S. 6060 / A. 9560
STATE OF NEW YORK
________________________________________________________________________
S. 6060 A. 9560
SENATE - ASSEMBLY
January 21, 2004
___________
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 the tax law, in relation to exemptions from sales and
compensating use taxes for certain clothing and footwear (Part A); to
amend the public housing law, in relation to providing a credit
against income tax for persons or entities investing in low-income
housing (Part B); to amend chapter 405 of the laws of 1999 amending
the real property tax law relating to improving the administration of
the school tax relief (STAR) program and other laws, in relation to
the lottery game of Quick Draw (Part C); to amend the tax law, in
relation to the lottery game of Quick Draw (Part D); to amend the tax
law, in relation to certain tax surcharges (Part E); to amend the tax
law and chapter 389 of the laws of 1997 amending the tax law, the
banking law, and other laws relating to the 1997-1998 fiscal plan, in
relation to extending certain tax credits and exemptions for alterna-
tive fuel vehicles (Part F); to amend the tax law, in relation to
changing the fixed dollar minimum tax for a taxpayer based on the
taxpayer's gross payroll (Part G); to amend the tax law, in relation
to making conforming amendments necessitated by the enactment of the
federal military family tax relief act of 2003 and to exempt from tax
certain compensation received by members of the New York state organ-
ized militia (Part H); to amend the tax law, in relation to the calcu-
lation of the business allocation percentage under article 9-A of such
law for manufacturers (Part I); to amend the tax law, the state
finance law and the county law, in relation to providing revenues for
state homeland security activities and designation of the public safe-
ty and security account (Part J); to amend the alcoholic beverage
control law, in relation to providing for certain limited direct
interstate shipments of wine (Part K); to amend the tax law, in
relation to modifying hearing rights upon certain notice and demands
for taxes due and owing and providing for notice and demand procedures
for the sales, compensating use and miscellaneous taxes (Part L); to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12134-01-4
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amend the tax law, in relation to authorizing the transfer by biotech-
nology companies of certain tax benefits (Part M); to amend the tax
law, in relation to eliminating the personal income tax filing
requirement for residents having no tax liability because income does
not exceed the New York standard deduction (Part N); to amend the
executive law, the tax law and part T3 of chapter 62 of the laws of
2003 relating to sales on native American nation or tribal lands, in
relation to authorizing parity agreements between the state and native
American nations or tribes (Part O); 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 business 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 impo-
sition of taxes in the city of New York, in relation to the effective-
ness 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 article 9-A of such law; and to amend the administra-
tive 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 P); to amend
the tax law, in relation to providing a refundable personal income tax
credit related to the STAR real property tax exemption (Part Q); to
amend the tax law, in relation to video lottery gaming (Part R); to
amend the tax law and the uniform commercial code, in relation to
authorizing any city in this state having a population of one million
or more and any county in this state to impose a tax upon the filing
of a UCC financing statement for a cooperative interest and the taxa-
tion of gains from the sale of shares in a cooperative housing corpo-
ration by a nonresident of the state (Part S); and to amend the gener-
al municipal law and the tax law, in relation to the purpose,
administration and benefits of the empire zones program; and to repeal
certain provisions of the general municipal law relating thereto (Part
T)
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 2004-2005
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through T. 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
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1 Part in which it is found. Section three of this act sets forth the
2 general effective date of this act.
3 PART A
4 Section 1. Paragraph 30 of subdivision (a) of section 1115 of the tax
5 law, as amended by section 84 of part A of chapter 56 of the laws of
6 1998, is amended to read as follows:
7 (30) [Clothing] During the seven-day periods each year commencing on
8 the last Monday of January and ending on the immediately succeeding
9 Sunday, commencing on the first Saturday in April and ending on the
10 immediately succeeding Friday, commencing on the second Saturday in July
11 and ending on the immediately succeeding Friday and commencing on the
12 Tuesday immediately preceding the first Monday in September, known as
13 Labor day, and ending on Labor day, clothing and footwear for which the
14 receipt or consideration given or contracted to be given is less than
15 [one] five hundred [ten] dollars per article of clothing, per pair of
16 shoes or other articles of footwear or per item used or consumed to make
17 or repair such clothing and which becomes a physical component part of
18 such clothing.
19 § 2. Subdivision (k) of section 1210 of the tax law, as amended by
20 section 86 of part A of chapter 56 of the laws of 1998, paragraph 2 as
21 amended by section 7 of part KK of chapter 407 of the laws of 1999, is
22 amended to read as follows:
23 (k) Notwithstanding any other provision of state or local law, ordi-
24 nance or resolution to the contrary:
25 (1) Any city having a population of one million or more in which the
26 taxes imposed by section eleven hundred seven of this chapter are in
27 effect, acting through its local legislative body, is hereby authorized
28 and empowered to elect to provide the exemption from such taxes for the
29 same clothing and footwear exempt from state sales and compensating use
30 taxes, during the same periods each year, described in paragraph thirty
31 of subdivision (a) of section eleven hundred fifteen of this chapter by
32 enacting a resolution in the form set forth in paragraph two of this
33 subdivision; whereupon, upon compliance with the provisions of subdivi-
34 sions (d) and (e) of this section, such enactment of such resolution
35 shall be deemed to be an amendment to such section eleven hundred seven
36 and such section eleven hundred seven shall be deemed to incorporate
37 such exemption as if it had been duly enacted by the state legislature
38 and approved by the governor.
39 (2) Form of Resolution: Be it enacted by the (insert proper title of
40 local legislative body) as follows:
41 Section one. Receipts from sales of and consideration given or
42 contracted to be given for purchases of clothing and footwear exempt
43 from state sales and compensating use taxes pursuant to paragraph 30 of
44 subdivision (a) of section 1115 of the tax law shall also be exempt from
45 sales and compensating use taxes imposed in this jurisdiction, during
46 the same periods set forth in such paragraph 30.
47 Section two. This resolution shall take effect March 1, (insert the
48 year, but not earlier than the year [2000] 2005) and shall apply to sale
49 made and uses occurring [on and after that date although made or occur-
50 ring under a prior contract] during the applicable exemption periods
51 each year, in accordance with the applicable transitional provisions of
52 sections 1106 and 1217 of the New York tax law.
53 § 3. Notwithstanding any provision of state or local law, ordinance or
54 resolution to the contrary:
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1 (a) If, prior to the date this act shall have become a law, a city,
2 county or school district imposing sales and compensating use taxes
3 pursuant to the authority of paragraph 1 of subdivision (a) of section
4 1210 or section 1211 of the tax law or a city having a population of one
5 million or more in which the taxes imposed by section 1107 of the tax
6 law are in effect has elected the two one-week temporary exemption peri-
7 ods for clothing and footwear described in paragraph 30 of subdivision
8 (a) of section 1115 of the tax law, as such paragraph 30 existed prior
9 to the effective date of this act, regardless of whether such county,
10 city, or school district had also elected the permanent exemption to
11 take effect on June 1, 2004, or later, and
12 (1) such municipality wishes for the clothing and footwear exemption
13 to continue to apply in the amended form set forth in section one of
14 this act, then such municipality need not take any action, whereupon, on
15 the effective date of section one of this act, the local law, ordinance
16 or resolution of such municipality imposing such sales and use taxes
17 shall be deemed to incorporate such amended exemption pursuant to
18 sections 1210 and 1218 of the tax law, and section 1107 of the tax law
19 shall be deemed to incorporate such amended exemption as if an amendment
20 to such section 1107 had been duly enacted by the state legislature and
21 approved by the governor; or
22 (2) such municipality does not wish for the clothing and footwear
23 exemption to continue to apply in the amended form set forth in section
24 one of this act, then such municipality, acting through its local legis-
25 lative body, shall adopt a model enactment prepared by the commissioner
26 of taxation and finance pursuant to article 29 of the tax law, in the
27 exact form prepared by such commissioner, (i) to amend its local law,
28 ordinance or resolution imposing such taxes to provide that the
29 exemption will not apply as of the effective date of section one of this
30 act, or (ii) in the case of such city of one million or more, which
31 shall be deemed to amend section 1107 of the tax law to provide that the
32 exemption will not apply as of the effective date of section one of this
33 act as if an amendment to such section 1107 had been duly enacted by the
34 state legislature and approved by the governor; provided that any such
35 enactment shall be effective and such section 1107 shall be deemed
36 amended only if such municipality gives notice to the commissioner of
37 taxation and finance in accordance with the provisions of subdivision
38 (d) of section 1210 or 1211 of the tax law, provided that the 90 day
39 minimum notice requirement to such commissioner shall be deemed complied
40 with if such municipality mails a certified copy of its enactment to
41 such commissioner by certified or registered mail at least 40 days prior
42 to the effective date of section one of this act, and such municipality
43 also complies with the provisions of subdivision (e) of such section
44 1210 or 1211, as the case may be.
45 (b) If a city, county or school district imposing sales and compensat-
46 ing use taxes pursuant to the authority of paragraph 1 of subdivision
47 (a) of section 1210 or section 1211 of the tax law or a city having a
48 population of one million or more in which the taxes imposed by section
49 1107 of the tax law are in effect did not elect the two one-week
50 exemption periods for clothing and footwear described in paragraph 30 of
51 subdivision (a) of section 1115 of the tax law as such paragraph 30
52 existed prior to the effective date of this act, and regardless of
53 whether such county, city or school district had elected the permanent
54 exemption to take effect on June 1, 2004, or later, but such munici-
55 pality wishes to elect such exemption in the amended form set forth in
56 section one of this act to be effective on the same date such section
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1 one takes effect, such municipality, acting through its local legisla-
2 tive body, shall adopt a model enactment prepared by the commissioner of
3 taxation and finance pursuant to article 29 of the tax law, in the exact
4 form prepared by such commissioner, (i) to amend its local law, ordi-
5 nance or resolution imposing such taxes to provide for such amended
6 exemption effective on such date, or (ii) in the case of such city
7 having a population of one million or more, which shall be deemed to
8 amend such section 1107 of the tax law to provide for such amended
9 exemption effective on such date as if an amendment to such section 1107
10 had been duly enacted by the state legislature and approved by the
11 governor; provided that any such enactment shall be effective and such
12 section 1107 shall be deemed amended only if such municipality gives
13 notice to the commissioner of taxation and finance in accordance with
14 the provisions of subdivision (d) of section 1210 or 1211 of the tax
15 law, provided that the 90 day minimum notice requirement to such commis-
16 sioner shall be deemed complied with if such municipality mails a certi-
17 fied copy of its enactment to such commissioner by certified or regis-
18 tered mail at least 40 days prior to the effective date of section one
19 of this act, and such municipality also complies with the provisions of
20 subdivision (e) of such section 1210 or 1211, as the case may be.
21 § 4. The provisions of sections one through three of this act, section
22 1107 of the tax law and paragraph 1 of subdivision (a) of section 1210
23 of the tax law, and of any resolution enacted pursuant thereto, taken
24 separately or together, shall not be construed by any person or any
25 court or other entity as either (i) a failure or refusal to continue to
26 impose the taxes imposed by section 1107 of the tax law, as such taxes
27 may from time to time be amended, or (ii) as a reduction in the rate at
28 which such taxes are imposed. After sections one through three of this
29 act shall have become a law, the taxes imposed by such section 1107 of
30 the tax law on receipts from retail sales of and consideration given or
31 contracted to be given for purchases of clothing and footwear shall
32 (except as provided in section two of this act for the periods set forth
33 in such section two if a city of one million or more adopts a resolution
34 pursuant to the authority of subdivision (k) of section 1210 of the tax
35 law, as amended by section two of this act, or allows a resolution
36 adopted pursuant to the authority of such subdivision (k) of section
37 1210 to continue in effect as provided in section three of this act)
38 continue to apply, persons liable for such taxes on purchases of such
39 clothing and footwear shall continue to be liable for such taxes,
40 persons required to collect such taxes on such clothing and footwear
41 shall continue to be required to collect and pay over such taxes to the
42 commissioner of taxation and finance, such commissioner shall continue
43 to be required to certify such taxes on such clothing and footwear as
44 provided by article 28 of the tax law and section 92-d of the state
45 finance law and the state comptroller shall continue to be required to
46 deposit, appropriate and pay over such taxes as required by such section
47 92-d of the state finance law, in the manner and to the extent as if
48 sections one through three of this act had not become a law.
49 § 5. This act shall take effect immediately; provided, however, that
50 sections one and two of this act shall take effect on the same date as
51 the reversions of paragraph 30 of subdivision (a) of section 1115 and
52 subdivision (k) of section 1210 of the tax law as provided in section 5
53 of part I3 of chapter 62 of the laws of 2003, as amended, and shall
54 apply in accordance with the applicable transitional provisions of
55 sections 1106 and 1217 of the tax law.
S. 6060 6 A. 9560
1 PART B
2 Section 1. Subdivision 4 of section 22 of the public housing law, as
3 amended by section 1 of part M of chapter 85 of the laws of 2002, is
4 amended to read as follows:
5 4. Statewide limitation. The aggregate dollar amount of credit which
6 the commissioner may allocate to eligible low-income buildings under
7 this article shall be [four] six million dollars. The limitation
8 provided by this subdivision applies only to allocation of the aggregate
9 dollar amount of credit by the commissioner, and does not apply to
10 allowance to a taxpayer of the credit with respect to an eligible low-
11 income building for each year of the credit period.
12 § 2. This act shall take effect immediately.
13 PART C
14 Section 1. Section 1 of part J of chapter 405 of the laws of 1999,
15 amending the real property tax law relating to improving the adminis-
16 tration of the school tax relief (STAR) program and other laws, as
17 amended by section 1 of part AA of chapter 85 of the laws of 2002, is
18 amended to read as follows:
19 Section 1. Notwithstanding the provisions of article 5 of the general
20 construction law, the provisions of the tax law amended by sections
21 94-a, 94-d and 94-g of chapter 2 of the laws of 1995 are hereby revived
22 and shall continue in full force and effect as they existed on March 31,
23 1999 [through May 31, 2004, when upon such date they shall expire and be
24 repealed]. Sections 1, 2, 3, 4, and 5, and such part of section 10 of
25 chapter 336 of the laws of 1999 as relates to providing for the effec-
26 tiveness of such sections 1, 2, 3, 4 and 5 shall be nullified in effect
27 on the effective date of this section, except that the amendments made
28 to: paragraph (2) of subdivision a of section 1612 of the tax law by
29 such section 1; and subdivision b of section 1612 of the tax law by such
30 section 2; and the repeal of section 152 of chapter 166 of the laws of
31 1991 made by such section 5 shall continue to remain in effect.
32 § 2. This act shall take effect immediately.
33 PART D
34 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax
35 law, as amended by chapter 336 of the laws of 1999, is amended to read
36 as follows:
37 (1) sixty percent of the total amount for which tickets have been sold
38 for a lawful lottery game introduced on or after the effective date of
39 this paragraph[, subject to the following provisions:
40 (A) drawings in such game shall be held during no more than thirteen
41 hours each day, no more than eight hours of which shall be consecutive;
42 (B) such game shall be available only on premises occupied by licensed
43 lottery sales agents, subject to the following provisions:
44 (i) if the licensee holds a license issued pursuant to the alcoholic
45 beverage control law to sell alcoholic beverages for consumption on the
46 premises, then not less than twenty-five percent of the gross sales must
47 result from sales of food;
48 (ii) if the licensee does not hold a license issued pursuant to the
49 alcoholic beverage control law to sell alcoholic beverages for consump-
50 tion on the premises, then the premises must have a minimum square
51 footage greater than two thousand five hundred square feet;
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1 (iii) notwithstanding the foregoing provisions, television equipment
2 that automatically displays the results of such drawings may be
3 installed and used without regard to the percentage of food sales or the
4 square footage if such premises are used as:
5 (I) a commercial bowling establishment, or
6 (II) a facility authorized under the racing, pari-mutuel wagering and
7 breeding law to accept pari-mutuel wagers;
8 (C) the]. The rules for the operation of such game shall be as
9 prescribed by regulations promulgated and adopted by the division,
10 provided however, that such rules shall provide that no person under the
11 age of twenty-one may participate in such games on the premises of a
12 licensee who holds a license issued pursuant to the alcoholic beverage
13 control law to sell alcoholic beverages for consumption on the prem-
14 ises[; and, provided, further, that such regulations may be revised on
15 an emergency basis not later than ninety days after the enactment of
16 this paragraph in order to conform such regulations to the requirements
17 of this paragraph]; or
18 § 2. This act shall take effect immediately; provided, however, that
19 the amendment of paragraph 1 of subdivision a of section 1612 of the tax
20 law made by section one of this act shall not affect the repeal of such
21 section as provided in section 1 of part J of chapter 405 of the laws of
22 1999, as amended.
23 PART E
24 Section 1. Subdivision 1 of section 183-a of the tax law, as amended
25 by section 1 of part D of chapter 20 of the laws of 2001, is amended to
26 read as follows:
27 1. The term "corporation" as used in this section shall include an
28 association, within the meaning of paragraph three of subsection (a) of
29 section seventy-seven hundred one of the internal revenue code (includ-
30 ing a limited liability company), a publicly traded partnership treated
31 as a corporation for purposes of the internal revenue code pursuant to
32 section seventy-seven hundred four thereof and any business conducted by
33 a trustee or trustees wherein interest or ownership is evidenced by
34 certificates or other written instruments. Every corporation, joint-
35 stock company or association formed for or principally engaged in the
36 conduct of canal, steamboat, ferry (except a ferry company operating
37 between any of the boroughs of the city of New York under a lease grant-
38 ed by the city), express, navigation, pipe line, transfer, baggage
39 express, omnibus, taxicab, telegraph, or telephone business, or formed
40 for or principally engaged in the conduct of two or more such busi-
41 nesses, and every corporation, joint-stock company or association formed
42 for or principally engaged in the conduct of a railroad, palace car,
43 sleeping car or trucking business or formed for or principally engaged
44 in the conduct of two or more of such businesses and which has made an
45 election pursuant to subdivision ten of section one hundred eighty-three
46 of this article, and every other corporation, joint-stock company or
47 association principally engaged in the conduct of a transportation or
48 transmission business, except a corporation, joint-stock company or
49 association formed for or principally engaged in the conduct of a rail-
50 road, palace car, sleeping car or trucking business or formed for or
51 principally engaged in the conduct of two or more of such businesses and
52 which has not made the election provided for in subdivision ten of
53 section one hundred eighty-three of this article, and except a corpo-
54 ration, joint-stock company or association principally engaged in the
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1 conduct of aviation (including air freight forwarders acting as princi-
2 pal and like indirect air carriers) and except a corporation principally
3 engaged in providing telecommunication services between aircraft and
4 dispatcher, aircraft and air traffic control or ground station and
5 ground station (or any combination of the foregoing), at least ninety
6 percent of the voting stock of which corporation is owned, directly or
7 indirectly, by air carriers and which corporation's principal function
8 is to fulfill the requirements of (i) the federal aviation adminis-
9 tration (or the successor thereto) or (ii) the international civil
10 aviation organization (or the successor thereto), relating to the exist-
11 ence of a communication system between aircraft and dispatcher, aircraft
12 and air traffic control or ground station and ground station (or any
13 combination of the foregoing) for the purposes of air safety and naviga-
14 tion and except a corporation, joint-stock company or association which
15 is liable to taxation under [section one hundred eighty-six of this
16 article or] article thirty-two of this chapter, shall pay for the privi-
17 lege of exercising its corporate franchise, or of doing business, or of
18 employing capital, or of owning or leasing property in the metropolitan
19 commuter transportation district in such corporate or organized capaci-
20 ty, or of maintaining an office in such district, a tax surcharge for
21 all or any part of its years commencing on or after January first, nine-
22 teen hundred eighty-two but ending before December thirty-first, two
23 thousand [five] nine, which tax surcharge, in addition to the tax
24 imposed by section one hundred eighty-three of this article, shall be
25 computed at the rate of eighteen per centum of the tax imposed under
26 such section one hundred eighty-three for such years or any part of such
27 years ending before December thirty-first, nineteen hundred eighty-three
28 after the deduction of any credits otherwise allowable under this arti-
29 cle, and at the rate of seventeen per centum of the tax imposed under
30 such section for such years or any part of such years ending on or after
31 December thirty-first, nineteen hundred eighty-three after the deduction
32 of any credits otherwise allowable under this article; provided, howev-
33 er, that such rates of tax surcharge shall be applied only to that
34 portion of the tax imposed under section one hundred eighty-three of
35 this article after the deduction of any credits otherwise allowable
36 under this article which is attributable to the taxpayer's business
37 activity carried on within the metropolitan commuter transportation
38 district as so determined in the manner prescribed by the rules and
39 regulations promulgated by the commissioner; and provided, further, that
40 the tax surcharge imposed by this section shall not be imposed upon any
41 taxpayer for more than [two hundred seventy-six] three hundred twenty-
42 four months.
43 § 2. Subdivision 1 of section 184-a of the tax law, as amended by
44 section 2 of part D of chapter 20 of the laws of 2001, is amended to
45 read as follows:
46 1. The term "corporation" as used in this section shall include an
47 association, within the meaning of paragraph three of subsection (a) of
48 section seventy-seven hundred one of the internal revenue code (includ-
49 ing a limited liability company), and a publicly traded partnership
50 treated as a corporation for purposes of the internal revenue code
51 pursuant to section seventy-seven hundred four thereof. Every corpo-
52 ration, joint-stock company or association formed for or principally
53 engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
54 ny operating between any of the boroughs of the city of New York under a
55 lease granted by the city), express, navigation, pipe line, transfer,
56 baggage express, omnibus, taxicab, telegraph or local telephone busi-
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1 ness, or formed for or principally engaged in the conduct of two or more
2 such businesses, and every corporation, joint-stock company or associ-
3 ation formed for or principally engaged in the conduct of a surface
4 railroad, whether or not operated by steam, subway railroad, elevated
5 railroad, palace car, sleeping car or trucking business or principally
6 engaged in the conduct of two or more such businesses and which has made
7 an election pursuant to subdivision ten of section one hundred eighty-
8 three of this article, and every other corporation, joint-stock company
9 or association formed for or principally engaged in the conduct of a
10 transportation or transmission business (other than a telephone busi-
11 ness) except a corporation, joint-stock company or association formed
12 for or principally engaged in the conduct of a surface railroad, whether
13 or not operated by steam, subway railroad, elevated railroad, palace
14 car, sleeping car or trucking business or principally engaged in the
15 conduct of two or more such businesses and which has not made the
16 election provided for in subdivision ten of section one hundred eighty-
17 three of this article, and except a corporation, joint-stock company or
18 association principally engaged in the conduct of aviation (including
19 air freight forwarders acting as principal and like indirect air carri-
20 ers) and except a corporation principally engaged in providing telecom-
21 munication services between aircraft and dispatcher, aircraft and air
22 traffic control or ground station and ground station (or any combination
23 of the foregoing), at least ninety percent of the voting stock of which
24 corporation is owned, directly or indirectly, by air carriers and which
25 corporation's principal function is to fulfill the requirements of (i)
26 the federal aviation administration (or the successor thereto) or (ii)
27 the international civil aviation organization (or the successor there-
28 to), relating to the existence of a communication system between
29 aircraft and dispatcher, aircraft and air traffic control or ground
30 station and ground station (or any combination of the foregoing) for the
31 purposes of air safety and navigation and except a corporation, joint-
32 stock company or association which is liable to taxation under [section
33 one hundred eighty-six of this article or] article thirty-two of this
34 chapter, shall pay for the privilege of exercising its corporate fran-
35 chise, or of doing business, or of employing capital, or of owning or
36 leasing property in the metropolitan commuter transportation district in
37 such corporate or organized capacity, or of maintaining an office in
38 such district, a tax surcharge for all or any part of its taxable years
39 commencing on or after January first, nineteen hundred eighty-two, but
40 ending before December thirty-first, two thousand [five] nine, which tax
41 surcharge, in addition to the tax imposed by section one hundred eight-
42 y-four of this article, shall be computed at the rate of eighteen per
43 centum of the tax imposed under such section one hundred eighty-four for
44 such taxable years or any part of such taxable years ending before
45 December thirty-first, nineteen hundred eighty-three after the deduction
46 of any credits otherwise allowable under this article, and at the rate
47 of seventeen per centum of the tax imposed under such section for such
48 taxable years or any part of such taxable years ending on or after
49 December thirty-first, nineteen hundred eighty-three after the deduction
50 of any credits otherwise allowable under this article; provided, howev-
51 er, that such rates of tax surcharge shall be applied only to that
52 portion of the tax imposed under section one hundred eighty-four of this
53 article after the deduction of any credits otherwise allowable under
54 this article which is attributable to the taxpayer's business activity
55 carried on within the metropolitan commuter transportation district; and
56 provided, further, that the tax surcharge imposed by this section on
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1 corporations, joint-stock companies and associations formed for or prin-
2 cipally engaged in the conduct of telephone or telegraph business shall
3 be computed in accordance with this subdivision and paragraph (c) of
4 subdivision two of this section as if the three-quarters of one per
5 centum rate of tax provided for in subdivision one of section one
6 hundred eighty-four of this article were applicable to such telephone
7 and telegraph businesses for taxable years commencing on or after Janu-
8 ary first, nineteen hundred eighty-five and ending on or before December
9 thirty-first, nineteen hundred eighty-nine; and provided, further, that
10 the tax surcharge imposed by this section shall not be imposed upon any
11 taxpayer for more than [two hundred seventy-six] three hundred twenty-
12 four months. Provided, however, that for taxable years beginning in two
13 thousand and thereafter, for purposes of this subdivision the tax
14 imposed under section one hundred eighty-four of this article shall be
15 deemed to have been imposed at the rate of three-quarters of one
16 percent, except that in the case of a corporation, joint-stock company
17 or association which has made an election pursuant to subdivision ten of
18 section one hundred eighty-three of this article, for purposes of this
19 subdivision the tax imposed under section one hundred eighty-four of
20 this article shall be deemed to have been imposed at the rate of six-
21 tenths of one percent.
22 The term "local telephone business" shall have the same meaning as
23 such term is used in section one hundred eighty-four of this article.
24 The term "telecommunication services" shall have the meaning ascribed to
25 such term in section one hundred eighty-six-e of this article.
26 § 3. Subdivision 1 of section 186-c of the tax law, as amended by
27 section 3 of part D of chapter 20 of the laws of 2001, paragraph (b) as
28 amended by section 1 of part S of chapter 85 of the laws of 2002, is
29 amended to read as follows:
30 1. (a) (1) Every utility doing business in the metropolitan commuter
31 transportation district shall pay a tax surcharge, in addition to the
32 tax imposed by section one hundred eighty-six-a of this article, for all
33 or any parts of its taxable years commencing on or after January first,
34 nineteen hundred eighty-two but ending before December thirty-first, two
35 thousand [five] nine, to be computed at the rate of eighteen per centum
36 of the tax imposed under section one hundred eighty-six-a of this arti-
37 cle for such taxable years or any part of such taxable years ending
38 before December thirty-first, nineteen hundred eighty-three after the
39 deduction of any credits otherwise allowable under this article, and at
40 the rate of seventeen per centum of the tax imposed under such section
41 for such taxable years or any part of such taxable years ending on or
42 after December thirty-first, nineteen hundred eighty-three after the
43 deduction of credits otherwise allowable under this article except any
44 utility credit provided for by article thirteen-A of this chapter;
45 provided, however, that such rates of tax surcharge shall be applied
46 only to that portion of the tax imposed under section one hundred eight-
47 y-six-a of this article after the deduction of credits otherwise allow-
48 able under this article, except any utility credit provided for by arti-
49 cle thirteen-A of this chapter, which is attributable to the taxpayer's
50 gross income or gross operating income from business activity carried on
51 within the metropolitan commuter transportation district; and provided,
52 further, that the tax surcharge imposed by this section shall not be
53 imposed upon any taxpayer for more than [two hundred seventy-six] three
54 hundred twenty-four months.
55 (2) Provided however, that commencing January first, two thousand, in
56 the case of the tax imposed under paragraph (a) of subdivision one of
S. 6060 11 A. 9560
1 section one hundred eighty-six-a of this article (relating to providers
2 of telecommunications services) such tax surcharge shall be calculated
3 as if the tax imposed under section one hundred eighty-six-a of this
4 article were imposed at a rate of three and one-half percent.
5 (b) In addition to the surcharge imposed by [subdivision] paragraph
6 (a) of this [section] subdivision, there is hereby imposed a surcharge
7 on the gross receipts from telecommunication services relating to the
8 metropolitan commuter transportation district at the rate of seventeen
9 percent of the state tax rate under section one hundred eighty-six-e of
10 this article for all or part of taxable years commencing on and after
11 January first, nineteen hundred ninety-five but ending before December
12 thirty-first, two thousand [five] nine. All the definitions and other
13 provisions of section one hundred eighty-six-e of this article shall
14 apply to the tax imposed by this paragraph with such modification and
15 limitation as may be necessary (including substituting the words "metro-
16 politan commuter transportation district" for "state" where appropriate)
17 in order to adapt the language of such section one hundred eighty-six-e
18 of this article to the surcharge imposed by this paragraph within such
19 metropolitan commuter transportation district so as to include (1) any
20 intra-district telecommunication services, except any telecommunication
21 services the gross receipts from which are subject to tax under subpara-
22 graph four of this paragraph, (2) any inter-district telecommunication
23 services which originate or terminate in such district and are charged
24 to a service address therein regardless of where the amounts charged for
25 such services are billed or ultimately paid, except any telecommuni-
26 cations services the gross receipts from which are subject to tax under
27 subparagraph four of this paragraph, (3) as apportioned to such
28 district, private telecommunication services, except any telecommuni-
29 cation services the gross receipts from which are subject to tax under
30 subparagraph four of this paragraph, and (4) mobile telecommunications
31 service provided by a home service provider where the place of primary
32 use is within such metropolitan commuter transportation district.
33 Provided however, commencing October first, nineteen hundred ninety-
34 eight such tax surcharge shall be calculated as if the tax imposed under
35 section one hundred eighty-six-e of this article were imposed at a rate
36 of three and one-half percent.
37 § 4. Subdivision 1 of section 209-B of the tax law, as amended by
38 section 5 of part D of chapter 20 of the laws of 2001, is amended to
39 read as follows:
40 1. For the privilege of exercising its corporate franchise, or of
41 doing business, or of employing capital, or of owning or leasing proper-
42 ty in a corporate or organized capacity, or of maintaining an office in
43 the metropolitan commuter transportation district, for all or any part
44 of its taxable year, there is hereby imposed on every corporation, other
45 than a New York S corporation, subject to tax under section two hundred
46 nine of this article, or any receiver, referee, trustee, assignee or
47 other fiduciary, or any officer or agent appointed by any court, who
48 conducts the business of any such corporation, for the taxable years
49 commencing on or after January first, nineteen hundred eighty-two but
50 ending before December thirty-first, two thousand [five] nine, a tax
51 surcharge, in addition to the tax imposed under section two hundred nine
52 of this article, to be computed at the rate of eighteen per centum of
53 the tax imposed under such section two hundred nine for such taxable
54 years or any part of such taxable years ending before December thirty-
55 first, nineteen hundred eighty-three after the deduction of any credits
56 otherwise allowable under this article, and at the rate of seventeen per
S. 6060 12 A. 9560
1 centum of the tax imposed under such section for such taxable years or
2 any part of such taxable years ending on or after December thirty-first,
3 nineteen hundred eighty-three after the deduction of any credits other-
4 wise allowable under this article; provided, however, that such rates of
5 tax surcharge shall be applied only to that portion of the tax imposed
6 under section two hundred nine of this article after the deduction of
7 any credits otherwise allowable under this article which is attributable
8 to the taxpayer's business activity carried on within the metropolitan
9 commuter transportation district; and provided, further, that the tax
10 surcharge imposed by this section shall not be imposed upon any taxpayer
11 for more than [two hundred seventy-six] three hundred twenty-four
12 months. Provided however, that for taxable years commencing on or after
13 July first, nineteen hundred ninety-eight, such surcharge shall be
14 calculated as if the tax imposed under section two hundred ten of this
15 article were imposed under the law in effect for taxable years commenc-
16 ing on or after July first, nineteen hundred ninety-seven and before
17 July first, nineteen hundred ninety-eight.
18 § 5. Subsection 1 of section 1455-B of the tax law, as amended by
19 section 6 of part D of chapter 20 of the laws of 2001, is amended to
20 read as follows:
21 1. For the privilege of exercising its franchise or doing business in
22 the metropolitan commuter transportation district in a corporate or
23 organized capacity, there is hereby imposed on every taxpayer subject to
24 tax under this article, other than a New York S corporation, for the
25 taxable years commencing on or after January first, nineteen hundred
26 eighty-two but ending before December thirty-first, two thousand [five]
27 nine, a tax surcharge, in addition to the tax imposed under section
28 fourteen hundred fifty-one of this article, at the rate of eighteen per
29 centum of the tax imposed under such section fourteen hundred fifty-one
30 of this article, for such taxable years or any part of such taxable
31 years ending before December thirty-first, nineteen hundred eighty-three
32 after the deduction of any credits otherwise allowable under this arti-
33 cle, and at the rate of seventeen per centum of the tax imposed under
34 such section for such taxable years or any part of such taxable years
35 ending on or after December thirty-first, nineteen hundred eighty-three
36 after the deduction of any credits otherwise allowable under this arti-
37 cle; provided however, that such rates of tax surcharge shall be applied
38 only to that portion of the tax imposed under section fourteen hundred
39 fifty-one of this article after the deduction of any credits otherwise
40 allowable under this article which is attributable to the taxpayer's
41 business activity carried on within the metropolitan commuter transpor-
42 tation district; and provided, further, that the tax surcharge imposed
43 by this section shall not be imposed upon any taxpayer for more than
44 [two hundred seventy-six] three hundred twenty-four months. Provided
45 however, that for taxable years commencing on or after July first, two
46 thousand, such surcharge shall be calculated as if the rate of the basic
47 tax computed under subsection (a) of section fourteen hundred fifty-five
48 of this article was nine percent.
49 § 6. Subdivision (a) of section 1505-a of the tax law, as amended by
50 section 5 of part H3 of chapter 62 of the laws of 2003, paragraph 2 as
51 amended by section 1 of part Z of chapter 686 of the laws of 2003, is
52 amended to read as follows:
53 (a) (1) Every domestic insurance corporation and every foreign or
54 alien insurance corporation, and every life insurance corporation
55 described in subdivision (b) of section fifteen hundred one of this
56 article, for the privilege of exercising its corporate franchise, or of
S. 6060 13 A. 9560
1 doing business, or of employing capital, or of owning or leasing proper-
2 ty in the metropolitan commuter transportation district in a corporate
3 or organized capacity, or of maintaining an office in the metropolitan
4 commuter transportation district, for all or any part of its taxable
5 years commencing on or after January first, nineteen hundred eighty-two,
6 but ending before December thirty-first, two thousand [five] nine,
7 except corporations specified in subdivision (c) of section fifteen
8 hundred twelve of this article, shall annually pay, in addition to the
9 taxes otherwise imposed by this article, a tax surcharge on the taxes
10 imposed under this article after the deduction of any credits otherwise
11 allowable under this article as allocated to such district. Such taxes
12 shall be allocated to such district for purposes of computing such tax
13 surcharge upon taxpayers subject to tax under subdivision (b) of section
14 fifteen hundred ten of this article by applying the methodology, proce-
15 dures and computations set forth in subdivisions (a) and (b) of section
16 fifteen hundred four of this article, except that references to terms
17 denoting New York premiums, and total wages, salaries, personal service
18 compensation and commissions within New York shall be read as denoting
19 within the metropolitan commuter transportation district and terms
20 denoting total premiums and total wages, salaries, personal service
21 compensation and commissions shall be read as denoting within the state.
22 If it shall appear to the commissioner that the application of the meth-
23 odology, procedures and computations set forth in such subdivisions (a)
24 and (b) does not properly reflect the activity, business or income of a
25 taxpayer within the metropolitan commuter transportation district, then
26 the commissioner shall be authorized, in the commissioner's discretion,
27 to adjust such methodology, procedures and computations for the purpose
28 of allocating such taxes by:
29 (A) excluding one or more factors therein;
30 (B) including one or more other factors therein, such as expenses,
31 purchases, receipts other than premiums, real property or tangible
32 personal property; or
33 (C) any other similar or different method which allocates such taxes
34 by attributing a fair and proper portion of such taxes to the metropol-
35 itan commuter transportation district. The commissioner from time to
36 time shall publish all rulings of general public interest with respect
37 to any application of the provisions of the preceding sentence. The
38 commissioner may promulgate rules and regulations to further implement
39 the provisions of this section.
