insurers organized or domiciled in such other state are greater
44 than those required of insurers organized or domiciled in this state by
45 the laws of such other state for the privilege of doing business therein
46 for taxable years beginning before January first, two thousand three,
47 then and in every case, to the extent such amounts are legally due to
48 such other states, an insurer organized or domiciled in this state may
49 claim a credit, as hereinafter provided, against the tax payable pursu-
50 ant to this article of a sum not to exceed ninety per cent of such
51 amount. Provided, such credit shall in no event be greater than the tax
52 payable pursuant to this article during the taxable year with respect to
53 which such amount has been imposed or assessed by such other states. For
54 purposes of this section, the term "taxes for the privilege of doing
55 business" shall include, but shall not be limited to, a tax on or meas-
56 ured by income.
S. 1410 17 A. 2110
1 § 14. Paragraph 2 of subdivision (e) of section 1511 of the tax law,
2 as added by chapter 788 of the laws of 1978, is amended to read as
3 follows:
4 (2) In no event shall the credit herein provided for be allowed in an
5 amount which will reduce the tax payable to less than the minimum tax
6 fixed by [paragraph four of] subdivision [(a)] (d) of section fifteen
7 hundred [two] ten of this article. If, however, the amount of credit
8 allowable under this subdivision for any taxable year reduces the tax to
9 such amount, any amount of credit not deductible in such taxable year
10 may be carried over to the following year or years and may be deducted
11 from the taxpayer's tax for such year or years.
12 § 15. Paragraph 5 of subdivision (f) of section 1511 of the tax law,
13 as amended by chapter 803 of the laws of 1985, is amended to read as
14 follows:
15 (5) No credit allowed pursuant to this subdivision shall reduce the
16 tax payable by any taxpayer under this article for any taxable year to
17 an amount less than the minimum tax fixed by [paragraph four of] subdi-
18 vision [(a)] (d) of section fifteen hundred [two] ten of this article.
19 § 16. The closing paragraph of paragraph 4 of subdivision (g) of
20 section 1511 of the tax law, as amended by section 8 of part BB of chap-
21 ter 407 of the laws of 1999, is amended to read as follows:
22 Provided, further, however, that the credit provided for herein with
23 respect to the taxable year, and carryovers of such credit to the taxa-
24 ble year, deducted from the tax otherwise due, may not, in the aggre-
25 gate, exceed fifty percent of the [sum of the taxes] tax imposed under
26 [sections fifteen hundred one and] section fifteen hundred ten [or the
27 limitation on tax computed pursuant to section fifteen hundred five,
28 whichever is less], computed without regard to any credit provided for
29 under this article.
30 § 17. Paragraph 5 of subdivision (g) of section 1511 of the tax law,
31 as amended by chapter 170 of the laws of 1994, is amended to read as
32 follows:
33 (5) The credit or carryovers of such credit allowed under this subdi-
34 vision for any taxable year shall not, in the aggregate, reduce the tax
35 due for such year to less than the minimum tax fixed by [paragraph four
36 of] subdivision [(a)] (d) of section fifteen hundred [two] ten of this
37 article. However, if the amount of credit or carryovers of such credit,
38 or both, allowed under this subdivision for any taxable year reduces the
39 tax to such amount, or if any part of the credit or carryovers of such
40 credit may not be deducted from the tax otherwise due by reason of the
41 final sentence in paragraph four [hereof] of this subdivision, any
42 amount of credit or carryovers of such credit thus not deductible in
43 such taxable year may be carried over to the following year or years and
44 may be deducted from the taxpayer's tax for such year or years.
45 § 18. Paragraphs 2 and 3 of subdivision (h) of section 1511 of the tax
46 law, as amended by chapter 708 of the laws of 1993, are amended to read
47 as follows:
48 (2) The credit and carryover of such credit allowed under this subdi-
49 vision for any taxable year shall not, in the aggregate, reduce the tax
50 due for such year to less than the minimum tax fixed by [paragraph four
51 of] subdivision [(a)] (d) of section fifteen hundred [two] ten of this
52 article. However, if the amount of credit or carryovers of such credit,
53 or both, allowed under this subdivision for any taxable year reduces the
54 tax to such amount, or if any part of the credit or carryovers of such
55 credit may not be deducted from the tax otherwise due by reason of the
56 final sentence of this paragraph, any amount of credit or carryovers of
S. 1410 18 A. 2110
1 such credit thus not deductible in such taxable year may be carried over
2 to the following year or years and may be deducted from the tax for such
3 year or years. In addition, the amount of such credit, and carryovers
4 of such credit to the taxable year, deducted from the tax otherwise due
5 may not, in the aggregate, exceed fifty percent of the [sum of the
6 taxes] tax imposed under [sections fifteen hundred one and] section
7 fifteen hundred ten [or the limitation on tax computed pursuant to
8 section fifteen hundred five, whichever is less], computed without
9 regard to any credit provided for under this article.
10 (3) [Where] For taxable years beginning before January first, two
11 thousand three, where the stock, partnership interest or other ownership
12 interest arising from a qualified investment as described in subpara-
13 graphs (A) and (B) of paragraph one of this subdivision is disposed of,
14 the taxpayer's entire net income shall be computed, pursuant to regu-
15 lations promulgated by the commissioner, so as to properly reflect the
16 reduced cost thereof arising from the application of the credit provided
17 for herein.
18 § 19. Paragraph 5 of subdivision (j) of section 1511 of the tax law,
19 as added by chapter 142 of the laws of 1997, is amended to read as
20 follows:
21 (5) Carryover. The credit and carryovers of such credit allowed under
22 this subdivision for any taxable year shall not, in the aggregate,
23 reduce the tax due for such year to less than the minimum tax fixed by
24 [paragraph four of] subdivision [(a)] (d) of section fifteen hundred
25 [two] ten of this article. However, if the amount of credit or carry-
26 overs of such credit, or both, allowed under this subdivision for any
27 taxable year reduces the tax to such amount, then any amount of credit
28 or carryovers of such credit thus not deductible in such taxable year
29 may be carried over to the following year or years and may be deducted
30 from the taxpayer's tax for such year or years.
31 § 20. Paragraph 3 of subdivision (k) of section 1511 of the tax law,
32 as amended by section 2 of part S of chapter 407 of the laws of 1999, is
33 amended to read as follows:
34 (3) No credit allowable pursuant to this subdivision shall reduce the
35 tax payable under this article to less than the minimum tax fixed by
36 [paragraph four of] subdivision [(a)] (d) of section fifteen hundred
37 [two] ten of this article. If, however, the amount of credit allowable
38 under this subdivision for any taxable year reduces the tax to such
39 amount, any amount of credit not taken in such taxable year may be
40 carried over to the following year or years and may be deducted from the
41 taxpayer's tax for such year or years.
42 § 21. Subdivision (1) of section 1511 of the tax law, as added by
43 section 5 of part J of chapter 407 of the laws of 1999, is amended to
44 read as follows:
45 (l) Credit for purchase of an automated external defibrillator. A
46 taxpayer shall be allowed a credit as hereinafter provided, against the
47 tax imposed by this article for the purchase, other than for resale, of
48 an automated external defibrillator, as such term is defined in section
49 three thousand-b of the public health law. The amount of the credit
50 shall be the cost to the taxpayer of automated external defibrillators
51 purchased during the taxable year, such credit not to exceed five
52 hundred dollars with respect to each unit purchased. The credit allowed
53 under this subdivision for any taxable year shall not reduce the tax due
54 for such year to less than the minimum tax fixed by [paragraph four of]
55 subdivision [(a)] (d) of section fifteen hundred [two] ten of this arti-
56 cle.
S. 1410 19 A. 2110
1 § 22. Paragraph 2 of subdivision (m) of section 1511 of the tax law,
2 as added by section 9 of part E of chapter 63 of the laws of 2000, is
3 amended to read as follows:
4 (2) In no event shall the credit herein provided for be allowed in an
5 amount which will reduce the tax payable to less than the minimum tax
6 fixed by subdivision [(a)] (d) of section fifteen hundred [two] ten of
7 this article. If, however, the amount of credit allowable under this
8 subdivision for any taxable year reduces the tax to such amount, any
9 amount of credit not deductible in such taxable year may be carried over
10 to the following year or years and may be deducted from the taxpayer's
11 tax for such year or years.
12 § 23. Paragraph 2 of subdivision (n) of section 1511 of the tax law,
13 as added by section 7 of part CC of chapter 63 of the laws of 2000, is
14 amended to read as follows:
15 (2) Application of credit. The credit and carryovers of such credit
16 allowed under this subdivision for any taxable year shall not, in the
17 aggregate, reduce the tax due for such year to less than the minimum tax
18 fixed by [paragraph four of] subdivision [(a)] (d) of section fifteen
19 hundred [two] ten of this article. However, if the amount of credit or
20 carryovers of such credit, or both, allowed under this subdivision for
21 any taxable year reduces the tax to such amount, then any amount of
22 credit or carryovers of such credit thus not deductible in such taxable
23 year may be carried over to the following year or years and may be
24 deducted from the taxpayer's tax for such year or years.
25 § 24. Paragraph 2 of subdivision (o) of section 1511 of the tax law,
26 as added by section 8 of part II of chapter 63 of the laws of 2000, is
27 amended to read as follows:
28 (2) Carryover. The credit and carryovers of such credit allowed under
29 this subdivision for any taxable year shall not, in the aggregate,
30 reduce the tax due for such year to less than the minimum tax fixed by
31 [paragraph four of] subdivision [(a)] (d) of section fifteen hundred
32 [two] ten of this article. However, if the amount of credit or carry-
33 overs of such credit, or both, allowed under this subdivision for any
34 taxable year reduces the tax to such amount, then any amount of credit
35 or carryovers of such credit thus not deductible in such taxable year
36 may be carried over to the following year or years and may be deducted
37 from the taxpayer's tax for such year or years.
38 § 25. Paragraph 2 of subdivision (p) of section 1511 of the tax law,
39 as added by section 7 of part I of chapter 63 of the laws of 2000, is
40 amended to read as follows:
41 (2) Application of credit. The credit allowed under this subdivision
42 for any taxable year shall not reduce the tax due for such year to less
43 than the minimum tax fixed by [paragraph four of] subdivision [(a)] (d)
44 of section fifteen hundred [two] ten of this article. However, if the
45 amount of credit allowed under this subdivision for any taxable year
46 reduces the tax to such amount, then any amount of credit thus not
47 deductible in such taxable year shall be treated as an overpayment of
48 tax to be credited or refunded in accordance with the provisions of
49 section ten hundred eighty-six of this chapter. Provided, however, the
50 provisions of subsection (c) of section ten hundred eighty-eight of this
51 chapter notwithstanding, that no interest shall be paid thereon.
