RETRIEVE BILL REVENUE - 0607
STATE OF NEW YORK
________________________________________________________________________
S. 6460 A. 9560
SENATE - ASSEMBLY
January 20, 2006
___________
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 eliminating the marriage
penalty in the personal income tax (Part A); to amend the tax law, in
relation to reducing the personal income tax rates (Part B); to amend
the tax law, in relation to the subtraction from adjusted gross income
for members of the New York state organized militia serving pursuant
to active duty orders issued by the federal government (Part C); to
amend the tax law, in relation to providing a credit against the
personal income tax for certain education expenses (Part D); to amend
the tax law, in relation to the amount of the unified credit allowable
under the estate tax and the rate of such tax and the generation-skip-
ping transfer tax (Part E); to amend the general municipal law and the
tax law, in relation to the expansion of the empire zone program (Part
F); to amend the tax law, in relation to the elimination of the
subsidiary capital base rate of tax under article 9-A thereof (Part
G); to amend the tax law, in relation to the elimination of the mini-
mum taxable income base and alternative entire net income base of tax
under article 9-A and article 32 thereof (Part H); to amend the tax
law, in relation to the deductions taken under articles 9-A, 22 and 32
thereof relating to the purchase of certain tangible property (Part
I); to amend the tax law, in relation to the reduction of the tax rate
under Articles 9-A and 32 thereof (Part J); to amend the tax law, in
relation to the elimination of the capital base and taxable asset base
of tax under articles 9-A and 32 thereof (Part K); to amend the tax
law, in relation to permanently eliminating the article twenty-two tax
equivalent in the computation of the tax imposed on a New York S
corporation (Part L); to amend the tax law, in relation to the taxa-
tion of premiums from annuity contracts (Part M); to amend the tax
law, in relation to the limitations on tax applicable to life insur-
ance companies (Part N); to amend the tax law, in relation to the
sales tax vendor credit authorized under article 28 (Part O); to amend
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12274-02-6
S. 6460 2 A. 9560
chapter 298 of the laws of 1985, amending the tax law relating to the
franchise tax on banking corporations imposed by the tax law, author-
ized 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 administra-
tive 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 imposition of taxes in the city of New
York, in relation to the effectiveness of certain provisions of such
chapters; and to amend the tax law, in relation to permitting certain
banking corporations otherwise subject to tax under article 32 of the
tax law to make an election to be taxed under article 9-A of such law;
and to amend the administrative code of the city of New York, in
relation to permitting certain banking corporations otherwise subject
to tax under subchapter 3 of chapter 6 of title 11 of the administra-
tive 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 exempting new
Energy Star appliances and home weatherization products from state
sales and compensating use taxes imposed by article 28 of the tax law
during two seven-day periods each year and authorizing counties and
cities to elect such exemption from local sales and use taxes imposed
by or pursuant to the authority of article 28 or 29 of such law (Part
Q); to amend the tax law, in relation to providing a refundable
personal income tax credit related to the cost associated with home
heating (Part R); to amend the tax law, in relation to providing a
refundable personal income tax credit related to the cost associated
with replacement or renovation of a home heating system (Part S); to
amend the tax law, in relation to providing refundable personal and
business income tax credits related to energy costs associated with
small businesses and eligible farmers (Part T); to amend the tax law,
in relation to providing tax credits for clean-fuel property, alterna-
tive fuel vehicles and biofuel production (Part U); to amend the tax
law, in relation to providing exemptions, reimbursements and credits
from various taxes for certain alternative fuels (Part V); to amend
the tax law, in relation to imposing certain limitations on eligibil-
ity for the brownfield tax credits described in sections 21 and 22 of
the tax law (Part W); to amend the tax law and the parks, recreation
and historic preservation law, in relation to providing a credit
against income tax for the rehabilitation of historic homes or for the
purchase of rehabilitated historic homes in certain instances (Part
X); to amend the tax law, in relation to providing a tax credit for
real property taxes on land covered by certain conservation easements
(Part Y); to amend the tax law and chapter 285 of the laws of 2005
amending the tax law relating to exempting certain clothing and foot-
wear sales and uses from local sales and compensating use taxes, in
relation to replacing the year-round state and local sales and compen-
sating use tax clothing and footwear exemptions with two annual weekly
exemption periods and modifying such local exemptions for certain
localities, to repeal subdivision (k) of section 1210 of the tax law
relating to the authority of a city of a million or more to elect
weekly exemption periods, to repeal section 1 of part A of chapter 101
of the laws of 2004 relating to the suspension and the effectiveness
S. 6460 3 A. 9560
of exemptions of certain clothing and footwear from sales and compen-
sating use taxes imposed by or pursuant to the authority of article 28
or 29 of the tax law, and to repeal part J of chapter 61 of the laws
of 2005 amending the tax law and other laws relating to implementing
the state fiscal plan for the 2005-2006 state fiscal year (Part Z); to
amend chapter 61 of the laws of 2005, amending the tax law and other
laws relating to implementing the state fiscal plan for the 2005-2006
state fiscal year, in relation to the effectiveness of filing fees for
certain limited liability companies and limited liability partnerships
(Part AA); to amend chapter 60 of the laws of 2004, amending the tax
law relating to the fixed dollar minimum tax, in relation to extending
the fixed dollar minimum tax for a taxpayer based on the taxpayer's
gross payroll (Part BB); 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 CC); to amend chapter 218 of the
laws of 2004, amending the tax law relating to an exemption from the
tax on admission charges with respect to certain places of amusement,
in relation to making such law permanent (Part DD); to amend the tax
law and to amend chapter 62 of the laws of 2003 amending the vehicle
and traffic law and other laws relating to increasing certain motor
vehicle transaction fees, in relation to the distribution of moneys
collected from the taxes imposed by sections 183 and 184 of such law
(Part EE); to amend the tax law, in relation to certification of
registration to collect sales and compensating use taxes by certain
contractors, affiliates and subcontractors (Part FF); to amend the tax
law, in relation to video lottery gaming (Part GG); to amend the aban-
doned property law, in relation to uncashed travelers checks, money
orders and negotiable instruments (Part HH); to amend the tax law, in
relation to providing tax-exempt cigarettes for export out of state
from qualified Indian reservations; and to amend chapter 61 of the
laws of 2005 amending the tax law and other laws relating to imple-
menting the state fiscal plan for the 2005-2006 state fiscal year, in
relation to postponing the effective date of certain provisions of
such chapter relating to taxes on cigarettes, motor fuel, and Diesel
motor fuel purchases on qualified Indian reservations, and providing
additional amendments related to the enactment of such provisions
(Part II); to amend part Z of chapter 61 of the laws of 2005, relating
to authorizing compensation to the state for any reimbursements, over-
payments, adjustments or other modifications made to a county or the
city of New York, in relation to amounts necessary for any changes in
the state and city cigarette tax rates (Part JJ); 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 to amend the tax law, in relation to the lottery game of Quick
Draw (Part KK); to amend chapter 60 of the laws of 2004, amending the
tax law relating to the empire state film credit, in relation to
making permanent such credit and to increasing the annual aggregate
amount of such credit available (Part LL); to amend the civil practice
law and rules, in relation to the undertaking required of participat-
ing and non-participating manufacturers of the tobacco product master
settlement agreement or an affiliate of such a participating or non-
participating manufacturer to stay enforcement of a judgment during
appeal (Part MM); to amend the tax law in relation to the determi-
nation of entire net income of corporations under articles 9-A, 32 and
33 of the tax law (Part NN); to amend the state finance law and the
tax law, in relation to bringing the abandoned property fund on budget
S. 6460 4 A. 9560
in the joint custody of the comptroller and the commissioner of taxa-
tion and finance and to increase reporting requirements (Part OO); to
amend the tax law, in relation to reforming the tobacco products and
cigarette taxes to remedy various administrative, compliance and
enforcement problems (Part PP); to amend the tax law, in relation to
the method used by a nonresident and part-year resident to report New
York source income derived from stock option grants, stock appreci-
ation rights and restricted stock (Part QQ); to amend the tax law, in
relation to certain tax surcharges and in relation to the distribution
of certain revenues from the taxes imposed under articles nine-A and
thirty-two thereof (Part RR); to amend the tax law, in relation to
increasing the minimum allowable price for the sale of cigarettes to
wholesale dealers and retail dealers under the cigarette marketing
standards act (Part SS); and to amend chapter 714 of the laws of 2004,
amending the tax law relating to limiting the credit of tax overpay-
ments to the office of temporary and disability assistance for certain
taxpayers, in relation to permanently limiting the credit of tax over-
payments to the office of temporary and disability assistance for
certain taxpayers (Part TT)
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 2006-2007
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through TT. 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 a reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. The opening paragraph of subsection (d) of section 601 of the
14 tax law, as amended by section 1 of part R of chapter 63 of the laws of
15 2003, is amended to read as follows:
16 For taxable years beginning after nineteen hundred ninety and before
17 two thousand six , there is hereby imposed a supplemental tax in addition
18 to the tax imposed under subsections (a), (b) and (c) of this section
19 for the purpose of recapturing the benefit of the tax tables contained
20 in such subsections or section six hundred ninety-nine of this article,
21 as the case may be. The supplemental tax shall be an amount equal to the
22 sum of the tax table benefits in paragraphs one, two and three of this
23 subsection multiplied by their respective fractions in such paragraphs
24 provided, however, that paragraph two of this subsection shall not apply
25 to taxpayers that are not subject to the second highest rate of tax.
26 § 2. Section 601 of the tax law is amended by adding two new
27 subsections (d-1) and (d-2) to read as follows:
28 (d-1) Tax table benefit recapture. For taxable years beginning in two
29 thousand six, there is hereby imposed a supplemental tax in addition to
30 the tax imposed under subsections (a), (b) and (c) of this section for
S. 6460 5 A. 9560
1 the purpose of recapturing the benefit of the tax tables contained in
2 such subsections or section six hundred ninety-nine of this article, as
3 the case may be. The supplemental tax shall be an amount equal to the
4 tax table benefit multiplied by a fraction.
5 (1) Resident married individuals filing joint returns and resident
6 surviving spouses. (A) The tax table benefit is the difference between
7 (i) the amount of taxable income set forth in the tax table in
8 subsection (a) of this section, or in section six hundred ninety-nine of
9 this article, as the case may be, not subject to the highest rate of tax
10 for the taxable year multiplied by such rate and (ii) the highest dollar
11 denominated tax set forth in the tax table applicable to the taxable
12 year in subsection (a) of this section or section six hundred ninety-
13 nine of this article, as the case may be.
14 (B) The fraction is computed as follows: the numerator is the lesser
15 of fifty thousand dollars or the excess of New York adjusted gross
16 income for the taxable year over one hundred fifty thousand dollars and
17 the denominator is fifty thousand dollars.
18 (2) Resident heads of households. (A) The tax table benefit is the
19 difference between (i) the amount of taxable income set forth in the tax
20 table in subsection (b) of this section, or in section six hundred nine-
21 ty-nine of this article, as the case may be, not subject to the highest
22 rate of tax for the taxable year multiplied by such rate and (ii) the
23 highest dollar denominated tax set forth in the tax table applicable to
24 the taxable year in subsection (b) of this section or section six
25 hundred ninety-nine of this article, as the case may be.
26 (B) The fraction is computed as follows: the numerator is the lesser
27 of fifty thousand dollars or the excess of New York adjusted gross
28 income for the taxable year over one hundred thousand dollars and the
29 denominator is fifty thousand dollars.
30 (3) Resident unmarried individuals, resident married individuals
31 filing separate returns and resident estates and trusts. (A) The tax
32 table benefit is the difference between (i) the amount of taxable income
33 set forth in the tax table in subsection (c) of this section, or in
34 section six hundred ninety-nine of this article, as the case may be, not
35 subject to the highest rate of tax for the taxable year multiplied by
36 such rate and (ii) the highest dollar denominated tax set forth in the
37 tax table applicable to the taxable year in subsection (c) of this
38 section or section six hundred ninety-nine of this article, as the case
39 may be.
40 (B) The fraction is computed as follows: the numerator is the lesser
41 of fifty thousand dollars or the excess of New York adjusted gross
42 income for the taxable year over one hundred thousand dollars and the
43 denominator is fifty thousand dollars.
44 (d-2) Tax table benefit recapture. For taxable years beginning after
45 two thousand six, there is hereby imposed a supplemental tax in addition
46 to the tax imposed under subsections (a), (b) and (c) of this section
47 for the purpose of recapturing the benefit of the tax tables contained
48 in such subsections or section six hundred ninety-nine of this article,
49 as the case may be. The supplemental tax shall be an amount equal to the
50 tax table benefit multiplied by a fraction.
51 (1) Resident married individuals filing joint returns and resident
52 surviving spouses. (A) The tax table benefit is the difference between
53 (i) the amount of taxable income set forth in the tax table in
54 subsection (a) of this section, or in section six hundred ninety-nine of
55 this article, as the case may be, not subject to the highest rate of tax
56 for the taxable year multiplied by such rate and (ii) the highest dollar
S. 6460 6 A. 9560
1 denominated tax set forth in the tax table applicable to the taxable
2 year in subsection (a) of this section or section six hundred ninety-
3 nine of this article, as the case may be.
4 (B) The fraction is computed as follows: the numerator is the lesser
5 of one hundred thousand dollars or the excess of New York adjusted gross
6 income for the taxable year over two hundred forty thousand dollars and
7 the denominator is one hundred thousand dollars.
8 (2) Resident heads of households. (A) The tax table benefit is the
9 difference between (i) the amount of taxable income set forth in the tax
10 table in subsection (b) of this section, or in section six hundred nine-
11 ty-nine of this article, as the case may be, not subject to the highest
12 rate of tax for the taxable year multiplied by such rate and (ii) the
13 highest dollar denominated tax set forth in the tax table applicable to
14 the taxable year in subsection (b) of this section or section six
15 hundred ninety-nine of this article, as the case may be.
16 (B) The fraction is computed as follows: the numerator is the lesser
17 of fifty thousand dollars or the excess of New York adjusted gross
18 income for the taxable year over one hundred twenty thousand dollars and
19 the denominator is fifty thousand dollars.
20 (3) Resident unmarried individuals, resident married individuals
21 filing separate returns and resident estates and trusts. (A) The tax
22 table benefit is the difference between (i) the amount of taxable income
23 set forth in the tax table in subsection (c) of this section, or in
24 section six hundred ninety-nine of this article, as the case may be, not
25 subject to the highest rate of tax for the taxable year multiplied by
26 such rate and (ii) the highest dollar denominated tax set forth in the
27 tax table applicable to the taxable year in subsection (c) of this
28 section or section six hundred ninety-nine of this article, as the case
29 may be.
30 (B) The fraction is computed as follows: the numerator is the lesser
31 of fifty thousand dollars or the excess of New York adjusted gross
32 income for the taxable year over one hundred twenty thousand dollars and
33 the denominator is fifty thousand dollars.
34 § 3. Subsections (b) and (d) of section 614 of the tax law, subsection
35 (b) as amended by section 1 of part P of chapter 63 of the laws of 2000
36 and subsection (d) as amended by chapter 170 of the laws of 1994, are
37 amended to read as follows:
38 (b) Husband and wife filing jointly and surviving spouse. For taxable
39 years beginning after two thousand [two] five , the New York standard
40 deduction of a husband and wife whose New York taxable income is deter-
41 mined jointly or a surviving spouse shall be fifteen thousand dollars;
42 for taxable years beginning after two thousand two and before two thou-
43 sand six, such standard deduction shall be fourteen thousand six hundred
44 dollars; for taxable years beginning in two thousand two, such standard
45 deduction shall be fourteen thousand two hundred dollars; for taxable
46 years beginning in two thousand one, such standard deduction shall be
47 thirteen thousand four hundred dollars; for taxable years beginning
48 after nineteen hundred ninety-six and before two thousand one, such
49 standard deduction shall be thirteen thousand dollars; for taxable years
50 beginning in nineteen hundred ninety-six, such standard deduction shall
51 be twelve thousand three hundred fifty dollars; for taxable years begin-
52 ning in nineteen hundred ninety-five, such standard deduction shall be
53 ten thousand eight hundred dollars; and for taxable years beginning
54 after nineteen hundred eighty-nine and before nineteen hundred ninety-
55 five, such standard deduction shall be nine thousand five hundred
56 dollars.
S. 6460 7 A. 9560
1 (d) Married individuals filing separately. For taxable years beginning
2 after [nineteen hundred ninety-six] two thousand five , the New York
3 standard deduction of a married individual filing a separate return
4 shall be seven thousand five hundred dollars; for taxable years begin-
5 ning after nineteen hundred ninety-six and before two thousand six, such
6 standard deduction shall be six thousand five hundred dollars; for taxa-
7 ble years beginning in nineteen hundred ninety-six, such standard
8 deduction shall be six thousand one hundred seventy-five dollars; for
9 taxable years beginning in nineteen hundred ninety-five, such standard
10 deduction shall be five thousand four hundred dollars; and for taxable
11 years beginning after nineteen hundred eighty-nine and before nineteen
12 hundred ninety-five, such standard deduction shall be four thousand
13 seven hundred fifty dollars.
14 § 4. This act shall take effect immediately.
15 PART B
16 Section 1. Subsections (a), (b) and (c) of section 601 of the tax law,
17 as amended by section 1 of part Y3 of chapter 62 of the laws of 2003,
18 are amended to read as follows:
19 (a) Resident married individuals filing joint returns and resident
20 surviving spouses. There is hereby imposed for each taxable year on the
21 New York taxable income of every resident married individual who makes a
22 single return jointly with his spouse under subsection (b) of section
23 six hundred fifty-one and on the New York taxable income of every resi-
24 dent surviving spouse a tax determined in accordance with the following
25 tables:
26 (1) For taxable years beginning after two thousand six:
27 If the New York taxable income is: The tax is:
28 Not over $16,000 4% of the New York taxable
29 income
30 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
31 $16,000
32 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
33 $22,000
34 Over $26,000 but not over $60,000 $1,120 plus 5.9% of excess over
35 $26,000
36 Over $60,000 $3,126 plus 6.75% of excess over
37 $60,000
38 (2) For taxable years beginning [after two thousand five] in two thou-
39 sand six :
40 If the New York taxable income is: The tax is:
41 Not over $16,000 4% of the New York taxable
42 income
43 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
44 $16,000
45 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
46 $22,000
47 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
48 $26,000
49 Over $40,000 $1,946 plus 6.85% of excess over
50 $40,000
S. 6460 8 A. 9560
1 [(2)] (3) For taxable years beginning in two thousand five:
2 If the New York taxable income is: The tax is:
3 Not over $16,000 4% of the New York taxable
4 income
5 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
6 $16,000
7 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
8 $22,000
9 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
10 $26,000
11 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
12 $40,000
13 Over $150,000 but not over $500,000 $9,481 plus 7.25% of excess over
14 $150,000
15 Over $500,000 $34,856 plus 7.7% of excess over
16 $500,000
17 [(3)] (4) For taxable years beginning in two thousand four:
18 If the New York taxable income is: The tax is:
19 Not over $16,000 4% of the New York taxable
20 income
21 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
22 $16,000
23 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
24 $22,000
25 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
26 $26,000
27 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
28 $40,000
29 Over $150,000 but not over $500,000 $9,481 plus 7.375% of excess over
30 $150,000
31 Over $500,000 $35,294 plus 7.7% of excess over
32 $500,000
33 [(4)] (5) For taxable years beginning in two thousand three:
34 If the New York taxable income is: The tax is:
35 Not over $16,000 4% of the New York taxable
36 income
37 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
38 $16,000
39 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
40 $22,000
41 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
42 $26,000
43 Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
44 $40,000
45 Over $150,000 but not over $500,000 $9,481 plus 7.5% of excess over
46 $150,000
47 Over $500,000 $35,731 plus 7.7% of excess over
48 $500,000
49 [(5)] (6) For taxable years beginning after nineteen hundred ninety-
50 six and before two thousand three:
S. 6460 9 A. 9560
1 If the New York taxable income is: The tax is:
2 Not over $16,000 4% of the New York taxable
3 income
4 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
5 $16,000
6 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
7 $22,000
8 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
9 $26,000
10 Over $40,000 $1,946 plus 6.85% of excess over
11 $40,000
12 [(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
13 If the New York taxable income is: The tax is:
14 Not over $11,000 4% of the New York taxable
15 income
16 Over $11,000 but not over $16,000 $440 plus 5% of excess over
17 $11,000
18 Over $16,000 but not over $22,000 $690 plus 6% of excess over
19 $16,000
20 Over $22,000 $1,050 plus 7% of excess over
21 $22,000
22 [(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
23 If the New York taxable income is: The tax is:
24 Not over $13,000 4.55% of the New York taxable
25 income
26 Over $13,000 but not over $19,000 $592 plus 5.55% of excess over
27 $13,000
28 Over $19,000 but not over $25,000 $925 plus 6.55% of excess over
29 $19,000
30 Over $25,000 $1,318 plus 7.5% of excess over
31 $25,000
32 [(8)] (9) For taxable years beginning after nineteen hundred eighty-
33 nine and before nineteen hundred ninety-five:
34 If the New York taxable income is: The tax is:
35 Not over $11,000 4% of the New York taxable
36 income
37 Over $11,000 but not over $16,000 $440 plus 5% of excess over
38 $11,000
39 Over $16,000 but not over $22,000 $690 plus 6% of excess over
40 $16,000
41 Over $22,000 but not over $26,000 $1,050 plus 7% of excess over
42 $22,000
43 Over $26,000 $1,330 plus 7.875% of excess over
44 $26,000
45 (b) Resident heads of households. There is hereby imposed for each
46 taxable year on the New York taxable income of every resident head of a
47 household a tax determined in accordance with the following tables:
48 (1) For taxable years beginning after two thousand six:
S. 6460 10 A. 9560
1 If the New York taxable income is: The tax is:
2 Not over $11,000 4% of the New York taxable
3 income
4 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
5 $11,000
6 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
7 $15,000
8 Over $17,000 but not over $45,000 $725 plus 5.9% of excess over
9 $17,000
10 Over $45,000 $2,377 plus 6.75% of excess over
11 $45,000
12 (2) For taxable years beginning [after two thousand five] in two thou-
13 sand six :
14 If the New York taxable income is: The tax is:
15 Not over $11,000 4% of the New York taxable
16 income
17 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
18 $11,000
19 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
20 $15,000
21 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
22 $17,000
23 Over $30,000 $1,492 plus 6.85% of excess over
24 $30,000
25 [(2)] (3) For taxable years beginning in two thousand five:
26 If the New York taxable income is: The tax is:
27 Not over $11,000 4% of the New York taxable
28 income
29 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
30 $11,000
31 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
32 $15,000
33 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
34 $17,000
35 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
36 $30,000
37 Over $125,000 but not over $500,000 $8,000 plus 7.25% of excess over
38 $125,000
39 Over $500,000 $35,187 plus 7.7% of excess over
40 $500,000
41 [(3)] (4) For taxable years beginning in two thousand four:
42 If the New York taxable income is: The tax is:
43 Not over $11,000 4% of the New York taxable
44 income
45 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
46 $11,000
47 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
48 $15,000
49 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
S. 6460 11 A. 9560
1 $17,000
2 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
3 $30,000
4 Over $125,000 but not over $500,000 $8,000 plus 7.375% of excess over
5 $125,000
6 Over $500,000 $35,656 plus 7.7% of excess over
7 $500,000
8 [(4)] (5) For taxable years beginning in two thousand three:
9 If the New York taxable income is: The tax is:
10 Not over $11,000 4% of the New York taxable
11 income
12 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
13 $11,000
14 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
15 $15,000
16 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
17 $17,000
18 Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
19 $30,000
20 Over $125,000 but not over $500,000 $8,000 plus 7.5% of excess over
21 $125,000
22 Over $500,000 $36,125 plus 7.7% of excess over
23 $500,000
24 [(5)] (6) For taxable years beginning after nineteen hundred ninety-
25 six and before two thousand three:
26 If the New York taxable income is: The tax is:
27 Not over $11,000 4% of the New York taxable
28 income
29 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
30 $11,000
31 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
32 $15,000
33 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
34 $17,000
35 Over $30,000 $1,492 plus 6.85% of excess over
36 $30,000
37 [(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
38 If the New York taxable income is: The tax is:
39 Not over $7,500 4% of the New York taxable
40 income
41 Over $7,500 but not over $11,000 $300 plus 5% of excess over
42 $7,500
43 Over $11,000 but not over $15,000 $475 plus 6% of excess over
44 $11,000
45 Over $15,000 $ 715 plus 7% of excess over
46 $15,000
47 [(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
S. 6460 12 A. 9560
1 If the New York taxable income is: The tax is:
2 Not over $9,000 4.55% of the New York taxable
3 income
4 Over $9,000 but not over $14,000 $410 plus 5.55% of excess over
5 $9,000
6 Over $14,000 but not over $19,000 $687 plus 6.55% of excess over
7 $14,000
8 Over $19,000 $1,015 plus 7.5% of excess over
9 $19,000
10 [(8)] (9) For taxable years beginning after nineteen hundred eighty-
11 nine and before nineteen hundred ninety-five:
12 If the New York taxable income is: The tax is:
13 Not over $7,500 4% of the New York taxable
14 income
15 Over $7,500 but not over $11,000 $300 plus 5% of excess over
16 $7,500
17 Over $11,000 but not over $15,000 $475 plus 6% of excess over
18 $11,000
19 Over $15,000 but not over $17,000 $715 plus 7% of excess over
20 $15,000
21 Over $17,000 $855 plus 7.875% of excess over
22 $17,000
23 (c) Resident unmarried individuals, resident married individuals
24 filing separate returns and resident estates and trusts. There is hereby
25 imposed for each taxable year on the New York taxable income of every
26 resident individual who is not a married individual who makes a single
27 return jointly with his spouse under subsection (b) of section six
28 hundred fifty-one or a resident head of a household or a resident
29 surviving spouse, and on the New York taxable income of every resident
30 estate and trust a tax determined in accordance with the following
31 tables:
32 (1) For taxable years beginning after two thousand six:
33 If the New York taxable income is: The tax is:
34 Not over $8,000 4% of the New York taxable
35 income
36 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
37 $8,000
38 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
39 $11,000
40 Over $13,000 but not over $30,000 $560 plus 5.9% of excess over
41 $13,000
42 Over $30,000 $1,563 plus 6.75% of excess over
43 $30,000
44 (2) For taxable years beginning [after two thousand five] in two thou-
45 sand six :
46 If the New York taxable income is: The tax is:
47 Not over $8,000 4% of the New York taxable
48 income
49 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
S. 6460 13 A. 9560
1 $8,000
2 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
3 $11,000
4 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
5 $13,000
6 Over $20,000 $973 plus 6.85% of excess over
7 $20,000
8 [(2)] (3) For taxable years beginning in two thousand five:
9 If the New York taxable income is: The tax is:
10 Not over $8,000 4% of the New York taxable
11 income
12 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
13 $8,000
14 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
15 $11,000
16 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
17 $13,000
18 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
19 $20,000
20 Over $100,000 but not over $500,000 $6,453 plus 7.25% of excess over
21 $100,000
22 Over $500,000 $35,453 plus 7.7% of excess over
23 $500,000
24 [(3)] (4) For taxable years beginning in two thousand four:
25 If the New York taxable income is: The tax is:
26 Not over $8,000 4% of the New York taxable
27 income
28 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
29 $8,000
30 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
31 $11,000
32 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
33 $13,000
34 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
35 $20,000
36 Over $100,000 but not over $500,000 $6,453 plus 7.375% of excess over
37 $100,000
38 Over $500,000 $35,953 plus 7.7% of excess over
39 $500,000
40 [(4)] (5) For taxable years beginning in two thousand three:
41 If the New York taxable income is: The tax is:
42 Not over $8,000 4% of the New York taxable
43 income
44 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
45 $8,000
46 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
47 $11,000
48 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
49 $13,000
50 Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
S. 6460 14 A. 9560
1 $20,000
2 Over $100,000 but not over $500,000 $6,453 plus 7.5% of excess over
3 $100,000
4 Over $500,000 $36,453 plus 7.7% of excess over
5 $500,000
6 [(5)] (6) For taxable years beginning after nineteen hundred ninety-
7 six and before two thousand three:
8 If the New York taxable income is: The tax is:
9 Not over $8,000 4% of the New York taxable
10 income
11 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
12 $8,000
13 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
14 $11,000
15 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
16 $13,000
17 Over $20,000 $973 plus 6.85% of excess over
18 $20,000
19 [(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
20 If the New York taxable income is: The tax is:
21 Not over $5,500 4% of the New York taxable
22 income
23 Over $5,500 but not over $8,000 $220 plus 5% of excess over
24 $5,500
25 Over $8,000 but not over $11,000 $345 plus 6% of excess over
26 $8,000
27 Over $11,000 $525 plus 7% of excess over
28 $11,000
29 [(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
30 If the New York taxable income is: The tax is:
31 Not over $6,500 4.55% of the New York taxable
32 income
33 Over $6,500 but not over $9,500 $296 plus 5.55% of excess over
34 $6,500
35 Over $9,500 but not over $12,500 $462 plus 6.55% of excess over
36 $9,500
37 Over $12,500 $659 plus 7.5% of excess over
38 $12,500
39 [(8)] (9) For taxable years beginning after nineteen hundred eighty-
40 nine and before nineteen hundred ninety-five:
41 If the New York taxable
42 income is: The tax is:
43 Not over $5,500 4% of the New York taxable
44 income
45 Over $5,500 but not over $8,000 $220 plus 5% of excess over
46 $5,500
47 Over $8,000 but not over $11,000 $345 plus 6% of excess over
S. 6460 15 A. 9560
1 $8,000
2 Over $11,000 but not over $13,000 $525 plus 7% of excess over
3 $11,000
4 Over $13,000 $665 plus 7.875% of excess over
5 $13,000
6 § 2. This act shall take effect immediately.
7 PART C
8 Section 1. Paragraph 8-b of subsection (c) of section 612 of the tax
9 law, as added by chapter 418 of the laws of 2004, is amended to read as
10 follows:
11 (8-b) Income received by an individual who is a member of the New York
12 state organized militia, as such term is defined in subdivision one of
13 section two of the military law, as compensation for performing active
14 service [of the state] within the state pursuant to either (i) state
15 active duty orders issued in accordance with subdivision one of section
16 six of the military law or (ii) active service of the United States
17 pursuant to federal active duty orders, for service other than training,
18 issued in accordance with title 10 of the United States code .
19 § 2. This act shall take effect immediately and shall apply to taxable
20 years beginning on or after January 1, 2004.
21 PART D
22 Section 1. Section 606 of the tax law is amended by adding a new
23 subsection (jj) to read as follows:
24 (jj) Credit for qualified elementary and secondary education expenses.
25 (1) Definitions. For purposes of this subsection, the following defi-
26 nitions shall apply.
27 (A) "Eligible dependent" shall mean any dependent of the taxpayer with
28 respect to whom the taxpayer is allowed an exemption under section six
29 hundred sixteen of this article for the taxable year.
30 (B) "Qualified elementary or secondary educational institution" shall
31 mean:
32 (i) any elementary or secondary school of a public school district
33 located in this state; and
34 (ii) any non-profit elementary or secondary school in this state which
35 (I) provides instruction in accordance with section thirty-two hundred
36 four of the education law, (II) is entitled to total exemption from
37 federal taxation under section five hundred one (a) and five hundred one
38 (c)(3) of the federal internal revenue code, and (III) adheres to the
39 provisions of Title VI of the Civil Rights Act of nineteen hundred
40 sixty-four, 78 Stat. 252, 42 USC Section 2000d et seq., as it may be
41 amended from time to time. The commissioner of education shall furnish
42 to the department by September first of each year, a certified list of
43 non-public schools which comply with item (I) of this clause for the
44 preceding calendar year and shall provide such other assistance with
45 respect to whether non-public schools should come within such item (I)
46 as the department may require.
47 (C) "Qualified educational expenses" shall mean the following items:
48 (i) tuition paid to a qualified elementary or secondary educational
49 institution for an eligible dependent.
50 (ii) Fees for instruction of an eligible dependent by an instructor
51 who is not a lineal ancestor or sibling of the dependent for instruction
S. 6460 16 A. 9560
1 outside the regular school day or school year, including tutoring, in
2 grade or age appropriate curricula that supplement core curricula and
3 instruction available during the school year, that assists such depend-
4 ent in improving knowledge of core curriculum areas and that do not
5 include the teaching of religious tenets, doctrines or worship.
6 Provided that allowable college tuition expenses as defined in
7 subsection (t) of this section are not qualified educational expenses.
8 (2) (A) A resident individual shall be allowed a credit against the
9 tax imposed by this article for qualified educational expenses paid by
10 the taxpayer during the taxable year if the eligible dependent resides
11 in a school district that, in the prior school year, has one or more
12 schools in need of improvement or corrective action or restructuring
13 status under the provisions of title 1 part A of the federal No Child
14 Left Behind Act of 2001 (20 U.S.C. 6301). However, the amount of the
15 credit shall not exceed the limitations set forth in subparagraphs (B)
16 and (C) of this paragraph. If the amount of such credit exceeds the
17 taxpayer's tax liability for the taxable year, the excess shall be
18 treated as an overpayment to be credited or refunded as provided in
19 section six hundred eighty-six of this article, provided no interest
20 shall be paid thereon.
21 (B) In no event shall the credit allowed under this subsection exceed
22 the limitation set forth in this subparagraph.
23 (i) If the taxpayer's federal adjusted gross income for the taxable
24 year is less than seventy-five thousand dollars, the limitation shall be
25 five hundred dollars per eligible dependent.
26 (ii) If the taxpayer's federal adjusted gross income for the taxable
27 year is equal to or greater than seventy-five thousand dollars but less
28 than eighty thousand dollars, the limitation shall be three hundred
29 seventy-five dollars per eligible dependent.
30 (iii) If the taxpayer's federal adjusted gross income for the taxable
31 year is equal to or greater than eighty thousand dollars but less than
32 eighty-five thousand dollars, the limitation shall be two hundred fifty
33 dollars per eligible dependent.
34 (iv) If the taxpayer's federal adjusted gross income for the taxable
35 year is equal to or greater than eighty-five thousand dollars but less
36 than ninety thousand dollars, the limitation shall be one hundred twen-
37 ty-five dollars per eligible dependent.
38 (v) If the taxpayer's federal adjusted gross income for the taxable
39 year is equal to or greater than ninety thousand dollars, the taxpayer
40 shall not be allowed a credit under this subsection.
41 (vi) In the case of a husband and wife, for purposes of this limita-
42 tion the federal adjusted gross income shall be the aggregate of their
43 federal adjusted gross incomes for the taxable year irrespective of
44 whether joint or separate New York income tax returns are filed.
45 (C) For the two thousand six taxable year, the credit allowed under
46 this subsection shall be equal to twenty-five percent of the amount
47 determined under subparagraph (A) of this paragraph as limited by
48 subparagraph (B) of this paragraph. For the two thousand seven taxable
49 year, the credit allowed under this subsection shall be equal to fifty
50 percent of the amount determined under subparagraph (A) of this para-
51 graph as limited by subparagraph (B) of this paragraph. For the two
52 thousand eight taxable year, the credit allowed under this subsection
53 shall be equal to seventy-five percent of the amount determined under
54 subparagraph (A) of this paragraph as limited by subparagraph (B) of
55 this paragraph.
S. 6460 17 A. 9560
1 § 2. This act shall take effect immediately and shall apply to taxable
2 years beginning on or after January 1, 2006.
3 PART E
4 Section 1. Subsection (a) of section 951 of the tax law, as amended by
5 section 1 of part A of chapter 407 of the laws of 1999, is amended to
6 read as follows:
7 (a) Dates. For purposes of this article, any reference to the internal
8 revenue code means the United States Internal Revenue Code of 1986, with
9 all amendments enacted on or before July twenty-second, nineteen hundred
10 ninety-eight, and, unless specifically provided otherwise in this arti-
11 cle, any reference to December thirty-first, nineteen hundred seventy-
12 six or January first, nineteen hundred seventy-seven contained in the
13 provisions of such code which are applicable to the determination of the
14 tax imposed by this article shall be read as a reference to June thirti-
15 eth, nineteen hundred seventy-eight or July first, nineteen hundred
16 seventy-eight, respectively. Notwithstanding the foregoing, the unified
17 credit against the estate tax provided in section two thousand ten of
18 the internal revenue code shall, for purposes of this article, be the
19 amount allowed by such section [under the applicable federal law in
20 effect on the decedent's date of death. Provided, however, the amount of
21 such credit allowable for purposes of this article shall not exceed the
22 amount allowable as if the federal unified credit did not exceed the tax
23 due under section two thousand one of the internal revenue code on a
24 federal taxable estate of one million dollars] with all amendments
25 enacted on or before June seventh, two thousand one .
26 § 2. Section 952 of the tax law is amended by adding a new subsection
27 (c) to read as follows:
28 (c) Notwithstanding any other provision of this article to the contra-
29 ry, for estates of decedents dying on or after January first, two thou-
30 sand ten, the tax imposed by this section shall be zero.
31 § 3. Subsection (a) of section 971 of the tax law, as added by section
32 17 of part A of chapter 389 of the laws of 1997, is amended to read as
33 follows:
34 (a) Returns by executor. (1) Residents. In the case of the estate of
35 every individual dying on or after February first, two thousand, but
36 before January first, two thousand ten, who at his or her death was a
37 resident of New York state, if his or her executor is required to file a
38 return with respect to the federal estate tax [(determined as if the
39 limitation contained in subsection (a) of section nine hundred fifty-one
40 of this article were applicable in determining whether such executor is
41 required to file such federal return)], the executor shall make a return
42 with respect to the estate tax imposed by section nine hundred fifty-two
43 of this article.
44 (2) Nonresidents. In the case of the estate of every individual dying
45 before January first, two thousand ten, who at his or her death was not
46 a resident of New York state, if his or her executor is required to file
47 a return with respect to the federal estate tax [(determined as if the
48 limitation contained in subsection (a) of section nine hundred fifty-one
49 of this article were applicable in determining whether such executor is
50 required to file such federal return)] and if such individual's federal
51 gross estate includes real or tangible personal property having an actu-
52 al situs in New York state, the executor shall make a return with
53 respect to the estate tax imposed by section nine hundred sixty of this
54 article.
S. 6460 18 A. 9560
1 § 4. Section 1022 of the tax law, as added by chapter 190 of the laws
2 of 1990, is amended to read as follows:
3 § 1022. Imposition of tax. A tax is hereby imposed upon every genera-
4 tion-skipping transfer which includes New York property in an amount
5 computed by multiplying the maximum amount allowable as a credit for
6 state generation-skipping transfer taxes under section two thousand six
7 hundred four of the internal revenue code by a fraction, the numerator
8 of which is the value of the New York property included in the genera-
9 tion-skipping transfer and the denominator of which is the value of all
10 the property included in the generation-skipping transfer. The person
11 liable for payment of the federal generation-skipping transfer tax shall
12 be liable for the tax imposed by this section. Notwithstanding any
13 other provision of this article to the contrary, for generation-skipping
14 transfers made on or after January first, two thousand ten, the tax
15 imposed by this section shall be zero.
16 § 5. This act shall take effect January 1, 2007, and sections one
17 through three of this act shall apply to estates of decedents dying on
18 or after such date.
19 PART F
20 Section 1. Section 957 of the general municipal law is amended by adding
21 a new subdivision (r) to read as follows:
22 (r) "Center of excellence empire zone" shall mean an empire zone
23 designated pursuant to subdivision (h) of section nine hundred fifty-
24 eight of this article. Such empire zone shall be exempt from the
25 requirements of clause (iii) of subparagraph (C) of paragraph (i) of
26 subdivision (a) of section nine hundred fifty-eight, sections nine
27 hundred sixty-one, nine hundred sixty-two and nine hundred sixty-three
28 of this article.
29 § 2. Subdivision (g) of section 958 of the general municipal law, as
30 added by section 5 of part A of chapter 63 of the laws of 2005, is
31 amended to read as follows:
32 (g) Notwithstanding [any other provision] subdivisions (a) through (f)
33 of this section, after March thirty-first, two thousand five, a munici-
34 pality shall demonstrate in an application for designation as an empire
35 zone, that there is no viable alternative area or areas that has or have
36 existing public sewer or water infrastructure available other than the
37 proposed zone.
38 § 3. Section 958 of the general municipal law is amended by adding a
39 new subdivision (h) to read as follows:
40 (h) Notwithstanding any other provision of this section, the commis-
41 sioner may designate up to five one square mile center of excellence
42 empire zones anywhere in the state, provided that the businesses located
43 therein have a substantial relationship with a center of excellence, as
44 defined pursuant to rules and regulations developed by the commissioner.
45 § 4. Section 959 of the general municipal law is amended by adding two
46 new subdivisions (w) and (x) to read as follows:
47 (w) Notwithstanding any other provision of this section, for purposes
48 of empire zones designated pursuant to subdivision (h) of section nine
49 hundred fifty-eight of this article, serve as the sole certification
50 officer for businesses seeking certification within such zone and shall
51 promulgate regulations governing (i) criteria of eligibility for desig-
52 nation of a centers of excellence empire zone, (ii) the application
53 process, and (iii) the certification by the commissioner as to the
54 eligibility of business enterprises for benefits referred to in section
S. 6460 19 A. 9560
1 nine hundred sixty-six of this article. A business so certified shall be
2 deemed to be eligible for such benefits as if such business were located
3 in an investment zone as defined in paragraph (i) of subdivision (d) of
4 section nine hundred fifty-seven of this article.