40 (2) Such taxes shall be allocated to such district for purposes of
41 computing such tax surcharge upon taxpayers subject to tax under section
42 fifteen hundred two-a of this article pursuant to a fraction, the denom-
43 inator of which shall be the direct premiums subject to tax under
44 section fifteen hundred ten of this article, and the numerator of which
45 shall be the direct premiums subject to tax under section fifteen
46 hundred ten of this article that are written on risks located or resi-
47 dent in the metropolitan commuter transportation district, including
48 premiums written, procured or received in the metropolitan commuter
49 transportation district on business that cannot be specifically assigned
50 as located or resident in an area of New York state outside the metro-
51 politan commuter transportation district, or in another state or states;
52 provided, however, in the case of special risk premiums, the numerator
53 shall include only those premiums written, procured or received in the
54 metropolitan commuter transportation district on property or risks
55 located or resident in the metropolitan commuter transportation
56 district. If it shall appear to the commissioner that the application of
S. 6060 14 A. 9560
1 the methodology, procedures and computations set forth in this paragraph
2 does not properly reflect the activity, business or income of a taxpayer
3 within the metropolitan commuter transportation district, then the
4 commissioner shall be authorized, in the commissioner's discretion, to
5 adjust such methodology, procedures and computations for the purpose of
6 allocating such taxes by: (A) excluding the factor therein and including
7 one or more other factors such as expenses, purchases, receipts other
8 than premiums, real property or tangible personal property; or (B) any
9 other similar or different method which allocates such taxes by attri-
10 buting a fair and proper portion of such taxes to the metropolitan
11 commuter transportation district. The commissioner from time to time
12 shall publish all rulings of general public interest with respect to any
13 application of the provisions of the preceding sentence. The commission-
14 er may promulgate rules and regulations to further implement the
15 provisions of this section.
16 (3) Such tax surcharge shall be computed at the rate of eighteen per
17 centum of the taxes imposed under sections fifteen hundred one and
18 fifteen hundred ten of this article as limited by section fifteen
19 hundred five of this article, as allocated to such district, for such
20 taxable years or any part of such taxable years ending before December
21 thirty-first, nineteen hundred eighty-three after the deduction of any
22 credits otherwise allowable under this article, at the rate of seventeen
23 per centum of the taxes imposed under such sections as limited by
24 section fifteen hundred five of this article, as allocated to such
25 district, for such taxable years or any part of such taxable years
26 ending on or after December thirty-first, nineteen hundred eighty-three
27 and before January first, two thousand three after the deduction of any
28 credits otherwise allowable under this article, and at the rate of
29 seventeen per centum of the taxes imposed under sections fifteen hundred
30 one, fifteen hundred two-a, and fifteen hundred ten of this article, as
31 limited or otherwise determined by subdivision (a) or (b) of section
32 fifteen hundred five of this article, as allocated to such district, for
33 such taxable years or any part of such taxable years ending after Decem-
34 ber thirty-first, two thousand two after the deduction of any credits
35 otherwise allowable under this article; provided, however, that the tax
36 surcharge imposed by this section shall not be imposed upon any taxpayer
37 for more than [two hundred seventy-six] three hundred twenty-four
38 months. Provided however, that for taxable years commencing on or after
39 July first, two thousand, and in the case of taxpayers subject to tax
40 under section fifteen hundred two-a of this article, for taxable years
41 of such taxpayers beginning on or after July first, two thousand and
42 before January first, two thousand three, such surcharge shall be calcu-
43 lated as if (i) the rate of the tax computed under paragraph one of
44 subdivision (a) of section fifteen hundred two of this article was nine
45 percent and (ii) the rate of the limitation on tax set forth in section
46 fifteen hundred five of this article for domestic, foreign and alien
47 insurance corporations except life insurance corporations was two and
48 six-tenths percent.
49 § 7. This act shall take effect immediately.
50 PART F
51 Section 1. Subdivisions 3, 4, 5, 6 and 9 of section 187-b of the tax
52 law, subdivisions 3, 4 and 6 as added by section 127 of part A of chap-
53 ter 389 of the laws of 1997, subdivision 5 and paragraph (e) of subdivi-
54 sion 6 as added, subdivision 6 as renumbered and subdivision 9 as
S. 6060 15 A. 9560
1 amended by chapter 597 of the laws of 2002, are amended to read as
2 follows:
3 3. Clean-fuel vehicle property. The credit under this section for
4 clean-fuel vehicle property shall equal sixty percent of the cost of any
5 such property
6 (a) for which a deduction is allowed under section one hundred seven-
7 ty-nine-A of the internal revenue code (determined without regard to the
8 limitations prescribed in paragraph one of subsection (b) of such
9 section or the election referred to in subsection (e) of such section
10 with respect to section one hundred seventy-nine of such code), but not
11 including clean-fuel vehicle property relating to a qualified hybrid
12 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
13 of subsection (p) of section six hundred six of this chapter, and
14 (b) which is installed in or manufactured as part of a motor vehicle
15 which is registered in this state,
16 (c) provided, however, the credit with respect to any such vehicle
17 shall not exceed five thousand dollars per vehicle for vehicles with a
18 gross vehicle weight rating of fourteen thousand pounds or less and ten
19 thousand dollars per vehicle for all other vehicles.
20 4. Clean-fuel vehicle refueling property. The credit under this
21 section for clean-fuel vehicle refueling property shall equal fifty
22 percent of the cost of any such property
23 (a) which is located in this state and
24 (b) for which a deduction is allowed under section one hundred seven-
25 ty-nine-A of the internal revenue code (determined without regard to the
26 limitations prescribed in paragraph two of subsection (b) of such
27 section or the election referred to in subsection (e) of such section
28 with respect to section one hundred seventy-nine of such code), but not
29 including clean-fuel refueling property relating to a qualified hybrid
30 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
31 of subsection (p) of section six hundred six of this chapter.
32 5. Qualified hybrid vehicles. The credit under this section for quali-
33 fied hybrid vehicles shall equal two thousand dollars per vehicle regis-
34 tered in this state[; provided, however, that such vehicle may not qual-
35 ify for both the credit under this subdivision and the clean-fuel
36 vehicle property credit permitted by subdivision three of this section].
37 6. Definitions. (a) The term "electric vehicle" means a qualified
38 electric vehicle within the meaning of subsection (c) of section thirty
39 of the internal revenue code.
40 (b) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
41 refueling property" mean any such property which is qualified within the
42 meaning of subsections (c) and (d), respectively, of section one hundred
43 seventy-nine-A of the internal revenue code, but such terms shall not
44 include clean-fuel vehicle property or clean-fuel vehicle refueling
45 property relating to a qualified hybrid vehicle as such vehicle is
46 defined in subparagraph (E) of paragraph six of subsection (p) of
47 section six hundred six of this chapter.
48 (c) The term "clean-fuel" means natural gas, liquefied petroleum gas,
49 hydrogen, electricity, and any other fuel which is at least [eight-five]
50 eighty-five percent, singly or in combination, methanol, ethanol, any
51 other alcohol, or ether.
52 (d) The term "incremental cost" shall mean the excess of the cost of
53 an electric vehicle over the cost of a gasoline-powered vehicle which is
54 similar in size and style.
S. 6060 16 A. 9560
1 (e) The term "qualified hybrid vehicle" shall have the same meaning as
2 provided for under subparagraph (E) of paragraph six of subsection (p)
3 of section six hundred six of this chapter.
4 9. Termination. This section shall not apply to property placed in
5 service in taxable years beginning after December thirty-first, two
6 thousand [three] four.
7 § 2. Subparagraph (ii) of paragraph (a) of subdivision 24 of section
8 210 of the tax law, as amended by section 1 of part J of chapter 63 of
9 the laws of 2000, is amended to read as follows:
10 (ii) For purposes of this subdivision, the term "governmental unit"
11 means the United States, any state or political subdivision thereof, any
12 possession of the United States, or any agency or instrumentality of any
13 of the foregoing. For taxable years beginning in two thousand through
14 two thousand [three] four, in the case of electric vehicles, or clean-
15 fuel vehicle property which is installed in or manufactured as part of a
16 motor vehicle, where such vehicles are sold or first leased during the
17 taxable year to a governmental unit, a credit shall be allowed, to be
18 computed as hereinafter provided, against the tax imposed by this arti-
19 cle, provided that (A) with respect to such vehicles first sold or
20 leased to a governmental unit during taxable years beginning in two
21 thousand and two thousand one, the taxpayer executes a written contract
22 with such governmental unit on or before December thirty-first, nineteen
23 hundred ninety-nine for such sale or lease of such vehicles, and (B) as
24 a result of the production, manufacture or installation activities
25 relating to such vehicles, at least twenty-five new full-time jobs,
26 excluding those of general executive officers, are created in this
27 state. The total amount of credit for both electric vehicles and clean-
28 fuel vehicle property allowable to a taxpayer under this subparagraph
29 for taxable years beginning in two thousand and two thousand one, taken
30 in the aggregate, shall not exceed two million five hundred thousand
31 dollars, and with respect to such vehicles first sold or leased to a
32 governmental unit during taxable years beginning in two thousand two
33 [and], two thousand three and two thousand four, the amount of credit
34 for both electric vehicles and clean-fuel vehicle property shall not
35 exceed two million five hundred thousand in the case of each of such
36 years two thousand two [and], two thousand three and two thousand four.
37 § 3. Paragraphs (c), (d), (e), (f) and (i) of subdivision 24 of
38 section 210 of the tax law, paragraph (c) as amended by section 1 of
39 part R of chapter 407 of the laws of 1999, paragraph (d) as added by
40 section 128 of part A of chapter 389 of the laws of 1997, paragraph (e)
41 and subparagraph (v) of paragraph (f) as added, paragraph (f) as relet-
42 tered and paragraph (i) as amended by chapter 597 of the laws of 2002,
43 and paragraph (f) as added by section 40 of part A of chapter 389 of the
44 laws of 1997, are amended to read as follows:
45 (c) Clean-fuel vehicle property. The credit under this subdivision for
46 clean-fuel vehicle property shall equal sixty percent of the cost of any
47 such property
48 (i) for which a deduction is allowed under section one hundred seven-
49 ty-nine-A of the internal revenue code (determined without regard to the
50 limitations prescribed in paragraph one of subsection (b) of such
51 section or the election referred to in subsection (e) of such section
52 with respect to section one hundred seventy-nine of such code or, in the
53 case of clean-fuel vehicle property which is installed in or manufac-
54 tured as part of a motor vehicle sold or leased to a governmental unit,
55 without regard to paragraph five of subsection (e) of such section inso-
56 far as it relates to property used by governmental units), but not
S. 6060 17 A. 9560
1 including clean-fuel vehicle property relating to a qualified hybrid
2 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
3 of subsection (p) of section six hundred six of this chapter, and
4 (ii) which is installed in or manufactured as part of a motor vehicle
5 which is registered in this state or, in the case of clean-fuel vehicle
6 property which is installed in or manufactured as part of a motor vehi-
7 cle sold or leased to a governmental unit, the installation or manufac-
8 ture of which takes place in this state,
9 (iii) provided, however, the credit with respect to any such vehicle
10 shall not exceed five thousand dollars per vehicle for vehicles with a
11 gross vehicle weight rating of fourteen thousand pounds or less and ten
12 thousand dollars per vehicle for all other vehicles.
13 (d) Clean-fuel vehicle refueling property. The credit under this
14 subdivision for clean-fuel vehicle refueling property shall equal fifty
15 percent of the cost of any such property
16 (i) which is located in this state and
17 (ii) for which a deduction is allowed under section one hundred seven-
18 ty-nine-A of the internal revenue code (determined without regard to the
19 limitations prescribed in paragraph two of subsection (b) of such
20 section or the election referred to in subsection (e) of such section
21 with respect to section one hundred seventy-nine of such code), but not
22 including clean-fuel vehicle refueling property relating to a qualified
23 hybrid vehicle as such vehicle is defined in subparagraph (E) of para-
24 graph six of subsection (p) of section six hundred six of this chapter.
25 (e) Qualified hybrid vehicles. The credit under this subdivision for
26 qualified hybrid vehicles shall equal two thousand dollars per vehicle
27 registered in this state[; provided, however, that such vehicle may not
28 qualify for both the credit under this paragraph and the clean-fuel
29 vehicle property credit permitted by paragraph (c) of this subdivision].
30 (f) Definitions. (i) The term "electric vehicle" means a qualified
31 electric vehicle within the meaning of subsection (c) of section thirty
32 of the internal revenue code.
33 (ii) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
34 refueling property" mean any such property which is qualified within the
35 meaning of subsections (c) and (d), respectively, of section one hundred
36 seventy-nine-A of the internal revenue code, but such terms shall not
37 include clean-fuel vehicle property or clean-fuel vehicle refueling
38 property relating to a qualified hybrid vehicle as such vehicle is
39 defined in subparagraph (E) of paragraph six of subsection (p) of
40 section six hundred six of this chapter.
41 (iii) The term "clean-fuel" means natural gas, liquefied petroleum
42 gas, hydrogen, electricity, and any other fuel which is at least
43 eighty-five percent, singly or in combination, methanol, ethanol, any
44 other alcohol, or ether.
45 (iv) The term "incremental cost" shall mean the excess of the cost of
46 an electric vehicle over the cost of a gasoline-powered vehicle which is
47 similar in size and style.
48 (v) The term "qualified hybrid vehicle" shall have the same meaning as
49 provided for under subparagraph (E) of paragraph six of subsection (p)
50 of section six hundred six of this chapter.
51 (i) Termination. Subparagraph (i) of paragraph (a) of this subdivision
52 shall not apply to property placed in service in taxable years beginning
53 after December thirty-first, two thousand [three] four and subparagraph
54 (ii) of paragraph (a) of this subdivision shall not apply to property
55 sold or first leased in taxable years beginning after December thirty-
56 first, two thousand [three] four.
S. 6060 18 A. 9560
1 § 4. Paragraphs 3, 4, 5, 6 and 9 of subsection (p) of section 606 of
2 the tax law, paragraphs 3, 4 and 6 as added by section 129 of part A of
3 chapter 389 of the laws of 1997, paragraph 5 and subparagraph (E) of
4 paragraph 6 as added, paragraph 6 as renumbered, and paragraph 9 as
5 amended by chapter 597 of the laws of 2002, are amended to read as
6 follows:
7 (3) Clean-fuel vehicle property. The credit under this subsection for
8 clean-fuel vehicle property shall equal sixty percent of the cost of any
9 such property
10 (A) for which a deduction is allowed under section one hundred seven-
11 ty-nine-A of the internal revenue code (determined without regard to the
12 limitations prescribed in paragraph one of subsection (b) of such
13 section or the election referred to in subsection (e) of such section
14 with respect to section one hundred seventy-nine of such code), but not
15 including clean-fuel vehicle property relating to a qualified hybrid
16 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
17 of this subsection and
18 (B) which is installed in or manufactured as part of a motor vehicle
19 which is registered in this state,
20 (C) provided, however, the credit with respect to any such vehicle
21 shall not exceed five thousand dollars per vehicle for vehicles with a
22 gross vehicle weight rating of fourteen thousand pounds or less and ten
23 thousand dollars per vehicle for all other vehicles.
24 (4) Clean-fuel vehicle refueling property. The credit under this
25 subsection for clean-fuel vehicle refueling property shall equal fifty
26 percent of the cost of any such property
27 (A) which is located in this state and
28 (B) for which a deduction is allowed under section one hundred seven-
29 ty-nine-A of the internal revenue code (determined without regard to the
30 limitations prescribed in paragraph two of subsection (b) of such
31 section or the election referred to in subsection (e) of such section
32 with respect to section one hundred seventy-nine of such code), but not
33 including clean-fuel vehicle refueling property relating to a qualified
34 hybrid vehicle as such vehicle is defined in subparagraph (E) of para-
35 graph six of this subsection.
36 (5) Qualified hybrid vehicle. The credit under this subsection for
37 qualified hybrid vehicles shall equal two thousand dollars per vehicle
38 registered in this state[; provided, however, that such vehicle may not
39 qualify for both the credit under this paragraph and the clean-fuel
40 vehicle property credit permitted by paragraph three of this
41 subsection].
42 (6) Definitions. (A) The term "electric vehicle" means a qualified
43 electric vehicle within the meaning of subsection (c) of section thirty
44 of the internal revenue code.
45 (B) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
46 refueling property" mean any such property which is qualified within the
47 meaning of subsections (c) and (d), respectively, of section one hundred
48 seventy-nine-A of the internal revenue code, but such terms shall not
49 include clean-fuel vehicle property or clean-fuel vehicle refueling
50 property relating to a qualified hybrid vehicle as such vehicle is
51 defined in subparagraph (E) of this paragraph.
52 (C) The term "clean-fuel" means natural gas, liquefied petroleum gas,
53 hydrogen, electricity, and any other fuel which is at least eighty-five
54 percent, singly or in combination, methanol, ethanol, any other alcohol,
55 or ether.
S. 6060 19 A. 9560
1 (D) The term "incremental cost" shall mean the excess of the cost of
2 an electric vehicle over the cost of a gasoline-powered vehicle which is
3 similar in size and style.
4 (E) The term "qualified hybrid vehicle" means a motor vehicle, as
5 defined in section one hundred twenty-five of the vehicle and traffic
6 law, other than an electric vehicle (as such term is defined in subpara-
7 graph (A) of this paragraph), that:
8 (i) draws propulsion energy from both
9 (a) an internal combustion engine (or heat engine that uses combusti-
10 ble fuel); and
11 (b) an energy storage device; and
12 (ii) employs a regenerative vehicle braking system that recovers waste
13 energy to charge such energy storage device.
14 (9) Termination. This subsection shall not apply to property placed in
15 service in taxable years beginning after December thirty-first, two
16 thousand [three] four.
17 § 5. Paragraph 1 of subdivision (p) of section 1115 of the tax law, as
18 amended by chapter 597 of the laws of 2002, is amended to read as
19 follows:
20 (1) That portion of the receipts from the retail sale of a new alter-
21 native fuel vehicle which is attributable to the incremental cost of
22 such vehicle shall be exempt from the tax imposed under subdivision (a)
23 of section eleven hundred five of this article and that portion of the
24 consideration given or contracted to be given for such a vehicle which
25 is attributable to the incremental cost of such vehicle shall be exempt
26 from the compensating use tax imposed under section eleven hundred ten
27 of this article, but only where the incremental cost is separately stat-
28 ed in the written contract, if any, or on the bill rendered to the
29 purchaser; provided that the incremental cost of a two thousand through
30 two thousand two model year qualified hybrid vehicle need not be so
31 separately stated; provided, further, that the incremental cost of a
32 qualified hybrid vehicle purchased between March first, two thousand
33 four, and the date the chapter of the laws of two thousand four which
34 amends this paragraph becomes a law need not be so separately stated.
35 § 6. Subparagraph (iv) of paragraph 5 of subdivision (p) of section
36 1115 of the tax law, as amended by chapter 597 of the laws of 2002, is
37 amended to read as follows:
38 (iv) "incremental cost" means the increased sale price of an alterna-
39 tive fuel vehicle, above the sale price of a comparable motor vehicle
40 similar in all other respects but for the equipment necessary to render
41 it an alternative fuel vehicle, which increased sale price is attribut-
42 able to such vehicle being equipped to render it an alternative fuel
43 vehicle. [If no such comparable motor vehicle exists with respect to a
44 qualified hybrid vehicle, the incremental cost] Notwithstanding the
45 foregoing, the incremental cost of a qualified hybrid vehicle shall be
46 three thousand dollars;
47 § 7. Subdivision 21 of section 219 of part A of chapter 389 of the
48 laws of 1997, amending the tax law, the banking law, and other laws
49 relating to the 1997-1998 fiscal plan, as amended by chapter 597 of the
50 laws of 2002, is amended to read as follows:
51 (21) sections one hundred twenty-seven through one hundred thirty of
52 this act shall apply to property placed in service in taxable years
53 beginning on or after January 1, 1998, and section one hundred thirty-
54 one of this act shall take effect March 1, 1998 and shall apply to the
55 period commencing on such date and ending on February [29, 2004] 28,
56 2005, without interruption, when upon such ending date subdivision (p)
S. 6060 20 A. 9560
1 of section 1115 of the tax law shall be deemed REPEALED, provided howev-
2 er, that the commissioner of taxation and finance may take any action
3 with respect to the adoption, amendment, suspension or repeal of any
4 rule or regulation relating to sections one hundred twenty-seven through
5 one hundred thirty-two of this act, and may establish any procedure
6 necessary for the timely implementation thereof;
7 § 8. This act shall take effect immediately; provided, however, that
8 sections one through four of this act shall apply to taxable years
9 beginning on or after January 1, 2004; provided, further, that sections
10 five, six and seven of this act shall be deemed to have been in full
11 force and effect on and after March 1, 2004, and shall apply to sales
12 made, services rendered and uses occurring after March 1, 2004, although
13 made or occurring under a prior contract; and provided, further, that
14 the amendments to subdivision (p) of section 1115 of the tax law made by
15 sections five and six of this act shall not affect the repeal of such
16 subdivision and shall be deemed repealed therewith; and provided,
17 further, that the commissioner of taxation and finance shall be author-
18 ized on and after the date this act shall have become a law to adopt and
19 amend any rules or regulations and issue any procedures, forms or
20 instructions necessary to implement the provisions of this act on its
21 effective date.
22 PART G
23 Section 1. Subparagraph 1 of paragraph (d) of subdivision 1 of section
24 210 of the tax law, as amended by section 12 of part A of chapter 56 of
25 the laws of 1998, is amended to read as follows:
26 (1) The amount prescribed by this paragraph shall be for a taxpayer
27 which during the taxable year has:
28 (A) a gross payroll of twenty-five million dollars or more, ten thou-
29 sand dollars;
30 (B) a gross payroll of less than twenty-five million dollars, but more
31 than six million two hundred fifty thousand dollars [or more], [one]
32 five thousand [five hundred] dollars;
33 [(B)] (C) a gross payroll of [less than] no more than six million two
34 hundred fifty thousand dollars but more than one million dollars, four
35 hundred twenty-five dollars;
36 [(C)] (D) a gross payroll of no more than one million dollars but more
37 than five hundred thousand dollars, three hundred twenty-five dollars;
38 [(D)] (E) a gross payroll of no more than five hundred thousand
39 dollars [but more than two hundred fifty thousand dollars, two hundred
40 twenty-five dollars;
41 (E) a gross payroll of two hundred fifty thousand dollars or less]
42 (except as prescribed in clause (F) of this subparagraph), one hundred
43 dollars;
44 (F) a gross payroll of one thousand dollars or less, with total
45 receipts within and without this state of one thousand dollars or less,
46 and the average value of the assets of which are one thousand dollars or
47 less, eight hundred dollars.
48 § 2. This act shall take effect immediately and apply to taxable years
49 commencing on and after January 1, 2004.
50 PART H
S. 6060 21 A. 9560
1 Section 1. The section heading of section 696 of the tax law, as
2 amended by section 1 of part Q of chapter 85 of the laws of 2002, is
3 amended to read as follows:
4 Income taxes of members of armed forces, astronauts, and victims of
5 certain terrorist attacks.
6 § 2. The opening paragraph of subsection (a) of section 696 of the tax
7 law, as amended by chapter 549 of the laws of 1967, is amended to read
8 as follows:
9 In the case of an individual serving in the armed forces of the United
10 States, or serving in support of such armed forces, in an area desig-
11 nated by the president of the United States by executive order as a
12 "combat zone" at any time during the period designated by the president
13 by executive order as the period of combatant activities in such zone,
14 or when deployed outside the United States away from the individual's
15 permanent duty station while participating in an operation that is
16 either designated by the United States secretary of defense as a
17 "contingency operation" or which became a contingency operation due to
18 operation of law during the period of such contingency operation, or
19 hospitalized inside or outside the state as a result of injury received
20 while serving in such an area or operation during such time, the period
21 of service in such area or operation, plus the period of continuous
22 hospitalization inside or outside the state attributable to such injury,
23 and the next one hundred eighty days thereafter, shall be disregarded in
24 determining, under this article, in respect of the income tax liability
25 (including any interest, penalty, or addition to the tax) of such indi-
26 vidual --
27 § 3. Subsection (h) of section 696 of the tax law, as added by section
28 2 of part Q of chapter 85 of the laws of 2002, is amended to read as
29 follows:
30 (h) Individuals dying as a result of certain attacks and
31 astronauts.--(1) General. In the case of a specified terrorist victim or
32 astronaut, any tax imposed by this article shall not apply--
33 (A) with respect to the taxable year in which falls the date of death;
34 and
35 (B) with respect to any prior taxable year in the period beginning
36 with the last taxable year ending before the taxable year in which the
37 wounds or injury referred to in paragraph three of this subsection were
38 incurred.
39 (2) Taxation of certain benefits. Paragraph one of this subsection
40 shall not apply to the amount of any tax imposed by this article which
41 would be computed by only taking into account the items of income, gain,
42 or other amounts determined by the United States secretary of the treas-
43 ury to be taxable pursuant to paragraph 692(d)(3) of the internal reven-
44 ue code.
45 (3) Specified terrorist victim. For purposes of this subsection, the
46 term "specified terrorist victim" means any decedent who dies as a
47 result of wounds or injury incurred as a result of the terrorist attacks
48 against the United States on September eleventh, two thousand one,
49 provided, however, such term shall not include any individual identified
50 by the attorney general of the United States to have been a participant
51 or conspirator in any such attack or a representative of such an indi-
52 vidual.
53 (4) Astronaut. For purposes of this subsection, the term "astronaut"
54 means any astronaut whose death occurs in the line of duty after Decem-
55 ber thirty-first, two thousand two.
S. 6060 22 A. 9560
1 § 4. Subsection (c) of section 612 of the tax law is amended by adding
2 a new paragraph 8-b to read as follows:
3 (8-b) Income received by an individual who is a member of the New York
4 state organized militia, as such term is defined in subdivision one of
5 section two of the military law, as compensation for performing active
6 service of the state related to the efforts to combat terrorism within
7 the state pursuant to state active duty orders issued in accordance with
8 subdivision one of section six of the military law.
9 § 5. Subparagraph (B) of paragraph 5 of subdivision (a) of section
10 1116 of the tax law, as amended by chapter 408 of the laws of 1998, is
11 amended to read as follows:
12 (B) at least seventy-five percent of the members of which are past or
13 present members of the armed forces of the United States as defined in
14 section thirteen-a of the general construction law and substantially all
15 of the other members of which are individuals who are cadets or are
16 spouses, widows, [or] widowers, ancestors, or lineal descendants of past
17 or present members of the armed forces of the United States or of
18 cadets, and
19 § 6. The tax law is amended by adding a new section 27 to read as
20 follows:
21 § 27. Suspension of tax-exempt status of terrorist organizations. 1.
22 An organization that is removed from the tax-exempt organizations list
23 by the internal revenue service pursuant to subsection (p) of section
24 501 of title 26 of the United States Code shall not be exempt from any
25 tax, fee or other imposition administered by the commissioner, and it
26 shall also not be an exempt organization with respect to any sale,
27 transfer or assignment, beginning on the later of November eleventh, two
28 thousand three, or the date that the internal revenue service publishes
29 revocation of the organization's tax-exempt status. In the case of any
30 personal income or corporate franchise tax imposed under or pursuant to
31 the authority of this chapter, such revocation of exempt status shall
32 apply with respect to the entire taxable year in which the date of revo-
33 cation occurs and to subsequent taxable years.
34 2. An organization whose tax-exempt status has been revoked pursuant
35 to subdivision one of this section and whose tax-exempt status is later
36 restored by the internal revenue service shall be required to submit a
37 new application or applications and be approved before any such status
38 shall be restored with respect to any such tax, fee or other imposition
39 administered by the commissioner.
40 3. If an organization makes a sale of property or services on or after
41 the date its exempt status has been revoked under subdivision one of
42 this section, such sale shall be taxable; and the organization shall be
43 required to collect, pay or pay over any tax due on any such sale on or
44 after such date. If such organization fails to collect tax on any such
45 sale, the purchaser shall owe any tax due and shall pay it directly to
46 the commissioner in accordance with applicable law; provided, however,
47 that, if such purchaser does not have knowledge that such organization's
48 exempt status has been revoked, then such purchaser shall not be liable
49 for any penalty or interest for failing to file a return or to pay such
50 tax within thirty days of the date that such purchaser learns that the
51 tax is owed on such purchase.
52 § 7. This act shall take effect immediately; provided, however, that
53 section four of this act shall apply to taxable years beginning on or
54 after January 1, 2004; and provided, further, that section five of this
55 act shall take effect on June 1, 2004, and shall apply to sales made,
56 uses occurring and services rendered on or after such date, in accord-
S. 6060 23 A. 9560
1 ance with applicable transitional provisions in sections 1106 and 1217
2 of the tax law.
3 PART I
4 Section 1. Paragraph (a) of subdivision 3 of section 210 of the tax
5 law is amended by adding a new subparagraph 10 to read as follows:
6 (10) (A) Notwithstanding the foregoing provisions of this paragraph,
7 the business allocation percentage of a manufacturer shall be computed
8 in the manner set forth in this subparagraph.
9 (i) For taxable years beginning on or after January first, two thou-
10 sand five and before January first, two thousand six, the business allo-
11 cation percentage of a manufacturer shall be determined by adding
12 together the following percentages:
13 (I) the product of twenty percent and the percentage determined under
14 subparagraph one of this paragraph,
15 (II) the product of sixty percent and the percentage determined under
16 subparagraph two of this paragraph, and
17 (III) the product of twenty percent and the percentage determined
18 under subparagraph three of this paragraph.
19 (ii) For taxable years beginning on or after January first, two thou-
20 sand six and before January first, two thousand seven, the business
21 allocation percentage of a manufacturer shall be determined by adding
22 together the following percentages:
23 (I) the product of fifteen percent and the percentage determined under
24 subparagraph one of this paragraph,
25 (II) the product of seventy percent and the percentage determined
26 under subparagraph two of this paragraph, and
27 (III) the product of fifteen percent and the percentage determined
28 under subparagraph three of this paragraph.
29 (iii) For taxable years beginning on or after January first, two thou-
30 sand seven and before January first, two thousand eight, the business
31 allocation percentage of a manufacturer shall be determined by adding
32 together the following percentages:
33 (I) the product of ten percent and the percentage determined under
34 subparagraph one of this paragraph,
35 (II) the product of eighty percent and the percentage determined under
36 subparagraph two of this paragraph, and
37 (III) the product of ten percent and the percentage determined under
38 subparagraph three of this paragraph.
39 (iv) For taxable years beginning on or after January first, two thou-
40 sand eight and before January first, two thousand nine, the business
41 allocation percentage of a manufacturer shall be determined by adding
42 together the following percentages:
43 (I) the product of five percent and the percentage determined under
44 subparagraph one of this paragraph,
45 (II) the product of ninety percent and the percentage determined under
46 subparagraph two of this paragraph, and
47 (III) the product of five percent and the percentage determined under
48 subparagraph three of this paragraph.
49 (v) For taxable years beginning on or after January first, two thou-
50 sand nine, the business allocation percentage of a manufacturer shall be
51 the percentage provided for in subparagraph two of this paragraph.
52 (B) For purposes of this subparagraph, subdivision three-a of this
53 section and subdivision two-c of section two hundred nine-B of this
54 article, the term "manufacturer" shall mean a taxpayer which during the
S. 6060 24 A. 9560
1 taxable year is principally engaged in activities described in clause
2 (A) or (C), or any combination thereof, of subparagraph (i) of paragraph
3 (b) of subdivision twelve of this section. Moreover, for purposes of
4 computing a business allocation percentage in a combined report, the
5 entire combined group shall be considered a "manufacturer" for purposes
6 of this subparagraph if the combined group during the taxable year is
7 principally engaged in activities described in clause (A) or (C), or any
8 combination thereof, of subparagraph (i) of paragraph (b) of subdivision
9 twelve of this section. A taxpayer or a combined group shall be "princi-
10 pally engaged" in activities described in clause (A) or (C) of subpara-
11 graph (i) of paragraph (b) of subdivision twelve of this section if,
12 during the taxable year, more than fifty percent of the taxpayer's or
13 combined group's gross receipts are derived from such activities. In
14 computing a combined group's gross receipts, intercorporate receipts
15 shall be eliminated.
16 § 2. Paragraph (a) of subdivision 3-a of section 210 of the tax law,
17 as amended by chapter 170 of the laws of 1994, is amended to read as
18 follows:
19 (a) Multiply its alternative business income by an alternative busi-
20 ness allocation percentage determined pursuant to the method prescribed
21 in subdivision three of this section except that for taxable years
22 beginning before nineteen hundred ninety-four the additional percentage
23 (referred to in subparagraph four of paragraph (a) of such subdivision)
24 equal to the percentage determined under subparagraph two of paragraph
25 (a) of such subdivision shall be disregarded and not added together with
26 the other percentages, and except that the percentages employed in such
27 subdivision three shall be modified to reflect the factors utilized in
28 computing minimum taxable income, provided, however, that a taxpayer
29 principally engaged in the conduct of aviation (other than air freight
30 forwarders acting as principal and like indirect air carriers) shall
31 determine its alternative business allocation percentage pursuant to the
32 method prescribed in subparagraph seven of paragraph (a) of subdivision
33 three of this section, provided further, however, that a taxpayer which
34 is a manufacturer, as defined in clause (B) of subparagraph ten of para-
35 graph (a) of subdivision three of this section, shall determine its
36 alternative business allocation percentage pursuant to the method
37 prescribed in clause (A) of such subparagraph ten.
38 § 3. Section 209-B of the tax law is amended by adding a new subdivi-
39 sion 2-c to read as follows:
40 2-c. A taxpayer which is a manufacturer as defined in clause (B) of
41 subparagraph ten of paragraph (a) of subdivision three of section two
42 hundred ten of this article shall, notwithstanding the provisions of
43 subdivision two of this section, determine the percentage of its busi-
44 ness activity carried on within the metropolitan commuter transportation
45 district in the manner set forth in this subdivision.
46 (a) For taxable years beginning on or after January first, two thou-
47 sand five and before January first, two thousand six, the percentage of
48 a manufacturer's business activity carried on within the metropolitan
49 commuter transportation district shall be determined by adding together
50 the following percentages:
51 (i) the product of twenty percent and the percentage determined under
52 paragraph (a) of subdivision two of this section,
53 (ii) the product of sixty percent and the percentage determined under
54 paragraph (b) of subdivision two of this section, and
55 (iii) the product of twenty percent and the percentage determined
56 under paragraph (c) of subdivision two of this section.
S. 6060 25 A. 9560
1 (b) For taxable years beginning on or after January first, two thou-
2 sand six and before January first, two thousand seven, the percentage of
3 a manufacturer's business carried on within the metropolitan commuter
4 transportation district shall be determined by adding together the
5 following percentages:
6 (i) the product of fifteen percent and the percentage determined under
7 paragraph (a) of subdivision two of this section,
8 (ii) the product of seventy percent and the percentage determined
9 under paragraph (b) of subdivision two of this section, and
10 (iii) the product of fifteen percent and the percentage determined
11 under paragraph (c) of subdivision two of this section.
12 (c) For taxable years beginning on or after January first, two thou-
13 sand seven and before January first, two thousand eight, the percentage
14 of a manufacturer's business activity carried on within the metropolitan
15 commuter transportation district shall be determined by adding together
16 the following percentages:
17 (i) the product of ten percent and the percentage determined under
18 paragraph (a) of subdivision two of this section,
19 (ii) the product of eighty percent and the percentage determined under
20 paragraph (b) of subdivision two of this section, and
21 (iii) the product of ten percent and the percentage determined under
22 paragraph (c) of subdivision two of this section.
23 (d) For taxable years beginning on or after January first, two thou-
24 sand eight and before January first, two thousand nine, the percentage
25 of a manufacturer's business activity carried on within the metropolitan
26 commuter transportation district shall be determined by adding together
27 the following percentages:
28 (i) the product of five percent and the percentage determined under
29 paragraph (a) of subdivision two of this section,
30 (ii) the product of ninety percent and the percentage determined under
31 paragraph (b) of subdivision two of this section, and
32 (iii) the product of five percent and the percentage determined under
33 paragraph (c) of subdivision two of this section.
34 (e) For taxable years beginning on or after January first, two thou-
35 sand nine, the percentage of a manufacturer's business activity carried
36 on within the metropolitan commuter transportation district shall be the
37 percentage provided for in paragraph (b) of subdivision two of this
38 section.