52 § 26. Paragraph 4 of subdivision (q) of section 1511 of the tax law,
53 as added by section 1 of part L of chapter 63 of the laws of 2000, is
54 amended to read as follows:
55 (4) Except as otherwise provided in this paragraph, the credit allowed
56 under this subdivision for any taxable year shall not reduce the tax due
S. 1410 20 A. 2110
1 for such year to less than the [dollar] amount fixed as a minimum tax by
2 subdivision [(a)] (d) of section [one thousand five] fifteen hundred
3 [two] ten of this article. However, if the amount of credit allowable
4 under this subdivision for any taxable year reduces the tax to such
5 amount, any amount of credit allowed for a taxable year may be carried
6 over to the fifteen taxable years next following such taxable year and
7 may be deducted from the taxpayer's tax for such year or years. In lieu
8 of such carryover, any such taxpayer which qualifies as a new business
9 under paragraph seven of this subdivision may elect to treat the amount
10 of such carryover as an overpayment of tax to be credited or refunded in
11 accordance with the provisions of section one thousand eighty-six of
12 this chapter[,]; provided, however, the provisions of subsection (c) of
13 section one thousand eighty-eight of this chapter notwithstanding, that
14 no interest shall be paid thereon.
15 § 27. Paragraph 2 of subdivision (r) of section 1511 of the tax law,
16 as added by section 7 of part GG of chapter 63 of the laws of 2000, is
17 amended to read as follows:
18 (2) Application of credit. The credit allowed under this subdivision
19 for any taxable year shall not reduce the tax due for such year to less
20 than the minimum tax fixed by [paragraph four of] subdivision [(a)] (d)
21 of section fifteen hundred [two] ten of this article. However, if the
22 amount of credit allowed under this subdivision for any taxable year
23 reduces the tax to such amount, then any amount of credit thus not
24 deductible in such taxable year shall be treated as an overpayment of
25 tax to be credited or refunded in accordance with the provisions of
26 section ten hundred eighty-six of this chapter. Provided, however, the
27 provisions of subsection (c) of section ten hundred eighty-eight of this
28 chapter notwithstanding, that no interest shall be paid thereon.
29 § 27-a. Subdivision (s) of section 1511 of the tax law is REPEALED.
30 § 28. Subdivision (t) of section 1511 of the tax law, as amended by
31 section 5 of part J of chapter 85 of the laws of 2002, is amended to
32 read as follows:
33 [(t)] (s) Order of credits. Notwithstanding the succeeding sentences
34 of this subdivision, the credits provided for in subdivisions (g) and
35 (h) of this section shall be deducted before any other credits allowable
36 under this article, and the credit provided for in such subdivision (g)
37 shall be deducted after the credit provided for in such subdivision (h).
38 After application of the first sentence of this subdivision, the credits
39 allowable under this article which cannot be carried over and which are
40 not refundable shall be deducted first. Credits allowable under this
41 article which can be carried over, and carryovers of such credits, shall
42 be deducted next, and among such credits, those whose carryover is of
43 limited duration shall be deducted before those whose carryover is of
44 unlimited duration. Credits allowable under this article which are
45 refundable shall be deducted last. [Credits under subdivisions (g) and
46 (h) of this section may not be deducted from the limitation on tax
47 computed pursuant to section fifteen hundred five of this article.]
48 § 29. Subdivision (c) of section 1512 of the tax law, as amended by
49 chapter 639 of the laws of 1986, is amended to read as follows:
50 (c) The [taxes] tax imposed by [sections fifteen hundred one and
51 fifteen hundred ten] this article shall not apply to any corporation,
52 association, joint stock company or association, person, society, aggre-
53 gation or partnership doing an insurance business as a member of the New
54 York insurance exchange described in section six thousand two hundred
55 one of the insurance law. [However, such corporations, associations,
56 joint stock companies or associations, persons, societies, aggregations
S. 1410 21 A. 2110
1 or partnerships must compute an allocated entire net income pursuant to
2 sections fifteen hundred three and fifteen hundred four of this article
3 and transmit a return to the tax commission pursuant to section fifteen
4 hundred fifteen of this article.]
5 § 30. Subdivision (b) of section 1513 of the tax law, as amended by
6 chapter 166 of the laws of 1991, is amended to read as follows:
7 (b) Definition of estimated tax and estimated tax surcharge. The
8 terms "estimated tax" and "estimated tax surcharge" mean the amounts
9 which the taxpayer estimates to be the [taxes] tax imposed by section
10 [fifteen hundred one and] fifteen hundred ten or the tax surcharge
11 imposed by section fifteen hundred five-a, respectively, for the current
12 taxable year, less the sum of any credits which it estimates to be
13 allowable against such [taxes] tax or tax surcharge, respectively.
14 § 31. Paragraph 2 of subdivision (a) of section 1514 of the tax law,
15 as added by section 89 of part A of chapter 389 of the laws of 1997, is
16 amended to read as follows:
17 (2) For taxable years beginning on or after January first, nineteen
18 hundred ninety-nine and before January first, two thousand three, every
19 taxpayer subject to tax under paragraph one of subdivision (b) of
20 section fifteen hundred ten of this article (as such section was in
21 effect prior to January first, two thousand three) shall pay in each
22 such year an amount equal to forty percent of the tax imposed under such
23 article for the preceding taxable year, if such preceding year's tax
24 exceeded one thousand dollars. If such preceding year's tax exceeded one
25 thousand dollars and such taxpayer is subject to the tax surcharge
26 imposed by section fifteen hundred five-a of this article, such taxpayer
27 shall also pay an amount equal to forty percent of the tax surcharge
28 imposed under section fifteen hundred five-a for the preceding taxable
29 year.
30 § 32. Subdivisions (e) and (f) of section 1514 of the tax law, subdi-
31 vision (e) as amended by chapter 166 of the laws of 1991 and subdivision
32 (f) as added by chapter 103 of the laws of 1981, are amended to read as
33 follows:
34 (e) Interest on certain installments based on the preceding year's
35 tax. Notwithstanding the provisions of section one thousand eighty-
36 eight of this chapter or section sixteen of the state finance law, if an
37 amount paid pursuant to subdivision (a) of this section exceeds the tax
38 or tax surcharge, respectively, shown on the return required to be filed
39 by the taxpayer for the taxable year during which such amount was paid,
40 interest shall be allowed and paid on the amount by which the amount so
41 paid pursuant to subdivision (a) of this section exceeds such tax or tax
42 surcharge, at the overpayment rate set by the commissioner [of taxation
43 and finance] pursuant to subdivision (e) of section one thousand nine-
44 ty-six of this chapter or, if no rate is set, at the rate of six percent
45 per annum, from the date of payment of the amount so paid pursuant to
46 such subdivision (a) to the fifteenth day of the third month following
47 the close of the taxable year[,]; provided, however, that no interest
48 shall be allowed or paid under this subdivision if the amount thereof is
49 less than one dollar [or if such interest becomes payable solely because
50 of a loss described in paragraph four of subdivision (b) of section
51 fifteen hundred three].
52 (f) The preceding year's tax defined. As used in this section, "the
53 preceding year's tax" means for taxable years beginning before January
54 first, two thousand four, the taxes imposed upon the taxpayer by
55 sections fifteen hundred one and fifteen hundred ten of this article
56 from the preceding taxable year or, for taxable years beginning on or
S. 1410 22 A. 2110
1 after January first, two thousand four, the tax imposed upon the taxpay-
2 er by section fifteen hundred ten of this article, or, for purposes of
3 computing the first installment of estimated tax when an application has
4 been filed for extension of the time for filing the return required to
5 be filed for such preceding taxable year, the amount properly estimated
6 pursuant to paragraph one of subdivision (b) of section fifteen hundred
7 sixteen of this article as the tax imposed upon the taxpayer for such
8 taxable year.
9 § 33. Subdivisions (f) and (g) of section 1515 of the tax law are
10 REPEALED.
11 § 34. Subdivision (j) of section 14 of the tax law, as added by
12 section 13-a of part CC of chapter 85 of the laws of 2002, is amended to
13 read as follows:
14 [(j)] (k) If the designation of an area as an empire zone is no longer
15 in effect because section nine hundred sixty-nine of the general munici-
16 pal law was not amended to extend the effective date of such designation
17 beyond July thirty-first, two thousand four, a business enterprise that
18 was certified pursuant to article eighteen-B of the general municipal
19 law on July thirty-first, two thousand four shall be deemed to continue
20 to be certified under such article eighteen-B for purposes of this
21 section, and sections fifteen, sixteen, subdivisions twenty-seven and
22 twenty-eight of section two hundred ten, subsections (bb) and (cc) of
23 section six hundred six, subdivision (z) of section eleven hundred
24 fifteen, subsections (o) and (p) of section fourteen hundred fifty-six,
25 and [subdivisions] subdivision (r) [and (s)] of section fifteen hundred
26 eleven of this chapter. In addition, if the designation of an area as an
27 empire zone is no longer in effect because section nine hundred sixty-
28 nine of the general municipal law was not amended to extend the effec-
29 tive date of such designation beyond July thirty-first, two thousand
30 four, all references to empire zones in the provisions of this chapter
31 listed in the previous sentence shall be read as meaning areas desig-
32 nated as empire zones on July thirty-first, two thousand four.
33 § 35. Subdivision (a) of section 16 of the tax law, as added by
34 section 2 of part GG of chapter 63 of the laws of 2000, is amended to
35 read as follows:
36 (a) Allowance of credit. A taxpayer which is a qualified empire zone
37 enterprise (QEZE), or which is a sole proprietor of a QEZE or a member
38 of a partnership which is a QEZE, and which is subject to tax under
39 article nine-A, twenty-two[,] or thirty-two [or thirty-three] of this
40 chapter, shall be allowed a credit against such tax, pursuant to the
41 provisions referenced in subdivision (g) of this section, to be computed
42 as hereinafter provided.