5 (x) Notwithstanding any other provision of this section, be deemed to
6 be the sole zone administrator of the centers of excellence empire zones
7 for the purposes of any administrative function including, but not
8 limited to, reporting.
9 § 5. The general municipal law is amended by adding a new section
10 959-b to read as follows:
11 § 959-b. Clean energy research and development enterprises. 1. For
12 purposes of this section, "clean energy research and development enter-
13 prise" shall mean any business primarily engaged in research, develop-
14 ment or manufacturing of renewable energy or energy efficiency technolo-
15 gies or products; provided, however, that an initial clean coal electric
16 generating facility capable of capturing carbon dioxide for sequestra-
17 tion or capable of being retrofitted to capture carbon dioxide for
18 sequestration shall constitute an eligible business for purposes of this
19 section.
20 2. The commissioner of economic development shall serve as the sole
21 certification officer for businesses seeking certification as a clean
22 energy research and development enterprise. The commissioner of economic
23 development, after consultation with the executive director of the New
24 York state energy research and development authority, shall promulgate
25 regulations governing (i) criteria of eligibility for designation of a
26 clean energy research and development enterprise, (ii) the application
27 process, and (iii) the certification by the commissioner of economic
28 development as to the eligibility of business enterprises for benefits
29 referred to in section nine hundred sixty-six of this article. A busi-
30 ness so certified shall be deemed to be eligible for such benefits as if
31 such business were located in an investment zone as defined in paragraph
32 (i) of subdivision (d) of section nine hundred fifty-seven of this arti-
33 cle.
34 3. Such enterprise shall be exempt from the requirements of clause
35 (iii) of subparagraph (C) of paragraph (i) of subdivision (a) of section
36 nine hundred fifty-eight, sections nine hundred sixty-one, nine hundred
37 sixty-two and nine hundred sixty-three of this article.
38 § 6. Paragraphs (ix), (x), (xi), (xii) and (xiii) of subdivision (b)
39 of section 960 of the general municipal law, paragraphs (ix), (x), (xi)
40 and (xii) as added by section 5 of part A of chapter 63 of the laws of
41 2005 and paragraph (xiii) as amended by chapter 161 of the laws of 2005,
42 are amended to read as follows:
43 (ix) In the period commencing nineteen years after the effective date
44 of this article, not more than [three] twelve additional empire zones,
45 [as determined pursuant to a memorandum of understanding to be executed
46 by the governor, the temporary president of the senate and the speaker
47 of the assembly,] each of which shall be designated from among the coun-
48 ties identified in subdivision (f) of section nine hundred fifty-eight
49 of this article.
50 (x) [In the period commencing twenty years after the effective date of
51 this article, not more than three additional empire zones, as determined
52 pursuant to a memorandum of understanding to be executed by the gover-
53 nor, the temporary president of the senate and the speaker of the assem-
54 bly, all of which shall be designated from among the counties identified
55 in subdivision (f) of section nine hundred fifty-eight of this article.
S. 6460 20 A. 9560
1 Provided, however, said designation does not include counties designated
2 pursuant to paragraph (ix) of this subdivision.
3 (xi) In the period commencing twenty-one years after the effective
4 date of this article, not more than three additional empire zones, as
5 determined pursuant to a memorandum of understanding to be executed by
6 the governor, the temporary president of the senate and the speaker of
7 the assembly, all of which shall be designated from among the counties
8 identified in subdivision (f) of section nine hundred fifty-eight of
9 this article. Provided, however, said designation does not include coun-
10 ties designated pursuant to paragraphs (ix) and (x) of this subdivision.
11 (xii) In the period commencing twenty-two years after the effective
12 date of this article, not more than three additional empire zones, as
13 determined pursuant to a memorandum of understanding to be executed by
14 the governor, the temporary president of the senate and the speaker of
15 the assembly, all of which shall be designated from among the counties
16 identified in subdivision (f) of section nine hundred fifty-eight of
17 this article. Provided, however, said designation does not include coun-
18 ties designated pursuant to paragraphs (ix), (x) and (xi) of this subdi-
19 vision.
20 (xiii)] Within six months after the effective date of this paragraph,
21 the Oneida-Herkimer empire zone may be designated as two separate two
22 square mile empire zones as designated pursuant to a memorandum of
23 understanding to be executed by the governor, the temporary president of
24 the senate and the speaker of the assembly.
25 § 7. Section 960 of the general municipal law is amended by adding a
26 new subdivision (f) to read as follows:
27 (f) Notwithstanding any other provision of this section, the commis-
28 sioner may designate empire zones pursuant to subdivision (h) of section
29 nine hundred fifty-eight of this article in consultation with the direc-
30 tor of budget and local officials.
31 § 8. Section 969 of the general municipal law is amended by adding a
32 new subdivision (f) to read as follows:
33 (f) Notwithstanding the provisions of this section, for any empire
34 zone acreage designated pursuant to subdivision (h) of section nine
35 hundred fifty-eight of this article, a request for revision of the boun-
36 daries of such a zone may be submitted by a certified business to the
37 commissioner, or the commissioner on his own initiative may revise, the
38 boundaries of such a zone.
39 (1) Any revision of any such empire zone shall be based upon a deter-
40 mination by the commissioner that a change in circumstances has occurred
41 since the establishment of the existing borders which makes revision of
42 such borders necessary or desirable.
43 (2) The commissioner shall affirm that such revision would not have
44 the effect of producing an empire zone which does not satisfy the crite-
45 ria of designation of a center of excellence empire zone established by
46 and pursuant to subdivision (h) of section nine hundred fifty-eight of
47 this article.
48 § 9. Section 14 of the tax law is amended by adding a new subdivision
49 (n) to read as follows:
50 (n) Clean energy research and development enterprises. In determining
51 tax benefits under this chapter for clean energy research and develop-
52 ment enterprises certified under article eighteen-B of the general
53 municipal law, references in this section and other sections in this
54 chapter relating to qualified empire zone enterprises and empire zone
55 benefits to "an empire zone", "the empire zone" and "the empire zones"
56 shall be read as references to "New York state", any tests or measure-
S. 6460 21 A. 9560
1 ments relating to employment for purposes of empire zone benefits under
2 this chapter shall be calculated with respect to employment within the
3 entire state, and references to "QEZES" shall be read as including
4 references to such clean energy research and development enterprises
5 that meet the employment test in this section. For purposes of the tax
6 reduction credit allowed under section sixteen of this article, for a
7 clean energy research and development enterprise, the zone allocation
8 factor shall be one hundred percent.
9 § 10. This act shall take effect immediately.
10 PART G
11 Section 1. Subparagraph 1 of paragraph (e) of subdivision 1 of section
12 210 of the tax law, as amended by section 1 of part P of chapter 407 of
13 the laws of 1999, is amended to read as follows:
14 (1) The amount prescribed by this paragraph for taxable years begin-
15 ning before January first, two thousand six shall be computed at the
16 rate of nine-tenths of a mill for each dollar of the portion of the
17 taxpayer's subsidiary capital allocated within the state as hereinafter
18 provided. For the taxable year beginning on or after January first, two
19 thousand six and before January first, two thousand seven the amount
20 prescribed by this paragraph shall be computed at the rate of six-tenths
21 of a mill for each dollar of the portion of the taxpayer's subsidiary
22 capital allocated within the state. For the taxable year beginning on or
23 after January first, two thousand seven and before January first, two
24 thousand eight the amount prescribed by this paragraph shall be computed
25 at the rate of three-tenths of a mill for each dollar of the portion of
26 the taxpayer's subsidiary capital allocated within the state. For taxa-
27 ble years beginning on or after January first, two thousand eight the
28 amount prescribed by this paragraph shall be computed at the rate of
29 zero mill for each dollar of the portion of the taxpayer's subsidiary
30 capital allocated within the state.
31 § 2. This act shall take effect immediately.
32 PART H
33 Section 1. Subparagraph (ii) of paragraph (c) of subdivision 1 of
34 section 210 of the tax law, as amended by section 1 of part L of chapter
35 407 of the laws of 1999, is amended to read as follows:
36 (ii) For taxable years beginning in nineteen hundred ninety, nineteen
37 hundred ninety-one, nineteen hundred ninety-two, nineteen hundred nine-
38 ty-three and nineteen hundred ninety-four the amount prescribed by this
39 paragraph shall be computed at the rate of five percent of the taxpay-
40 er's minimum taxable income base. For taxable years beginning after
41 nineteen hundred ninety-four and before July first, nineteen hundred
42 ninety-eight, the amount prescribed by this paragraph shall be computed
43 at the rate of three and one-half percent of the taxpayer's minimum
44 taxable income base. For taxable years beginning after June thirtieth,
45 nineteen hundred ninety-eight and before July first, nineteen hundred
46 ninety-nine, the amount prescribed by this paragraph shall be computed
47 at the rate of three and one-quarter percent of the taxpayer's minimum
48 taxable income base. For taxable years beginning after June thirtieth,
49 nineteen hundred ninety-nine and before July first, two thousand, the
50 amount prescribed by this paragraph shall be computed at the rate of
51 three percent of the taxpayer's minimum taxable income base. For taxa-
52 ble years beginning after June thirtieth, two thousand, the amount
S. 6460 22 A. 9560
1 prescribed by this paragraph shall be computed at the rate of two and
2 one-half percent of the taxpayer's minimum taxable income base. For
3 taxable years beginning on or after January first, two thousand six, and
4 before January first, two thousand seven, the amount prescribed by this
5 paragraph shall be computed at the rate of one and sixty-seven
6 hundredths percent of the taxpayer's minimum taxable income base. For
7 taxable years beginning on or after January first, two thousand seven,
8 and before January first, two thousand eight, the amount prescribed by
9 this paragraph shall be computed at the rate of eighty-three hundredths
10 percent of the taxpayer's minimum taxable income base. For taxable years
11 beginning on or after January first, two thousand eight, the amount
12 prescribed by this paragraph shall be computed at the rate of zero
13 percent of the taxpayer's minimum taxable income base. The "taxpayer's
14 minimum taxable income base" shall mean the portion of the taxpayer's
15 minimum taxable income allocated within the state as hereinafter
16 provided, subject to any modifications required by paragraphs (d) and
17 (e) of subdivision three of this section.
18 § 2. Paragraph 2 of subsection (b) of section 1455 of the tax law, as
19 added by chapter 298 of the laws of 1985, is amended to read as follows:
20 (2) Three percent of the taxpayer's alternative entire net income, or
21 portion thereof allocated to this state, for the taxable year, or part
22 thereof for taxable years beginning before January first, two thousand
23 six, two percent of the taxpayer's alternative entire net income, or
24 portion thereof allocated to this state, for the taxable year, or part
25 thereof, for taxable years beginning on or after January first, two
26 thousand six and before January first, two thousand seven, one percent
27 of the taxpayer's alternative entire net income, or portion thereof
28 allocated to this state, for the taxable year, or part thereof, for
29 taxable years beginning on or after January first, two thousand seven
30 and before January first, two thousand eight, and zero percent of the
31 taxpayer's alternative entire net income, or portion thereof allocated
32 to this state, for the taxable year, or part thereof for taxable years
33 beginning on or after January first, two thousand eight .
34 § 3. This act shall take effect immediately.
35 PART I
36 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law
37 is amended by adding a new subparagraph 18 to read as follows:
38 (18) the amount deductible pursuant to paragraph (r) of this subdivi-
39 sion.
40 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is
41 amended by adding two new subparagraphs 19 and 20 to read as follows:
42 (19) In the case of immediately deductible property for which a
43 deduction is allowed pursuant to paragraph (r) of this subdivision, the
44 amounts allowable as a depreciation deduction or an expense deduction
45 pursuant to the internal revenue code with respect to such property.
46 (20) If property to which paragraph (r) of this subdivision applies is
47 disposed of, ceases to be depreciable pursuant to section one hundred
48 sixty-seven of the internal revenue code, or ceases to be in service
49 within this state, the amount of the adjusted basis of such property for
50 federal income tax purposes.
51 § 3. Paragraph (f) of subdivision 9 of section 208 of the tax law, as
52 separately amended by sections 278 and 347 of chapter 61 of the laws of
53 1989, subparagraph 4 as amended by chapter 190 of the laws of 1990, is
54 amended to read as follows:
S. 6460 23 A. 9560
1 (f) A net operating loss deduction shall be allowed which shall be
2 presumably the same as, and computed in the same manner as, the net
3 operating loss deduction allowed under section one hundred seventy-two
4 of the internal revenue code, or which would have been allowed if the
5 taxpayer had not made an election under subchapter s of chapter one of
6 the internal revenue code, except that in every instance where such
7 deduction is allowed under this article:
8 (1) any net operating loss included in determining such deduction
9 shall be adjusted to reflect the inclusions and exclusions from entire
10 net income required by paragraphs (a), (b) and (g) [hereof] of this
11 subdivision ,
12 (2) such deduction shall not include any net operating loss sustained
13 during any taxable year beginning prior to January first, nineteen
14 hundred sixty-one, or during any taxable year in which the taxpayer was
15 not subject to the tax imposed by this article,
16 (3) such deduction shall not exceed the deduction for the taxable year
17 allowed under section one hundred seventy-two of the internal revenue
18 code computed as if the net operating loss or losses used in computing
19 such deduction included the modifications set forth in subparagraph
20 eighteen of paragraph (a) of this subdivision and subparagraph nineteen
21 of paragraph (b) of this subdivision , or the deduction for the taxable
22 year which would have been allowed if the taxpayer had not made an
23 election under subchapter s of chapter one of the internal revenue code
24 computed as if the net operating loss or losses used in computing such
25 deduction included the modifications set forth in subparagraph eighteen
26 of paragraph (a) of this subdivision and subparagraph nineteen of para-
27 graph (b) of this subdivision ,
28 (4) in the case of a New York S corporation, such deduction shall not
29 include any net operating loss sustained during a New York C year or
30 during a New York S year beginning prior to nineteen hundred ninety, and
31 in the case of a New York C corporation, such deduction shall not
32 include any net operating loss sustained during a New York S year,
33 provided, however, a New York S year shall be treated as a taxable year
34 for purposes of determining the number of taxable years to which a net
35 operating loss may be carried back or carried forward, and
36 (5) the net operating loss deduction allowed under section one hundred
37 seventy-two of the internal revenue code shall for purposes of this
38 paragraph be determined as if the taxpayer had elected under such
39 section to relinquish the entire carryback period with respect to net
40 operating losses, except with respect to the first ten thousand dollars
41 of each of such losses, sustained during taxable years ending after June
42 thirtieth, nineteen hundred eighty-nine.
43 (6) Notwithstanding the opening paragraph of this paragraph, if a
44 taxpayer has no net operating loss deduction for federal income tax
45 purposes but would have a net operating loss deduction if such deduction
46 were computed using the modifications set forth in subparagraph eighteen
47 of paragraph (a) of this subdivision and subparagraph nineteen of para-
48 graph (b) of this subdivision, the taxpayer shall be treated as having a
49 net operating loss deduction under section one hundred seventy-two of
50 the internal revenue code.
51 § 4. Subdivision 9 of section 208 of the tax law is amended by adding
52 a new paragraph (r) to read as follows:
53 (r) Deduction for certain depreciable business assets:
54 (1) Treatment as expenses. A taxpayer shall treat the cost of any
55 immediately deductible property as an expense which is not chargeable to
56 capital account. Any cost so treated shall be allowed as a deduction for
S. 6460 24 A. 9560
1 the taxable year in which the immediately deductible property is placed
2 in service.
3 (2) Definitions and special rules. (A) For purposes of this paragraph,
4 the term "immediately deductible property" means property which is
5 (i) depreciable pursuant to section one hundred sixty-seven of the
6 internal revenue code,
7 (ii) placed in service within this state in a taxable year beginning
8 on or after January first, two thousand eight,
9 (iii) not a sports utility vehicle described in subparagraph sixteen
10 of paragraph (b) of this subdivision, and
11 (iv) not property for which an amortization deduction is allowed
12 pursuant to section one hundred ninety-seven of the internal revenue
13 code.
14 (B) For purposes of this paragraph, the cost of property does not
15 include so much of the basis of such property as is determined by refer-
16 ence to the basis of other property held at any time by the person
17 acquiring such property.
18 § 5. Subsection (b) of section 612 of the tax law is amended by adding
19 two new paragraphs 38 and 39 to read as follows:
20 (38) In the case of immediately deductible property for which a
21 deduction is allowed pursuant to subsection (w) of this section, the
22 amounts allowable as a depreciation deduction or an expense deduction
23 pursuant to the internal revenue code with respect to such property.
24 (39) If property to which subsection (w) of this section applies is
25 disposed of, ceases to be depreciable pursuant to section one hundred
26 sixty-seven of the internal revenue code, or ceases to be in service
27 within this state, the amount of the adjusted basis of such property for
28 federal income tax purposes.
29 § 6. Subsection (c) of section 612 of the tax law is amended by adding
30 a new paragraph 38 to read as follows:
31 (38) the amount deductible pursuant to subsection (w) of this section.
32 § 7. Section 612 of the tax law is amended by adding a new subsection
33 (w) to read as follows:
34 (w) Deduction for certain depreciable business assets:
35 (1) Treatment as expenses. An individual taxpayer shall treat the cost
36 of any immediately deductible property as an expense which is not
37 chargeable to capital account. Any cost so treated shall be allowed as a
38 deduction for the taxable year in which the immediately deductible prop-
39 erty is placed in service.
40 (2) Definitions and special rules. (A) For purposes of this
41 subsection, the term "immediately deductible property" means property
42 which is
43 (i) depreciable pursuant to section one hundred sixty-seven of the
44 internal revenue code,
45 (ii) placed in service within this state in a taxable year beginning
46 on or after January first, two thousand eight, and
47 (iii) not property for which an amortization deduction is allowed
48 pursuant to section one hundred ninety-seven of the internal revenue
49 code.
50 (B) For purposes of this subsection, the cost of property does not
51 include so much of the basis of such property as is determined by refer-
52 ence to the basis of other property held at any time by the person
53 acquiring such property.
54 § 8. Subsection (b) of section 1453 of the tax law is amended by
55 adding two new paragraphs 14 and 15 to read as follows:
S. 6460 25 A. 9560
1 (14) in the case of immediately deductible property for which a
2 deduction is allowed pursuant to subsection (u) of this section, the
3 amounts allowable as a depreciation deduction or an expense deduction
4 pursuant to the internal revenue code with respect to such property.
5 (15) if property to which subsection (u) of this section applies is
6 disposed of, ceases to be depreciable pursuant to section one hundred
7 sixty-seven of the internal revenue code, or ceases to be in service
8 within this state, the amount of the adjusted basis of such property for
9 federal income tax purposes.
10 § 9. Subsection (e) of section 1453 of the tax law is amended by
11 adding a new paragraph 18 to read as follows:
12 (18) the amount deductible pursuant to subsection (u) of this section.
13 § 10. Subsection (k-1) of section 1453 of the tax law, as added by
14 section 86 of part A of chapter 389 of the laws of 1997, is amended to
15 read as follows:
16 (k-1) A net operating loss deduction shall be allowed which shall be
17 presumably the same as, and computed in the same manner as, the net
18 operating loss deduction allowed under section one hundred seventy-two
19 of the internal revenue code, except that in every instance where such
20 deduction is allowed under this article:
21 (1) any net operating loss included in determining such deduction
22 shall be adjusted to reflect the inclusions and exclusions from entire
23 net income required by the other provisions of this section,
24 (2) such deduction shall not include any net operating loss sustained
25 during any taxable year beginning prior to January first, two thousand
26 one, or during any taxable year in which the taxpayer was not subject to
27 the tax imposed by this article,
28 (3) such deduction shall not exceed the deduction for the taxable year
29 allowed under section one hundred seventy-two of the internal revenue
30 code, computed as if the net operating loss or losses used in computing
31 such deduction included the modifications set forth in paragraph four-
32 teen of subsection (b) of this section and paragraph eighteen of
33 subsection (e) of this section, augmented by the excess of the amount
34 allowed as a deduction pursuant to subsection (h) or (i) of this
35 section, whichever is applicable, over the amount allowed as a deduction
36 pursuant to section 166 or 585 of the internal revenue code, for each
37 taxable year in which the taxpayer had a net operating loss which is
38 carried to the taxable year of the deduction under this provision, in
39 the aggregate, (except to the extent such excess was previously deducted
40 in computing entire net income), and
41 (4) the net operating loss deduction allowed under section one hundred
42 seventy-two of the internal revenue code shall for purposes of this
43 subsection be determined as if the taxpayer had elected under such
44 section to relinquish the entire carryback period with respect to net
45 operating losses.
46 (5) Notwithstanding the opening paragraph of this subsection, if a
47 taxpayer has no net operating loss deduction for federal income taxation
48 purposes but would have a net operating loss deduction if such deduction
49 were computed using the modifications set forth in paragraph fourteen of
50 subsection (b) of this section and paragraph eighteen of subsection (e)
51 of this section, the taxpayer shall be treated as having a net operating
52 loss deduction under section one hundred seventy-two of the internal
53 revenue code.
54 § 11. Section 1453 of the tax law is amended by adding a new
55 subsection (u) to read as follows:
56 (u) Deduction for certain depreciable business assets:
S. 6460 26 A. 9560
1 (1) Treatment as expenses. A taxpayer shall treat the cost of any
2 immediately deductible property as an expense which is not chargeable to
3 capital account. Any cost so treated shall be allowed as a deduction for
4 the taxable year in which the immediately deductible property is placed
5 in service.
6 (2) Definitions and special rules. (A) For purposes of this
7 subsection, the term "immediately deductible property" means property
8 which is
9 (i) depreciable pursuant to section one hundred sixty-seven of the
10 internal revenue code,
11 (ii) placed in service within this state in a taxable year beginning
12 on or after January first, two thousand eight, and
13 (iii) not property for which an amortization deduction is allowed
14 pursuant to section one hundred ninety-seven of the internal revenue
15 code.
16 (B) For purposes of this subsection, the cost of property does not
17 include so much of the basis of such property as is determined by refer-
18 ence to the basis of other property held at any time by the person
19 acquiring such property.
20 § 12. This act shall take effect immediately and apply to taxable
21 years beginning on or after January 1, 2008.
22 PART J
23 Section 1. Paragraph (a) of subdivision 1 of section 210 of the tax law,
24 as amended by section 1 of part A of chapter 63 of the laws of 2000,
25 subparagraphs (i), (ii), (iii) and (iv) as amended by section 1 of part
26 E of chapter 61 of the laws of 2005, is amended to read as follows:
27 (a) Entire net income base. For taxable years beginning before July
28 first, nineteen hundred ninety-nine, the amount prescribed by this para-
29 graph shall be computed at the rate of nine percent of the taxpayer's
30 entire net income base. For taxable years beginning after June thirti-
31 eth, nineteen hundred ninety-nine and before July first, two thousand,
32 the amount prescribed by this paragraph shall be computed at the rate of
33 eight and one-half percent of the taxpayer's entire net income base. For
34 taxable years beginning after June thirtieth, two thousand and before
35 July first, two thousand one, the amount prescribed by this paragraph
36 shall be computed at the rate of eight percent of the taxpayer's entire
37 net income base. For taxable years beginning after June thirtieth, two
38 thousand one, the amount prescribed by this paragraph shall be computed
39 at the rate of seven and one-half percent of the taxpayer's entire net
40 income base. For taxable years beginning on or after January first, two
41 thousand seven and before January first, two thousand eight, the amount
42 prescribed by this paragraph shall be computed at the rate of seven and
43 one-quarter percent of the taxpayer's entire net income base. For taxa-
44 ble years beginning on or after January first, two thousand eight and
45 before January first, two thousand nine, the amount prescribed by this
46 paragraph shall be computed at the rate of seven percent of the taxpay-
47 er's entire net income base. For taxable years beginning on or after
48 January first, two thousand nine, the amount prescribed by this para-
49 graph shall be computed at the rate of six and three-quarters percent of
50 the taxpayer's entire net income base. The taxpayer's entire net income
51 base shall mean the portion of the taxpayer's entire net income allo-
52 cated within the state as hereinafter provided, subject to any modifica-
53 tion required by paragraphs (d) and (e) of subdivision three of this
54 section. However, in the case of a small business taxpayer, as defined
S. 6460 27 A. 9560
1 in paragraph (f) of this subdivision, the amount prescribed by this
2 paragraph shall be computed as follows:
3 (i) if the entire net income base is not more than two hundred thou-
4 sand dollars, (1) for taxable years beginning before July first, nine-
5 teen hundred ninety-nine, the amount shall be eight percent of the
6 entire net income base; (2) for taxable years beginning after June thir-
7 tieth, nineteen hundred ninety-nine and before July first, two thousand
8 three, the amount shall be seven and one-half percent of the entire net
9 income base; and (3) for taxable years beginning after June thirtieth,
10 two thousand three and before January first, two thousand five, the
11 amount shall be 6.85 percent of the entire net income base;
12 (ii) if the entire net income base is more than two hundred thousand
13 dollars but not over two hundred ninety thousand dollars, (1) for taxa-
14 ble years beginning before July first, nineteen hundred ninety-nine, the
15 amount shall be the sum of (a) sixteen thousand dollars, (b) nine
16 percent of the excess of the entire net income base over two hundred
17 thousand dollars and (c) five percent of the excess of the entire net
18 income base over two hundred fifty thousand dollars; (2) for taxable
19 years beginning after June thirtieth, nineteen hundred ninety-nine and
20 before July first, two thousand, the amount shall be the sum of (a)
21 fifteen thousand dollars, (b) eight and one-half percent of the excess
22 of the entire net income base over two hundred thousand dollars and (c)
23 five percent of the excess of the entire net income base over two
24 hundred fifty thousand dollars; (3) for taxable years beginning after
25 June thirtieth, two thousand and before July first, two thousand one,
26 the amount shall be the sum of (a) fifteen thousand dollars, (b) eight
27 percent of the excess of the entire net income base over two hundred
28 thousand dollars and (c) two and one-half percent of the excess of the
29 entire net income base over two hundred fifty thousand dollars; (4) for
30 taxable years beginning after June thirtieth, two thousand one and
31 before July first, two thousand three, the amount shall be seven and
32 one-half percent of the entire net income base; and (5) for taxable
33 years beginning after June thirtieth, two thousand three and before
34 January first, two thousand five, the amount shall be the sum of (a)
35 thirteen thousand seven hundred dollars, (b) 7.5 percent of the excess
36 of the entire net income base over two hundred thousand dollars and (c)
37 3.25 percent of the excess of the entire net income base over two
38 hundred fifty thousand dollars;
39 (iii) (I) for taxable years beginning on or after January first, two
40 thousand five and before January first, two thousand seven , if the
41 entire net income base is not more than two hundred ninety thousand
42 dollars the amount shall be six and one-half percent of the entire net
43 income base; if the entire net income base is more than two hundred
44 ninety thousand dollars but not over three hundred ninety thousand
45 dollars the amount shall be the sum of (1) eighteen thousand eight
46 hundred fifty dollars, (2) seven and one-half percent of the excess of
47 the entire net income base over two hundred ninety thousand dollars but
48 not over three hundred ninety thousand dollars and (3) seven and one-
49 quarter percent of the excess of the entire net income base over three
50 hundred fifty thousand dollars but not over three hundred ninety thou-
51 sand dollars;
52 (II) for taxable years beginning on or after January first, two thou-
53 sand seven and before January first, two thousand eight, if the entire
54 net income base is not more than two hundred ninety thousand dollars the
55 amount shall be six and one-half percent of the entire net income base;
56 if the entire net income base is more than two hundred ninety thousand
S. 6460 28 A. 9560
1 dollars but not over three hundred ninety thousand dollars the amount
2 shall be the sum of (1) eighteen thousand eight hundred fifty dollars,
3 (2) seven and one-quarter percent of the excess of the entire net income
4 base over two hundred ninety thousand dollars but not over three hundred
5 ninety thousand dollars and (3) five and seven-sixteenths percent of the
6 excess of the entire net income base over three hundred fifty thousand
7 dollars but not over three hundred ninety thousand dollars;
8 (III) for taxable years beginning on or after January first, two thou-
9 sand eight and before January first, two thousand nine, if the entire
10 net income base is not more than two hundred ninety thousand dollars the
11 amount shall be six and one-half percent of the entire net income base;
12 if the entire net income base is more than two hundred ninety thousand
13 dollars but not over three hundred ninety thousand dollars the amount
14 shall be the sum of (1) eighteen thousand eight hundred fifty dollars,
15 (2) seven percent of the excess of the entire net income base over two
16 hundred ninety thousand dollars but not over three hundred ninety thou-
17 sand dollars and (3) three and five-eighths percent of the excess of the
18 entire net income base over three hundred fifty thousand dollars but not
19 over three hundred ninety thousand dollars;
20 (IV) for taxable years beginning on or after January first, two thou-
21 sand nine, if the entire net income base is not more than two hundred
22 ninety thousand dollars the amount shall be six and one-half percent of
23 the entire net income base; if the entire net income base is more than
24 two hundred ninety thousand dollars but not over three hundred ninety
25 thousand dollars the amount shall be the sum of (1) eighteen thousand
26 eight hundred fifty dollars, (2) six and three-quarters percent of the
27 excess of the entire net income base over two hundred ninety thousand
28 dollars but not over three hundred ninety thousand dollars and (3) one
29 and thirteen-sixteenths percent of the excess of the entire net income
30 base over three hundred fifty thousand dollars but not over three
31 hundred ninety thousand dollars;
32 (iv) if the taxable period to which subparagraphs (i), (ii) and (iii)
33 of this paragraph apply is less than twelve months, the amount
34 prescribed by this paragraph shall be computed as follows:
35 (A) Multiply the entire net income base for such taxpayer by twelve;
36 (B) Divide the result obtained in (A) by the number of months in the
37 taxable year;
38 (C) Compute an amount pursuant to subparagraphs (i) and (ii) as if the
39 result obtained in (B) were the taxpayer's entire net income base;
40 (D) Multiply the result obtained in (C) by the number of months in the
41 taxpayer's taxable year;
42 (E) Divide the result obtained in (D) by twelve.
43 § 2. Subsection (a) of section 1455 of the tax law, as amended by
44 section 1 of part O of chapter 407 of the laws of 1999, is amended to
45 read as follows:
46 (a) Basic tax. For taxable years beginning before July first, two
47 thousand, nine percent of the taxpayer's entire net income, or the
48 portion thereof allocated to this state, for the taxable year, or part
49 thereof. For taxable years beginning after June thirtieth, two thousand
50 and before July first, two thousand one, eight and one-half percent of
51 the taxpayer's entire net income, or portion thereof allocated to this
52 state, for the taxable year, or part thereof. For taxable years begin-
53 ning after June thirtieth, two thousand one and before July first, two
54 thousand two, eight percent of the taxpayer's entire net income, or
55 portion thereof allocated to this state, for the taxable year, or part
56 thereof. For taxable years beginning after June thirtieth, two thousand
S. 6460 29 A. 9560
1 two, seven and one-half percent of the taxpayer's entire net income, or
2 portion thereof allocated to this state, for the taxable year, or part
3 thereof. For taxable years beginning on or after January first, two
4 thousand seven and before January first, two thousand eight, seven and
5 one-fourth percent of the taxpayer's entire net income, or portion ther-
6 eof allocated to this state, for the taxable year, or part thereof. For
7 taxable years beginning on or after January first, two thousand eight
8 and before January first, two thousand nine, seven percent of the
9 taxpayer's entire net income, or portion thereof allocated to this
10 state, for the taxable year, or part thereof. For taxable years begin-
11 ning on or after January first, two thousand nine, six and three-quar-
12 ters percent of the taxpayer's entire net income, or portion thereof
13 allocated to this state, for the taxable year, or part thereof.
14 § 3. This act shall take effect immediately.
15 PART K
16 Section 1. Paragraph (b) of subdivision (1) of section 210 of the tax
17 law, as amended by section 1 of part M of chapter 61 of the laws of
18 2005, is amended to read as follows:
19 (b) Capital base. (1) The amount prescribed by this paragraph for
20 taxable years beginning before January first, two thousand six shall be
21 computed at one and seventy-eight hundredths mills for each dollar of
22 the taxpayer's total business and investment capital, or the portion
23 thereof allocated within the state as hereinafter provided, for the
24 taxable year beginning on or after January first, two thousand six and
25 before January first, two thousand seven shall be computed at one thou-
26 sand one hundred eighty-seven hundredth mills for each dollar of the
27 taxpayer's total business and investment capital, or the portion thereof
28 allocated within the state as hereinafter provided, for the taxable year
29 beginning on or after January first, two thousand seven and before Janu-
30 ary first, two thousand eight shall be computed at five hundred ninety-
31 three hundredth mills for each dollar of the taxpayer's total business
32 and investment capital, or the portion thereof allocated within the
33 state as hereinafter provided, and for taxable years beginning on or
34 after January first, two thousand eight shall be computed at zero mills
35 for each dollar of the taxpayer's total business and investment capital,
36 or the portion thereof allocated within the state, except that in the
37 case of a cooperative housing corporation as defined in the internal
38 revenue code, the applicable rate for taxable years beginning before
39 January first, two thousand six shall be four-tenths of a mill, for the
40 taxable year beginning on or after January first, two thousand six and
41 before January first, two thousand seven shall be eight thirtieths of a
42 mill, for the taxable year beginning on or after January first, two
43 thousand seven and before January first, two thousand eight shall be
44 four thirtieths of a mill, and for taxable years beginning on or after
45 January first, two thousand eight shall be zero mills . In no event
46 shall the amount prescribed by this paragraph exceed three hundred fifty
47 thousand dollars for manufacturers and one million dollars for all other
48 taxpayers.
49 (2) For purposes of subparagraph one of this paragraph, the term
50 "manufacturer" shall mean a taxpayer which during the taxable year is
51 principally engaged in the production of goods by manufacturing, proc-
52 essing, assembling, refining, mining, extracting, farming, agriculture,
53 horticulture, floriculture, viticulture or commercial fishing. Moreover,
54 for purposes of computing the capital base in a combined report, the
S. 6460 30 A. 9560
1 combined group shall be considered a "manufacturer" for purposes of this
2 subparagraph only if the combined group during the taxable year is prin-
3 cipally engaged in the activities set forth above, or any combination
4 thereof. A taxpayer or a combined group shall be "principally engaged"
5 in activities described above if, during the taxable year, more than
6 fifty percent of the gross receipts of the taxpayer or combined group,
7 respectively, are derived from receipts from the sale of goods produced
8 by such activities. In computing a combined group's gross receipts,
9 intercorporate receipts shall be eliminated.
10 § 2. Paragraph 1 of subsection (b) of section 1455 of the tax law, as
11 added by chapter 298 of the laws of 1985, subparagraph (iii) and clause
12 (B) of subparagraph (v) as amended by chapter 817 of the laws of 1987,
13 clause (A) of subparagraph (v) as amended by chapter 55 of the laws of
14 1992, is amended to read as follows:
15 (1) (i) Except in the case of a taxpayer described in [clause] subpar-
16 agraph (ii), (iii), or (iv) [below] of this paragraph , one-tenth of a
17 mill upon each dollar of taxable assets, or the portion thereof allo-
18 cated to this state for taxable years beginning before January first,
19 two thousand six, one-fifteenth of a mill upon each dollar of taxable
20 assets, or the portion thereof allocated to this state for the taxable
21 year beginning on or after January first, two thousand six and before
22 January first, two thousand seven, one-thirtieth of a mill upon each
23 dollar of taxable assets, or the portion thereof allocated to this state
24 for the taxable year beginning on or after January first, two thousand
25 seven and before January first, two thousand eight, and zero mills upon
26 each dollar of taxable assets, or the portion thereof allocated to this
27 state for taxable years beginning on or after January first, two thou-
28 sand eight .
29 (ii) In the case of a taxpayer whose net worth ratio is less than five
30 but greater than or equal to four percent and whose total assets are
31 comprised of thirty-three percent or more of mortgages, one-twenty-fifth
32 of a mill upon each dollar of taxable assets, or the portion thereof
33 allocated to this state for taxable years beginning before January
34 first, two thousand six, two seventy-fifths of a mill upon each dollar
35 of taxable assets, or the portion thereof allocated to this state for
36 the taxable year beginning on or after January first, two thousand six
37 and before January first, two thousand seven, one seventy-fifth of a
38 mill upon each dollar of taxable assets, or the portion thereof allo-
39 cated to this state for the taxable year beginning on or after January
40 first, two thousand seven and before January first, two thousand eight,
41 and zero mills upon each dollar of taxable assets, or the portion there-
42 of allocated to this state for taxable years beginning on or after Janu-
43 ary first, two thousand eight .
44 (iii) In the case of a taxpayer whose net worth ratio is less than
45 four percent and whose total assets are comprised of thirty-three
46 percent or more of mortgages, one-fiftieth of a mill upon each dollar of
47 taxable assets, or the portion thereof allocated to this state for taxa-
48 ble years beginning before January first, two thousand six, one seven-
49 ty-fifth of a mill upon each dollar of taxable assets, or the portion
50 thereof allocated to this state for the taxable year beginning on or
51 after January first, two thousand six and before January first, two
52 thousand seven, one-hundred-fiftieth of a mill upon each dollar of taxa-
53 ble assets, or the portion thereof allocated to this state for the taxa-
54 ble year beginning on or after January first, two thousand seven and
55 before January first, two thousand eight, and zero mills upon each
56 dollar of taxable assets, or the portion thereof allocated to this state
S. 6460 31 A. 9560
1 for taxable years beginning on or after January first, two thousand
2 eight .
3 (iv) For taxable years beginning on or after January first, nineteen
4 hundred eighty-five, a taxpayer (whether or not a qualified institution
5 as defined in subparagraph (B) of paragraph five of subsection (f) of
6 section four hundred six of the federal national housing act, as
7 amended, or as defined in paragraph two of subsection (i) of section
8 thirteen of the federal deposit insurance act, as amended) shall not be
9 subject to the provisions of this paragraph for that portion of the
10 taxable year in which it had outstanding net worth certificates issued
11 in accordance with paragraph five of subsection (f) of section four
12 hundred six of the federal national housing act, as amended, or issued
13 in accordance with subsection (i) of section thirteen of the federal
14 deposit insurance act, as amended.
15 (v) For the purposes of this article:
16 (A) The term "taxable assets" shall mean the average value of total
17 assets reduced by any amount of money or other property received from or
18 attributable to amounts received from the federal deposit insurance
19 corporation pursuant to subsection (c) of section thirteen of the feder-
20 al deposit insurance act, as amended, or the federal savings and loan
21 insurance corporation pursuant to paragraph one, two, three or four of
22 subsection (f) of section four hundred six of the federal national hous-
23 ing act, as amended. Total assets are those assets which are properly
24 reflected on a balance sheet the income or expenses of which are proper-
25 ly reflected (or would have been properly reflected if not fully depre-
26 ciated or expensed or depreciated or expensed to a nominal amount) in
27 the computation of alternative entire net income for the taxable year or
28 in the computation of the eligible net income of the taxpayer's interna-
29 tional banking facility for the taxable year.
30 (B) The term "net worth ratio" shall mean the percentage of net worth
31 to assets on the last day of the taxable year. The term "net worth"
32 means the sum of preferred stock, common stock, surplus, capital
33 reserves, undivided profits, mutual capital certificates, reserve for
34 contingencies, reserve for loan losses and reserve for security losses
35 minus assets classified loss. The term "assets" means the sum of mort-
36 gage loans, nonmortgage loans, repossessed assets, real estate held for
37 development or investment or resale, cash, deposits, investment securi-
38 ties, fixed assets and other assets (such as financial futures, goodwill
39 and other intangible assets) minus assets classified loss. In no event
40 shall assets be reduced by reserves for losses.
41 (C) The term "mortgages" shall mean loans secured by real property
42 within or without the state, participations in and securities collater-
43 alized by pools of residential mortgages, whether or not issued or guar-
44 anteed by a United States government agency, and loans secured by stock
45 in a cooperative housing corporation. The percentage of total assets
46 comprised of mortgages shall be an amount equal to the ratio of the
47 average of the four quarterly balances of such mortgages ending within
48 the taxable year, to the average of the four quarterly balances of all
49 assets ending within the taxable year. Such quarterly balances shall be
50 computed in the same manner as the report of condition required for
51 federal deposit insurance corporation or federal savings and loan insur-
52 ance corporation purposes, whether or not such report is required. For
53 taxable periods of less than one year, the taxpayer shall compute such
54 ratio using the number of such quarterly balances ending within such
55 taxable period.
56 § 3. This act shall take effect immediately.
S. 6460 32 A. 9560
1 PART L
2 Section 1. Subparagraph (1) of paragraph (g) of subdivision 1 of section
3 210 of the tax law, as amended by section 5 of part Y3 of chapter 62 of
4 the laws of 2003, is amended to read as follows:
5 (1) General. The amount prescribed by this paragraph shall be, in the
6 case of each New York S corporation, (i) the higher of the amounts
7 prescribed in paragraphs (a) and (d) of this subdivision (other than the
8 amount prescribed in the final clause of subparagraph one of such para-
9 graph (d)) (ii) reduced by the article twenty-two tax equivalent[,];
10 provided, however, that the amount thus determined shall not be less
11 than the lowest of the amounts prescribed in subparagraph one of such
12 paragraph (d) (with regard to the provisions of subparagraph three of
13 such paragraph). Provided, however, notwithstanding any provision of
14 this paragraph, in taxable years beginning in two thousand three[, two
15 thousand four, and two thousand five] and thereafter , the amount
16 prescribed by this paragraph shall be the amount prescribed in subpara-
17 graph one of such paragraph (d) (with regard to the provisions of
18 subparagraph three of such paragraph) and with regard to calculation of
19 such amount in the case of a termination year as set forth in subpara-
20 graph four of this paragraph.