39 § 4. This act shall take effect immediately.
40 PART J
41 Section 1. The tax law is amended by adding a new section 1105-D to
42 read as follows:
43 § 1105-D. State homeland security activities surcharges. (a) General.
44 In addition to the taxes imposed by sections eleven hundred five and
45 eleven hundred ten of this article, there are hereby imposed and there
46 shall be paid additional taxes: (1) at the rate of three percent, which
47 shall be identical to the sales and compensating use taxes imposed on
48 protective and detective services by paragraph eight of subdivision (c)
49 of section eleven hundred five and by clause (C) of subdivision (a) of
50 section eleven hundred ten of this article; and (2) at the rate of four
51 percent, which shall be identical to the sales tax imposed on admission
52 charges by paragraph one of subdivision (f) of section eleven hundred
53 five of this article. Such sections and the other sections of this arti-
54 cle, including the definition and exemption provisions, shall apply for
S. 6060 26 A. 9560
1 purposes of the taxes imposed by this section in the same manner and
2 with the same force and effect as if the language of those sections had
3 been incorporated in full into this section and had expressly referred
4 to the taxes imposed by this section.
5 (b) Transitional provisions. The transitional provisions contained in
6 subdivisions (a) and (d) of section eleven hundred six of this article
7 shall apply to the taxes imposed by this section, except that all refer-
8 ences in such subdivisions (a) and (d) to August first, nineteen hundred
9 sixty-five, shall be read as referring to the date this section takes
10 effect and all references in such subdivision (a) to April first, nine-
11 teen hundred sixty-five, shall be read as referring to the date which is
12 four months prior to the date this section takes effect.
13 (c) Deposit and disposition of revenue. (1) The taxes, interest and
14 penalties imposed by this section and received by the commissioner,
15 after deducting the amount which the commissioner shall determine to be
16 necessary for reasonable costs of the commissioner in administering,
17 collecting and distributing such taxes, shall be deposited daily with
18 such responsible banks, banking houses or trust companies, as may be
19 designated by the comptroller, to the credit of the comptroller. Such an
20 account may be established in one or more of such depositories. Such
21 deposits shall be kept separate and apart from all other money in the
22 possession of the comptroller. The comptroller shall require adequate
23 security from all such depositories. Of the total revenue collected or
24 received under this section, the comptroller shall retain in his or her
25 hands such amount as the commissioner may determine to be necessary for
26 refunds under this section.
27 (2) On or before the twelfth day of each month, after reserving such
28 amount for such refunds and such costs, the commissioner shall certify
29 to the comptroller the amount of all revenues so received during the
30 prior month as a result of the taxes, interest and penalties so imposed
31 and, in addition, on or before the last day of June, the commissioner
32 shall certify the amount of such revenues received during and including
33 the first twenty-five days of June. The amount of revenues so certified
34 shall be deposited by the comptroller into the public safety and securi-
35 ty account established by section ninety-seven-qq of the state finance
36 law.
37 § 2. Section 1148 of the tax law, as amended by chapter 170 of the
38 laws of 1994, is amended to read as follows:
39 § 1148. Deposit and disposition of revenue. All taxes, interest and
40 penalties collected or received by the commissioner under this article
41 shall be deposited and disposed of pursuant to the provisions of section
42 one hundred seventy-one-a of this chapter; provided however, the comp-
43 troller shall on or before the twelfth day of each month, pay all such
44 taxes, interest and penalties collected under this article and remaining
45 to the comptroller's credit in such banks, banking houses or trust
46 companies at the close of business on the last day of the preceding
47 month, into the general fund of the state treasury, except as otherwise
48 provided in sections ninety-two-d[,] and ninety-two-r [and ninety-two-t]
49 of the state finance law and sections eleven hundred two [and], eleven
50 hundred five-D and eleven hundred nine of this article.
51 § 3. Section 97-qq of the state finance law, as added by section 37 of
52 part E of chapter 58 of the laws of 1998, is amended to read as follows:
53 § 97-qq. [New York state wireless telephone emergency service] Public
54 safety and security account. 1. There is hereby established in the
55 custody of the state comptroller a special revenue fund to be known as
S. 6060 27 A. 9560
1 the "[New York state wireless telephone emergency service] public safety
2 and security account".
3 2. The [New York state wireless telephone emergency service] public
4 safety and security account shall consist of all monies deposited in
5 this account pursuant to a subsequent chapter of the laws of nineteen
6 hundred ninety-eight, all monies appropriated for its purpose, all
7 monies transferred to such account pursuant to law, and all monies
8 deposited pursuant to any other law to be paid into or credited to the
9 account, including all monies received by the account or donated to it.
10 § 4. Subdivision 3 of section 309 of the county law, as amended by
11 section 3 of part DD of chapter 85 of the laws of 2002, is amended to
12 read as follows:
13 3. Notwithstanding any provision of law to the contrary, all surcharge
14 monies collected and received by the commissioner of taxation and
15 finance pursuant to this section shall be deposited daily to the credit
16 of the comptroller with such responsible banks, banking houses or trust
17 companies as may be designated by the comptroller. Such deposits shall
18 be kept separate and apart from all other monies in the possession of
19 the comptroller. The comptroller shall require adequate security from
20 all such depositories. The comptroller shall, on or before the tenth day
21 of each month, pay all surcharge monies collected and received under
22 this section and remaining to the comptroller's credit as follows: (a)
23 forty-one and seven-tenths of the revenues collected and received under
24 this section into the state general fund; and (b) after deducting the
25 amount paid under paragraph (a) of this subdivision and the amount
26 retained by wireless communications suppliers pursuant to paragraph (c)
27 of subdivision two of this section, the balance of the revenues
28 collected under this section into the [statewide] public safety [commu-
29 nications] and security account of the miscellaneous special revenue
30 fund, created pursuant to section ninety-seven-qq of the state finance
31 law.
32 § 5. Subdivision 15 of section 325 of the county law, as added by
33 section 1 of part G of chapter 81 of the laws of 2002, is amended to
34 read as follows:
35 15. "Fund" shall mean the [statewide] public safety [communications]
36 and security account established pursuant to section ninety-seven-qq of
37 the state finance law.
38 § 6. This act shall take effect immediately; provided, however, that
39 sections one and two of this act shall take effect on the first day of
40 the sales tax quarterly period, as described in subdivision (b) of
41 section 1136 of the tax law, next commencing on or after the sixtieth
42 day after it shall have become a law and shall apply on and after that
43 date in accordance with the applicable transitional provisions of
44 section 1106 of the tax law.
45 PART K
46 Section 1. The alcoholic beverage control law is amended by adding a
47 new section 79-c to read as follows:
48 § 79-c. Out-of-state-winery direct shipper's license. 1. Persons
49 eligible. A person located in and licensed by another state to operate a
50 winery is eligible to apply for an annual out-of-state-winery direct
51 shipper's license which will permit such out-of-state-winery to ship no
52 more than two cases (no more than nine liters each case) of wine
53 produced by such winery per month to any New York state resident who is
54 at least twenty-one years of age, for such resident's personal use and
S. 6060 28 A. 9560
1 not for resale, provided that the state in which such out-of-state-win-
2 ery is located affords to New York state winery and farm winery licen-
3 sees an equal reciprocal shipping privilege.
4 2. License required. Before sending any shipment to a New York resi-
5 dent, an eligible out-of-state-winery must first receive New York state
6 liquor authority approval of an application for an out-of-state-winery
7 direct shipper's license. Such application shall set forth such informa-
8 tion as may be required by the New York state liquor authority, and be
9 accompanied by a fee of one hundred twenty-five dollars.
10 3. Licensee's responsibilities. The holder of an out-of-state-winery
11 direct shipper's license shall:
12 (a) ship no more than two cases (no more than nine liters each case)
13 per month of wine produced by such license holder directly to a New York
14 state resident who is at least twenty-one years of age, for such resi-
15 dent's personal use and not for resale.
16 (b) ensure that the outside of each shipping container used to ship
17 wine directly to a New York resident is conspicuously labeled with the
18 words: "CONTAINS WINE - SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR
19 DELIVERY", or with other language specifically approved by the New York
20 state liquor authority;
21 (c) report to the authority annually the total amount of wine shipped
22 into the state the preceding calendar year;
23 (d) require common carriers to obtain the signature of a person over
24 twenty-one years of age at the delivery address on a form to be
25 prescribed by the authority. One copy of the form shall be maintained by
26 the out-of-state-winery for a period of three years. One copy of the
27 form shall be forwarded to the authority within forty-five days of the
28 date of delivery;
29 (e) file returns with and pay to the New York state department of
30 taxation and finance all state and local sales taxes and excise taxes
31 due on sales into this state in accordance with the applicable
32 provisions of the tax law relating to such taxes, the amount of such
33 taxes to be determined on the basis that each sale in this state was at
34 the location where delivery is made;
35 (f) keep records for three years and permit the authority or the
36 department of taxation and finance to perform an audit of such out-
37 of-state-winery upon request;
38 (g) execute a written consent to the jurisdiction of this state, its
39 agencies and instrumentalities and the courts of this state concerning
40 enforcement of this section and any related laws, rules, or regulations,
41 including tax laws, rules or regulations;
42 (h) obtain a statement in a form to be prescribed by the authority
43 wherein the New York state resident who purchases the wine certifies
44 that he has not exceeded, and that with this purchase will not exceed,
45 the limitations on quantity of wine that may be shipped to any New York
46 resident at least twenty-one years of age;
47 (i) prior to obtaining an out-of-state-winery's direct shipper's
48 license, obtain a certificate of authority pursuant to section eleven
49 hundred thirty-four of the tax law and a registration as a distributor
50 pursuant to sections four hundred twenty-one and four hundred twenty-two
51 of the tax law; and
52 (j) collect, maintain, and annually report information required by the
53 New York state liquor authority, in such manner and form as the authori-
54 ty may direct, which information shall include, with respect to each
55 direct shipment into New York:
56 (1) the name and date of birth of the purchaser;
S. 6060 29 A. 9560
1 (2) the full mailing address of the purchaser, including zip code;
2 (3) the name, total quantity, and total price of wine purchased;
3 (4) the date purchased;
4 (5) the name and address of the person carrying the wine into New
5 York, and, if the person is other than the holder of the out-of-state-
6 winery direct shipper's license, the New York state license or permit
7 number of the person carrying the wine into New York; and
8 (6) the signature of the person filing the report.
9 4. Situs. Delivery of a shipment in this state by the holder of an
10 out-of-state-winery direct shipper's license shall be deemed to consti-
11 tute a sale in this state at the place of delivery and shall be subject
12 to all excise taxes levied pursuant to section four hundred twenty-four
13 of the tax law and all sales taxes levied pursuant to articles twenty-
14 eight and twenty-nine of such law.
15 5. Renewal. The out-of-state-winery may annually renew its direct
16 shipper's license with the authority by paying a one hundred twenty-five
17 dollar renewal fee, providing the authority, with a true copy of its
18 current license to manufacture wine issued in another state, and by
19 complying with such other procedures as prescribed by rule of the
20 authority.
21 6. Rules and regulations. The authority and the department of taxation
22 and finance may promulgate rules and regulations to effectuate the
23 purposes of this section.
24 7. Violations. Any violation of this section shall be the joint
25 responsibility of the licensee and the common carrier delivering the
26 wine.
27 8. Enforcement. The authority may enforce the requirements of this
28 section, including the requirements imposed on the common carrier, by
29 administrative proceedings to suspend, cancel or revoke an out-of-state-
30 winery direct shipper's license, and the authority may accept payment of
31 an administrative fine or bond forfeiture in addition to or in lieu of
32 suspension, cancellation or revocation.
33 § 2. Paragraphs (c) and (d) of subdivision 1 of section 102 of the
34 alcoholic beverage control law, as amended by chapter 242 of the laws of
35 1970, are amended to read as follows:
36 (c) [No] Except as provided in section seventy-nine-c of this chapter,
37 no alcoholic beverages shall be shipped into the state unless the same
38 shall be consigned to a person duly licensed hereunder to traffic in
39 alcoholic beverages. This prohibition shall apply to all shipments of
40 alcoholic beverages into New York state and includes importation or
41 distribution for commercial purposes, for personal use, or otherwise,
42 and irrespective of whether such alcoholic beverages were purchased
43 within or without the state, provided, however, this prohibition shall
44 not apply to any shipment consigned to a New York resident who has
45 personally purchased alcoholic beverages for his personal use while
46 outside the United States for a minimum period of forty-eight consec-
47 utive hours and which he has shipped as consignor to himself as
48 consignee. Purchases made outside the United States by persons other
49 than the purchaser himself, regardless whether made as his agent, or by
50 his authorization or on his behalf, are deemed not to have been
51 personally purchased within the meaning of this paragraph.
52 (d) [No] Except as provided in section seventy-nine-c of this chapter,
53 no common carrier or other person shall bring or carry into the state
54 any alcoholic beverages, unless the same shall be consigned to a person
55 duly licensed hereunder to traffic in alcoholic beverages, provided,
56 however, that alcoholic beverages may be delivered by a trucking permit-
S. 6060 30 A. 9560
1 tee from a steamship or railroad station or terminal to a New York resi-
2 dent who has personally purchased alcoholic beverages for his personal
3 use while outside the United States for a minimum period of forty-eight
4 consecutive hours, and which he has shipped as consignor to himself as
5 consignee, and except as so stated, no trucking permittee shall accept
6 for delivery, deliver or transport from a steamship or railroad station
7 or terminal any shipment of alcoholic beverages consigned to a non-li-
8 censed person having his home or business in New York state. Purchases
9 of alcoholic beverages made outside the United States by persons other
10 than the purchaser himself, regardless whether made as his agent, or by
11 his authorization or on his behalf, are deemed not to have been
12 personally purchased within the meaning of this paragraph.
13 § 3. Subdivision 3 of section 17 of the alcoholic beverage control
14 law, as separately amended by section 1 of part L of chapter 62 and
15 chapter 522 of the laws of 2003, is amended to read as follows:
16 3. To revoke, cancel or suspend for cause any license or permit issued
17 under this chapter and/or to impose a civil penalty for cause against
18 any holder of a license or permit issued pursuant to this chapter. Any
19 civil penalty so imposed shall not exceed the sum of ten thousand
20 dollars as against the holder of any retail permit issued pursuant to
21 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d and
22 paragraph f of subdivision one of section ninety-nine-b of this chapter
23 and as against the holder of any retail license issued pursuant to
24 sections fifty-two, fifty-three-a, fifty-four, fifty-four-a, fifty-five,
25 fifty-five-a, sixty-three, sixty-four, sixty-four-a, sixty-four-b,
26 sixty-four-c, seventy-nine, seventy-nine-c, eighty-one and eighty-one-a
27 of this chapter, and the sum of thirty thousand dollars as against the
28 holder of a license issued pursuant to sections fifty-three, seventy-
29 six, seventy-six-a, seventy-six-f, and seventy-eight of this chapter,
30 provided that the civil penalty against the holder of a wholesale
31 license issued pursuant to section fifty-three of this chapter shall not
32 exceed the sum of ten thousand dollars where that licensee violates
33 provisions of this chapter during the course of the sale of beer at
34 retail to a person for consumption at home, and the sum of one hundred
35 thousand dollars as against the holder of any license issued pursuant to
36 sections fifty-one, sixty-one and sixty-two of this chapter. Any civil
37 penalty so imposed shall be in addition to and separate and apart from
38 the terms and provisions of the bond required pursuant to section one
39 hundred twelve of this chapter. Provided that no appeal is pending on
40 the imposition of such civil penalty, in the event such civil penalty
41 imposed by the division remains unpaid, in whole or in part, more than
42 forty-five days after written demand for payment has been sent by first
43 class mail to the address of the licensed premises, a notice of impend-
44 ing default judgment shall be sent by first class mail to the licensed
45 premises and by first class mail to the last known home address of the
46 person who signed the most recent license application. The notice of
47 impending default judgment shall advise the licensee: (a) that a civil
48 penalty was imposed on the licensee; (b) the date the penalty was
49 imposed; (c) the amount of the civil penalty; (d) the amount of the
50 civil penalty that remains unpaid as of the date of the notice; (e) the
51 violations for which the civil penalty was imposed; and (f) that a judg-
52 ment by default will be entered in the supreme court of the county in
53 which the licensed premises are located, or other court of civil juris-
54 diction or any other place provided for the entry of civil judgments
55 within the state of New York unless the division receives full payment
56 of all civil penalties due within twenty days of the date of the notice
S. 6060 31 A. 9560
1 of impending default judgment. If full payment shall not have been
2 received by the division within thirty days of mailing of the notice of
3 impending default judgment, the division shall proceed to enter with
4 such court a statement of the default judgment containing the amount of
5 the penalty or penalties remaining due and unpaid, along with proof of
6 mailing of the notice of impending default judgment. The filing of such
7 judgment shall have the full force and effect of a default judgment duly
8 docketed with such court pursuant to the civil practice law and rules
9 and shall in all respects be governed by that chapter and may be
10 enforced in the same manner and with the same effect as that provided by
11 law in respect to execution issued against property upon judgments of a
12 court of record. A judgment entered pursuant to this subdivision shall
13 remain in full force and effect for eight years notwithstanding any
14 other provision of law.
15 § 4. This act shall take effect on the sixtieth day after it shall
16 have become a law; provided, however, that the amendments to subdivision
17 3 of section 17 of the alcoholic beverage control law made by section
18 three of this act shall take effect on the same date and in the same
19 manner as section 4 of chapter 522 of the laws of 2003, as amended,
20 takes effect; and provided, further, that effective immediately, the
21 addition, amendment and/or repeal of any rule or regulation necessary
22 for the implementation of this act on its effective date are hereby
23 authorized and directed to be made and completed on or before such
24 effective date.
25 PART L
26 Section 1. The tax law is amended by adding a new section 173-a to
27 read as follows:
28 § 173-a. Hearing rights upon notice and demand. 1. Applicability and
29 construction. (a) Applicability. Except as otherwise provided in this
30 section, this section shall apply with respect to any tax which is
31 administered by the commissioner and which is imposed by or authorized
32 to be imposed pursuant to this chapter or any other law. Unless a
33 different meaning is clearly required, any reference to "tax" or "taxes"
34 in this section shall be deemed also to refer to special assessments,
35 fees, interest, additions to tax, penalties or other impositions which
36 are administered by the commissioner.
37 (b) Exceptions to applicability. This section shall not apply to any
38 tax which is administered by the commissioner and which is imposed by or
39 authorized to be imposed pursuant to:
40 (i) Article ten of this chapter (taxable transfers - residents).
41 (ii) Article eleven of this chapter (tax on mortgages).
42 (iii) Article twelve of this chapter (tax on transfers of stock and
43 other corporate certificates).
44 (c) Construction. The provisions of this section shall supplement or
45 be in addition to the procedures relating to collection or adminis-
46 tration provided with respect to any tax covered by this section. Where
47 a provision of this section is inconsistent with any such provision with
48 respect to such tax, the provisions of this section shall apply.
49 2. Corporate and personal income taxes. With respect to any tax which
50 incorporates or otherwise utilizes the procedures set forth in part VI
51 of article twenty-two or article twenty-seven of this chapter,
52 provisions of law which authorize the issuance of a notice and demand
53 for an amount without the issuance of a notice of deficiency for such
54 amount, including any interest, additions to tax or penalties related
S. 6060 32 A. 9560
1 thereto, in cases of mathematical or clerical errors or failure to pay
2 tax shown on a return, or authorize the issuance of a notice of addi-
3 tional tax due, including any interest, additions to tax or penalties
4 related thereto, shall be construed as specifically denying and modify-
5 ing the right to a hearing with respect to any such notice and demand or
6 notice of additional tax due for purposes of subdivision four of section
7 two thousand six of this chapter. Any such notice and demand or notice
8 of additional tax due shall not be construed as a notice which gives a
9 person the right to a hearing under article forty of this chapter.
10 3. Sales and compensating use and miscellaneous taxes. With respect to
11 any tax to which this section applies and which is not covered by subdi-
12 vision two of this section:
13 (a) Final determination. The amount of tax which a return or report
14 shows to be due, the amount of tax which a return or report would have
15 shown to be due but for a mathematical or clerical error (including,
16 with respect to a tax payable by the purchase of stamps, the amount of
17 stamps purchased) or the amount of penalty and any interest due for
18 failing to file a return or report or to pay or pay over any tax (or to
19 pay for any stamps purchased) to the commissioner within the time
20 required by or pursuant to any such tax (but not including any such
21 penalty or interest attributable to any amount of tax with respect to
22 which a notice of determination is required to be issued) shall be
23 deemed to be finally determined to be due not later than on the date of
24 the filing of such return or report (including any amended return or
25 report showing an increase of tax or in the case of the purchase of
26 stamps, such date of purchase). Such amount of tax, penalty or interest
27 shall be paid upon notice and demand and shall be assessed, collected
28 and paid in the manner provided for in each of the several taxes covered
29 under this subdivision and such notice and demand shall not be consid-
30 ered as a notice of determination for purposes of the taxes covered
31 under this subdivision. If a notice of determination has been mailed
32 with respect to a tax covered under this subdivision, the amount of the
33 determination shall be deemed to be finally and irrevocably fixed on the
34 date specified in any such tax if no petition to the division of tax
35 appeals is filed, or, if a petition is filed, then upon the date when a
36 determination or decision rendered in the division of tax appeals estab-
37 lishing the amount of the notice of determination becomes final pursuant
38 to article forty of this chapter.
39 (b) Notice and demand. (1) The commissioner shall, as soon as practi-
40 cable, give notice to each person liable for any amount of tax, addition
41 to tax, penalty or interest, which has been finally determined to be due
42 or which has been finally and irrevocably fixed, as the case may be, but
43 remains unpaid, stating the amount and demanding payment thereof. Such
44 notice shall be left at the dwelling or usual place of business of such
45 person or shall be sent by mail to such person's last known address.
46 Except where the commissioner determines that collection would be jeop-
47 ardized by delay and the applicable tax contains provisions authorizing
48 a jeopardy procedure, if any tax is finally determined to be due or is
49 finally and irrevocably fixed prior to the last date (including any date
50 fixed by extension) prescribed for payment of such tax, payment of such
51 tax shall not be demanded until after such date. If the commissioner
52 finds that the determination, assessment or collection of tax, addition
53 to tax, penalty or interest is in jeopardy and the applicable tax
54 contains provisions authorizing procedures regarding early determi-
55 nation, the commissioner may immediately determine the amount of such
56 tax, addition to tax, penalty or interest (whether before or after the
S. 6060 33 A. 9560
1 due date of any return or report required to show such tax, addition to
2 tax, penalty or interest) and assess the same and give notice and demand
3 for the payment thereof.
4 (2) If notice and demand is made for payment of any amount under
5 subparagraph one of this paragraph, and if such amount is paid within
6 twenty-one calendar days (ten business days if the amount for which such
7 notice and demand is made equals or exceeds one hundred thousand
8 dollars) after the date of such notice and demand, interest under the
9 applicable tax on the amount so paid shall not be imposed for the period
10 after the date of such notice and demand.
11 (c) Hearing rights upon notice and demand. Provisions of law which
12 authorize the issuance of a notice and demand for an amount without the
13 issuance of a notice of determination for such amount, including any
14 interest or penalties related thereto, shall be construed as specif-
15 ically denying and modifying the right to a hearing with respect to any
16 such notice and demand for purposes of subdivision four of section two
17 thousand six of this chapter in cases of mathematical or clerical errors
18 or failure to pay the tax due shown on the return or for any stamps
19 purchased, and any interest or penalties related thereto. Any such
20 notice and demand shall not be construed as a notice which gives a
21 person the right to a hearing under article forty of this chapter.
22 § 2. Subsection (d) of section 681 of the tax law, as amended by chap-
23 ter 1011 of the laws of 1962, is amended to read as follows:
24 (d) Exceptions for mathematical or clerical errors.--If a mathematical
25 or clerical error appears on a return (including an overstatement of the
26 credit for income tax withheld at the source, or of the amount paid as
27 estimated income tax), the [tax commission] commissioner shall notify
28 the taxpayer that an amount of tax in excess of that shown upon the
29 return is due, and that such excess has been assessed. Such notice shall
30 not be considered as a notice of deficiency for the purposes of this
31 section, subsection (f) of section six hundred eighty-seven (limiting
32 credits or refunds after petition to the [tax commission] division of
33 tax appeals), [or] subsection (b) of section six hundred eighty-nine
34 (authorizing the filing of a petition with the [tax commission] division
35 of tax appeals based on a notice of deficiency), or article forty of
36 this chapter, nor shall such assessment or collection be prohibited by
37 the provisions of subsection (c).
38 § 3. Subsection (a) of section 682 of the tax law, as amended by chap-
39 ter 690 of the laws of 1964, is amended to read as follows:
40 (a) Assessment date.--The amount of tax which a return shows to be
41 due, or the amount of tax which a return would have shown to be due but
42 for a mathematical or clerical error, shall be deemed to be assessed on
43 the date of filing of the return (including any amended return showing
44 an increase of tax). In the case of a return properly filed without
45 computation of tax, the tax computed by the [tax commission] commission-
46 er shall be deemed to be assessed on the date on which payment is due.
47 If a notice of deficiency has been mailed, the amount of the deficiency
48 shall be deemed to be assessed on the date specified in subsection (b)
49 of section six hundred eighty-one if no petition to the [tax commission]
50 division of tax appeals is filed, or if a petition is filed, then upon
51 the date when a determination or decision [of] rendered in the [tax
52 commission] division of tax appeals establishing the amount of the defi-
53 ciency becomes final. If an amended return or report filed pursuant to
54 section six hundred fifty-nine concedes the accuracy of a federal change
55 or correction, any deficiency in tax under this article resulting there-
56 from shall be deemed to be assessed on the date of filing such report or
S. 6060 34 A. 9560
1 amended return, and such assessment shall be timely notwithstanding
2 section six hundred eighty-three. If a notice of additional tax due, as
3 prescribed in subsection (e) of section six hundred eighty-one, has been
4 mailed, the amount of the deficiency shall be deemed to be assessed on
5 the date specified in such subsection unless within thirty days after
6 the mailing of such notice a report of the federal change or correction
7 or an amended return, where such return was required by section six
8 hundred fifty-nine, is filed accompanied by a statement showing wherein
9 such federal determination and such notice of additional tax due are
10 erroneous. Any amount paid as a tax or in respect of a tax, other than
11 amounts withheld at the source or paid as estimated income tax, shall be
12 deemed to be assessed upon the date of receipt of payment, notwithstand-
13 ing any other provisions.
14 § 4. Subsection (c) of section 684 of the tax law, as added by chapter
15 1011 of the laws of 1962, is amended to read as follows:
16 (c) Exception for mathematical or clerical error.--No interest shall
17 be imposed on any underpayment of tax due solely to mathematical or
18 clerical error if the taxpayer files a return within the time prescribed
19 in this article (including any extension of time) and pays the amount of
20 underpayment within three months after the due date of such return, as
21 it may be extended.
22 § 5. Subsection (d) of section 1081 of the tax law, as added by chap-
23 ter 188 of the laws of 1964, is amended to read as follows:
24 (d) Exceptions for mathematical or clerical errors.---If a mathemat-
25 ical or clerical error appears on a return (including an overstatement
26 of the amount paid as estimated tax), the [tax commission] commissioner
27 shall notify the taxpayer that an amount of tax in excess of that shown
28 upon the return is due, and that such excess has been assessed. Such
29 notice shall not be considered as a notice of deficiency for the
30 purposes of this section, subsection (f) of section one thousand eight-
31 y-seven (limiting credits or refunds after petition to the [tax commis-
32 sion] division of tax appeals), [or] subsection (b) of section one thou-
33 sand eighty-nine (authorizing the filing of a petition with the [tax
34 commission] division of tax appeals based on a notice of deficiency), or
35 article forty of this chapter, nor shall such assessment or collection
36 be prohibited by the provisions of subsection (c).
37 § 6. Paragraph 1 of subsection (a) of section 1082 of the tax law, as
38 amended by chapter 788 of the laws of 1982, is amended to read as
39 follows:
40 (1) The amount of tax which a return shows to be due, or the amount of
41 tax which a return would have shown to be due but for a mathematical or
42 clerical error, shall be deemed to be assessed on the date of filing of
43 the return (including any amended return showing an increase of tax). If
44 a notice of deficiency has been mailed, the amount of the deficiency
45 shall be deemed to be assessed on the date specified in subsection (b)
46 of section one thousand eighty-one if no petition to the [tax commis-
47 sion] division of tax appeals is filed, or if a petition is filed, then
48 upon the date when a determination or decision [of] rendered in the [tax
49 commission] division of tax appeals establishing the amount of the defi-
50 ciency becomes final.
51 § 7. Subsection (c) of section 1084 of the tax law, as added by chap-
52 ter 188 of the laws of 1964, is amended to read as follows:
53 (c) Exception for mathematical or clerical error.--- No interest shall
54 be imposed on any underpayment of tax due solely to mathematical or
55 clerical error if the taxpayer files a return within the time prescribed
56 in article nine[, nine-a, nine-b or nine-c] or nine-A (including any
S. 6060 35 A. 9560
1 extension of time) and pays the amount of underpayment within three
2 months after the due date of such return, as it may be extended.
3 § 8. This act shall take effect immediately and shall apply to notice
4 and demands and notices of additional tax due issued on or after Decem-
5 ber 1, 2004.
6 PART M
7 Section 1. The tax law is amended by adding a new section 30 to read
8 as follows:
9 § 30. Corporation tax benefit transfer program. (a) Definitions. For
10 purposes of this section, the following terms shall have the following
11 meanings:
12 (1) The term "eligible biotechnology company" means a biotechnology
13 company subject to tax under article nine-A of this chapter which in the
14 year that it seeks approval to transfer tax benefits (i) is headquar-
15 tered or has its principal base of operations located in New York state;
16 and (ii) has less than two hundred twenty-five employees, at least
17 seventy-five percent of whom are employed in New York state; and (iii)
18 has not been a party to a liquidation of a corporation to which section
19 332 of the internal revenue code applies or to a reorganization under
20 subparagraph A, C, D, F or G of paragraph (1) of subsection (a) of
21 section 368 of the internal revenue code.
22 (2) The term "biotechnology company" means a company which is primari-
23 ly engaged in the business of applying technologies, such as recombinant
24 DNA techniques, biochemistry, molecular and cellular biology, genetics
25 and genetic engineering, biological cell fusion techniques, and new
26 bioprocesses, using living organisms, or parts of organisms, to produce
27 or modify products, to improve plants or animals, to develop microorgan-
28 isms for specific uses, to identify targets for small pharmaceutical
29 development, or to transform biological systems into useful processes
30 and products or to develop microorganisms for specific uses.
31 (3) The term "approved biotechnology company" means an eligible
32 biotechnology company which has received approval from the department of
33 economic development to transfer tax benefits.
34 (4) The term "tax benefit" means the product of (i) the amount of the
35 eligible biotechnology company's net operating loss carry forward
36 allowed pursuant to paragraph (f) of subdivision nine of section two
37 hundred eight of this chapter which the eligible biotechnology company
38 seeks to surrender and transfer pursuant to the corporate tax benefit
39 transfer program, (ii) the eligible biotechnology company's business
40 allocation percentage for the taxable year immediately preceding the
41 taxable year in which the tax benefit is transferred, and (iii) the tax
42 rate set forth in the opening paragraph of paragraph (a) of subdivision
43 one of section two hundred ten of this chapter which is in effect for
44 the taxable year in which the tax benefit is transferred.
45 (b) Establishment of corporation tax benefit transfer program. The
46 department of economic development shall establish a corporation tax
47 benefit transfer program to allow eligible biotechnology companies with
48 unused net operating loss carry forwards to transfer those tax benefits
49 for use by other corporate franchise tax taxpayers. However, those tax
50 benefits may not be transferred to (i) any entity which owns or
51 controls, directly or indirectly, five percent or more of the voting
52 rights or five percent or more of the value of all classes of stock or
53 other ownership interests in the eligible biotechnology company, or (ii)
54 any entity five percent or more of the voting rights of which or five
S. 6060 36 A. 9560
1 percent or more of the value of all classes of stock or other ownership
2 interests of which is owned or controlled, directly or indirectly, by
3 the same entity that owns or controls, directly or indirectly, five
4 percent or more of the voting rights of the eligible biotechnology
5 company or five percent or more of the value of classes of stock or
6 other ownership interests of the eligible biotechnology company.
7 (c) Review and approval of applications. (1) The department of econom-
8 ic development, in consultation with the department, shall review and
9 approve applications by eligible biotechnology companies with unused but
10 otherwise allowable net operating loss carry forwards for permission to
11 transfer all or a specifically identified part of those net operating
12 loss carry forwards to taxpayers subject to tax under article nine-A,
13 thirty-two or thirty-three of this chapter in exchange for a sum of
14 money to be paid by the recipient taxpayer equal to at least ninety
15 percent of the tax benefit being transferred.
16 (2) Applications for approval to transfer tax benefits shall be
17 submitted by eligible biotechnology companies to the department of
18 economic development by May first of each year.
19 (3) The commissioner of economic development shall adopt rules setting
20 forth the criteria to be used to review and approve or disapprove the
21 applications by eligible biotechnology companies to transfer tax bene-
22 fits. Such criteria shall include, but not be limited to, the following:
23 an evaluation of the eligible biotechnology company's actual or poten-
24 tial scientific and technological viability; a determination that the
25 eligible biotechnology company's principal products or services are
26 sufficiently innovative to provide a competitive advantage; a determi-
27 nation that the proceeds from the transfer of the tax benefits will
28 result in significant growth in permanent, full-time employment in the
29 state; a determination that the eligible biotechnology company does not
30 have sufficient resources to operate in the short term or cannot secure
31 financial assistance from venture capital, stock issuance, product sales
32 revenue, a parent corporation or other affiliated corporation, bank or
33 any other method of obtaining capital; and a determination that the
34 financial assistance provided by the transfer of tax benefits demon-
35 strates the prospect of a significant positive change in the eligible
36 biotechnology company's net income. In such rule, the commissioner shall
37 establish the weight to be given to each criteria.
38 (4) No application by an eligible biotechnology company to transfer
39 tax benefits shall be approved if the eligible biotechnology company (i)
40 has demonstrated positive net income in any of the two previous full
41 years of ongoing operations as determined on its financial statements;
42 (ii) has demonstrated a ratio in excess of one hundred ten percent or
43 greater of operating revenues divided by operating expenses in any of
44 the two previous full years of ongoing operations as determined on its
45 financial statements; or (iii) is at least fifty percent owned or
46 controlled, directly or indirectly, by another corporation that has
47 demonstrated positive net income in any of the two previous full years
48 of ongoing operations, as determined on such corporation's financial
49 statements or is part of a consolidated group of affiliated corpo-
50 rations, as filed for federal income tax purposes, that in the aggregate
51 has demonstrated positive net income in any of the two previous full
52 years of ongoing operations as determined on the financial statements of
53 such corporations.
54 (5) An eligible biotechnology company shall supply the department of
55 economic development with such financial statements, federal and state
56 income tax returns, and such other information as is needed to enable
S. 6060 37 A. 9560
1 such department to determine that all the criteria for approval have
2 been satisfied. All of the information submitted by the eligible
3 biotechnology company may be provided by the department of economic
4 development to the department in order for the department to assist in
5 the evaluation of the eligible biotechnology company's application.
6 (6) The department shall review the reports filed pursuant to article
7 nine-A of this chapter of an eligible biotechnology company to determine
8 such company's proper amount of tax benefits. Notwithstanding any
9 provision of subdivision eight of section two hundred eleven of this
10 chapter, the department is authorized and shall be required to notify
11 the department of economic development of such proper amount before the
12 department of economic development shall approve or disapprove such
13 company's application for approval to transfer tax benefits. Further,
14 notwithstanding any provision of subdivision eight of section two
15 hundred eleven, the department is authorized to provide the department
16 of economic development with any information included on any tax report
17 of an eligible biotechnology company filed pursuant to this chapter
18 which contains information relevant to the review by the department of
19 economic development of the eligible biotechnology company's applica-
20 tion. In addition, the department of economic development is authorized
21 to include information regarding the net operating loss deduction carry
22 forward and the approved biotechnology company's business allocation
23 percentage on the corporation tax benefit approval certificate.
24 (d) Aggregate limitation on amount of approved tax benefits. The
25 department of economic development is authorized to approve the transfer
26 of no more than ten million dollars in tax benefits per year for a peri-
27 od of ten years, starting in two thousand five. If the department of
28 economic development receives requests to transfer more than ten million
29 dollars in any year, the department shall allocate the transfer of tax
30 benefits by eligible biotechnology companies using the method set forth
31 in the following paragraphs.