43 § 36. Subdivision (f) of section 16 of the tax law, as amended by
44 section 14 of part CC of chapter 85 of the laws of 2002, is amended to
45 read as follows:
46 (f) Tax factor. (1) General. The tax factor shall be, in the case of
47 article nine-A of this chapter, the larger of the amounts of tax deter-
48 mined for the taxable year under paragraphs (a) and (c) of subdivision
49 one of section two hundred ten of such article. The tax factor shall be,
50 in the case of article twenty-two of this chapter, the tax determined
51 for the taxable year under subsections (a) through (d) of section six
52 hundred one of such article. The tax factor shall be, in the case of
53 article thirty-two of this chapter, the larger of the amounts of tax
54 determined for the taxable year under subsection (a) and paragraph two
55 of subsection (b) of section fourteen hundred fifty-five of such arti-
56 cle. [The tax factor shall be, in the case of article thirty-three of
S. 1410 23 A. 2110
1 this chapter, the larger of the amounts of tax determined for the taxa-
2 ble year under paragraphs one and three of subdivision (a) of section
3 fifteen hundred two of such article.]
4 (2) Sole proprietors, partners and S corporation shareholders. (A)
5 Where the taxpayer is a sole proprietor of a qualified empire zone
6 enterprise, the taxpayer's tax factor shall be that portion of the
7 amount determined in paragraph one of this subdivision which is attrib-
8 utable to the income of the qualified empire zone enterprise. Such
9 attribution shall be made in accordance with the ratio of the taxpayer's
10 income from the qualified empire zone enterprise allocated within the
11 state, entering into New York adjusted gross income, to the taxpayer's
12 New York adjusted gross income, or in accordance with such other methods
13 as the commissioner may prescribe as providing an apportionment which
14 reasonably reflects the portion of the taxpayer's tax attributable to
15 the income of the qualified empire zone enterprise. In no event may the
16 ratio so determined exceed 1.0.
17 (B)(i) Where the taxpayer is a member of a partnership which is a
18 qualified empire zone enterprise, the taxpayer's tax factor shall be
19 that portion of the amount determined in paragraph one of this subdivi-
20 sion which is attributable to the income of the partnership. Such attri-
21 bution shall be made in accordance with the ratio of the partner's
22 income from the partnership allocated within the state to the partner's
23 entire income, or in accordance with such other methods as the commis-
24 sioner may prescribe as providing an apportionment which reasonably
25 reflects the portion of the partner's tax attributable to the income of
26 the partnership. In no event may the ratio so determined exceed 1.0.
27 (ii) For purposes of article nine-A[,] or thirty-two [or thirty-three]
28 of this chapter, the term "partner's income from the partnership" means
29 partnership items of income, gain, loss and deduction, and New York
30 modifications thereto, entering into entire net income, minimum taxable
31 income[,] or alternative entire net income [or entire net income plus
32 compensation] , and the term "partner's entire income" means entire net
33 income, minimum taxable income[,] or alternative entire net income [or
34 entire net income plus compensation], allocated within the state. For
35 purposes of article twenty-two of this chapter, the term "partner's
36 income from the partnership" means partnership items of income, gain,
37 loss and deduction, and New York modifications thereto, entering into
38 New York adjusted gross income, and the term "partner's entire income"
39 means New York adjusted gross income.
40 (C) Where the taxpayer is a shareholder of a New York S corporation
41 which is a qualified empire zone enterprise, the shareholder's tax
42 factor shall be that portion of the amount determined in paragraph one
43 of this subdivision which is attributable to the income of the S corpo-
44 ration. Such attribution shall be made in accordance with the ratio of
45 the shareholder's income from the S corporation allocated within the
46 state, entering into New York adjusted gross income, to the sharehold-
47 er's New York adjusted gross income, or in accordance with such other
48 methods as the commissioner may prescribe as providing an apportionment
49 which reasonably reflects the portion of the shareholder's tax attribut-
50 able to the income of the qualified empire zone enterprise. In no event
51 may the ratio so determined exceed 1.0.
52 (3) Combined returns or reports. (A) Where the taxpayer is a qualified
53 empire zone enterprise and is required or permitted to make a return or
54 report on a combined basis under article nine-A[,] or thirty-two [or
55 thirty-three] of this chapter, the taxpayer's tax factor shall be the
56 amount determined in paragraph one of this subdivision which is attrib-
S. 1410 24 A. 2110
1 utable to the income of the qualified empire zone enterprise. Such
2 attribution shall be made in accordance with the ratio of the qualified
3 empire zone enterprise's income allocated within the state to the
4 combined group's income, or in accordance with such other methods as the
5 commissioner may prescribe as providing an apportionment which reason-
6 ably reflects the portion of the combined group's tax attributable to
7 the income of the qualified empire zone enterprise. In no event may the
8 ratio so determined exceed 1.0.
9 (B) The term "income of the qualified empire zone enterprise" means
10 entire net income, minimum taxable income[,] or alternative entire net
11 income [or entire net income plus compensation] calculated as if the
12 taxpayer was filing separately, and the term "combined group's income"
13 means entire net income, minimum taxable income[,] or alternative entire
14 net income [or entire net income plus compensation] as shown on the
15 combined return or report, allocated within the state.
16 (4) If the amount determined in paragraph one of this subdivision is
17 less than zero, a taxpayer shall not be allowed a credit under this
18 section.
19 § 37. Subdivision (g) of section 16 of the tax law, as added by
20 section 2 of part GG of chapter 63 of the laws of 2000, is amended to
21 read as follows:
22 (g) Definitions and cross-references. For definitions of terms used in
23 this section see sections fourteen and fifteen of this article. For
24 application of the credit provided for in this section, see the follow-
25 ing provisions of this chapter:
26 (1) Article 9-A: Section 210: subdivision 28.
27 (2) Article 22: Section 606: subsections (i) and (cc).
28 (3) Article 32: Section 1456: subsection (p).
29 [(4) Article 33: Section 1511: subdivision (s).]
30 § 38. Subparagraph 15 of paragraph (a) of subdivision 9 of section 208
31 of the tax law is REPEALED.
32 § 39. Paragraph 1 of subsection (e) of section 1085 of the tax law, as
33 amended by chapter 55 of the laws of 1992, is amended to read as
34 follows:
35 (1) Paragraphs [(1)] one and [(2)] two of subsection (d) of this
36 section shall not apply in the case of any corporation (or any predeces-
37 sor corporation) which had entire net income, or the portion thereof
38 allocated within the state, of one million dollars or more for any taxa-
39 ble year during the three taxable years immediately preceding the taxa-
40 ble year involved; provided, however, that in the case of a corporation
41 subject to tax under article thirty-three of this chapter, paragraphs
42 one and two of subsection (d) of this section shall not apply if such
43 corporation had entire net income, or the portion thereof allocated
44 within the state, of one million dollars or more for any of the three
45 taxable years immediately preceding the taxable year involved, or if the
46 direct premiums subject to tax under section fifteen hundred ten of this
47 chapter of the corporation for any of such three preceding taxable years
48 beginning on or after January first, two thousand three equals or
49 exceeds three million seven hundred fifty thousand dollars.
50 § 40. Subparagraph (C) of paragraph 2 of subsection (c) of section
51 4223 of the insurance law, as added by chapter 864 of the laws of 1985,
52 is amended to read as follows:
53 (C) additional amounts, including interest (which shall not be less in
54 any year than [three] one and one-half percent of the sum of the actual
55 accumulation amount and the amount of any indebtedness to the company on
S. 1410 25 A. 2110
1 the contract) and dividends, credited by the company to the contract;
2 minus
3 § 41. This act shall take effect immediately and shall apply to taxa-
4 ble years beginning on or after January 1, 2003; provided, however,
5 that:
6 1. The amendments to paragraph 3 of subdivision (c) of section 1510 of
7 the tax law made by section twelve of this act shall apply to taxable
8 years beginning on or after January 1, 1990. Notwithstanding the
9 provisions of section 1087 or 1088 of the tax law, a claim for credit or
10 refund based solely on such amendment made by section twelve of this act
11 that otherwise would be barred by the statute of limitations specified
12 in section 1087 of the tax law may be filed, provided such claim is
13 filed within 120 days from the date that section twelve of this act
14 shall take effect; and provided further, that no interest shall be
15 allowed and paid on a claim for credit or refund, or portion of a claim
16 for credit or refund, based on such amendment made by section twelve of
17 this act for any taxable year beginning before January 1, 2003; and
18 2. The amendments to subparagraph (C) of paragraph 2 of subsection
19 (c) of section 4223 of the insurance law made by section forty of this
20 act shall take effect July 1, 2003, and shall expire and be deemed
21 repealed June 30, 2005; provided, however, that any annuity contract
22 entered into on or after July 1, 2003 and prior to June 30, 2005 shall
23 remain in effect and be valid after such repeal date.
24 PART C
25 Section 1. Paragraph 30 of subdivision (a) of section 1115 of the tax
26 law, as amended by section 84 of part A of chapter 56 of the laws of
27 1998, is amended to read as follows:
28 (30) [Clothing] During the seven-day periods each year commencing on
29 the Tuesday immediately preceding the third Monday of January, known as
30 Dr. Martin Luther King, Jr. day, and ending on Dr. Martin Luther King,
31 Jr. day, commencing on the first Saturday in April and ending on the
32 immediately succeeding Friday, commencing on the second Saturday in July
33 and ending on the immediately succeeding Friday and commencing on the
34 Tuesday immediately preceding the first Monday in September, known as
35 Labor day, and ending on Labor day, clothing and footwear for which the
36 receipt or consideration given or contracted to be given is less than
37 [one] five hundred [ten] dollars per article of clothing, per pair of
38 shoes or other articles of footwear or per item used or consumed to make
39 or repair such clothing and which becomes a physical component part of
40 such clothing.
41 § 2. Subdivision (k) of section 1210 of the tax law, as amended by
42 section 86 of part A of chapter 56 of the laws of 1998, paragraph 2 as
43 amended by section 7 of part KK of chapter 407 of the laws of 1999, is
44 amended to read as follows:
45 (k) Notwithstanding any other provision of state or local law, ordi-
46 nance or resolution to the contrary:
47 (1) Any city having a population of one million or more in which the
48 taxes imposed by section eleven hundred seven of this chapter are in
49 effect, acting through its local legislative body, is hereby authorized
50 and empowered to elect to provide the exemption from such taxes for the
51 same clothing and footwear exempt from state sales and compensating use
52 taxes, during the same periods each year, described in paragraph thirty
53 of subdivision (a) of section eleven hundred fifteen of this chapter by
54 enacting a resolution in the form set forth in paragraph two of this
S. 1410 26 A. 2110
1 subdivision; whereupon, upon compliance with the provisions of subdivi-
2 sions (d) and (e) of this section, such enactment of such resolution
3 shall be deemed to be an amendment to such section eleven hundred seven
4 and such section eleven hundred seven shall be deemed to incorporate
5 such exemption as if it had been duly enacted by the state legislature
6 and approved by the governor.