21 § 2. This act shall take effect immediately and shall apply to taxable
22 years beginning on or after January 1, 2003.
23 PART M
24 Section 1. Subsection (c) of section 1505 of the tax law, as amended by
25 section 4 of part H3 of chapter 62 of the laws of 2003, is amended to
26 read as follows:
27 (c) For purposes of the limitation set forth in subdivision (a) of
28 this section, in the case of an insurance corporation more [then] than
29 ninety-five percent of whose premiums are received as consideration for
30 annuity contracts or are for policies and insurance described in para-
31 graph two of subdivision (c) of section fifteen hundred ten of this
32 article, in determining the amount of tax computed solely under section
33 fifteen hundred ten of this article, gross direct premiums subject to
34 tax under such section shall include [all] such amounts received as
35 consideration for annuity contracts and premiums for policies and insur-
36 ance, including any separate costs assessed by such insurance corpo-
37 ration upon its policyholders, described in paragraph two of subdivision
38 (c) of such section that exceed ninety-five percent of all premiums
39 received, including consideration for annuity contracts and premiums for
40 policies and insurance (and any separate costs assessed by such insur-
41 ance corporations upon its policyholders) described in paragraph two of
42 subdivision (c) of section fifteen hundred ten of this article .
43 § 2. This act shall take effect immediately and apply to taxable years
44 beginning on or after January 1, 2006.
45 PART N
46 Section 1. Paragraph 2 of subdivision (a) and subdivision (b) of section
47 1505 of the tax law, as amended by section 4 of part H3 of chapter 62 of
48 the laws of 2003, are amended to read as follows:
49 (2) Domestic, foreign and alien life insurance corporations. The
50 provisions of this paragraph shall apply to taxpayers subject to tax
51 under paragraph one of subdivision (b) of section fifteen hundred ten of
S. 6460 33 A. 9560
1 this article. Notwithstanding the provisions of sections fifteen hundred
2 one and fifteen hundred ten of this article, the amount of taxes imposed
3 under such sections for taxable years beginning on or after January
4 first, nineteen hundred seventy-seven, computed without regard to any
5 credits allowable against such tax other than those credits provided
6 under subdivisions (g) and (h) of section fifteen hundred eleven of this
7 article, shall not exceed an amount computed as if such taxes were
8 determined solely under section fifteen hundred ten, except that for
9 purposes of the limitation provided herein, the rate of tax under such
10 section shall be deemed to be (i) two and six-tenths percent for taxable
11 years beginning on or after January first, nineteen hundred seventy-sev-
12 en and before January first, nineteen hundred ninety-eight, [and] (ii)
13 two percent for taxable years beginning on or after January first, nine-
14 teen hundred ninety-eight, and (iii) one and three-quarters percent for
15 taxable years beginning on or after January first, two thousand six .
16 (b) Notwithstanding the provisions of sections fifteen hundred one and
17 fifteen hundred ten of this article, in the case of taxpayers subject to
18 tax under subdivision (b) of section fifteen hundred ten, the total
19 amount of tax imposed under this article, computed before the applica-
20 tion of any credits allowable against such tax, shall in no event be
21 less than the amount computed as if such tax was determined solely under
22 section fifteen hundred ten, except that the rate of tax under section
23 fifteen hundred ten shall be deemed to be one and five-tenths percent
24 for taxable years beginning on or after January first, two thousand
25 three and before January first, two thousand six, and one and one-quar-
26 ter percent for taxable years beginning on or after January first, two
27 thousand six .
28 § 2. This act shall take effect immediately.
29 PART O
30 Section 1. Paragraphs 1, 2, 3 and 4 of subdivision (f) of section 1137
31 of the tax law, paragraphs 1, 3 and 4 as added by chapter 170 of the
32 laws of 1994 and paragraph 2 as amended by section 92 of part A of chap-
33 ter 389 of the laws of 1997, are amended to read as follows:
34 (1) Except as otherwise provided in this subdivision, a person
35 required to collect tax who files a return required to be filed under
36 section eleven hundred thirty-six of this [article] part For a quarterly
37 or longer period shall be allowed a credit against the [tax collected
38 from such person's customers] taxes and fees required to be reported on,
39 and paid with, such return, in an amount as determined in paragraph two
40 of this subdivision, but only where such person files the return on or
41 before the filing due date and pays or pays over with such return the
42 total amount shown on such return (determined with regard to this subdi-
43 vision).
44 (2) The amount of the credit authorized by paragraph one of this
45 subdivision shall be [three and one-half] five percent of the amount of
46 [tax imposed by section eleven hundred five of this article at the rate
47 of four percent and] taxes and fees (but not including any penalty or
48 interest thereon) required to be [collected from such person's customers
49 which is] reported on, and paid or paid over with, the return [which]
50 but only if the return is filed on or before the filing due date, but
51 not more than [one] two hundred fifty dollars, for each quarterly or
52 longer period, except that, with respect to returns required to be filed
53 for quarterly or longer periods ending on or before the last day of
54 February, two thousand seven, the amount of the credit shall be three
S. 6460 34 A. 9560
1 and one-half percent of the amount of such taxes and fees, but not more
2 than one hundred fifty dollars for each such quarterly or longer period,
3 and with respect to returns required to be filed for the quarterly or
4 longer periods ending on or before the last day of February, two thou-
5 sand eight, the amount of the credit shall be four percent of the amount
6 of such taxes and fees, but not more than two hundred dollars for each
7 such quarterly or longer period .
8 (3) Notwithstanding any other provision of law[, no]: The credit
9 afforded by this subdivision shall be taken only on the return for the
10 quarterly or longer period to which the credit applies. No refund,
11 carryforward or carryback of any credit, or any interest thereon, and no
12 application for credit or refund of any tax, penalty or interest shall
13 be allowed or paid under this subdivision. No claim for credit may be
14 filed or allowed under this subdivision other than with the original
15 return for such period and any later [credit] claim, whether sought to
16 be taken on an amended return or otherwise, shall be void and any allow-
17 ance erroneous. The commissioner may, on the commissioner's own motion,
18 correct any erroneous disallowance of the credit provided by this subdi-
19 vision.
20 (4) [The credit authorized by this subdivision shall be computed with
21 respect to, and shall apply against, only the tax imposed by section
22 eleven hundred five of this article at the rate of four percent, and
23 this subdivision shall not apply to or be deemed incorporated into any
24 section of this article which imposes tax and incorporates other
25 sections of this article, or into article twenty-nine or other articles
26 of this chapter, or local laws, ordinances or resolutions enacted pursu-
27 ant thereto, notwithstanding any other provision of law.] Notwithstand-
28 ing any other provision of law: The credit authorized by this subdivi-
29 sion shall be computed with reference to state and local taxes and fees
30 described in paragraph two of this subdivision, but shall be charged and
31 allowed only against revenues from taxes imposed by sections eleven
32 hundred five and eleven hundred ten of this article. The commissioner
33 shall account for the aggregate amounts of such credits monthly in
34 accordance with the schedule for certifications to the state comptroller
35 in section twelve hundred sixty-one of this chapter. Such aggregate
36 monthly amounts of credits shall be netted against revenues from the
37 taxes under such sections eleven hundred five and eleven hundred ten, to
38 ensure that revenues from the taxes and fees imposed by other sections
39 of law or by counties, cities and school districts pursuant to the
40 authority of article twenty-nine of this chapter are not reduced and are
41 deposited as provided with respect to the taxes and fees imposed by such
42 other sections or as provided in such article twenty-nine of this chap-
43 ter with respect to taxes of counties, cities and school districts. Any
44 overpayment or underpayment of revenues of a county, city or school
45 district or of revenues from another tax or fee, on account of the
46 allowance of credits under this subdivision, shall be adjusted in the
47 manner described in subdivision (c) of such section twelve hundred
48 sixty-one of this chapter. The credit authorized by this subdivision
49 shall not be incorporated into article twenty-nine of this chapter or
50 into local laws, ordinances or resolutions enacted pursuant to the
51 authority of such article twenty-nine of this chapter.
52 § 2. This act shall take effect on the first day of the quarterly
53 period, as described in subdivision (b) of section 1136 of the tax law,
54 next commencing at least 90 days after the date this act shall have
55 become a law; and provided further that the credit authorized by subdi-
56 vision (f) of section 1137 of the tax law, as amended by section one of
S. 6460 35 A. 9560
1 this act, shall apply to returns required to be filed under section 1136
2 of the tax law for quarterly periods beginning on and after that date,
3 and, for longer periods, to returns required to be filed after such
4 date; provided, however, that the department of taxation and finance
5 shall continue to issue vendor credit vouchers for quarterly periods
6 ending before the date this act takes effect and any vendor credit
7 voucher issued by the department of taxation and finance and outstanding
8 at the time this act takes effect must be applied against and used on a
9 return filed for a quarterly or longer period ending on or before Febru-
10 ary 28, 2007, and thereafter any such voucher or vendor credit not
11 previously taken shall be void and of no value; and provided, further,
12 that the commissioner of taxation and finance may take any action with
13 respect to the adoption, amendment, suspension or repeal of any rule or
14 regulation relating to this act and may establish any procedure or regu-
15 lation relating to this act and may establish any procedure or promul-
16 gate any form necessary for the timely implementation of this act, on or
17 after the date it shall have become a law.
18 PART P
19 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
20 tax law relating to the franchise tax on banking corporations imposed by
21 the tax law, authorized to be imposed by any city having a population of
22 one million or more by chapter 772 of the laws of 1966 and imposed by
23 the administrative code of the city of New York and relating to other
24 provisions of the tax law, chapter 883 of the laws of 1975 and the
25 administrative code of the city of New York which relates to such fran-
26 chise tax, as amended by section 1 of part G of chapter 60 of the laws
27 of 2004, is amended to read as follows:
28 § 51. This act shall take effect immediately and shall apply to taxa-
29 ble years beginning on or after January 1, 1985[, except that:
30 (a) sections one through eight shall not apply to taxable years begin-
31 ning on or after January 1, 2006;
32 (b) sections nine, twelve, the amendment made to paragraph 9 of
33 subsection (a) of section 1452 of the tax law by section thirteen,
34 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
35 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
36 of subdivision (a) of section 11-640 of the administrative code of the
37 city of New York by section thirty-three, sections thirty-five, thirty-
38 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
39 corporations other than savings banks and savings and loan associations
40 for taxable years beginning on or after January 1, 2006;
41 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
42 forty-two shall not apply to corporations other than savings banks and
43 savings and loan associations for taxable years beginning on or after
44 January 1, 2006, provided, however, that the provisions of such sections
45 which relate to the alternative minimum tax measured by taxable assets
46 shall continue to apply to all taxpayers for taxable years beginning on
47 or after January 1, 2006;
48 (d) the amendment to the section heading and the opening paragraph of
49 section 11-643.3 of the administrative code of the city of New York made
50 by section forty-three shall not apply to corporations other than
51 savings banks and savings and loan associations for taxable years begin-
52 ning on or after January 1, 2006 with respect to those provisions of
53 such section 11-643.3 which relate to the basic tax measured by entire
54 net income; and
S. 6460 36 A. 9560
1 (e) section twenty-eight, and the addition of new section 11-643.5 of
2 the administrative code of the city of New York made by section forty-
3 four shall not apply to corporations other than savings banks and
4 savings and loan associations for taxable years beginning on or after
5 January 1, 2006, provided, however, that the provisions of such sections
6 which relate to the alternative minimum taxes measured by assets, issued
7 capital stock and one hundred twenty-five dollars shall continue to
8 apply to all taxpayers for taxable years beginning on or after January
9 1, 2006].
10 § 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
11 laws of 1987, amending the tax law and the environmental conservation
12 law, constituting the business tax reform and rate reduction act of
13 1987, as amended by section 2 of part G of chapter 60 of the laws of
14 2004, are amended to read as follows:
15 (d) The provisions of section sixty-seven except insofar as it amends
16 paragraph 10 of subsection (b) of section 1453 of the tax law, seventy-
17 one and seventy-four shall apply to taxable years beginning after Decem-
18 ber 31, 1986[, provided, however, that new paragraphs 11 and 12 of
19 subsection (b) of section 1453 of the tax law as added by section
20 sixty-seven of this act, the amendments made by section seventy-one of
21 this act, and new subsection (i) of section 1453 of the tax law as added
22 by section seventy-four of this act shall not apply to taxable years
23 beginning on or after January 1, 2006];
24 (f) The provisions of section one hundred four of this act shall apply
25 to taxable years beginning after December 31, 1986[, and shall not apply
26 to corporations other than savings banks and savings and loan associ-
27 ations for taxable years beginning on or after January 1, 2006,
28 provided, however, that the provisions of such section which relate to
29 the alternative minimum tax measured by taxable assets shall continue to
30 apply to all taxpayers for taxable years beginning on or after January
31 1, 2006].
32 § 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
33 of 1988, amending the tax law and the administrative code of the city of
34 New York relating to the imposition of taxes in the city of New York, as
35 amended by section 3 of part G of chapter 60 of the laws of 2004, are
36 amended to read as follows:
37 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
38 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
39 and forty-eight shall apply to taxable years beginning after December
40 31, 1986[, provided, however, that the amendments made by sections thir-
41 ty-six and forty-one of this act, and new subdivision (i) of section
42 11-641 of the administrative code of the city of New York as added by
43 section forty-four of this act shall not apply to taxable years begin-
44 ning on or after January 1, 2006];
45 (d) The provisions of section forty-six shall apply to taxable years
46 beginning after December 31, 1986[, and shall not apply to corporations
47 other than savings banks and savings and loan associations for taxable
48 years beginning on or after January 1, 2006, provided, however, that the
49 provisions of such section which relate to the alternative minimum tax
50 measured by taxable assets shall continue to apply to all taxpayers for
51 taxable years beginning on or after January 1, 2006];
52 § 4. Section 1452 of the tax law is amended by adding a new subsection
53 (l) to read as follows:
54 (l) Transitional provisions relating to the enactment and implementa-
55 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
56 to the contrary contained in this section, a corporation that was in
S. 6460 37 A. 9560
1 existence before January first, two thousand six and was subject to tax
2 under article nine-A of this chapter for its last taxable year beginning
3 before January first, two thousand six, shall continue to be taxable
4 under article nine-A for all taxable years beginning on or after January
5 first, two thousand six and before January first, two thousand eight.
6 The preceding sentence shall not apply to any taxable year during which
7 such corporation is a banking corporation described in paragraphs one
8 through eight of subsection (a) of this section. Notwithstanding
9 anything to the contrary contained in this section, a banking corpo-
10 ration that was in existence before January first, two thousand six and
11 was subject to tax under this article for its last taxable year begin-
12 ning before January first, two thousand six, shall continue to be taxa-
13 ble under this article for all taxable years beginning on or after Janu-
14 ary first, two thousand six and before January first, two thousand
15 eight. Provided, however, that nothing in this subsection shall prohibit
16 a corporation that elected pursuant to subsection (d) of this section to
17 be taxable under article nine-A of this chapter from revoking that
18 election in accordance with such subsection (d).
19 For purposes of this paragraph, a corporation shall be considered to
20 be subject to tax under article nine-A of this chapter for a taxable
21 year if such corporation was not a taxpayer but was properly included in
22 a combined report filed pursuant to section two hundred eleven of this
23 chapter for such taxable year and a corporation shall be considered to
24 be subject to tax under this article for a taxable year if such corpo-
25 ration was not a taxpayer but was properly included in a combined return
26 filed pursuant to subsection (f) or (g) of section fourteen hundred
27 sixty-two of this article for such taxable year. A corporation that was
28 in existence before January first, two thousand six but first becomes a
29 taxpayer in a taxable year beginning on or after January first, two
30 thousand six and before January first, two thousand eight, shall be
31 considered for purposes of this paragraph to have been subject to tax
32 under article nine-A of this chapter for its last taxable year beginning
33 before January first, two thousand six if such corporation would have
34 been subject to tax under such article for such taxable year if it had
35 been a taxpayer during such taxable year. A corporation that was in
36 existence before January first, two thousand six but first becomes a
37 taxpayer in a taxable year beginning on or after January first, two
38 thousand six and before January first, two thousand eight, shall be
39 considered for purposes of this paragraph to have been subject to tax
40 under this article for its last taxable year beginning before January
41 first, two thousand six if such corporation would have been subject to
42 tax under this article for such taxable year if it had been a taxpayer
43 during such taxable year.
44 (2) Notwithstanding anything to the contrary contained in this
45 section, a corporation formed on or after January first, two thousand
46 six and before January first, two thousand eight may elect to be subject
47 to tax under this article or under article nine-A of this chapter for
48 its first taxable year beginning on or after January first, two thousand
49 six and before January first, two thousand eight in which either (i)
50 sixty-five percent or more of its voting stock is owned or controlled,
51 directly or indirectly by a financial holding company, provided the
52 corporation whose voting stock is so owned or controlled is principally
53 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
54 of the federal bank holding company act of nineteen hundred fifty-six,
55 as amended and the regulations promulgated pursuant to the authority of
56 such section, or (ii) it is a financial subsidiary. An election under
S. 6460 38 A. 9560
1 this paragraph may not be made by a corporation described in paragraphs
2 one through eight of subsection (a) of this section or in subsection (e)
3 of this section. In addition, an election under this paragraph may not
4 be made by a corporation that is a party to a reorganization, as defined
5 in subsection (a) of section 368 of the internal revenue code of 1986,
6 as amended, of a corporation described in paragraph one of this
7 subsection if both corporations were sixty-five percent or more owned or
8 controlled, directly or indirectly, by the same interests at the time of
9 the reorganization.
10 An election under this paragraph must be made by the taxpayer on or
11 before the due date for filing its return (determined with regard to
12 extensions of time for filing) for the applicable taxable year. The
13 election to be taxed under article nine-A of this chapter shall be made
14 by the taxpayer by filing the report required pursuant to section two
15 hundred eleven of this chapter and the election to be taxed under this
16 article shall be made by the taxpayer by filing the return required
17 pursuant to section fourteen hundred sixty-two of this article. Any
18 election made pursuant to this paragraph shall be irrevocable and shall
19 apply to each subsequent taxable year beginning on or after January
20 first, two thousand six and before January first, two thousand eight,
21 provided that the stock ownership requirements described in subparagraph
22 (i) of this paragraph are met or such corporation described in subpara-
23 graph (ii) of this paragraph continues as a financial subsidiary.
24 (3) For purposes of this section, a financial subsidiary means a
25 corporation (i) sixty-five percent or more of whose voting stock is
26 owned or controlled, directly or indirectly by a banking corporation
27 described in paragraph one, two or three of subsection (a) of this
28 section and (ii) is described in section 5136A(g) of the revised stat-
29 utes of the United States or section 46 of the federal deposit insurance
30 act. For purposes of this article, the term "banking corporation" shall
31 include a corporation electing to be taxed under this article pursuant
32 to paragraph two of this subsection for so long as such election shall
33 be in effect.
34 § 5. Subparagraph (iv) of paragraph 2 of subsection (f) of section
35 1462 of the tax law, as amended by section 5 of part G of chapter 60 of
36 the laws of 2004, is amended to read as follows:
37 (iv) (A) Notwithstanding any provision of this paragraph, any bank
38 holding company exercising its corporate franchise or doing business in
39 the state may make a return on a combined basis without seeking the
40 permission of the commissioner with any banking corporation exercising
41 its corporate franchise or doing business in the state in a corporate or
42 organized capacity sixty-five percent or more of whose voting stock is
43 owned or controlled, directly or indirectly, by such bank holding compa-
44 ny, for the first taxable year beginning on or after January first, two
45 thousand and before January first, two thousand [six] eight during which
46 such bank holding company registers for the first time under the federal
47 bank holding company act, as amended, and also elects to be a financial
48 holding company. In addition, for each subsequent taxable year beginning
49 after January first, two thousand and before January first, two thousand
50 [six] eight , any such bank holding company may file on a combined basis
51 without seeking the permission of the commissioner with any banking
52 corporation that is exercising its corporate franchise or doing business
53 in the state and sixty-five percent or more of whose voting stock is
54 owned or controlled, directly or indirectly, by such bank holding compa-
55 ny if either such banking corporation is exercising its corporate fran-
56 chise or doing business in the state in a corporate or organized capaci-
S. 6460 39 A. 9560
1 ty for the first time during such subsequent taxable year, or sixty-five
2 percent or more of the voting stock of such banking corporation is owned
3 or controlled, directly or indirectly, by such bank holding company for
4 the first time during such subsequent taxable year. Provided however,
5 for each subsequent taxable year beginning after January first, two
6 thousand and before January first, two thousand [six] eight , a banking
7 corporation described in either of the two preceding sentences which
8 filed on a combined basis with any such bank holding company in a previ-
9 ous taxable year, must continue to file on a combined basis with such
10 bank holding company if such banking corporation, during such subsequent
11 taxable year, continues to exercise its corporate franchise or do busi-
12 ness in the state in a corporate or organized capacity and sixty-five
13 percent or more of such banking corporation's voting stock continues to
14 be owned or controlled, directly or indirectly, by such bank holding
15 company, unless the permission of the commissioner has been obtained to
16 file on a separate basis for such subsequent taxable year. Provided
17 further, however, for each subsequent taxable year beginning after Janu-
18 ary first, two thousand and before January first, two thousand [six]
19 eight , a banking corporation described in either of the first two
20 sentences of this clause which did not file on a combined basis with any
21 such bank holding company in a previous taxable year, may not file on a
22 combined basis with such bank holding company during any such subsequent
23 taxable year unless the permission of the commissioner has been obtained
24 to file on a combined basis for such subsequent taxable year.
25 (B) Notwithstanding any provision of this paragraph other than clause
26 (A) of this subparagraph, the commissioner may not require a bank hold-
27 ing company which, during a taxable year beginning on or after January
28 first, two thousand and before January first, two thousand [six] eight ,
29 registers for the first time during such taxable year under the federal
30 bank holding company act, as amended, and also elects to be a financial
31 holding company, to make a return on a combined basis for any taxable
32 year beginning on or after January first, two thousand and before Janu-
33 ary first, two thousand [six] eight with a banking corporation sixty-
34 five percent or more of whose voting stock is owned or controlled,
35 directly or indirectly, by such bank holding company.
36 § 6. Section 11-640 of the administrative code of the city of New York
37 is amended by adding a new subdivision (k) to read as follows:
38 (k) Transitional provisions relating to the enactment and implementa-
39 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
40 to the contrary contained in this section, a corporation that was in
41 existence before January first, two thousand six and was subject to tax
42 under subchapter two of this chapter for its last taxable year beginning
43 before January first, two thousand six, shall continue to be taxable
44 under subchapter two of this chapter for all taxable years beginning on
45 or after January first, two thousand six and before January first, two
46 thousand eight. The preceding sentence shall not apply to any taxable
47 year during which such corporation is a banking corporation described in
48 paragraphs one through eight of subdivision (a) of this section.
49 Notwithstanding anything to the contrary contained in this section, a
50 banking corporation that was in existence before January first, two
51 thousand six and was subject to tax under this subchapter for its last
52 taxable year beginning before January first, two thousand six, shall
53 continue to be taxable under this subchapter for all taxable years
54 beginning on or after January first, two thousand six and before January
55 first, two thousand eight. Provided, however, that nothing in this
56 subdivision shall prohibit a corporation that elected pursuant to subdi-
S. 6460 40 A. 9560
1 vision (d) of this section to be taxable under subchapter two of this
2 chapter from revoking that election in accordance with subdivision (d)
3 of this section.
4 For purposes of this paragraph, a corporation shall be considered to
5 be subject to tax under subchapter two of this chapter for a taxable
6 year if such corporation was not a taxpayer but was properly included in
7 a combined report filed pursuant to subdivision four of section 11-605
8 of this chapter for such taxable year and a corporation shall be consid-
9 ered to be subject to tax under this subchapter for a taxable year if
10 such corporation was not a taxpayer but was properly included in a
11 combined report filed pursuant to subdivision (f) or (g) of section
12 11-646 of this part for such taxable year. A corporation that was in
13 existence before January first, two thousand six but first becomes a
14 taxpayer in a taxable year beginning on or after January first, two
15 thousand six and before January first, two thousand eight, shall be
16 considered for purposes of this paragraph to have been subject to tax
17 under subchapter two of this chapter for its last taxable year beginning
18 before January first, two thousand six if such corporation would have
19 been subject to tax under such subchapter for such taxable year if it
20 had been a taxpayer during such taxable year. A corporation that was in
21 existence before January first, two thousand six but first becomes a
22 taxpayer in a taxable year beginning on or after January first, two
23 thousand six and before January first, two thousand eight, shall be
24 considered for purposes of this paragraph to have been subject to tax
25 under this subchapter for its last taxable year beginning before January
26 first, two thousand six if such corporation would have been subject to
27 tax under this subchapter for such taxable year if it had been a taxpay-
28 er during such taxable year.
29 (2) Notwithstanding anything to the contrary contained in this
30 section, a corporation formed on or after January first, two thousand
31 six and before January first, two thousand eight may elect to be subject
32 to tax under this subchapter or under subchapter two of this chapter for
33 its first taxable year beginning on or after January first, two thousand
34 six and before January first, two thousand eight in which either (i)
35 sixty-five percent or more of its voting stock is owned or controlled,
36 directly or indirectly by a financial holding company, provided the
37 corporation whose voting stock is so owned or controlled is principally
38 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
39 of the federal bank holding company act of nineteen hundred fifty-six,
40 as amended and the regulations promulgated pursuant to the authority of
41 such section or (ii) it is a financial subsidiary. An election under
42 this paragraph may not be made by a corporation described in paragraphs
43 one through eight of subdivision (a) of this section or in subdivision
44 (e) of this section. In addition, an election under this paragraph may
45 not be made by a corporation that is a party to a reorganization, as
46 defined in subsection (a) of section 368 of the internal revenue code of
47 1986, as amended, of a corporation described in paragraph one of this
48 subdivision if both corporations were sixty-five percent or more owned
49 or controlled, directly or indirectly by the same interests at the time
50 of the reorganization.
51 An election under this paragraph must be made by the taxpayer on or
52 before the due date for filing its return (determined with regard to
53 extensions of time for filing) for the applicable taxable year. The
54 election to be taxed under subchapter two of this chapter shall be made
55 by the taxpayer by filing the return required pursuant to subdivision
56 one of section 11-605 of this chapter and the election to be taxed under
S. 6460 41 A. 9560
1 this subchapter shall be made by the taxpayer by filing the return
2 required pursuant to subdivision (a) of section 11-646 of this part. Any
3 election made pursuant to this paragraph shall be irrevocable and shall
4 apply to each subsequent taxable year beginning on or after January
5 first, two thousand six and before January first, two thousand eight,
6 provided that the stock ownership requirements described in subparagraph
7 (i) of this paragraph are met or such corporation described in subpara-
8 graph (ii) of this paragraph continues as a financial subsidiary.
9 (3) For purposes of this section, a financial subsidiary means a
10 corporation (i) sixty-five percent or more of whose voting stock is
11 owned or controlled, directly or indirectly by a banking corporation
12 described in paragraph one, two or three of subdivision (a) of this
13 section and (ii) is described in section 5136A(g) of the revised stat-
14 utes of the United States or section 46 of the federal deposit insurance
15 act. For purposes of this subchapter, the term "banking corporation"
16 shall include a corporation electing to be taxed under this subchapter
17 pursuant to paragraph two of this subdivision for so long as such
18 election shall be in effect.
19 § 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
20 11-646 of the administrative code of the city of New York, as amended by
21 section 7 of part G of chapter 60 of the laws of 2004, is amended to
22 read as follows:
23 (iv) (A) Notwithstanding any provision of this paragraph, any bank
24 holding company exercising its corporate franchise or doing business in
25 the city may make a return on a combined basis without seeking the
26 permission of the commissioner with any banking corporation exercising
27 its corporate franchise or doing business in the city in a corporate or
28 organized capacity sixty-five percent or more of whose voting stock is
29 owned or controlled, directly or indirectly, by such bank holding compa-
30 ny, for the first taxable year beginning on or after January first, two
31 thousand and before January first, two thousand [six] eight during which
32 such bank holding company registers for the first time under the federal
33 bank holding company act, as amended, and also elects to be a financial
34 holding company. In addition, for each subsequent taxable year beginning
35 after January first, two thousand and before January first, two thousand
36 [six] eight , any such bank holding company may file on a combined basis
37 without seeking the permission of the commissioner with any banking
38 corporation that is exercising its corporate franchise or doing business
39 in the city and sixty-five percent or more of whose voting stock is
40 owned or controlled, directly or indirectly, by such bank holding compa-
41 ny if either such banking corporation is exercising its corporate fran-
42 chise or doing business in the city in a corporate or organized capacity
43 for the first time during such subsequent taxable year, or sixty-five
44 percent or more of the voting stock of such banking corporation is owned
45 or controlled, directly or indirectly, by such bank holding company for
46 the first time during such subsequent taxable year. Provided however,
47 for each subsequent taxable year beginning after January first, two
48 thousand and before January first, two thousand [six] eight , a banking
49 corporation described in either of the two preceding sentences which
50 filed on a combined basis with any such bank holding company in a previ-
51 ous taxable year, must continue to file on a combined basis with such
52 bank holding company if such banking corporation, during such subsequent
53 taxable year, continues to exercise its corporate franchise or do busi-
54 ness in the city in a corporate or organized capacity and sixty-five
55 percent or more of such banking corporation's voting stock continues to
56 be owned or controlled, directly or indirectly, by such bank holding
S. 6460 42 A. 9560
1 company, unless the permission of the commissioner has been obtained to
2 file on a separate basis for such subsequent taxable year. Provided
3 further, however, for each subsequent taxable year beginning after Janu-
4 ary first, two thousand and before January first, two thousand [six]
5 eight , a banking corporation described in either of the first two
6 sentences of this clause which did not file on a combined basis with any
7 such bank holding company in a previous taxable year, may not file on a
8 combined basis with such bank holding company during any such subsequent
9 taxable year unless the permission of the commissioner has been obtained
10 to file on a combined basis for such subsequent taxable year.
11 (B) Notwithstanding any provision of this paragraph other than clause
12 (A) of this subparagraph, the commissioner may not require a bank hold-
13 ing company which, during a taxable year beginning on or after January
14 first, two thousand and before January first, two thousand [six] eight ,
15 registers for the first time during such taxable year under the federal
16 bank holding company act, as amended, and also elects to be a financial
17 holding company, to make a return on a combined basis for any taxable
18 year beginning on or after January first, two thousand and before Janu-
19 ary first, two thousand [six] eight with a banking corporation sixty-
20 five percent or more of whose voting stock is owned or controlled,
21 directly or indirectly, by such bank holding company.
22 § 8. This act shall take effect immediately.
23 PART Q
24 Section 1. Subdivision (b) of section 1101 of the tax law is amended by
25 adding two new paragraphs 29 and 30 to read as follows:
26 (29) New Energy Star appliance. A residential refrigerator, residen-
27 tial combination refrigerator/freezer, residential freezer, residential
28 clothes washer (but not including a combination washer/dryer unless the
29 clothes are washed and dried in the same compartment), residential light
30 fixture which uses exclusively a pin-based compact fluorescent bulb,
31 non-commercial ceiling fan with or without a light, non-commercial ceil-
32 ing fan light kit, non-commercial dishwasher or a room air conditioner,
33 which is sold for the first time at retail, provided such appliance
34 qualifies for, and is labeled with, an Energy Star label by the manufac-
35 turer, pursuant to an agreement among the manufacturer, the United
36 States environmental protection agency and the United States department
37 of energy.
38 (30) Home weatherization products. Caulking and weatherstripping, used
39 for weatherization purposes, window weatherproofing kits, and insulation
40 materials designed exclusively for insulating purposes, for use in a
41 residence.
42 § 2. Subdivision (a) of section 1115 of the tax law is amended by
43 adding a new paragraph 42 to read as follows:
44 (42) During the seven-day periods each year commencing on the last
45 Monday of January and ending on the first Sunday in February and
46 commencing on the Tuesday immediately preceding the first Monday in
47 September, known as Labor day, and ending on Labor day, new Energy Star
48 appliances and home weatherization products.
49 § 3. Clause 9 of subdivision (b) of section 1107 of the tax law, as
50 amended by section 78 of part A of chapter 56 of the laws of 1998, is
51 amended to read as follows:
52 (9) Except as otherwise provided by law, the [exemption] exemptions
53 provided for in [paragraph] paragraphs thirty and forty-two of subdivi-
S. 6460 43 A. 9560
1 sion (a) of section eleven hundred fifteen [relating to clothing and
2 footwear] of this article shall not apply.
3 § 4. Subdivision (f) of section 1109 of the tax law, as added by
4 section 118-a of part A of chapter 389 of the laws of 1997, is amended
5 to read as follows:
6 (f) The [exemption contained] exemptions provided for in [paragraph]
7 paragraphs thirty and forty-two of subdivision (a) of section eleven
8 hundred fifteen of this article shall not apply.
9 § 5. Section 1109 of the tax law is amended by adding a new subdivi-
10 sion (h) to read as follows:
11 (h) Notwithstanding any other provision of state or local law, ordi-
12 nance or resolution to the contrary: (1) In the event that a county,
13 city or school district located in the metropolitan commuter transporta-
14 tion district imposes taxes pursuant to the authority of subpart B of
15 part one of article twenty-nine of this chapter and elects to provide
16 the new Energy Star appliances and home weatherization products
17 exemption authorized in paragraph one of subdivision (a) of section
18 twelve hundred ten of this chapter, or a city located in such district
19 in which the taxes provided for in section eleven hundred seven of this
20 part are in effect elects to provide such new Energy Star appliances and
21 home weatherization products exemption from such taxes pursuant to the
22 authority of subdivision (o) of section twelve hundred ten of this chap-
23 ter or the taxes provided for in section eleven hundred eight of this
24 part are in effect in a city located in such district, the exemptions
25 provided by paragraph forty-two of subdivision (a) of section eleven
26 hundred fifteen of this article shall be applicable in such portion of
27 the metropolitan commuter transportation district in which such county,
28 city or school district is located. The commissioner shall determine and
29 certify to the comptroller the amount of revenue forgone at the rate of
30 three-eighths of one percent under this section in such county, city or
31 school district on account of sales of new Energy Star appliances and
32 home weatherization products in such county, city or school district.
33 (2) Commencing with the sales tax quarterly period which commences on
34 June first, two thousand six, the commissioner shall make such determi-
35 nations and certifications on the twelfth day of the month following the
36 month in which sales tax quarterly returns are due under section eleven
37 hundred thirty-six of this article with respect to such quarterly period
38 for as long as such new Energy Star appliances and home weatherization
39 products exemption from such taxes imposed pursuant to the authority of
40 article twenty-nine of this chapter or by section eleven hundred seven
41 or eleven hundred eight of this part is in effect. Neither the commis-
42 sioner nor the comptroller shall be held liable for any inaccuracy in
43 such determinations and certifications. Such determinations and certif-
44 ications may be based on such information as may be available to the
45 commissioner at the time such determinations and certifications must be
46 made under this subdivision and may be estimated on the basis of
47 percentages or other indices calculated from distributions from prior
48 periods. The commissioner shall be authorized to require such informa-
49 tion as the commissioner deems necessary to comply with the requirements
50 of this subdivision from persons required to file returns under such
51 section eleven hundred thirty-six of this article.
52 (3) By the fifteenth day of the month in which the commissioner has
53 made the certifications to the comptroller described in paragraph two of
54 this subdivision, the comptroller shall bill any county, city or school
55 district in such metropolitan commuter transportation district which
56 provides such new Energy Star appliances and home weatherization
S. 6460 44 A. 9560
1 products exemption, and any city in such district in which the taxes
2 imposed by section eleven hundred seven of this part are in effect which
3 has elected to provide such new Energy Star appliances and home weather-
4 ization products exemption, and any city in such district in which the
5 taxes imposed by section eleven hundred eight of this part are in
6 effect, an amount equal to one-half of the amount certified to the comp-
7 troller by the commissioner in respect of such county, city or school
8 district; and such county, city or school district shall pay the amount
9 of such bill to the comptroller by the twenty-fifth day of such month.
10 The comptroller shall deposit any such amounts received in the mass
11 transportation operating assistance fund established by section eighty-
12 eight-a of the state finance law to the credit of the metropolitan mass
13 transportation operating assistance account therein.
14 (4) In the event that a county, city or school district imposing a tax
15 pursuant to the authority of subpart B of part one of article twenty-
16 nine of this chapter does not pay in full a bill described in paragraph
17 three of this subdivision by the twenty-fifth day of the month described
18 in paragraphs two and three of this subdivision, the comptroller shall
19 deduct any amount not paid from the amount of the next payment or
20 payments due such county, city or school district pursuant to subdivi-
21 sion (c) of section twelve hundred sixty-one of this chapter until such
22 amount not paid has been recovered. The comptroller shall deposit the
23 amounts so deducted and recovered in the mass transportation operating
24 assistance fund to be credited as provided in paragraph three of this
25 subdivision.
26 (5) In the event that a city in which the taxes imposed by section
27 eleven hundred seven of this part are in effect does not pay in full a
28 bill described in paragraph three of this subdivision by the twenty-
29 fifth day of the month described in paragraphs two and three of this
30 subdivision, the comptroller shall deduct any amount not paid from the
31 amount of the next payment or payments due such city, with respect to
32 taxes, penalties and interest imposed pursuant to the authority of
33 section twelve hundred twelve-a of this chapter, pursuant to subdivision
34 (c) of section twelve hundred sixty-one of this chapter, until such
35 amount not paid has been recovered. The comptroller shall deposit the
36 amounts so deducted and recovered in the mass transportation operating
37 assistance fund to be credited as provided in paragraph three of this
38 subdivision.
39 (6) In the event that a city in which the taxes imposed by section
40 eleven hundred eight of this part are in effect does not pay in full a
41 bill described in paragraph three of this subdivision by the twenty-
42 fifth day of the month described in paragraphs two and three of this
43 subdivision, the comptroller shall deduct any amount not paid from the
44 amount of any other moneys due such city from the comptroller, not
45 otherwise pledged, dedicated or encumbered pursuant to other state law,
46 until such amount not paid has been recovered. The comptroller shall
47 deposit the amounts so deducted and recovered in the mass transportation
48 operating assistance fund to be credited as provided in paragraph three
49 of this subdivision.
50 (7) The commissioner shall certify the amount of any over calculation
51 or under calculation of any certification required to be made to the
52 comptroller under paragraph three of this subdivision as soon after its
53 discovery as reasonably possible and subsequent bills to a city, county
54 or school district to which the over calculation or under calculation
55 relates shall be adjusted accordingly, provided that the comptroller may
56 adjust such number of subsequent bills as the comptroller shall consider
S. 6460 45 A. 9560
1 reasonable in view of the amount of the adjustment and all other facts
2 and circumstances.
3 (8) On the same date that the comptroller is required to bill a coun-
4 ty, city or school district an amount as provided in paragraph three of
5 this subdivision, the comptroller shall, after having first made any
6 deposits required by section ninety-two-r of the state finance law and
7 only to the extent that there are moneys remaining after having made
8 such required deposits, withdraw from the state treasury, to the debit
9 of the general fund, an amount equal to the total of the amounts
10 required to be billed to counties, cities and school districts pursuant
11 to paragraph three of this subdivision and deposit such total amount in
12 the mass transportation operating assistance fund to be credited as
13 provided in such paragraph three. The amount of any over calculation or
14 under calculation determined in paragraph seven of this subdivision
15 shall likewise be applied to the amounts required to be deposited under
16 this paragraph, so that the amounts deposited under this paragraph equal
17 the total of the amounts required to be billed to counties, cities and
18 school districts under paragraph three of this subdivision, as adjusted,
19 pursuant to paragraph seven of this subdivision.