32 (1) An approved biotechnology company with two hundred fifty thousand
33 dollars or less of tax benefits shall be authorized to transfer the
34 entire amount of its tax benefits.
35 (2) An approved biotechnology company with more than two hundred fifty
36 thousand dollars of tax benefits, which has never before been approved
37 to transfer tax benefits, shall be authorized to transfer a minimum of
38 two hundred fifty thousand dollars.
39 (3) An approved biotechnology company with more than two hundred fifty
40 thousand dollars of tax benefits that was approved to transfer tax bene-
41 fits in a prior year shall be authorized to transfer a minimum of two
42 hundred fifty thousand dollars or fifty percent of the tax benefits
43 transferred in prior years, whichever is greater, provided that the
44 amount of transferable tax benefits authorized shall not exceed the
45 eligible biotechnology company's tax benefits for the current year.
46 (4) (i) If, after applying the standards set forth in paragraphs one,
47 two and three of this subdivision, the department of economic develop-
48 ment has not exceeded the ten million dollar limitation for approved
49 transfers of tax benefits, the department of economic development shall
50 allocate the remainder of the amount allowed on a pro rata basis among
51 the approved biotechnology companies. Provided, however, that the amount
52 of transferable tax benefits authorized shall not exceed the approved
53 biotechnology company's tax benefits for the current year.
54 (ii) If, after applying the standards set forth in paragraphs one, two
55 and three of this subdivision, the department of economic development
56 would exceed the ten million dollar limitation for approved transfers of
S. 6060 38 A. 9560
1 tax benefits, the department of economic development shall allocate the
2 amount allowed by reducing the amount determined under paragraphs one,
3 two and three of this subdivision on a pro rata basis among the approved
4 biotechnology companies.
5 (e) Issuance of corporate tax benefit transfer approval certificates
6 and submission of information to the department. (1) The department of
7 economic development shall supply to each approved biotechnology company
8 with two certified copies of the corporation tax benefit approval
9 certificate which shall state the amount of the tax benefit approved and
10 explain the calculation of such tax benefit. One copy of this certif-
11 icate shall be attached to the approved biotechnology company's report
12 required to be filed under article nine-A of this chapter for the taxa-
13 ble year in which the tax benefit is transferred. One copy of this
14 certificate shall be provided to the taxpayer that has acquired the tax
15 benefit.
16 (2) The department of economic development shall supply the department
17 by March first of each year with the following information with respect
18 to the prior calendar year: information identifying all approved
19 biotechnology companies, the amount of tax benefits that have been allo-
20 cated to each approved biotechnology company for that year, information
21 identifying the taxpayers that have purchased tax benefits from approved
22 biotechnology companies, and information regarding any approvals that
23 have been rescinded pursuant to subdivision (f) of this section.
24 (f) Transfer of tax benefits. (1) Once an eligible biotechnology
25 company has received its approval to transfer tax benefits, such company
26 shall be permitted to transfer such tax benefits to a taxpayer subject
27 to tax under article nine-A or thirty-two or section fifteen hundred one
28 of this chapter. Such transfer must take place by December thirty-first
29 of the year in which the eligible biotechnology company has received its
30 approval to transfer tax benefits. If the transfer does not take place
31 by such date, the approval to transfer tax benefits is rescinded. The
32 approved biotechnology company shall notify the department of economic
33 development of the transfer within thirty days after the transfer has
34 taken place and provide such department with the name of the acquiring
35 taxpayer and the amount received by the approved biotechnology company
36 from such taxpayer for the transferred tax benefit.
37 (2) The amount received by the approved biotechnology company for the
38 transfer of the tax benefit shall be used to fund expenses incurred in
39 connection with the operation of such company in the state, including
40 but not limited to the expenses of fixed assets, such as the
41 construction and acquisition and development of real estate, materials,
42 working capital, salaries, research and development expenditures and any
43 other expenses determined by the department of economic development to
44 be necessary to carry out the purposes of the corporation tax benefit
45 transfer program.
46 (3) The amount of the net operating loss carry forward that is
47 included in the tax benefit transferred shall be deemed surrendered by
48 the approved biotechnology company and may not be deducted by such
49 company in any future taxable year.
50 (g) Acquisition of tax benefit. A taxpayer subject to tax under arti-
51 cle nine-A or thirty-two or section fifteen hundred one of this chapter
52 which has acquired a tax benefit from an approved biotechnology company
53 shall be allowed a deduction, in the year such tax benefit is acquired,
54 equal to the amount specified in paragraph (f) of subdivision three of
55 section two hundred ten, subsection (u) of section fourteen hundred
S. 6060 39 A. 9560
1 fifty-three or subdivision (d) of section fifteen hundred three, respec-
2 tively, of this chapter.
3 (h) Refunds precluded. An approved biotechnology company which has
4 transferred tax benefits shall be precluded from seeking a refund of tax
5 paid in any taxable year which contributed to or was included in the
6 calculation of the net operating loss carry forward which was the basis
7 of the amount of tax benefit transferred.
8 (i) Reports. The department of economic development shall be required
9 to provide a report, by April first of each year, commencing in two
10 thousand six, to the governor, the director of the division of the budg-
11 et, the temporary president of the senate and the speaker of the assem-
12 bly. Such report shall include information about the corporation tax
13 benefit transfer program. Such report shall include information about
14 the number of eligible biotechnology companies that applied to partic-
15 ipate in the program, the number of approved biotechnology companies,
16 the amount of tax benefits approved to be transferred and any other
17 information that describes the effectiveness of the corporation tax
18 benefit transfer program.
19 § 2. Paragraph (a) of subdivision 1 of section 210 of the tax law, as
20 amended by section 1 of part A of chapter 63 of the laws of 2000, is
21 amended to read as follows:
22 (a) Entire net income base. For taxable years beginning before July
23 first, nineteen hundred ninety-nine, the amount prescribed by this para-
24 graph shall be computed at the rate of nine percent of the taxpayer's
25 entire net income base. For taxable years beginning after June thirti-
26 eth, nineteen hundred ninety-nine and before July first, two thousand,
27 the amount prescribed by this paragraph shall be computed at the rate of
28 eight and one-half percent of the taxpayer's entire net income base. For
29 taxable years beginning after June thirtieth, two thousand and before
30 July first, two thousand one, the amount prescribed by this paragraph
31 shall be computed at the rate of eight percent of the taxpayer's entire
32 net income base. For taxable years beginning after June thirtieth, two
33 thousand one, the amount prescribed by this paragraph shall be computed
34 at the rate of seven and one-half percent of the taxpayer's entire net
35 income base. The taxpayer's entire net income base shall mean the
36 portion of the taxpayer's entire net income allocated within the state
37 as hereinafter provided, subject to any modification required by para-
38 graphs (d) [and], (e) and (f) of subdivision three of this section.
39 However, in the case of a small business taxpayer, as defined in para-
40 graph (f) of this subdivision, the amount prescribed by this paragraph
41 shall be computed as follows:
42 (i) if the entire net income base is not more than two hundred thou-
43 sand dollars, (1) for taxable years beginning before July first, nine-
44 teen hundred ninety-nine, the amount shall be eight percent of the
45 entire net income base; (2) for taxable years beginning after June thir-
46 tieth, nineteen hundred ninety-nine and before July first, two thousand
47 three, the amount shall be seven and one-half percent of the entire net
48 income base; and (3) for taxable years beginning after June thirtieth,
49 two thousand three, the amount shall be 6.85 percent of the entire net
50 income base;
51 (ii) if the entire net income base is more than two hundred thousand
52 dollars but not over two hundred ninety thousand dollars, (1) for taxa-
53 ble years beginning before July first, nineteen hundred ninety-nine, the
54 amount shall be the sum of (a) sixteen thousand dollars, (b) nine
55 percent of the excess of the entire net income base over two hundred
56 thousand dollars and (c) five percent of the excess of the entire net
S. 6060 40 A. 9560
1 income base over two hundred fifty thousand dollars; (2) for taxable
2 years beginning after June thirtieth, nineteen hundred ninety-nine and
3 before July first, two thousand, the amount shall be the sum of (a)
4 fifteen thousand dollars, (b) eight and one-half percent of the excess
5 of the entire net income base over two hundred thousand dollars and (c)
6 five percent of the excess of the entire net income base over two
7 hundred fifty thousand dollars; (3) for taxable years beginning after
8 June thirtieth, two thousand and before July first, two thousand one,
9 the amount shall be the sum of (a) fifteen thousand dollars, (b) eight
10 percent of the excess of the entire net income base over two hundred
11 thousand dollars and (c) two and one-half percent of the excess of the
12 entire net income base over two hundred fifty thousand dollars; (4) for
13 taxable years beginning after June thirtieth, two thousand one and
14 before July first, two thousand three, the amount shall be seven and
15 one-half percent of the entire net income base; and (5) for taxable
16 years beginning after June thirtieth, two thousand three, the amount
17 shall be the sum of (a) thirteen thousand seven hundred dollars, (b) 7.5
18 percent of the excess of the entire net income base over two hundred
19 thousand dollars and (c) 3.25 percent of the excess of the entire net
20 income base over two hundred fifty thousand dollars;
21 (iii) if the taxable period to which subparagraphs (i) and (ii) of
22 this paragraph apply is less than twelve months, the amount prescribed
23 by this paragraph shall be computed as follows:
24 (A) Multiply the entire net income base for such taxpayer by twelve;
25 (B) Divide the result obtained in (A) by the number of months in the
26 taxable year;
27 (C) Compute an amount pursuant to subparagraphs (i) and (ii) as if the
28 result obtained in (B) were the taxpayer's entire net income base;
29 (D) Multiply the result obtained in (C) by the number of months in the
30 taxpayer's taxable year;
31 (E) Divide the result obtained in (D) by twelve.
32 § 3. Subdivision 3 of section 210 of the tax law is amended by adding
33 a new paragraph (f) to read as follows:
34 (f) A taxpayer which has acquired a tax benefit, as defined in subdi-
35 vision (a) of section thirty of this chapter, from an approved biotech-
36 nology company, as defined in such subdivision (a), shall be allowed, in
37 the year such tax benefit is acquired, a deduction from the portion of
38 its entire net income allocated with the state. The amount of such
39 deduction shall be equal to the product of the amount of the net operat-
40 ing loss deduction carry forward surrendered by the approved biotechnol-
41 ogy company and the approved biotechnology company's business allocation
42 percentage for the taxable year immediately preceding the taxable year
43 in which the tax benefit is transferred. Such deduction shall not be
44 treated by such taxpayer as a net operating loss deduction. The taxpayer
45 shall attach its certified copy of the corporation tax benefit approval
46 certificate to its report required to be filed under this article for
47 the taxable year in which the tax benefit is transferred to such taxpay-
48 er.
49 § 4. Section 1453 of the tax law is amended by adding a new subsection
50 (u) to read as follows:
51 (u) A taxpayer which has acquired a tax benefit, as defined in subdi-
52 vision (a) of section thirty of this chapter, from an approved biotech-
53 nology company, as defined in such subdivision (a), shall be allowed, in
54 the year such tax benefit is acquired, a deduction from the portion of
55 its entire net income allocated with the state. The amount of such
56 deduction shall be equal to the product of the amount of the net operat-
S. 6060 41 A. 9560
1 ing loss deduction carry forward surrendered by the approved biotechnol-
2 ogy company and the approved biotechnology company's business allocation
3 percentage for the taxable year immediately preceding the taxable year
4 in which the tax benefit is transferred. Such deduction shall not be
5 treated by such taxpayer as a net operating loss deduction. The taxpayer
6 shall attach its certified copy of the corporation tax benefit approval
7 certificate to its return required to be filed under this article for
8 the taxable year in which the tax benefit is transferred to such taxpay-
9 er.
10 § 5. Section 1503 of the tax law is amended by adding a new subdivi-
11 sion (d) to read as follows:
12 (d) A taxpayer which has acquired a tax benefit, as defined in subdi-
13 vision (a) of section thirty of this chapter, from an approved biotech-
14 nology company, as defined in such subdivision (a), shall be allowed, in
15 the year such tax benefit is acquired, a deduction from the portion of
16 its entire net income allocated with the state. The amount of such
17 deduction shall be equal to the product of the amount of the net operat-
18 ing loss deduction carry forward surrendered by the approved biotechnol-
19 ogy company and the approved biotechnology company's business allocation
20 percentage for the taxable year immediately preceding the taxable year
21 in which the tax benefit is transferred. Such deduction shall not be
22 treated by such taxpayer as a net operating loss deduction. The taxpayer
23 shall attach its certified copy of the corporation tax benefit approval
24 certificate to its return required to be filed under this article for
25 the taxable year in which the tax benefit is transferred to such taxpay-
26 er.
27 § 6. This act shall take effect immediately and apply to taxable years
28 beginning on or after January 1, 2005.
29 PART N
30 Section 1. Paragraph 1 of subsection (a) of section 651 of the tax
31 law, as amended by chapter 333 of the laws of 1987, is amended to read
32 as follows:
33 (1) every resident individual (A) [required to file a federal income
34 tax return for the taxable year, or (B)] having federal adjusted gross
35 income for the taxable year, increased by the modifications under
36 subsection (b) of section six hundred twelve, in excess of [four thou-
37 sand dollars, or in excess of] his or her New York standard deduction,
38 [if lower,] or [(C)] (B) subject to tax under section six hundred two,
39 or [(D)] (C) having received during the taxable year a lump sum distrib-
40 ution any portion of which is subject to tax under section six hundred
41 three;
42 § 2. This act shall take effect immediately and shall apply to taxable
43 years beginning on or after January 1, 2004.
44 PART O
45 Section 1. The executive law is amended by adding a new section 10 to
46 read as follows:
47 § 10. Parity agreements with native American nations or tribes. 1.
48 Notwithstanding any other law, the state, through the governor, may
49 execute agreements with any native American nation or tribe within the
50 state to address issues of pricing and taxation with respect to the sale
51 of cigarettes, tobacco products, automotive fuel, alcoholic beverages
52 and other tangible personal property or services, or with respect to the
S. 6060 42 A. 9560
1 sale of any of the foregoing, when purchased by non-native Americans
2 from native American vendors on or from native American nation or tribal
3 lands.
4 2. Any such agreement shall contain provisions, to the extent feasi-
5 ble, aimed at providing price or tax parity with respect to the tangible
6 personal property or services to which the agreement relates, between
7 native American vendors and non-native American vendors.
8 § 2. The tax law is amended by adding a new section 17 to read as
9 follows:
10 § 17. Native American parity agreements. (a) Notwithstanding any other
11 law, in the event a native American nation or tribe enters into a parity
12 agreement with the state pursuant to section ten of the executive law
13 and while such agreement is in full force and effect: (i) a native Amer-
14 ican vendor may purchase cigarettes, tobacco products, automotive fuel
15 or alcoholic beverages exempt from the covered taxes, for resale on or
16 from the lands of such nation or tribe, provided such purchase for
17 resale is made in accordance with such agreement, and (ii) a wholesaler
18 located on the lands of such nation or tribe may purchase cigarettes,
19 tobacco products, automotive fuel and alcoholic beverages exempt from
20 the covered taxes, provided such purchase is made in accordance with
21 such agreement.
22 (b) Notwithstanding any other law, in the event a native American
23 nation or tribe enters into a parity agreement with the state pursuant
24 to section ten of the executive law and while such agreement is in full
25 force and effect, an exemption from or credit against the covered taxes
26 (except in the case of a purchase of a motor vehicle or vessel as
27 defined by section eleven hundred seventeen of this chapter) shall be
28 provided to the customer of a native American vendor or a native Ameri-
29 can hotel operator, with respect to sales of tangible personal property
30 or covered services made on or from the lands of such nation or tribe or
31 to rentals of hotel occupancy on such lands, which are made subject to
32 such nation's or tribe's taxes or fees in accordance with such agree-
33 ment. Such exemption or credit shall be equal to the amount of any such
34 nation's or tribe's taxes or fees paid or collected pursuant to such
35 agreement. Such exemption or credit shall not apply in the case of a
36 purchase for resale, or possession for resale, off nation or tribal
37 lands.
38 (c) Notwithstanding any other law: (i) the commissioner is authorized
39 to promulgate rules and regulations and prescribe mechanisms necessary
40 to implement the provisions of this section, including but not limited
41 to, the use of exemption certificates, credits, refunds, reimbursements
42 and stamps; (ii) the commissioner shall also have the authority to enter
43 into a written agreement with a native American nation or tribe to
44 provide for the mutual exchange of information, provided however, that
45 any such agreement shall provide that the disclosed information to such
46 nation shall be used only for tax administration purposes or in the
47 administration of such nation's or tribe's laws, ordinances, regulations
48 or similar enactments concerning trade or commerce.
49 (d) For purposes of this section, the following definitions shall
50 apply: (1) covered taxes shall mean the taxes imposed by or pursuant to
51 the authority of articles twelve-A, thirteen-A (except for the tax
52 imposed under section three hundred one-h of this chapter), eighteen,
53 twenty, twenty-eight and twenty-nine of this chapter which are the
54 subject of an agreement pursuant to section ten of the executive law;
55 and
S. 6060 43 A. 9560
1 (2) covered services shall mean the services or activities described
2 in paragraph three of subdivision (c) and subdivision (d) of section
3 eleven hundred five of this chapter.
4 § 3. Section 470 of the tax law is amended by adding a new subdivision
5 14 to read as follows:
6 14. "Stamps." Shall include any stamp, sticker, decal, label or other
7 indicia of tax status under this article, in such designs and denomi-
8 nations as the commissioner shall prescribe.
9 § 4. Section 471 of the tax law is amended by adding a new subdivision
10 4 to read as follows:
11 4. Notwithstanding subdivisions one and two of this section, an agent
12 who is a licensed wholesale dealer under this article may sell ciga-
13 rettes exempt from the tax imposed under this article to the extent
14 authorized by section seventeen of this chapter. Any such cigarettes
15 shall bear a stamp, as prescribed by the commissioner.
16 § 5. Section 6 of part T3 of chapter 62 of the laws of 2003, amending
17 the tax law relating to sales on native American nation or tribal lands,
18 is amended to read as follows:
19 § 6. This act shall take effect immediately; provided, however, that
20 the addition, amendment and/or repeal of any rule or regulation neces-
21 sary for the implementation of this act [on its effective date], which
22 shall be consistent with the constitution, laws and treaties of the
23 United States, are authorized and directed to be made [and], completed
24 [on or before the one hundred twentieth day after it shall have become a
25 law; provided further, however, that this act shall first apply to the
26 first tax period of the taxes imposed or amended by this act that
27 commence on or after the one hundred twentieth day after it shall have
28 become a law and to all tax periods thereafter] and in effect March 1,
29 2005; provided, however, the commissioner of taxation and finance, in
30 consultation with the attorney general, is authorized to delay or
31 suspend the implementation or enforcement of any such rule or regu-
32 lation, pending adjudication of any challenge to such rule or
33 regulation.
34 § 6. This act shall take effect immediately.
35 PART P
36 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
37 tax law relating to the franchise tax on banking corporations imposed by
38 the tax law, authorized to be imposed by any city having a population of
39 one million or more by chapter 772 of the laws of 1966 and imposed by
40 the administrative code of the city of New York and relating to other
41 provisions of the tax law, chapter 883 of the laws of 1975 and the
42 administrative code of the city of New York which relates to such fran-
43 chise tax, as amended by section 1 of part G3 of chapter 62 of the laws
44 of 2003, is amended to read as follows:
45 § 51. This act shall take effect immediately and shall apply to taxa-
46 ble years beginning on or after January 1, 1985, except that:
47 (a) sections one through eight shall not apply to taxable years begin-
48 ning on or after January 1, [2005] 2006;
49 (b) sections nine, twelve, the amendment made to paragraph 9 of
50 subsection (a) of section 1452 of the tax law by section thirteen,
51 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
52 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
53 of subdivision (a) of section 11-640 of the administrative code of the
54 city of New York by section thirty-three, sections thirty-five, thirty-
S. 6060 44 A. 9560
1 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
2 corporations other than savings banks and savings and loan associations
3 for taxable years beginning on or after January 1, [2005] 2006;
4 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
5 forty-two shall not apply to corporations other than savings banks and
6 savings and loan associations for taxable years beginning on or after
7 January 1, [2005] 2006, provided, however, that the provisions of such
8 sections which relate to the alternative minimum tax measured by taxable
9 assets shall continue to apply to all taxpayers for taxable years begin-
10 ning on or after January 1, [2005] 2006;
11 (d) the amendment to the section heading and the opening paragraph of
12 section 11-643.3 of the administrative code of the city of New York made
13 by section forty-three shall not apply to corporations other than
14 savings banks and savings and loan associations for taxable years begin-
15 ning on or after January 1, [2005] 2006 with respect to those provisions
16 of such section 11-643.3 which relate to the basic tax measured by
17 entire net income; and
18 (e) section twenty-eight, and the addition of new section 11-643.5 of
19 the administrative code of the city of New York made by section forty-
20 four shall not apply to corporations other than savings banks and
21 savings and loan associations for taxable years beginning on or after
22 January 1, [2005] 2006, provided, however, that the provisions of such
23 sections which relate to the alternative minimum taxes measured by
24 assets, issued capital stock and one hundred twenty-five dollars shall
25 continue to apply to all taxpayers for taxable years beginning on or
26 after January 1, [2005] 2006.
27 § 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
28 laws of 1987, amending the tax law and the environmental conservation
29 law, constituting the business tax reform and rate reduction act of
30 1987, as amended by section 2 of part G3 of chapter 62 of the laws of
31 2003, are amended to read as follows:
32 (d) The provisions of section sixty-seven except insofar as it amends
33 paragraph 10 of subsection (b) of section 1453 of the tax law, seventy-
34 one and seventy-four shall apply to taxable years beginning after Decem-
35 ber 31, 1986, provided, however, that new paragraphs 11 and 12 of
36 subsection (b) of section 1453 of the tax law as added by section
37 sixty-seven of this act, the amendments made by section seventy-one of
38 this act, and new subsection (i) of section 1453 of the tax law as added
39 by section seventy-four of this act shall not apply to taxable years
40 beginning on or after January 1, [2005] 2006;
41 (f) The provisions of section one hundred four of this act shall apply
42 to taxable years beginning after December 31, 1986, and shall not apply
43 to corporations other than savings banks and savings and loan associ-
44 ations for taxable years beginning on or after January 1, [2005] 2006,
45 provided, however, that the provisions of such section which relate to
46 the alternative minimum tax measured by taxable assets shall continue to
47 apply to all taxpayers for taxable years beginning on or after January
48 1, [2005] 2006.
49 § 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
50 of 1988, amending the tax law and the administrative code of the city of
51 New York relating to the imposition of taxes in the city of New York, as
52 amended by section 3 of part G3 of chapter 62 of the laws of 2003, are
53 amended to read as follows:
54 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
55 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
56 and forty-eight shall apply to taxable years beginning after December
S. 6060 45 A. 9560
1 31, 1986, provided, however, that the amendments made by sections thir-
2 ty-six and forty-one of this act, and new subdivision (i) of section
3 11-641 of the administrative code of the city of New York as added by
4 section forty-four of this act shall not apply to taxable years begin-
5 ning on or after January 1, [2005] 2006;
6 (d) The provisions of section forty-six shall apply to taxable years
7 beginning after December 31, 1986, and shall not apply to corporations
8 other than savings banks and savings and loan associations for taxable
9 years beginning on or after January 1, [2005] 2006, provided, however,
10 that the provisions of such section which relate to the alternative
11 minimum tax measured by taxable assets shall continue to apply to all
12 taxpayers for taxable years beginning on or after January 1, [2005]
13 2006;
14 § 4. Section 1452 of the tax law is amended by adding a new subsection
15 (k) to read as follows:
16 (k) Transitional provisions relating to the enactment and implementa-
17 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
18 to the contrary contained in this section, a corporation that was in
19 existence before January first, two thousand four and was subject to tax
20 under article nine-A of this chapter for its last taxable year beginning
21 before January first, two thousand four, shall continue to be taxable
22 under article nine-A for all taxable years beginning on or after January
23 first, two thousand four and before January first, two thousand six. The
24 preceding sentence shall not apply to any taxable year during which such
25 corporation is a banking corporation described in paragraphs one through
26 eight of subsection (a) of this section. Notwithstanding anything to
27 the contrary contained in this section, a banking corporation that was
28 in existence before January first, two thousand four and was subject to
29 tax under this article for its last taxable year beginning before Janu-
30 ary first, two thousand four, shall continue to be taxable under this
31 article for all taxable years beginning on or after January first, two
32 thousand four and before January first, two thousand six. Provided,
33 however, that nothing in this subsection shall prohibit a corporation
34 that elected pursuant to subsection (d) of this section to be taxable
35 under article nine-A of this chapter from revoking that election in
36 accordance with such subsection (d).
37 For purposes of this paragraph, a corporation shall be considered to
38 be subject to tax under article nine-A of this chapter for a taxable
39 year if such corporation was not a taxpayer but was properly included in
40 a combined report filed pursuant to section two hundred eleven of this
41 chapter for such taxable year and a corporation shall be considered to
42 be subject to tax under this article for a taxable year if such corpo-
43 ration was not a taxpayer but was properly included in a combined return
44 filed pursuant to subsection (f) or (g) of section fourteen hundred
45 sixty-two of this article for such taxable year. A corporation that was
46 in existence before January first, two thousand four but first becomes a
47 taxpayer in a taxable year beginning on or after January first, two
48 thousand four and before January first, two thousand six, shall be
49 considered for purposes of this paragraph to have been subject to tax
50 under article nine-A of this chapter for its last taxable year beginning
51 before January first, two thousand four, if such corporation would have
52 been subject to tax under such article for such taxable year if it had
53 been a taxpayer during such taxable year. A corporation that was in
54 existence before January first, two thousand four, but first becomes a
55 taxpayer in a taxable year beginning on or after January first, two
56 thousand four and before January first, two thousand six, shall be
S. 6060 46 A. 9560
1 considered for purposes of this paragraph to have been subject to tax
2 under this article for its last taxable year beginning before January
3 first, two thousand four if such corporation would have been subject to
4 tax under this article for such taxable year if it had been a taxpayer
5 during such taxable year.
6 (2) Notwithstanding anything to the contrary contained in this
7 section, a corporation formed on or after January first, two thousand
8 four and before January first, two thousand six may elect to be subject
9 to tax under this article or under article nine-A of this chapter for
10 its first taxable year beginning on or after January first, two thousand
11 four and before January first, two thousand six in which either (i)
12 sixty-five percent or more of its voting stock is owned or controlled,
13 directly or indirectly by a financial holding company, provided the
14 corporation whose voting stock is so owned or controlled is principally
15 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
16 of the federal bank holding company act of nineteen hundred fifty-six,
17 as amended and the regulations promulgated pursuant to the authority of
18 such section, or (ii) it is a financial subsidiary.
19 An election under this paragraph may not be made by a corporation
20 described in paragraphs one through eight of subsection (a) of this
21 section or in subsection (e) of this section. In addition, an election
22 under this paragraph may not be made by a corporation that is a party to
23 a reorganization, as defined in subsection (a) of section three hundred
24 sixty-eight of the internal revenue code of nineteen eighty-six, as
25 amended, of a corporation described in paragraph one of this subsection
26 if both corporations were sixty-five percent or more owned or
27 controlled, directly or indirectly, by the same interests at the time of
28 the reorganization. An election under this paragraph must be made by the
29 taxpayer on or before the due date for filing its return (determined
30 with regard to extensions of time for filing) for the applicable taxable
31 year. The election to be taxed under article nine-A of this chapter
32 shall be made by the taxpayer by filing the report required pursuant to
33 section two hundred eleven of this chapter and the election to be taxed
34 under this article shall be made by the taxpayer by filing the return
35 required pursuant to section fourteen hundred sixty-two of this article.
36 Any election made pursuant to this paragraph shall be irrevocable and
37 shall apply to each subsequent taxable year beginning on or after Janu-
38 ary first, two thousand four and before January first, two thousand six,
39 provided that the stock ownership requirements described in subparagraph
40 (i) of this paragraph are met or such corporation described in subpara-
41 graph (ii) of this paragraph continues as a financial subsidiary.
42 (3) For purposes of this section, a financial subsidiary means a
43 corporation (i) sixty-five percent or more of whose voting stock is
44 owned or controlled, directly or indirectly by a banking corporation
45 described in paragraph one, two or three of subsection (a) of this
46 section and (ii) is described in section 5136A(g) of the revised stat-
47 utes of the United States or section forty-six of the federal deposit
48 insurance act. For purposes of this article, the term "banking corpo-
49 ration" shall include a corporation electing to be taxed under this
50 article pursuant to paragraph two of this subsection for so long as such
51 election shall be in effect.
52 § 5. Subparagraph (iv) of paragraph 2 of subsection (f) of section
53 1462 of the tax law, as amended by section 5 of part G3 of chapter 62 of
54 the laws of 2003, is amended to read as follows:
55 (iv) (A) Notwithstanding any provision of this paragraph, any bank
56 holding company exercising its corporate franchise or doing business in
S. 6060 47 A. 9560
1 the state may make a return on a combined basis without seeking the
2 permission of the commissioner with any banking corporation exercising
3 its corporate franchise or doing business in the state in a corporate or
4 organized capacity sixty-five percent or more of whose voting stock is
5 owned or controlled, directly or indirectly, by such bank holding compa-
6 ny, for the first taxable year beginning on or after January first, two
7 thousand and before January first, two thousand [four] six during which
8 such bank holding company registers for the first time under the federal
9 bank holding company act, as amended, and also elects to be a financial
10 holding company. In addition, for each subsequent taxable year beginning
11 after January first, two thousand and before January first, two thousand
12 [four] six, any such bank holding company may file on a combined basis
13 without seeking the permission of the commissioner with any banking
14 corporation that is exercising its corporate franchise or doing business
15 in the state and sixty-five percent or more of whose voting stock is
16 owned or controlled, directly or indirectly, by such bank holding compa-
17 ny if either such banking corporation is exercising its corporate fran-
18 chise or doing business in the state in a corporate or organized capaci-
19 ty for the first time during such subsequent taxable year, or sixty-five
20 percent or more of the voting stock of such banking corporation is owned
21 or controlled, directly or indirectly, by such bank holding company for
22 the first time during such subsequent taxable year. Provided however,
23 for each subsequent taxable year beginning after January first, two
24 thousand and before January first, two thousand [four] six, a banking
25 corporation described in either of the two preceding sentences which
26 filed on a combined basis with any such bank holding company in a previ-
27 ous taxable year, must continue to file on a combined basis with such
28 bank holding company if such banking corporation, during such subsequent
29 taxable year, continues to exercise its corporate franchise or do busi-
30 ness in the state in a corporate or organized capacity and sixty-five
31 percent or more of such banking corporation's voting stock continues to
32 be owned or controlled, directly or indirectly, by such bank holding
33 company, unless the permission of the commissioner has been obtained to
34 file on a separate basis for such subsequent taxable year. Provided
35 further, however, for each subsequent taxable year beginning after Janu-
36 ary first, two thousand and before January first, two thousand [four]
37 six, a banking corporation described in either of the first two
38 sentences of this clause which did not file on a combined basis with any
39 such bank holding company in a previous taxable year, may not file on a
40 combined basis with such bank holding company during any such subsequent
41 taxable year unless the permission of the commissioner has been obtained
42 to file on a combined basis for such subsequent taxable year.
43 (B) Notwithstanding any provision of this paragraph other than clause
44 (A) of this subparagraph, the commissioner may not require a bank hold-
45 ing company which, during a taxable year beginning on or after January
46 first, two thousand and before January first, two thousand [four] six,
47 registers for the first time during such taxable year under the federal
48 bank holding company act, as amended, and also elects to be a financial
49 holding company, to make a return on a combined basis for any taxable
50 year beginning on or after January first, two thousand and before Janu-
51 ary first, two thousand [four] six with a banking corporation sixty-five
52 percent or more of whose voting stock is owned or controlled, directly
53 or indirectly, by such bank holding company.
54 § 6. Section 11-640 of the administrative code of the city of New York
55 is amended by adding a new subdivision (j) to read as follows:
S. 6060 48 A. 9560
1 (j) Transitional provisions relating to the enactment and implementa-
2 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
3 to the contrary contained in this section, a corporation that was in
4 existence before January first, two thousand four and was subject to tax
5 under subchapter two of this chapter for its last taxable year beginning
6 before January first, two thousand four, shall continue to be taxable
7 under subchapter two for all taxable years beginning on or after January
8 first, two thousand four and before January first, two thousand six. The
9 preceding sentence shall not apply to any taxable year during which such
10 corporation is a banking corporation described in paragraphs one through
11 eight of subdivision (a) of this section. Notwithstanding anything to
12 the contrary contained in this section, a banking corporation that was
13 in existence before January first, two thousand four and was subject to
14 tax under this subchapter for its last taxable year beginning before
15 January first, two thousand four, shall continue to be taxable under
16 this subchapter for all taxable years beginning on or after January
17 first, two thousand four and before January first, two thousand six.
18 Provided, however, that nothing in this subdivision shall prohibit a
19 corporation that elected pursuant to subdivision (d) of this section to
20 be taxable under subchapter two of this chapter from revoking that
21 election in accordance with subdivision (d) of this section.
22 For purposes of this paragraph, a corporation shall be considered to
23 be subject to tax under subchapter two of this chapter for a taxable
24 year if such corporation was not a taxpayer but was properly included in
25 a combined report filed pursuant to subdivision four of section 11-605
26 of this chapter for such taxable year and a corporation shall be consid-
27 ered to be subject to tax under this subchapter for a taxable year if
28 such corporation was not a taxpayer but was properly included in a
29 combined report filed pursuant to subdivision (f) or (g) of section
30 11-646 of this chapter for such taxable year. A corporation that was in
31 existence before January first, two thousand four but first becomes a
32 taxpayer in a taxable year beginning on or after January first, two
33 thousand four and before January first, two thousand six, shall be
34 considered for purposes of this paragraph to have been subject to tax
35 under subchapter two of this chapter for its last taxable year beginning
36 before January first, two thousand four if such corporation would have
37 been subject to tax under such subchapter for such taxable year if it
38 had been a taxpayer during such taxable year. A corporation that was in
39 existence before January first, two thousand four but first becomes a
40 taxpayer in a taxable year beginning on or after January first, two
41 thousand four and before January first, two thousand six, shall be
42 considered for purposes of this paragraph to have been subject to tax
43 under this subchapter for its last taxable year beginning before January
44 first, two thousand four if such corporation would have been subject to
45 tax under this subchapter for such taxable year if it had been a taxpay-
46 er during such taxable year.
47 (2) Notwithstanding anything to the contrary contained in this
48 section, a corporation formed on or after January first, two thousand
49 four and before January first, two thousand six may elect to be subject
50 to tax under this subchapter or under subchapter two of this chapter for
51 its first taxable year beginning on or after January first, two thousand
52 four and before January first, two thousand six in which either (i)
53 sixty-five percent or more of its voting stock is owned or controlled,
54 directly or indirectly by a financial holding company, provided the
55 corporation whose voting stock is so owned or controlled is principally
56 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
S. 6060 49 A. 9560
1 of the federal bank holding company act of nineteen hundred fifty-six,
2 as amended and the regulations promulgated pursuant to the authority of
3 such section or (ii) it is a financial subsidiary. An election under
4 this paragraph may not be made by a corporation described in paragraphs
5 one through eight of subdivision (a) of this section or in subdivision
6 (e) of this section. In addition, an election under this paragraph may
7 not be made by a corporation that is a party to a reorganization, as
8 defined in subsection (a) of section three hundred sixty-eight of the
9 internal revenue code of nineteen hundred eighty-six, as amended, of a
10 corporation described in paragraph one of this subdivision if both
11 corporations were sixty-five percent or more owned or controlled,
12 directly or indirectly by the same interests at the time of the reorgan-
13 ization.
14 An election under this paragraph must be made by the taxpayer on or
15 before the due date for filing its return (determined with regard to
16 extensions of time for filing) for the applicable taxable year. The
17 election to be taxed under subchapter two of this chapter shall be made
18 by the taxpayer by filing the return required pursuant to subdivision
19 one of section 11-605 of this chapter and the election to be taxed under
20 this subchapter shall be made by the taxpayer by filing the return
21 required pursuant to subdivision (a) of section 11-646 of this chapter.