7 (2) Form of Resolution: Be it enacted by the (insert proper title of
8 local legislative body) as follows:
9 Section one. Receipts from sales of and consideration given or
10 contracted to be given for purchases of clothing and footwear exempt
11 from state sales and compensating use taxes pursuant to paragraph 30 of
12 subdivision (a) of section 1115 of the tax law shall also be exempt from
13 sales and compensating use taxes imposed in this jurisdiction, during
14 the same periods set forth in such paragraph 30.
15 Section two. This resolution shall take effect March 1, (insert the
16 year, but not earlier than the year [2000] 2004) and shall apply to
17 sales made and uses occurring [on and after that date although made or
18 occurring under a prior contract] during the applicable exemptions peri-
19 ods each year, in accordance with the applicable transitional provisions
20 of sections 1106 and 1217 of the tax law.
21 § 3. Notwithstanding any provision of state or local law, ordinance or
22 resolution to the contrary:
23 (a) If, prior to the date this act shall have become a law, a city,
24 county or school district imposing sales and compensating use taxes
25 pursuant to the authority of paragraph 1 of subdivision (a) of section
26 1210 or section 1211 of the tax law or a city having a population of one
27 million or more in which the taxes imposed by section 1107 of the tax
28 law are in effect has elected the exemption for clothing and footwear
29 described in paragraph 30 of subdivision (a) of section 1115 of the tax
30 law, whether such exemption was in effect on the date this act shall
31 have become a law or was to take effect at a future date, and
32 (1) such municipality wishes for the clothing and footwear exemption
33 to continue to apply or to take effect at such future date, in the
34 amended form set forth in section one of this act, then such munici-
35 pality need not take any action, whereupon, on the effective date of
36 such section one of this act in the case of a municipality whose
37 election has taken effect prior to the date this act shall have become a
38 law or upon such future date in the case of a municipality whose
39 election will take effect at a future date, the local law, ordinance or
40 resolution of such municipality imposing such sales and use taxes shall
41 be deemed to incorporate such amended exemption pursuant to sections
42 1210 and 1218 of the tax law, and section 1107 of the tax law shall be
43 deemed to incorporate such amended exemption as if an amendment to such
44 section 1107 had been duly enacted by the state legislature and approved
45 by the governor; or
46 (2) such municipality does not wish for the clothing and footwear
47 exemption to continue to apply in the amended form set forth in section
48 one of this act, then such municipality, acting through its local legis-
49 lative body, shall enact a model enactment prepared by the commissioner
50 of taxation and finance pursuant to article 29 of the tax law (i) to
51 amend its local law, ordinance or resolution imposing such taxes to
52 provide that the exemption will not apply as of the effective date of
53 section one of this act, or (ii) in the case of such city of one million
54 or more, which shall be deemed to amend section 1107 of the tax law to
55 provide that the exemption will not apply as of the effective date of
56 section one of this act as if an amendment to such section 1107 had been
S. 1410 27 A. 2110
1 duly enacted by the state legislature and approved by the governor;
2 provided that any such enactment shall be effective and such section
3 1107 shall be deemed amended only if such municipality gives notice to
4 the commissioner of taxation and finance in accordance with the
5 provisions of subdivision (d) of section 1210 or section 1211 of the tax
6 law, provided that the 90 day minimum notice requirement to such commis-
7 sioner shall be deemed complied with if such municipality mails a certi-
8 fied copy of its enactment to such commissioner by certified or regis-
9 tered mail at least 40 days prior to the date section one of this act
10 shall have taken effect, and such municipality also complies with the
11 provisions of subdivision (e) of such section 1210 or section 1211, as
12 the case may be.
13 (b) If a city, county or school district imposing sales and compensat-
14 ing use taxes pursuant to the authority of paragraph 1 of subdivision
15 (a) of section 1210 or section 1211 of the tax law or a city having a
16 population of one million or more in which the taxes imposed by section
17 1107 of this chapter are in effect has not elected the exemption for
18 clothing and footwear described in paragraph 30 of subdivision (a) of
19 section 1115 of the tax law prior to the date this act shall have become
20 a law, or has elected such exemption to take effect on March 1, 2004, or
21 later, but such municipality wishes to elect such exemption as amended
22 by section one of this act to be effective on the same date such section
23 one takes effect, such municipality, acting through its local legisla-
24 tive body, shall enact a model enactment prepared by the commissioner of
25 taxation and finance pursuant to article 29 of the tax law (i) to amend
26 its local law, ordinance or resolution imposing such taxes to provide
27 for such amended exemption effective on such date, or (ii) in the case
28 of such city having a population of one million or more, which shall be
29 deemed to amend such section 1107 of the tax law to provide for such
30 amended exemption effective on such date as if an amendment to such
31 section 1107 had been duly enacted by the state legislature and approved
32 by the governor; provided that any such enactment shall be effective and
33 such section 1107 shall be deemed amended only if such municipality
34 gives notice to the commissioner of taxation and finance in accordance
35 with the provisions of subdivision (d) of section 1210 or section 1211
36 of the tax law, provided that the 90 day minimum notice requirement to
37 such commissioner shall be deemed complied with if such municipality
38 mails a certified copy of its enactment to such commissioner by certi-
39 fied or registered mail at least 40 days prior to the date section one
40 of this act shall have taken effect, and such municipality also complies
41 with the provisions of subdivision (e) of such section 1210 or section
42 1211, as the case may be.
43 § 4. The provisions of sections one through three of this act, section
44 1107 of the tax law and paragraph 1 of subdivision (a) of section 1210
45 of the tax law, and of any resolution enacted pursuant thereto, taken
46 separately or together, shall not be construed by any person or any
47 court or other entity as either (i) a failure or refusal to continue to
48 impose the taxes imposed by section 1107 of the tax law, as such taxes
49 may from time to time be amended, or (ii) as a reduction in the rate at
50 which such taxes are imposed. After sections one through three of this
51 act shall have become a law, the taxes imposed by such section 1107 of
52 the tax law on receipts from retail sales of and consideration given or
53 contracted to be given for purchases of clothing and footwear shall
54 (except as provided in section two of this act for the periods set forth
55 therein if a city of one million or more enacts a resolution pursuant to
56 the authority of subdivision (k) of section 1210 of the tax law, as
S. 1410 28 A. 2110
1 amended by section two of this act, or allows a resolution enacted
2 pursuant to the authority of such subdivision (k) of section 1210 to
3 continue in effect as provided in section three of this act) continue to
4 apply, persons liable for such taxes on purchases of such clothing and
5 footwear shall continue to be liable for such taxes, persons required to
6 collect such taxes on such clothing and footwear shall continue to be
7 required to collect and pay over such taxes to the commissioner of taxa-
8 tion and finance, such commissioner shall continue to be required to
9 certify such taxes on such clothing and footwear as provided by article
10 28 of the tax law and section 92-d of the state finance law and the
11 state comptroller shall continue to be required to deposit, appropriate
12 and pay over such taxes as required by such section 92-d of the state
13 finance law, in the manner and to the extent as if sections one through
14 three of this act had not become a law.
15 § 5. This act shall take effect immediately; provided, however, that
16 section one of this act shall take effect June 1, 2003 and shall apply
17 in accordance with the applicable transitional provisions of section
18 1106 of the tax law.
19 PART D
20 Section 1. Paragraph 3 of subsection (c) of section 658 of the tax
21 law, as added by chapter 576 of the laws of 1994, is amended to read as
22 follows:
23 (3) Filing fees. Every subchapter K limited liability company, and
24 every limited liability partnership under article eight-B of the part-
25 nership law and every foreign limited liability partnership, which has
26 any income derived from New York sources, determined in accordance with
27 the applicable rules of section six hundred thirty-one as in the case of
28 a nonresident individual, shall, [at the prescribed time for making the
29 return required under paragraph one of this subsection] within thirty
30 days after the last day of the taxable year, make a payment of a filing
31 fee. The amount of the filing fee shall be the product of (a) [fifty]
32 one hundred dollars and (b) the number of members of such company or
33 number of partners of such partnership, as the case may be, as of the
34 last day of the taxable year, but in no event shall such fee be less
35 than [three] five hundred [twenty-five] dollars nor more than [ten]
36 twenty-five thousand dollars. Where such fee is not timely paid, it
37 shall be paid upon notice and demand and shall be assessed, collected
38 and paid in the same manner as taxes, and for such purposes any refer-
39 ence in this article to tax imposed by this article shall be deemed also
40 to refer to the fee prescribed herein.
41 § 2. This act shall take effect immediately and shall apply to taxable
42 years beginning on or after January 1, 2003.
43 PART E
44 Section 1. Section 556 of the real property tax law is amended by
45 adding a new subdivision 11 to read as follows:
46 11. (a) The provisions of this subdivision shall apply only to refunds
47 of taxes and payments in lieu of taxes paid by a qualified empire zone
48 enterprise (hereinafter referred to as a "QEZE") which has been allowed
49 the QEZE credit for real property taxes pursuant to section fifteen of
50 the tax law.
51 (b) Pursuant to the provisions of this section, an appropriate tax
52 levying body shall refund to any QEZE a portion of any tax, or of any
S. 1410 29 A. 2110
1 payment in lieu of taxes, paid by any such QEZE in an amount equal to
2 the amount specified on the QEZE real property tax refund voucher issued
3 by the commissioner of taxation and finance, where application for such
4 refund is made within one year from the issuance of such voucher. For
5 purposes of this subdivision, a payment in lieu of taxes shall be deemed
6 equivalent to a tax, and a claim for a refund of a payment in lieu of
7 taxes shall be submitted and processed in the same manner as a claim for
8 a refund of a tax.
9 (c) Whenever a QEZE receives a QEZE real property tax refund voucher
10 issued by the commissioner of taxation and finance, it may file an
11 application in duplicate, accompanied by the original voucher, with the
12 appropriate county director of real property tax services for a refund
13 of the amount specified on such voucher, whether such amount relates to
14 property taxes or a payment in lieu of taxes. Such application form
15 shall be prescribed specifically for purposes of this subdivision by the
16 state board, in consultation with the commissioner of taxation and
17 finance, and shall be furnished to each QEZE by such commissioner with
18 each QEZE real property tax refund voucher he or she issues.
19 (d) Upon the filing of such an application, the county director and
20 tax levying body shall perform the duties enjoined upon them by subdivi-
21 sions four and five of this section, respectively, except that (i) the
22 scope of the county director's review shall be limited to whether or not
23 the taxes or payments in lieu of taxes relating to the parcel or parcels
24 in question have in fact been paid, and (ii) the tax levying body shall
25 be obliged to approve the refund if the county director's finding is in
26 the affirmative.