20 § 6. Subparagraph (i) of paragraph 1 of subdivision (a) of section
21 1210 of the tax law, as separately amended by chapters 285 and 306 and
22 as designated by chapter 710 of the laws of 2005, is amended to read as
23 follows:
24 (i) Either, all of the taxes described in article twenty-eight of this
25 chapter, at the same uniform rate, as to which taxes all provisions of
26 the local laws, ordinances or resolutions imposing such taxes shall be
27 identical, except as to rate and except as otherwise provided herein,
28 with the corresponding provisions in such article twenty-eight, includ-
29 ing the definition and exemption provisions of such article, so far as
30 the provisions of such article twenty-eight can be made applicable to
31 the taxes imposed by such city or county and with such limitations and
32 special provisions as are set forth in this article. However, any local
33 law enacted by any city of one million or more, imposing the taxes
34 authorized by this subdivision, shall omit the exemption provided in
35 subdivision (c) of section eleven hundred fifteen of this chapter inso-
36 far as it applies to fuel, gas, electricity, refrigeration and steam,
37 and gas, electric, refrigeration and steam service of whatever nature
38 for use or consumption directly and exclusively in the production of
39 gas, electricity, refrigeration or steam and, unless such city elects
40 otherwise, the provision for refund or credit contained in clause six of
41 subdivision (a) of section eleven hundred nineteen of this chapter , and
42 may omit (A) the exception provided in paragraph three of subdivision
43 (c) of section eleven hundred five of this chapter for receipts from
44 laundering, dry-cleaning, tailoring, weaving, pressing, shoe repairing
45 and shoe shining and (B) the exception provided in paragraph one of
46 subdivision (f) of section eleven hundred five of this chapter For
47 charges to a patron for admission to, or use of, facilities for sporting
48 activities in which such patron is to be a participant, such as bowling
49 alleys and swimming pools. Furthermore, any local law enacted by a city
50 of one million or more imposing the taxes authorized by this subdivision
51 may impose the taxes described in paragraph six of subdivision (c) of
52 section eleven hundred five of this chapter at a rate in addition to the
53 rate prescribed by this section not to exceed two per centum in multi-
54 ples of one-half of one per centum. The taxes authorized under this
55 subdivision may not be imposed by a city or county unless the local law,
56 ordinance or resolution imposes such taxes so as to include all portions
S. 6460 46 A. 9560
1 and all types of receipts, charges or rents, subject to state tax under
2 sections eleven hundred five and eleven hundred ten of this chapter ,
3 except as provided in the following sentence. Any local law, ordinance
4 or resolution enacted by any city of less than one million or by any
5 county or school district, imposing the taxes authorized by this subdi-
6 vision, shall, notwithstanding any provision of law to the contrary,
7 exclude from the operation of such local taxes all sales of tangible
8 personal property for use or consumption directly and predominantly in
9 the production of tangible personal property, gas, electricity, refrig-
10 eration or steam, for sale, by manufacturing, processing, generating,
11 assembly, refining, mining or extracting; and all sales of tangible
12 personal property for use or consumption predominantly either in the
13 production of tangible personal property, for sale, by farming or in a
14 commercial horse boarding operation, or in both; and, unless such city,
15 county or school district elects otherwise, shall omit the provision for
16 credit or refund contained in clause six of subdivision (a) of section
17 eleven hundred nineteen of this chapter . Any local law, ordinance or
18 resolution enacted by any city, county or school district, imposing the
19 taxes authorized by this subdivision, shall omit the residential solar
20 energy systems equipment exemption provided for in subdivision (ee), the
21 clothing and footwear exemption provided for in paragraph thirty of
22 subdivision (a) and the qualified empire zone enterprise exemptions
23 provided for in subdivision (z) and the new Energy Star appliances and
24 home weatherization products exemption provided for in paragraph forty-
25 two of subdivision (a) of section eleven hundred fifteen of this
26 chapter , unless such city, county or school district elects otherwise as
27 to either such residential solar energy systems equipment exemption or
28 such clothing and footwear exemption or such qualified empire zone
29 enterprise exemptions or such new Energy Star appliances and home weath-
30 erization products exemption ; provided that if such a city having a
31 population of one million or more enacts the resolution described in
32 subdivision (k) of this section or repeals such resolution or enacts the
33 resolution described in subdivision (l) of this section or repeals such
34 resolution or enacts the resolution described in subdivision (n) of this
35 section or repeals such resolution or enacts the resolution described in
36 subdivision (o) of this section or repeals such resolution , such resol-
37 ution or repeal shall also be deemed to amend any local law, ordinance
38 or resolution enacted by such a city imposing such taxes pursuant to the
39 authority of this subdivision, whether or not such taxes are suspended
40 at the time such city enacts its resolution pursuant to subdivision (k),
41 (l) [or], (n) or (o) of this section or at the time of any such repeal;
42 provided, further, that any such local law, ordinance or resolution and
43 section eleven hundred seven of this chapter , as deemed to be amended in
44 the event a city of one million or more enacts a resolution pursuant to
45 the authority of subdivision (k), (l) [or], (n) or (o) of this section,
46 shall be further amended, as provided in section twelve hundred eighteen
47 of this subpart , so that the residential solar energy systems equipment
48 exemption or the clothing and footwear exemption or the qualified empire
49 zone enterprise exemptions or the new Energy Star appliances and home
50 weatherization products exemption in any such local law, ordinance or
51 resolution or in such section eleven hundred seven of this chapter are
52 the same, as the case may be, as the residential solar energy systems
53 equipment exemption provided for in subdivision (ee), the clothing and
54 footwear exemption in paragraph thirty of subdivision (a) or the quali-
55 fied empire zone enterprise exemptions in subdivision (z) or the new
56 Energy Star appliances and home weatherization products exemption
S. 6460 47 A. 9560
1 provided for in paragraph forty-two of subdivision (a) of section eleven
2 hundred fifteen of this chapter . Notwithstanding any other provision of
3 law to the contrary, clothing and footwear for which the receipt or
4 consideration given or contracted to be given is less than one hundred
5 ten dollars per article of clothing, per pair of shoes or other articles
6 of footwear or per item used or consumed to make or repair such clothing
7 and which becomes a physical component part of such clothing shall be
8 exempt from sales and compensating use taxes imposed by a city of one
9 million or more.
10 § 7. Subparagraph (i) of paragraph 1 of subdivision (a) of section
11 1210 of the tax law, as amended by chapter 306 and as designated by
12 chapter 710 of the laws of 2005, is amended to read as follows:
13 (i) Either, all of the taxes described in article twenty-eight of this
14 chapter, at the same uniform rate, as to which taxes all provisions of
15 the local laws, ordinances or resolutions imposing such taxes shall be
16 identical, except as to rate and except as otherwise provided herein,
17 with the corresponding provisions in such article twenty-eight, includ-
18 ing the definition and exemption provisions of such article, so far as
19 the provisions of such article twenty-eight can be made applicable to
20 the taxes imposed by such city or county and with such limitations and
21 special provisions as are set forth in this article. However, any local
22 law enacted by any city of one million or more, imposing the taxes
23 authorized by this subdivision, shall omit the exemption provided in
24 subdivision (c) of section eleven hundred fifteen of this chapter inso-
25 far as it applies to fuel, gas, electricity, refrigeration and steam,
26 and gas, electric, refrigeration and steam service of whatever nature
27 for use or consumption directly and exclusively in the production of
28 gas, electricity, refrigeration or steam and, unless such city elects
29 otherwise, the provision for refund or credit contained in clause six of
30 subdivision (a) of section eleven hundred nineteen of this chapter , and
31 may omit (A) the exception provided in paragraph three of subdivision
32 (c) of section eleven hundred five of this chapter for receipts from
33 laundering, dry-cleaning, tailoring, weaving, pressing, shoe repairing
34 and shoe shining and (B) the exception provided in paragraph one of
35 subdivision (f) of section eleven hundred five of this chapter For
36 charges to a patron for admission to, or use of, facilities for sporting
37 activities in which such patron is to be a participant, such as bowling
38 alleys and swimming pools. Furthermore, any local law enacted by a city
39 of one million or more imposing the taxes authorized by this subdivision
40 may impose the taxes described in paragraph six of subdivision (c) of
41 section eleven hundred five of this chapter at a rate in addition to the
42 rate prescribed by this section not to exceed two per centum in multi-
43 ples of one-half of one per centum. The taxes authorized under this
44 subdivision may not be imposed by a city or county unless the local law,
45 ordinance or resolution imposes such taxes so as to include all portions
46 and all types of receipts, charges or rents, subject to state tax under
47 sections eleven hundred five and eleven hundred ten of this chapter ,
48 except as provided in the following sentence. Any local law, ordinance
49 or resolution enacted by any city of less than one million or by any
50 county or school district, imposing the taxes authorized by this subdi-
51 vision, shall, notwithstanding any provision of law to the contrary,
52 exclude from the operation of such local taxes all sales of tangible
53 personal property for use or consumption directly and predominantly in
54 the production of tangible personal property, gas, electricity, refrig-
55 eration or steam, for sale, by manufacturing, processing, generating,
56 assembly, refining, mining or extracting; and all sales of tangible
S. 6460 48 A. 9560
1 personal property for use or consumption predominantly either in the
2 production of tangible personal property, for sale, by farming or in a
3 commercial horse boarding operation, or in both; and, unless such city,
4 county or school district elects otherwise, shall omit the provision for
5 credit or refund contained in clause six of subdivision (a) of section
6 eleven hundred nineteen of this chapter . Any local law, ordinance or
7 resolution enacted by any city, county or school district, imposing the
8 taxes authorized by this subdivision, shall omit the residential solar
9 energy systems equipment exemption provided for in subdivision (ee), the
10 clothing and footwear exemption provided for in paragraph thirty of
11 subdivision (a) and the qualified empire zone enterprise exemptions
12 provided for in subdivision (z) and the new Energy Star appliances and
13 home weatherization products exemption provided for in paragraph forty-
14 two of subdivision (a) of section eleven hundred fifteen of this
15 chapter , unless such city, county or school district elects otherwise as
16 to either such residential solar energy systems equipment exemption or
17 such clothing and footwear exemption or such qualified empire zone
18 enterprise exemptions or such new Energy Star appliances and home weath-
19 erization products exemption ; provided that if such a city having a
20 population of one million or more enacts the resolution described in
21 subdivision (k) of this section or repeals such resolution or enacts the
22 resolution described in subdivision (l) of this section or repeals such
23 resolution or enacts the resolution described in subdivision (n) of this
24 section or repeals such resolution or enacts the resolution described in
25 subdivision (o) of this section or repeals such resolution , such resol-
26 ution or repeal shall also be deemed to amend any local law, ordinance
27 or resolution enacted by such a city imposing such taxes pursuant to the
28 authority of this subdivision, whether or not such taxes are suspended
29 at the time such city enacts its resolution pursuant to subdivision (k),
30 (l) [or], (n) or (o) of this section or at the time of any such repeal;
31 provided, further, that any such local law, ordinance or resolution and
32 section eleven hundred seven of this chapter , as deemed to be amended in
33 the event a city of one million or more enacts a resolution pursuant to
34 the authority of subdivision (k), (l) [or], (n) or (o) of this section,
35 shall be further amended, as provided in section twelve hundred eighteen
36 of this subpart , so that the residential solar energy systems equipment
37 exemption or the clothing and footwear exemption or the qualified empire
38 zone enterprise exemptions or the new Energy Star appliances and home
39 weatherization products exemption in any such local law, ordinance or
40 resolution or in such section eleven hundred seven of this chapter are
41 the same, as the case may be, as the residential solar energy systems
42 equipment exemption provided for in subdivision (ee), the clothing and
43 footwear exemption in paragraph thirty of subdivision (a) or the quali-
44 fied empire zone enterprise exemptions in subdivision (z) or the new
45 Energy Star appliances and home weatherization products exemption
46 provided for in paragraph forty-two of subdivision (a) of section eleven
47 hundred fifteen of this chapter .
48 § 8. Subdivision (d) of section 1210 of the tax law, as amended by
49 section 12 of part GG of chapter 63 of the laws of 2000, is amended to
50 read as follows:
51 (d) A local law, ordinance or resolution imposing any tax pursuant to
52 this section, increasing or decreasing the rate of such tax, repealing
53 or suspending such tax, exempting from such tax the energy sources and
54 services described in paragraph three of subdivision (a) or of subdivi-
55 sion (b) of this section or changing the rate of tax imposed on such
56 energy sources and services or providing for the credit or refund
S. 6460 49 A. 9560
1 described in clause six of subdivision (a) of section eleven hundred
2 nineteen of this chapter must go into effect only on one of the follow-
3 ing dates: March first, June first, September first or December first;
4 provided, that a local law, ordinance or resolution providing for the
5 exemption described in paragraph thirty or the exemption described in
6 paragraph forty-two of subdivision (a) or providing for the exemptions
7 described in subdivision (z) of section eleven hundred fifteen of this
8 chapter or repealing any such exemption so provided and a resolution
9 enacted pursuant to the authority of subdivision (k) or (o) of this
10 section providing such exemption or subdivision (l) of this section
11 providing such exemptions or repealing such exemption or exemptions so
12 provided must go into effect only on March first. No such local law,
13 ordinance or resolution shall be effective unless a certified copy of
14 such law, ordinance or resolution is mailed by registered or certified
15 mail to the commissioner at the commissioner's office in Albany at least
16 ninety days prior to the date it is to become effective. However, the
17 commissioner may waive and reduce such ninety-day minimum notice
18 requirement to a mailing of such certified copy by registered or certi-
19 fied mail within a period of not less than thirty days prior to such
20 effective date if the commissioner deems such action to be consistent
21 with the commissioner's duties under section twelve hundred fifty of
22 this article and the commissioner acts by resolution. Where the
23 restriction provided for in section twelve hundred twenty-three of this
24 article as to the effective date of a tax and the notice requirement
25 provided for therein are applicable and have not been waived, the
26 restriction and notice requirement in section twelve hundred twenty-
27 three of this article shall also apply.
28 § 9. Section 1210 of the tax law is amended by adding a new subdivi-
29 sion (o) to read as follows:
30 (o) Notwithstanding any other provision of state or local law, ordi-
31 nance or resolution to the contrary:
32 (1) Any city having a population of one million or more in which the
33 taxes imposed by section eleven hundred seven of this chapter are in
34 effect, acting through its local legislative body, is hereby authorized
35 and empowered to elect to provide the exemption from such taxes for the
36 same new Energy Star appliances and home weatherization products exempt
37 from state sales and compensating use taxes, during the same periods
38 each year, described in paragraph forty-two of subdivision (a) of
39 section eleven hundred fifteen of this chapter by enacting a resolution
40 exactly in the form set forth in paragraph two of this subdivision;
41 whereupon, upon compliance with the provisions of subdivisions (d) and
42 (e) of this section, such enactment of such resolution shall be deemed
43 to be an amendment to section eleven hundred seven of this chapter and
44 such section eleven hundred seven shall be deemed to incorporate such
45 exemption as if it had been duly enacted by the state legislature and
46 approved by the governor.
47 (2) Form of Resolution: Be it enacted by the (insert proper title of
48 local legislative body) as follows:
49 Section one. Receipts from sales of and consideration given or
50 contracted to be given for, or for the use of, new Energy Star appli-
51 ances and home weatherization products exempt from state sales and
52 compensating use taxes pursuant to paragraph 42 of subdivision (a) of
53 section 1115 of the New York Tax Law shall also be exempt from sales and
54 compensating use taxes imposed in this jurisdiction, during the same
55 periods set forth in such paragraph 42.
S. 6460 50 A. 9560
1 Section two. This resolution shall take effect March 1, (insert the
2 year, but not earlier than the year 2007) and shall apply to sales made
3 and uses occurring during the applicable exemption periods each year, in
4 accordance with the applicable transitional provisions of sections 1106
5 and 1217 of the New York Tax Law.
6 § 10. Notwithstanding any other provision of state or local law, ordi-
7 nance or resolution to the contrary: (a) Any county or city imposing
8 sales and compensating use taxes pursuant to the authority of subpart B
9 of part I of article 29 of the tax law, acting through its local legis-
10 lative body, is hereby authorized and empowered to elect to provide the
11 exemption from such taxes for new Energy Star appliances and home weath-
12 erization products exempt from state sales and compensating use taxes
13 described in paragraph 42 of subdivision (a) of section 1115 of the tax
14 law, for the periods described therein, whether such taxes are imposed
15 by local law, ordinance or resolution, by enacting a resolution exactly
16 in the form set forth in subdivision (c) of this section; whereupon,
17 upon compliance with the provisions of subdivision (d) of this section,
18 such enactment of such resolution shall be deemed to amend such local
19 law, ordinance or resolution imposing such taxes, and such local law,
20 ordinance or resolution shall thenceforth be deemed to incorporate such
21 exemptions.
22 (b) Any city of one million or more in which the taxes imposed by
23 section 1107 of the tax law are in effect, acting through its local
24 legislative body, is hereby authorized and empowered to elect to provide
25 the exemption from such taxes for the same new Energy Star appliances
26 and home weatherization products exempt from state sales and compensat-
27 ing use taxes described in paragraph 42 of subdivision (a) of section
28 1115 of the tax law, for the periods described therein, by enacting a
29 resolution exactly in the form set forth in subdivision (c) of this
30 section; whereupon, upon compliance with the provisions of subdivision
31 (d) of this section, such enactment of such resolution shall be deemed
32 to amend such section 1107 of the tax law and such section 1107 shall
33 thenceforth be deemed to incorporate such exemption for such periods as
34 if it had been duly enacted by the state legislature and approved by the
35 governor and such resolution shall also be deemed to amend any local
36 law, ordinance or resolution enacted by such a city imposing such taxes
37 pursuant to the authority of subdivision (a) of section 1210 of the tax
38 law, whether or not such taxes are suspended at the time such city
39 enacts its resolution.
40 (c) Form of Resolution:
41 Be it enacted by the (insert proper title of local legislative body)
42 as follows:
43 Section one: The (county or city) of (insert locality's name) hereby
44 elects the two annual one-week new Energy Star appliance and home weath-
45 erization products exemption periods commencing in the fall of 2006.
46 Section two: This resolution shall take effect immediately and shall
47 apply to sales made and uses occurring during the applicable periods
48 each year, in accordance with applicable transitional provisions of the
49 New York Tax Law.
50 (d) Subdivision (h) of section 1109 of the tax law shall apply if a
51 county or city located in the metropolitan commuter transportation
52 district provides the two one-week exemption periods authorized by this
53 section.
54 (e) A resolution adopted pursuant to this section shall be effective
55 only if it is adopted exactly as set forth in subdivision (c) of this
56 section and such county or city adopts it by June 1, 2006, mails a
S. 6460 51 A. 9560
1 certified copy of it to the commissioner of taxation and finance by
2 certified mail by such date and otherwise complies with the requirements
3 of subdivisions (d) and (e) of section 1210 of the tax law.
4 § 11. This act shall take effect immediately and shall apply to sales
5 made and uses occurring during exemption periods on or after such date
6 in accordance with the applicable transitional provisions of sections
7 1106 and 1217 of the tax law, provided that the amendments to paragraph
8 1 of subdivision (a) of section 1210 of the tax law made by section six
9 of this act shall be subject to the expiration and reversion of such
10 paragraph pursuant to section 4 of chapter 285 of the laws of 2005, as
11 amended, when upon such date the provisions of section seven of this act
12 shall take effect.
13 PART R
14 Section 1. Section 606 of the tax law is amended by adding a new
15 subsection (jj) to read as follows:
16 (jj) Home heating cost. (1) Allowance of credit. A taxpayer who
17 attained the age of sixty-five and whose federal adjusted gross income
18 does not exceed seventy-five thousand dollars for the taxable year shall
19 be allowed a credit for taxable years beginning on or after January
20 first, two thousand six and before January first, two thousand seven,
21 against the tax imposed by this article for the cost of fuel directly
22 associated with home heating that is paid by a taxpayer with respect to
23 his or her principal residence, if such residence is located in this
24 state and such fuel costs equal or exceed seven and one-half percent of
25 his or her federal adjusted gross income. The amount of the credit shall
26 be equal to twenty-five percent of such fuel costs but the credit shall
27 not exceed five hundred dollars.
28 (2) Multiple taxpayers. If the principal residence is shared by two or
29 more taxpayers, the amount of the credit allowable under this subsection
30 for each such taxpayer shall be prorated according to the percentage of
31 the total fuel cost paid by such taxpayer.
32 (3) Application of credit. If the amount of the credit allowed under
33 this subsection for any taxable year shall exceed the taxpayer's tax for
34 such year, the excess shall be treated as an overpayment of tax to be
35 credited or refunded in accordance with the provisions of section six
36 hundred eighty-six of this article, provided, however, that no interest
37 shall be paid thereon.
38 § 2. This act shall take effect immediately.
39 PART S
40 Section 1. Section 606 of the tax law is amended by adding a new
41 subsection (kk) to read as follows:
42 (kk) Home heating system credit. (1) Allowance of credit for replace-
43 ment or renovation. A taxpayer shall be allowed a credit for taxable
44 years beginning on or after January first, two thousand six and before
45 January first, two thousand seven against the tax imposed by this arti-
46 cle for the costs incurred during the taxable year by a taxpayer which
47 are directly associated with the replacement or renovation of an exist-
48 ing home heating system, in his or her principal residence, if such
49 residence is located in this state, provided such home heating system
50 after such replacement or renovation qualifies for, and is labeled with,
51 an Energy Star label by the manufacturer, pursuant to an agreement among
52 the manufacturer, the United States environmental protection agency and
S. 6460 52 A. 9560
1 the United States department of energy. The amount of the credit shall
2 be equal to fifty percent of the cost of such replacement or renovation
3 but such credit shall not exceed five hundred dollars.
4 (2) Multiple taxpayers. If the principal residence is shared by two or
5 more taxpayers, the amount of the credit allowable under this subsection
6 for each such eligible taxpayer shall be prorated according to the
7 percentage of the total expenditure for such replacement or renovation
8 incurred by each taxpayer.
9 (3) Application of credit. If the amount of the credit allowed under
10 this subsection for any taxable year shall exceed the taxpayer's tax for
11 such year, the excess shall be treated as an overpayment of tax to be
12 credited or refunded in accordance with the provisions of section six
13 hundred eighty-six of this article, provided, however, that no interest
14 shall be paid thereon.
15 § 2. This act shall take effect immediately.
16 PART T
17 Section 1. Section 210 of the tax law is amended by adding two new
18 subdivisions 38 and 39 to read as follows:
19 38. Small business energy credit. (a) Allowance of credit. A taxpayer
20 who is a small business taxpayer shall be allowed a credit for energy
21 costs, to be computed as hereinafter provided, against the tax imposed
22 by this article.
23 (b) Application of credit. A taxpayer which is a small business
24 taxpayer shall be allowed a credit for taxable years beginning on or
25 after January first, two thousand six and before January first, two
26 thousand eight against the tax imposed by this article for the energy
27 costs incurred during the taxable year by such taxpayer, which are
28 directly associated with a small business, provided such energy costs
29 exceed ten percent of the taxpayer's total expenses and deductions
30 incurred in such small business. The amount of the credit shall be equal
31 to twenty-five percent of the energy costs of such small business, but
32 such credit shall not exceed three thousand dollars.
33 (c) For purposes of this subdivision, the term "small business taxpay-
34 er" shall have the same meaning as provided for under paragraph (f) of
35 subdivision one of this section; provided, however, that such taxpayer
36 shall have no more than one hundred employees, including general execu-
37 tive officers, during the taxable year in which the credit is allowed.
38 If the taxpayer is part of an affiliated group, as defined in section
39 one thousand five hundred four of the internal revenue code, the total
40 number of all employees of such affiliated group shall not exceed one
41 hundred.
42 (d) A taxpayer which is a partner in a partnership shall not claim a
43 credit under this subdivision with respect to its share of the energy
44 costs of the partnership unless such taxpayer qualifies as a small busi-
45 ness taxpayer.
46 (e) For purposes of this subdivision, the term "energy costs" shall
47 exclude the cost of electricity and the cost of fuel used in motor vehi-
48 cles and in other transportation.
49 (f) The credit allowed under this subdivision for any taxable year
50 shall not reduce the tax due for such year to less than the higher of
51 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
52 this section. If the amount of credit allowed under this subdivision for
53 any taxable year reduces the tax to such amount, any amount of credit
54 thus not deductible in such taxable year shall be treated as an overpay-
S. 6460 53 A. 9560
1 ment of tax to be credited or refunded in accordance with the provisions
2 of section one thousand eighty-six of this chapter. Provided, however,
3 the provisions of subsection (c) of section one thousand eighty-eight of
4 this chapter notwithstanding, no interest shall be paid thereon.
5 39. Eligible farmer energy credit. (a) Allowance of credit. A taxpay-
6 er who is an eligible farmer shall be allowed a credit for energy costs,
7 to be computed as hereinafter provided, against the tax imposed by this
8 article.
9 (b) Application of credit. A taxpayer who is an eligible farmer shall
10 be allowed a credit for taxable years beginning on or after January
11 first, two thousand six and before January first, two thousand eight
12 against the tax imposed by this article for the energy costs incurred
13 during the taxable year by such taxpayer, which are directly associated
14 with the production of goods for market, provided such energy costs
15 exceed five percent of the taxpayer's total expenses and deductions
16 incurred in the production of goods for market. The amount of the credit
17 shall be equal to twenty-five percent of the energy costs incurred in
18 the production of goods for market, but such credit shall not exceed
19 three thousand dollars.
20 (c) For purposes of this subdivision, the term "eligible farmer" shall
21 have the same meaning as provided for under paragraph (b) of subdivision
22 twenty-two of this section.
23 (d) For purposes of this subdivision, the term "energy costs" shall
24 include the cost of electricity and shall exclude the cost of fuel used
25 for transportation, other than fuel used in tractors or other farm
26 machinery.
27 (e) The credit allowed under this subdivision for any taxable year
28 shall not reduce the tax due for such year to less than the higher of
29 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
30 this section. If the amount of credit allowed under this subdivision for
31 any taxable year reduces the tax to such amount, any amount of credit
32 thus not deductible in such taxable year shall be treated as an overpay-
33 ment of tax to be credited or refunded in accordance with the provisions
34 of section one thousand eighty-six of this chapter. Provided, however,
35 the provisions of subsection (c) of section one thousand eighty-eight of
36 this chapter notwithstanding, no interest shall be paid thereon.
37 § 2. Section 606 of the tax law is amended by adding two new
38 subsections (ll) and (mm) to read as follows:
39 (ll) Small business energy credit. (1) Allowance of credit. A taxpay-
40 er who is a small business taxpayer shall be allowed a credit for taxa-
41 ble years beginning on or after January first, two thousand six and
42 before January first, two thousand eight against the tax imposed by this
43 article for the energy costs incurred during the taxable year by such
44 taxpayer, which are directly associated with a small business, provided
45 such energy costs exceed ten percent of the taxpayer's total expenses
46 and deductions incurred in such small business. The amount of the credit
47 shall be equal to twenty-five percent of the energy costs of such small
48 business, but such credit shall not exceed three thousand dollars for
49 the taxable year.
50 (2)(A) For purposes of this subsection, the term "small business"
51 shall mean a taxpayer who has net business income from his or her trade
52 or business of less than three hundred ninety thousand dollars during
53 the taxable year, and who employs no more than one hundred employees,
54 including the taxpayer if the taxpayer is the sole proprietor of such
55 trade or business. If the taxpayer has income during the taxable year
56 from more than one trade or business, the sum of the net business
S. 6460 54 A. 9560
1 incomes of such trades or businesses for the taxable year shall be less
2 than three hundred ninety thousand dollars, and the total number of
3 employees of such trades or businesses shall not exceed one hundred.
4 (B) A taxpayer who is a partner in a partnership shall not be allowed
5 to claim the credit allowed under this subsection with respect to the
6 partners' share of the energy costs of the partnership unless
7 (i) the federal net income of such partnership is less than three
8 hundred ninety thousand dollars for the taxable year,
9 (ii) the sum of the number of employees of the partnership and the
10 number of partners of the partnership for the taxable year does not
11 exceed one hundred,
12 (iii) the value of the capital accounts of the partners' at the end of
13 the taxable year does not exceed one million dollars, and
14 (iv) the gross receipts or sales of the partnership exceed ten thou-
15 sand dollars.
16 (C) For purposes of this subsection the term "small business" shall
17 not include any taxpayer with gross receipts or sales from a trade or
18 business of less than ten thousand dollars.
19 (D) For purposes of this subsection, the term "energy costs" shall
20 exclude the cost of electricity, and fuel used in motor vehicles and
21 used in other transportation.
22 (3) Application of credit. If the amount of the credit allowed under
23 this subsection for any taxable year shall exceed the taxpayer's tax for
24 such year, the excess shall be treated as an overpayment of tax to be
25 credited or refunded in accordance with the provisions of section six
26 hundred eighty-six of this article, provided, however, that no interest
27 shall be paid thereon.
28 (mm) Eligible farmer energy credit. (1) Allowance of credit. A taxpay-
29 er who is an eligible farmer shall be allowed a credit for taxable years
30 beginning on or after January first, two thousand six and before January
31 first, two thousand eight against the tax imposed by this article for
32 the energy costs incurred during the taxable year by such taxpayer,
33 which are directly associated with the production of goods for market,
34 provided such energy costs exceed five percent of the taxpayer's total
35 expenses and deductions incurred during the taxable year in the
36 production of goods for market. The amount of the credit shall be equal
37 to twenty-five percent of the energy costs incurred in the production of
38 goods for market, but such credit shall not exceed three thousand
39 dollars for the taxable year.
40 (2) For purposes of this subsection, the term "eligible farmer" shall
41 have the same meaning as provided for under paragraph two of subsection
42 (n) of this section.
43 (3) For the purposes of this subsection the term "energy costs" shall
44 include the cost of electricity and shall exclude the cost of fuel used
45 for transportation, other than fuel used in tractors or other farm
46 machinery.
47 (4) Application of credit. If the amount of the credit allowed under
48 this subsection for any taxable year shall exceed the taxpayer's tax for
49 such year, the excess shall be treated as an overpayment of tax to be
50 credited or refunded in accordance with the provisions of section six
51 hundred eighty-six of this article, provided, however, that no interest
52 shall be paid thereon.
53 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
54 of the tax law, as separately amended by chapters 446 and 537 of the
55 laws of 2005, is amended to read as follows:
S. 6460 55 A. 9560
1 (B) shall be treated as the owner of a new business with respect to
2 such share if the corporation qualifies as a new business pursuant to
3 paragraph (j) of subdivision twelve of section two hundred ten of this
4 chapter.
5 The corporation's
6 With respect to the credit base under
7 following credit section two hundred ten
8 under this section: or section fourteen
9 hundred fifty-six of this
10 chapter is:
11 Investment tax credit Investment credit base
12 under subsection (a) or qualified
13 rehabilitation
14 expenditures under
15 subdivision twelve of
16 section two hundred ten
17 Empire zone Cost or other basis
18 investment tax credit under subdivision
19 under subsection (j) twelve-B
20 of section two hundred
21 ten
22 Empire zone Eligible wages under
23 wage tax credit subdivision nineteen of
24 under subsection (k) section two hundred ten
25 or subsection (e) of
26 section fourteen hundred
27 fifty-six
28 Empire zone Qualified investments
29 capital tax credit and contributions under
30 under subsection (l) subdivision twenty of
31 section two hundred ten
32 or subsection (d) of
33 section fourteen hundred
34 fifty-six
35 Agricultural property tax Allowable school
36 credit under subsection (n) district property taxes under
37 subdivision twenty-two of
38 section two hundred ten
39 Credit for employment Qualified first-year wages or
40 of persons with dis- qualified second-year wages
41 abilities under under subdivision
42 subsection (o) twenty-three of section
43 two hundred ten
44 or subsection (f)
45 of section fourteen
46 hundred fifty-six
S. 6460 56 A. 9560
1 Employment incentive Applicable investment credit
2 credit under subsec- base under subdivision
3 tion (a-1) twelve-D of section two
4 hundred ten
5 Empire zone Applicable investment
6 employment credit under sub-
7 incentive credit under division twelve-C
8 subsection (j-1) of section two hundred ten
9 Alternative fuels credit Cost under subdivision
10 under subsection (p) twenty-four of section two
11 hundred ten
12 Qualified emerging Applicable credit base
13 technology company under subdivision twelve-E
14 employment credit of section two hundred ten
15 under subsection (q)
16 Qualified emerging Qualified investments under
17 technology company subdivision twelve-F of
18 capital tax credit section two hundred ten
19 under subsection (r)
20 Credit for purchase of an Cost of an automated
21 automated external defibrillator external defibrillator under
22 under subsection (s) subdivision twenty-five of
23 section two hundred ten
24 or subsection (j) of section
25 fourteen hundred fifty-six
26 Low-income housing Credit amount under
27 credit under subsection (x) subdivision thirty
28 of section two hundred ten or
29 subsection (l) of section
30 fourteen hundred fifty-six
31 Credit for transportation Amount of credit under sub-
32 improvement contributions division thirty-two of section
33 under subsection (z) two hundred ten or subsection
34 (n) of section fourteen
35 hundred fifty-six
36 IMB credit for energy Amount of credit
37 taxes under sub- under subdivision
38 section (t-1) twenty-six-a of
39 section two hundred ten
40 QEZE credit for real property Amount of credit under
41 taxes under subsection (bb) subdivision twenty-seven of
42 section two hundred ten or
43 subsection (o) of section
44 fourteen hundred fifty-six
45 QEZE tax reduction credit Amount of benefit period
46 under subsection (cc) factor, employment increase factor
S. 6460 57 A. 9560
1 and zone allocation
2 factor (without regard
3 to pro ration) under
4 subdivision twenty-eight of
5 section two hundred ten or
6 subsection (p) of section
7 fourteen hundred fifty-six
8 and amount of tax factor
9 as determined under
10 subdivision (f) of section sixteen
11 Green building credit Amount of green building credit
12 under subsection (y) under subdivision thirty-one
13 of section two hundred ten
14 or subsection (m) of section
15 fourteen hundred fifty-six
16 Credit for long-term Qualified costs under
17 care insurance premiums subdivision twenty-five-a of
18 under subsection (aa) section two hundred ten
19 or subsection (k) of section
20 fourteen hundred fifty-six
21 Brownfield redevelopment Amount of credit
22 credit under subsection under subdivision
23 (dd) thirty-three of section
24 two hundred ten
25 or subsection (q) of
26 section fourteen hundred
27 fifty-six
28 Remediated brownfield Amount of credit under
29 credit for real property subdivision thirty-four
30 taxes for qualified of section two hundred
31 sites under subsection ten or subsection (r) of
32 (ee) section fourteen hundred
33 fifty-six
34 Environmental Amount of credit under
35 remediation subdivision thirty-five of
36 insurance credit under section two hundred
37 subsection (ff) ten or subsection
38 (s) of section
39 fourteen hundred
40 fifty-six
41 Empire state film production Amount of credit for qualified
42 credit under subsection (gg) production costs in production
43 of a qualified film under
44 subdivision thirty-six of
45 section two hundred ten
46 Qualified emerging Qualifying expenditures and
47 technology company facilities, development activities under
48 operations and training credit subdivision twelve-G of section
49 under subsection (nn) two hundred ten
S. 6460 58 A. 9560
1 Security training tax Amount of credit
2 credit under under subdivision thirty-seven
3 subsection (ii) of section two hundred ten or
4 under subsection (t) of
5 section fourteen hundred fifty-six
6 Credit for qualified fuel Amount of credit under
7 cell electric generating equipment subdivision thirty-seven
8 expenditures under subsection (g-2) of section two hundred ten
9 or subsection (t) of
10 section fourteen hundred
11 fifty-six
12 Small business energy Qualifying energy costs
13 credit under subsection (ll) under subdivision thirty-eight
14 of section two hundred ten
15 Eligible farmer energy Qualifying energy costs
16 credit under subsection (mm) under subdivision thirty-nine
17 of section two hundred ten
18 § 4. This act shall take effect immediately; provided, however that
19 the IMB credit for energy taxes under subsection (t-1) and the state
20 film production credit under subsection (gg) of section 606 of the tax
21 law contained in section three of this act shall expire on the same date
22 as provided in subdivision (a) of section 49 of part Y of chapter 63 of
23 the laws of 2000, as amended, and section 9 of part P of chapter 60 of
24 the laws of 2004, as amended, respectively.
25 PART U
26 Section 1. Section 187-b of the tax law, as added by chapter 310 of the
27 laws of 2005, is amended to read as follows:
28 § 187-b. Alternative fuels credit. 1. General. A taxpayer shall be
29 allowed a credit, to be credited against the taxes imposed under
30 sections one hundred eighty-three, one hundred eighty-four, and one
31 hundred eighty-five of this article. Such credit, to be computed as
32 hereinafter provided, shall be allowed for clean-fuel vehicle refueling
33 property, clean-fuel vehicle property and qualified hybrid vehicles
34 placed in service during the taxable year and for biofuel production .
35 Provided, however, that the amount of such credit allowable against the
36 tax imposed by section one hundred eighty-four of this article shall be
37 the excess of the credit allowed by this section over the amount of such
38 credit allowable against the tax imposed by section one hundred eighty-
39 three of this article.
40 2. Clean-fuel vehicle refueling property. The credit under this
41 section for clean-fuel vehicle refueling property shall equal fifty
42 percent of the cost of any such property:
43 (a) which is located in this state; and
44 (b) for which a deduction is allowed under section one hundred seven-
45 ty-nine-A of the internal revenue code (determined without regard to the
46 limitations prescribed in paragraph two of subsection (b) of such
47 section or the election referred to in subsection (e) of such section
48 with respect to section one hundred seventy-nine of such code), but not
49 including clean-fuel refueling property relating to a qualified hybrid
S. 6460 59 A. 9560
1 vehicle as such vehicle is defined in subparagraph [(E)] (D) of para-
2 graph six of subsection (p) of section six hundred six of this chapter.
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 (D) 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. Qualified hybrid vehicles. The credit under this section for quali-
21 fied hybrid vehicles shall equal two thousand dollars per vehicle regis-
22 tered in this state.
23 5. Biofuel production. The credit under this section for biofuel
24 production for each gallon of biofuel produced by the taxpayer at a
25 biofuel plant on or after January first, two thousand six shall equal
26 twenty cents per gallon for the first twenty million gallons produced
27 during the taxable year and ten cents per gallon for production over
28 twenty million gallons after the first forty thousand gallons produced
29 during the taxable year. The credit under this subdivision will be
30 limited to one million dollars per taxpayer per taxable year per biofuel
31 plant.
32 6. Definitions. (a) The term "clean-fuel vehicle refueling property"
33 means any such property which is qualified within the meaning of
34 subsection (d) of section one hundred seventy-nine-A of the internal
35 revenue code, but shall not include clean-fuel vehicle refueling proper-
36 ty relating to a qualified hybrid vehicle as such vehicle is defined in
37 subparagraph [(E)] (D) of paragraph six of subsection (p) of section six
38 hundred six of this chapter.
39 (b) The term "clean-fuel" means natural gas, liquefied petroleum gas,
40 hydrogen, electricity, and any other fuel which is at least eighty-five
41 percent, singly or in combination, methanol, ethanol, any other alcohol,
42 or ether.
43 (c) The term "qualified hybrid vehicle" shall have the same meaning as
44 provided for under subparagraph [(E)] (D) of paragraph six of subsection
45 (p) of section six hundred six of this chapter.
46 (d) The term "clean-fuel vehicle property" means any such property
47 which is qualified within the meaning of subsection (c) of section one
48 hundred seventy-nine-A of the internal revenue code, but such terms
49 shall not include clean-fuel vehicle property relating to a qualified
50 hybrid vehicle as such vehicle is defined in subparagraph (D) of para-
51 graph six of subsection (p) of section six hundred six of this chapter.
52 (e) The term "biofuel" shall include biodiesel, ethanol and cellulosic
53 ethanol. The term biodiesel shall mean a fuel comprised exclusively of
54 mono-alkyl esters of long chain fatty acids derived from vegetable oils
55 or animal fats, designated B100, which meets the specifications of Amer-
56 ican Society of Testing and Materials designation D6751-02. The term
S. 6460 60 A. 9560
1 "ethanol" shall mean ethyl alcohol manufactured in the United States and
2 its territories and sold:
3 (i) for fuel use and which has been rendered unfit for beverage use in
4 a manner, and which is produced at a facility, approved by the federal
5 bureau of alcohol, tobacco and firearms for the production of ethanol
6 for fuel, or
7 (ii) as denatured ethanol used by blenders and refiners which has been
8 rendered unfit for beverage use.
9 (f) The term "cellulosic ethanol" shall mean ethanol manufactured in
10 the United States and its territories from cellulosic feedstocks includ-
11 ing agricultural residue, dedicated energy crops, municipal wastes and
12 forest residue.
13 [4] 7 . Carryovers. In no event shall the credit under this section be
14 allowed in an amount which will reduce the tax payable to less than the
15 applicable minimum tax fixed by section one hundred eighty-three or one
16 hundred eighty-five of this article. If, however, the amount of credit
17 allowable under this section for any taxable year reduces the tax to
18 such amount, any amount of credit not deductible in such taxable year
19 may be carried over to the following year or years and may be deducted
20 from the taxpayer's tax for such year or years.
21 [5] 8 . Credit recapture. (a) Clean-fuel vehicle refueling property.
22 If, at any time before the end of its recovery period, clean-fuel vehi-
23 cle refueling property ceases to be qualified, a recapture amount must
24 be added back in the year in which such cessation occurs.
25 [(b)] (i) Cessation of qualification. Clean-fuel vehicle refueling
26 property ceases to be qualified if:
27 [(i)] (I) the property no longer qualifies as property described in
28 subsection (d) of section one hundred seventy-nine-A of the internal
29 revenue code; or
30 [(ii)] (II) fifty percent or more of the use of the property in a
31 taxable year is other than a trade or business in this state; or
32 [(iii)] (III) the taxpayer receiving the credit under this section
33 sells or disposes of the property and knows or has reason to know that
34 the property will be used in a manner described in this subparagraph
35 [(i) or (ii) of this paragraph].
36 [(c)] (ii) Recapture amount. The recapture amount is equal to the
37 credit allowable under this section multiplied by a fraction, the numer-
38 ator of which is the total recovery period for the property minus the
39 number of recovery years prior to, but not including, the recapture
40 year, and the denominator of which is the total recovery period.
41 (b) If, within three full years from the date a vehicle of which
42 clean-fuel vehicle property is a part is placed in service, such clean-
43 fuel vehicle property ceases to be qualified, a recapture amount must be
44 added back in the tax year in which such cessation occurs.