22 Any election made pursuant to this paragraph shall be irrevocable and
23 shall apply to each subsequent taxable year beginning on or after Janu-
24 ary first, two thousand four and before January first, two thousand six,
25 provided that the stock ownership requirements described in subparagraph
26 (i) of this paragraph are met or such corporation described in subpara-
27 graph (ii) of this paragraph continues as a financial subsidiary.
28 (3) For purposes of this section, a financial subsidiary means a
29 corporation (i) sixty-five percent or more of whose voting stock is
30 owned or controlled, directly or indirectly by a banking corporation
31 described in paragraph one, two or three of subdivision (a) of this
32 section and (ii) is described in section 5136A(g) of the revised stat-
33 utes of the United States or section forty-six of the federal deposit
34 insurance act. For purposes of this subchapter, the term "banking corpo-
35 ration" shall include a corporation electing to be taxed under this
36 subchapter pursuant to paragraph two of this subdivision for so long as
37 such election shall be in effect.
38 § 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
39 11-646 of the administrative code of the city of New York, as amended by
40 section 7 of part G3 of chapter 62 of the laws of 2003, is amended to
41 read as follows:
42 (iv) (A) Notwithstanding any provision of this paragraph, any bank
43 holding company exercising its corporate franchise or doing business in
44 the city may make a return on a combined basis without seeking the
45 permission of the commissioner with any banking corporation exercising
46 its corporate franchise or doing business in the city in a corporate or
47 organized capacity sixty-five percent or more of whose voting stock is
48 owned or controlled, directly or indirectly, by such bank holding compa-
49 ny, for the first taxable year beginning on or after January first, two
50 thousand and before January first, two thousand [four] six during which
51 such bank holding company registers for the first time under the federal
52 bank holding company act, as amended, and also elects to be a financial
53 holding company. In addition, for each subsequent taxable year beginning
54 after January first, two thousand and before January first, two thousand
55 [four] six, any such bank holding company may file on a combined basis
56 without seeking the permission of the commissioner with any banking
S. 6060 50 A. 9560
1 corporation that is exercising its corporate franchise or doing business
2 in the city and sixty-five percent or more of whose voting stock is
3 owned or controlled, directly or indirectly, by such bank holding compa-
4 ny if either such banking corporation is exercising its corporate fran-
5 chise or doing business in the city in a corporate or organized capacity
6 for the first time during such subsequent taxable year, or sixty-five
7 percent or more of the voting stock of such banking corporation is owned
8 or controlled, directly or indirectly, by such bank holding company for
9 the first time during such subsequent taxable year. Provided however,
10 for each subsequent taxable year beginning after January first, two
11 thousand and before January first, two thousand [four] six, a banking
12 corporation described in either of the two preceding sentences which
13 filed on a combined basis with any such bank holding company in a previ-
14 ous taxable year, must continue to file on a combined basis with such
15 bank holding company if such banking corporation, during such subsequent
16 taxable year, continues to exercise its corporate franchise or do busi-
17 ness in the city in a corporate or organized capacity and sixty-five
18 percent or more of such banking corporation's voting stock continues to
19 be owned or controlled, directly or indirectly, by such bank holding
20 company, unless the permission of the commissioner has been obtained to
21 file on a separate basis for such subsequent taxable year. Provided
22 further, however, for each subsequent taxable year beginning after Janu-
23 ary first, two thousand and before January first, two thousand [four]
24 six, a banking corporation described in either of the first two
25 sentences of this clause which did not file on a combined basis with any
26 such bank holding company in a previous taxable year, may not file on a
27 combined basis with such bank holding company during any such subsequent
28 taxable year unless the permission of the commissioner has been obtained
29 to file on a combined basis for such subsequent taxable year.
30 (B) Notwithstanding any provision of this paragraph other than clause
31 (A) of this subparagraph, the commissioner may not require a bank hold-
32 ing company which, during a taxable year beginning on or after January
33 first, two thousand and before January first, two thousand [four] six,
34 registers for the first time during such taxable year under the federal
35 bank holding company act, as amended, and also elects to be a financial
36 holding company, to make a return on a combined basis for any taxable
37 year beginning on or after January first, two thousand and before Janu-
38 ary first, two thousand [four] six with a banking corporation sixty-five
39 percent or more of whose voting stock is owned or controlled, directly
40 or indirectly, by such bank holding company.
41 § 8. This act shall take effect immediately; provided however,
42 sections four, five, six and seven of this act shall apply to taxable
43 years beginning on or after January 1, 2004.
44 PART Q
45 Section 1. Section 606 of the tax law is amended by adding a new
46 subsection (gg) to read as follows:
47 (gg) STAR cost-of-living credit. (1) Allowance of credit. A taxpayer
48 shall be allowed a credit against the tax imposed by this article equal
49 to the product of his or her STAR tax savings appearing on his or her
50 school tax bill pursuant to subdivision two of section thirteen hundred
51 six-a of the real property tax law and the consumer price index adjust-
52 ment, provided, that in no case shall the sum of the STAR tax savings
53 and the credit exceed the school tax that would otherwise be due.
S. 6060 51 A. 9560
1 (2) Limitation. (A) For each taxable year no credit shall be allowed
2 under this subsection with respect to any STAR tax savings relating to a
3 school district whose budget enacted in such taxable year is not in
4 compliance with the statutory spending cap set forth in subdivision
5 seven of section two thousand twenty-two of the education law, as added
6 by a chapter of the laws of two thousand four. The commissioner of
7 education shall notify the commissioner by September first of each year
8 of those school districts whose budgets enacted in such year are not in
9 compliance with any such spending cap.
10 (B) For purposes of the credit allowed under this subsection, if two
11 or more taxpayers own real property which qualifies under subdivision
12 three of section four hundred twenty-five of the real property tax law
13 for the STAR exemption and such taxpayers file separate returns, such
14 taxpayers can only claim as a credit against the tax imposed by this
15 article the portion of the credit allowed under this subsection equal to
16 their percentage of ownership interest in such real property.
17 (3) Consumer price index adjustment. For purposes of this subsection,
18 the "consumer price index adjustment" applicable to a taxable year shall
19 be the percentage increase, if any, of the average of the monthly
20 consumer price indices published by the bureau of labor statistics for
21 the twelve-month period ending with the month of June in such taxable
22 year from the average of such monthly consumer price indices for the
23 twelve-month period ending with the month of June, two thousand three.
24 (4) Application of credit. If the amount of the credit allowed under
25 this subsection for any taxable year shall exceed the taxpayer's tax for
26 such year, the excess shall be treated as an overpayment of tax to be
27 credited or refunded in accordance with the provisions of section six
28 hundred eighty-six of this article, provided, however, that no interest
29 shall be paid thereon.
30 § 2. This act shall take effect immediately and shall apply to taxable
31 years beginning on or after January 1, 2004.
32 PART R
33 Section 1. The tax law is amended by adding a new section 1621 to read
34 as follows:
35 § 1621. Video lottery franchise gaming. a. The division is hereby
36 authorized to license, pursuant to rules and regulations to be promul-
37 gated by the division, the operation and conduct of a lottery to be
38 known as video lottery franchise gaming to be conducted at up to eight
39 venues throughout the state, each requiring a separate license.
40 Licenses shall be awarded by the division on a competitive basis and
41 each proposed video lottery franchise location shall be subject to the
42 approval of the division. Any entity, including but not limited to off
43 track betting corporations, which demonstrates to the satisfaction of
44 the division that it possesses the qualifications and expertise to oper-
45 ate video lottery franchise gaming shall be eligible to competitively
46 bid for one or more available licenses. Provided, however, that the
47 following geographic restrictions shall apply: (i) except as otherwise
48 authorized in this section, licenses may not be granted pursuant to this
49 section for locations within fifteen miles of any facility licensed
50 pursuant to section sixteen hundred seventeen-a of this article; (ii)
51 the operation of video lottery franchise gaming as authorized in this
52 section in the city of New York shall be permitted only in the counties
53 of New York south of 59th street, Kings and Richmond and at no more than
54 five locations; and (iii) licenses may not be granted pursuant to this
S. 6060 52 A. 9560
1 section for locations within the counties of Westchester, Rockland and
2 Putnam; provided, however, that any one or more of such geographic
3 restrictions may be waived by the division if any racetrack authorized
4 to conduct video lottery gaming pursuant to section sixteen hundred
5 seventeen-a of this article has not begun or is not scheduled to begin
6 operating video lottery gaming on or before April first, two thousand
7 five. Notwithstanding any inconsistent provision of law, video lottery
8 franchise gaming at each approved location pursuant to this section
9 shall be deemed an approved activity at such location under the relevant
10 city, county, town, or village land use or zoning ordinances, rules or
11 regulations. No entity operating video lottery franchise gaming pursuant
12 to this section may house such gaming activity in a structure deemed or
13 approved by the division as "temporary" for longer than eighteen months.
14 b. The division shall promulgate rules and regulations governing all
15 aspects of the operation and conduct of video lottery franchise gaming,
16 including but not limited to, the criteria for awarding such licenses,
17 establishing license fees, approving locations, setting agent fees and
18 establishing hours of operation, subject to the requirements of this
19 section. Criteria for awarding licenses shall include, but not be
20 limited to, maximizing financial support for education, timely implemen-
21 tation of video lottery franchise gaming, location and quality of the
22 facility and expertise of the applicant. Such rules and regulations may
23 be adopted on an emergency basis pursuant to section two hundred two of
24 the state administrative procedure act.
25 c. In consideration of its licensure and participation in video
26 lottery franchise gaming, each licensee shall pay a one-time license fee
27 to be established by the division for each license issued, to be paid
28 into the state treasury, to the credit of the state lottery fund created
29 by section ninety-two-c of the state finance law.
30 d. The specifications for video lottery franchise gaming shall be
31 designed in such a manner as to pay prizes that average no less than
32 ninety percent of sales.
33 e. Notwithstanding section one hundred twenty-one of the state finance
34 law, on or before the twentieth day of each month, the division shall
35 pay into the state treasury, to the credit of a separate and distinct
36 account to be known as the sound basic education account within the
37 state lottery fund created by section ninety-two-c of the state finance
38 law, the balance of the total revenue after payout for prizes, less an
39 amount established by such rules and regulations to be retained by the
40 division for operation, administration and procurement purposes; and
41 less a lottery agent fee to be paid to each licensee at a rate, to be
42 established by such rules and regulations, not to exceed twenty percent
43 of total revenue wagered after payout of prizes at such agent facility
44 which will provide the maximum lottery support for education while also
45 ensuring the effective implementation of this section through reasonable
46 reimbursements and compensation to the licensees for participation in
47 video lottery franchise gaming.
48 f. The director shall be authorized to enter into contracts as an
49 agent of the state with private entities and non-profit racing associ-
50 ations licensed pursuant to this section and section sixteen hundred
51 seventeen-a of this article to encourage the timely participation in
52 video lottery gaming. Such contracts may include a commitment by the
53 state that each video lottery gaming facility shall have the exclusive
54 right to operate such facility at its licensed location consistent with
55 the geographical restrictions contained in subdivision a of this section
56 for a term of ten years. Notwithstanding any other provision of law to
S. 6060 53 A. 9560
1 the contrary, an agreement by a video lottery gaming facility operator
2 to build and operate a licensed video lottery gaming facility shall be
3 deemed good and valid consideration for a commitment by the state for
4 such exclusive right to operate such facility.
5 g. Notwithstanding any law to the contrary, the division shall be
6 authorized to amend, upon negotiated agreement, competitively bid
7 contracts in force and valid on the effective date of this section in
8 connection with video lottery gaming authorized pursuant to section
9 sixteen hundred seventeen-a of this article to allow those contractors
10 to provide goods and services in furtherance of this section, and to
11 extend the terms of such contracts.
12 § 2. Subdivision b of section 1612 of the tax law, as amended by
13 section 3 of part W of chapter 63 of the laws of 2003, is amended to
14 read as follows:
15 b. Notwithstanding section one hundred twenty-one of the state finance
16 law, on or before the twentieth day of each month, the division shall:
17 (i) pay into the state treasury, to the credit of the state lottery fund
18 created by section ninety-two-c of the state finance law, not less than
19 forty-five percent of the total amount for which tickets have been sold
20 for games defined in paragraph four of subdivision a of this section
21 during the preceding month, not less than thirty-five percent of the
22 total amount for which tickets have been sold for games defined in para-
23 graph three of subdivision a of this section during the preceding month,
24 not less than twenty percent of the total amount for which tickets have
25 been sold for games defined in paragraph two of subdivision a of this
26 section during the preceding month, provided however that for games with
27 a prize payout of seventy-five percent of the total amount for which
28 tickets have been sold, the division shall pay not less than ten percent
29 of sales into the state treasury and not less than twenty-five percent
30 of the total amount for which tickets have been sold for games defined
31 in paragraph one of subdivision a of this section during the preceding
32 month; and (ii) pay into the state treasury, to the credit of a separate
33 account of the state lottery fund to be known as the sound basic educa-
34 tion account, which shall be kept separate and apart from all other
35 state lottery funds, the balance of the total revenue after payout for
36 prizes for games [known as "video lottery gaming,"] authorized pursuant
37 to section sixteen hundred seventeen-a of this article, less ten percent
38 of the total revenue wagered after payout for prizes to be retained by
39 the division for operation, administration, and procurement purposes;
40 and less a vendor's fee to be paid to the track operator at a rate of
41 twenty-nine percent of the total revenue wagered at the vendor track
42 after payout for prizes pursuant to this chapter, which amount shall be
43 paid to the operator of the racetrack for serving as a lottery agent
44 under this pilot program. In establishing the lottery agent fee, the
45 division shall ensure the maximum lottery support for education while
46 also ensuring the effective implementation of section sixteen hundred
47 seventeen-a of this article through the provision of reasonable
48 reimbursements and compensation to vendor tracks for participation in
49 such pilot program. Within twenty days after any award of lottery
50 prizes, the division shall pay into the state treasury, to the credit of
51 the state lottery fund, the balance of all moneys received from the sale
52 of all tickets for the lottery in which such prizes were awarded remain-
53 ing after provision for the payment of prizes as herein provided. Any
54 revenues derived from the sale of advertising on lottery tickets shall
55 be deposited in the state lottery fund.
S. 6060 54 A. 9560
1 § 3. This act shall take effect immediately, provided, however, that
2 the amendments to subdivision b of section 1612 of the tax law made by
3 section two of this act shall not affect the expiration of such subdivi-
4 sion and shall be deemed to expire therewith.
5 PART S
6 Section 1. Section 250 of the tax law is amended by adding a new
7 subdivision 2-a to read as follows:
8 2-a. In relation to the tax imposed pursuant to the authority of
9 section two hundred fifty-three-g of this article, the term "real prop-
10 erty" and the term "mortgage" as used in this article shall have the
11 meanings set forth in subdivision one of such section.
12 § 2. The tax law is amended by adding a new section 253-g to read as
13 follows:
14 § 253-g. Mortgage recording taxes. 1. Notwithstanding any provision
15 of law to the contrary, for purposes of this section, the following
16 terms shall have the following meanings:
17 (a) The term "cooperative interest" means an ownership interest in a
18 cooperative organization, which interest, when created, is coupled with
19 possessory rights of a proprietary nature in identified physical space
20 belonging to the cooperative organization. A subsequent termination of
21 the possessory rights shall not cause an ownership interest to cease
22 being a cooperative interest.
23 (b) The term "cooperative organization" means an organization which
24 has as its principal asset an interest in one or more buildings, or in
25 land and one or more buildings, and in which all ownership interests are
26 cooperative interests.
27 (c) The term "real property" means a cooperative interest in a cooper-
28 ative organization. Such real property shall be deemed to be situated
29 where the cooperative organization's buildings or lands are located.
30 (d) The term "mortgage" means a financing statement which satisfies
31 the requirements of article nine of the uniform commercial code and
32 which indicates that the secured party has a security interest in colla-
33 teral which is a cooperative interest.
34 (e) The term "recording of a mortgage" means the filing of a financing
35 statement pursuant to article nine of the uniform commercial code to
36 perfect a security interest in collateral which is a cooperative inter-
37 est.
38 2. Any locality authorized under this article to impose a mortgage
39 recording tax and any other county in the state, acting through its
40 local legislative body, is hereby authorized and empowered to adopt and
41 amend local laws imposing in such locality or county a tax at the rate
42 specified in subdivision five of this section for each one hundred
43 dollars and each remaining major fraction thereof of principal debt or
44 obligation which is or under any contingency may be secured at the date
45 of execution thereof, or at any time thereafter, by a mortgage on real
46 property situated within such locality or county and recorded on or
47 after the date upon which such tax takes effect.
48 3. Notwithstanding the provisions of section two hundred fifty-seven
49 of this article, the tax imposed pursuant to the authority of this
50 section shall be paid in the following manner to the recording officer
51 of the locality or county in which the mortgage is to be recorded. Upon
52 submission of a sworn statement of the secured party, in a form
53 prescribed by the commissioner, reciting the amount of principal debt or
54 obligation which is or under any contingency may be secured at the date
S. 6060 55 A. 9560
1 of execution thereof, or any time thereafter, or any new or further debt
2 or obligation secured by a mortgage, together with the amount of tax due
3 upon the recording of such mortgage, the recording officer shall issue a
4 certificate that the tax has been paid. Such certificate must be
5 attached to the mortgage and recorded with it. In lieu of such certif-
6 icate, such recording officer may indorse upon each mortgage a receipt
7 of the amount of tax paid. Any mortgage so indorsed may be recorded and
8 the receipt for such tax indorsed upon each mortgage shall be recorded
9 therewith. Such certificate or receipt shall be conclusive proof that
10 the amount of tax stated therein has been paid upon the recording of
11 such mortgage.
12 4. No remedy otherwise available to a secured party under article nine
13 of the uniform commercial code to enforce a security interest in a
14 collateral which is a cooperative interest shall be available to enforce
15 a mortgage, the recording of which is subject to the tax imposed pursu-
16 ant to the authority of this section, unless any such tax has been paid.
17 5. (a) General rate. Except as otherwise provided in this subdivision,
18 the rate of tax imposed pursuant to the authority of this section shall
19 be fifty cents for each one hundred dollars and each remaining fraction
20 thereof of principal debt or obligation which is or under any contingen-
21 cy may be secured at the date of execution thereof, or at any time ther-
22 eafter, by a mortgage on real property situated within such county which
23 is recorded on or after the date upon which such tax takes effect and a
24 tax of fifty cents on such mortgage if the principal debt or obligation
25 which is or by any contingency may be secured by such mortgage is less
26 than one hundred dollars.
27 (b) Special additional rate. In addition to the rate specified in
28 paragraph (a) of this subdivision, there shall be an additional rate of
29 tax imposed pursuant to the authority of this section with respect to
30 each mortgage of real property, except mortgages where the mortgagee is
31 a natural person or persons and the mortgaged premises consist of a real
32 property relating to six individual residential units or less, each with
33 separate cooking facilities, which rate shall be twenty-five cents for
34 each one hundred dollars and each remaining fraction thereof of princi-
35 pal debt or obligation which is, or under any contingency may be secured
36 at the date of execution thereof or any time thereafter by such mort-
37 gage. This portion of the tax shall, in cases of real property relating
38 in the aggregate to not more than six residential dwelling units, each
39 dwelling unit having its own separate cooking facilities, be paid by the
40 mortgagee, and such tax shall not be paid or payable, directly or indi-
41 rectly by the mortgagor and except that such tax shall be paid in such
42 cases by the mortgagor where the mortgagee is an exempt organization
43 described in paragraph (b) of subdivision one-a of section two hundred
44 fifty-three of this article.
45 (c) New York city rate. (i) The rate of tax imposed pursuant to the
46 authority of this section in any city in this state having a population
47 of one million or more shall be the sum of the rates of tax specified in
48 paragraphs (a) and (b) of this subdivision and the New York city rate
49 which shall be (I) with respect to real property securing a principal
50 debt or obligation of less than five hundred thousand dollars, one
51 dollar, (II) with respect to real property relating to an individual
52 residential dwelling unit securing a principal debt or obligation of
53 five hundred thousand dollars or more, one dollar and twelve and one-
54 half cents, and (III) with respect to all other real property, one
55 dollar and seventy-five cents, for each one hundred dollars and each
56 remaining major fraction thereof of principal debt or obligation which
S. 6060 56 A. 9560
1 is or under any contingency may be secured at the date of execution
2 thereof, or at any time thereafter, by a mortgage on such real property
3 which is recorded on or after the date upon which such tax takes effect.
4 (ii) For the purpose of determining whether a mortgage is subject to
5 the tax at the rate specified in clause (I) of subparagraph (i) of this
6 paragraph, the principal debt or obligation which is or under any
7 contingency may be secured at the date of execution thereof, or at any
8 time thereafter, by such mortgage shall be aggregated with the principal
9 debt or obligation which is or under any contingency may be secured at
10 the date of execution thereof, or at any time thereafter, by any other
11 mortgage in accordance with the provisions of paragraph (a) of subdivi-
12 sion two of section two hundred fifty-three-a of this article.
13 (d) Yonkers rate. The rate of tax imposed pursuant to the authority of
14 this section in the city of Yonkers shall be the sum of the rates of tax
15 specified in paragraphs (a) and (b) of this subdivision and the Yonkers
16 rate which shall be one dollar for each one hundred dollars and each
17 remaining major fraction thereof of principal debt or obligation which
18 is or under any contingency may be secured at the date of execution
19 thereof, or at any time thereafter, by a mortgage on real property situ-
20 ated within such city which is recorded on or after the date upon which
21 such tax takes effect.
22 (e) Broome county rate. The rate of tax imposed pursuant to the
23 authority of this section in Broome county shall be the sum of the rates
24 of tax specified in paragraphs (a) and (b) of this subdivision and the
25 Broome county rate which shall be twenty-five cents for each one hundred
26 dollars of principal debt or obligation which is or under any contingen-
27 cy may be secured at the date of execution thereof, or at any time ther-
28 eafter, by a mortgage on real property situated within such county which
29 is recorded on or after the date upon which such tax takes effect.
30 (f) Rockland county rate. The rate of tax imposed pursuant to the
31 authority of this section in Rockland county, shall be the sum of the
32 rates of tax specified in paragraphs (a) and (b) of this subdivision and
33 the Rockland county rate which shall be twenty-five cents for each one
34 hundred dollars of principal debt or obligation which is or under any
35 contingency may be secured at the date of execution thereof, or at any
36 time thereafter, by a mortgage on real property situated within such
37 county which is recorded on or after the date upon which such tax takes
38 effect.
39 6. Except as otherwise provided in this section, the taxes imposed
40 pursuant to the authority of this section shall be administered and
41 collected in the same manner as the taxes imposed under subdivision one
42 of section two hundred fifty-three and paragraph (b) of subdivision one
43 of section two hundred fifty-five of this article. Except as otherwise
44 provided in this section, all the provisions of this article relating to
45 or applicable to the administration and collection of the taxes imposed
46 by such subdivisions shall apply to the taxes imposed pursuant to the
47 authority of this section with such modifications as may be necessary to
48 adapt such language to the tax so authorized. Such provisions shall
49 apply with the same force and effect as if those provisions had been set
50 forth in full in this section except to the extent that any provision is
51 either inconsistent with a provision of this section or not relevant to
52 the tax authorized by this section. For purposes of this section, any
53 reference in this article to the tax or taxes imposed by this article
54 shall be deemed to refer to a tax imposed pursuant to this section, and
55 any reference to the phrase "within this state" shall be read as within
S. 6060 57 A. 9560
1 the applicable locality imposing the tax authorized pursuant to this
2 section, unless a different meaning is clearly required.
3 7. Where the real property covered by the mortgage subject to the tax
4 imposed pursuant to the authority of this section is situated in this
5 state but within and without the county imposing such tax, the amount of
6 such tax due and payable to such county shall be determined in a manner
7 similar to that prescribed in the first paragraph of section two hundred
8 sixty of this article which concerns real property situated in two or
9 more counties but which is applied in a manner appropriate to cooper-
10 ative interests and cooperative organizations. Where such property is
11 situated both within such county and without the state, the amount due
12 and payable to such county shall be determined in the manner prescribed
13 in the second paragraph of such section two hundred sixty which concerns
14 property situated within and without the state but which is applied in a
15 manner appropriate to cooperative interests and cooperative organiza-
16 tions. Where real property is situated within and without the county
17 imposing such tax, the recording officer of the jurisdiction in which
18 the mortgage is first recorded shall be required to collect the taxes
19 imposed pursuant to this section.
20 8. A tax imposed pursuant to the authority of this section shall be in
21 addition to the taxes imposed by section two hundred fifty-three of this
22 article.
23 9. (a) Notwithstanding any provision of this article to the contrary,
24 the balance of all moneys paid to the recording officer of a county
25 during each month upon account of the tax imposed pursuant to the
26 authority of this section, after deducting the necessary expenses of his
27 office as provided in section two hundred sixty-two of this article,
28 except taxes paid upon mortgages which under the provisions of this
29 section are first to be apportioned by the commissioner, shall be paid
30 over by such officer on or before the tenth day of each succeeding month
31 to the county treasurer or commissioner of finance, whichever term is
32 applicable, of such county, or in the counties of New York, Kings,
33 Queens, Richmond and Bronx to the commissioner of finance of such city.
34 The county treasurer or commissioner of finance, whichever term is
35 applicable, shall deduct from such amount the necessary expenses of his
36 office as provided in section two hundred sixty-two of this article.
37 (b) In each county, the portion of the net amount of the balance of
38 tax paid over to the county treasurer or commissioner of finance, which-
39 ever term is applicable, attributable to the general rate of tax imposed
40 pursuant to the authority of this section as described in paragraph (a)
41 of subdivision five of this section, shall be held by him and shall be
42 allocated to the tax districts of the county pursuant to the provisions
43 of subdivision three of section two hundred sixty-one of this article.
44 (c) In each county, the portion of the net amount of the balance of
45 tax paid over to the county treasurer or commissioner of finance, which-
46 ever term is applicable, attributable to the special additional rate of
47 tax imposed pursuant to the authority of this section as described in
48 paragraph (b) of subdivision five of this section, shall be deposited in
49 the general fund of such county for expenditure on any county purpose.
50 (d) In New York city, the portion of the net amount of the balance of
51 tax paid over to the commissioner of finance attributable to the New
52 York city rate of tax imposed pursuant to the authority of this section
53 as described in paragraph (c) of subdivision five of this section shall
54 be deposited in the general fund of such city for expenditure on any
55 city purpose.
S. 6060 58 A. 9560
1 (e) In Westchester county, the portion of the net amount of the
2 balance of tax paid over to the county treasurer attributable to the
3 Yonkers rate of tax imposed pursuant to the authority of this section as
4 described in paragraph (d) of subdivision five of this section shall be
5 deposited in the general fund of the city of Yonkers for expenditure on
6 city purposes pursuant to the provisions of subdivision five of section
7 two hundred fifty-three-d of this article.
8 (f) In Broome county, the portion of the net amount of the balance of
9 tax paid over to the commissioner of finance of Broome county attribut-
10 able to the Broome county rate of tax imposed pursuant to the authority
11 of this section as described in paragraph (e) of subdivision five of
12 this section shall be deposited in the general fund of the county of
13 Broome pursuant to the provisions of subdivision five of section two
14 hundred fifty-three-e of this article and used for the purposes speci-
15 fied in subdivision five of section two hundred fifty-three-e of this
16 article.
17 (g) In Rockland county, the portion of the net amount of the balance
18 of tax paid over to the commissioner of finance of Rockland county
19 attributable to the Rockland county rate of tax imposed pursuant to the
20 authority of this section as described in paragraph (f) of subdivision
21 five of this section shall be deposited in the general fund of the coun-
22 ty of Rockland pursuant to the provisions of subdivision five of section
23 two hundred fifty-three-f of this article and used for the purposes
24 specified in subdivision five of section two hundred fifty-three-f of
25 this article.
26 10. Any local law imposing a tax pursuant to the authority of this
27 section or repealing or suspending such a tax shall take effect only on
28 the first day of a calendar month. Such a local law shall not be effec-
29 tive unless a certified copy thereof is mailed by registered or certi-
30 fied mail to the commissioner at the commissioner's office in Albany at
31 least thirty days prior to the date the local law shall take effect.
32 Certified copies of any local law described in this section shall also
33 be filed with the county clerk of the county or locality imposing the
34 tax authorized by this section, the secretary of state and the state
35 comptroller within five days after the date it is duly enacted.
36 § 3. Paragraphs 6 and 7 of subsection (b) of section 9--516 of the
37 uniform commercial code, as added by chapter 84 of the laws of 2001, are
38 amended and a new paragraph 8 is added to read as follows:
39 (6) in the case of an assignment reflected in an initial financ-
40 ing statement under Section 9--514(a) or an amendment filed
41 under Section 9--514(b), the record does not provide a name
42 and mailing address for the assignee; [or]
43 (7) in the case of a continuation statement, the record is not
44 filed within the six-month period prescribed by Section
45 9--515(d)[.]; or
46 (8) in the case of a cooperative interest, the tax imposed pursu-
47 ant to the authority of section two hundred fifty-three-g of
48 the tax law has not been paid.
49 § 4. Subparagraph (D) of paragraph 1 of subsection (b) of section 631
50 of the tax law, as added by chapter 586 of the laws of 1999, is amended
51 and a new subparagraph (E) is added to read as follows:
52 (D) winnings from a wager placed in a lottery conducted by the divi-
53 sion of the lottery, if the proceeds from such wager exceed five thou-
54 sand dollars[.]; or
55 (E) gains from the sale, conveyance or other disposition of shares of
56 stock in a cooperative housing corporation in connection with the grant
S. 6060 59 A. 9560
1 or transfer of a proprietary leasehold by the owner thereof and subject
2 to the provisions of article thirty-one of this chapter, whether such
3 shares are held by a partnership, trust or otherwise.
4 § 5. Paragraph 2 of subsection (b) of section 631 of the tax law, as
5 amended by chapter 586 of the laws of 1999, is amended to read as
6 follows:
7 (2) Income from intangible personal property, including annuities,
8 dividends, interest, and gains from the disposition of intangible
9 personal property, shall constitute income derived from New York sources
10 only to the extent that such income is from property employed in a busi-
11 ness, trade, profession, or occupation carried on in this state or from
12 winnings from a wager placed in a lottery conducted by the division of
13 the lottery, if the proceeds from such wager exceed five thousand
14 dollars. Income from the disposition of intangible personal property
15 shall also constitute income derived from New York sources to the extent
16 such gains are from the sale, conveyance or other disposition of shares
17 of stock in a cooperative housing corporation in connection with the
18 grant or transfer of a proprietary leasehold by the owner thereof and
19 subject to the provisions of article thirty-one of this chapter, whether
20 such shares are held by a partnership, trust or otherwise.
21 § 6. Subsection (a) of section 663 of the tax law, as amended by
22 section 1 of part P of chapter 686 of the laws of 2003, is amended to
23 read as follows:
24 (a) Upon the sale of real property within the state by a nonresident
25 taxpayer, the nonresident shall estimate the personal income tax liabil-
26 ity on the gain, if any, from such sale or transfer. In addition, upon
27 the sale, conveyance or other disposition of shares of stock in a coop-
28 erative housing corporation in connection with the transfer of a propri-
29 etary leasehold by the owner thereof and subject to the provisions of
30 article thirty-one of this chapter, the nonresident shall estimate the
31 personal income tax liability on the gain, if any, from such sale,
32 conveyance or other disposition.
33 § 7. Paragraph 3 of subsection (c) of section 663 of the tax law, as
34 amended by section 1 of part P of chapter 686 of the laws of 2003, is
35 amended and a new paragraph 4 is added to read as follows:
36 (3) The transferor or transferee is an agency or authority of the
37 United States of America, an agency or authority of the state of New
38 York, the Federal National Mortgage Association, the Federal Home Loan
39 Mortgage Corporation, or the Government National Mortgage Association,
40 or a private mortgage insurance company[.]; or
41 (4) The proprietary leasehold being transferred in connection with the
42 sale, conveyance or other disposition of the shares of stock in a coop-
43 erative housing corporation is a principal residence of the seller or
44 transferor within the meaning of section 121 of the Internal Revenue
45 Code;
46 § 8. Section 663 of the tax law is amended by adding a new subsection
47 (i) to read as follows:
48 (i) The estimated personal income tax liability on the gain, if any,
49 from the sale, conveyance or other disposition of shares of stock in a
50 cooperative housing corporation shall be paid to the commissioner no
51 later than the fifteenth day after the delivery of the instrument
52 affecting such sale, conveyance or other disposition. For purposes of
53 this section, the date of the instrument affecting such sale, conveyance
54 or other disposition shall be presumed to be the date of delivery of
55 such instrument.
S. 6060 60 A. 9560
1 § 9. This act shall take effect immediately; provided, however, that
2 sections four and five of this act shall apply to taxable years begin-
3 ning on or after January 1, 2004; and sections six through eight of this
4 act shall take effect on the ninetieth day after this act shall have
5 become a law and apply to sales, conveyances or other dispositions
6 occurring on or after such date.
7 PART T
8 Section 1. Section 956 of the general municipal law, as amended by
9 chapter 708 of the laws of 1993, is amended to read as follows:
10 § 956. Statement of legislative findings and declaration. It is here-
11 by found and declared that given the intensely competitive nature of the
12 evolving global economy and the changing industrial and economic envi-
13 ronment, the state's ability to attract and retain businesses depends
14 largely upon decreasing the tax and economic burden on businesses that
15 locate and operate business facilities or operations in the state. Given
16 these circumstances and the critical importance of the state's economic
17 future, state and local government must provide extraordinary economic
18 incentives in order to help stimulate private investment, private busi-
19 ness development and job creation in the state. It is the public policy
20 of the state to offer special incentives and assistance that will
21 promote the development of new businesses, and the expansion or
22 retention of existing businesses throughout the state. It is further
23 found and declared that it is the public policy of the state that to
24 increase the state's competitiveness and attractiveness in order to help
25 stimulate private investment, private business development and job
26 creation requires the mutual cooperation of all levels of state and
27 local government and the business community.
28 It is hereby further found and declared that there exist within the
29 state certain areas characterized by persistent and pervasive poverty,
30 high unemployment, limited new job creation, a dependence on public
31 assistance income, dilapidated and abandoned industrial and commercial
32 facilities, and shrinking tax bases. These severe conditions require
33 state and local government to target for these areas extraordinary
34 economic and human resource development programs in order to stimulate
35 private investment, private business development and job creation. It is
36 the public policy of the state to offer special incentives and assist-
37 ance that will promote the development of new businesses, the expansion
38 of existing businesses and the development of human resources within
39 these economically impoverished areas and to do so without encouraging
40 the relocation of business investment from other areas of the state. It
41 is further found and declared that it is the public policy of the state
42 to achieve these goals through the mutual cooperation of all levels of
43 state and local government and the business community.
44 § 2. Subdivisions (a), (e), (f), (k), (m), (p), (q) and (r) of section
45 957 of the general municipal law, subdivision (a) as added by chapter
46 686 of the laws of 1986, subdivision (e) as amended and subdivision (m)
47 as added by chapter 708 of the laws of 1993, subdivision (f) as amended
48 and subdivision (k) as added by chapter 624 of the laws of 1990, subdi-
49 vision (p) as added by chapter 170 of the laws of 1994, subdivisions (q)
50 and (r) as added by section 1 of part Q of chapter 84 of the laws of
51 2002, subdivisions (a), (e), (f), (k) and (m) as further amended by
52 section 15 of part GG of chapter 63 of the laws of 2000, are amended and
53 four new subdivisions (s), (t), (u) and (v) are added to read as
54 follows:
S. 6060 61 A. 9560
1 (a) "Applicant" shall mean the county, city, town or village submit-
2 ting an application pursuant to this article and in the manner author-
3 ized by local law for designation of an area as an empire zone.
4 (e) "Local empire zone administrative board" shall mean the entity
5 designated by the applicant that is responsible for monitoring, evaluat-
6 ing and coordinating all empire zone benefits on behalf of the appli-
7 cant. Such entity shall consist of at least six members, none of whom
8 shall be the local empire zone [certification officer] coordinator, and
9 shall be representative of local businesses, organized labor, community
10 organizations, financial institutions, local educational institutions
11 and residents of the empire zone.
12 (f) "Local empire zone [certification officer] coordinator" shall mean
13 the official designated by the applicant who is the commissioner's
14 contact person for the local empire zone that is responsible for coordi-
15 nating all empire zone benefits and administrative functions on behalf
16 of the local empire zone administrative board or administrative entity
17 and who is responsible for jointly certifying and decertifying together
18 with the commissioner and the commissioner of labor those business
19 enterprises eligible to receive benefits pursuant to this article.