27 (e) The amount refunded shall be a charge upon each city, town,
28 village, and school district to the extent of any such city, town,
29 village, or school district taxes that were so refunded, and the amounts
30 so charged shall be included in the next ensuing tax levy by or on
31 behalf of such city, town, village, or school district, notwithstanding
32 any special or local law that might otherwise require the assessing unit
33 to bear the cost of refunds. Where an amount refunded relates to city
34 school district taxes on property located within a city with a popu-
35 lation of less than one hundred twenty-five thousand inhabitants, such
36 amount shall be charged to such city, which shall in turn charge such
37 amount to such school district. The provisions of this paragraph shall
38 be equally applicable to a refund involving a payment in lieu of taxes,
39 except that the cost of such a refund shall be apportioned among each
40 county, city, town, village, or school district in the same proportion
41 as the payment in lieu of taxes was apportioned among them.
42 (f) The provisions of subdivision seven of this section shall be
43 applicable to the processing of QEZE real property tax refunds pursuant
44 to this subdivision, except that the county director is authorized and
45 directed to act on behalf of a village, whether or not the village has
46 enacted a local law as provided in subdivision three of section fourteen
47 hundred two of this chapter. If a village which has not enacted such a
48 local law is duly charged with a share of a refund pursuant to this
49 subdivision and fails to pay such amount so charged, the county may levy
50 such amount upon the taxable real property within the village in
51 conjunction with an ensuing county tax levy.
52 (g) In the event that no appropriation for such a refund is included
53 in the annual budget next adopted after submission of such claim, and
54 the refund to which the QEZE was entitled, after timely application
55 therefor has been made, remains unpaid, the QEZE may submit a copy of
56 the QEZE real property tax refund voucher and the refund application to
S. 1410 30 A. 2110
1 the tax collecting officer when paying its next property tax bill. The
2 tax collecting officer shall accept such submission from the QEZE as the
3 equivalent of a payment toward the tax bill of cash in the amount of the
4 refund stated on such voucher, plus interest computed from the date the
5 application for the refund was filed by the QEZE; provided that the
6 balance due on the tax bill is paid concurrently in legal tender. The
7 provisions of this paragraph shall not affect the responsibility of any
8 municipal corporation to make another municipal corporation whole for
9 unpaid taxes.
10 (h) The provisions of subdivision eight of this section shall be
11 applicable to the processing of QEZE real property tax refunds pursuant
12 to this subdivision.
13 (i) In a city with a population of five million or more, a claim for a
14 QEZE real property tax refund shall be submitted to the commissioner of
15 finance of such city, who shall process and pay such refund claim in the
16 same manner as a claim for a refund of an overpayment of real property
17 taxes, notwithstanding any provision of law to the contrary. A claim for
18 a refund of a payment in lieu of taxes shall be submitted and processed
19 in the same manner as a claim for a refund of a tax. If a refund to
20 which a QEZE is entitled remains unpaid, the provisions of paragraph (g)
21 of this subdivision shall apply. The state board may prescribe a sepa-
22 rate QEZE real property tax refund application form for use within such
23 city in consultation with the commissioner of finance of such city as
24 well as with the state commissioner of taxation and finance.
25 § 2. Subdivision 3 of section 559 of the real property tax law, as
26 added by chapter 177 of the laws of 1974, is amended to read as follows:
27 3. This title shall apply to all municipal corporations except a city
28 with a population of five million or more, subject to the provisions of
29 subdivision eleven of section five hundred fifty-six of this title.
30 § 3. Subdivisions (a), (b), and (e) of section 15 of the tax law,
31 subdivision (a) as added by section 2 of part GG of chapter 63 of the
32 laws of 2000, subdivision (b) as amended by section 11 of part CC of
33 chapter 85 of the laws of 2002, and subdivision (e) as amended by
34 section 12 of part CC of chapter 85 of the laws of 2002, are amended to
35 read as follows:
36 (a) Allowance of credit. A taxpayer which is a qualified empire zone
37 enterprise (QEZE), or which is a sole proprietor of a QEZE or a member
38 of a partnership which is a QEZE, and which is subject to tax under
39 article nine-A, twenty-two, thirty-two, or thirty-three of this chapter,
40 shall be allowed a credit against such tax, pursuant to the provisions
41 referenced in subdivision [(f)] (i) of this section, for eligible real
42 property taxes.
43 (b) Amount of credit. (1) The amount of the credit shall be the prod-
44 uct (or pro rata share of the product, in the case of a member of a
45 partnership) of (i) the benefit period factor, (ii) the employment
46 increase factor, and (iii) the eligible real property taxes paid or
47 incurred by the QEZE during the taxable year.
48 (2) In the case of a QEZE certified pursuant to article eighteen-B of
49 the general municipal law on or after January first, two thousand four,
50 the amount of the credit shall be fifty percent of the product (or pro
51 rata share of the product, in the case of a member of a partnership) of
52 (i) the benefit period factor, (ii) the employment increase factor, and
53 (iii) the eligible real property taxes paid or incurred by the QEZE
54 during the taxable year.
55 (3) However, the amount of the credit may not exceed the credit limi-
56 tation set forth in subdivision (f) of this section.
S. 1410 31 A. 2110
1 (e) Eligible real property taxes. The term "eligible real property
2 taxes" means taxes imposed on real property which is owned by the QEZE
3 and located in an empire zone with respect to which the QEZE is certi-
4 fied pursuant to article eighteen-B of the general municipal law[,];
5 provided that such taxes become a lien on the real property during a
6 taxable year in which the owner of the real property is both certified
7 pursuant to article eighteen-B of the general municipal law and a quali-
8 fied empire zone enterprise. In addition, the term "eligible real prop-
9 erty taxes" includes payments in lieu of taxes made by the QEZE to the
10 state, a municipal corporation, or a public benefit corporation pursuant
11 to a written agreement entered into between the QEZE and the state,
12 municipal corporation, or public benefit corporation[. Provided];
13 provided, however, that a payment in lieu of taxes made by the QEZE
14 pursuant to a written agreement executed or amended on or after January
15 first, two thousand one, shall not constitute eligible real property
16 taxes [unless such written agreement is approved by both the department
17 of economic development and the office of real property services as
18 satisfying generally accepted and recognized norms and standards of real
19 property tax appraisals] in any taxable year to the extent that such
20 payment exceeds the product of (1) the greater of (i) the cost or other
21 basis for federal income tax purposes, determined on the later of Janu-
22 ary first, two thousand one or the effective date of the QEZE's certif-
23 ication pursuant to article eighteen-B of the general municipal law, of
24 real property, including buildings and structural components of build-
25 ings, owned by the QEZE and located in empire zones with respect to
26 which the QEZE is certified pursuant to such article eighteen-B of the
27 general municipal law, or (ii) the cost or other basis for federal
28 income tax purposes of such real property described in clause (i) of
29 this sentence on the last day of the taxable year, and (2) the estimated
30 effective full value tax rate within the county in which such property
31 is located, as most recently reported to the commissioner by the secre-
32 tary of the state board of real property services, or his or her desig-
33 nee. Such state board shall annually calculate estimated effective full
34 value tax rates within each county for this purpose based upon the most
35 current information available to it in relation to county, city, town,
36 village, and school district taxes.
37 § 4. Subdivision (h) of section 15 of the tax law, as relettered by
38 section 13 of part CC of chapter 85 of the laws of 2002, is relettered
39 subdivision (i) and a new subdivision (h) is added to read as follows:
40 (h) Real property tax refund vouchers. For taxable years beginning on
41 or after January first, two thousand four, for all QEZEs subject to the
42 provisions of paragraph two of subdivision (b) of this section, within
43 sixty days of final approval of the amount of credit allowed to a QEZE
44 pursuant to this section for any taxable year, the commissioner shall
45 issue to such QEZE a real property tax refund voucher in the amount of
46 the credit allowed. Such QEZE shall use such voucher to obtain a refund
47 pursuant to subdivision eleven of section five hundred fifty-six of the
48 real property tax law of a portion of real property taxes paid. Such
49 voucher shall be in a form prescribed by the commissioner, in consulta-
50 tion with the state board of real property services, and shall contain
51 all information deemed necessary to administer the refund provisions in
52 such subdivision eleven. The commissioner shall include an application
53 form to be used to apply for a refund pursuant to such subdivision elev-
54 en with the QEZE real property tax refund voucher. In the event that the
55 QEZE is required by subdivision (g) of this section to recapture a
56 portion of credit allowed, the amount set forth on the voucher as credit
S. 1410 32 A. 2110
1 allowed shall be reduced by the amount of credit required to be added
2 back pursuant to subdivision (g) of this section.
3 § 5. This act shall take effect immediately; provided, however, that
4 sections three and four of this act shall apply to taxable years begin-
5 ning on or after January 1, 2004, except that the amendment to subdivi-
6 sion (e) of section 15 of the tax law made by section three of this act
7 shall apply to taxable years beginning on or after January 1, 2003.
8 PART F
9 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax
10 law is amended by adding a new subparagraph 16 to read as follows:
11 (16) In the case of a taxpayer subject to the modification provided by
12 subparagraph sixteen of paragraph (b) of this subdivision, the amount
13 required to be recaptured pursuant to subsection (d) of section 179 of
14 the internal revenue code with respect to property upon which such
15 modification was based.
16 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is
17 amended by adding a new subparagraph 16 to read as follows:
18 (16) In the case of a taxpayer which is not an eligible farmer as
19 defined in paragraph (b) of subdivision twenty-two of section two
20 hundred ten of this article, the amount of any deduction claimed pursu-
21 ant to section 179 of the internal revenue code with respect to a sport
22 utility vehicle which is not a passenger automobile as defined in para-
23 graph 5 of subsection (d) of section 280F of the internal revenue code.
24 § 3. Subsection (b) of section 612 of the tax law is amended by adding
25 a new paragraph 36 to read as follows:
26 (36) In the case of a taxpayer who is not an eligible farmer as
27 defined in subsection (n) of section six hundred six of this article,
28 the amount of any deduction claimed pursuant to section 179 of the
29 internal revenue code with respect to a sport utility vehicle which is
30 not a passenger automobile as defined in paragraph 5 of subsection (d)
31 of section 280F of the internal revenue code.
32 § 4. Subsection (c) of section 612 of the tax law is amended by adding
33 a new paragraph 37 to read as follows:
34 (37) In the case of a taxpayer subject to the modification provided by
35 paragraph thirty-six of subsection (b) of this section, the amount
36 required to be recaptured pursuant to subsection (d) of section 179 of
37 the internal revenue code with respect to property upon which such
38 modification was based.