45 (i) Clean-fuel vehicle property ceases to be qualified if
46 (I) the vehicle of which it is a part is modified by the taxpayer so
47 that it may no longer be propelled by a clean-burning fuel, or
48 (II) the vehicle otherwise ceases to qualify as property defined in
49 subsection (c) of section one hundred seventy-nine-A of the internal
50 revenue code, or
51 (III) the taxpayer receiving the credit under this section sells or
52 disposes of the vehicle and knows or has reason to know that the vehicle
53 will be used in a manner described in clause (I) or (II) of this subpar-
54 agraph.
55 (ii) Recapture amount. The recapture amount is equal to the credit
56 allowable under this section multiplied by:
S. 6460 61 A. 9560
1 (I) one hundred percent, if the cessation of qualification occurs
2 within the first full year after the date the vehicle is placed in
3 service,
4 (II) sixty-six and two-thirds percent, if the cessation of qualifica-
5 tion occurs within the second full year after the date the vehicle is
6 placed in service, or
7 (III) thirty-three and one-third percent, if the cessation of quali-
8 fication occurs within the third full year after the date the vehicle is
9 placed in service.
10 (c) Qualified hybrid vehicles. If, within three full years from the
11 date a qualified hybrid vehicle is placed in service, such qualified
12 hybrid vehicle ceases to be qualified, a recapture amount must be added
13 back in the tax year in which such cessation occurs.
14 (i) Cessation of qualification. A qualified hybrid vehicle ceases to
15 be qualified if
16 (I) it is modified by the taxpayer so that it no longer meets the
17 requirements of a qualified hybrid vehicle as defined in subparagraph
18 (D) of paragraph six of subsection (p) of section six hundred six of
19 this chapter, or
20 (II) the taxpayer receiving the credit under this section sells or
21 disposes of the vehicle and knows or has reason to know that the vehicle
22 will be so modified.
23 (ii) Recapture amount. The recapture amount is equal to the credit
24 allowable under this section multiplied by:
25 (I) one hundred percent, if the cessation of qualification occurs
26 within the first full year after the date the vehicle is placed in
27 service,
28 (II) sixty-six and two-thirds percent, if the cessation of qualifica-
29 tion occurs within the second full year after the date the vehicle is
30 placed in service, or
31 (III) thirty-three and one-third percent, if the cessation of quali-
32 fication occurs within the third full year after the date the vehicle is
33 placed in service.
34 [6] 9 . Termination. [This section] The credits allowed by subdivisions
35 two, three and four of this section shall not apply to property placed
36 in service in taxable years beginning [three years after the effective
37 date of this section] after December thirty-first, two thousand eight.
38 The credit allowed by subdivision five of this section shall not apply
39 in taxable years beginning after December thirty-first, two thousand
40 ten .
41 § 2. Subdivision 24 of section 210 of the tax law, as added by chapter
42 310 of the laws of 2005, is amended to read as follows:
43 24. Alternative fuels credit. (a) General. A taxpayer shall be allowed
44 a credit, to be computed as hereinafter provided, against the tax
45 imposed by this article for clean-fuel vehicle refueling property,
46 clean-fuel vehicle property and qualified hybrid vehicles placed in
47 service during the taxable year, and for biofuel production .
48 (b) Clean-fuel vehicle refueling property. The credit under this
49 subdivision for clean-fuel vehicle refueling property shall equal fifty
50 percent of the cost of any such property:
51 (i) which is located in this state; and
52 (ii) for which a deduction is allowed under section one hundred seven-
53 ty-nine-A of the internal revenue code (determined without regard to the
54 limitations prescribed in paragraph two of subsection (b) of such
55 section or the election referred to in subsection (e) of such section
56 with respect to section one hundred seventy-nine of such code) but not
S. 6460 62 A. 9560
1 including clean-fuel refueling property relating to a qualified hybrid
2 vehicle as such vehicle is defined in subparagraph (D) of paragraph six
3 of subsection (p) of section six hundred six of this chapter .
4 (c) Clean-fuel vehicle property. The credit under this subdivision for
5 clean-fuel vehicle property shall equal sixty percent of the cost of any
6 such property
7 (i) for which a deduction is allowed under section one hundred seven-
8 ty-nine-A of the internal revenue code (determined without regard to the
9 limitations prescribed in paragraph one of subsection (b) of such
10 section or the election referred to in subsection (e) of such section
11 with respect to section one hundred seventy-nine of such code), but not
12 including clean-fuel vehicle property relating to a qualified hybrid
13 vehicle as such vehicle is defined in subparagraph (D) of paragraph six
14 of subsection (p) of section six hundred six of this chapter, and
15 (ii) which is installed in or manufactured as part of a motor vehicle
16 which is registered in this state,
17 (iii) provided, however, the credit with respect to any such vehicle
18 shall not exceed five thousand dollars per vehicle for vehicles with a
19 gross vehicle weight rating of fourteen thousand pounds or less and ten
20 thousand dollars per vehicle for all other vehicles.
21 (d) Qualified hybrid vehicles. The credit under this subdivision for
22 qualified hybrid vehicles shall equal two thousand dollars per vehicle
23 registered in the state.
24 (e) Biofuel production. The credit under this subdivision for biofuel
25 production for each gallon of biofuel produced by the taxpayer at a
26 biofuel plant on or after January first, two thousand six shall equal
27 twenty cents per gallon for the first twenty million gallons produced
28 during the taxable year and ten cents per gallon for production over
29 twenty million gallons after the first forty thousand gallons produced
30 during the taxable year. The credit under this paragraph will be limited
31 to one million dollars per taxpayer per taxable year per biofuel plant.
32 (f) Definitions. (i) The term "clean-fuel vehicle refueling property"
33 means any such property which is qualified within the meaning of
34 subsection (d) of section one hundred seventy-nine-A of the internal
35 revenue code.
36 (ii) The term "clean-fuel" means natural gas, liquified petroleum gas,
37 hydrogen, electricity, and any other fuel which is at least eighty-five
38 percent, singly or in combination, methanol, ethanol, any other alcohol,
39 or ether.
40 (iii) The term "qualified hybrid vehicle" shall have the same meaning
41 as provided for under subparagraph (D) of paragraph six of subsection
42 (p) of section six hundred six of this chapter.
43 (iv) The term "clean-fuel vehicle property" means any such property
44 which is qualified within the meaning of subsection (c) of section one
45 hundred seventy-nine-A of the internal revenue code, but such term shall
46 not include clean-fuel vehicle property relating to a qualified hybrid
47 vehicle as such vehicle is defined in subparagraph (D) of paragraph six
48 of subsection (p) of section six hundred six of this chapter.
49 (v) The term "biofuel" shall include biodiesel, ethanol and cellulosic
50 ethanol. The term biodiesel shall mean a fuel comprised exclusively of
51 mono-alkyl esters of long chain fatty acids derived from vegetable oils
52 or animal fats, designated B100, which meets the specifications of Amer-
53 ican Society of Testing and Materials designation D6751-02. The term
54 "ethanol" shall mean ethyl alcohol manufactured in the United States and
55 its territories and sold:
S. 6460 63 A. 9560
1 (A) for fuel use and which has been rendered unfit for beverage use in
2 a manner, and which is produced at a facility, approved by the federal
3 bureau of alcohol, tobacco and firearms for the production of ethanol
4 for fuel, or
5 (B) as denatured ethanol used by blenders and refiners which has been
6 rendered unfit for beverage use.
7 (vi) The term "cellulosic ethanol" shall mean ethanol manufactured in
8 the United States and its territories from cellulosic feedstocks includ-
9 ing agricultural residue, dedicated energy crops, municipal wastes and
10 forest residue.
11 [(d)] (g) Carryovers. In no event shall the credit under this subdivi-
12 sion be allowed in an amount which will reduce the tax payable to less
13 than the higher of the amounts prescribed in paragraphs (c) and (d) of
14 subdivision one of this section. Provided, however, that if the amount
15 of credit allowable under this subdivision for any taxable year reduces
16 the tax to such amount, any amount of credit not deductible in such
17 taxable year may be carried over to the following year or years and may
18 be deducted from the taxpayer's tax for such year or years.
19 [(e)] (h) Credit recapture. (i) Clean-fuel vehicle refueling property.
20 If, at any time before the end of its recovery period, clean-fuel vehi-
21 cle refueling property ceases to be qualified, a recapture amount must
22 be added back in the year in which such cessation occurs.
23 [(ii)] (A) Clean-fuel vehicle refueling property ceases to be quali-
24 fied if:
25 [(A)] (1) the property no longer qualifies as property described in
26 subsection (d) of section one hundred seventy-nine-A of the internal
27 revenue code; or
28 [(B)] (2) fifty percent or more of the use of the property in a taxa-
29 ble year is other than in a trade or business in this state; or
30 [(C)] (3) the taxpayer receiving the credit under this subdivision
31 sells or disposes of the property and knows or has reason to know that
32 the property will be used in a manner described in clauses [(A)] one and
33 [(B)] two of this subparagraph.
34 [(iii)] (B) Recapture amount. The recapture amount is equal to the
35 credit allowable under this subdivision multiplied by a fraction, the
36 numerator of which is the total recovery period for the property minus
37 the number of recovery years prior to, but not including, the recapture
38 year, and the denominator of which is the total recovery period.
39 (ii) If, within three full years from the date a vehicle of which
40 clean-fuel vehicle property is a part is placed in service, such clean-
41 fuel vehicle property ceases to be qualified, a recapture amount must be
42 added back in the tax year in which such cessation occurs.
43 (A) Clean-fuel vehicle property ceases to be qualified if
44 (1) the vehicle of which it is a part is modified by the taxpayer so
45 that it may no longer be propelled by a clean-burning fuel, or
46 (2) the vehicle otherwise ceases to qualify as property defined in
47 subsection (c) of section one hundred seventy-nine-A of the internal
48 revenue code, or
49 (3) the taxpayer receiving the credit under this section sells or
50 disposes of the vehicle and knows or has reason to know that the vehicle
51 will be used in a manner described in clauses one and two of this para-
52 graph.
53 (B) Recapture amount. The recapture amount is equal to the credit
54 allowable under this section multiplied by:
S. 6460 64 A. 9560
1 (1) one hundred percent, if the cessation of qualification occurs
2 within the first full year after the date the vehicle is placed in
3 service,
4 (2) sixty-six and two-thirds percent, if the cessation of qualifica-
5 tion occurs within the second full year after the date the vehicle is
6 placed in service, or
7 (3) thirty-three and one-third percent, if the cessation of qualifica-
8 tion occurs within the third full year after the date the vehicle is
9 placed in service.
10 (iii) Vehicles. If, within three full years from the date a qualified
11 hybrid vehicle is placed in service, such qualified hybrid vehicle ceas-
12 es to be qualified, a recapture amount must be added back in the tax
13 year in which such cessation occurs.
14 (A) Cessation of qualification. A qualified hybrid vehicle ceases to
15 be qualified if
16 (1) it is modified by the taxpayer so that it no longer meets the
17 requirements of a qualified hybrid vehicle as defined in subparagraph
18 (D) of paragraph six of subsection (p) of section six hundred six of
19 this chapter, or
20 (2) the taxpayer receiving the credit under this section sells or
21 disposes of the vehicle and knows or has reason to know that the vehicle
22 will be so modified.
23 (B) Recapture Amount. The recapture amount is equal to the credit
24 allowable under this section multiplied by:
25 (1) one hundred percent, if the cessation of qualification occurs
26 within the first full year after the date the vehicle is placed in
27 service,
28 (2) sixty-six and two-thirds percent, if the cessation of qualifica-
29 tion occurs within the second full year after the date the vehicle is
30 placed in service, or
31 (3) thirty-three and one-third percent, if the cessation of qualifica-
32 tion occurs within the third full year after the date the vehicle is
33 placed in service.
34 [(f)] (i) Affiliates. (i) If a credit under this subdivision is
35 allowed to a taxpayer with respect to a taxable year, the action taken
36 by such taxpayer which resulted in such credit being allowed thereto
37 may, at the election of the taxpayer and an affiliate thereof, be
38 ascribed to such affiliate. Where such affiliate, based on such ascrip-
39 tion, is allowed such credit and deducts from the tax otherwise due the
40 amount of such credit, such credit shall be deemed in all respects to
41 have been allowed to such affiliate, provided that any action or
42 inaction by the taxpayer which constitutes an event of recapture
43 described in paragraph [(e)] (h) of this subdivision shall be ascribed
44 to the affiliate and shall constitute an event of recapture with respect
45 to the credit allowed to the affiliate pursuant to this subdivision.
46 (ii) Notwithstanding any other provision of law to the contrary, in
47 the case of the credit provided for under this subdivision being allowed
48 to, or asserted to be allowed to, an affiliate, pursuant to subparagraph
49 (i) of this paragraph, the commissioner shall have the same powers with
50 respect to examining the books and records of the taxpayer, and have
51 such other powers of investigation with respect to the taxpayer, as are
52 afforded under this chapter with respect to a taxpayer which has
53 deducted the credit allowed under this section from tax otherwise due,
54 as if it were the taxpayer which had deducted such credit from tax
55 otherwise due.
S. 6460 65 A. 9560
1 (iii) The term "affiliate" shall mean a corporation substantially all
2 the capital stock of which is owned or controlled either directly or
3 indirectly by the taxpayer, or which owns or controls either directly or
4 indirectly substantially all the capital stock of the taxpayer, or
5 substantially all the capital stock of which is owned or controlled
6 either directly or indirectly by interests which own or control either
7 directly or indirectly substantially all the capital stock of the
8 taxpayer.
9 (j) Termination. The credits allowed by paragraphs (b), (c), and (d)
10 of this subdivision shall not apply to property placed in service in
11 taxable years beginning after December thirty-first, two thousand eight.
12 The credit allowed by paragraph (e) of this subdivision shall not apply
13 in taxable years beginning after December thirty-first, two thousand
14 ten.
15 § 3. Subsection (p) of section 606 of the tax law, as added by section
16 129 of part A of chapter 389 of the laws of 1997, paragraph 1 as
17 amended, paragraphs 7 and 8 as renumbered and clause (i) and (ii) of
18 subparagraph (A) of paragraph 8 as amended by chapter 597 of the laws of
19 2002 and paragraphs 3, 4, 5, 6 and 9 as amended by section 4 of part D
20 of chapter 60 of the laws of 2004, is amended as follows:
21 (p) Alternative fuels credit. (1) General. A taxpayer shall be
22 allowed a credit, to be computed as hereinafter provided, against the
23 tax imposed by this article, for [electric vehicles,] clean-fuel vehicle
24 property, clean-fuel vehicle refueling property and qualified hybrid
25 vehicles placed in service during the taxable year, and for biofuel
26 production . [Provided, however, that the credit provided for by this
27 subsection with respect to electric vehicles shall not be allowed to a
28 gas corporation or an electric corporation as defined in subdivisions
29 eleven and thirteen, respectively, of section two of the public service
30 law, or a gas and electric corporation as described in section sixty-
31 four of the public service law, where such corporation is subject to the
32 supervision of the department of public service.
33 (2) Electric vehicles. The credit under this subsection for electric
34 vehicles shall equal fifty percent of the incremental cost of any such
35 vehicle
36 (A) which is registered in this state and
37 (B) for which a credit is allowed under section thirty of the internal
38 revenue code (determined without regard to the limitations prescribed in
39 subsection (b) or the elections prescribed in subsection (d) of such
40 section, including the election with respect to section one hundred
41 seventy-nine of such code),
42 (C) provided, however, the credit with respect to any such vehicle
43 shall not exceed five thousand dollars.]
44 [(3)] (2) Clean-fuel vehicle property. The credit under this
45 subsection for clean-fuel vehicle property shall equal sixty percent of
46 the cost of any such property
47 (A) for which a deduction is allowed under section one hundred seven-
48 ty-nine-A of the internal revenue code (determined without regard to the
49 limitations prescribed in paragraph one of subsection (b) of such
50 section or the election referred to in subsection (e) of such section
51 with respect to section one hundred seventy-nine of such code), but not
52 including clean-fuel vehicle property relating to a qualified hybrid
53 vehicle as such vehicle is defined in subparagraph [(E)] (D) of para-
54 graph six of this subsection and
55 (B) which is installed in or manufactured as part of a motor vehicle
56 which is registered in this state,
S. 6460 66 A. 9560
1 (C) provided, however, the credit with respect to any such vehicle
2 shall not exceed five thousand dollars per vehicle for vehicles with a
3 gross vehicle weight rating of fourteen thousand pounds or less and ten
4 thousand dollars per vehicle for all other vehicles.
5 [(4)] (3) Clean-fuel vehicle refueling property. The credit under this
6 subsection for clean-fuel vehicle refueling property shall equal fifty
7 percent of the cost of any such property
8 (A) which is located in this state and
9 (B) for which a deduction is allowed under section one hundred seven-
10 ty-nine-A of the internal revenue code (determined without regard to the
11 limitations prescribed in paragraph two of subsection (b) of such
12 section or the election referred to in subsection (e) of such section
13 with respect to section one hundred seventy-nine of such code), but not
14 including clean-fuel vehicle refueling property relating to a qualified
15 hybrid vehicle as such vehicle is defined in subparagraph [(E)] (D) of
16 paragraph six of this subsection.
17 [(5)] (4) Qualified hybrid vehicle. The credit under this subsection
18 for qualified hybrid vehicles shall equal two thousand dollars per vehi-
19 cle registered in this state.
20 (5) Biofuel production. The credit under this subsection for biofuel
21 production for each gallon of biofuel produced by the taxpayer at a
22 biofuel plant on or after January first, two thousand six shall equal
23 twenty cents per gallon for the first twenty million gallons produced
24 during the taxable year and ten cents per gallon after the first forty
25 thousand gallons produced during the taxable year for production over
26 twenty million gallons. The credit under this paragraph will be limited
27 to one million dollars per taxpayer per taxable year per biofuel plant.
28 (6) Definitions. (A) [The term "electric vehicle" means a qualified
29 electric vehicle within the meaning of subsection (c) of section thirty
30 of the internal revenue code.
31 (B)] The terms "clean-fuel vehicle property" and "clean-fuel vehicle
32 refueling property" mean any such property which is qualified within the
33 meaning of subsections (c) and (d), respectively, of section one hundred
34 seventy-nine-A of the internal revenue code, but such terms shall not
35 include clean-fuel vehicle property or clean-fuel vehicle refueling
36 property relating to a qualified hybrid vehicle as such vehicle is
37 defined in subparagraph (E) of this paragraph.
38 [(C)] (B) The term "clean-fuel" means natural gas, liquefied petroleum
39 gas, hydrogen, electricity, and any other fuel which is at least eight-
40 y-five percent, singly or in combination, methanol, ethanol, any other
41 alcohol, or ether.
42 [(D) The term "incremental cost" shall mean the excess of the cost of
43 an electric vehicle over the cost of a gasoline-powered vehicle which is
44 similar in size and style.]
45 (C) The term "biofuel" shall include biodiesel, ethanol and cellulosic
46 ethanol. (i) The term "biodiesel" shall mean a fuel comprised exclusive-
47 ly of mono-alkyl esters of long chain fatty acids derived from vegetable
48 oils or animal fats, designated B100, which meets the specifications of
49 American Society of Testing and Materials designation D6751-02. (ii) The
50 term "ethanol" shall mean ethyl alcohol manufactured in the United
51 States and its territories and sold:
52 (I) for fuel use and which has been rendered unfit for beverage use in
53 a manner, and which is produced at a facility, approved by the federal
54 bureau of alcohol, tobacco and firearms for the production of ethanol
55 for fuel, or
S. 6460 67 A. 9560
1 (II) as denatured ethanol used by blenders and refiners which has been
2 rendered unfit for beverage use.
3 (iii) The term "cellulosic ethanol" shall mean ethanol manufactured in
4 the United States and its territories from cellulosic feedstocks includ-
5 ing agricultural residue, dedicated energy crops, municipal wastes and
6 forest residue.
7 [(E)] (D) The term "qualified hybrid vehicle" means a motor vehicle,
8 as defined in section one hundred twenty-five of the vehicle and traffic
9 law, [other than an electric vehicle (as such term is defined in subpar-
10 agraph (A) of this paragraph)], that:
11 (i) draws propulsion energy from both
12 (a) an internal combustion engine (or heat engine that uses combusti-
13 ble fuel); and
14 (b) an energy storage device; and
15 (ii) employs a regenerative vehicle braking system that recovers waste
16 energy to charge such energy storage device.
17 (7) Carryovers. If the amount of credit allowable under this
18 subsection shall exceed the taxpayer's tax for such year, the excess may
19 be carried over to the following year or years and may be deducted from
20 the taxpayer's tax for such year or years.
21 (8) Credit recapture. (A) Vehicles.
22 (i) If, within three full years from the date [an electric vehicle,] a
23 qualified hybrid vehicle or a vehicle of which clean-fuel vehicle prop-
24 erty is a part is placed in service, such [electric vehicle,] qualified
25 hybrid vehicle or clean-fuel vehicle property ceases to be qualified, a
26 recapture amount must be added back in the tax year in which such cessa-
27 tion occurs.
28 (ii) Cessation of qualification. (I) [An electric vehicle ceases to be
29 qualified if
30 (a) it is modified by the taxpayer so that it no longer is powered
31 primarily by electricity, or
32 (b) the taxpayer receiving the credit under this subsection sells or
33 disposes of the vehicle and knows or has reason to know that the vehicle
34 will be so modified.
35 (II)] A qualified hybrid vehicle ceases to be qualified if
36 (a) it is modified by the taxpayer so that it no longer meets the
37 requirements of a qualified hybrid vehicle as defined in subparagraph
38 [(E)] (D) of paragraph six of this subsection.
39 (b) the taxpayer receiving the credit under this subsection sells or
40 disposes of the vehicle and knows or has reason to know that the vehicle
41 will be so modified.
42 [(III)] (II) Clean-fuel vehicle property ceases to be qualified if
43 (a) the vehicle of which it is a part is modified by the taxpayer so
44 that it may no longer be propelled by a clean-burning fuel, or
45 (b) the vehicle otherwise ceases to qualify as property defined in
46 subsection (c) of section one hundred seventy-nine-A of the internal
47 revenue code, or
48 (c) the taxpayer receiving the credit under this subsection sells or
49 disposes of the vehicle and knows or has reason to know that the vehicle
50 will be used in a manner described in subclause (a) or (b) of this item.
51 (iii) Recapture amount. The recapture amount is equal to the credit
52 allowable under this subsection multiplied by:
53 (I) one hundred percent, if the cessation of qualification occurs
54 within the first full year after the date the vehicle is placed in
55 service,
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1 (II) sixty-six and two-thirds percent, if the cessation of qualifica-
2 tion occurs within the second full year after the date the vehicle is
3 placed in service, or
4 (III) thirty-three and one-third percent, if the cessation of quali-
5 fication occurs within the third full year after the date the vehicle is
6 placed in service.
7 (B) Clean-fuel vehicle refueling property. (i) If, at any time before
8 the end of its recovery period, clean-fuel vehicle refueling property
9 ceases to be qualified, a recapture amount must be added back in the
10 year in which such cessation occurs.
11 (ii) Cessation of qualification. Clean-fuel vehicle refueling property
12 ceases to be qualified if
13 (I) the property no longer qualifies as property described in
14 subsection (d) of section one hundred seventy-nine-A of the internal
15 revenue code, or
16 (II) fifty percent or more of the use of the property in a taxable
17 year is other than in a trade or business in this state, or
18 (III) the taxpayer receiving the credit under this subsection sells or
19 disposes of the property and knows or has reason to know that the prop-
20 erty will be used in a manner described in item (I) or (II) of this
21 clause.
22 (iii) Recapture amount. The recapture amount is equal to the credit
23 allowable under this subsection multiplied by a fraction, the numerator
24 of which is the total recovery period for the property minus the number
25 of recovery years prior to, but not including, the recapture year, and
26 the denominator of which is the total recovery period.
27 (9) Termination. [This subsection] The credits allowed by paragraphs
28 two, three and four of this subsection shall not apply to property
29 placed in service in taxable years beginning after December thirty-
30 first, two thousand [four] eight. The credit allowed by paragraph five
31 of this subsection shall not apply in taxable years beginning after
32 December thirty-first, two thousand ten .
33 § 4. This act shall take effect immediately and shall apply to taxable
34 years beginning on or after January 1, 2006.
35 PART V
36 Section 1. Section 282 of the tax law is amended by adding four new
37 subdivisions 22, 23, 24 and 25 to read as follows:
38 22. "E85" means a mixture consisting by volume of eighty-five percent
39 ethanol and the remainder of which is motor fuel.
40 23. "B20" means a mixture consisting by volume of twenty percent biod-
41 iesel and the remainder of which is diesel motor fuel. For purposes of
42 this subdivision "biodiesel" shall mean a diesel motor fuel substitute
43 produced from nonpetroleum renewable resources that meets the registra-
44 tion requirements for fuels and fuel additives established by the Envi-
45 ronmental Protection Agency under section 211 of the Clean Air Act (42
46 U.S.C. 7545) and that meets the American Society for Testing and Mate-
47 rials D6751-02a Standard Specification for Biodiesel Fuel (B100) Blend
48 Stock for Distillate Fuels.
49 24. "CNG" means fuel comprised primarily of methane, stored in either
50 a gaseous or liquid state, suitable for use and consumption in the
51 engine of a motor vehicle.
52 25. "Hydrogen" means fuel comprised primarily of molecular hydrogen,
53 stored in either a gaseous or liquid state, suitable for use and
54 consumption in the engine of a motor vehicle.
S. 6460 69 A. 9560
1 § 2. Subdivision 1-a of section 289-c of the tax law is amended by
2 adding a new paragraph (d) to read as follows:
3 (d)(i) Any person may exclude the amount of the tax or taxes imposed
4 by this article on E85 from the selling price thereof where E85 is
5 delivered to a filling station and placed in a storage tank of such
6 filling station for such E85 to be dispensed directly into a motor vehi-
7 cle for use in the operation of such vehicle. Any person making a sale
8 of E85 under the circumstances described herein, whereby the tax or
9 taxes otherwise imposed by this article have not been passed through to
10 the purchaser, shall be allowed a refund or credit of the taxes imposed
11 by this article in the amount of such tax or taxes paid by such person
12 on such E85 being sold or included in the price paid by such person for
13 such fuel. Claims for refunds or credits shall be presented, and refunds
14 or credits shall be made, only as authorized by the commissioner under
15 such rules and regulations as the commissioner may prescribe.
16 (ii) Any person may exclude twenty percent of the amount of the tax or
17 taxes imposed by this article from the selling price with respect to any
18 sale of B20. Any person making a sale of B20 upon which such person does
19 not pass on more than eighty percent of the taxes otherwise imposed by
20 this article, where such person has purchased such B20 with the entire
21 amount of the taxes imposed by this article included in such person's
22 purchase price, shall be entitled to a refund or credit equal to the
23 amount of the tax or taxes paid under this article on such B20 in excess
24 of eighty percent of the tax or taxes imposed by this article on diesel
25 motor fuel. Claims for refunds or credits shall be presented, and
26 refunds or credits shall be made, only as authorized by the commissioner
27 under such rules and regulations as the commissioner may prescribe.
28 (iii) Any person may exclude the amount of the tax or taxes imposed by
29 this article on CNG or hydrogen from the selling price thereof. Any
30 person making a sale of CNG or hydrogen, whereby the tax or taxes other-
31 wise imposed by this article have not been passed through to the
32 purchaser, shall be allowed a refund or credit of any taxes imposed by
33 this article in the amount of such tax or taxes paid by such person on
34 such CNG or hydrogen being sold or included in the price paid by such
35 person for such CNG or hydrogen. Claims for refunds or credits shall be
36 presented, and refunds or credits shall be made, only as authorized by
37 the commissioner under such rules and regulations as the commissioner
38 may prescribe.
39 § 3. Section 300 of the tax law is amended by adding four new subdivi-
40 sions (o), (p), (q) and (r) to read as follows:
41 (o) The term "E85" shall have the same meaning as in subdivision twen-
42 ty-two of section two hundred eighty-two of this chapter.
43 (p) The term "B20" shall have the same meaning as in subdivision twen-
44 ty-three of section two hundred eighty-two of this chapter.
45 (q) The term "CNG" shall have the same meaning as in subdivision twen-
46 ty-four of section two hundred eighty-two of this chapter.
47 (r) The term "hydrogen" shall have the same meaning as in subdivision
48 twenty-five of section two hundred eighty-two of this chapter.
49 § 4. Subdivision (a) of section 301-b of the tax law is amended by
50 adding three new paragraphs 6, 7 and 8 to read as follows:
51 (6) E85 imported or caused to be imported into this state or produced,
52 refined, manufactured or compounded in this state by a petroleum busi-
53 ness registered under article twelve-A of this chapter, as a distributor
54 of motor fuel, and then sold by such petroleum business and delivered to
55 a filling station and placed in a storage tank of such filling station
S. 6460 70 A. 9560
1 for such E85 to be dispensed directly into a motor vehicle for use in
2 the operation of such vehicle.
3 (7)(i) Partial B2O exemption. B20 imported or caused to be imported
4 into this state or produced, refined, manufactured or compounded in this
5 state by a petroleum business registered under article twelve-A of this
6 chapter, as a distributor of diesel motor fuel, and then sold by such
7 petroleum business.
8 (ii) Calculation of partial exemption. The amount of the partial
9 exemption under this paragraph shall be determined by multiplying the
10 quantity of B20 times twenty percent of the applicable taxes otherwise
11 imposed by this article on such fuel.
12 (8) CNG or hydrogen.
13 § 5. The opening paragraph of section 301-c of the tax law, as amended
14 by chapter 468 of the laws of 2000, is amended to read as follows:
15 A subsequent purchaser shall be eligible for reimbursement of tax with
16 respect to the following gallonage, subsequently sold by such purchaser
17 in accordance with subdivision (a), (b), (e), (h), (j) [or], (k), (n) or
18 (o) of this section or used by such purchaser in accordance with subdi-
19 vision (c), (d), (f), (g), (i), (l) or (m) of this section, which gallo-
20 nage has been included in the measure of the tax imposed by this article
21 on a petroleum business:
22 § 6. Section 301-c of the tax law is amended by adding two new subdi-
23 visions (n) and (o) to read as follows:
24 (n) Reimbursement for E85. E85 purchased in this state and sold by
25 such purchaser in this state where (1) such E85 is delivered to a fill-
26 ing station and placed in a storage tank of such filling station for
27 such E85 to be dispensed directly into a motor vehicle for use in the
28 operation of such vehicle, (2) the tax imposed pursuant to this article
29 has been paid with respect to such E85 and the entire amount of such tax
30 has been absorbed by such purchaser, and (3) such purchaser possesses
31 documentary proof satisfactory to the commissioner evidencing the
32 absorption by it of the entire amount of the tax imposed pursuant to
33 this article. Provided, that the commissioner shall require such docu-
34 mentary proof to qualify for any reimbursement provided hereunder as the
35 commissioner deems appropriate.
36 (o) (1) Partial reimbursement for B20. B20 purchased in this state
37 and sold by such purchaser in this state where (i) the tax imposed
38 pursuant to this article has been paid with respect to such B20 and the
39 entire amount of such tax has been absorbed by such purchaser, and (ii)
40 such purchaser possesses documentary proof satisfactory to the commis-
41 sioner evidencing the absorption by it of the entire amount of the tax
42 imposed pursuant to this article. Provided, that the commissioner shall
43 require such documentary proof to qualify for any reimbursement provided
44 hereunder as the commissioner deems appropriate.
45 (2) Calculation of partial reimbursement. The amount of the
46 reimbursement under this subdivision shall be determined by multiplying
47 the quantity of B20 times twenty percent of the applicable taxes other-
48 wise imposed by this article on such fuel.
49 § 7. Subdivision (b) of section 1101 of the tax law is amended by
50 adding four new paragraphs 29, 30, 31 and 32 to read as follows:
51 (29) "E85" shall have the same meaning as in subdivision twenty-two of
52 section two hundred eighty-two of this chapter.
53 (30) "B20" shall have the same meaning as in subdivision twenty-three
54 of section two hundred eighty-two of this chapter.
55 (31) "CNG" shall have the same meaning as in subdivision twenty-four
56 of section two hundred eighty-two of this chapter.
S. 6460 71 A. 9560
1 (32) "Hydrogen" shall have the same meaning as in subdivision twenty-
2 five of section two hundred eighty-two of this chapter.
3 § 8. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as
4 amended by chapter 261 of the laws of 1988, is amended to read as
5 follows:
6 (1) Every distributor of motor fuel shall pay, as a prepayment on
7 account of the taxes imposed by this article and pursuant to the author-
8 ity of article twenty-nine of this chapter, a tax on each gallon of
9 motor fuel (i) which he imports or causes to be imported into this state
10 for use, distribution, storage or sale in the state or produces,
11 refines, manufactures or compounds in this state or (ii) if the tax has
12 not been imposed prior to its sale in this state, which he sells (which
13 acts shall in regard to motor fuel hereinafter in this article be encom-
14 passed by the phrase "imported, manufactured or sold"), except when
15 imported, manufactured or sold under circumstances which preclude the
16 collection of such tax by reason of the United States constitution and
17 of the laws of the United States enacted pursuant thereto or when
18 imported or manufactured by an organization described in paragraph one
19 or two of subdivision (a) of section eleven hundred sixteen of this
20 article or a hospital included in the organizations described in para-
21 graph four of such subdivision for its own use and consumption and
22 except kero-jet fuel when imported by an airline for use in its
23 airplanes, and except CNG, and except hydrogen, and except E85 when
24 delivered to a filling station and placed in a storage tank of such
25 filling station for such E85 to be dispensed directly into a motor vehi-
26 cle for use in the operation of such vehicle .
27 § 9. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
28 amended by chapter 261 of the laws of 1988, is amended to read as
29 follows:
30 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
31 on account of the taxes imposed by this article and pursuant to the
32 authority of article twenty-nine of this chapter, a tax upon the sale or
33 use of diesel motor fuel in this state. The tax shall be computed based
34 upon the number of gallons of diesel motor fuel sold or used. Provided,
35 however, if the tax has not been imposed prior thereto, it shall be
36 imposed on the delivery of diesel motor fuel to a retail service
37 station. The collection of such tax shall not be made applicable to the
38 sale or use of diesel motor fuel under circumstances which preclude the
39 collection of such tax by reason of the United States constitution and
40 of laws of the United States enacted pursuant thereto. The prepaid tax
41 on diesel motor fuel shall not apply to the sale of previously untaxed
42 diesel motor fuel which is not enhanced Diesel motor fuel to a person
43 registered as a distributor of Diesel motor fuel other than a sale to
44 such person which involves a delivery at a filling station or into a
45 repository which is equipped with a hose or other apparatus by which
46 such fuel can be dispensed into the fuel tank of a motor vehicle or the
47 sale to or delivery at a filling station or other retail vendor of
48 water-white kerosene provided such filling station or other retail
49 vendor only sells such water-white kerosene exclusively for heating
50 purposes in containers of no more than twenty gallons or to the sale of
51 CNG or hydrogen .
52 § 10. Section 1111 of the tax law is amended by adding a new subdivi-
53 sion (m) to read as follows:
54 (m) The sales tax imposed under subdivision (a) of section eleven
55 hundred five and the compensating use tax imposed under section eleven
56 hundred ten of this article, when computed with respect to B20, shall be
S. 6460 72 A. 9560
1 computed on eighty percent of the receipts or consideration given or
2 contracted to be given for, or for the use of, B20 by the purchaser or
3 user.
4 § 11. Subdivision (a) of section 1115 of the tax law is amended by
5 adding a new paragraph 42 to read as follows:
6 (42) E85, CNG or hydrogen, for use in the operation of a motor vehi-
7 cle.
8 § 12. Subdivision (j) of section 1115 of the tax law, as amended by
9 section 8 of part B of chapter 63 of the laws of 2000, is amended to
10 read as follows:
11 (j) The exemptions provided in this section shall not apply to the tax
12 required to be prepaid pursuant to the provisions of section eleven
13 hundred two of this article nor to the taxes imposed by sections eleven
14 hundred five and eleven hundred ten of this article with respect to
15 receipts from sales and uses of motor fuel or diesel motor fuel, except
16 that the [exemption] exemptions provided in [paragraph] paragraphs nine
17 and forty-two of subdivision (a) of this section shall apply to the tax
18 required to be prepaid pursuant to the provisions of section eleven
19 hundred two of this article and to the taxes imposed by sections eleven
20 hundred five and eleven hundred ten of this article with respect to
21 sales and uses of kero-jet fuel, CNG, hydrogen and E85, provided, howev-
22 er, the exemption allowed for E85 shall be subject to the additional
23 requirements provided in section eleven hundred two of this article with
24 respect to E85 . The exemption provided in subdivision (c) of this
25 section shall apply to sales and uses of diesel motor fuel which is not
26 enhanced diesel motor fuel but only if all of such fuel is consumed
27 other than on the highways of this state, provided, however, this
28 exemption shall in no event apply to a sale of diesel motor fuel which
29 involves a delivery at a filling station or into a repository which is
30 equipped with a hose or other apparatus by which such fuel can be
31 dispensed into the fuel tank of a motor vehicle. The exemption provided
32 in subdivision (c) of this section shall apply to sales and uses of no
33 more than four thousand five hundred gallons of diesel motor fuel in a
34 thirty-day period for use or consumption either in the production for
35 sale of tangible personal property by farming or in a commercial horse
36 boarding operation, or in both but only if all of such fuel is consumed
37 other than on the highways of this state (except for the use of the
38 highways to reach adjacent farmlands or adjacent lands used in a commer-
39 cial horse boarding operation, or both), provided, however, such
40 exemption shall be applicable to the sale or use of more than four thou-
41 sand five hundred gallons of diesel motor fuel in a thirty-day period
42 for such use or consumption in accordance with a prior clearance given
43 by the commissioner.
44 § 13. The commissioner of environmental conservation, after consulting
45 with the New York state energy research and development authority, is
46 hereby authorized to promulgate and adopt regulations identifying renew-
47 able or other alternative fuels, which may be marketed in the future for
48 use in the operation of a motor vehicle and which are in addition to the
49 renewable and other alternative fuels already exempt under the tax law.
50 In promulgating such regulations, the commissioner of environmental
51 conservation shall take into consideration such factors as the environ-
52 mental benefits which would be derived from the use of such fuel and the
53 need to lessen the state's dependency on foreign oil. After any such
54 regulations are promulgated and adopted by the commissioner of environ-
55 mental conservation, the commissioner of taxation and finance is hereby
56 authorized to promulgate and adopt regulations necessary for the
S. 6460 73 A. 9560
1 exemption, reimbursement, refund or credit, or some combination thereof,
2 for the use in the operation of a motor vehicle of such renewable or
3 other alternative fuels set forth in such regulations of the commission-
4 er of environmental conservation, from the taxes imposed under articles
5 twelve-a, thirteen-a, twenty-one-a, twenty-eight and twenty-nine of the
6 tax law.
7 § 14. This act shall take effect on June 1, 2006, and shall apply to
8 sales made, fuel compounded or manufactured, and uses occurring on or
9 after such date, and with respect to sections seven through eleven of
10 this act, in accordance with applicable transactional provisions of
11 sections 1106 and 1217 of the tax law; provided, however, that the
12 commissioner of taxation and finance shall be authorized on and after
13 the date this act shall have become a law to adopt and amend any rules
14 or regulations and to take any steps necessary to implement the
15 provisions of this act.
16 PART W
17 Section 1. Paragraph 1 of subdivision (a) of section 21 of the tax law,
18 as amended by section 1 of part H of chapter 577 of the laws of 2004, is
19 amended to read as follows:
20 (1) General. A taxpayer subject to tax under article nine, nine-A,
21 twenty-two, thirty-two or thirty-three of this chapter shall be allowed
22 a credit against such tax, pursuant to the provisions referenced in
23 subdivision [(f)] (g) of this section. Such credit shall be allowed with
24 respect to a qualified site, as such term is defined in paragraph one of
25 subdivision (b) of this section. The amount of the credit in a taxable
26 year shall be the sum of the credit components specified in paragraphs
27 two, three and four of this subdivision applicable in such year.
28 § 2. Subdivision (f) of section 21 of the tax law, as added by section
29 1 of part H of chapter 1 of the laws of 2003, is relettered subdivision
30 (g), and a new subdivision (f) is added to read as follows:
31 (f) A taxpayer shall not be eligible for the tangible property credit
32 component described in paragraph three of subdivision (a) of this
33 section, with respect to each qualified site located in whole or in part
34 in the area of New York county bounded on the north by the centerline
35 running through Ninety-Sixth Street from the Henry Hudson Parkway and
36 then running east to the East River Drive, and on the south by a line
37 running from the intersection of the Hudson River with the Holland
38 Tunnel, and running thence east to Canal Street, then running along the
39 centerline of Canal Street to the intersection of the Bowery and Canal
40 Street, running thence in a southeasterly direction diagonally across
41 Manhattan Bridge Plaza, to the Manhattan Bridge.
42 § 3. Paragraph 1 of subdivision (b) of section 22 of the tax law, as
43 amended by section 4 of part H of chapter 577 of the laws of 2004, is
44 amended to read as follows:
45 (1) Allowance of credit. A developer of a qualified site who or which
46 is subject to tax under article nine, nine-A, twenty-two, thirty-two or
47 thirty-three of this chapter, shall be allowed a credit against such
48 tax, pursuant to the provisions referenced in paragraph [nine] ten of
49 this subdivision, for eligible real property taxes imposed on such site.