20 (k) "Targeted employee" shall mean a New York resident who receives
21 empire zone wages pursuant to subdivision nineteen of section two
22 hundred ten of the tax law and who is (i) an eligible individual under
23 the provision of the targeted jobs tax credit (section fifty-one of the
24 internal revenue code), (ii) eligible for benefits under the provisions
25 of the [job training partnership act (P.L. 97-300, as amended)] work-
26 force investment act (P.L. 105-220) as a dislocated worker or low income
27 individual, (iii) a recipient of public assistance benefits, or (iv) an
28 individual whose income is below the most recently established poverty
29 rate promulgated by the United States department of commerce, or a
30 member of a family whose family income is below the most recently estab-
31 lished poverty rate promulgated by the appropriate federal agency.
32 An individual who satisfies the criteria set forth in clause (i), (ii)
33 or (iv) of this subdivision at the time of initial employment in the job
34 with respect to which the credit is claimed, or who satisfies the crite-
35 rion set forth in clause (iii) of this subdivision at such time or at
36 any time within the previous two years, shall be a targeted employee so
37 long as such individual continues to receive empire zone wages.
38 (m) "Zone administrative entity" shall mean a community-based local
39 development corporation or entity contracting with the local empire zone
40 board pursuant to paragraph [(viii)] (xii) of subdivision (b) of section
41 nine hundred sixty-three of this article or the municipality in which
42 the zone is located in those instances where the municipality actively
43 participates in the local administration of the zone program.
44 [(p) "Zone equivalent area" shall mean an area designated as such
45 pursuant to subdivision (bb) of section nine hundred fifty-nine of this
46 article.
47 (q) "New empire zone" shall mean an empire zone that has been desig-
48 nated pursuant to paragraphs (vii) and (viii) of subdivision (b) of
49 section nine hundred sixty of this article.
50 (r) "Existing empire zone" shall mean an empire zone that has been
51 designated pursuant to paragraphs (i), (ii), (iii), (iv), (v), and (vi)
52 of subdivision (b) of section nine hundred sixty of this article.]
53 (p) "Superboundary" shall mean a four square mile area within which an
54 empire zone designated under subdivision (a) or (d) of section nine
55 hundred fifty-eight of this article must be located. Such superboundary
56 shall be characterized by pervasive poverty, high unemployment and
S. 6060 62 A. 9560
1 general economic distress, must correspond to traditional neighborhood
2 or community boundaries, and where appropriate, be bounded by major
3 natural or man-made physical boundaries, such as bodies of water, rail-
4 road lines, or limited access highways and may be one contiguous area or
5 up to three non-contiguous areas.
6 (q) "Neighborhood revitalization empire zone" shall mean an empire
7 zone designated pursuant to subdivision (a) or (d) of section nine
8 hundred fifty-eight of this article.
9 (r) "Countywide development empire zone" shall mean an empire zone
10 designated pursuant to subdivision (b) or (c) of section nine hundred
11 fifty-eight of this article.
12 (s) "Flex acreage empire zone" shall mean an empire zone area desig-
13 nated pursuant to subdivision (f) of section nine hundred fifty-eight of
14 this article which will attract large projects involving job creation of
15 at least three hundred new jobs in the state, provided, however, such
16 area may not be designated within the metropolitan transportation
17 authority district; or projects involving job creation of at least one
18 hundred new jobs provided such area is located within a census tract
19 meeting the criteria of subdivision (a) of section nine hundred fifty-
20 eight of this article.
21 (t) "Targeted area" shall mean a four square mile area or a two square
22 mile area for local empire zones designated as a one square mile empire
23 zone within which an empire zone designated under paragraph (ii) of
24 subdivision (b) or paragraph (viii) of subdivision (c) of section nine
25 hundred fifty-eight of this article must be located. Such area shall be
26 characterized by poverty, unemployment and general economic distress
27 relative to such county, must correspond to traditional neighborhood or
28 community boundaries, and where appropriate, be bounded by major natural
29 or man-made physical boundaries, such as bodies of water, railroad
30 lines, or limited access highways and may be one contiguous area or up
31 to six non-contiguous areas.
32 (u) "Applicant municipality" means the county, city, town, or village
33 that applied for and received empire zone designation as authorized by
34 section nine hundred sixty of this article.
35 (v) "Concurring municipality" means a city, town or village that is
36 required to agree with the applicant municipality's proposed addition or
37 removal of empire zone acreage from within such city, town or village's
38 municipal borders.
39 § 3. Section 958 of the general municipal law, as added by chapter 686
40 of the laws of 1986, paragraph (i) of subdivision (a) and subdivision
41 (b) as amended by chapter 624 of the laws of 1990, paragraphs (ii) and
42 (vi) of subdivision (a) and subdivision (c) as amended by chapter 708 of
43 the laws of 1993, paragraph (iii) of subdivision (a) as amended by
44 section 2 of part Q of chapter 84 of the laws of 2002, subdivision (d)
45 as amended by chapter 41 of the laws of 2000, and subdivision (e) as
46 relettered by chapter 492 of the laws of 1999, and such section as
47 further amended by section 15 of part GG of chapter 63 of the laws of
48 2000, is amended to read as follows:
49 § 958. Criteria for empire zone designation. (a) To be eligible for
50 designation as [an] a neighborhood revitalization empire zone, [an] the
51 proposed empire zone area must be [characterized by pervasive poverty,
52 high unemployment and general economic distress, must correspond to
53 traditional neighborhood or community boundaries, and where appropriate,
54 be bounded by major natural or man-made physical boundaries, such as
55 bodies of water, railroad lines, or limited access highways; and]
S. 6060 63 A. 9560
1 located within a superboundary and such superboundary must be located in
2 an area that must meet the following requirements:
3 (i) the area shall include a United States census tract or tracts [or
4 block numbering area or areas, or portions thereof, each full census
5 tract or portion of a block numbering area of] which, according to the
6 most recent census data available, has:
7 (A) a poverty rate of at least twenty percent for the year to which
8 the data relate;
9 (B) an unemployment rate of at least 1.25 times the statewide unem-
10 ployment rate for the year to which the data relate; and
11 (C) a population of at least two thousand.
12 (ii) [lands nearby or contiguous to census tracts or block numbering
13 areas described in paragraph (i) of this subdivision may be eligible to
14 be included within an empire zone if, upon the request of the applicant,
15 the commissioner finds, in accordance with regulations promulgated
16 pursuant to this article, that such additional lands have significant
17 potential for business development and job creation, which will enhance
18 economic revitalization of the zone and benefit zone residents;
19 provided, however, that lands nearby shall not be included in a zone
20 until the commissioner, in consultation with the director of the budget,
21 promulgates regulations governing the inclusion of such lands;] portions
22 of superboundaries may also be located in census tracts contiguous to
23 census tracts described in paragraph (i) of this subdivision;
24 (iii) [the area proposed as an empire zone shall not exceed:
25 two square miles for any zone, such area shall be defined by one or
26 more borders, which borders shall be determined by the applicant and
27 need not be entirely coterminous with the borders of census tracts or
28 block numbering areas provided, however, that such zone shall be located
29 entirely within traditional neighborhood or community boundaries, and
30 where appropriate, be bounded by major natural or man-made physical
31 boundaries, such as bodies of water, railroad lines, or limited access
32 highways, provided, however, that not less than seventy-five percent of
33 the area proposed as an empire zone created pursuant to paragraphs (vii)
34 and (viii) of subdivision (b) of section nine hundred sixty of this
35 article shall be located in not more than three non-contiguous areas,
36 and the zones created pursuant to paragraph (viii) of subdivision (b) of
37 section nine hundred sixty of this article should be limited to one
38 square mile;
39 (iv)] if [such] the superboundary area is governed by zoning laws or
40 other laws or regulations governing land use, such laws or regulations
41 must allow at least twenty-five percent of such area to be used for
42 commercial or industrial activity;
43 [(v)] (iv) at least twenty-five percent of the total land within
44 [such] the superboundary area must be vacant, abandoned or otherwise
45 available for industrial or commercial development or redevelopment; and
46 [(vi)] (v) such other requirements as may be established in regu-
47 lations promulgated by the commissioner with the approval of the direc-
48 tor of the budget and after consultation with the commissioner of labor,
49 including but not limited to:
50 (A) a comprehensive demonstration of chronic and severe economic
51 distress and the reasons therefor as evidenced by population and employ-
52 ment decline, increase in unemployment and public assistance recipients,
53 decline in real property values, relative decline in per capita income,
54 the extent of abandoned property and deteriorated industrial, commercial
55 and residential properties, a decline in the number of business estab-
56 lishments, obsolescence in plant capacity, loss of markets to foreign
S. 6060 64 A. 9560
1 competition, the unavailability of expansion financing, poor access to
2 markets, the retirement of local owners of companies;
3 (B) a demonstration of the potential of the area to attract private
4 investment that will provide employment to persons in the area who are
5 unemployed or economically disadvantaged;
6 (C) a demonstration of substantial public and private commitments to a
7 long-term economic revitalization program for the area and the local
8 capacity to manage such a program;
9 (D) a demonstration of the manner in which the superboundary area is
10 consistent with the empire zone development plan and a demonstration of
11 the manner in which the overall [economic] empire zone development plan
12 enunciates the needs of the area and sets forth proposals to solve them;
13 and
14 (E) a demonstration of the manner in which progress in implementing
15 the zone development plan will be routinely evaluated on the local level
16 and how information essential for periodic evaluations will be compiled.
17 Such regulations may require a demonstration of a decline in popu-
18 lation, a decline in employment, an increase in unemployment, a decline
19 in real property values, a relative decline in per capita income, the
20 extent of abandoned property and deteriorated industrial, commercial and
21 residential property, a decline in the number of business establish-
22 ments, and other indicators of severe economic distress.
23 (vi) the area proposed as an empire zone under this subdivision shall
24 not exceed two square miles that shall be defined by a legal description
25 that may describe all or a portion of a tax parcel or tax parcels.
26 (b) Notwithstanding the provisions of [paragraph (i) of] subdivision
27 (a) of this section, any county in which the average rate of unemploy-
28 ment in the two most recent calendar years was at least one and one-
29 quarter times the state average for those years and in which the rate of
30 poverty for individuals was at least thirteen percent according to the
31 most recent census data available, and which does not contain a census
32 tract or tracts, [portion of a block numbering area or a city, town or
33 village] which meets the criteria specified in such paragraph (i) of
34 subdivision (a), may apply for designation of an area within a munici-
35 pality as an empire zone. The area proposed for designation shall [be
36 characterized by pervasive poverty, high unemployment and general
37 economic distress.] meet the following requirements:
38 (i) the area proposed as an empire zone under this subdivision shall
39 not exceed two square miles that shall be defined by a legal description
40 that may describe all or a portion of a tax parcel or tax parcels;
41 (ii) at least sixty percent of the total empire zone area shall be
42 located within census tracts that have rates of unemployment and poverty
43 which exceed the countywide unemployment and poverty rates or for coun-
44 ties with a population of under one hundred thousand census tracts that
45 have rates of unemployment or poverty which exceed the countywide unem-
46 ployment or poverty rates according to the most recent census data
47 available, provided, however, such empire zone area shall be located in
48 no more than six targeted areas; and
49 (iii) up to forty percent of the total empire zone area may be placed
50 in a location other than as described in paragraph (ii) of this subdivi-
51 sion; provided, however, such designation is to accommodate the
52 attraction or expansion of a significant project within the county.
53 (c) Notwithstanding the provisions of [paragraph (i) of subdivision]
54 subdivisions (a) and (b) of this section, any county may apply for
55 designation of an area within a municipality as an empire zone provided
56 that the following requirements are met:
S. 6060 65 A. 9560
1 (i) at the time of application, the unemployment rate of the metropol-
2 itan statistical area must exceed the national average of unemployment
3 and the metropolitan statistical area must have experienced or is likely
4 to experience within three years the lesser of a loss of four thousand
5 direct jobs or a dislocation of workers equal to one-half percent of the
6 employed population of the metropolitan statistical area and at least
7 fifty percent of the job loss or dislocation of workers must result from
8 the action of a single employer, or eighty percent of such job loss or
9 dislocation must occur in a single standard industry classification (two
10 digit code); or
11 (ii) at the time of application, the unemployment rate of the metro-
12 politan statistical area must be equal to or less than the national
13 average of unemployment and the metropolitan statistical area must have
14 experienced or is likely to experience within three years the lesser of
15 a loss of eight thousand direct jobs or a dislocation of workers equal
16 to one percent of the employed population of the metropolitan statis-
17 tical area and at least fifty percent of the job loss or dislocation of
18 workers must result from the action of a single employer, or eighty
19 percent of such job loss or dislocation must occur in a single standard
20 industry classification (two digit code); or
21 (iii) at the time of application, the unemployment rate of the labor
22 market area must exceed the national average of unemployment and the
23 labor market area must have experienced or is likely to experience with-
24 in three years the lesser of a loss of five hundred direct jobs or a
25 dislocation of workers equal to two percent of the employed population
26 of the labor market area; or
27 (iv) at the time of application, the unemployment rate of the labor
28 market area must be equal to or less than the national average of unem-
29 ployment and the labor market area must have experienced or is likely to
30 experience within three years the lesser of a loss of one thousand
31 direct jobs or a dislocation of workers equal to four percent of the
32 employed population of the labor market area; or
33 (v) at the time of application, the municipality is declared a natural
34 disaster area by the president of the United States; or
35 (vi) at the time of application, the municipality contains:
36 (A) a defense or military base or facility which has been designated
37 for closure or realignment; or
38 (B) a state-operated hospital or facility listed in sections 7.17 or
39 13.17 of the mental hygiene law which has been designated by either the
40 commissioner of mental health or the commissioner of mental retardation
41 and developmental disabilities for contraction or discontinuance[.
42 Provided however, that not more than one-third of the zones designated
43 pursuant to paragraph (iii) or (iv) of subdivision (b) of section nine
44 hundred sixty, shall be based on applications filed pursuant to para-
45 graph (vi) of this subdivision.]; and
46 (vii) the area proposed as an empire zone under this subdivision shall
47 not exceed two square miles or one square mile for local empire zones
48 designated as such that shall be defined by a legal description that may
49 describe all or a portion of a tax parcel or tax parcels; and
50 (viii) at least sixty percent of the total empire zone area shall be
51 located within census tracts that have rates of unemployment and poverty
52 which exceed the countywide unemployment and poverty rates, or for coun-
53 ties with a population of under one hundred thousand census tracts that
54 have rates of unemployment or poverty which exceed the countywide unem-
55 ployment or poverty rates according to the most recent census data
S. 6060 66 A. 9560
1 available, provided, however, such empire zone area shall be located in
2 no more than six targeted areas; and
3 (ix) up to forty percent of the empire zone area may be placed in a
4 location other than as described in paragraph (viii) of this subdivi-
5 sion; provided, however, such designation is to accommodate the
6 attraction or expansion of a significant project within the county.
7 (d) Notwithstanding the provisions of [paragraph (i) of subdivision]
8 subdivisions (a), (b) and (c) of this section, any municipality may
9 apply for designation as [an] a neighborhood revitalization empire zone
10 [for an area which shall include a United States census tract or tracts
11 or block numbering area or areas or portions thereof, each full census
12 tract or portion of a block numbering area of which according to the
13 most recent census data available has:]. To be eligible for designation
14 as a neighborhood revitalization empire zone, the proposed empire zone
15 area must be located within a superboundary and such superboundary must
16 be located in an area that must meet the following requirements:
17 (i) at the time of application, an unemployment rate equal to or
18 exceeding the unemployment rate of the state of New York;
19 (ii) [a rate of poverty for individuals of at least twenty percent;
20 (iii) a number of households receiving public assistance of fourteen
21 percent or more;
22 (iv) the municipality is considered a non-metropolitan area; and
23 (v) there is no other empire zone in the county in which designation
24 is sought.] portions of superboundaries may also be located in census
25 tracts contiguous to census tracts described in paragraph (i) of this
26 subdivision;
27 (iii) if the superboundary area is governed by zoning laws or other
28 laws or regulations governing land use, such laws or regulations must
29 allow at least twenty-five percent of such area to be used for commer-
30 cial or industrial activity;
31 (iv) at least twenty-five percent of the total land within the super-
32 boundary area must be vacant, abandoned or otherwise available for
33 industrial or commercial development or redevelopment; and
34 (v) such other requirements as may be established in regulations
35 promulgated by the commissioner with the approval of the director of the
36 budget and after consultation with the commissioner of labor, including
37 but not limited to:
38 (A) a comprehensive demonstration of chronic and severe economic
39 distress and the reasons therefor as evidenced by population and employ-
40 ment decline, increase in unemployment and public assistance recipients,
41 decline in real property values, relative decline in per capita income,
42 the extent of abandoned property and deteriorated industrial, commercial
43 and residential properties, a decline in the number of business estab-
44 lishments, obsolescence in plant capacity, loss of markets to foreign
45 competition, the unavailability of expansion financing, poor access to
46 markets, the retirement of local owners of companies;
47 (B) a demonstration of the potential of the area to attract private
48 investment that will provide employment to persons in the area who are
49 unemployed or economically disadvantaged;
50 (C) a demonstration of substantial public and private commitments to a
51 long-term economic revitalization program for the area and the local
52 capacity to manage such a program;
53 (D) a demonstration of the manner in which the superboundary area is
54 consistent with the empire zone development plan and a demonstration of
55 the manner in which the overall empire zone development plan enunciates
56 the needs of the area and sets forth proposals to solve them; and
S. 6060 67 A. 9560
1 (E) a demonstration of the manner in which progress in implementing
2 the empire zone development plan will be routinely evaluated on the
3 local level and how information essential for periodic evaluations will
4 be compiled. Such regulations may require a demonstration of a decline
5 in population, a decline in employment, an increase in unemployment, a
6 decline in real property values, a relative decline in per capita
7 income, the extent of abandoned property and deteriorated industrial,
8 commercial and residential property, a decline in the number of business
9 establishments, and other indicators of severe economic distress.
10 (vi) the area proposed as an empire zone under this subdivision shall
11 not exceed two square miles that shall be defined by a legal description
12 that may describe all or a portion of a tax parcel or tax parcels.
13 (e) The empire zones designation board may accept from an applicant
14 seeking designation any data in lieu of census data supporting such
15 application as the commissioner deems to be reliable.
16 (f) Notwithstanding the provisions of subdivisions (a) through (d) of
17 this section, the commissioner may designate each year areas of up to
18 one non-contiguous mile in total which will attract large projects
19 involving job creation of at least three hundred new jobs in the state,
20 provided, however, such area may not be designated within the metropol-
21 itan transportation authority district; or projects involving job
22 creation of at least one hundred new jobs provided such area is located
23 within a census tract meeting the criteria of subdivision (a) of this
24 section. Unused acreage may be carried forward for use by the commis-
25 sioner in subsequent calendar years.
26 § 4. Section 959 of the general municipal law, as added by chapter 686
27 of the laws of 1986, subdivision (a) as amended and subdivisions (aa)
28 and (bb) as added by chapter 170 of the laws of 1994, subdivision (e) as
29 amended by chapter 385 of the laws of 1994, subdivisions (f), (h), and
30 (j) as amended and subdivisions (l), (m), (n), (o), (q), (r), (s), (t),
31 (u), (v), (w), (x), (y) and (z) as added by chapter 708 of the laws of
32 1993, subdivision (i) as amended by chapter 624 of the laws of 1990,
33 subdivision (p) as amended by chapter 301 of the laws of 1996, and such
34 section as further amended by section 15 of part GG of chapter 63 of the
35 laws of 2000, is amended to read as follows:
36 § 959. Responsibilities of the commissioner. The commissioner shall:
37 (a) After consultation with the director of the budget, the commis-
38 sioner of labor, and the commissioner of taxation and finance, promul-
39 gate regulations governing (i) criteria of eligibility for empire zone
40 designation, provided, however, that such criteria be approved by the
41 director of the budget; (ii) the application process; (iii) the joint
42 certification by the commissioner, the commissioner of labor, and, in
43 the case of an empire zone, the local empire zone [certification offi-
44 cer] coordinator, as to the eligibility of business enterprises for
45 benefits referred to in section nine hundred sixty-six of this article,
46 provided, however, that a business enterprise that has shifted its oper-
47 ations, or some portions thereof, from an area within New York state not
48 designated as an empire zone [or zone equivalent area] to an area so
49 designated shall not be certified to receive such benefits except where
50 such shift is entirely within a municipality and has been approved by
51 the local governing body of such municipality or in situations where it
52 has been established, after a public hearing, that extraordinary circum-
53 stances exist which warrant the relocation of a business, in whole or
54 part, into an empire zone or a zone equivalent area from another munici-
55 pality and the municipality from which the business is relocating
56 approves of such relocation; or where such shift in operations is from a
S. 6060 68 A. 9560
1 business incubator facility operated by a municipality or by a public or
2 private not-for-profit entity which provides space and business support
3 services to newly established firms; and (iv) the joint decertification
4 by the commissioner, the commissioner of labor, and, in the case of an
5 empire zone, the local empire zone [certification officer] coordinator
6 so as to revoke the certification of business enterprises for benefits
7 referred to in section nine hundred sixty-six of this article with
8 respect to an empire zone [or zone equivalent area] upon a finding that
9 (1) the business enterprise made material misrepresentations of fact on
10 its application for certification, or the business enterprise failed to
11 disclose facts in its application for certification that would consti-
12 tute grounds for not issuing a certification; (2) the business enter-
13 prise has failed to construct, expand, rehabilitate or operate its
14 facility substantially in accordance with the representations contained
15 in its application for certification; (3) the business enterprise has
16 failed to create new employment or prevent a loss of employment in the
17 empire zone [or zone equivalent area] provided, however, that such fail-
18 ure was not due to economic circumstances or conditions which such busi-
19 ness could not anticipate or which were beyond its control; (4) where
20 applicable, the business enterprise has failed to submit an annual
21 report after it has applied for zone incentives or program assistance
22 based on new hires or investments or failed to submit other information
23 to the local empire zone [certification officer] coordinator when due;
24 or (5) the business enterprise has committed substantial violations of
25 laws for the protection of workers including all federal, state and
26 local labor laws, rules or regulations; said regulations shall provide
27 that whenever any business enterprise is decertified with respect to an
28 empire zone [or zone equivalent area]: (A) the date determined to be
29 the earliest event constituting grounds for revoking certification
30 [shall] may be the effective date of decertification; (B) its certified
31 single enterprise, if any, may also be decertified; and (C) the commis-
32 sioner shall notify the commissioner of taxation and finance that such
33 decertification has occurred, and such notification should include the
34 effective date of such decertification and the zone [or zone equivalent
35 area] to which such decertification applies;
36 (b) Receive and review applications for designation of areas as empire
37 zones;
38 (c) Make recommendations to the empire zones designation board for
39 designation of areas as empire zones, provided, however, that all such
40 areas recommended by the commissioner shall meet the requirements of
41 this article;
42 (d) Review new applications to replace any previously designated
43 empire zone the designation of which has been terminated or withdrawn;
44 (e) File notice of the designation or redesignation of an empire zone
45 or of the revision or termination of such designation with the appli-
46 cant, the department of taxation and finance, the secretary of state,
47 with the county, city, town or village clerk of each county, city, town,
48 or village, respectively, in which the empire zone is located, with the
49 school district governing body in which the empire zone is located, with
50 the state board of real property services and with other state and local
51 entities; provided, however, that such notice shall specify the date
52 such action was taken and shall contain a description sufficient to
53 identify the empire zone, including the names of the abutting streets,
54 roads, highways, bodies of water, or other identifying physical
55 features;
S. 6060 69 A. 9560
1 (f) [Request, and shall receive from any department, division, board,
2 bureau, commission, agency or public authority of the state such assist-
3 ance as may be necessary to establish a procedure whereby applications
4 submitted by business entities, community-based organizations, not-for-
5 profit organizations, human service agencies, labor unions and municipal
6 agencies located within an empire zone requesting financial and other
7 assistance provided by state programs, including, but not limited to,
8 capital development, human resource development, business assistance,
9 job training and job placement shall, consistent with federal law, be
10 given priority over applications submitted by entities not located in
11 empire zones;] In consultation with the director of the budget, the
12 commissioner of labor and the commissioner of taxation and finance,
13 establish performance measures for determining the economic and revital-
14 ization impacts of the empire zones program. Establish reporting
15 requirements to evaluate local zone performance in relation to the
16 performance measures and review zone performance with zone boards and
17 zone administrative entities as part of the annual administrative
18 contract process;
19 (g) [Establish a priority for the allocation of authority to issue
20 private activity bonds for the benefit of municipalities and business
21 enterprises located or to be located within empire zones;] Request, and
22 shall receive from any state agency or authority such assistance as may
23 be necessary or desirable to assist local empire zone administrative
24 boards with economic and revitalization efforts in the empire zone;
25 (h) [Coordinate, with the local empire zone administrative board and
26 state agencies and authorities, the provision of business development
27 programs and services for each empire zone in order to stimulate the
28 creation and development of new small businesses, including new small
29 minority-owned and women-owned business enterprises, and may request and
30 shall receive from any department, division, board, bureau, commission,
31 agency or public authority of the state such assistance as may be neces-
32 sary;] Receive and review a plan submitted by the local empire zone
33 administrative board demonstrating the commitment of local resources
34 addressing workforce training and human resource development in order to
35 match the needs of zone businesses with the residents of the zone commu-
36 nity, increased participation of minority and women-owned businesses
37 within the zones program, technical assistance for small businesses and
38 entrepreneurs located within the zone, increased child care availability
39 within the zone community, and increased access to affordable housing
40 for residents within the zone community.
41 (i) [Coordinate with the comptroller and the commissioner of taxation
42 and finance a linked deposit program. The comptroller and the commis-
43 sioner of taxation and finance are hereby authorized and empowered to
44 enter into agreements with financial institutions located in or serving
45 the empire zones, to provide for the deposit of funds administered
46 jointly by them in such institutions, at reduced rates of return to the
47 state, in return for commitments by such institutions to businesses of
48 loans of comparable amounts, at reduced interest rates, for business
49 development projects in the zones that will create or preserve jobs.]
50 Prepare in conjunction with the department of taxation and finance an
51 annual report to include, but not be limited to, the following informa-
52 tion, derived from the most recent data to the extent that it is avail-
53 able, and in a manner consistent with the secrecy requirements of the
54 tax law:
S. 6060 70 A. 9560
1 (i) the number of taxpayers claiming each of the tax credits set forth
2 in section nine hundred sixty-six of this article in the state and in
3 each empire zone; and
4 (ii) the total dollar value of each of the tax credits set forth in
5 section nine hundred sixty-six of this article in the state and in each
6 empire zone.
7 (j) [Assist each local empire zone board in preparing a small business
8 assistance plan as required by section nine hundred sixty-three of this
9 article and coordinate with the local empire zone administrative board
10 and state agencies and authorities the development of small business
11 procurement, export and marketing programs for businesses within the
12 empire zones] Prepare, or cause to be prepared, an annual report and
13 submit copies to the department of audit and control, department of
14 taxation and finance, the temporary president of the senate, and the
15 speaker of the assembly on or before the thirty-first day of December
16 next succeeding the year to which the report pertains, regarding empire
17 zone activities, including information which would allow for substantive
18 review of the zone's strategies and progress of the zone in meeting its
19 short-term objectives, and an analysis of the extent to which the long-
20 term goals set forth in the empire zone application have been met. The
21 zone administrative entities and other local officials and agencies
22 shall fully cooperate with the commissioner in the annual performance
23 review and in the board's performance of its other duties. Local offi-
24 cials, state agencies, and certified businesses shall provide informa-
25 tion requested by the commissioner which is necessary for such review.
26 Such report shall also include a current description of the specific
27 strategies and priorities for economic revitalization of the zone,
28 including, but not limited to: the number of jobs created; the number of
29 jobs retained; the amount of private capital leveraged with public
30 funds; the number of businesses expanded or retained and new businesses
31 created, and the type of businesses expanded, retained or created, as
32 well as consideration of the improvements in the physical infrastructure
33 of the zone. The commissioner shall promulgate rules and regulations to
34 set forth standards to be used to measure performance against objectives
35 on an annual basis in order to facilitate the requirements of this
36 subdivision.
37 [(k) Review a plan submitted no later than December thirty-first,
38 nineteen hundred eighty-seven, by the urban development corporation and
39 the job development authority, for extending to minority or women-owned
40 contracting companies which are endeavoring to secure work on projects
41 in the zones, surety guarantees assistance and such other assistance as
42 may be required by such firms which currently is unavailable from other
43 sources.] (k) Secure, from an entity independent of the department of
44 economic development, a comprehensive evaluation of the performance of
45 the zones program and of individual zones with respect to accomplishment
46 of the objectives of the zones program and of local empire zone develop-
47 ment plans. Such evaluation shall be completed no later than August
48 first, two thousand eight and be submitted by the department of economic
49 development to the governor, temporary president and majority leader of
50 the senate, and the speaker of the assembly.
51 (l) Certify, for the purposes of paragraph three of subdivision (d) of
52 section fifteen of the tax law, a significant investment made within an
53 empire zone as a qualified empire zone investment pursuant to criteria
54 established in rules and regulations, approved by the director of the
55 budget and promulgated by the commissioner, to include, but not be
56 limited to, the following: investments occurring in a tax year starting
S. 6060 71 A. 9560
1 on or after January first, two thousand five by a qualified empire zone
2 enterprise must be made in a census tract which meets the criteria spec-
3 ified in paragraph (i) of subdivision (a) of section nine hundred
4 fifty-eight of this article or in a targeted area as defined in subdivi-
5 sion (t) of section nine hundred fifty-seven of this article.
6 [(l) Promulgate regulations, in consultation with the commissioner of
7 labor, for program evaluation and coordinate implementation of an evalu-
8 ation system, which is capable of compiling and analyzing accurate and
9 consistent information necessary for an assessment of whether statutory
10 objectives and criteria are being met;
11 (m) Review performance objectives and progress in meeting objectives
12 with zone boards and zone administrative entities as part of the annual
13 administrative contract process;
14 (n) Assist zone boards and zone administrative entities to effect and
15 implement job training and social services agreements and programs
16 provided for in paragraphs (v), (vi) and (vii) of subdivision (b) of
17 section nine hundred sixty-three of this article and request and receive
18 from any agency or authority of the state such assistance as may be
19 necessary to improve the delivery and coordination of human resource
20 development programs to the zones;
21 (o) Assist zones in increasing their child care capacity and in plan-
22 ning special care activities, including the provision of technical
23 assistance by the department in planning for the provision of child care
24 services in the zones;
25 (p) Coordinate with the department of labor, the state education
26 department, the job training partnership council and agencies of the
27 state the inclusion in annual and biennial plans of such entities strat-
28 egies for increasing and improving human resource development services
29 on a priority basis, consistent with federal statutory and regulatory
30 requirements, to residents of the zones and employees of zone busi-
31 nesses, including, but not limited to, the governor's plan for coordi-
32 nation and special services of the job training partnership council, the
33 jobs plan and Wagner-Peyser annual plan for services of the department
34 of labor, and the career education state plan of the state education
35 department;
36 (q) Arrange with the job training partnership council the provision of
37 job training partnership act funds for use within the zones with the
38 cooperation of the service delivery areas in the governor's plan for
39 coordination and special services;
40 (r) Subject to the availability of funds, arrange for the allocation
41 and reservation of funds from the infrastructure improvement programs of
42 state agencies and authorities to assist the zones to make public
43 improvements necessary for community, commercial, industrial and tourism
44 development projects in support of zone revitalization;
45 (s) Systematically enlist other state agencies and authorities to
46 participate in zone programs and projects and in cooperative planning of
47 interagency zone activities in support of zone revitalization efforts;
48 (t) Recommend for economic development loan and grant programs of the
49 department of economic development, urban development corporation, job
50 development authority, and science and technology foundation special
51 terms and conditions for viable zone projects and programs;
52 (u) Award preference to be given to applications submitted by or on
53 behalf of zones for entrepreneurial assistance programs under article
54 nine of the omnibus economic development act of nineteen hundred eight-
55 y-seven to support the creation of new entrepreneurial development and
56 entrepreneurial support centers;
S. 6060 72 A. 9560
1 (v) Review a program plan and guidelines submitted by the division of
2 minority and women's business development of the department of economic
3 development no later than March thirty-first, nineteen hundred ninety-
4 four for expedited review of applications by zone businesses for certif-
5 ication as minority or women-owned businesses;
6 (w) Review a program plan and guidelines submitted no later than March
7 thirty-first, nineteen hundred ninety-four by the job development
8 authority for extending to small businesses within the zones, subject to
9 funds availability, guarantees of performance bonds or bid bonds for
10 construction, service and manufacturing contracts with federal, state
11 and local government agencies and authorities, as well as the private
12 sector;
13 (x) Review a program plan submitted by the department of labor no
14 later than March thirty-first, nineteen hundred ninety-four for the
15 establishment by the department of a community service center, to the
16 extent practicable, in or immediately adjacent to each zone;
17 (y) Coordinate with the urban development corporation the creation of
18 a special category of assistance for zones within the regional economic
19 development partnership program, which will make available economic
20 development assistance grants for zone programs and activities, includ-
21 ing, but not limited to, planning, service coordination, and local
22 institutional capacity building for human resource development necessary
23 for economic revitalization; planning and development of small business
24 incubators; job placement and preparedness programs for zones residents;
25 education and training programs for zone businesses; child care programs
26 and projects supportive of business development; technical assistance
27 for minority and women-owned business development; training for zone
28 officials; business and tourism development and marketing programs; and
29 other innovative programs and activities in support of economic and
30 community development within the zones; and
31 (z) Assist in the development of a plan, in coordination with the
32 health and insurance departments, to assist zones in obtaining afforda-
33 ble employee health insurance for small business enterprises located
34 within the zone.
35 (aa) Jointly certify, pursuant to regulations promulgated pursuant to
36 this article, together with the commissioner of labor, those business
37 enterprises, located in a zone equivalent area, which are eligible to
38 receive the benefits described in subdivision (e) of section nine
39 hundred sixty-six of this article. Such certification shall be consist-
40 ent with the principles set forth in section nine hundred sixty-three of
41 this article with respect to empire zones.
42 (bb) Designate as zone equivalent areas those census tracts and block
43 numbering areas which, as of the nineteen hundred ninety census, satisfy
44 the criteria set forth in subparagraphs (A) and (B) of paragraph (i) of
45 subdivision (a) of section nine hundred fifty-eight of this article.
46 Such designation shall be made, and a list of all such zone equivalent
47 areas shall be promulgated, not later than June thirtieth, nineteen
48 hundred ninety-four.]
49 § 5. Section 960 of the general municipal law, as added by chapter
50 686 of the laws of 1986, subdivisions (b), (c) and (e) as amended by
51 chapter 624 of the laws of 1990, paragraph (iii) of subdivision (b) as
52 amended and paragraph (iv) of subdivision (e) as added by chapter 708 of
53 the laws of 1993, paragraph (iv) of subdivision (b) as amended by chap-
54 ter 704 of the laws of 1996, paragraph (v) of subdivision (b) as amended
55 by chapter 492 of the laws of 1999, paragraph (vi) of subdivision (b) as
56 amended by section 3 of part Q of chapter 84 of the laws of 2002, para-
S. 6060 73 A. 9560
1 graphs (vii) and (viii) of subdivision (b) as added by section 4 of part
2 Q of chapter 84 of the laws of 2002, the opening paragraph of paragraph
3 (iv) of subdivision (e) as amended by chapter 537 of the laws of 1996,
4 and such section as further amended by section 15 of part GG of chapter
5 63 of the laws of 2000, is amended to read as follows:
6 § 960. Designation of empire zones. (a) The empire zones designation
7 board is hereby created. Such board shall consist of the commissioner of
8 taxation and finance, the director of the budget, the commissioner of
9 labor and two members to be appointed by the governor; one member to be
10 appointed by the temporary president of the senate; one member to be
11 appointed by the speaker of the assembly; and two non-voting members,
12 one of whom shall be appointed by the minority leader of the senate and
13 one of whom shall be appointed by the minority leader of the assembly.
14 The governor shall designate from among the voting members the chairman
15 of the board.