39 § 5. This act shall take effect immediately and shall apply to taxable
40 years beginning on and after January 1, 2003.
41 PART G
42 Section 1. Subsection (c) of section 658 of the tax law is amended by
43 adding a new paragraph 4 to read as follows:
44 (4) Estimated tax of nonresident partners, members and shareholders.
45 (A) General. Every entity which is a partnership, subchapter K limited
46 liability company or an S corporation for which the election provided
47 for in subsection (a) of section six hundred sixty of this article is in
48 effect, which has partners, members or shareholders who are nonresident
49 individuals, as defined under subsection (b) of section six hundred five
50 of this article, or C corporations, and which has any income derived
51 from New York sources, determined in accordance with the applicable
52 rules of section six hundred thirty-one of this article as in the case
S. 1410 33 A. 2110
1 of a nonresident individual, shall pay estimated tax on such income on
2 behalf of such partners, members or shareholders in the manner and at
3 the times prescribed by subsection (c) of section six hundred eighty-
4 five of this article. For purposes of this paragraph, the term "esti-
5 mated tax" shall mean a partner's, member's or shareholder's distribu-
6 tive share or pro rata share of the entity income derived from New York
7 sources, multiplied by the highest rate of tax prescribed by section six
8 hundred one of this article for the taxable year of any partner, member
9 or shareholder who is an individual taxpayer, or paragraph (a) of subdi-
10 vision one of section two hundred ten of this chapter for the taxable
11 year of any partner, member or shareholder which is a C corporation,
12 whether or not such C corporation is subject to tax under article nine,
13 nine-A, thirty-two, or thirty-three of this chapter, and reduced by the
14 distributive share or pro rata share of any credits determined under
15 section one hundred eighty-seven, one hundred eighty-seven-a, six
16 hundred six, fourteen hundred fifty-six or fifteen hundred eleven of
17 this chapter, whichever is applicable, derived from the entity.
18 (B) Treatment of payment. Any payment by the entity under this para-
19 graph with respect to a partner, member or shareholder who is an indi-
20 vidual shall be deemed to be a payment of estimated tax by the partner,
21 member or shareholder pursuant to subsection (c) of section six hundred
22 eighty-five of this article.
23 (C) Additions to tax. (i) If an entity required by this paragraph to
24 pay estimated tax on behalf of a partner, member or shareholder fails to
25 do so, such entity shall pay a penalty of fifty dollars for each such
26 failure for each such partner, member or shareholder, unless it is shown
27 that such failure is due to reasonable cause and not due to willful
28 neglect.
29 (ii) In the case of an underpayment of estimated tax by the entity,
30 there shall be added to the estimated tax required to be paid by the
31 entity under this paragraph, an amount determined pursuant to subsection
32 (c) of section six hundred eighty-five of this article.
33 (D) Exceptions. (i) This paragraph shall not apply with respect to a
34 partner, member or shareholder for whom estimated tax required to be
35 paid under subparagraph (A) of this paragraph for the taxable year of
36 the partner, member or shareholder does not exceed three hundred
37 dollars.
38 (ii) This paragraph shall not apply with respect to any partner,
39 member or shareholder if the entity is authorized by the commissioner to
40 file a group return and such partner, member or shareholder has elected
41 to be included on the group return.
42 (E) Information statements. Every entity required under this paragraph
43 to pay estimated taxes for any of its partners, members or shareholders
44 shall furnish, within thirty days after such estimated tax is paid, to
45 each such partner, member or shareholder a written statement showing the
46 estimated taxes paid by the entity on behalf of such partner, member or
47 shareholder and any other information the commissioner shall prescribe,
48 including any information necessary to identify each partner, member or
49 shareholder on whose behalf the entity has paid estimated taxes. The
50 entity shall provide to the commissioner information necessary to iden-
51 tify the estimated tax paid by the entity for each partner, member or
52 shareholder and information necessary to identify each partner, member
53 or shareholder of the partnership, limited liability company or S corpo-
54 ration, whether or not estimated tax was paid for such partner, member
55 or shareholder by the entity, at such times and in such manner as the
56 commissioner shall prescribe.
S. 1410 34 A. 2110
1 § 2. Section 197-b of the tax law is amended by adding a new subdivi-
2 sion 11 to read as follows:
3 11. Any amount paid pursuant to paragraph four of subsection (c) of
4 section six hundred fifty-eight of this chapter on behalf of a taxpayer
5 subject to tax under this article shall be applied against the estimated
6 tax of the taxpayer for the taxable year shown on the declaration
7 required to be filed pursuant to section one hundred ninety-seven-a of
8 this article, or if no declaration is filed pursuant to such section,
9 any such amount shall be considered a payment on account of the tax
10 shown on the report required to be filed by the taxpayer for such taxa-
11 ble year.
12 § 3. The opening paragraph of subdivision (d) of section 213-b of the
13 tax law is designated paragraph 1 and a new paragraph 2 is added to read
14 as follows:
15 (2) Any amount paid pursuant to paragraph four of subsection (c) of
16 section six hundred fifty-eight of this chapter on behalf of a taxpayer
17 subject to tax under this article shall be applied against the estimated
18 tax of the taxpayer for the taxable year shown on the declaration
19 required to be filed pursuant to section two hundred thirteen-a of this
20 article, or if no declaration is filed pursuant to such section, any
21 such amount shall be considered a payment on account of the tax on the
22 return required to be filed by the taxpayer for such taxable year.
23 § 4. The opening paragraph of subsection (d) of section 1461 of the
24 tax law is designated paragraph 1 and a new paragraph 2 is added to read
25 as follows:
26 (2) Any amount paid pursuant to paragraph four of subsection (c) of
27 section six hundred fifty-eight of this chapter on behalf of a taxpayer
28 subject to tax under this article shall be applied against the estimated
29 tax of the taxpayer for the taxable year shown on the declaration
30 required to be filed pursuant to section fourteen hundred sixty of this
31 article, or if no declaration is filed pursuant to such section, any
32 such amount shall be considered a payment on account of tax shown on the
33 return required to be filed by the taxpayer for such taxable year.
34 § 5. The opening paragraph of subdivision (d) of section 1514 of the
35 tax law is designated paragraph 1 and a new paragraph 2 is added to read
36 as follows:
37 (2) Any amount paid pursuant to paragraph four of subsection (c) of
38 section six hundred fifty-eight of this chapter on behalf of a taxpayer
39 subject to tax under this article shall be applied against the estimated
40 tax of the taxpayer for the taxable year shown on the declaration
41 required to be filed pursuant to section fifteen hundred thirteen of
42 this article, or if no declaration is filed pursuant to such section,
43 any such amount shall be considered a payment on account of the tax
44 shown on the return required to be filed by the taxpayer for such taxa-
45 ble year.
46 § 6. Section 686 of the tax law is amended by adding a new subsection
47 (i) to read as follows:
48 (i) Overpayment.--In case of an overpayment of tax required to be paid
49 by an entity as an estimated tax under paragraph four of subsection (c)
50 of section six hundred fifty-eight of this article, a refund shall be
51 made to such entity only to the extent that such overpayment is attrib-
52 utable to a partner, member or shareholder for whom the entity is not
53 required to pay such estimated tax.
54 § 7. Any estimated tax payments required to be made by this act prior
55 to September 15, 2003 shall be deemed timely if made by September 15,
56 2003, and no additions to tax or penalty imposed under subparagraph (C)
S. 1410 35 A. 2110
1 of paragraph four of subsection (c) of section six hundred fifty-eight
2 of the tax law, as added by section one of this act, shall apply with
3 respect to any estimated tax payments required to be made prior to
4 September 15, 2003, provided that the entity required to make such esti-
5 mated tax payments makes any such estimated tax payments by September
6 15, 2003.
7 § 8. This act shall take effect immediately and shall apply to taxable
8 years ending after December 31, 2002.
9 PART H
10 Section 1. Subsections (dd) and (ee) of section 606 of the tax law, as
11 relettered by section 1 of part DD of chapter 63 of the laws of 2000 are
12 relettered (yy) and (zz) and a new subsection (dd) is added to read as
13 follows:
14 (dd) Historic homeownership rehabilitation credit. (1) A taxpayer
15 shall be allowed a credit, to be computed as hereinafter provided,
16 against the tax imposed by this article. The amount of the credit shall
17 be equal to either fifteen or twenty-five percent of the qualified reha-
18 bilitation expenditures made by the taxpayer with respect to a qualified
19 historic home and may be allowed in the taxable year in which the final
20 certification step of the certified rehabilitation is completed.
21 (A) A credit in the amount of fifteen percent shall be allowed for
22 qualified rehabilitation expenditures if only the exterior work has been
23 approved by a local landmark commission established pursuant to section
24 ninety-six-a or one hundred nineteen-dd of the general municipal law or
25 by the office of parks, recreation and historic preservation.
26 (B) A credit in the amount of twenty-five percent shall be allowed for
27 qualified rehabilitation expenditures that have been approved by the
28 office of parks, recreation and historic preservation or by a local
29 government certified pursuant to section 101(c)(1) of the national
30 historic preservation act. Under this subparagraph, approval is neces-
31 sary for the qualified rehabilitation expenditures related to both the
32 exterior work on the qualified historic home and interior work affecting
33 primary significant historic spaces of the qualified historic home.
34 (C) With respect to any particular residence of a taxpayer, that
35 taxpayer shall be allowed either the credit provided for in subparagraph
36 (A) or (B) of this paragraph, but not both credits.
37 (2) (A) With respect to any particular residence of a taxpayer, the
38 credit allowed under either subparagraph (A) or (B) of paragraph one of
39 this subsection shall not exceed fifty thousand dollars. In the case of
40 a husband and wife, the amount of the credit shall be divided between
41 them equally or in such other manner as they may both elect. If a
42 taxpayer incurs qualified rehabilitation expenditures in relation to
43 more than one residence in the same year, the total amount of credit
44 allowed under either subparagraph (A) or (B) of paragraph one of this
45 subsection for all such expenditures shall not exceed fifty thousand
46 dollars.
47 (B) If the credit allowed under either subparagraph (A) or (B) of
48 paragraph one of this subsection for any taxable year exceeds the
49 taxpayer's tax for such year and the taxpayer's New York adjusted gross
50 income for such year does not exceed one hundred thousand dollars, the
51 excess credit shall be treated as an overpayment of tax to be credited
52 or refunded in accordance with the provisions of section six hundred
53 eighty-six of this article, provided, however, that no interest shall be
54 paid thereon. If the taxpayer's New York adjusted gross income for such
S. 1410 36 A. 2110
1 year exceeds one hundred thousand dollars, the excess credit may be
2 carried over to the following year or years and may be deducted from the
3 taxpayer's tax for such year or years.