50 § 4. Paragraphs 8 and 9 of subdivision (b) of section 22 of the tax
51 law are renumbered paragraphs 9 and 10, and a new paragraph 8 is added
52 to read as follows:
53 (8) A taxpayer shall not be eligible for the remediated brownfield
54 credit for real property taxes described in this subdivision, with
S. 6460 74 A. 9560
1 respect to each qualified site located in whole or in part in the area
2 of New York county bounded on the north by the centerline running
3 through Ninety-Sixth Street from the Henry Hudson Parkway and then
4 running east to the East River Drive, and on the south by a line running
5 from the intersection of the Hudson River with the Holland Tunnel, and
6 running thence east to Canal Street, then running along the centerline
7 of Canal Street to the intersection of the Bowery and Canal Street,
8 running thence in a southeasterly direction diagonally across Manhattan
9 Bridge Plaza, to the Manhattan Bridge.
10 § 5. This act shall take effect immediately and shall apply with
11 respect to: (i) any credit which may be allowed at a later date which
12 relates to a request submitted to the department of environmental
13 conservation to participate in the brownfield cleanup program pursuant
14 to section 27-1407 of the environmental conservation law, (ii) eligibil-
15 ity for the credit described in subdivision (b) of section 22 of the tax
16 law based on the purchase or conveyance of a qualified site, or (iii)
17 eligibility for the credit described in paragraph 3 of subdivision (a)
18 of section 21 of the tax law or subdivision (b) of section 22 of the tax
19 law based on the transfer of a certificate of completion pursuant to
20 subdivision 5 of section 27-1419 of the environmental conservation law,
21 where such submission of a request to participate, such purchase or
22 conveyance of a qualified site or such transfer of a certificate of
23 completion occurs on or after February 1, 2006.
24 PART X
25 Section 1. Section 606 of the tax law is amended by adding a new
26 subsection (jj) to read as follows:
27 (jj) Historic homeownership rehabilitation credit. (1) A taxpayer
28 shall be allowed a credit, to be computed as hereinafter provided,
29 against the tax imposed by this article. The amount of the credit shall
30 be equal to either fifteen or twenty-five percent of the qualified reha-
31 bilitation expenditures made by the taxpayer with respect to a qualified
32 historic home and may be allowed in the taxable year in which the final
33 certification step of the certified rehabilitation is completed.
34 (A) A credit in the amount of fifteen percent shall be allowed for
35 qualified rehabilitation expenditures if only the exterior work has been
36 approved by a local landmark commission established pursuant to section
37 ninety-six-a or one hundred nineteen-dd of the general municipal law or
38 by the office of parks, recreation and historic preservation.
39 (B) A credit in the amount of twenty-five percent shall be allowed for
40 qualified rehabilitation expenditures that have been approved by the
41 office of parks, recreation and historic preservation or by a local
42 government certified pursuant to section 101(c)(1) of the national
43 historic preservation act. Under this subparagraph, approval is neces-
44 sary for the qualified rehabilitation expenditures related to both the
45 exterior work on the qualified historic home and interior work affecting
46 primary significant historic spaces of the qualified historic home.
47 (C) With respect to any particular residence of a taxpayer, that
48 taxpayer shall be allowed either the credit provided for in subparagraph
49 (A) or (B) of this paragraph, but not both credits.
50 (2) (A) With respect to any particular residence of a taxpayer, the
51 credit allowed under either subparagraph (A) or (B) of paragraph one of
52 this subsection shall not exceed fifty thousand dollars. In the case of
53 a husband and wife, the amount of the credit shall be divided between
54 them equally or in such other manner as they may both elect. If a
S. 6460 75 A. 9560
1 taxpayer incurs qualified rehabilitation expenditures in relation to
2 more than one residence in the same year, the total amount of credit
3 allowed under either subparagraph (A) or (B) of paragraph one of this
4 subsection for all such expenditures shall not exceed fifty thousand
5 dollars.
6 (B) If the credit allowed under either subparagraph (A) or (B) of
7 paragraph one of this subsection for any taxable year exceeds the
8 taxpayer's tax for such year and the taxpayer's New York adjusted gross
9 income for such year does not exceed one hundred thousand dollars, the
10 excess credit shall be treated as an overpayment of tax to be credited
11 or refunded in accordance with the provisions of section six hundred
12 eighty-six of this article, provided, however, that no interest shall be
13 paid thereon. If the taxpayer's New York adjusted gross income for such
14 year exceeds one hundred thousand dollars, the excess credit may be
15 carried over to the following year or years and may be deducted from the
16 taxpayer's tax for such year or years.
17 (3)(A) The term "qualified rehabilitation expenditure" means, for
18 purposes of this subsection, any amount properly chargeable to a capital
19 account:
20 (i) in connection with the certified rehabilitation of a qualified
21 historic home, and
22 (ii) for property for which depreciation would be allowable under
23 section 168 of the internal revenue code if the qualified historic home
24 were used in a trade or business.
25 (B) Such term shall not include (i) the cost of acquiring any building
26 or interest therein, (ii) any expenditure attributable to the enlarge-
27 ment of an existing building, or (iii) any expenditure made prior to
28 January first, two thousand six.
29 (C) Such term shall not include any expenditure in connection with the
30 rehabilitation of a qualified historic home unless at least five percent
31 of the total expenditures made in the rehabilitation process are alloca-
32 ble to the rehabilitation of the exterior of such building.
33 (D) If only a portion of a building is used as a residence of the
34 taxpayer, only qualified rehabilitation expenditures which are properly
35 allocable to such residential portion shall be taken into account under
36 this subsection.
37 (4)(A) The term "certified rehabilitation" means, for purposes of this
38 subsection, any rehabilitation of a certified historic structure which
39 has been approved and certified as being consistent with the standards
40 established by the commissioner of parks, recreation and historic pres-
41 ervation for rehabilitation by the office of parks, recreation and
42 historic preservation, a local government certified pursuant to section
43 101(c)(1) of the national historic preservation act or a local landmark
44 commission established pursuant to section ninety-six-a or one hundred
45 nineteen-dd of the general municipal law.
46 (B) A certified rehabilitation shall require:
47 (i) an initial certification that the structure meets the definition
48 of the term "certified historic structure";
49 (ii) a second certification, to be issued prior to construction,
50 certifying that the proposed rehabilitation work is consistent with
51 standards established by the commissioner of parks, recreation and
52 historic preservation for rehabilitation; and
53 (iii) a final certification issued when construction is completed,
54 certifying that the work was completed as proposed and that the costs
55 are consistent with the work completed. Such final certification shall
56 be acceptable as proof that the expenditures related to such
S. 6460 76 A. 9560
1 construction qualify as qualified rehabilitation expenditures for
2 purposes of the credit allowed under either subparagraph (A) or (B) of
3 paragraph one of this subsection.
4 (5)(A) The term "qualified historic home" means, for purposes of this
5 subsection, a certified historic structure located within New York
6 state:
7 (i) which has been substantially rehabilitated,
8 (ii) which, or any portion of which, is owned, in whole or part, by
9 the taxpayer,
10 (iii) in which the taxpayer resides during the taxable year in which
11 the taxpayer is allowed a credit under this subsection, and
12 (iv) which is either in whole or in part a targeted area residence
13 within the meaning of section 143(j) of the internal revenue code, or
14 located within a state empire zone designated under article eighteen-B
15 of the general municipal law.
16 (B) A building shall be treated as having been "substantially rehabil-
17 itated" if the qualified rehabilitation expenditures in relation to such
18 building total five thousand dollars or more.
19 (6) The term "certified historic structure" means, for purposes of
20 this subsection, any building (and its structural components) which:
21 (i) is listed in the state or national register of historic places, or
22 (ii) is located in a state or national registered historic district
23 and is certified as being of historic significance to the district.
24 (7) If the taxpayer holds stock as a tenant-shareholder in a cooper-
25 ative housing corporation, such taxpayer shall be treated as owning the
26 house or apartment which the taxpayer is entitled to occupy as such
27 shareholder.
28 (8)(A) A percentage of the total expenditures made in the rehabili-
29 tation of the exterior of a building containing cooperative or condomin-
30 ium dwelling units shall be attributed to each such unit within the
31 building based on the percentage of space each such unit occupies within
32 the building.
33 (B) In the case of a building where less than the entire building is
34 used as a residence of the taxpayer, only the portion of the total
35 expenditures made in the rehabilitation of the building that is attrib-
36 utable to the residence of the taxpayer shall be treated as qualified
37 rehabilitation expenditures for the purposes of this subsection.
38 (C) In the case of a building that is owned by and is a residence of
39 two or more persons, other than a husband and wife, the portion of the
40 total expenditures made in the rehabilitation of the building that is
41 attributable to each taxpayer shall be equal to the taxpayer's share of
42 ownership in such building.
43 (9) In the case of a building other than a building to which paragraph
44 ten of this subsection applies, qualified rehabilitation expenditures
45 shall be treated for purposes of this subsection as made on the date of
46 the final certification referred to in clause (iii) of subparagraph (B)
47 of paragraph four of this subsection.
48 (10)(A) In the case of a purchased qualified historic home, the
49 taxpayer shall be treated as having made, on the date of purchase, the
50 qualified rehabilitation expenditures made by the seller of such home.
51 For purposes of this subsection, expenditures made by the seller shall
52 be deemed qualified rehabilitation expenditures if such expenditures, if
53 made by the purchaser, would have so qualified.
54 (B) The term "purchased qualified historic home" means any qualified
55 historic home purchased by the taxpayer if:
S. 6460 77 A. 9560
1 (i) the taxpayer is the first purchaser of such home after the date of
2 the final certification referred to in clause (iii) of subparagraph (B)
3 of paragraph four of this subsection, and the purchase occurs within
4 five years after such date,
5 (ii) the taxpayer, during the taxable year in which the taxpayer is
6 allowed a credit under this subsection, resides in such home,
7 (iii) no credit was allowed to the seller under this subsection with
8 respect to such rehabilitation, and
9 (iv) the taxpayer is furnished with such information as the commis-
10 sioner determines is necessary to determine any credit under this
11 subsection.
12 (11)(A) If, before the end of the two-year period beginning either on
13 the date of the final certification referred to in clause (iii) of
14 subparagraph (B) of paragraph four of this subsection or, if paragraph
15 ten of this subsection applies, on the date of purchase of such building
16 by the taxpayer, the taxpayer disposes of such taxpayer's interest in
17 such building, or such building ceases to be used as a residence of the
18 taxpayer, the taxpayer's tax imposed by this article for the taxable
19 year in which such disposition or cessation occurs shall be increased by
20 the recapture portion of the credit allowed under this subsection for
21 all prior taxable years with respect to such rehabilitation.
22 (B) For purposes of subparagraph (A) of this paragraph, the recapture
23 portion shall be the product of the amount of credit claimed by the
24 taxpayer multiplied by a ratio, the numerator of which is equal to twen-
25 ty-four less the number of months the building is used as the taxpayer's
26 residence and the denominator of which is twenty-four.
27 (12) Nothing contained in this subsection shall be construed to impose
28 a duty upon a local landmark commission established pursuant to section
29 ninety-six-a or one hundred nineteen-dd of the general municipal law or
30 a local government certified pursuant to section 101(c)(1) of the
31 national historic preservation act to undertake any review or approval
32 of an application for the certification of the rehabilitation of histor-
33 ic structures and of rehabilitation expenditures provided for in this
34 subsection.
35 § 2. Section 13.15 of the parks, recreation and historic preservation
36 law is amended by adding a new subdivision 6 to read as follows:
37 6. The office may establish a fee or fees for its processing and
38 review of applications for the certification of the rehabilitation of
39 historic buildings and the approval of rehabilitation expenditures and
40 related work pursuant to subsection (jj) of section six hundred six of
41 the tax law. All revenues from these fees shall be deposited by the
42 comptroller in the miscellaneous special revenue fund to be credited to
43 the agency's patron services account and shall be used to support the
44 office's historic preservation program. Nothing in this subdivision
45 shall be construed to limit the ability of a local landmark commission
46 established pursuant to section ninety-six-a or one hundred nineteen-dd
47 of the general municipal law or a local government certified pursuant to
48 section 101(c)(1) of the national historic preservation act to establish
49 and charge fees for its processing and review of applications for the
50 certification of the rehabilitation of historic buildings and the
51 approval of rehabilitation expenditures.
52 § 3. This act shall take effect immediately and shall apply to taxable
53 years beginning on or after January 1, 2006.
54 PART Y
S. 6460 78 A. 9560
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (kk) to read as follows:
3 (kk) Conservation easement tax credit. (1) Credit allowed. In the case
4 of a taxpayer who is an eligible farmer within the meaning of subsection
5 (n) of this section and owns land that is subject to a conservation
6 easement held by a public or private conservation agency, there shall be
7 allowed a credit for twenty-five percent of the allowable school
8 district, county and town real property taxes on such land. In no event
9 shall the credit allowed under this subsection in combination with any
10 other credit for such school district, county and town real property
11 taxes under this section exceed such taxes.
12 (2) Conservation easement. For purposes of this subsection, the term
13 "conservation easement" means a perpetual and permanent conservation
14 easement as defined in article forty-nine of the environmental conserva-
15 tion law that serves to protect open space, scenic, natural resources,
16 biodiversity, agricultural, watershed and/or historic preservation
17 resources. Any conservation easement for which a tax credit is claimed
18 under this subsection shall be filed with the department of environ-
19 mental conservation, as provided for in article forty-nine of the envi-
20 ronmental conservation law and such conservation easement shall comply
21 with the provisions of title three of such article, and the provisions
22 of subdivision (h) of section 170 of the internal revenue code. Dedi-
23 cations of land for open space through the execution of conservation
24 easements for the purpose of fulfilling density requirements to obtain
25 subdivision or building permits shall not be considered a conservation
26 easement under this subsection.
27 (3) Land. For purposes of this subsection, the term "land" means a fee
28 simple title to real property located in this state, with or without
29 improvements thereon; rights of way; water and riparian rights; ease-
30 ments; privileges and all other rights or interests of any land or
31 description in, relating to or connected with real property, excluding
32 buildings, structures, or improvements.
33 (4) Public or private conservation agency. For purposes of this
34 subsection, the term "public or private conservation agency" means any
35 state, local, or federal governmental body; or any private not-for-pro-
36 fit charitable corporation or trust which is authorized to do business
37 in the state of New York, is organized and operated to protect land for
38 natural resources, conservation or historic preservation purposes, is
39 exempt from federal income taxation under section 501(c)(3) of the
40 internal revenue code, and has the power to acquire, hold and maintain
41 land and/or interests in land for such purposes.
42 (5) Credit limitation. The amount of the credit that may be claimed by
43 a taxpayer pursuant to this subsection shall not exceed five thousand
44 dollars in any given year.
45 (6) Application of the credit. If the amount of the credit under this
46 subsection for any taxable year shall exceed the taxpayer's tax for such
47 year, the excess shall be treated as an overpayment of tax to be credit-
48 ed or refunded in accordance with the provisions of section six hundred
49 eighty-six of this article, provided, however, that no interest shall be
50 paid therein.
51 § 2. Paragraph 4 of subsection (n) of section 606 of the tax law, as
52 amended by section 2 of part N of chapter 407 of the laws of 1999, is
53 amended to read as follows:
54 (4) Qualified agricultural property. For purposes of this subsection,
55 the term "qualified agricultural property" means land located in this
56 state which is used in agricultural production, and land improvements,
S. 6460 79 A. 9560
1 structures and buildings (excluding buildings used for the taxpayer's
2 residential purpose) located on such land which are used or occupied to
3 carry out such production. Qualified agricultural property also includes
4 land set aside or retired under a federal supply management or soil
5 conservation program or land that at the time it becomes subject to a
6 conservation easement, as defined under subsection (kk) of this section,
7 met the requirements under this paragraph .
8 § 3. Section 210 of the tax law is amended by adding a new subdivision
9 38 to read as follows:
10 38. Conservation easement tax credit. (1) Credit allowed. In the case
11 of a taxpayer who is an eligible farmer within the meaning of subdivi-
12 sion twenty-two of this section and who owns land that is subject to a
13 conservation easement held by a public or private conservation agency,
14 there shall be allowed a credit for twenty-five percent of the allowable
15 school district, county and town real property taxes on such land. In no
16 such case shall the credit allowed under this subdivision in combination
17 with any other credit for such school district, county and town real
18 property taxes under this section exceed such taxes.
19 (2) Conservation easement. For purposes of this subdivision, the term
20 "conservation easement" means a perpetual and permanent conservation
21 easement as defined in article forty-nine of the environmental conserva-
22 tion law that serves to protect open space, scenic, natural resources,
23 biodiversity, agricultural, watershed and/or historic preservation
24 resources. Any conservation easement for which a tax credit is claimed
25 under this subdivision shall be filed with the department of environ-
26 mental conservation, as provided for in article forty-nine of the envi-
27 ronmental conservation law and such conservation easement shall comply
28 with the provisions of title three of such article, and the provisions
29 of subdivision (h) of section 170 of the internal revenue code. Dedi-
30 cations of land for open space through the execution of conservation
31 easements for the purpose of fulfilling density requirements to obtain
32 subdivision or building permits shall not be considered a conservation
33 easement under this subdivision.
34 (3) Land. For purposes of this subdivision, the term "land" means a
35 fee simple title to real property located in this state, with or without
36 improvements thereon; rights of way; water and riparian rights; ease-
37 ments; privileges and all other rights or interests of any land or
38 description in, relating to or connected with real property, excluding
39 buildings, structures, or improvements.
40 (4) Public or private conservation agency. For purposes of this subdi-
41 vision, the term "public or private conservation agency" means any
42 state, local, or federal governmental body; or any private not-for-pro-
43 fit charitable corporation or trust which is authorized to do business
44 in the state of New York, is organized and operated to protect land for
45 natural resources, conservation or historic preservation purposes, is
46 exempt from federal income taxation under section 501(c)(3) of the
47 internal revenue code, and has the power to acquire, hold and maintain
48 land and/or interests in land for such purposes.
49 (5) Credit limitation. The amount of the credit that may be claimed by
50 a taxpayer pursuant to this subsection shall not exceed five thousand
51 dollars in any given year.
52 (6) Application of the credit. The credit allowed under this subdivi-
53 sion for any taxable year shall not reduce the tax due for such year to
54 less than the higher of the amounts prescribed in paragraphs (c) and (d)
55 of subdivision one of this section. However, if the amount of the credit
56 allowed under this subdivision for any taxable year reduces the tax to
S. 6460 80 A. 9560
1 such amount, any amount of the credit thus not deductible in such taxa-
2 ble year shall be treated as an overpayment of tax to be credited or
3 refunded in accordance with the provisions of subsection (c) of section
4 ten hundred eighty-eight of this chapter, except that, no interest shall
5 be paid thereon.
6 § 4. Paragraph (d) of subdivision 22 of section 210 of the tax law, as
7 amended by section 1 of part N of chapter 407 of the laws of 1999, is
8 amended to read as follows:
9 (d) Qualified agricultural property. For purposes of this subdivision,
10 the term "qualified agricultural property" means land located in this
11 state which is used in agricultural production, and land improvements,
12 structures and buildings (excluding buildings used for the taxpayer's
13 residential purpose) located on such land which are used or occupied to
14 carry out such production. Qualified agricultural property also includes
15 land set aside or retired under a federal supply management or soil
16 conservation program or land that at the time it becomes subject to a
17 conservation easement, as defined under subdivision thirty-eight of this
18 section, met the requirements under this paragraph .
19 § 5. This act shall take effect immediately and shall apply to taxable
20 years beginning on or after January 1, 2006.
21 PART Z
22 Section 1. Clause 10 of subdivision (b) of section 1107 of the tax law,
23 as added by chapter 285 of the laws of 2005, is amended to read as
24 follows:
25 [(10)] (11) Notwithstanding any other provision of law to the contra-
26 ry, clothing and footwear for which the receipt or consideration given
27 or contracted to be given is less than one hundred ten dollars per arti-
28 cle of clothing, per pair of shoes or other articles of footwear or per
29 item used or consumed to make or repair such clothing and which becomes
30 a physical component part of such clothing shall be exempt from the
31 taxes imposed by this section; provided that, during the periods
32 described in paragraph thirty of subdivision (a) of section eleven
33 hundred fifteen of this article, the less than one hundred ten dollar
34 threshold above shall be less than two hundred fifty dollars .
35 § 2. Paragraph 2 of subdivision (g) of section 1109 of the tax law, as
36 amended by section 4 of part KK of chapter 407 of the laws of 1999, is
37 amended to read as follows:
38 (2) Commencing with the sales tax quarterly period which commences on
39 [March] June first, two thousand six , and for each such quarterly period
40 thereafter in which clothing and footwear are exempt for any portion of
41 such quarter pursuant to paragraph thirty of subdivision (a) of section
42 eleven hundred fifteen of this article, the commissioner shall make such
43 determinations and certifications on the twelfth day of the month
44 following the month in which sales tax quarterly returns are due under
45 section eleven hundred thirty-six of this article with respect to such
46 quarterly period for as long as such clothing and footwear exemptions
47 from such taxes imposed pursuant to the authority of article twenty-nine
48 or by section eleven hundred seven or eleven hundred eight are in
49 effect. Neither the commissioner nor the comptroller shall be held
50 liable for any inaccuracy in such determinations and certifications.
51 Such determinations and certifications may be based on such information
52 as may be available to the commissioner at the time such determinations
53 and certifications must be made under this subdivision and may be esti-
54 mated on the basis of percentages or other indices calculated from
S. 6460 81 A. 9560
1 distributions from prior periods. The commissioner shall be authorized
2 to require such information as the commissioner deems necessary to
3 comply with the requirements of this subdivision from persons required
4 to file returns under such section eleven hundred thirty-six.
5 § 3. Paragraph 30 of subdivision (a) of section 1115 of the tax law,
6 as amended by section 84 of part A of chapter 56 of the laws of 1998, is
7 amended to read as follows:
8 (30) [Clothing] During the seven-day periods commencing on the Tuesday
9 immediately preceding the first Monday in September, known as Labor day,
10 and ending on Labor day, and commencing on the last Monday of January
11 and ending on the following Sunday, clothing and footwear for which the
12 receipt or consideration given or contracted to be given is less than
13 [one] two hundred [ten] fifty dollars per article of clothing, per pair
14 of shoes or other articles of footwear or per item used or consumed to
15 make or repair such clothing and which becomes a physical component part
16 of such clothing.
17 § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
18 separately amended by chapters 285 and 306 of the laws of 2005, subpara-
19 graph (i) as redesignated and subparagraph (ii) as added by chapter 710
20 of the laws of 2005, is amended to read as follows:
21 (1) (i) Either, all of the taxes described in article twenty-eight of
22 this chapter, at the same uniform rate, as to which taxes all provisions
23 of the local laws, ordinances or resolutions imposing such taxes shall
24 be identical, except as to rate and except as otherwise provided herein,
25 with the corresponding provisions in such article twenty-eight, includ-
26 ing the definition and exemption provisions of such article, so far as
27 the provisions of such article twenty-eight can be made applicable to
28 the taxes imposed by such city or county and with such limitations and
29 special provisions as are set forth in this article. However, any local
30 law enacted by any city of one million or more, imposing the taxes
31 authorized by this subdivision, shall omit the exemption provided in
32 subdivision (c) of section eleven hundred fifteen insofar as it applies
33 to fuel, gas, electricity, refrigeration and steam, and gas, electric,
34 refrigeration and steam service of whatever nature for use or consump-
35 tion directly and exclusively in the production of gas, electricity,
36 refrigeration or steam and, unless such city elects otherwise, the
37 provision for refund or credit contained in clause six of subdivision
38 (a) of section eleven hundred nineteen, and may omit (A) the exception
39 provided in paragraph three of subdivision (c) of section eleven hundred
40 five for receipts from laundering, dry-cleaning, tailoring, weaving,
41 pressing, shoe repairing and shoe shining and (B) the exception provided
42 in paragraph one of subdivision (f) of section eleven hundred five for
43 charges to a patron for admission to, or use of, facilities for sporting
44 activities in which such patron is to be a participant, such as bowling
45 alleys and swimming pools. Furthermore, any local law enacted by a city
46 of one million or more imposing the taxes authorized by this subdivision
47 may impose the taxes described in paragraph six of subdivision (c) of
48 section eleven hundred five at a rate in addition to the rate prescribed
49 by this section not to exceed two per centum in multiples of one-half of
50 one per centum. The taxes authorized under this subdivision may not be
51 imposed by a city or county unless the local law, ordinance or resol-
52 ution imposes such taxes so as to include all portions and all types of
53 receipts, charges or rents, subject to state tax under sections eleven
54 hundred five and eleven hundred ten, except as provided in the following
55 sentence. Any local law, ordinance or resolution enacted by any city of
56 less than one million or by any county or school district, imposing the
S. 6460 82 A. 9560
1 taxes authorized by this subdivision, shall, notwithstanding any
2 provision of law to the contrary, exclude from the operation of such
3 local taxes all sales of tangible personal property for use or consump-
4 tion directly and predominantly in the production of tangible personal
5 property, gas, electricity, refrigeration or steam, for sale, by manu-
6 facturing, processing, generating, assembly, refining, mining or
7 extracting; and all sales of tangible personal property for use or
8 consumption predominantly either in the production of tangible personal
9 property, for sale, by farming or in a commercial horse boarding opera-
10 tion, or in both; and, unless such city, county or school district
11 elects otherwise, shall omit the provision for credit or refund
12 contained in clause six of subdivision (a) of section eleven hundred
13 nineteen. Any local law, ordinance or resolution enacted by any city,
14 county or school district, imposing the taxes authorized by this subdi-
15 vision, shall omit the residential solar energy systems equipment
16 exemption provided for in subdivision (ee), the clothing and footwear
17 exemption provided for in paragraph thirty of subdivision (a) and the
18 qualified empire zone enterprise exemptions provided for in subdivision
19 (z) of section eleven hundred fifteen, unless such city (other than a
20 city of one million or more with respect to such clothing and footwear
21 exemption) , county or school district elects otherwise as to either such
22 residential solar energy systems equipment exemption or such clothing
23 and footwear exemption or such qualified empire zone enterprise
24 exemptions; provided that if such a city having a population of one
25 million or more enacts the resolution described in subdivision [(k) of
26 this section or repeals such resolution or enacts the resolution
27 described in subdivision] (l) of this section or repeals such resolution
28 or enacts the resolution described in subdivision (n) of this section or
29 repeals such resolution, such resolution or repeal shall also be deemed
30 to amend any local law, ordinance or resolution enacted by such a city
31 imposing such taxes pursuant to the authority of this subdivision,
32 whether or not such taxes are suspended at the time such city enacts its
33 resolution pursuant to subdivision [(k),] (l) or (n) of this section or
34 at the time of any such repeal; provided, further, that any such local
35 law, ordinance or resolution and section eleven hundred seven, as deemed
36 to be amended in the event a city of one million or more enacts a resol-
37 ution pursuant to the authority of subdivision [(k),] (l) or (n) of this
38 section, shall be further amended, as provided in section twelve hundred
39 eighteen, so that the residential solar energy systems equipment
40 exemption or the qualified empire zone enterprise exemptions in any such
41 local law, ordinance or resolution or in such section eleven hundred
42 seven are the same, as the case may be, as the residential solar energy
43 systems equipment exemption provided for in subdivision (ee)[, the
44 clothing and footwear exemption in paragraph thirty of subdivision (a)]
45 or the qualified empire zone enterprise exemptions in subdivision (z) of
46 section eleven hundred fifteen.
47 (ii) Notwithstanding any other provision of law to the contrary,
48 clothing and footwear for which the receipt or consideration given or
49 contracted to be given is less than one hundred ten dollars per article
50 of clothing, per pair of shoes or other articles of footwear or per item
51 used or consumed to make or repair such clothing and which becomes a
52 physical component part of such clothing shall be exempt from sales and
53 compensating use taxes imposed by a city of one million or more;
54 provided that, during the periods described in paragraph thirty of
55 subdivision (a) of section eleven hundred fifteen of this chapter, the
S. 6460 83 A. 9560
1 less than one hundred ten dollar threshold above shall be less than two
2 hundred fifty dollars .
3 [(ii) Any] (iii) Notwithstanding any other provision of the law to the
4 contrary, a county, imposing the taxes authorized by this [section,]
5 subdivision and having a population of not less than one hundred thir-
6 ty-nine thousand and not more than one hundred forty thousand, deter-
7 mined in accordance with the two thousand decennial federal census, may
8 [by] adopt or amend a local law, ordinance or resolution [elect] to
9 exempt from such local sales and compensating use taxes [all receipts or
10 consideration given or contracted to be given for] clothing and foot-
11 wear[, as defined in paragraph fifteen of subdivision (b) of section
12 eleven hundred one of this chapter. Under no circumstances shall the tax
13 exemption granted pursuant to this subparagraph be subject to any limi-
14 tation included in paragraph thirty of subdivision (a) of section eleven
15 hundred fifteen of this chapter. Every] for which the receipt or
16 consideration given or contracted to be given is less than one hundred
17 ten dollars per article of clothing, per pair of shoes or other articles
18 of footwear or per item used or consumed to make or repair such clothing
19 and which becomes a physical component part of such clothing; provided
20 that, if such county elects the exemption authorized by this subpara-
21 graph, then, during the periods described in paragraph thirty of subdi-
22 vision (a) of section eleven hundred fifteen of this chapter, the less
23 than one hundred ten dollar threshold above shall be less than two
24 hundred fifty dollars; and provided, further, that any such county shall
25 also comply with the provisions of subdivisions (d) and (e) of this
26 section, including provisions applicable to providing for the exemption
27 described in paragraph thirty of subdivision (a) of section eleven
28 hundred fifteen of this chapter or repealing such exemption .
29 § 5. Subdivision (k) of section 1210 of the tax law is REPEALED.
30 § 6. Local rejection or election of annual one-week clothing and foot-
31 wear exemption periods. Notwithstanding any provision of state or local
32 law, ordinance or resolution to the contrary:
33 (a)(1) Action by localities which provided the two 2005-06 one week
34 clothing/footwear exemption periods. A county or city imposing sales and
35 compensating use taxes pursuant to the authority of subdivision (a) of
36 section 1210, 1210-A, 1210-B or 1210-C of the tax law, which provided
37 the two 2005-06 one week clothing and footwear exemption periods, pursu-
38 ant to part J of chapter 61 of the laws of 2005, acting through its
39 local legislative body, is hereby authorized and empowered to adopt a
40 resolution, in the form set forth in paragraph two of this subdivision,
41 to reject the two annual one-week exemption periods for clothing and
42 footwear, as described in paragraph 30 of subdivision (a) of section
43 1115 of the tax law as amended by section three of this act, from its
44 sales and compensating use taxes. Such a resolution shall be effective
45 only if it is adopted exactly as set forth in such paragraph two of this
46 subdivision and such county or city adopts it by June 1, 2006, mails a
47 certified copy of it to the commissioner of taxation and finance by
48 certified mail by such date and otherwise complies with the requirements
49 of subdivisions (d) and (e) of section 1210 of the tax law. Such a
50 resolution adopted by a county or a city in compliance with this section
51 shall be deemed to amend such county's or city's local law, ordinance or
52 resolution imposing its sales and compensating use taxes. If such county
53 or city does not adopt the resolution provided for in this subdivision
54 to reject such two annual one-week exemption periods, in the manner
55 prescribed herein, then such exemption periods shall apply annually to
56 such taxes imposed by such county or city, unless such county or city
S. 6460 84 A. 9560
1 later repeals them pursuant to the authority of subdivision (a) of
2 section 1210 of the tax law.
3 (2) Form of resolution. Be it enacted by the (county or city) of
4 (insert locality's name) as follows:
5 Section one. The (county or city) of (insert locality's name) hereby
6 rejects the two annual one-week clothing and footwear exemption periods
7 commencing in the fall of 2006.
8 Section two. This resolution shall take effect immediately.
9 (b)(1) Action by localities which did not provide the two 2005-06 one
10 week clothing/footwear exemption periods. A county or city imposing
11 sales and compensating use taxes pursuant to the authority of subdivi-
12 sion (a) of section 1210, 1210-A, 1210-B or 1210-C of the tax law, which
13 did not provide the two 2005-06 one week clothing and footwear exemption
14 periods, pursuant to part J of chapter 61 of the laws of 2005, acting
15 through its local legislative body, is hereby authorized and empowered
16 to adopt a resolution, in the form set forth in paragraph two of this
17 subdivision, to elect the two annual one-week exemption periods for
18 clothing and footwear, as described in paragraph 30 of subdivision (a)
19 of section 1115 of the tax law as amended by section three of this act,
20 from its sales and compensating use taxes. Such a resolution shall be
21 effective only if it is adopted exactly as set forth in such paragraph
22 two of this subdivision and such county or city adopts it by June 1,
23 2006, mails a certified copy of it to the commissioner of taxation and
24 finance by certified mail by such date and otherwise complies with the
25 requirements of subdivisions (d) and (e) of section 1210 of the tax law.
26 Such a resolution adopted by a county or a city in compliance with this
27 section shall be deemed to amend such county's or city's local law,
28 ordinance or resolution imposing its sales and compensating use taxes.
29 If such county or city does not adopt the resolution provided for in
30 this subdivision to elect such two annual one-week exemption periods, in
31 the manner prescribed herein, then such exemption periods shall not
32 apply to such taxes imposed by such county or city, unless such county
33 or city later elects them pursuant to the authority of subdivision (a)
34 of section 1210 of the tax law.
35 (2) Form of resolution. Be it enacted by the (county or city) of
36 (insert locality's name) as follows:
37 Section one. The (county or city) of (insert locality's name) hereby
38 elects the two annual one-week clothing and footwear exemption periods
39 commencing in the fall of 2006.
40 Section two. This resolution shall take effect immediately and shall
41 apply in accordance with applicable transitional provisions of the New
42 York tax law.
43 (c) Subdivision (g) of section 1109 of the tax law shall apply if a
44 county or city located in the metropolitan commuter transportation
45 district provides the two annual one-week exemption periods authorized
46 by this part.
47 (d) Notwithstanding any other provision of law to the contrary, this
48 section shall not apply to a city having a population of one million or
49 more.
50 (e) This section shall apply to a county having a population of not
51 less than 139,000 and not more than 140,000, determined in accordance
52 with the 2000 decennial federal census, provided that the year-round
53 clothing and footwear exemption from the local sales and compensating
54 use taxes imposed by such a county, authorized by subparagraph (iii) of
55 paragraph 1 of subdivision (a) of section 1210 of the tax law as redes-
56 ignated and amended by section five of this act, is not in effect as of
S. 6460 85 A. 9560
1 June 1, 2006. Notwithstanding any other provision of the law to the
2 contrary, such a county which elected such year-round exemption pursuant
3 to the authority of such subparagraph (iii) may repeal such year-round
4 exemption as of June 1, 2006, pursuant to the authority of such para-
5 graph (iii), except that, for purposes of the application of this subdi-
6 vision, the March 1 date in subdivision (d) of section 1210 of the tax
7 law shall be read as June 1, 2006.
8 § 7. Section 4 of chapter 285 of the laws of 2005 amending the tax law
9 relating to exempting certain clothing and footwear sales and uses from
10 local sales and compensating use taxes, as amended by chapter 241 of the
11 laws of 2005, is amended to read as follows:
12 § 4. This act shall take effect September 1, 2005, and shall apply to
13 sales made and uses occurring on or after that date in accordance with
14 applicable transitional provisions of articles 28 and 29 of the tax law
15 [and shall expire March 31, 2006 when upon such date the provisions of
16 this act shall be deemed repealed; provided, however, that if the
17 proposed legislation submitted with the Executive Budget for state
18 fiscal year 2006-2007 submitted pursuant to section 3 of article VII of
19 the state constitution does not provide for any new tax reduction in
20 accordance with the provisions of section 5 of part J of chapter 61 of
21 the laws of 2005, as added by section 3 of part A of chapter 63 of the
22 laws of 2005, then this act shall expire March 31, 2007].
23 § 8. Section 1 of part A of chapter 101 of the laws of 2004 relating
24 to the suspension and the effectiveness of exemptions of certain cloth-
25 ing and footwear from sales and compensating use taxes imposed by or
26 pursuant to the authority of article 28 or 29 of the tax law is
27 REPEALED.
28 § 9. Part J of chapter 61 of the laws of 2005 amending the tax law and
29 other laws relating to implementing the state fiscal plan for the 2005-
30 2006 state fiscal year is REPEALED.
31 § 10. If a county having a population between 139,000 and 140,000 and
32 imposing sales and compensating use taxes pursuant to the authority of
33 subdivision (a) of section 1210 of the tax law adopts or amends a local
34 law, ordinance or resolution to provide the year-round clothing and
35 footwear exemption pursuant to subparagraph (iii) of paragraph 1 of
36 subdivision (a) of section 1210 of the tax law effective March 1, 2006,
37 then (a) the provisions of such subparagraph (iii), as amended by
38 section five of this act, shall apply to such exemption as of the effec-
39 tive date of this act, (b) such county's local law, ordinance or resol-
40 ution providing such exemption shall be deemed to have incorporated
41 therein the amendments to the provisions of such subparagraph (iii) by
42 section five of this act, and (c) such exemption as amended by this act
43 shall continue without interruption unless and until repealed by such
44 county or otherwise modified in accordance with law.
45 § 11. This act shall take effect June 1, 2006, provided that sections
46 six and seven of this act shall take effect immediately, and shall apply
47 in accordance with the applicable transitional provisions of sections
48 1106 and 1217 of the tax law.
49 PART AA
50 Section 1. Section 2 of part L of chapter 61 of the laws of 2005, amend-
51 ing the tax law and other laws relating to implementing the state fiscal
52 plan for the 2005-2006 state fiscal year, is amended to read as follows:
53 § 2. This act shall take effect immediately and shall apply to taxable
54 years beginning [in] on and after January 1, 2005 [and 2006]; and shall
S. 6460 86 A. 9560
1 expire January 1, [2007] 2010 when upon such date the provisions of this
2 act shall be deemed repealed.
3 § 2. This act shall take effect immediately.
4 PART BB
5 Section 1. Section 2 of part E of chapter 60 of the laws of 2004, amend-
6 ing the tax law relating to the fixed dollar minimum tax, is amended to
7 read as follows:
8 § 2. This act shall take effect immediately and apply to taxable years
9 commencing [in] on or after January 1, 2004 [and 2005] and shall expire
10 and be of no force and effect for taxable years commencing on or after
11 January 1, [2006] 2009 .
12 § 2. This act shall take effect immediately.
13 PART CC
14 Section 1. Subdivision 4 of section 22 of the public housing law, as
15 amended by section 1 of part F of chapter 61 of the laws of 2005, is
16 amended to read as follows:
17 4. Statewide limitation. The aggregate dollar amount of credit which
18 the commissioner may allocate to eligible low-income buildings under
19 this article shall be [eight] ten million dollars during the year two
20 thousand six, and shall increase annually thereafter in two million
21 dollar increments per year . The limitation provided by this subdivision
22 applies only to allocation of the aggregate dollar amount of credit by
23 the commissioner, and does not apply to allowance to a taxpayer of the
24 credit with respect to an eligible low-income building for each year of
25 the credit period.
26 § 2. This act shall take effect immediately.
27 PART DD
28 Section 1. Section 2 of chapter 218 of the laws of 2004, amending the
29 tax law relating to an exemption from the tax on admission charges with
30 respect to certain places of amusement, as amended by chapter 14 of the
31 laws of 2005, is amended to read as follows:
32 § 2. This act shall take effect immediately and shall apply to any
33 admission to or the use of facilities of a place of amusement after such
34 date, whether or not the admission or other charge was paid prior to
35 such date, unless the tickets were actually sold and delivered (other
36 than for resale) prior to such date to a patron for admission or for the
37 use of rides or other facilities on or after such date[; and shall
38 expire October 1, 2006 when upon such date the provisions of this act
39 shall be deemed repealed].
40 § 2. This act shall take effect immediately.
41 PART EE
42 Section 1. Subdivision 3 of section 205 of the tax law, as added by
43 section 8 of part U1 of chapter 62 of the laws of 2003, is amended to
44 read as follows:
45 3. [From the] The moneys collected from the taxes imposed by sections
46 one hundred eighty-three and one hundred eighty-four of this article on
47 and after April first, two thousand [four] six , after reserving amounts
48 for refunds or reimbursements, shall be distributed as follows: twenty
S. 6460 87 A. 9560
1 percent of such moneys shall be deposited to the credit of the dedicated
2 highway and bridge trust fund established by section eighty-nine-b of
3 the state finance law[. The remainder], fifty-three percent of such
4 moneys shall be deposited in the mass transportation operating assist-
5 ance fund to the credit of the metropolitan mass transportation operat-
6 ing assistance account created pursuant to section eighty-eight-a of the
7 state finance law and twenty-seven percent of such moneys shall be
8 deposited in such mass transportation operating assistance fund to the
9 credit of the public transportation systems operating assistance account
10 created pursuant to such section .
11 § 2. Section 13 of part U1 of chapter 62 of the laws of 2003, amending
12 the vehicle and traffic law and other laws relating to increasing
13 certain motor vehicle transaction fees, as amended by section 1-b of
14 part A of chapter 63 of the laws of 2005, is amended to read as follows:
15 § 13. This act shall take effect immediately; provided however that
16 sections one through seven and nine of this act shall expire and be
17 deemed repealed on March 31, 2010; provided further, however, that the
18 provisions of section eleven of this act shall take effect April 1, 2004
19 and shall expire and be deemed repealed on March 31, 2010.