16 (b) The empire zones designation board shall designate empire zones
17 under subdivisions (a), (b), (c) and (d) of section nine hundred fifty-
18 eight of this article from the recommendations made by the commission-
19 er[:
20 (i) Within eighteen months after the effective date of this article,
21 not more than ten empire zones;
22 (ii) In the period commencing eighteen months and ending three years
23 after the effective date of this article, not more than nine additional
24 empire zones until a maximum of nineteen empire zones have been estab-
25 lished statewide;
26 (iii) In the period commencing three years and ending eight years
27 after the effective date of this article, not more than fifteen addi-
28 tional empire zones;
29 (iv) In the period commencing five years and ending nine years and six
30 months after the effective date of this article, not more than six addi-
31 tional empire zones;
32 (v) In the period commencing nine years and six months after the
33 effective date of this article, not more than twelve additional empire
34 zones each which shall contain a defense or military base or facility
35 which has been designated for closure or realignment or a site currently
36 or formerly owned or operated by either the (1) United States military
37 or (2) a defense contractor whose employment in New York state was
38 adversely affected by a reduction in military spending;
39 (vi) In the period commencing thirteen years after the effective date
40 of this article, not more than fourteen additional empire zones, not
41 less than three of which shall be designated pursuant to the criteria
42 set forth in subdivision (d) of section nine hundred fifty-eight of this
43 article;
44 (vii) In the period commencing fifteen years after the effective date
45 of this article, not more than four additional empire zones, all of
46 which shall be designated pursuant to the criteria set forth in subdivi-
47 sions (a), (b), (c) and (d) of section nine hundred fifty-eight of this
48 article;
49 (viii) In the period commencing fifteen years after the effective date
50 of this article, not more than two additional empire zones, all of which
51 shall be designated pursuant to the criteria set forth in subdivisions
52 (a), (b), (c) and (d) of section nine hundred fifty-eight of this arti-
53 cle] upon legislative authorization.
54 (b-1) The commissioner may designate empire zones under subdivision
55 (f) of section nine hundred fifty-eight of this article in consultation
S. 6060 74 A. 9560
1 with the director of the budget, the commissioner of labor, and local
2 officials.
3 (c) In reviewing applications for designation of an area as an empire
4 zone, the board shall consider the level of local participation includ-
5 ing, but not limited to, local tax incentives and the provision of local
6 services.
7 (d) Notwithstanding any other provision of this article, such zones
8 designated, shall be, as far as practicable, equally distributed between
9 urban, suburban and rural areas.
10 [(e) (i) The department of audit and control, the department of taxa-
11 tion and finance, the department of economic development, and the legis-
12 lative commission on expenditure review shall prepare reports on the
13 management and the economic and fiscal impact of empire zones. The anal-
14 ysis of the fiscal and economic impact of the empire zones shall
15 include, but not be limited to, a review of the cost of providing the
16 tax benefits referred to in section nine hundred sixty-six of this chap-
17 ter and the amount of real property tax increments segregated for
18 infrastructure improvements as authorized by section nine hundred
19 sixty-seven of this chapter. Such reports shall be transmitted to the
20 governor, the legislature and the commission by September first, nine-
21 teen hundred ninety.
22 (ii) A commission, whose maximum duration shall be six months, shall
23 be created to evaluate and recommend whether the program should continue
24 in operation, or whether it should be changed in some manner, or whether
25 the powers of the empire zone designation board to designate zones
26 should be discontinued. The commission shall be composed of seven
27 members, with the chairperson and four other members appointed by the
28 governor, one member appointed by the temporary president of the senate
29 and one member appointed by the speaker of the assembly.
30 (iii) The commission shall report its findings by March first, nine-
31 teen hundred ninety-one, to the governor and the legislature with recom-
32 mendations of changes necessary. Notwithstanding any other provision of
33 law, no further applications for empire zone designation shall be
34 approved by the empire zone designation board created pursuant to this
35 section if the commission report shall have recommended the discontinua-
36 tion of the program.
37 (iv) An entity independent of the department shall conduct and submit
38 to the governor and the legislature by no later than December thirty-
39 first, nineteen hundred ninety-six, a comprehensive evaluation of the
40 performance of the zones program and of individual zones on meeting
41 criteria established pursuant to this section. The criteria by which the
42 empire zones program and individual zones are to be evaluated shall
43 include, but not be limited to, the following:
44 (1) whether quantifiable benefits attributable to the program justify
45 its direct costs to the state and participating localities;
46 (2) whether the program has contributed to the economic revitalization
47 of the zones by stimulating (A) the creation and retention of permanent,
48 full-time, quality private sector jobs; (B) the creation, location and
49 expansion of businesses in the zones; (C) capital and human resource
50 investments by zone businesses and new business development; and (D)
51 public and private investments in zone businesses and economic and
52 community development activities important for economic revitalization;
53 (3) whether the program has created employment and business develop-
54 ment opportunities for residents of the zones and job training opportu-
55 nities for residents and employees of zone businesses;
S. 6060 75 A. 9560
1 (4) whether the program has (A) resulted in new and improved local
2 administrative capacity within the zones to plan for and capture econom-
3 ic opportunities and deliver and coordinate economic, community and
4 human resource development services, and (B) increased commitments of
5 local resources to zone revitalization, including support from the busi-
6 ness community;
7 (5) whether the program has stimulated assistance from state, federal
8 and other economic, community and human resource development programs
9 relative to other areas and improved the delivery and coordination of
10 state services to the zones; and
11 (6) whether the program is being managed and evaluated effectively at
12 state and local levels.]
13 § 6. Paragraph (i) of subdivision (a) and paragraph (vi) of subdivi-
14 sion (b) of section 961 of the general municipal law, paragraph (i) of
15 subdivision (a) as added by chapter 686 of the laws of 1986, paragraph
16 (vi) of subdivision (b) as amended by chapter 624 of the laws of 1990,
17 and paragraph (i) of subdivision (a) as amended and paragraph (vi) of
18 subdivision (b) as further amended by section 15 of part GG of chapter
19 63 of the laws of 2000, are amended to read as follows:
20 (i) a city, town or village shall not be authorized and empowered to
21 apply for designation of an area as an empire zone which is located
22 wholly or partly within [a village] another municipality unless such
23 action is concurred in by the governing body of such [village] munici-
24 pality, and that a county shall not be authorized and empowered to apply
25 for designation of an area as an empire zone unless such action is
26 concurred in by the governing body of each city, town or village in
27 which such zone is located; and
28 (vi) include a statement from the private industry council governing
29 board of the service delivery area established under the [job training
30 partnership act (P.L. 97-300, as amended)] workforce investment act
31 (P.L. 105-220) as a dislocated worker or low-income individual that
32 encompasses the proposed empire zone setting forth the assistance to be
33 provided and the resources to be allocated for the training of residents
34 in the area and the operation of job training programs;
35 § 7. Section 962 of the general municipal law is REPEALED and a new
36 section 962 is added to read as follows:
37 § 962. Empire zone development plan. By December thirty-first, two
38 thousand four, and every three years thereafter, in a form and manner
39 prescribed by the commissioner, each local empire zone administrative
40 board shall prepare and file a zone development plan with the commis-
41 sioner that demonstrates how the empire zone conforms with the land use,
42 economic development and revitalization plan of the applicant.
43 (a) The zone development plan shall include, but shall not be limited
44 to an identification, where applicable, of the specific geographic areas
45 within the applicant community that will be targeted for development or
46 revitalization as the empire zone, which shall include:
47 (i) an assessment of each area's strengths and weaknesses, including a
48 description of how the empire zone benefits can capitalize on each
49 area's strengths and overcome its weaknesses;
50 (ii) a description of the financial commitments which the applicant is
51 prepared to make to the specific geographic areas, including, but not
52 limited to, specific commitments for infrastructure improvements in
53 those areas and a timetable for their completion;
54 (iii) the types of industries and businesses that will be targeted for
55 location or expansion in each area;
S. 6060 76 A. 9560
1 (iv) a description of the marketing strategy to be employed by the
2 applicant to promote business development in the areas;
3 (v) a detailed explanation of the land use and economic development
4 objectives of the applicant, including the types of industries and busi-
5 nesses that will be targeted, the basis upon which such objectives were
6 established, how the empire zone will contribute to the objectives; and
7 what commitment of resources has been provided to achieve these objec-
8 tives;
9 (vi) a description of how the applicant will coordinate economic
10 development programs and providers at the local level to develop or
11 revitalize the empire zone;
12 (vii) a description of other activities to be undertaken by municipal
13 agencies, business entities, not-for-profit corporations, community-
14 based organizations, or any other persons, within the applicant communi-
15 ty, which are designed to promote private sector business investment and
16 job development in the empire zone;
17 (viii) a description of the human resource development, job training,
18 child care, and transportation services to be made available to resi-
19 dents of the applicant community in need of such services and how such
20 services will be integrated with business development activities in the
21 empire zone; and
22 (ix) a description of the business development programs and services
23 of the applicant to be available to stimulate the creation of new small
24 businesses in the empire zone, including new small minority and women-
25 owned business enterprises.
26 (b) Prior to being submitted to the commissioner for approval, the
27 empire zone development plan shall be subject to a local public hearing
28 to be held at least thirty days prior to approval of the plan by the
29 governing body of the applicant. Each local zone shall annually submit
30 an updated zone development policy to the commissioner by December thir-
31 ty-first of each year. The zone development policy shall include, but
32 shall not be limited to, specific criteria, derived from and consistent
33 with the zone development plan, to be used for determining what the
34 proposed empire zone boundaries will be for the upcoming year, what
35 types of industries and businesses will be targeted, and thresholds for
36 investments and job creation required for placing zone boundaries around
37 specific businesses.
38 § 8. Subdivision (a), paragraphs (i), (ii), (v), (xi) of subdivision
39 (b), the opening paragraph and paragraph (vii) of subdivision (c) and
40 subdivision (d) of section 963 of the general municipal law, subdivision
41 (a) and paragraphs (i), (v) and (xi) of subdivision (b) as amended by
42 chapter 708 of the laws of 1993, paragraph (ii) of subdivision (b) as
43 amended by chapter 537 of the laws of 1996, the opening paragraph and
44 paragraph (vii) of subdivision (c) as added by chapter 442 of the laws
45 of 1987, subdivision (d) as amended by chapter 624 of the laws of 1990,
46 and subdivision (a), paragraphs (ii) and (v) of subdivision (b), the
47 opening paragraph of subdivision (c) and subdivision (d) as further
48 amended by section 15 of part GG of chapter 63 of the laws of 2000, are
49 amended to read as follows:
50 (a) The local empire zone [certification officer] coordinator shall
51 not serve on the local empire zone administrative board and shall,
52 pursuant to regulations promulgated pursuant to this article, jointly
53 certify together with the commissioner and the commissioner of labor,
54 those business enterprises eligible to receive benefits referred to in
55 section nine hundred sixty-six of this article; provided, however, that
56 such certification shall be governed by criteria including, but not
S. 6060 77 A. 9560
1 limited to, (i) whether the business enterprise, if certified, is
2 reasonably likely to create new employment or prevent a loss of employ-
3 ment in the zone, (ii) whether such new employment opportunities will be
4 for individuals who will perform a substantial part of their employment
5 activities in the zone, (iii) whether certification will have the unde-
6 sired effect of causing individuals to transfer from existing employment
7 with another business enterprise to similar employment with the business
8 enterprise so certified, and transferring existing employment from one
9 or more other municipalities, towns or villages in the state, or trans-
10 ferring existing employment from one or more other businesses in the
11 zone, (iv) whether such enterprise is likely to enhance the economic
12 climate of the zone, and (v) whether such business enterprise, during
13 the three years preceding the submission of an application for certif-
14 ication, has engaged in a substantial violation or a pattern of
15 violations of laws regulating unemployment insurance, workers compen-
16 sation, public work, child labor, employment of minorities and women,
17 safety and health, or other laws for the protection of workers as deter-
18 mined by final judgment of a judicial or administrative proceeding; and
19 (vi) whether certification of such business enterprise is consistent
20 with the local empire zone development plan; and provided further,
21 however, that any business enterprise that applies for any tax, utility
22 rate, or management assistance benefits provided by this article shall
23 provide ninety days written notice to the commissioner, the local empire
24 zone [certification officer] coordinator, the local empire zone adminis-
25 trative board and the employees of such business enterprise of any
26 intent to close or partially close a facility within the empire zone.
27 For the purposes of this subdivision, "closing" shall mean the permanent
28 termination of employment at a business facility, and "partial closing"
29 shall mean the permanent termination of a portion of the employment at a
30 business facility that will either immediately reduce the work force by
31 at least fifty employees or will reduce the work force by at least fifty
32 percent over a one-year period.
33 (i) [develop short-term goals for zone activities on an annual basis]
34 submit a plan to the commissioner pursuant to subdivision (h) of section
35 nine hundred fifty-nine of this article;
36 (ii) [prepare, or cause to be prepared, an annual report and submit
37 copies to the department of audit and control, department of taxation
38 and finance, the temporary president of the senate, the speaker of the
39 assembly and department of economic development on or before the first
40 day of July next succeeding the year to which the report pertains,
41 regarding empire zone activities, including information which would
42 allow for substantive review of the zone's strategies and progress of
43 the zone in meeting its short-term objectives, and an analysis of the
44 extent to which the long-term goals set forth in the empire zone appli-
45 cation have been met. The zone administrative entities and other local
46 officials and agencies shall fully cooperate with the zone administra-
47 tive board in the annual performance review and in the board's perform-
48 ance of its other duties. Local officials, state agencies, and certified
49 businesses shall provide information requested by the zone administra-
50 tive board which is necessary for such review. Such report shall also
51 include a current description of the specific strategies and priorities
52 for economic revitalization of the zone, including, but not limited to:
53 the number of jobs created; the number of jobs retained; the amount of
54 private capital leveraged with public funds; the number of businesses
55 expanded or retained and new businesses created, and the type of busi-
56 nesses expanded, retained or created, as well as consideration of the
S. 6060 78 A. 9560
1 improvements in the physical infrastructure of the zone. The commission-
2 er shall promulgate rules and regulations to set forth standards to be
3 used to measure performance against objectives on an annual basis in
4 order to facilitate the requirements of this paragraph] submit a plan to
5 the commissioner pursuant to section nine hundred sixty-two of this
6 article;
7 (v) enter into agreements with the commissioners of economic develop-
8 ment, labor, and social services, local departments of social services,
9 and local education agencies as defined in paragraph (b) of subdivision
10 one of section three thousand thirty-two of the education law, local
11 community-based organizations, private employers, labor unions, the
12 administrative entity and private industry council for the service
13 delivery area established under the [job training partnership act (P.L.
14 97-300, as amended)] workforce investment act (P.L. 105-220) as a dislo-
15 cated worker or low-income individual that includes the empire zone, and
16 any other person or state or federal agency for the purpose of estab-
17 lishing, implementing and coordinating job training programs for workers
18 and businesses to be located in an empire zone; provided, however, that
19 (A) any agreement to establish a job training program designed to meet
20 the specific needs of a private employer shall require such employer to
21 retain in its employ for not less than six months an employee who has
22 satisfactorily completed a course of training for a particular job open-
23 ing unless such employee voluntarily leaves such employment or is
24 discharged for misconduct or other good cause; (B) any job training
25 program established pursuant to this section shall make use of the
26 community service division of the labor department as well as other
27 sources for the purpose of recruitment;
28 (xi) in conjunction with zone administrative entities, develop and
29 implement a system for continuous monitoring and evaluation of zone
30 performance at the local level consistent with the guidelines set forth
31 in [subdivisions (l) through (p) of] section nine hundred fifty-nine of
32 this article;
33 The empire zone administrative board shall cooperate with the commis-
34 sioner in the production of the annual report of the local empire [zone
35 administrative board] zones required by subdivision [(b)] (j) of [this]
36 section nine hundred fifty-nine of this article which shall include,
37 subject to the tax secrecy provisions referred to in subdivision (d) of
38 this section, [include,] but not be limited to, reporting the following
39 information with respect to the year immediately preceding the year
40 which is the subject of the report:
41 (vii) a statement summarizing all amounts received as, and expendi-
42 tures made from, financial support for administrative expenses pursuant
43 to paragraph [(vii)] (xii) of subdivision (b) of this section; and
44 (d) At the request of any local empire zone administrative board, the
45 department of taxation and finance, the department of economic develop-
46 ment, the public service commission and any municipal corporation within
47 the empire zone shall, to the extent that it possesses any of the infor-
48 mation required by subdivision (c) of this section, and to the extent
49 that such information can be disclosed without violating the secrecy
50 provisions contained in sections two hundred two, two hundred eleven,
51 six hundred ninety-seven, one thousand one hundred forty-six, one thou-
52 sand two hundred fifty, one thousand four hundred sixty-seven and one
53 thousand five hundred eighteen of the tax law, provide that information
54 to the local empire zone administrative board for inclusion in [its] the
55 annual report issued by the department of economic development. The
56 amount of any real property taxes required to be set forth in the report
S. 6060 79 A. 9560
1 pursuant to subdivision (c) of this section shall be computed and
2 furnished to the zone's administrative board by the municipality which
3 levied the tax. The failure of any empire zone administrative board to
4 prepare and submit a report or information as required by [subdivision]
5 subdivisions (b) and (c) of this section shall make the board or other
6 community-based development organization ineligible to receive any
7 financial support for administrative expenses authorized by paragraph
8 [(vii)] (xii) of subdivision (b) of this section; provided, however,
9 that such financial assistance shall not be withheld on account of the
10 report's failure to include any information which is required by subdi-
11 vision (c) of this section but is not available to the empire zone
12 administrative board.
13 § 9. Section 964 of the general municipal law, as amended by chapter
14 708 of the laws of 1993, and as further amended by section 15 of part GG
15 of chapter 63 of the laws of 2000, is amended to read as follows:
16 § 964. Empire zone capital [corporations] credits. (a) [No more than
17 three empire zone capital corporations may be established in each zone
18 for the purpose of raising funds through private and public grants,
19 donations or investments, to be used in making investments in, and loans
20 to, business firms certified pursuant to subdivision (a) of section nine
21 hundred sixty-three of this article for the purpose of encouraging the
22 establishment or expansion of businesses and the provision of additional
23 job opportunities within such area. A zone capital corporation may serve
24 one or more zones within an economic development region or zones within
25 two or more regions. Prior to the establishment of a zone capital corpo-
26 ration, the zone board and the commissioner of the department of econom-
27 ic development shall approve the formation of the proposed zone capital
28 corporation, its board of directors and management, and its procedures
29 for making, servicing and monitoring investments. In no event, however,
30 shall an empire zone capital corporation acquire an ownership interest
31 in any certified business firm which amounts to more than twenty-five
32 percent of the ownership interest of such certified business firm. No
33 loan to or investment in any business firm shall be made by an empire
34 zone capital corporation located in a zone within a town with a popu-
35 lation of more than twenty-five thousand, until such corporation has
36 accumulated at least two hundred thousand dollars in capital stock. No
37 loan or investment in any business firm shall be made by an empire zone
38 capital corporation located in a zone within a town with a population of
39 less than twenty-five thousand until such corporation has accumulated at
40 least one hundred thousand dollars in capital stock. A zone capital
41 corporation shall submit to the zone board an annual report on its
42 activities.
43 (b) Each zone capital corporation shall establish an investment
44 committee for the purpose of evaluating applications for loans and equi-
45 ty investments. Each committee shall be comprised of members who possess
46 the requisite business and financial expertise necessary to evaluate
47 applications for loans and/or equity investments.
48 (c) Each empire zone capital corporation shall, to the maximum extent
49 feasible, undertake measures and procedures to ensure meaningful partic-
50 ipation by minority-owned and women-owned business enterprises in the
51 activities and investments of such corporation. Each such corporation
52 shall additionally, to the maximum extent feasible, undertake measures
53 and procedures to ensure meaningful participation by locally owned busi-
54 ness enterprises in the activities and investments of such corporation.
55 (d)] The total amount of tax credits available to each zone pursuant
56 to subdivision twenty of section two hundred ten, subsection (l) of
S. 6060 80 A. 9560
1 section six hundred six, subsection (d) of section fourteen hundred
2 fifty-six and subdivision (h) of section fifteen hundred eleven of the
3 tax law, shall be two million five hundred thousand dollars[, (provided,
4 however, that in no event shall the credits available in any zone exceed
5 five hundred thousand dollars in the case of qualified investments in
6 certified zone businesses as described in such subdivisions and
7 subsections)]. Apportionment of credits within a zone between capital
8 investments in and contributions to zone capital corporations estab-
9 lished prior to July thirty-first, two thousand four, direct investments
10 in certified zone businesses or contributions to community development
11 projects will be determined and accounted for by the local zone adminis-
12 trative board in consultation with the zone administrative entity,
13 subject to regulations promulgated by the commissioner of the department
14 of economic development. Credits not used by a zone within four years of
15 their apportionment may, after a public hearing, be reallocated pursuant
16 to regulations promulgated by the commissioner. Certifications under
17 subdivision twenty of section two hundred ten, subsection (l) of section
18 six hundred six, subsection (d) of section fourteen hundred fifty-six
19 and subdivision (h) of section fifteen hundred eleven of the tax law
20 shall be consistent with the provisions of this subdivision.
21 [(e)] (b) The commissioner shall promulgate regulations governing the
22 criteria of eligibility for the tax credits, referred to in subdivision
23 [(d)] (a) of this section, applicable to direct equity investments in
24 certified zone businesses and to contributions to community development
25 projects provided for in this section. Such regulations shall establish
26 requirements including, but not limited to: (i) a demonstration that the
27 direct equity investment in a certified zone business will contribute,
28 significantly, to an activity having tangible economic benefits, such as
29 start-up, expansion or industrial modernization of such zone business;
30 (ii) a demonstration that the certified zone business has the potential
31 to create jobs; and (iii) a demonstration that the direct equity invest-
32 ment is necessary to increase the amount of capital available to the
33 certified zone business, provided, however, that such investment is not
34 intended nor shall it be used to refinance existing debt or replace
35 existing equity in such zone business.
36 [(f)] (c) In addition to the duties set forth in subdivision (b) of
37 section nine hundred sixty-three of this article, the zone administra-
38 tive board shall, consistent with the regulations promulgated by the
39 commissioner, determine the eligibility of direct equity investments in
40 certified zone businesses and contributions to community development
41 projects for the tax credits, described in subdivision [(d)] (a) of this
42 section, that are available to such zone. Such determination by the zone
43 administrative board shall be subject to review by the commissioner in
44 his or her discretion. The commissioner, upon review of a zone board
45 determination made pursuant to this subdivision, shall accept or reject
46 such determination as may be deemed appropriate.
47 § 10. The opening paragraph and subdivision (e) of section 966 of the
48 general municipal law, as amended by chapter 170 of the laws of 1994,
49 and as further amended by section 15 of part GG of chapter 63 of the
50 laws of 2000, is amended to read as follows:
51 In addition to the benefits provided for in this article, other bene-
52 fits applicable to empire zones are provided elsewhere in the consol-
53 idated laws, and [benefits are provided in the case of zone equivalent
54 areas, as follows:] include the following:
55 (e) For credits against the taxes imposed under articles nine-A, twen-
56 ty-two, thirty-two and thirty-three of the tax law, based on wages paid
S. 6060 81 A. 9560
1 to certain employees employed by a business located in an empire zone
2 [or in a zone equivalent area,] see subdivision nineteen of section two
3 hundred ten, subsection (k) of section six hundred six, subsection (e)
4 of section fourteen hundred fifty-six and subdivision (g) of section
5 fifteen hundred eleven, respectively, of the tax law;
6 § 11. Section 969 of the general municipal law, as amended by chapter
7 606 of the laws of 1988, subdivision (a) as amended by chapter 537 of
8 the laws of 1996, subdivision (b) as amended by chapter 708 of the laws
9 of 1993, the opening paragraph of subdivision (c) as amended by chapter
10 624 of the laws of 1990, paragraph 2 of subdivision (c) as amended by
11 section 5 and paragraphs 6, 7 and 8 of subdivision (c) as added by
12 section 6 of part Q of chapter 84 of the laws of 2002, and such section
13 as further amended by section 15 of part GG of chapter 63 of the laws of
14 2000, is amended to read as follows:
15 § 969. Termination or revision of an empire zone. (a) Except as
16 provided in this section, any designation of an area as an empire zone
17 shall remain in effect during the period beginning on the date of desig-
18 nation and ending July thirty-first, two thousand [four] nine.
19 (b) [After] The commissioner may withhold approval of a joint certif-
20 ication of business enterprises or of empire zone boundary revision
21 requests or, after consultation with the director of the budget and the
22 commissioner of labor, the commissioner may terminate the designation of
23 an area as an empire zone upon a finding that (1) the applicant has
24 failed substantially to implement the empire zone development plan
25 [within the time stated therein]; (2) there has been no substantial
26 business development or job creation within the area designated as an
27 empire zone [within five years after such designation]; (3) there has
28 been inadequate management and evaluation of the zone at the local
29 level; or (4) the applicant has [repeatedly] failed to comply with
30 program reporting and performance requirements, provided, however, that
31 no termination shall occur unless and until written notice has been
32 given to the applicant and a public hearing has been held thirty days
33 prior to the effective date of such termination.
34 (c) The applicant municipalities of empire zones that are in existence
35 on July thirty-first, two thousand four shall submit to the commissioner
36 by November first, two thousand four a request to revise the boundaries
37 of the empire zone that would bring the zone into compliance with
38 section nine hundred fifty-eight of this article. Failure to timely
39 submit a complete request for a boundary revision may result in the
40 withholding of approval for joint certification of business enterprises
41 or the termination of empire zone designation by the commissioner. The
42 commissioner may, after consultation with the commissioner of labor,
43 approve such revision subject to the following provisions:
44 (1) The commissioner shall affirm that such revision would not have
45 the effect of producing an empire zone which does not satisfy the crite-
46 ria for empire zone designation established by or pursuant to section
47 nine hundred fifty-eight of this article;
48 (2) The revision of the borders of an empire zone pursuant to this
49 section shall have no effect on the duration of the designation of such
50 empire zone as provided by subdivision (a) of this section;
51 (3) A development plan satisfactory to the commissioner shall be
52 submitted pursuant to section nine hundred sixty-two of this article;
53 (d) If an empire zone area is terminated as a result of subdivision
54 (c) of this section, a business enterprise that is located in such area
55 that was certified pursuant to this article or has an application pend-
56 ing with the department of economic development prior to the effective
S. 6060 82 A. 9560
1 date of this subdivision shall be deemed to continue to be certified
2 under this article for purposes of sections fourteen, fifteen and
3 sixteen, subdivisions twenty-seven and twenty-eight of section two
4 hundred ten, subsections (bb) and (cc) of section six hundred six,
5 subdivision (z) of section eleven hundred fifteen, subsections (o) and
6 (p) of section fourteen hundred fifty-six, and subdivisions (r) and (s)
7 of section fifteen hundred eleven of the tax law and shall continue to
8 be subject to all reporting and other requirements of this article;
9 approval by the commissioner of certification applications received by
10 the department of economic development on or after the effective date of
11 this subdivision and prior to the effective date of the boundary
12 revision required by subdivision (c) of this section shall only be
13 granted upon a finding that such business would be located within the
14 permissible areas as set forth in section nine hundred fifty-eight of
15 this article, or upon a finding by the commissioner that such approval
16 is necessary or desirable.
17 [(c) The governing body of a city, county, town or village] (e) Once
18 within a four year period the governing bodies of the applicants may, by
19 resolution, submit to the commissioner a request to significantly revise
20 the [boundaries] superboundary or a targeted area of an [existing]
21 empire zone existing pursuant to subdivision (c) of this section and
22 subdivisions (a) through (d) of section nine hundred fifty-eight of this
23 article. The commissioner may, after consultation with the commissioner
24 of labor, approve such revision subject to the following provisions:
25 (1) Any revision of the [borders] superboundary or targeted area of an
26 empire zone shall be based upon a determination by the commissioner that
27 extraordinary change in circumstances support the need for a substantial
28 change [in circumstances has occurred since the establishment of the
29 existing borders] to the empire zone superboundary or targeted area
30 which makes revision of such [borders] boundary both necessary [or] and
31 desirable under the empire zones development plan.
32 (2) The commissioner shall affirm that such revision would not have
33 the effect of producing an empire zone superboundary or targeted area
34 which does not satisfy the criteria for empire zone superboundary or
35 targeted area designation established by or pursuant to subdivisions (a)
36 and (d) of section nine hundred fifty-eight of this article.
37 (3) The zone administrative board's resolution recommending the
38 revision.
39 (f) Once within a one year period the governing bodies of the appli-
40 cants may, by resolution, submit to the commissioner a request to revise
41 the boundaries of an empire zone area existing pursuant to subdivision
42 (c) of this section and section nine hundred fifty-eight of this arti-
43 cle. The commissioner may, after consultation with the commissioner of
44 labor, approve such revision subject to the following provisions:
45 (1) Any revision of the borders of an empire zone area shall be based
46 upon a determination by the commissioner that a change in circumstances
47 support the need for a change to the empire zone area which makes
48 revision of such borders necessary or desirable under the empire zone
49 development plan.
50 (2) The commissioner shall affirm that such revision would not have
51 the effect of producing an empire zone which does not satisfy the crite-
52 ria for empire zone designation established by or pursuant to section
53 nine hundred fifty-eight of this article.
54 (3) The commissioner may grant approval of revision of the borders of
55 an empire zone without prior public notice and without a prior public
S. 6060 83 A. 9560
1 hearing if such revision adds territory to an existing empire zone, but
2 does not remove territory from such zone.
3 (4) The commissioner may grant approval of a revision of the borders
4 of an empire zone after public notice of such proposed revision and a
5 public hearing at least thirty days prior to the effective date of such
6 revision, if such revision removes territory from an existing empire
7 zone.
8 (5) The revision of the borders of an empire zone shall have no effect
9 on the duration of the designation of such empire zone as provided by
10 subdivision (a) of this section.
11 (6) [Any request to revise the boundaries of an existing empire zone
12 submitted to the commissioner on or after January fifteenth, two thou-
13 sand three shall not result in the final designation of less than seven-
14 ty-five percent of the existing zone's undesignated acreage on or after
15 January fifteenth, two thousand three in more than three noncontiguous
16 areas. Any request by an existing zone to the commissioner for the
17 designation of up to twenty-five percent of the existing zone's remain-
18 ing undesignated acreage on or after January fifteenth, two thousand
19 three shall demonstrate that: the proposed acreage offers a significant
20 contribution to the economic revitalization of the zone and surrounding
21 area, to include the creation or retention of private sector jobs, or a
22 plan to demonstrate that the capital, human resource, or other invest-
23 ment by businesses located within the proposed acreage will approximate
24 fifty percent of the projected aggregate amount of zone benefits to be
25 received by the certified businesses located within the proposed acreage
26 during the first twelve months following such designation; and that the
27 proposed acreage is serviced, or will be serviced, by public transporta-
28 tion available to zone or community residents, or other prospective
29 employees, in those zones where a public transportation system already
30 exists and where such service is economically feasible; but only after
31 public notice of such proposed revision and a public hearing at least
32 thirty days prior to the effective date of such revision. Provided,
33 however, if an existing zone demonstrates that a project which will
34 enhance the economic revitalization of the zone and benefit zone resi-
35 dents cannot be included within one of the three noncontiguous areas,
36 and upon the commissioner's determination that inclusion of such addi-
37 tional noncontiguous lands poses significant potential for economic
38 development, to include job creation of no less than three hundred new
39 jobs, more than twenty-five percent of the existing zone's undesignated
40 acreage on or after January fifteenth, two thousand three can be used in
41 more than three noncontiguous areas, but only after public notice of
42 such proposed revision and a public hearing at least thirty days prior
43 to the effective date of such revision.
44 (7) Any request to revise the boundaries of a new empire zone submit-
45 ted to the commissioner shall not result in the final designation of
46 less than seventy-five percent of the new zone's undesignated acreage in
47 more than three noncontiguous areas. Any request by a new zone to the
48 commissioner for the designation of up to twenty-five percent of the new
49 zone's remaining undesignated acreage shall demonstrate that: the
50 proposed acreage offers a significant contribution to the economic revi-
51 talization of the zone and surrounding area, to include the creation or
52 retention of private sector jobs, or a plan to demonstrate that the
53 capital, human resource, or other investment by businesses located with-
54 in the proposed acreage will approximate fifty percent of the projected
55 aggregate amount of zone benefits to be received by the certified busi-
56 nesses located within the proposed acreage during the first twelve
S. 6060 84 A. 9560
1 months following such designation; and that the proposed acreage is
2 serviced, or will be serviced, by public transportation available to
3 zone or community residents, or other prospective employees, in those
4 zones where a public transportation system already exists and where such
5 service is economically feasible; but only after public notice of such
6 proposed revision and a public hearing at least thirty days prior to the
7 effective date of such revision. Provided, however, if a new zone demon-
8 strates that a project which will enhance the economic revitalization of
9 the zone and benefit zone residents cannot be included within one of the
10 three noncontiguous areas, and upon the commissioner's determination
11 that inclusion of such additional noncontiguous lands poses significant
12 potential for economic development, to include job creation of no less
13 than three hundred new jobs, more than twenty-five percent of the new
14 zone's undesignated acreage can be used in more than three noncontiguous
15 areas, but only after public notice of such proposed revision and a
16 public hearing at least thirty days prior to the effective date of such
17 revision.
18 (8) It is the policy to allow each zone no more than one boundary
19 amendment within a twelve month period. If, however, there is a change
20 in circumstances involving extenuating factors within the year (such as
21 the attraction/retention of a major potential/area employer, which is
22 consistent with the zone's development goals), the request will be
23 considered.] A demonstration that such proposed change is consistent
24 with the development plan and meets the criteria for empire zone desig-
25 nation established by or pursuant to section nine hundred fifty-eight of
26 this article shall be submitted by the local empire zone.
27 (7) Resolutions from municipalities to which land is being added or
28 removed, concurring in the applicant municipality's proposed boundary
29 revision.
30 (8) The zone administrative board's resolution recommending the
31 revision.
32 (9) The applicant municipality's local law amending the legal
33 description of the zone boundaries.
34 (g) Upon the termination or revision of the borders of an empire zone
35 as provided in this section, the commissioner shall file notice of such
36 action as required by section nine hundred fifty-nine of this article.
37 § 12. Subdivisions (a), (b), (c), (g) and (j) of section 14 of the tax
38 law, subdivisions (a), (b), (c) and (g) as amended by section 10 of part
39 CC of chapter 85 of the laws of 2002, subdivision (j) as added by
40 section 13-a of part CC of chapter 85 of the laws of 2002, are amended
41 to read as follows:
42 (a) Qualified empire zone enterprise. A business enterprise which is
43 certified under article eighteen-B of the general municipal law [prior
44 to July first, two thousand five] and meets the employment test shall be
45 a "qualified empire zone enterprise":
46 (1) for purposes of articles nine-A, twenty-two, thirty-two and thir-
47 ty-three of this chapter, for each of the taxable years within the
48 "business tax benefit period," which period shall consist of (A) in the
49 case of a business enterprise with a test date occurring on or before
50 December thirty-first, two thousand one, the first fifteen taxable years
51 beginning on or after January first, two thousand one, [and] (B) in the
52 case of a business enterprise with a test date occurring on or after
53 January first, two thousand two, but prior to April first, two thousand
54 four, the fifteen taxable years next following the business enterprise's
55 test year, and (C) in the case of a business enterprise which is certi-
56 fied under article eighteen-B of the general municipal law on or after
S. 6060 85 A. 9560
1 April first, two thousand four, the ten taxable years starting with the
2 taxable year in which the business enterprise's first date of certif-
3 ication under article eighteen-B of the general municipal law occurs,
4 but only with respect to each of such [fifteen] business tax benefit
5 period years for which the employment test is met, and
6 (2) for purposes of articles twenty-eight and twenty-nine of this
7 chapter, during the "sales and use tax benefit period." Such period
8 shall consist of one hundred twenty consecutive months beginning on the
9 later of (A) March first, two thousand one, or (B) the first day of the
10 month next following the date of issuance of a qualified empire zone
11 enterprise certification by the commissioner under subdivision (h) of
12 this section. Provided however, such period shall not include any month
13 falling within a taxable year immediately preceded by a taxable year
14 with respect to which the business enterprise did not meet the employ-
15 ment test.
16 (b) Employment test.