4 (3)(A) The term "qualified rehabilitation expenditure" means, for
5 purposes of this subsection, any amount properly chargeable to a capital
6 account:
7 (i) in connection with the certified rehabilitation of a qualified
8 historic home, and
9 (ii) for property for which depreciation would be allowable under
10 section 168 of the internal revenue code if the qualified historic home
11 were used in a trade or business.
12 (B) Such term shall not include (i) the cost of acquiring any building
13 or interest therein, (ii) any expenditure attributable to the enlarge-
14 ment of an existing building, or (iii) any expenditure made prior to
15 January first, two thousand three.
16 (C) Such term shall not include any expenditure in connection with the
17 rehabilitation of a qualified historic home unless at least five percent
18 of the total expenditures made in the rehabilitation process are alloca-
19 ble to the rehabilitation of the exterior of such building.
20 (D) If only a portion of a building is used as a residence of the
21 taxpayer, only qualified rehabilitation expenditures which are properly
22 allocable to such residential portion shall be taken into account under
23 this subsection.
24 (4)(A) The term "certified rehabilitation" means, for purposes of this
25 subsection, any rehabilitation of a certified historic structure which
26 has been approved and certified as being consistent with the standards
27 established by the commissioner of parks, recreation and historic pres-
28 ervation for rehabilitation by the office of parks, recreation and
29 historic preservation, a local government certified pursuant to section
30 101(c)(1) of the national historic preservation act or a local landmark
31 commission established pursuant to section ninety-six-a or one hundred
32 nineteen-dd of the general municipal law.
33 (B) A certified rehabilitation shall require:
34 (i) an initial certification that the structure meets the definition
35 of the term "certified historic structure";
36 (ii) a second certification, to be issued prior to construction,
37 certifying that the proposed rehabilitation work is consistent with
38 standards established by the commissioner of parks, recreation and
39 historic preservation for rehabilitation; and
40 (iii) a final certification issued when construction is completed,
41 certifying that the work was completed as proposed and that the costs
42 are consistent with the work completed. Such final certification shall
43 be acceptable as proof that the expenditures related to such
44 construction qualify as qualified rehabilitation expenditures for
45 purposes of the credit allowed under either subparagraph (A) or (B) of
46 paragraph one of this subsection.
47 (5)(A) The term "qualified historic home" means, for purposes of this
48 subsection, a certified historic structure located within New York
49 state:
50 (i) which has been substantially rehabilitated,
51 (ii) which, or any portion of which, is owned, in whole or part, by
52 the taxpayer,
53 (iii) in which the taxpayer resides during the taxable year in which
54 the taxpayer is allowed a credit under this subsection, and
55 (iv) which is either in whole or in part a targeted area residence
56 within the meaning of section 143(j) of the internal revenue code, or
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1 located within a state empire zone designated under article eighteen-B
2 of the general municipal law.
3 (B) A building shall be treated as having been "substantially rehabil-
4 itated" if the qualified rehabilitation expenditures in relation to such
5 building total five thousand dollars or more.
6 (6) The term "certified historic structure" means, for purposes of
7 this subsection, any building (and its structural components) which;
8 (i) is listed in the state or national register of historic places, or
9 (ii) is located in a state or national registered historic district
10 and is certified as being of historic significance to the district.
11 (7) If the taxpayer holds stock as a tenant-shareholder in a cooper-
12 ative housing corporation, such taxpayer shall be treated as owning the
13 house or apartment which the taxpayer is entitled to occupy as such
14 shareholder.
15 (8)(A) A percentage of the total expenditures made in the rehabili-
16 tation of the exterior of a building containing cooperative or condomin-
17 ium dwelling units shall be attributed to each such unit within the
18 building based on the percentage of space each such unit occupies within
19 the building.
20 (B) In the case of a building where less than the entire building is
21 used as a residence of the taxpayer, only the portion of the total
22 expenditures made in the rehabilitation of the building that is attrib-
23 utable to the residence of the taxpayer shall be treated as qualified
24 rehabilitation expenditures for the purposes of this subsection.
25 (C) In the case of a building that is owned by and is a residence of
26 two or more persons, other than a husband and wife, the portion of the
27 total expenditures made in the rehabilitation of the building that is
28 attributable to each taxpayer shall be equal to the taxpayer's share of
29 ownership in such building.
30 (9) In the case of a building other than a building to which paragraph
31 ten of this subsection applies, qualified rehabilitation expenditures
32 shall be treated for purposes of this subsection as made on the date of
33 the final certification referred to in clause (iii) of subparagraph (B)
34 of paragraph four of this subsection.
35 (10)(A) In the case of a purchased qualified historic home, the
36 taxpayer shall be treated as having made, on the date of purchase, the
37 qualified rehabilitation expenditures made by the seller of such home.
38 For purposes of this subsection, expenditures made by the seller shall
39 be deemed qualified rehabilitation expenditures if such expenditures, if
40 made by the purchaser, would have so qualified.
41 (B) The term "purchased qualified historic home" means any qualified
42 historic home purchased by the taxpayer if:
43 (i) the taxpayer is the first purchaser of such home after the date of
44 the final certification referred to in clause (iii) of subparagraph (B)
45 of paragraph four of this subsection, and the purchase occurs within
46 five years after such date,
47 (ii) the taxpayer, during the taxable year in which the taxpayer is
48 allowed a credit under this subsection, resides in such home,
49 (iii) no credit was allowed to the seller under this subsection with
50 respect to such rehabilitation, and
51 (iv) the taxpayer is furnished with such information as the commis-
52 sioner determines is necessary to determine any credit under this
53 subsection.
54 (11)(A) If, before the end of the two-year period beginning either on
55 the date of the final certification referred to in clause (iii) of
56 subparagraph (B) of paragraph four of this subsection or, if paragraph
S. 1410 38 A. 2110
1 ten of this subsection applies, on the date of purchase of such building
2 by the taxpayer, the taxpayer disposes of such taxpayer's interest in
3 such building, or such building ceases to be used as a residence of the
4 taxpayer, the taxpayer's tax imposed by this article for the taxable
5 year in which such disposition or cessation occurs shall be increased by
6 the recapture portion of the credit allowed under this subsection for
7 all prior taxable years with respect to such rehabilitation.
8 (B) For purposes of subparagraph (A) of this paragraph, the recapture
9 portion shall be the product of the amount of credit claimed by the
10 taxpayer multiplied by a ratio, the numerator of which is equal to twen-
11 ty-four less the number of months the building is used as the taxpayer's
12 residence and the denominator of which is twenty-four.
13 (12) Nothing contained in this subsection shall be construed to impose
14 a duty upon a local landmark commission established pursuant to section
15 ninety-six-a or one hundred nineteen-dd of the general municipal law or
16 a local government certified pursuant to section 101(c)(1) of the
17 national historic preservation act to undertake any review or approval
18 of an application for the certification of the rehabilitation of histor-
19 ic structures and of rehabilitation expenditures provided for in this
20 subsection.
21 § 2. Section 13.15 of the parks, recreation and historic preservation
22 law is amended by adding a new subdivision 6 to read as follows:
23 6. The office may establish a fee or fees for its processing and
24 review of applications for the certification of the rehabilitation of
25 historic buildings and the approval of rehabilitation expenditures and
26 related work pursuant to subsection (dd) of section six hundred six of
27 the tax law. All revenues from these fees shall be deposited by the
28 comptroller in the miscellaneous special revenue fund to be credited to
29 the agency's patron services account and shall be used to support the
30 office's historic preservation program. Nothing in this subdivision
31 shall be construed to limit the ability of a local landmark commission
32 established pursuant to section ninety-six-a or one hundred nineteen-dd
33 of the general municipal law or a local government certified pursuant to
34 section 101(c)(1) of the national historic preservation act to establish
35 and charge fees for its processing and review of applications for the
36 certification of the rehabilitation of historic buildings and the
37 approval of rehabilitation expenditures.
38 § 3. This act shall take effect immediately and shall apply to taxable
39 years beginning on or after January 1, 2004.
40 PART I
41 Section 1. Paragraph 3 of subdivision (a) of section 11 of the tax
42 law, as amended by section 1 of part FF of chapter 63 of the laws of
43 2000, is amended to read as follows:
44 (3) "Certified capital company" - a partnership, corporation, trust or
45 limited liability company, organized on a for-profit basis that is
46 located, headquartered and licensed or registered to conduct business in
47 New York, or any subsidiary of the New York state urban development
48 corporation, that has as its primary business activity the investment of
49 cash in qualified businesses and that is certified by the department as
50 meeting the criteria set forth in subdivision (b) of this section.
51 § 2. Subparagraph (A) of paragraph 6 of subdivision (a) of section 11
52 of the tax law, as amended by section 1 of part FF of chapter 63 of the
53 laws of 2000, is amended to read as follows:
S. 1410 39 A. 2110
1 (A) It is headquartered in New York state, and its principal business
2 operations are located in New York state, and the qualified investment
3 it receives is used solely to support its business operations in the
4 state, except for advertising, promotions and sales purposes. In cases
5 where the qualified investment is made in a start-up company such capi-
6 tal must be used solely to establish and support its business operations
7 in New York state, except for advertising, promotions and sales
8 purposes. For purposes of certified capital company program four, at
9 the time of the first investment in the business, such business may be
10 located outside New York state. However, within one year of such first
11 investment, such business must be headquartered in New York state, and
12 its principal business operations must be located in New York state. The
13 qualified investment such business receives must be used solely to pay
14 for the costs of such relocation to New York state or to support its
15 business operations in New York state, except for advertising, promotion
16 or sales purposes.
17 § 3. Subparagraph (C) of paragraph 6 of subdivision (a) of section 11
18 of the tax law, as amended by section 1 of part FF of chapter 63 of the
19 laws of 2000, is amended to read as follows:
20 (C) (i) It is involved in commerce for the purpose of developing and
21 manufacturing products and systems, including but not limited to high
22 technology products and systems such as computers, computer software,
23 medical equipment, biotechnology, telecommunications equipment and
24 products, processing or assembling all types of products, conducting
25 research and development on all types of products or providing services,
26 but excluding real estate, real estate development, insurance and busi-
27 nesses predominantly engaged in professional services provided by
28 accountants, lawyers or physicians.