20 § 3. This act shall take effect April 1, 2006 and shall apply to
21 moneys collected on and after such date.
22 PART FF
23 Section 1. Section 5-a of the tax law, as added by section 1 of part N
24 of chapter 60 of the laws of 2004, is amended to read as follows:
25 § 5-a. [Sales and compensating use tax obligations of certain
26 contractors, subcontractors and their affiliates] Certification of
27 registration to collect sales and compensating use taxes by certain
28 contractors, affiliates and subcontractors . 1. For purposes of this
29 section, the following terms shall have the specified meanings:
30 (a) "Affiliate" means a person which[, through stock ownership or any
31 other affiliation,] directly, indirectly or constructively
32 (1) controls another person;
33 (2) is controlled by another person; or
34 (3) is, along with another person, under the control of a common
35 parent.
36 "Control" means possession of the power to direct, or cause the direc-
37 tion of, the management and policies of another person.
38 (b) "Commodities" means commodities as defined in article eleven of
39 the state finance law [and tangible personal property].
40 (c) (1) "Contract" means an agreement between a contractor and a
41 covered agency for the [sale] purchase by the covered agency, pursuant
42 to article eleven of the state finance law, of commodities or services
43 having a value in excess of [fifteen] one hundred thousand dollars.
44 The term "contract" shall also include a centralized contract, as
45 defined in article eleven of the state finance law, with a value in
46 excess of one hundred thousand dollars.
47 (2) The term "contract" shall not include:
48 (A) a purchase by a covered agency of commodities or services with a
49 value in excess of one hundred thousand dollars based upon a formal
50 mini-bid solicitation pursuant to a centralized contract;
51 (B) a grant or an intergovernmental agreement; or
52 (C) a purchase of commodities or services from a "preferred source,"
53 as such term is defined in article eleven of the state finance law.
S. 6460 88 A. 9560
1 (3) Multiple purchases of commodities or services by a covered agency
2 from the same contractor during a state fiscal year shall not be aggre-
3 gated for purposes of determining whether the greater than one hundred
4 thousand dollar threshold described in this subdivision has been met.
5 (d) "Contractor" means a person awarded a contract.
6 (e) "Covered agency" [includes the state, any department, board,
7 bureau, commission, division, office, council or agency of the state,
8 and] means a "state agency" for purposes of article eleven of the state
9 finance law, the legislature, the judiciary, or a public authority or
10 [a] public benefit corporation at least one of whose members is
11 appointed by the governor .
12 (f) "Department" means the department of taxation and finance.
13 (g) "Person" means an individual, partnership, limited liability
14 company, society, association, joint stock company, or corporation;
15 provided, however, that a "person" shall not include a "public corpo-
16 ration" or an "education corporation," as such terms are defined in
17 section sixty-six of the general construction law, a not-for-profit
18 corporation whose contracts are subject to approval in accordance with
19 article eleven-B of the state finance law, a board of cooperative educa-
20 tional services created pursuant to article forty of the education law,
21 or a soil and water conservation district created pursuant to section
22 five of the soil and water conservation districts law.
23 (h) "Sales and compensating use taxes" means state and local sales and
24 compensating use taxes imposed by article twenty-eight and pursuant to
25 the authority of article twenty-nine of this chapter, which are adminis-
26 tered by the commissioner.
27 [(g)] (i) "Sales tax quarter" means a quarterly period ending on the
28 last day of February, May, August or November.
29 (j) "Services" means services as defined in article eleven of the
30 state finance law [and taxable services].
31 [(h)] (k) "Subcontractor" means a person [providing commodities or
32 performing services for a contractor or another subcontractor in the
33 fulfillment of a contract] engaged by a contractor or another subcon-
34 tractor to perform a portion of the contractor's obligations under a
35 contract .
36 [(i)] (l) "State" means the state of New York.
37 [(j)] (m) "Taxable services" means services, the receipts from the
38 sale of which are taxable by article twenty-eight or article twenty-nine
39 of this chapter.
40 [(k)] (n) The terms ["person,"] "receipts," "sale," "tangible personal
41 property" and "vendor" have the meanings given in article twenty-eight
42 of this chapter.
43 2. (a) Notwithstanding any provision of law to the contrary, [a
44 contract shall not be approved by the state comptroller or, in cases in
45 which the state comptroller is not required to approve the contract, by
46 such other agency or unit thereof responsible for approval of the
47 contract, and shall not be valid, effective or binding against the
48 covered agency, if the contractor, any affiliate of the contractor, any
49 subcontractor or any affiliate of the subcontractor makes sales deliv-
50 ered by any means to locations within the state of tangible personal
51 property or taxable services having a value in excess of three hundred
52 thousand dollars, and is not registered for sales and compensating use
53 tax purposes with the commissioner under sections eleven hundred thir-
54 ty-four and twelve hundred fifty-three of this chapter.
55 (b) Prior to the date] before a contract [is to be submitted for
56 approval] may take effect , the contractor [shall certify in writing,]
S. 6460 89 A. 9560
1 must comply with the requirements of subparagraphs one and two of this
2 paragraph.
3 (1) The contractor must file a written certification with the depart-
4 ment, made under penalty of perjury, stating that:
5 [(1)] (A) if the contractor [makes] made sales delivered by any means
6 to locations within the state of tangible personal property or taxable
7 services having a value in excess of three hundred thousand dollars
8 during the immediately preceding consecutive four sales tax quarters ,
9 the contractor [holds a valid certificate of authority] is registered
10 for sales and compensating use tax purposes with the department under
11 sections eleven hundred thirty-four and twelve hundred fifty-three of
12 this chapter . If the contractor [does] did not make sales delivered by
13 any means to locations within the state of tangible personal property or
14 taxable services having a value in excess of three hundred thousand
15 dollars during such four sales tax quarters , then the contractor shall
16 so certify;
17 [(2)] (B) if any affiliate of the contractor [makes] made sales deliv-
18 ered by any means to locations within the state of tangible personal
19 property or taxable services having a value in excess of three hundred
20 thousand dollars during the immediately preceding consecutive four sales
21 tax quarters , to the best of the contractor's knowledge, each such
22 affiliate [holds a valid certificate of authority] is registered for
23 sales and compensating use tax purposes with the department under
24 sections eleven hundred thirty-four and twelve hundred fifty-three of
25 this chapter . If the contractor does not have any affiliates [making],
26 or does not have any affiliates which made sales delivered by any means
27 to locations within the state of tangible personal property or taxable
28 services having a value in excess of three hundred thousand dollars
29 during such four sales tax quarters , then the contractor shall so certi-
30 fy; and
31 [(3)] (C) if any subcontractor [or any affiliate of the subcontractor
32 makes] made sales delivered by any means to locations within the state
33 of tangible personal property or taxable services having a value in
34 excess of three hundred thousand dollars during the immediately preced-
35 ing consecutive four sales tax quarters , to the best of the contractor's
36 knowledge, each such subcontractor [and affiliate holds a valid certif-
37 icate of authority] is registered for sales and compensating use tax
38 purposes with the department under sections eleven hundred thirty-four
39 and twelve hundred fifty-three of this chapter . If [there is no subcon-
40 tractor] the contractor does not have any subcontractors, or [affiliate
41 of the subcontractor] there are no subcontractors [making] which made
42 sales delivered by any means to locations within the state of tangible
43 personal property or taxable services having a value in excess of three
44 hundred thousand dollars during such four sales tax quarters , then the
45 contractor shall so certify.
46 [(c)] (D) The [contractor's] certification[, along with true copies,
47 if applicable, of the certificate of authority held by the contractor
48 and, if applicable, by, each affiliate of the contractor, each subcon-
49 tractor and each affiliate of the subcontractor, shall be incorporated
50 in, and made a part of, the contract] required by this subparagraph
51 shall include such additional information as the department deems neces-
52 sary for the proper administration of this section .
53 [(d)] (E) The certification required by this subparagraph need only be
54 filed with the department once and, once filed, shall be deemed to
55 satisfy the requirements of this subparagraph for purposes of any subse-
56 quent contract to which the contractor is a party; provided, however,
S. 6460 90 A. 9560
1 that if the contractor, or an affiliate or subcontractor, is not certi-
2 fied as registered with the department for sales and compensating use
3 tax purposes on the contractor's original certification, and such
4 contractor, affiliate or subcontractor makes sales delivered by any
5 means to locations within the state of tangible personal property or
6 taxable services having a value in excess of three hundred thousand
7 dollars during any consecutive four sales tax quarters which follow the
8 sales tax quarter in which the contractor's original certification was
9 made, then the contractor shall, as soon as possible after such occur-
10 rence, file an amended written certification with the department, made
11 under penalty of perjury, indicating that such contractor, affiliate or
12 subcontractor, as applicable, is registered with the department for
13 sales and compensating use tax purposes.
14 (2) The contractor shall also provide the procuring covered agency
15 with a written certification, made under penalty of perjury, stating
16 that:
17 (A) the contractor has filed the certification prescribed by this
18 section with the department, and that such certification is correct and
19 complete, or
20 (B) such certification is not required to be filed with the depart-
21 ment, and explaining the reasons for such determination.
22 (C) the certification required by this subparagraph shall be included
23 in the procurement record (as such term is defined in article eleven of
24 the state finance law), or similar documentation if the state comp-
25 troller is not required by law to approve the contract.
26 (D) any question as to the accuracy of the contractor certification
27 described in clause (B) of this subparagraph shall be resolved by the
28 contracting covered agency, in consultation, as necessary, with the
29 state comptroller and the department.
30 (b) A contractor, affiliate of the contractor, or subcontractor [or
31 affiliate of the subcontractor] which registers for sales and compensat-
32 ing use tax purposes [with the commissioner] under sections eleven
33 hundred thirty-four and twelve hundred fifty-three of this chapter in
34 order to comply with the provisions of this subdivision shall [file a
35 certificate of registration with the commissioner at least twenty days
36 prior to the date the contract is to be submitted for approval to the
37 state comptroller or, in cases in which the state comptroller is not
38 required to approve the contract, to such other agency or unit thereof
39 responsible for approval of the contract. Once registered, such contrac-
40 tor, affiliate of the contractor, subcontractor or affiliate of the
41 subcontractor shall] be a vendor and shall comply with and be subject to
42 the provisions of articles twenty-eight and twenty-nine of this chapter.
43 [(e)] (c) The [registration requirement] certification requirements
44 prescribed by this subdivision in order for a contract to [be approved]
45 take effect shall be in addition to any other requirements prescribed by
46 law [for approval] relating to the formation of contracts to which a
47 covered agency is a party.
48 3. (a) [During the term of a contract, the contractor shall, at the
49 times specified in paragraph (b) of this subdivision,] If a contract has
50 taken effect, and the terms of such contract provide that it may be
51 renewed upon expiration of an initial or subsequent term, then the
52 contractor shall, no later than the day prior to the commencement date
53 of the applicable renewal term, certify to the contracting covered agen-
54 cy in writing, and under penalty of perjury, that:
55 (1) [if the contractor makes sales delivered by any means to locations
56 within the state of tangible personal property or taxable services
S. 6460 91 A. 9560
1 having a value in excess of three hundred thousand dollars, the contrac-
2 tor holds a valid certificate of authority. If the contractor does not
3 make sales delivered by any means to locations within the state of
4 tangible personal property or taxable services having a value in excess
5 of three hundred thousand dollars, then the contractor shall so certify;
6 and
7 (2) if any affiliate of the contractor makes sales delivered by any
8 means to locations within the state of tangible personal property or
9 taxable services having a value in excess of three hundred thousand
10 dollars, to the best of the contractor's knowledge, each such affiliate
11 holds a valid certificate of authority. If the contractor does not have
12 any affiliates making sales delivered by any means to locations within
13 the state of tangible personal property or taxable services having a
14 value in excess of three hundred thousand dollars, then the contractor
15 shall so certify; and
16 (3) if any subcontractor or any affiliate of the subcontractor makes
17 sales delivered by any means to locations within the state of tangible
18 personal property or taxable services having a value in excess of three
19 hundred thousand dollars, to the best of the contractor's knowledge,
20 each such subcontractor and affiliate holds a valid certificate of
21 authority. If there is no subcontractor or affiliate of the subcontrac-
22 tor making sales delivered by any means to locations within the state of
23 tangible personal property or taxable services having a value in excess
24 of three hundred thousand dollars, then the contractor shall so certify]
25 the contractor has filed the certification prescribed by this section
26 with the department, and that such certification is correct and
27 complete, or
28 (2) that such certification is not required to be filed with the
29 department, and explains the reasons for such determination.
30 (3) Any question as to the accuracy of the contractor certification
31 described in subparagraph two of this paragraph shall be resolved by the
32 contracting covered agency, in consultation, as necessary, with the
33 state comptroller and the department .
34 (b) [The contractor's certification shall be made:
35 (1) in the case of an approved contract having a term of more than one
36 year, annually, by the day prior to the commencement date of the next
37 succeeding year of the contract;
38 (2) in the case of an approved contract which authorizes renewal ther-
39 eof at the conclusion of an initial or subsequent term, by the day prior
40 to the commencement date of the applicable renewal term.
41 (c)] The [contractor's] certification[, along with true copies, if
42 applicable, of the certificate of authority held by the contractor and,
43 if applicable, by each affiliate of the contractor, each subcontractor
44 and each affiliate of the subcontractor making sales delivered by any
45 means to locations within the state of tangible personal property or
46 taxable services having a value in excess of three hundred thousand
47 dollars,] required by paragraph (a) of this subdivision shall be [incor-
48 porated in, and] made a part of[,] the [contract] procurement record (as
49 such term is defined in article eleven of the state finance law), or
50 similar documentation if the state comptroller is not required by law to
51 approve the contract .
52 [(d)] (c) If[, at the times specified in paragraph (b) of this subdi-
53 vision,] the contractor fails to make the certification required by
54 paragraph (a) of this subdivision, or if, during the term of the
55 contract, the department or the covered agency discovers that such
56 certification [was] is false [when made], then such failure or false
S. 6460 92 A. 9560
1 certification shall be a material breach of the contract, and the
2 contract shall be subject to termination if the covered agency deter-
3 mines that such action is in the best interests of [such agency] the
4 state .
5 [(e)] (d) A contractor, affiliate of the contractor, or subcontractor
6 [or affiliate of the subcontractor] which registers for sales and
7 compensating use tax purposes [with the commissioner] under sections
8 eleven hundred thirty-four and twelve hundred fifty-three of this chap-
9 ter in order to comply with the provisions of paragraph (a) of this
10 subdivision shall [file a certificate of registration with the commis-
11 sioner at least twenty days prior to making sales delivered by any means
12 to locations within the state of tangible personal property or taxable
13 services having a value in excess of three hundred thousand dollars.
14 Once registered, such contractor, affiliate of the contractor, subcon-
15 tractor or affiliate of the subcontractor shall] be a vendor and shall
16 comply with and be subject to the provisions of articles twenty-eight
17 and twenty-nine of this chapter.
18 4. [The department shall create and maintain an electronic database
19 containing information regarding persons registered with the commission-
20 er under sections eleven hundred thirty-four and twelve hundred fifty-
21 three of this chapter and persons whose certificates of authority issued
22 under or pursuant to such provisions have been suspended, revoked or not
23 renewed. Such database shall be made available to covered agencies for
24 query as to the sales and compensating use tax registration status of
25 contractors and their affiliates and their subcontractors and their
26 affiliates.
27 5.] The provisions of this section shall not apply to a contract if[:
28 (a) the covered agency determines in writing that
29 (1) the contract is necessary to address an "emergency," within the
30 meaning of article eleven of the state finance law, and the contractor
31 is the only person capable of fulfilling the contract;
32 (2) the contract is necessary to ensure the provision of essential
33 services, and the contractor is the only person capable of fulfilling
34 the contract; or
35 (3) the contract is necessary to ensure the public health, safety and
36 welfare, and the contractor is the only person capable of fulfilling the
37 contract; and
38 (b) the state comptroller or, in cases in which the state comptroller
39 is not required to approve the contract, such other agency or unit ther-
40 eof responsible for approval of the contract, in writing:
41 (1) concurs, with the determination of the covered agency that one or
42 more of the conditions specified in paragraph (a) of this subdivision
43 apply; and
44 (2) explains, the reasons supporting such determination] the procuring
45 covered agency and the state comptroller, or other approving authority
46 if the state comptroller is not required to approve the contract, find
47 in writing that the contract is necessary to address an "emergency,"
48 within the meaning of article eleven of the state finance law, or to
49 ensure the public health, safety or welfare. Such written finding shall
50 explain the reasons supporting such determination .
51 § 2. This act shall take effect immediately, and shall apply to
52 contracts, as defined in section 5-a of the tax law, resulting from
53 solicitations to purchase issued by covered agencies on or after January
54 1, 2005 and awarded, amended, extended or assigned on or after the date
55 this act shall have become a law.
S. 6460 93 A. 9560
1 PART GG
2 Section 1. The tax law is amended by adding a new section 1621 to read
3 as follows:
4 § 1621. Video lottery franchise gaming. a. The division is hereby
5 authorized to license, pursuant to rules and regulations to be promul-
6 gated by the division, the operation and conduct of a lottery to be
7 known as video lottery franchise gaming to be conducted at up to three
8 venues throughout the state, each requiring a separate license.
9 Licenses shall be awarded by the division on a competitive basis and
10 each proposed video lottery franchise location shall be subject to the
11 approval of the division. Any entity, including but not limited to an
12 off-track betting corporation, which demonstrates to the satisfaction of
13 the division that it possesses the qualifications and expertise to oper-
14 ate video lottery franchise gaming shall be eligible to competitively
15 bid for one or more available licenses; provided, however, that the
16 following geographic restrictions shall apply: (i) except as otherwise
17 authorized in this section, a license may not be granted pursuant to
18 this section for any location within fifteen miles of a facility
19 licensed pursuant to section sixteen hundred seventeen-a of this arti-
20 cle; (ii) the operation of video lottery franchise gaming as authorized
21 by this section within the city of New York shall be permitted only in
22 the counties of New York (south of fifty-ninth street), Kings and Rich-
23 mond; and (iii) a license may not be granted pursuant to this section
24 for any location within the counties of Westchester, Rockland and
25 Putnam. Notwithstanding any inconsistent provision of law, video lottery
26 franchise gaming at each approved location pursuant to this section
27 shall be deemed an approved activity at such location under the relevant
28 city, county, town, or village land use or zoning ordinances, rules or
29 regulations. No entity operating video lottery franchise gaming pursuant
30 to this section may house such gaming activity in a structure deemed or
31 approved by the division as "temporary" for longer than eighteen months.
32 b. The division shall promulgate rules and regulations governing all
33 aspects of the operation and conduct of video lottery franchise gaming,
34 including but not limited to, the criteria for awarding such licenses,
35 establishing license fees, approving locations, setting agent fees and
36 establishing hours of operation, subject to the requirements of this
37 section. Criteria for awarding licenses shall include, but not be limit-
38 ed to, maximizing financial support for education, timely implementation
39 of video lottery franchise gaming, location and quality of the facility
40 and expertise of the applicant. Such rules and regulations may be
41 adopted on an emergency basis pursuant to section two hundred two of the
42 state administrative procedure act.
43 c. In consideration of its licensure and participation in video
44 lottery franchise gaming, each licensee shall pay a one-time license fee
45 to be established by the division for each license issued, to be paid
46 into the state treasury, to the credit of the state lottery fund created
47 by section ninety-two-c of the state finance law.
48 d. The specifications for video lottery franchise gaming shall be
49 designed in such a manner as to pay prizes that average no less than
50 ninety percent of sales.
51 e. Notwithstanding section one hundred twenty-one of the state finance
52 law, on or before the twentieth day of each month, the division shall
53 pay into the state treasury, to the credit of a separate and distinct
54 account known as the sound basic education account within the state
55 lottery fund created by section ninety-two-c of the state finance law,
S. 6460 94 A. 9560
1 the balance of the total revenue after payout for prizes, less an amount
2 established by such rules and regulations to be retained by the division
3 for operation, administration and procurement purposes; and less a
4 lottery agent fee to be paid to each licensee at a rate, to be estab-
5 lished by such rules and regulations, not to exceed twenty percent of
6 total revenue wagered after payout of prizes at such agent facility
7 which will provide the maximum lottery support for education while also
8 ensuring the effective implementation of this section through reasonable
9 reimbursement and compensation to the licensees for participation in
10 video lottery franchise gaming.
11 f. The director shall be authorized to enter into contracts as an
12 agent of the state with private entities and non-profit racing associ-
13 ations licensed pursuant to this section and section sixteen hundred
14 seventeen-a of this article to encourage the timely participation in
15 video lottery gaming. Such contracts may include a commitment by the
16 state that each video lottery gaming facility shall have the exclusive
17 right to operate such facility at its licensed location consistent with
18 the geographical restrictions contained in subdivision a of this section
19 for a term of ten years. Notwithstanding any other provision of law to
20 the contrary, an agreement by a video lottery gaming facility operator
21 to build and operate a licensed video lottery gaming facility shall be
22 deemed good and valid consideration for a commitment by the state for
23 such exclusive right to operate such facility.
24 g. Notwithstanding any law to the contrary, the division shall be
25 authorized to amend, upon negotiated agreement, competitively bid
26 contracts in force and valid on the effective date of this section in
27 connection with video lottery gaming authorized pursuant to section
28 sixteen hundred seventeen-a of this article to allow those contractors
29 to provide goods and services in furtherance of this section, and to
30 extend the terms of such contracts.
31 § 2. This act shall take effect immediately.
32 PART HH
33 Section 1. The opening paragraph of subdivision 1 and the opening para-
34 graph of subdivision 2 of section 1309 of the abandoned property law, as
35 amended by chapter 591 of the laws of 1979, are amended to read as
36 follows:
37 Any amount held or owing by any organization other than a banking
38 organization for the payment of a travelers check on which such organ-
39 ization is directly liable[, sold by such organization on or after Janu-
40 ary first, nineteen hundred thirty,] shall be deemed abandoned property
41 if such amount is held or owing for payment of a travelers check which
42 shall have been outstanding for more than [fifteen] five years from the
43 date of its sale and
44 Any amount held or owing by any such organization for the payment of a
45 money order, or for the payment of any instrument drawn or issued to
46 effect the payment therefor, [sold by such organization on or after
47 January first, nineteen hundred thirty] shall be deemed abandoned prop-
48 erty when such amount has remained unpaid to the person entitled thereto
49 for [seven] five years and
50 § 2. Paragraph (c) of subdivision 1 of section 300 of the abandoned
51 property law, as amended by chapter 15 of the laws of 1983, subparagraph
52 (ii) as amended by chapter 61 of the laws of 1989, is amended to read as
53 follows:
S. 6460 95 A. 9560
1 (c) Any amount held or owing by a banking organization for the payment
2 of a negotiable instrument under article three of the uniform commercial
3 code or a certified check whether negotiable or not, on which such
4 organization is directly liable, which instrument shall have been
5 outstanding for more than [five] three years from the date it was paya-
6 ble or from the date of its issuance, if payable on demand; provided,
7 however, the provisions of this paragraph (c) shall not apply
8 (i) to any negotiable instrument payable outside the continental
9 limits of the United States, or
10 (ii) to any instrument payable in currency other than United States
11 currency.
12 § 3. Subdivision 1 of section 1315 of the abandoned property law, as
13 amended by chapter 166 of the laws of 1991, is amended to read as
14 follows:
15 1. Any [amount representing outstanding checks issued on and after
16 July first, nineteen hundred seventy-four in payment for goods or for
17 services and any] unclaimed amount for services not rendered or for
18 goods not delivered, which amount was received after July first, nine-
19 teen hundred seventy-four, or in the case of a public utility company as
20 that term is defined in subdivision twenty-three of section two of the
21 public service law, on or after July first, nineteen hundred eighty, and
22 any unclaimed amount representing unredeemed gift certificates sold
23 after December thirty-first, nineteen hundred eighty-three, including
24 gift certificates for merchandise only in which case the face value of
25 such certificate shall be deemed the amount deemed abandoned, and owing
26 in this state, or held by any corporation (other than a public corpo-
27 ration), joint stock company, individual, association of two or more
28 individuals, committee or business trust in this state, and which has
29 remained unclaimed by the owner of such amount for five years, shall be
30 deemed abandoned property.
31 § 4. Section 1315 of the abandoned property law is amended by adding a
32 new subdivision 1-a to read as follows:
33 1-a. Any amount representing outstanding checks issued on and after
34 July first, nineteen hundred seventy-four in payment for goods or for
35 services, and owing in this state, or held by any corporation (other
36 than a public corporation), joint stock company, individual, association
37 of two or more individuals, committee or business trust in this state,
38 and which has remained unclaimed by the owner of such amount for three
39 years, shall be deemed abandoned property.
40 § 5. This act shall take effect April 1, 2006, and shall apply to
41 every amount held or owing for payment of a travelers check or money
42 order by any organization, other than a banking organization, on or
43 after such date regardless of whether such amount was held or owing
44 prior to such effective date.
45 PART II
46 Section 1. Subdivisions 1, 2, 3 and 5 of section 284-e of the tax law,
47 as added by section 4 of part K of chapter 61 of the laws of 2005, are
48 amended to read as follows:
49 1. General. (a) Notwithstanding any other provision of this article to
50 the contrary qualified Indians may purchase motor fuel or Diesel motor
51 fuel for such qualified Indians' own use or consumption exempt from the
52 motor fuel tax or Diesel motor fuel tax on [their nations' or tribes'] a
53 qualified [reservations] reservation . However, such qualified Indians
54 purchasing motor fuel or Diesel motor fuel off [their reservations or on
S. 6460 96 A. 9560
1 another nation's or tribe's] a qualified reservation, and non-Indians
2 making motor fuel or Diesel motor fuel purchases on an Indian reserva-
3 tion shall not be exempt from paying the motor fuel tax or Diesel motor
4 fuel tax when purchasing motor fuel or Diesel motor fuel within this
5 state. Accordingly, all motor fuel and Diesel motor fuel sold on an
6 Indian reservation to [non-members of the nation or tribe] a person
7 other than a qualified Indian or to non-Indians shall be taxed.
8 (b) In order to ensure an adequate quantity of motor fuel and Diesel
9 motor fuel on Indian reservations which may be purchased by qualified
10 Indians exempt from the motor fuel tax and Diesel motor fuel tax, the
11 department shall provide Indian nations and tribes within this state
12 with Indian tax exemption coupons as set forth in this section. A reser-
13 vation motor fuel seller shall be able to present such Indian tax
14 exemption coupons to a distributor licensed pursuant to this article in
15 order to purchase motor fuel or Diesel motor fuel exempt from the impo-
16 sition of the motor fuel tax or Diesel motor fuel tax. Qualified Indians
17 may purchase motor fuel or Diesel motor fuel from a reservation motor
18 fuel seller exempt from the motor fuel tax or Diesel motor fuel tax even
19 though the motor fuel tax or Diesel motor fuel tax on such motor fuel or
20 Diesel motor fuel will have been previously paid or assumed by, or
21 passed through to such distributor.
22 2. Indian tax exemption coupons. (a) Indian tax exemption coupons
23 shall be provided to the recognized governing body of each Indian nation
24 or tribe to ensure that each Indian nation or tribe can obtain motor
25 fuel and Diesel motor fuel upon which the tax shall not be collected
26 that is for the use or consumption by the nation or tribe or by [the
27 members of such nation or tribe] qualified Indians . The Indian tax
28 exemption coupons shall be provided to the Indian nations or tribes on a
29 quarterly basis for each of the four quarters beginning with the first
30 day of December, March, June, and September. It is intended that the
31 Indian nations or tribes will retain the amount of Indian tax exemption
32 coupons they will need each quarter to purchase motor fuel and Diesel
33 motor fuel for official nation or tribal use, and will distribute the
34 remaining Indian tax exemption coupons to reservation motor fuel sellers
35 [on such nations' or tribes' qualified reservations]. Only Indian
36 nations or tribes or reservation motor fuel sellers on [their] qualified
37 reservations may redeem such Indian tax exemption coupons pursuant to
38 this section.
39 (b) The amount of Indian tax exemption coupons to be given to the
40 recognized governing body of each Indian nation or tribe shall be based
41 upon the probable demand of the qualified Indians [on] of such [nation's
42 or tribe's qualified reservation] nation or tribe plus the amount needed
43 for official nation or tribal use.
44 (i) Probable demand shall be determined by reference to, among other
45 data, the United States average motor fuel and Diesel motor fuel
46 consumption per capita, as compiled for the most recently completed
47 calendar or fiscal year, multiplied by the number of qualified Indians
48 for each such affected Indian nation or tribe.
49 (ii) In making a determination of probable demand, the department
50 shall take into consideration any evidence submitted by such recognized
51 governing body relating to such probable demand (e.g., a verified record
52 of previous sales to qualified Indians or other statistical evidence)
53 and/or relating to the amount needed for such nation's or tribe's offi-
54 cial use.
55 (c) Each Indian tax exemption coupon shall consist of a retention
56 portion for a distributor's recordkeeping purposes and a redemption
S. 6460 97 A. 9560
1 portion for a distributor's submission to the department when claiming a
2 refund as set forth in paragraph (a) of subdivision four of this
3 section, and shall contain the following information:
4 (i) the identity of the Indian nation or tribe to which it is issued;
5 (ii) the identity and the quantity of the product for which it is
6 issued;
7 (iii) the date of issuance and the date of expiration; and
8 (iv) any other information as the commissioner may deem appropriate.
9 3. Tax exempt purchases. (a) An Indian nation or tribe may purchase
10 motor fuel and Diesel motor fuel for its own official use or consumption
11 from a distributor registered pursuant to this article without payment
12 of the motor fuel tax or Diesel motor fuel tax to the extent that the
13 Indian nation or tribe provides such distributor with Indian tax
14 exemption coupons entitling the Indian nation or tribe to purchase such
15 quantities of motor fuel and Diesel motor fuel as allowed for on each
16 Indian tax exemption coupon without paying the motor fuel tax or Diesel
17 motor fuel tax.
18 (b) A qualified Indian may purchase motor fuel and Diesel motor fuel
19 for his or her own use or consumption without payment of the motor fuel
20 tax or Diesel motor fuel tax, provided that the qualified Indian makes
21 such purchase [at] on a qualified reservation.
22 (c) A reservation motor fuel seller may purchase motor fuel and Diesel
23 motor fuel for resale without payment of the motor fuel tax or Diesel
24 motor fuel tax from a distributor registered pursuant to this article:
25 (i) provided that such reservation motor fuel seller brings such motor
26 fuel or Diesel motor fuel or causes it to be delivered onto a qualified
27 reservation for resale on such reservation; and
28 (ii) to the extent that such reservation motor fuel seller provides
29 such distributor with Indian tax exemption coupons entitling the reser-
30 vation motor fuel seller to purchase such quantities of motor fuel and
31 Diesel motor fuel as allowed for on each Indian tax exemption coupon
32 without paying the motor fuel tax or Diesel motor fuel tax.
33 (d) A distributor shall not collect or pass through, as the case may
34 be, the motor fuel tax or Diesel motor fuel tax from any purchaser to
35 the extent the purchaser gives such distributor Indian tax exemption
36 coupons entitling the purchaser to purchase such quantities of motor
37 fuel or Diesel motor fuel as allowed for on each such Indian tax
38 exemption coupon without paying the motor fuel tax or Diesel motor fuel
39 tax.
40 5. Tax agreements with Indian nations or tribes. If an Indian nation
41 or tribe enters into an agreement with the state [and the legislature
42 approves such agreement] regarding the sale and distribution of motor
43 fuel or Diesel motor fuel on the nation's or tribe's qualified reserva-
44 tion, the terms of such agreement shall take precedence over the
45 provisions of this article and exempt such nation from such taxes to the
46 extent that such taxes are specifically referred to in the agreement,
47 and the sale or distribution, including transportation, of any motor
48 fuel or Diesel motor fuel to the nation's or tribe's qualified reserva-
49 tion shall be in accordance with the provisions of such agreement.
50 § 1-a. Subdivision 19 of section 282 of the tax law, as added by
51 section 3 of part K of chapter 61 of the laws of 2005, is amended to
52 read as follows:
53 19. "Qualified Indian" means a person duly enrolled on the tribal
54 rolls of one of the Indian nations or tribes. [In the case of the Cayuga
55 Indian Nation of New York, such term shall include enrolled members of
S. 6460 98 A. 9560
1 such nation when such enrolled members purchase motor fuel on any Seneca
2 reservation.]
3 § 2. Subdivisions 11 and 13 of section 470 of the tax law, subdivision
4 11 as amended by chapter 61 of the laws of 1989 and subdivision 13 as
5 added by chapter 629 of the laws of 1996, are amended and a new subdivi-
6 sion 18 is added to read as follows:
7 11. "Agent." Any person licensed by the commissioner [of taxation and
8 finance] to purchase and affix adhesive or meter stamps and to obtain
9 and affix Indian export decals on packages of cigarettes under this
10 article.
11 13. "Unstamped or unlawfully stamped packages of cigarettes." A pack-
12 age of cigarettes which bears no tax stamp, or which bears an Indian
13 export decal , or which bears a tax stamp of another state or taxing
14 jurisdiction is considered to be an unstamped package of cigarettes. A
15 package of cigarettes bearing a counterfeit New York state or a counter-
16 feit joint state and New York city tax stamp is an unlawfully stamped
17 package of cigarettes.
18 18. Indian export decal. Any adhesive decal, metered decal, heat
19 transfer decal or other form of evidence that the cigarettes upon which
20 such decal has been affixed are to be exported out of this state by a
21 reservation cigarette seller. Such Indian export decal shall not be
22 considered to be a stamp for purposes of this article and shall not be
23 deemed evidence of the payment of the tax imposed under this article.
24 § 2-a. Subdivision 15 of section 470 of the tax law, as added by
25 section 1 of part K of chapter 61 of the laws of 2005, is amended to
26 read as follows:
27 15. "Qualified Indian." A person duly enrolled on the tribal rolls of
28 one of the Indian nations or tribes. [In the case of the Cayuga Indian
29 Nation of New York, such term shall include enrolled members of such
30 nation when such enrolled members purchase cigarettes on any Seneca
31 reservation.]
32 § 3. Subdivision 1 of section 471 of the tax law, as amended by
33 section 30 of part A of chapter 1 of the laws of 2002, is amended to
34 read as follows:
35 1. There is hereby imposed and shall be paid a tax on all cigarettes
36 possessed in the state by any person for sale and to which an agent is
37 required to affix stamps under this article , except that no tax shall be
38 imposed on cigarettes sold under such circumstances that this state is
39 without power to impose such tax or sold to the United States or sold to
40 or by a voluntary unincorporated organization of the armed forces of the
41 United States operating a place for the sale of goods pursuant to regu-
42 lations promulgated by the appropriate executive agency of the United
43 States, to the extent provided in such regulations and policy statements
44 of such an agency applicable to such sales. Such tax on cigarettes shall
45 be at the rate of seventy-five cents for each ten cigarettes or fraction
46 thereof, provided, however, that if a package of cigarettes contains
47 more than twenty cigarettes, the rate of tax on the cigarettes in such
48 package in excess of twenty shall be thirty-seven and one-half cents for
49 each five cigarettes or fraction thereof. Such tax is intended to be
50 imposed upon only one sale of the same package of cigarettes. It shall
51 be presumed that all cigarettes within the state are subject to tax
52 until the contrary is established, and the burden of proof that any
53 cigarettes are not taxable hereunder shall be upon the person in
54 possession thereof.
S. 6460 99 A. 9560
1 § 4. Subdivisions 1, 2 and 5 of section 471-e of the tax law, as added
2 by section 2 of part K of chapter 61 of the laws of 2005, are amended to
3 read as follows:
4 1. General. (a) Notwithstanding any provision of this article to the
5 contrary qualified Indians may purchase cigarettes for such qualified
6 Indians' own use or consumption exempt from cigarette tax on [their
7 nations' or tribes'] a qualified [reservations] reservation . However,
8 such qualified Indians purchasing cigarettes off [their reservations or
9 on another nation's or tribe's] a qualified reservation, and non-Indians
10 making cigarette purchases on an Indian reservation shall not be exempt
11 from paying the cigarette tax when purchasing cigarettes within this
12 state. Accordingly, all cigarettes sold on an Indian reservation to
13 [non-members of the nation or tribe] a person other than a qualified
14 Indian or to non-Indians shall be taxed, and evidence of such tax will
15 be by means of an affixed cigarette tax stamp.
16 (b) In order to ensure an adequate quantity of cigarettes on Indian
17 reservations which may be purchased by qualified Indians exempt from the
18 cigarette tax, the department shall provide Indian nations and tribes
19 within this state with Indian tax exemption coupons as set forth in this
20 section. A reservation cigarette seller shall be able to present such
21 Indian tax exemption coupons to a wholesale dealer licensed pursuant to
22 this article in order to purchase stamped cigarettes exempt from the
23 imposition of the cigarette tax. Qualified Indians may purchase ciga-
24 rettes from a reservation cigarette seller exempt from the cigarette tax
25 even though such cigarettes will have an affixed cigarette tax stamp.
26 2. Indian tax exemption coupons. (a) Indian tax exemption coupons
27 shall be provided to the recognized governing body of each Indian nation
28 or tribe to ensure that each Indian nation or tribe can obtain ciga-
29 rettes upon which the tax will not be collected that are for the use or
30 consumption by the nation or tribe or by [the members of such nation or
31 tribe] qualified Indians . The Indian tax exemption coupons shall be
32 provided to the Indian nations or tribes on a quarterly basis for each
33 of the four quarters beginning with the first day of December, March,
34 June, and September. It is intended that the Indian nations or tribes
35 will retain the amount of Indian tax exemption coupons they will need
36 each quarter to purchase cigarettes for official nation or tribal use,
37 and will distribute the remaining Indian tax exemption coupons to reser-
38 vation cigarette sellers [on such nations' or tribes' qualified reserva-
39 tions]. Only Indian nations or tribes or reservation cigarette sellers
40 on [their] qualified reservations may redeem such Indian tax exemption
41 coupons pursuant to this section.
42 (b) The amount of Indian tax exemption coupons to be given to the
43 recognized governing body of each Indian nation or tribe shall be based
44 upon the probable demand of the qualified Indians [on] of such [nation's
45 or tribe's qualified reservation] nation or tribe plus the amount needed
46 for official nation or tribal use.
47 (i) Probable demand shall be determined by reference to, among other
48 data, the United States average cigarette consumption per capita, as
49 compiled for the most recently completed calendar or fiscal year, multi-
50 plied by the number of qualified Indians for each such affected Indian
51 nation or tribe.
52 (ii) In making a determination of probable demand, the department
53 shall take into consideration any evidence submitted by such recognized
54 governing body relating to such probable demand (e.g., a verifiable
55 record of previous sales to qualified Indians or other statistical
S. 6460 100 A. 9560
1 evidence) and/or relating to the amount needed for such nation's or
2 tribe's official use.
3 (c) Each Indian tax exemption coupon shall consist of a retention
4 portion for a wholesale dealer's recordkeeping purposes and a redemption
5 portion for a wholesale dealer's submission to the department when
6 claiming a refund as set forth in subdivision four of this section, and
7 shall contain the following information:
8 (i) the identity of the Indian nation or tribe to which it is issued;
9 (ii) the identity and the quantity of the product for which it is
10 issued;
11 (iii) the date of issuance and the date of expiration; and
12 (iv) any other information as the commissioner may deem appropriate.
13 5. Tax agreements with Indian nations or tribes. If an Indian nation
14 or tribe enters into an agreement with the state [and the legislature
15 approves such agreement] regarding the sale and distribution of ciga-
16 rettes on the nation's or tribe's qualified reservation, the terms of
17 such agreement shall take precedence over the provisions of this article
18 and exempt such nation from such taxes to the extent that such taxes are
19 specifically referred to in the agreement, and the sale or distribution,
20 including transportation, of any cigarettes to the nation's or tribe's
21 qualified reservation shall be in accordance with the provisions of such
22 agreement.
23 § 5. The tax law is amended by adding a new section 471-f to read as
24 follows:
25 § 471-f. Indian exports. 1. Indian export coupons. (a) Indian export
26 coupons shall be provided to the recognized governing body of each Indi-
27 an nation or tribe within this state to ensure that each Indian nation
28 or tribe can obtain cigarettes for export out of this state upon which
29 the tax under this article will not be imposed. The Indian export
30 coupons shall be provided to the Indian nations or tribes on a quarterly
31 basis for each of the four quarters beginning with the first day of
32 December, March, June, and September, in anticipation of the Indian
33 nations or tribes distributing these Indian export coupons to reserva-
34 tion cigarette sellers on qualified reservations for their sales of
35 cigarettes exported outside this state. Only reservation cigarette sell-
36 ers on qualified reservations may redeem such Indian export coupons
37 pursuant to this section.
38 (b) The amount of Indian export coupons to be given to the recognized
39 governing body of each Indian nation or tribe shall be based upon the
40 probable demand of reservation cigarette sellers for their sales of
41 cigarettes exported outside this state.