17 (1) General. [The] Except as provided under paragraph four of this
18 subdivision, in the case of a business enterprise which is certified
19 under article eighteen-B of the general municipal law before April
20 first, two thousand four, the employment test shall be met with respect
21 to a taxable year if the business enterprise's employment number in the
22 empire zones for such taxable year equals or exceeds its employment
23 number in such zones for the base period, and its employment number in
24 the state outside of such zones for such taxable year equals or exceeds
25 its employment number in the state outside of such zones for the base
26 period. If the base period is zero years and the enterprise has an
27 employment number in such zone of greater than zero with respect to a
28 taxable year, then the employment test will be met only if the enter-
29 prise qualifies as a new business under subdivision (j) of this section.
30 (2) Change in zone boundaries or newly designated zones. Provided,
31 however, where there has been one or more revisions of the boundaries of
32 an empire zone that resulted in the inclusion of the business enterprise
33 within such zone, the employment test shall be determined with respect
34 to a taxable year as if the boundaries of the revised zone on the last
35 day of the taxable year existed during the base period and test year and
36 as if the enterprise had been located in the revised zone during its
37 base period and test year. In addition, where an area has been newly
38 designated as an empire zone, the employment test shall be determined
39 with respect to a taxable year as if such newly designated zone existed
40 during the base period and test year and as if the enterprise had been
41 located in the newly designated zone during its base period and test
42 year.
43 (3) Relocation from a business incubator facility. Where a business
44 enterprise relocates to an empire zone from a business incubator facili-
45 ty operated by a municipality or by a public or private not-for-profit
46 entity which provides space or business support services or both space
47 and business support services to newly established enterprises, the
48 employment test shall be determined with respect to a taxable year as if
49 such business enterprise was located in the empire zone during the base
50 period.
51 (4) In the case of a business enterprise which (A) is certified under
52 article eighteen-B of the general municipal law on or after April first,
53 two thousand four, or (B) is certified under such article eighteen-B
54 before April first, two thousand four and has a base period of zero
55 years, or (C) is an electric generating facility which was certified
56 under such article eighteen-B before April first, two thousand four, the
S. 6060 86 A. 9560
1 employment test shall be met with respect to a taxable year if the busi-
2 ness enterprise's employment number in the state and the empire zones
3 for such taxable year exceeds its employment number in the state and the
4 empire zones, respectively, for the base period.
5 (c) Base period. [The] (1) Except as provided in paragraph two of this
6 subdivision, in the case of a business enterprise which is certified
7 under article eighteen-B of the general municipal law before April
8 first, two thousand four, the term "base period" means the five taxable
9 years immediately preceding the test year. If the business enterprise
10 has fewer than five such years, then the term "base period" means such
11 smaller set of years.
12 (2) In the case of a business enterprise which (A) is certified under
13 article eighteen-B of the general municipal law on or after April first,
14 two thousand four, or (B) is certified under such article eighteen-B
15 before April first, two thousand four and has a base period of zero
16 years, or (C) is an electric generating facility which was certified
17 under such article eighteen-B before April first, two thousand four, the
18 term "base period" means the four taxable years immediately preceding
19 the taxable year in which the business enterprise was first certified
20 under article eighteen-B of the general municipal law. If the business
21 enterprise has fewer than four such years, then the term "base period"
22 means such smaller set of years.
23 (g) Employment number. The term "employment number" shall mean the
24 average number of individuals, excluding general executive officers (in
25 the case of a corporation), employed full-time by the enterprise for at
26 least one-half of the taxable year. Such number shall be computed by
27 determining the number of such individuals employed by the taxpayer on
28 the thirty-first day of March, the thirtieth day of June, the thirtieth
29 day of September and the thirty-first day of December during the appli-
30 cable taxable year, adding together the number of such individuals
31 determined to be so employed on each of such dates and dividing the sum
32 so obtained by the number of such dates occurring within such applicable
33 taxable year. Such number shall not include individuals employed within
34 the state within the immediately preceding sixty months by a related
35 person to the QEZE, as such term "related person" is defined in subpara-
36 graph (c) of paragraph three of subsection (b) of section four hundred
37 sixty-five of the internal revenue code. For this purpose, a "related
38 person" shall include an entity which would have qualified as a "related
39 person" to the QEZE if it had not been dissolved, liquidated, merged
40 with another entity or otherwise ceased to exist or operate.
41 [(j)] (k) If the designation of an area as an empire zone is no longer
42 in effect because section nine hundred sixty-nine of the general munici-
43 pal law was not amended to extend the effective date of such designation
44 beyond July thirty-first, two thousand [four] nine, a business enter-
45 prise that was certified pursuant to article eighteen-B of the general
46 municipal law on July thirty-first, two thousand [four] nine shall be
47 deemed to continue to be certified under such article eighteen-B for
48 purposes of this section, and sections fifteen, sixteen, subdivisions
49 twenty-seven and twenty-eight of section two hundred ten, subsections
50 (bb) and (cc) of section six hundred six, subdivision (z) of section
51 eleven hundred fifteen, subsections (o) and (p) of section fourteen
52 hundred fifty-six, and subdivisions (r) and (s) of section fifteen
53 hundred eleven of this chapter. In addition, if the designation of an
54 area as an empire zone is no longer in effect because section nine
55 hundred sixty-nine of the general municipal law was not amended to
56 extend the effective date of such designation beyond July thirty-first,
S. 6060 87 A. 9560
1 two thousand [four] nine, all references to empire zones in the
2 provisions of this chapter listed in the previous sentence shall be read
3 as meaning areas designated as empire zones on July thirty-first, two
4 thousand [four] nine.
5 § 13. Section 15 of the tax law, as added by section 2 of part GG of
6 chapter 63 of the laws of 2000, subdivision (b) as amended by section
7 11, subdivisions (d) and (e) as amended by section 12, subdivisions (f)
8 and (g) as added and subdivision (h) as relettered by section 13 of part
9 CC of chapter 85 of the laws of 2002, is amended to read as follows:
10 § 15. QEZE credit for real property taxes. (a) Allowance of credit. A
11 taxpayer which is a qualified empire zone enterprise (QEZE), or which is
12 a sole proprietor of a QEZE or a member of a partnership which is a
13 QEZE, and which is subject to tax under article nine-A, twenty-two,
14 thirty-two or thirty-three of this chapter, shall be allowed a credit
15 against such tax, pursuant to the provisions referenced in subdivision
16 [(f)] (h) of this section, for eligible real property taxes.
17 (b) Amount of credit. The amount of the credit shall be the product
18 (or pro rata share of the product, in the case of a member of a partner-
19 ship) of (i) the benefit period factor, (ii) the employment increase
20 factor and (iii) the eligible real property taxes paid [or incurred] by
21 the QEZE during the taxable year. However, the amount of the credit may
22 not exceed the credit limitation set forth in subdivision (f) of this
23 section.
24 (c) Benefit period factor. The benefit period factors are set forth
25 in the following table:
26 Taxable year of the benefit period: Benefit period factor:
27 1 - 10 1.0
28 11 .8
29 12 .6
30 13 .4
31 14 .2
32 15 0
33 (d) Employment increase factor. [The] (1) Except as provided in para-
34 graph three of this subdivision, in the case of a business enterprise
35 which is certified under article eighteen-B of the general municipal law
36 before April first, two thousand four, the employment increase factor is
37 the amount, not to exceed 1.0, which is the greater of:
38 [(1)] (A) the excess of the QEZE's employment number in the empire
39 zones with respect to which the QEZE is certified pursuant to article
40 eighteen-B of the general municipal law for the taxable year, over the
41 QEZE's test year employment number in such zones, divided by such test
42 year employment number in such zones; or
43 [(2)] (B) the excess of the QEZE's employment number in such zones for
44 the taxable year over the QEZE's test year employment number in such
45 zones, divided by 100.
46 [(3)] (2) For purposes of subparagraph (A) of paragraph one of this
47 subdivision, where there is an excess as described in such [paragraph]
48 subparagraph, and where the test year employment number is zero, then
49 the QEZE's employment increase factor shall be 1.0.
50 (3) In the case of a business enterprise which (A) is certified under
51 article eighteen-B of the general municipal law on or after April first,
52 two thousand four, or (B) is certified under such article eighteen-B
53 before April first, two thousand four and has a base period of zero
54 years, or (C) is an electric generating facility which was certified
55 under such article eighteen-B before April first, two thousand four, the
S. 6060 88 A. 9560
1 employment increase factor is the amount, not to exceed 1.0, which is
2 the excess of the QEZE's employment number in the empire zones with
3 respect to which the QEZE is certified pursuant to article eighteen-B of
4 the general municipal law for the taxable year over the QEZE's employ-
5 ment number for the base period in such zones, divided by 100. For
6 purposes of determining the QEZE's employment number in the empire zones
7 with respect to which the QEZE is certified for the taxable year, such
8 number shall not include individuals employed within the state but
9 outside such zones within the preceding sixty months by the QEZE or by a
10 related person, as such term is defined in subdivision (g) of section
11 fourteen of this article, to the QEZE.
12 (4) For purposes of this subdivision, where the commissioner of
13 economic development certifies that the QEZE has made an investment that
14 qualifies as a qualified empire zone investment pursuant to section nine
15 hundred fifty-nine of the general municipal law, then the QEZE's employ-
16 ment increase factor shall be 1.0. In this situation, the QEZE shall be
17 required to submit proof to the department that the commissioner of
18 economic development has made such certification.
19 (e) Eligible real property taxes. The term "eligible real property
20 taxes" means taxes imposed on real property which is owned by the QEZE
21 and located in an empire zone with respect to which the QEZE is certi-
22 fied pursuant to article eighteen-B of the general municipal law,
23 provided such taxes are paid by the QEZE which is the owner of the real
24 property and such taxes become a lien on the real property during a
25 taxable year in which the owner of the real property is both certified
26 pursuant to article eighteen-B of the general municipal law and a quali-
27 fied empire zone enterprise. In addition, "eligible real property
28 taxes" shall include taxes paid by a QEZE which is a lessee of real
29 property if the following conditions are satisfied: (1) the taxes must
30 be paid pursuant to explicit requirements in a written lease, (2) such
31 taxes become a lien on the real property during a taxable year in which
32 the lessee of the real property is both certified pursuant to article
33 eighteen-B of the general municipal law and a qualified empire zone
34 enterprise, and (3) the lessee has made direct payment of such taxes to
35 the taxing authority and has received a receipt for such payment of
36 taxes from the taxing authority. In addition, the term "eligible real
37 property taxes" includes payments in lieu of taxes made by the QEZE to
38 the state, a municipal corporation or a public benefit corporation
39 pursuant to a written agreement entered into between the QEZE and the
40 state, municipal corporation, or public benefit corporation. Provided,
41 however, a payment in lieu of taxes made by the QEZE pursuant to a writ-
42 ten agreement executed or amended on or after January first, two thou-
43 sand one, shall not constitute eligible real property taxes [unless such
44 written agreement is approved by both the department of economic devel-
45 opment and the office of real property services as satisfying generally
46 accepted and recognized norms and standards of real property tax
47 appraisals] in any taxable year to the extent that such payment exceeds
48 the product of (A) the greater of (i) the basis for federal income tax
49 purposes, determined on the later of January first, two thousand one or
50 the effective date of the QEZE's certification pursuant to article eigh-
51 teen-B of the general municipal law of real property, including build-
52 ings and structural components of buildings, owned by the QEZE and
53 located in empire zones with respect to which the QEZE is certified
54 pursuant to such article eighteen-B of the general municipal law, or
55 (ii) the basis for federal income tax purposes of such real property
56 described in clause (i) of this subparagraph on the last day of the
S. 6060 89 A. 9560
1 taxable year, and (B) the estimated effective full value tax rate within
2 the county in which such property is located, as most recently reported
3 to the commissioner by the secretary of the state board of real property
4 services, or his or her designee. The state board shall annually calcu-
5 late estimated effective full value tax rates within each county for
6 this purpose based upon the most current information available to it in
7 relation to county, city, town, village and school district taxes.
8 (f) The credit limitation shall be the greater of the employment
9 increase limitation or the capital investment limitation.
10 (1) [The] (A) Except as provided in subparagraph (B) of this para-
11 graph, in the case of a business enterprise which is certified under
12 article eighteen-B of the general municipal law before April first, two
13 thousand four, the employment increase limitation shall be the product
14 of [(A)] (i) ten thousand dollars and [(B)] (ii) the excess of the
15 QEZE's employment number in the empire zones with respect to which the
16 QEZE is certified pursuant to article eighteen-B of the general munici-
17 pal law for the taxable year, over the QEZE's test year employment
18 number in such zones.
19 (B) In the case of a business enterprise which (i) is certified under
20 article eighteen-B of the general municipal law on or after April first,
21 two thousand four, or (ii) is certified under such article eighteen-B
22 before April first, two thousand four and has a base period of zero
23 years, or (iii) any electric generating facility which was certified
24 under such article eighteen-B before April first, two thousand four, the
25 employment increase limitation shall be the product of (I) ten thousand
26 dollars and (II) the excess of the QEZE's employment number in the
27 empire zones with respect to which the QEZE is certified pursuant to
28 article eighteen-B of the general municipal law for the taxable year,
29 over the QEZE's base period employment number in such zones. Under this
30 subparagraph, for purposes of determining the QEZE's employment number
31 in the empire zones with respect to which the QEZE is certified for the
32 taxable year, such number shall not include individuals employed within
33 the state but outside such zones within the preceding sixty months by
34 the QEZE or by a related person, as such term is defined in subdivision
35 (g) of section fourteen of this article, to the QEZE.
36 (2) The capital investment limitation shall be the product of (A) ten
37 percent of the greater of (i) the [cost or other] basis for federal
38 income tax purposes, determined on the later of January first, two thou-
39 sand one or the effective date of the QEZE's certification pursuant to
40 article eighteen-B of the general municipal law, of real property,
41 including buildings and structural components of buildings, owned by the
42 QEZE and located in empire zones with respect to which the QEZE is
43 certified pursuant to such article eighteen-B of the general municipal
44 law, or (ii) the [cost or other] basis for federal income tax purposes
45 of such real property described in clause (i) of this subparagraph on
46 the last day of the taxable year, and (B) the greater of (i) the
47 percentage of such real property described in clause (i) of subparagraph
48 (A) of this paragraph which is physically occupied and used by the QEZE
49 or by a related person to the QEZE, as the term "related person" is
50 defined in subparagraph (c) of paragraph three of subsection (b) of
51 section four hundred sixty-five of the internal revenue code, or (ii)
52 the percentage of such [cost or other] basis which is attributable to
53 the construction, expansion or rehabilitation of such property, rather
54 than the acquisition of such real property, by the QEZE. Provided,
55 however, if the percentage of such [cost or other] basis, which is
56 attributable to the construction, expansion or rehabilitation of such
S. 6060 90 A. 9560
1 real property equals or exceeds fifty percent, then the percentage
2 described in clause (ii) of subparagraph (B) of this paragraph shall be
3 deemed to be one hundred percent.
4 (3) In the case of a QEZE whose eligible real property taxes are those
5 taxes paid pursuant to the terms of a lease, the capital investment
6 limitation shall not apply and the credit limitation shall be the
7 employment increase limitation.
8 (g) Credit recapture. Where a QEZE's eligible real property taxes
9 which were the basis for the allowance of the credit provided for under
10 this section are subsequently reduced as a result of a final order in
11 any proceeding under article seven of the real property tax law or other
12 provision of law, the taxpayer shall add back, in the taxable year in
13 which such final order is issued, the excess of (1) the amount of credit
14 originally allowed for a taxable year over (2) the amount of credit
15 determined based upon the reduced eligible real property taxes. If such
16 final order reduces real property taxes for more than one year, the
17 taxpayer must determine how much of such reduction is attributable to
18 each year covered by such final order and calculate the amount of credit
19 which is required by this subsection to be recaptured for each year
20 based on such reduction.
21 (h) Definitions and cross-references. For definitions of terms used in
22 this section see section fourteen of this article. For application of
23 the credit provided for in this section, see the following provisions of
24 this chapter:
25 (1) Article 9-A: Section 210: subdivision 27.
26 (2) Article 22: Section 606: subsections (i) and (bb).
27 (3) Article 32: Section 1456: subsection (o).
28 (4) Article 33: Section 1511: subdivision (r).
29 § 14. Subparagraph 2 of paragraph (b) of subdivision 19 of section 210
30 of the tax law, as amended by chapter 624 of the laws of 1990, and as
31 further amended by section 15 of part GG of chapter 63 of the laws of
32 2000, is amended to read as follows:
33 (2) "Targeted employee" means a New York resident who receives empire
34 zone wages and who is (A) an eligible individual under the provisions of
35 the targeted jobs tax credit (section fifty-one of the internal revenue
36 code), (B) eligible for benefits under the provisions of the [job train-
37 ing partnership] workforce investment act as a dislocated worker or
38 low-income individual (P.L. [97-300] 105-220, as amended), (C) a recipi-
39 ent of public assistance benefits or (D) an individual whose income is
40 below [he] the most recently established poverty rate promulgated by the
41 United States department of commerce, or a member of a family whose
42 family income is below the most recently established poverty rate
43 promulgated by the appropriate federal agency.
44 § 15. The second undesignated paragraph of paragraph (c) of subdivi-
45 sion 19 of section 210 of the tax law, as amended by section 14-a of
46 part CC of chapter 85 of the laws of 2002, is amended to read as
47 follows:
48 The credit shall be allowed only with respect to the first taxable
49 year during which payments of empire zone wages are made and the condi-
50 tions set forth in this paragraph are satisfied, and with respect to
51 each of the four taxable years next following (but only, with respect to
52 each of such years, if such conditions are satisfied), in accordance
53 with paragraph (d) of this subdivision. Subsequent certifications of the
54 taxpayer pursuant to article eighteen-B of the general municipal law, at
55 the same or a different location in the same empire zone or zone equiv-
56 alent area or at a location in a different empire zone or zone equiv-
S. 6060 91 A. 9560
1 alent area, shall not extend the five taxable year time limitation on
2 the allowance of the credit set forth in the preceding sentence.
3 Provided, further, however, that no credit shall be allowed with respect
4 to any taxable year beginning more than four years following the taxable
5 year in which designation as an empire zone expired or more than ten
6 years after the designation as a zone equivalent area. Notwithstanding
7 the previous sentence, a taxpayer which has been certified under article
8 eighteen-B of the general municipal law in a zone equivalent area prior
9 to June thirteenth, two thousand four shall be allowed a credit under
10 this subdivision for a total of five taxable years, provided that
11 payments of empire zone wages are made and the conditions set forth in
12 this paragraph are satisfied in each of those years.
13 § 16. Subparagraph 3 of paragraph (d) of subdivision 19 of section 210
14 of the tax law, as added by section 15 of part CC of chapter 85 of the
15 laws of 2002, is amended to read as follows:
16 (3) For purposes of calculating the amount of the credit, individuals
17 employed within an empire zone or zone equivalent area within the imme-
18 diately preceding sixty months by a related person, as such term is
19 defined in subparagraph (c) of paragraph three of subsection (b) of
20 section four hundred sixty-five of the internal revenue code, shall not
21 be included in the average number of individuals described in subpara-
22 graph one or subparagraph two of this paragraph, unless such related
23 person was never allowed a credit under this subdivision with respect to
24 such employees. For the purposes of this subparagraph, a "related
25 person" shall include an entity which would have qualified as a "related
26 person" to the taxpayer if it had not been dissolved, liquidated, merged
27 with another entity or otherwise ceased to exist or operate.
28 § 17. Paragraph (a) of subdivision 20 of section 210 of the tax law,
29 as amended by chapter 708 of the laws of 1993, and as further amended by
30 section 15 of part GG of chapter 63 of the laws of 2000, is amended to
31 read as follows:
32 (a) A taxpayer shall be allowed a credit against the tax imposed by
33 this article. The amount of the credit shall be equal to twenty-five
34 percent of the sum of the following investments and contributions made
35 during the taxable year and certified by the commissioner of economic
36 development:(1) for taxable years beginning before January first, two
37 thousand five, qualified investments made in, or contributions in the
38 form of donations made to, one or more empire zone capital corporations
39 established pursuant to section nine hundred sixty-four of the general
40 municipal law prior to July thirty-first, two-thousand four, (2) quali-
41 fied investments in certified zone businesses which during the twelve
42 month period immediately preceding the month in which such investment is
43 made employed full-time within the state an average number of individ-
44 uals, excluding general executive officers, of two hundred fifty or
45 fewer, computed pursuant to the provisions of subparagraph three of
46 paragraph (b) of subdivision nineteen of this section, except for
47 investments made by or on behalf of an owner of the business, including,
48 but not limited to, a stockholder, partner or sole proprietor, or any
49 related person, as defined in subparagraph (C) of paragraph three of
50 subsection (b) of section four hundred sixty-five of the internal reven-
51 ue code, and (3) contributions of money to community development
52 projects as defined in regulations promulgated by the commissioner of
53 economic development. "Qualified investments" means the contribution of
54 property to a corporation in exchange for original issue capital stock
55 or other ownership interest, the contribution of property to a partner-
56 ship in exchange for an interest in the partnership, and similar
S. 6060 92 A. 9560
1 contributions in the case of a business entity not in corporate or part-
2 nership form in exchange for an ownership interest in such entity. The
3 total amount of credit allowable to a taxpayer under this provision for
4 all years, taken in the aggregate, shall not exceed three hundred thou-
5 sand dollars, and shall not exceed one hundred thousand dollars with
6 respect to the investments and contributions described in each of
7 subparagraphs one, two and three of this paragraph.
8 § 18. Paragraph 1 of subsection (d) of section 1456 of the tax law, as
9 amended by chapter 708 of the laws of 1993, and as further amended by
10 section 15 of part GG of chapter 63 of the laws of 2000, is amended to
11 read as follows:
12 (1) A taxpayer shall be allowed a credit against the tax imposed by
13 this article. The amount of the credit shall be equal to twenty-five
14 percent of the sum of the following investments and contributions made
15 during the taxable year and certified by the commissioner of economic
16 development: (A) for taxable years beginning before January first, two
17 thousand five, qualified investments made in, or contributions in the
18 form of donations made to, one or more empire zone capital corporations
19 established pursuant to section nine hundred sixty-four of the general
20 municipal law prior to July thirty-first, two-thousand four, (B) quali-
21 fied investments in certified zone businesses which during the twelve
22 month period immediately preceding the month in which such investment is
23 made employed full-time within the state an average number of individ-
24 uals, excluding general executive officers, of two hundred fifty or
25 fewer, computed pursuant to the provisions of subparagraph (C) of para-
26 graph two of subsection (e) of this section, except for investments made
27 by or on behalf of an owner of the business, including, but not limited
28 to, a stockholder, partner or sole proprietor, or any related person, as
29 defined in subparagraph (C) of paragraph three of subsection (b) of
30 section four hundred sixty-five of the internal revenue code, and (C)
31 contributions of money to community development projects as defined in
32 regulations promulgated by the commissioner of economic development.
33 "Qualified investments" means the contribution of property to a corpo-
34 ration in exchange for original issue capital stock or other ownership
35 interest, the contribution of property to a partnership in exchange for
36 an interest in the partnership, and similar contributions in the case of
37 a business entity not in corporate or partnership form in exchange for
38 an ownership interest in such entity. The total amount of credit allow-
39 able to a taxpayer under this provision for all years, taken in the
40 aggregate, shall not exceed three hundred thousand dollars, and shall
41 not exceed one hundred thousand dollars with respect to the investments
42 and contributions described in each of subparagraphs (A), (B) and (C) of
43 this paragraph.
44 § 19. Subparagraph (B) of paragraph 2 of subsection (e) of section
45 1456 of the tax law, as amended by chapter 170 of the laws of 1994, and
46 as further amended by section 15 of part GG of chapter 63 of the laws of
47 2000, is amended to read as follows:
48 (B) "Targeted employee" means a New York resident who receives empire
49 zone wages and who is (i) an eligible individual under the provisions of
50 the targeted jobs tax credit (section fifty-one of the internal revenue
51 code), (ii) eligible for benefits under the provisions of the [job
52 training partnership] workforce investment act as a dislocated worker or
53 low-income individual (P.L. [97-300] 105-220, as amended), (iii) a
54 recipient of public assistance benefits or (iv) an individual whose
55 income is below the most recently established poverty rate promulgated
56 by the United States department of commerce, or a member of a family
S. 6060 93 A. 9560
1 whose family income is below the most recently established poverty rate
2 promulgated by the appropriate federal agency.
3 An individual who satisfies the criteria set forth in clause (i), (ii)
4 or (iv) at the time of initial employment in the job with respect to
5 which the credit is claimed, or who satisfies the criterion set forth in
6 clause (iii) at such time or at any time within the previous two years,
7 shall be a targeted employee so long as such individual continues to
8 receive empire zone wages.
9 § 20. The second undesignated paragraph of paragraph 3 of subsection
10 (e) of section 1456 of the tax law, as amended by section 16-a of part
11 CC of chapter 85 of the laws of 2002, is amended to read as follows:
12 The credit shall be allowed only with respect to the first taxable
13 year during which payments of empire zone wages are made and the condi-
14 tions set forth in this paragraph are satisfied, and with respect to
15 each of the four taxable years next following (but only, with respect to
16 each of such years, if such conditions are satisfied), in accordance
17 with paragraph four of this subsection. Subsequent certifications of the
18 taxpayer pursuant to article eighteen-B of the general municipal law, at
19 the same or a different location in the same empire zone or zone equiv-
20 alent area or at a location in a different empire zone or zone equiv-
21 alent area, shall not extend the five taxable year time limitation on
22 the allowance of the credit set forth in the preceding sentence.
23 Provided, further, however, that no credit shall be allowed with respect
24 to any taxable year beginning more than four years following the taxable
25 year in which designation as an empire zone expired or more than ten
26 years after the designation as a zone equivalent area. Notwithstanding
27 the previous sentence, a taxpayer which has been certified under article
28 eighteen-B of the general municipal law in a zone equivalent area prior
29 to June thirteenth, two thousand four shall be allowed a credit under
30 this subdivision for a total of five taxable years, provided that
31 payments of empire zone wages are made and the conditions set forth in
32 this subsection are satisfied in each of those years.
33 § 21. Subparagraph (C) of paragraph 4 of subsection (e) of section
34 1456 of the tax law, as added by section 16-b of part CC of chapter 85
35 of the laws of 2002, is amended to read as follows:
36 (C) For purposes of calculating the amount of the credit, individuals
37 employed within an empire zone or zone equivalent area within the imme-
38 diately preceding sixty months by a related person, as such term is
39 defined in subparagraph (c) of paragraph three of subsection (b) of
40 section four hundred sixty-five of the internal revenue code, shall not
41 be included in the average number of individuals described in subpara-
42 graph (A) or subparagraph (B) of this paragraph, unless such related
43 person was never allowed a credit under this subsection with respect to
44 such employees. For the purposes of this subparagraph, a "related
45 person" shall include an entity which would have qualified as a "related
46 person" to the taxpayer if it had not been dissolved, liquidated, merged
47 with another entity or otherwise ceased to exist or operate.
48 § 22. Subparagraph (B) of paragraph 2 of subdivision (g) of section
49 1511 of the tax law, as amended by chapter 170 of the laws of 1994, and
50 as further amended by section 15 of part GG of chapter 63 of the laws of
51 2000, is amended to read as follows:
52 (B) "Targeted employee" means a New York resident who receives empire
53 zone wages and who is (i) an eligible individual under the provision of
54 the targeted jobs tax credit (section fifty-one of the internal revenue
55 code), (ii) eligible for benefits under the provisions of the [job
56 training partnership] workforce investment act as a dislocated worker or
S. 6060 94 A. 9560
1 a low-income individual (P.L. [97-300] 105-220, as amended), (iii) a
2 recipient of public assistance benefits or (iv) an individual whose
3 income is below the most recently established poverty rate promulgated
4 by the United States department of commerce, or a member of a family
5 whose family income is below the most recently established poverty rate
6 promulgated by the appropriate federal agency.
7 An individual who satisfies the criteria set forth in clause (i), (ii)
8 or (iv) at the time of initial employment in the job with respect to
9 which the credit is claimed, or who satisfies the criterion set forth in
10 clause (iii) at such time or at any time within the previous two years,
11 shall be a targeted employee so long as such individual continues to
12 receive empire zone wages.
13 § 23. The second undesignated paragraph of paragraph 3 of subdivision
14 (g) of section 1511 of the tax law, as amended by section 16-c of part
15 CC of chapter 85 of the laws of 2002, is amended to read as follows:
16 The credit shall be allowed only with respect to the first taxable
17 year during which payments of empire zone wages are made and the condi-
18 tions set forth in this paragraph are satisfied, and with respect to
19 each of the four taxable years next following (but only, with respect to
20 each of such years, if such conditions are satisfied), in accordance
21 with paragraph four of this subdivision. Subsequent certifications of
22 the taxpayer pursuant to article eighteen-B of the general municipal
23 law, at the same or a different location in the same empire zone or zone
24 equivalent area or at a location in a different empire zone or zone
25 equivalent area, shall not extend the five taxable year time limitation
26 on the allowance of the credit set forth in the preceding sentence.
27 Provided, further, however, that no credit shall be allowed with respect
28 to any taxable year beginning more than four years following the taxable
29 year in which designation as an empire zone expired or more than ten
30 years after the designation as a zone equivalent area. Notwithstanding
31 the previous sentence, a taxpayer which has been certified under article
32 eighteen-B of the general municipal law in a zone equivalent area prior
33 to June thirteenth, two thousand four shall be allowed a credit under
34 this subdivision for a total of five taxable years, provided that
35 payments of empire zone wages are made and the conditions set forth in
36 this subdivision are satisfied in each of those years.
37 § 24. Subparagraph (C) of paragraph 4 of subdivision (g) of section
38 1511 of the tax law, as added by section 16-d of part CC of chapter 85
39 of the laws of 2002, is amended to read as follows:
40 (C) For purposes of calculating the amount of the credit, individuals
41 employed within an empire zone or zone equivalent area within the imme-
42 diately preceding sixty months by a related person, as such term is
43 defined in subparagraph (c) of paragraph three of subsection (b) of
44 section four hundred sixty-five of the internal revenue code, shall not
45 be included in the average number of individuals described in subpara-
46 graph (A) or subparagraph (B) of this paragraph, unless such related
47 person was never allowed a credit under this subdivision with respect to
48 such employees. For the purposes of this subparagraph, a "related
49 person" shall include an entity which would have qualified as a "related
50 person" to the taxpayer if it had not been dissolved, liquidated, merged
51 with another entity or otherwise ceased to exist or operate.
52 § 25. Paragraph 1 of subdivision (h) of section 1511 of the tax law,
53 as amended by chapter 708 of the laws of 1993 and subparagraph (A) of
54 paragraph 1 as further amended by section 15 of part GG of chapter 63 of
55 the laws of 2000, is amended to read as follows:
S. 6060 95 A. 9560
1 (1) A taxpayer shall be allowed a credit against the tax imposed by
2 this article. The amount of the credit shall be equal to twenty-five
3 percent of the sum of the following investments and contributions made
4 during the taxable year and certified by the commissioner of economic
5 development: (A) for taxable years beginning before January first, two
6 thousand five, qualified investments made in, or contributions in the
7 form of donations made to, one or more empire zone capital corporations
8 established pursuant to section nine hundred sixty-four of the general
9 municipal law prior to July thirty-first, two-thousand four, (B) quali-
10 fied investments in certified zone businesses which during the twelve
11 month period immediately preceding the month in which such investment is
12 made employed full-time within the state an average number of individ-
13 uals, excluding general executive officers, of two hundred fifty or
14 fewer, computed pursuant to the provisions of subparagraph (C) of para-
15 graph two of subsection (g) of this section, except for investments made
16 by or on behalf of an owner of the business, including, but not limited
17 to, a stockholder, partner or sole proprietor, or any related person, as
18 defined in subparagraph (C) of paragraph three of subsection (b) of
19 section four hundred sixty-five of the internal revenue code, and (C)
20 contributions of money to community development projects as defined in
21 regulations promulgated by the commissioner of economic development.
22 "Qualified investments" means the contribution of property to a corpo-
23 ration in exchange for original issue capital stock or other ownership
24 interest, the contribution of property to a partnership in exchange for
25 an interest in the partnership, and similar contributions in the case of
26 a business entity not in corporate or partnership form in exchange for
27 an ownership interest in such entity. The total amount of credit allow-
28 able to a taxpayer under this provision for all years, taken in the
29 aggregate, shall not exceed three hundred thousand dollars, and shall
30 not exceed one hundred thousand dollars with respect to the investments
31 and contributions described in each of subparagraphs (A), (B) and (C) of
32 this paragraph.
33 § 26. Notwithstanding the amendments made by sections twelve and thir-
34 teen of this act, any business enterprise certified under article 18-B
35 of the general municipal law prior to April 1, 2004 which has a base
36 period of zero years or which is an electric generating facility shall
37 be entitled to apply to the commissioner of economic development for
38 permission to determine its status as a QEZE and calculate its QEZE real
39 property tax credit and its QEZE tax reduction credit for taxable years
40 beginning on or after January 1, 2004 using the law in effect for taxa-
41 ble years beginning on or after January 1, 2003 but before January 1,
42 2004. The commissioner of economic development shall promulgate rules
43 that shall set forth the procedures for business enterprises to follow
44 to apply for such permission and the standards to be used to determine
45 whether or not such permission shall be granted. The commissioner of
46 economic development shall notify the commissioner of taxation and
47 finance of all applications received for such permission and the dispo-
48 sition of all such applications.
49 § 27. This act shall take effect immediately; provided, however, that
50 (i) sections twelve, thirteen, fifteen, twenty and twenty-three of this
51 act shall apply to taxable years beginning on or after January 1, 2004
52 and (ii) the amendment in section twelve of this act to subdivision (g)
53 of section 14 of the tax law concerning "related person" and sections
54 sixteen, twenty-one and twenty-four of this act shall apply to taxable
55 years beginning on or after January 1, 2002.
S. 6060 96 A. 9560
1 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
2 sion, section or part of this act shall be adjudged by any court of
3 competent jurisdiction to be invalid, such judgment shall not affect,
4 impair, or invalidate the remainder thereof, but shall be confined in
5 its operation to the clause, sentence, paragraph, subdivision, section
6 or part thereof directly involved in the controversy in which such judg-
7 ment shall have been rendered. It is hereby declared to be the intent of
8 the legislature that this act would have been enacted even if such
9 invalid provisions had not been included herein.
10 § 3. This act shall take effect immediately provided, however, that
11 the applicable effective date of Parts A through T of this act shall be
12 as specifically set forth in the last section of such Parts.
S. 6060 97 A. 9560
2004-2005 NEW YORK STATE EXECUTIVE BUDGET
REVENUE ARTICLE VII LEGISLATION
CONTENTS
STARTING
PAGE
PART DESCRIPTION NUMBER
A Replace the permanent $110 clothing and footwear
tax exemption with four $500 exemption weeks. 3
B Allow for an additional $2 million in tax credits
annually, or $20 million over the ten-year life of
the program, for the Low-Income Housing Tax Credit
program which will spur a new round of affordable
housing construction. 6
C Make Quick Draw permanent. 6
D Remove restrictions on Quick Draw. 6
E Extend the MTA surcharge that is scheduled to expire
on December 31, 2005. 7
F Extend the Alternative Fuels Vehicle Program for
one year. 14
G Modify the fixed dollar minimum tax base. 20
H Create a new exemption from the personal income
tax for Federal military pay for New York State
Guard members activated and deployed full-time in
the New York War on Terror. 20
I Reduce the tax burden for manufacturers by phasing
in a 100 percent receipts factor in determining
income apportioned to New York State. 23
J Place sales tax rate surcharges on certain taxable
services to fund public safety and security
initiatives. 25
K Allow the direct shipment of wine into New York
State from out-of-state wineries. 27
L Clarify rights regarding the availability of tax
hearings. 31
M Create a new biotech program that would allow
qualified biotech companies to sell their unused
losses to eligible corporations based on 90 percent
of the value of the losses. 35
N Ease filing requirements for low-income taxpayers
under the personal income tax. 41
O Provide for the State to enter into price parity
agreements with Native American nations with respect
to cigarettes, motor fuel and alcoholic beverages
and exempt such Native American nations from current
regulations to collect the respective taxes. 41
P Extend the bank tax for one year and the Federal
Gramm-Leach-Bliley Act provisions for two years to
preserve current revenues. 43
Q Create a new State STAR credit under the personal
income tax to protect the STAR benefit from the
effects of inflation. 50
R Authorize up to eight new facilities to be licensed
by the Division of the Lottery to operate video
lottery terminals. 51
S. 6060 98 A. 9560
S Include in New York source income, gains from sales
of cooperative apartment stock for non-residents. 54
T Extend and reform the Empire Zones Program. 60