29 (ii) In addition to the requirements set forth in clause (i) of this
30 subparagraph, with respect to certified capital company program four,
31 the qualified business must be involved in commerce by (I) having a
32 minimum relationship with a research center which has received financial
33 support from the state of New York through one of the following: the
34 centers of excellence program pursuant to section three of part T of
35 chapter eighty-four of the laws of two thousand two, the Gen*NY*sis
36 program pursuant to section five of part T of chapter eighty-four of the
37 laws of two thousand two, the centers for advanced technology program
38 authorized by section three thousand one hundred two-B of the public
39 authorities law, or the capital facilities program established under
40 section two hundred nine-P of the executive law, or (II) conducting a
41 high technology or biotechnology project authorized by the Rebuilding
42 the Empire State Through Opportunities in Regional Economies (RESTORE)
43 New York program pursuant to paragraph d of section six of part T of
44 chapter eighty-four of the laws of two thousand two. The insurance
45 department, in consultation with the New York state urban development
46 corporation and the office of science, technology and academic research,
47 shall promulgate rules and regulations that establish the requirements
48 for determining whether a business has a minimum relationship with a
49 research center described in item (I) of this clause.
50 § 4. Paragraph 2 of subdivision (b) of section 11 of the tax law, as
51 amended by section 1 of part FF of chapter 63 of the laws of 2000, is
52 amended to read as follows:
53 (2) The superintendent may certify partnerships, corporations, trusts
54 or limited liability companies, organized on a for profit basis, or any
55 subsidiary of the New York state urban development corporation, which
56 submit an application to be designated as a certified capital company if
S. 1410 40 A. 2110
1 such applicant is located, headquartered and licensed or registered to
2 conduct business in New York, has as its primary business activity the
3 investment of cash in qualified businesses and meets the other criteria
4 set forth in this subdivision.
5 § 5. Paragraph 9 of subdivision (b) of section 11 of the tax law, as
6 amended by section 1 of part FF of chapter 63 of the laws of 2000, is
7 amended to read as follows:
8 (9) The superintendent shall start accepting applications to become a
9 certified capital company in certified capital company program two by
10 November first, nineteen hundred ninety-nine, and shall start accepting
11 applications to become a certified capital company in certified capital
12 company program three by August first, two thousand. The superintendent
13 shall start accepting applications to become a certified capital company
14 in certified capital company program four by August first, two thousand
15 three.
16 § 6. Subparagraph (A) of paragraph 6 of subdivision (c) of section 11
17 of the tax law, as amended by section 1 of part FF of chapter 63 of the
18 laws of 2000, is amended to read as follows:
19 (A) As soon as practicable after the receipt of certified capital or
20 an irrevocable funding commitment subject only to the receipt of an
21 allocation pursuant to subdivision (h) of this section, (i) the name of
22 each certified investor from which the certified capital was received,
23 including such certified investor's insurance tax identification number;
24 (ii) the amount of each certified investor's investment of certified
25 capital; and (iii) the date on which the certified capital was received.
26 Provided, however, that requests for allocation of tax credits with
27 respect to certified capital company program two by certified capital
28 companies on behalf of their certified investors which are received by
29 the superintendent on or before March first, two thousand shall be
30 treated as having been received on March first, two thousand for tax
31 credits to be utilized in two thousand one, and if satisfactory, shall
32 be given equal priority for allocation, and provided, however, that
33 requests for allocation of tax credits with respect to certified capital
34 company program three by certified capital companies on behalf of their
35 certified investors which are received by the superintendent on or
36 before December first, two thousand shall be treated as having been
37 received on December first, two thousand for tax credits to be utilized
38 in two thousand two, and if satisfactory, shall be given equal priority
39 for allocation. Provided, however, that requests for allocation of tax
40 credits with respect to certified capital company program four by certi-
41 fied capital companies on behalf of their certified investors which are
42 received by the superintendent on or before December first, two thousand
43 three shall be treated as having been received on December first, two
44 thousand three for tax credits to be utilized in two thousand five, and
45 if satisfactory, shall be given equal priority for allocation.
46 § 7. Subdivision (h) of section 11 of the tax law is amended by adding
47 a new paragraph 4 to read as follows:
48 (4) Certified capital company program four. The aggregate amount of
49 certified capital for which taxpayers may be allocated and allowed tax
50 credits pursuant to this paragraph and subdivision (k) of section
51 fifteen hundred eleven of this chapter may not exceed two hundred fifty
52 million dollars for calendar year two thousand five, which certified
53 capital may be invested in certified capital companies beginning in
54 calendar year two thousand three.
55 During any calendar year in which the limitation described in this
56 paragraph will limit the amount of certified capital, certified capital
S. 1410 41 A. 2110
1 will be allocated in order of priority based upon the date of filing of
2 information described in subparagraph (A) of paragraph six of subdivi-
3 sion (c) of this section. The superintendent shall advise any certified
4 capital company in writing, within fifteen days after receiving such
5 filing, whether the limitations of this paragraph then in effect will be
6 applicable with respect to the investments and credits described in such
7 filing with the superintendent.
8 Certified capital may be raised by each certified capital company with
9 respect to certified capital program four at any time subsequent to its
10 certification date, and credits shall be allocated to and vested in
11 certified investors at the time of each such investment as provided in
12 this paragraph, although such credits shall not be first allowed or
13 incurred for state tax purposes, until, at the earliest, tax years
14 beginning in two thousand five.
15 § 8. Subdivision (i) of section 11 of the tax law, as amended by
16 section 1 of part FF of chapter 63 of the laws of 2000, is amended to
17 read as follows:
18 (i) Maximum certified capital. The maximum amount of certified capital
19 per certified capital company program invested in one or more certified
20 capital companies allowed in any one year to any one certified investor
21 shall not exceed ten million dollars for certified capital company
22 programs one [and], three and four, and eight million dollars for certi-
23 fied capital company program two for such year, provided, however, that
24 if the aggregate amount of certified capital for such year, as set forth
25 in subdivision (h) of this section, has not been reached sixty days
26 prior to the end of the year to which such aggregate amount applies, the
27 provisions of this subdivision shall cease to apply for the remainder of
28 such year. In addition, the aggregate amount of tax credits allowed in
29 any taxable year to any affiliated group of taxpayers in relation to
30 certified capital may not exceed such maximum amount, whether or not
31 such taxpayers file a combined return pursuant to subdivision (f) of
32 section fifteen hundred fifteen of this chapter. For purposes of the
33 preceding sentence, the term "affiliated group" shall have the same
34 meaning as described in section 1504 of the internal revenue code,
35 except that the references to "at least eighty percent" in such section
36 1504 shall be read as "more than fifty percent".
37 § 9. Paragraph 1 of subdivision (k) of section 1511 of the tax law, as
38 amended by section 2 of part S of chapter 407 of the laws of 1999, is
39 amended to read as follows:
40 (1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
41 er provided, against the tax imposed by this article. The amount of the
42 credit shall be equal to one hundred percent of an investment of certi-
43 fied capital in [a] certified capital company program one, two, or three
44 and fifty percent of an investment of certified capital in certified
45 capital company program four, made by the taxpayer pursuant to section
46 eleven of this chapter.
47 § 10. This act shall take effect immediately.
48 PART J
49 Section 1. Subparagraph (B) of paragraph 5 of subdivision a of section
50 1612 of the tax law, as amended by section 6 of part EE of chapter 85 of
51 the laws of 2002, is amended to read as follows:
52 (B) In consideration for its licensure and participation in this pilot
53 program, each track shall reinvest in the racing industry a percentage
54 of the vendor fee received pursuant to subparagraph (A) of this para-
S. 1410 42 A. 2110
1 graph in the manner set forth in this subparagraph. Each such track
2 shall dedicate the following percentages of its vendor fee solely for
3 the purpose of enhancing purses at said track: [in the first year of
4 video lottery gaming at such track, thirty-five percent; and in the
5 second and any subsequent year, forty-five percent] in the first and
6 second years of video lottery gaming at such track, zero percent; in the
7 third, fourth and fifth years, ten percent; in the sixth, seventh,
8 eighth and ninth years, fifteen percent; and in the tenth and subsequent
9 years, twenty percent. In addition, no less than [five] two and one-
10 half percent of its vendor fee in the third through ninth years and five
11 percent in the tenth and subsequent years, shall be distributed to the
12 appropriate breeding fund for the manner of racing conducted by said
13 track.
14 Provided further, however, nothing in this [subparagrah] subparagraph
15 shall prevent each track from entering into an agreement with the organ-
16 ization authorized to represent its horsemen to reduce the percentage of
17 its vendor fee dedicated to enhancing purses at such track during the
18 initial three years of participation by such track, to an amount not
19 less than twenty-five percent. After any initial mutually agreed to
20 reduction under this subparagraph, the amount of the vendor fee payable
21 to purses shall revert to the preceding subparagraph.
22 § 2. Subdivision b of section 1617-a of the tax law, as added by
23 section 1 of part C of chapter 383 of the laws of 2001, is amended to
24 read as follows:
25 b. Video lottery gaming shall [only] be permitted [during the hours of
26 ten a.m. through ten p.m. Sunday through Thursday and twelve p.m.
27 through twelve a.m. Friday and Saturday, provided, however, that the
28 lottery may authorize such video lottery gaming on public holidays and
29 the day preceding such holidays from twelve p.m. through twelve a.m] for
30 a maximum of one hundred twenty-six hours per week with the actual daily
31 hours of operation set by each track and subject to approval by the
32 director, provided however, that video lottery gaming may not be
33 conducted between the hours of two a.m. through twelve p.m. Sunday.
34 § 3. Section 4 of part C of chapter 383 of the laws of 2001 amending
35 the tax law relating to authorizing the division of the lottery to
36 conduct a pilot program involving the operation of video lottery termi-
37 nals at certain racetracks, as amended by section 4 of part EE of chap-
38 ter 85 of the laws of 2002, is amended to read as follows:
39 § 4. This act shall take effect immediately[; provided, however, that
40 the provisions of this act shall expire and be deemed repealed December
41 31, 2007].
42 § 4. This act shall take effect immediately.
43 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
44 sion, section or part of this act shall be adjudged by any court of
45 competent jurisdiction to be invalid, such judgment shall not affect,
46 impair, or invalidate the remainder thereof, but shall be confined in
47 its operation to the clause, sentence, paragraph, subdivision, section
48 or part thereof directly involved in the controversy in which such judg-
49 ment shall have been rendered. It is hereby declared to be the intent of
50 the legislature that this act would have been enacted even if such
51 invalid provisions had not been included herein.
52 § 3. This act shall take effect immediately provided, however, that
53 the applicable effective date of Parts A through J of this act shall be
54 as specifically set forth in the last section of such Parts.