42 (i) Probable demand shall be determined by taking into consideration
43 any evidence submitted by such recognized governing body relating to
44 such probable demand (e.g., copies of reports filed under Chapter 10A of
45 Title 15 of the United States Code (Jenkins Act) or other verifiable
46 records of previous export sales by reservation cigarette sellers).
47 Except as provided in subparagraph (ii) of this paragraph, in order to
48 ensure timely consideration such evidence shall be submitted to the
49 commissioner by the recognized governing body of the affected Indian
50 nation or tribe at least two months prior to the start of the applicable
51 quarter. For any applicable quarter, such evidence shall be based upon
52 export sales made in the quarter that is two quarters immediately
53 preceding such quarter.
54 (ii) (A) The commissioner shall provide the recognized governing
55 bodies of each Indian nation or tribe with a quantity of Indian export
56 coupons to cover the first forty-five days of the first quarter to which
S. 6460 101 A. 9560
1 this section is applicable. The amount of such Indian export coupons
2 shall be equal to fifty percent of the amount of total cigarette sales
3 reported by agents as made on each qualified reservation, on such
4 agents' returns filed with the commissioner for each of the fourth,
5 fifth, and sixth months preceding such quarter.
6 (B) To obtain Indian export coupons for the remainder of such quarter,
7 the evidence required by subparagraph (i) of this paragraph shall be
8 submitted by the fifteenth day of such quarter to the commissioner by
9 such recognized governing body.
10 (iii) In the event that the quantities of Indian export coupons
11 provided to the recognized governing bodies pursuant to subparagraph (i)
12 or (ii) of this paragraph are insufficient to meet the export demands of
13 an Indian nation or tribe, the commissioner may provide additional Indi-
14 an export coupons to such governing bodies in amounts which are neces-
15 sary to meet the additional export demands of such nation or tribe upon
16 its submission of evidence of such additional demand.
17 (c) Each Indian export coupon shall consist of a retention portion for
18 an agent's recordkeeping purposes and a redemption portion for an
19 agent's submission to the commissioner as set forth in paragraph (c) of
20 subdivision three of this section, and shall contain the following
21 information:
22 (i) the identity of the Indian nation or tribe to which it is issued;
23 (ii) the identity and the quantity of the product for which it is
24 issued;
25 (iii) the date issued and the date of expiration; and
26 (iv) any other information as the commissioner may deem appropriate.
27 (d) The commissioner may, in his or her discretion, reduce any Indian
28 nation's or tribe's quantity of Indian export coupons where packages of
29 cigarettes affixed with Indian export decals that were obtained by the
30 submission of such nation's or tribe's Indian export coupons were not
31 exported out of this state.
32 2. Indian export purchases. (a) A reservation cigarette seller may
33 purchase cigarettes from a wholesale dealer licensed under this article
34 who is also an agent licensed under this article for resale without
35 payment of the tax under this article,
36 (i) provided that such reservation cigarette seller brings such ciga-
37 rettes or causes them to be delivered onto a qualified reservation sole-
38 ly for the purpose of subsequent export outside of the state;
39 (ii) to the extent that such reservation cigarette seller provides
40 such wholesale dealer with Indian export coupons entitling the reserva-
41 tion cigarette seller to purchase such quantities of cigarettes as
42 allowed on each Indian export coupon; and
43 (iii) provided that packages of such cigarettes are affixed with an
44 Indian export decal.
45 (b) A wholesale dealer who is also an agent shall not collect the tax
46 under this article from any reservation cigarette seller to the extent
47 that such reservation cigarette seller gives such wholesale dealer Indi-
48 an export coupons entitling the reservation cigarette seller to purchase
49 such quantities of cigarettes without paying the tax under this article.
50 Such wholesale dealer who is also an agent must affix an Indian export
51 decal to any packages of such cigarettes for which it receives an Indian
52 export coupon.
53 3. Indian export decals. (a) Except as provided in this section,
54 Indian export decals shall be prescribed, manufactured, delivered and
55 affixed in the same manner as stamps as set forth in this article. No
56 commissions shall be payable to an agent for the affixing of Indian
S. 6460 102 A. 9560
1 export decals. The commissioner shall provide for such agents to obtain
2 Indian export decals at such places and at such times as the commission-
3 er may deem necessary.
4 (b) In order to provide a start-up quantity of Indian export decals to
5 agents, the commissioner shall provide agents with quantities of Indian
6 export decals that are sufficient to cover the agents' total cigarette
7 sales made on qualified reservations as reported on the applicable
8 agent's returns filed with the commissioner for each of the fourth,
9 fifth, sixth and seventh months prior to the first quarter to which this
10 section applies. Also, upon request, a start-up quantity of Indian
11 export decals shall be provided to agents who intend to make cigarette
12 sales to reservation cigarette sellers but have not previously reported
13 such cigarette sales delivered on qualified reservations on their appli-
14 cable returns.
15 (c) In order to provide additional Indian export decals to agents, the
16 commissioner shall provide agents who attach to their monthly returns
17 the redemption portions of Indian export coupons (described in subdivi-
18 sion one of this section) to be provided with an amount of Indian export
19 decals equal to the amount of such Indian export coupons attached to
20 such agents' returns.
21 (d) In the event that the quantities of Indian export decals provided
22 to agents pursuant to paragraph (b) or (c) of this subdivision are
23 insufficient to meet such agents' demands for Indian export purchases,
24 the commissioner may provide additional Indian export decals to such
25 agents in amounts which are necessary to meet such additional demands.
26 4. Tax agreements with Indian nations or tribes. If an Indian nation
27 or tribe enters into an agreement with the state regarding the sale and
28 distribution of cigarettes on the Indian nation's or tribe's qualified
29 reservation, the terms of such agreement take precedence over the
30 provisions of this section, and the sale or distribution, including
31 transportation, of any cigarettes to the Indian nation's or tribe's
32 qualified reservation shall be in accordance with the provisions of such
33 agreement.
34 § 6. Subdivision (d) of section 1112 of the tax law, as added by
35 section 6 of part K of chapter 61 of the laws of 2005, is amended to
36 read as follows:
37 (d) The provisions of section four hundred seventy-one-e of this chap-
38 ter concerning sales of cigarettes on qualified Indian reservations and
39 section four hundred seventy-one-f of this chapter concerning sales of
40 cigarettes to qualified Indian reservations for export out of this state
41 shall apply to the prepayment of sales tax imposed on cigarettes pursu-
42 ant to section eleven hundred three of this article in the same manner
43 and with the same force and effect as if the provisions of such
44 [section] sections four hundred seventy-one-e and four hundred seventy-
45 one-f had been incorporated in full into this article, except to the
46 extent that any such provision is either inconsistent with a provision
47 of such section eleven hundred three or is not relevant thereto.
48 § 7. Section 1814 of the tax law is amended by adding a new subdivi-
49 sion (l) to read as follows:
50 (l) Any person who falsely or fraudulently makes, alters or counter-
51 feits any Indian export decal provided for under the provisions of
52 section four hundred seventy-one-f of this chapter, or causes or
53 procures to be falsely or fraudulently made, altered or counterfeited
54 any such decal, or knowingly and willfully utters, purchases, passes or
55 tenders as true any such false, altered or counterfeited decal, or know-
56 ingly and willfully possesses any cigarettes in packages bearing any
S. 6460 103 A. 9560
1 such false, altered or counterfeited decal, and any person who knowingly
2 and willfully makes, causes to be made, purchases or receives any device
3 for forging or counterfeiting any such decal, or who knowingly and will-
4 fully possesses any such device, shall be guilty of a class E felony.
5 § 8. Section 7 of part K of chapter 61 of the laws of 2005 amending
6 the tax law and other laws relating to implementing the state fiscal
7 plan for the 2005-2006 state fiscal year, as amended by section 4 of
8 part A of chapter 63 of the laws of 2005, is amended to read as follows:
9 § 7. This act shall take effect March 1, [2006] 2007 , provided that
10 any actions, rules and regulations necessary to implement the provisions
11 of this act on its effective date are authorized and directed to be
12 completed on or before such date, provided however, that section 284-e,
13 section 471-e, subdivision (1) of section 301-a, and section 1112 of the
14 tax law, as well as sections 282 and 470 of the tax law, as amended by
15 section 4 of part A of chapter 63 of the laws of 2005, shall not be
16 enforced on a qualified reservation of a federally recognized Indian
17 nation or tribe pending adjudication of an action filed by such nation
18 or tribe to challenge the provisions of this act based upon an alleged
19 federal constitutional or treaty right if such action is commenced in
20 federal district court on or before December 1, 2006. In the event any
21 suspension takes effect and the provisions of this act are sustained,
22 the effective date of these provisions shall commence the first day of a
23 sales tax quarter, at least 90 days after the final resolution of such
24 adjudication .
25 § 9. This act shall take effect immediately, provided however,
26 sections two, three, five and seven of this act shall take effect on
27 March 1, 2007, provided however, that sections one, one-a, two-a, four
28 and six of this act shall take effect on the same date and in the same
29 manner as part K of chapter 61 of the laws of 2005, as amended, takes
30 effect, provided however, that sections one through seven of this act
31 shall not be enforced on such effective date on a qualified reservation
32 of a federally recognized Indian nation or tribe pending adjudication of
33 an action filed by such nation or tribe to challenge such provisions of
34 this act based upon an alleged federal constitutional or treaty right if
35 such action is commenced in federal district court on or before December
36 1, 2006. In the event any suspension takes effect and such provisions of
37 this act are sustained, the effective date of sections one through seven
38 of this act shall be the first day of a sales tax quarter, at least 90
39 days after the final resolution of such adjudication; and the commis-
40 sioner of taxation and finance shall be authorized on and after this act
41 shall have become a law to take steps necessary to implement the
42 provisions of this act on its effective date. The commissioner of taxa-
43 tion and finance shall notify the legislative bill drafting commission
44 upon the suspension of the effective date of the provisions of sections
45 one through seven of this act and upon the sustaining of such provisions
46 by the federal judiciary provided for in this section in order that the
47 commission may maintain an accurate and timely effective data base of
48 the official text of the laws of the state of New York in furtherance of
49 effecting the provisions of section 44 of the legislative law and
50 section 70-b of the public officers law.
51 PART JJ
52 Section 1. Subdivision (a) of section 1 of part Z of chapter 61 of the
53 laws of 2005, authorizing compensation to the state for any reimburse-
S. 6460 104 A. 9560
1 ments, overpayments, adjustments or other modifications made to a county
2 or the city of New York, is amended to read as follows:
3 (a) Notwithstanding any other law to the contrary, the comptroller of
4 the state of New York or the chairman of Nassau county interim finance
5 authority, as the case may be, shall, upon a certificate of the director
6 of the division of the budget and with the written consent of the mayor
7 of the city of New York, or the chief elected officer of a county of the
8 state of New York, as the case may be, pay to the general fund of the
9 state of New York the amounts specified in such certificate from any
10 sales and use tax revenue, or other payment from a state appropriation,
11 payable and available for payment at such time to such city or county;
12 provided that such sales and use tax revenue or appropriation payment is
13 not subject to any lien, pledge, claim or intercept for the benefit of a
14 bond or note holder. The director of the division of the budget shall
15 limit the amounts subject to deposit in the general fund of the state of
16 New York under this act to the amounts necessary to compensate the state
17 for any overpayments or other specific monetary liabilities owed to the
18 state or to save harmless the city of New York for any changes in the
19 state and city cigarette tax rates as such mayor or chief elected offi-
20 cial may agree.
21 § 2. This act shall take effect immediately and shall be deemed to
22 have been in full force and effect on and after April 1, 2006.
23 PART KK
24 Section 1. Section 1 of part J of chapter 405 of the laws of 1999,
25 amending the real property tax law relating to improving the adminis-
26 tration of the school tax relief (STAR) program, as amended by section 1
27 of part S of chapter 61 of the laws of 2005, is amended to read as
28 follows:
29 Section 1. Notwithstanding the provisions of article 5 of the general
30 construction law, the provisions of the tax law amended by sections
31 94-a, 94-d and 94-g of chapter 2 of the laws of 1995 are hereby revived
32 and shall continue in full force and effect as they existed on March 31,
33 1999 [through May 31, 2006, when upon such date they shall expire and be
34 repealed]. Sections 1, 2, 3, 4, and 5, and such part of section 10 of
35 chapter 336 of the laws of 1999 as relates to providing for the effec-
36 tiveness of such sections 1, 2, 3, 4 and 5 shall be nullified in effect
37 on the effective date of this section, except that the amendments made
38 to: paragraph (2) of subdivision a of section 1612 of the tax law by
39 such section 1; and subdivision b of section 1612 of the tax law by such
40 section 2; and the repeal of section 152 of chapter 166 of the laws of
41 1991 made by such section 5 shall continue to remain in effect.
42 § 2. Paragraph 1 of subdivision a of section 1612 of the tax law, as
43 amended by chapter 336 of the laws of 1999, is amended to read as
44 follows:
45 (1) sixty percent of the total amount for which tickets have been sold
46 for a lawful lottery game introduced on or after the effective date of
47 this paragraph, subject to the following provisions:
48 (A) [drawings in such game shall be held during no more than thirteen
49 hours each day, no more than eight hours of which shall be consecutive;
50 (B) such game shall be available only on premises occupied by licensed
51 lottery sales agents, subject to the following provisions:
52 (i) if the licensee holds a license issued pursuant to the alcoholic
53 beverage control law to sell alcoholic beverages for consumption on the
S. 6460 105 A. 9560
1 premises, then not less than twenty-five percent of the gross sales must
2 result from sales of food;
3 (ii)] if the licensee does not hold a license issued pursuant to the
4 alcoholic beverage control law to sell alcoholic beverages for consump-
5 tion on the premises, then the premises must have a minimum square
6 footage greater than [two thousand five] one thousand two hundred square
7 feet;
8 [(iii) notwithstanding the foregoing provisions, television equipment
9 that automatically displays the results of such drawings may be
10 installed and used without regard to the percentage of food sales or the
11 square footage if such premises are used as:
12 (I) a commercial bowling establishment, or
13 (II) a facility authorized under the racing, pari-mutuel wagering and
14 breeding law to accept pari-mutuel wagers;
15 (C)] (B) the rules for the operation of such game shall be as
16 prescribed by regulations promulgated and adopted by the division,
17 provided however, that such rules shall provide that no person under the
18 age of twenty-one may participate in such games on the premises of a
19 licensee who holds a license issued pursuant to the alcoholic beverage
20 control law to sell alcoholic beverages for consumption on the prem-
21 ises[; and, provided, further, that such regulations may be revised on
22 an emergency basis not later than ninety days after the enactment of
23 this paragraph in order to conform such regulations to the requirements
24 of this paragraph]; or
25 § 3. This act shall take effect immediately.
26 PART LL
27 Section 1. Subdivision (a) of section 7 of part P of chapter 60 of the
28 laws of 2004, amending the tax law relating to the empire state film
29 production credit, is amended to read as follows:
30 (a) The aggregate amount of tax credits allowed under section 24,
31 subdivision 36 of section 210 and subsection (gg) of section 606 of the
32 tax law in any calendar year shall be $25 million in 2004 through 2008
33 and $30 million in 2009 and thereafter . Such aggregate amount of cred-
34 its shall be allocated by the governor's office for motion picture and
35 television development among taxpayers in order of priority based upon
36 the date of filing an application for allocation of film production
37 credit with such office. If the total amount of allocated credits
38 applied for in any particular year exceeds the aggregate amount of tax
39 credits allowed for such year under this section, such excess shall be
40 treated as having been applied for on the first day of the subsequent
41 year.
42 § 2. Subdivision (b) of section 7 of part P of chapter 60 of the laws
43 of 2004, amending the tax law relating to the empire state film
44 production credit, as amended by chapter 745 of the laws of 2004, is
45 amended to read as follows:
46 (b) The aggregate amount of tax credits allowed pursuant to the
47 authority of subdivision (b) of section 1201-a in any calendar year
48 shall be $12.5 million in 2004 through 2008 and not in excess of $30
49 million in 2009 and thereafter . Such aggregate amount of credits shall
50 be allocated by the mayor's office of film, theater and broadcasting
51 among taxpayers in order of priority based upon the date of filing an
52 application for allocation of film production credit with such office.
53 If the total amount of allocated credits applied for in any particular
54 year exceeds the aggregate amount of tax credits allowed for such year
S. 6460 106 A. 9560
1 under this section, such excess shall be treated as having been applied
2 for on the first day of the subsequent year.
3 § 3. Section 9 of part P of chapter 60 of the laws of 2004, amending
4 the tax law relating to the empire state film production credit, is
5 amended to read as follows:
6 § 9. This act shall take effect immediately and shall apply to taxable
7 years beginning on or after January 1, 2004, with respect to "qualified
8 production costs" paid or incurred on or after such effective date,
9 regardless of whether the production of the qualified film commenced
10 before such date[, provided further that this act shall expire and be
11 deemed repealed 4 years after such date, provided further that the expi-
12 ration and repeal of this act shall not affect the carry over of any
13 credit allowed pursuant to this act and, subsequent to the expiration
14 and repeal of this act, such carry over credits shall be allowed as
15 provided by and pursuant to the provisions of this act, and provided
16 further that the IMB credit for energy taxes under subsection (t-l) of
17 section 606 of the tax law contained in section three of this act shall
18 expire on the same date as provided in subdivision (a) of section 49 of
19 part Y of chapter 63 of the laws of 2000].
20 § 4. This act shall take effect immediately.
21 PART MM
22 Section 1. The civil practice law and rules is amended by adding a new
23 section 5519-a to read as follows:
24 § 5519-a. Stay of enforcement for tobacco product master settlement
25 agreement participating manufacturers, non-participating manufacturers,
26 and affiliates. (a) In civil litigation under any legal theory involv-
27 ing a participating manufacturer or a non-participating manufacturer, as
28 those terms are defined in the master settlement agreement, or any of
29 their successors or affiliates, the undertaking required during the
30 pendency of all appeals or discretionary reviews by any appellate courts
31 in order to stay the execution of any judgment or order granting legal,
32 equitable or other relief during the entire course of appellate review
33 shall be set pursuant to the applicable provisions of law or court
34 rules; provided, however that the total undertaking required of all
35 appellants collectively shall not exceed one hundred million dollars,
36 regardless of the value of the judgment appealed.
37 (b) Notwithstanding the provisions of subdivision (a) of this section,
38 upon proof by a preponderance of the evidence, by an appellee, that an
39 appellant is dissipating assets outside the course of ordinary business
40 to avoid payment of a judgment, a court may require the appellant to
41 post a bond in an amount up to the total amount of the judgment.
42 § 2. This act shall take effect on the thirtieth day after it shall
43 have become a law, and shall apply to any cause of action pending on or
44 filed on or after such effective date.
45 PART NN
46 Section 1. Subparagraphs 1 and 2 of paragraph (a) of subdivision 9 of
47 section 208 of the tax law, subparagraph 1 as amended by chapter 778 of
48 the laws of 1972 and subparagraph 2 as amended by section 7 of part M of
49 chapter 407 of the laws of 1999, are amended to read as follows:
50 (1) income, gains and losses from subsidiary capital which do not
51 include the amount of a recovery in respect of any war loss, except for
52 (A) such amounts from a former DISC which are treated as business income
S. 6460 107 A. 9560
1 under subdivision eight-A of this section, (B) a distribution (including
2 any amount designated as a capital gain dividend) from, or gain or loss
3 from the disposition of an ownership interest in, a real estate invest-
4 ment trust, as defined in section eight hundred fifty-six of the inter-
5 nal revenue code, (C) a distribution (including any amount designated as
6 a capital gain dividend) from, or gain or loss from the disposition of
7 an ownership interest in, a regulated investment company, as defined in
8 section eight hundred fifty-one of the internal revenue code, or (D) a
9 distribution from, or gain or loss from the disposition of an ownership
10 interest in, a corporation that (i) owns, directly or indirectly, over
11 fifty percent of the capital stock of a real estate investment trust or
12 a regulated investment company, or (ii) in connection with one or more
13 other corporations in its affiliated group (as such term is defined in
14 section fifteen hundred four of the internal revenue code), owns over
15 fifty percent of the capital stock of a real estate investment trust or
16 a regulated investment company, to the extent the distribution, gain or
17 loss is attributable to such corporation's ownership interest in such a
18 real estate investment trust or regulated investment company.
19 (2) fifty percent of dividends (A) other than from subsidiaries,
20 except as otherwise provided in clause (E) of this subparagraph , [and]
21 (B) other than amounts treated as business income under subdivision
22 eight-A of this section, on shares of stock which conform to the
23 requirements of subsection (c) of section two hundred forty-six of the
24 internal revenue code, (C) other than dividends (including any amount
25 designated as a capital gain dividend) from a real estate investment
26 trust as defined in section eight hundred fifty-six of the internal
27 revenue code, (D) other than dividends from a corporation that is a
28 member of an affiliated group (as such term is defined in section
29 fifteen hundred four of the internal revenue code) that includes the
30 taxpayer, and that, alone or in connection with one or more other corpo-
31 rations in such affiliated group, owns over fifty percent of the capital
32 stock of a real estate investment trust, to the extent the dividends are
33 attributable to such corporation's ownership interest in such a real
34 estate investment trust, and (E) in the case of (i) a regulated invest-
35 ment company, as defined in section eight hundred fifty-one of the
36 internal revenue code, that is a subsidiary of the taxpayer, (ii) a
37 regulated investment company that is not a subsidiary of the taxpayer,
38 or (iii) a subsidiary of the taxpayer whose distributions are described
39 in clause (D) of subparagraph one of this paragraph and are attributable
40 to an ownership interest in a regulated investment company, the exclu-
41 sion under this subparagraph shall apply only with respect to a dividend
42 that is, or is attributable to a dividend that is, properly designated
43 under subparagraph (A) of paragraph (1) of subsection (b) of section
44 eight hundred fifty-four of the internal revenue code .
45 § 2. Subparagraphs 2 and 6 of paragraph (b) of subdivision 9 of
46 section 208 of the tax law, subparagraph 2 as amended by chapter 713 of
47 the laws of 1961, and subparagraph 6 as amended by chapter 817 of the
48 laws of 1987, are amended to read as follows:
49 (2) any part of any income from dividends or interest on any kind of
50 stock, securities or indebtedness, except as provided in [clauses (1)
51 and (2)] subparagraphs one and two of paragraph (a) [hereof] of this
52 subdivision ,
53 (6) in the discretion of the [tax commission] commissioner , any amount
54 of interest directly or indirectly and any other amount directly or
55 indirectly attributable as a carrying charge or otherwise to subsidiary
56 capital or to income, gains or losses from subsidiary capital[.], except
S. 6460 108 A. 9560
1 to the extent that such amounts are directly or indirectly attributable
2 to (i) subsidiary capital the income, gains or losses from which are not
3 excluded from entire net income pursuant to subparagraph one of para-
4 graph (a) of this subdivision, or (ii) income, gains or losses from
5 subsidiary capital that are not excluded from entire net income pursuant
6 to such subparagraph one;
7 § 3. Subparagraph (2) of paragraph (e) of subdivision one of section
8 210 of the tax law, as added by section 1 of part P of chapter 407 of
9 the laws of 1999, is amended to read as follows:
10 (2) For purposes of this paragraph, the amount of such subsidiary
11 capital, prior to allocation, shall be reduced by the applicable
12 percentage of the taxpayer's (i) investments in the stock of, and any
13 indebtedness from, subsidiaries subject to tax under section one hundred
14 eighty-six of this chapter (but only to the extent such indebtedness is
15 included in subsidiary capital), [and] (ii) investments in the stock of,
16 and any indebtedness from, subsidiaries subject to tax under article
17 thirty-two or thirty-three of this chapter (but only to the extent such
18 indebtedness is included in subsidiary capital), and (iii) investments
19 in the stock of, and any indebtedness from, subsidiaries the income,
20 gains or losses from which are not excluded from entire net income
21 pursuant to subparagraph one of paragraph (a) of subdivision nine of
22 section two hundred eight of this article, but only to the extent such
23 investments and indebtedness are directly or indirectly attributable to
24 income, gains or losses that are not so excluded . For purposes of
25 clause (i) of this subparagraph, the applicable percentage shall be
26 thirty percent for taxable years beginning in two thousand, and one
27 hundred percent for taxable years beginning after two thousand. For
28 purposes of clause (ii) of this subparagraph, the applicable percentage
29 shall be one hundred percent for taxable years beginning after nineteen
30 hundred ninety-nine. For purposes of clause (iii) of this subparagraph,
31 the applicable percentage shall be one hundred percent.
32 § 4. Paragraph 11 of subsection (e) of section 1453 of the tax law, as
33 added by chapter 298 of the laws of 1985, and subparagraph (ii) as
34 amended and subparagraph (iii) as added by chapter 170 of the laws of
35 1994, is amended to read as follows:
36 (11) (i) seventeen percent of interest income from subsidiary capital,
37 and
38 (ii) sixty percent of dividend income from subsidiary capital, which
39 does not include (I) dividends (including any amount designated as a
40 capital gain dividend) from a real estate investment trust as defined in
41 section eight hundred fifty-six of the internal revenue code, or a regu-
42 lated investment company as defined in section eight hundred fifty-one
43 of the internal revenue code, (II) dividends from a corporation that (A)
44 owns, directly or indirectly, over fifty percent of the capital stock of
45 a real estate investment trust or a regulated investment company, or (B)
46 in connection with one or more other corporations in its affiliated
47 group (as such term is defined in section fifteen hundred four of the
48 internal revenue code), owns over fifty percent of the capital stock of
49 a real estate investment trust or a regulated investment company, to the
50 extent the dividends are attributable to such corporation's ownership
51 interest in such a real estate investment trust or regulated investment
52 company , and
53 (iii) sixty percent of the amount by which gains from subsidiary capi-
54 tal exceed losses from subsidiary capital, to the extent such gains and
55 losses were taken into account in determining the entire taxable income
56 referred to in subsection (a) of this section, except that (I) gains or
S. 6460 109 A. 9560
1 losses from the disposition of an ownership interest in a corporation
2 the dividends from which are not eligible for the deduction allowed by
3 subparagraph (ii) of this paragraph pursuant to clause (I) of such
4 subparagraph shall not be considered in determining such amount, and
5 (II) gains or losses from the disposition of an ownership interest in a
6 corporation the dividends from which are not eligible for the deduction
7 allowed by subparagraph (ii) of this paragraph pursuant to clause (II)
8 of such subparagraph shall not be considered in determining such amount
9 to the extent the gains or losses are attributable to such corporation's
10 ownership interest in a real estate investment trust or regulated
11 investment company as defined in such subparagraph,
12 § 5. Subparagraphs (A) and (B) of paragraph 1 of subdivision (b) of
13 section 1503 of the tax law, subparagraph (A) as amended by chapter 55
14 of the laws of 1982, subparagraph (B) as amended by chapter 817 of the
15 laws of 1987, are amended to read as follows:
16 (A) income, gains and losses from subsidiary capital which do not
17 include (i) the amount of a recovery in respect of any war loss, (ii) a
18 distribution (including any amount designated as a capital gain divi-
19 dend) from, or gain or loss from the disposition of an ownership inter-
20 est in, a real estate investment trust as defined in section eight
21 hundred fifty-six of the internal revenue code, (iii) a distribution
22 (including any amount designated as a capital gain dividend) from, or
23 gain or loss from the disposition of an ownership interest in, a regu-
24 lated investment company as defined in section eight hundred fifty-one
25 of the internal revenue code, or (iv) a distribution from, or gain or
26 loss from the disposition of an ownership interest in, a corporation
27 that (I) owns, directly or indirectly, over fifty percent of the capital
28 stock of a real estate investment trust or a regulated investment compa-
29 ny, or (II) in connection with one or more other corporations in its
30 affiliated group (as such term is defined in section fifteen hundred
31 four of the internal revenue code), owns over fifty percent of the capi-
32 tal stock of a real estate investment trust or a regulated investment
33 company, to the extent the distribution or gain or loss is attributable
34 to such corporation's ownership interest in such a real estate invest-
35 ment trust or regulated investment company ;
36 (B) fifty percent of dividends other than from subsidiaries, except
37 [that] (i) in the case of a life insurance company, such modification
38 shall apply only with respect to the company's share of such dividends,
39 which share means the percentage determined under paragraph one of
40 subsection (a) of section eight hundred twelve of the internal revenue
41 code, (ii) dividends (including any amount designated as a capital gain
42 dividend) from a real estate investment trust as defined in section
43 eight hundred fifty-six of the internal revenue code shall not be treat-
44 ed as dividends for purposes of this subparagraph, (iii) dividends from
45 a corporation that is a member of an affiliated group (as such term is
46 defined in section fifteen hundred four of the internal revenue code)
47 that includes the taxpayer, and that, alone or in connection with one or
48 more other corporations in such affiliated group, owns over fifty
49 percent of the capital stock of a real estate investment trust, shall
50 not be treated as dividends for purposes of this subparagraph to the
51 extent the dividends are attributable to such corporation's ownership
52 interest in such a real estate investment trust, and (iv) in the case of
53 (I) a regulated investment company, as defined in section eight hundred
54 fifty-one of the internal revenue code, that is a subsidiary of the
55 taxpayer, (II) a regulated investment company that is not a subsidiary
56 of the taxpayer, or (III) a subsidiary of the taxpayer whose distrib-
S. 6460 110 A. 9560
1 utions are described in clause (iv) of subparagraph (A) of this para-
2 graph and are attributable to an ownership interest in a regulated
3 investment company, the exclusion under this subparagraph shall apply
4 only with respect to a dividend that is, or that is attributable to a
5 dividend that is, properly designated under subparagraph (A) of para-
6 graph (1) of subsection (b) of section eight hundred fifty-four of the
7 internal revenue code ;
8 § 6. Subparagraph (H) of paragraph 2 of subdivision (b) of section
9 1503 of the tax law, as added by chapter 649 of the laws of 1974 and as
10 relettered by chapter 788 of the laws of 1978, is amended to read as
11 follows:
12 (H) in the discretion of the [tax commission] commissioner , any amount
13 of interest directly or indirectly and any other amount directly attrib-
14 utable as a carrying charge or otherwise to subsidiary capital or to
15 income, gains or losses from subsidiary capital[.], except to the extent
16 that such amounts are directly or indirectly attributable to (i) subsid-
17 iary capital the income, gains or losses from which are not excluded
18 from entire net income pursuant to subparagraph (A) of paragraph one of
19 this subdivision, or (ii) income, gains or losses from subsidiary capi-
20 tal that are not excluded from entire net income pursuant to such
21 subparagraph (A);
22 § 7. Paragraph 2 of subdivision (c) of section 1504 of the tax law, as
23 added by chapter 649 of the laws of 1974, is amended to read as follows:
24 (2) Subsidiary capital. The portion of the taxpayer's subsidiary capi-
25 tal to be allocated within the state shall be determined by multiplying
26 the amount of subsidiary capital invested in each subsidiary during the
27 period covered by its return (or, in the case of any such capital so
28 invested during only a portion of such period, such portion of such
29 capital) by the percentage, if any, of the entire capital, or the issued
30 capital stock, or the net income, as the case may be, of such subsidiary
31 required to be allocated within the state on the return or returns, if
32 any, required of such subsidiary under this chapter for the preceding
33 year, and adding the sums so obtained; except that, for purposes of this
34 paragraph, the amount of such subsidiary capital, prior to allocation,
35 shall be reduced by one hundred percent of the investments in the stock
36 of, and any indebtedness from, subsidiaries the income, gains or losses
37 from which are not excluded from entire net income pursuant to subpara-
38 graph (A) of paragraph one of subdivision (b) of section fifteen hundred
39 three of this article, but only to the extent such investments or
40 indebtedness are directly or indirectly attributable to income, gains or
41 losses that are not so excluded .
42 § 8. This act shall take effect immediately and apply to taxable years
43 beginning on or after January 1, 2006.
44 PART OO
45 Section 1. Section 95 of the state finance law, as added by chapter 264
46 of the laws of 1944, subdivision 2 as added and subdivision 4 as renum-
47 bered by chapter 92 of the laws of 1978 and subdivision 3 as amended by
48 chapter 516 of the laws of 1992, is amended and a new subdivision 5 is
49 added to read as follows:
50 § 95. Abandoned property fund. 1. [The] There is hereby established
51 in the joint custody of the state comptroller [shall maintain] and the
52 commissioner of taxation and finance a special fund to be known as the
53 abandoned property fund. Such fund shall consist of all moneys paid to
54 [him] the comptroller pursuant to the provisions of the abandoned prop-
S. 6460 111 A. 9560
1 erty law and all moneys which by law are required to be paid into such
2 fund. All personal property, other than money, delivered to [him] the
3 comptroller pursuant to the abandoned property law, or which by law
4 shall be delivered to [him] the comptroller For the benefit of such
5 fund, shall be retained by [him] the comptroller until sold pursuant to
6 the provisions of the abandoned property law in trust for the benefit of
7 such fund.
8 2. Annually, on or before the end of the calendar year the comptroller
9 shall file with the director of the budget an itemized estimate of the
10 expenses for the administration of the abandoned property fund for the
11 ensuing year. The director of the budget may revise and amend such
12 estimate. After such revision and amendment, if any, such director shall
13 approve the same for inclusion in the executive budget. [No moneys shall
14 be paid out of the abandoned property fund for such expenses unless
15 expenditures therefor shall have been authorized by law.]
16 3. [Whenever the amount of moneys in the abandoned property fund as of
17 the last day of any month shall exceed the greater of the sum of six
18 million dollars or an amount which in the comptroller's sole discretion
19 is necessary to satisfy claims against such fund during the immediately
20 succeeding month, the comptroller shall draw a warrant or voucher upon
21 such special fund for the amount in excess of such sum and shall pay
22 such amount into the state treasury to the credit of the general fund.]
23 The comptroller shall retain, of the total monies collected or received
24 in the abandoned property fund, such amount as it shall be jointly
25 determined by the comptroller and the commissioner of taxation and
26 finance to be necessary to satisfy claims against such fund. The comp-
27 troller shall maintain a system of accounts showing the amount of reven-
28 ue collected or received from such articles. The comptroller, after
29 reserving the amount to pay such claims, shall, on or before the tenth
30 day of each month, transfer from the abandoned property fund to the
31 state purposes account all revenue deposited under this section during
32 the preceding calendar month and remaining to the comptroller's credit
33 on the last day of such preceding month. Notwithstanding the foregoing,
34 the comptroller and the [director of the budget] commissioner of taxa-
35 tion and finance or their respective designees shall review the balance
36 remaining in the abandoned property fund as of the last day of [the
37 months of March, June, September and December in] each [year] month , as
38 soon as practicable after each such date, and may [mutually agree upon
39 an amount to be paid] transfer the balance remaining from such fund into
40 the [state treasury to the credit of the general fund] state purposes
41 account , which may cause the balance in such fund to fall below six
42 million dollars[; provided, however]. However , in no event shall the
43 amount of moneys in the abandoned property fund exceed seven hundred
44 fifty thousand dollars at the end of the last day of the fiscal year.
45 4. All moneys in the abandoned property fund shall be deposited by the
46 state comptroller in one or more state banks, trust companies or savings
47 banks. Any interest received by the comptroller upon any such deposit
48 and any interest or other moneys received by [him] the comptroller on
49 account of any personal property other than money, retained by [him] the
50 comptroller For the benefit of such fund, shall be the property of the
51 state and shall be credited to such fund.
52 5. The comptroller, within the applicable period of limitations, may
53 credit an abandoned property claim against the abandoned property fund
54 to the person who made the claim, pursuant to the authority of this
55 chapter or any other law on such person. The balance shall be paid by
56 the comptroller out of the abandoned property fund retained by the comp-
S. 6460 112 A. 9560
1 troller for such general purpose. Any repaid claim under this section
2 shall be made only upon the filing of a claim approved by the comp-
3 troller. The comptroller, as a condition precedent to the approval of
4 such a certificate, may examine into the facts as disclosed by the
5 claimant and other information and data available.
6 § 2. Subdivision 1 of section 171-a of the tax law, as amended by
7 section 1 of part R of chapter 60 of the laws of 2004, is amended to
8 read as follows:
9 1. All taxes, interest, penalties and fees collected or received by
10 the commissioner or the commissioner's duly authorized agent under arti-
11 cles nine (except section one hundred eighty-two-a thereof and except as
12 otherwise provided in section two hundred five thereof), nine-A,
13 twelve-A (except as otherwise provided in section two hundred eighty-
14 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
15 section three hundred twelve thereof), eighteen, nineteen, twenty
16 (except as otherwise provided in section four hundred eighty-two there-
17 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
18 (except as otherwise provided in section eleven hundred two or eleven
19 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
20 provided in section fourteen hundred twenty-one thereof), thirty-two,
21 thirty-three and thirty-three-A of this chapter shall be deposited daily
22 in one account with such responsible banks, banking houses or trust
23 companies as may be designated jointly by the comptroller[, to the cred-
24 it of the comptroller] and the commissioner . Such an account may be
25 established in one or more of such depositories. Such deposits shall be
26 kept separate and apart from all other money [in the possession of the
27 comptroller]. The comptroller shall require adequate security from all
28 such depositories. Of the total revenue collected or received under such
29 articles of this chapter, the comptroller shall retain in the comp-
30 troller's hands such amount as the commissioner may determine to be
31 necessary for refunds [or], reimbursements or claims under such articles
32 of this chapter and former article ten thereof and section ninety-five
33 of the state finance law out of which amount the comptroller shall pay
34 any refunds [or], reimbursements or claims to which taxpayers and claim-
35 ants shall be entitled under the provisions of such articles of this
36 chapter and former article ten thereof and section ninety-five of the
37 state finance law . The commissioner and the comptroller shall maintain a
38 system of accounts showing the amount of revenue collected or received
39 from each of the taxes imposed by such articles and section ninety-five
40 of the state finance law . The comptroller, after reserving the amount to
41 pay such refunds [or], reimbursements or claims , shall, on or before the
42 tenth day of each month, pay into the state treasury to the credit of
43 the general fund all revenue deposited under this section during the
44 preceding calendar month and remaining to the comptroller's credit on
45 the last day of such preceding month, (i) except that the comptroller
46 shall pay to the state department of social services that amount of
47 overpayments of tax imposed by article twenty-two of this chapter and
48 the interest on such amount which is certified to the comptroller by the
49 commissioner as the amount to be credited against past-due support
50 pursuant to subdivision six of section one hundred seventy-one-c of this
51 [chapter] article , (ii) and except that the comptroller shall pay to the
52 New York state higher education services corporation and the state
53 university of New York or the city university of New York respectively
54 that amount of overpayments of tax imposed by article twenty-two of this
55 chapter and the interest on such amount which is certified to the comp-
56 troller by the commissioner as the amount to be credited against the
S. 6460 113 A. 9560
1 amount of defaults in repayment of guaranteed student loans and state
2 university loans or city university loans pursuant to subdivision five
3 of section one hundred seventy-one-d and subdivision six of section one
4 hundred seventy-one-e of this [chapter] article , (iii) and except
5 further that, notwithstanding any law, the comptroller shall credit to
6 the revenue arrearage account, pursuant to section ninety-one-a of the
7 state finance law, that amount of overpayment of tax imposed by article
8 nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-two or
9 thirty-three of this chapter, and any interest thereon, which is certi-
10 fied to the comptroller by the commissioner as the amount to be credited
11 against a past-due legally enforceable debt owed to a state agency
12 pursuant to paragraph (a) of subdivision six of section one hundred
13 seventy-one-f of this article, provided, however, he shall credit to the
14 special offset fiduciary account, pursuant to section ninety-one-c of
15 the state finance law, any such amount creditable as a liability as set
16 forth in paragraph (b) of subdivision six of section one hundred seven-
17 ty-one-f of this article, (iv) and except further that the comptroller
18 shall pay to the city of New York that amount of overpayment of tax
19 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
20 thirty-two, or thirty-three of this chapter and any interest thereon
21 that is certified to the comptroller by the commissioner as the amount
22 to be credited against city of New York tax warrant judgment debt pursu-
23 ant to section one hundred seventy-one-1 of this article, (v) and except
24 further that the comptroller shall pay to a non-obligated spouse that
25 amount of overpayment of tax imposed by article twenty-two of this chap-
26 ter and the interest on such amount which has been credited pursuant to
27 section one hundred seventy-one-c, one hundred seventy-one-d, one
28 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
29 ty-one-l of this article and which is certified to the comptroller by
30 the commissioner as the amount due such non-obligated spouse pursuant to
31 paragraph six of subsection (b) of section six hundred fifty-one of this
32 chapter; and (vi) the comptroller shall deduct a like amount which the
33 comptroller shall pay into the treasury to the credit of the general
34 fund from amounts subsequently payable to the department of social
35 services, the state university of New York, the city university of New
36 York, or the higher education services corporation, or the revenue
37 arrearage account or special offset fiduciary account pursuant to
38 section ninety-one-a or ninety-one-c of the state finance law, as the
39 case may be, whichever had been credited the amount originally withheld
40 from such overpayment, and (vii) with respect to amounts originally
41 withheld from such overpayment pursuant to section one hundred seventy-
42 one-l of this article and paid to the city of New York, the comptroller
43 shall collect a like amount from the city of New York.
44 § 3. This act shall take effect immediately.
45 PART PP
46 Section 1. Subdivision 6 of section 470 of the tax law, as added by
47 chapter 61 of the laws of 1989, is amended to read as follows:
48 6. "Wholesale price." The [established price for which a manufacturer
49 sells tobacco products to a distributor, before the allowance of any
50 discount, trade allowance, rebate or other reduction.
51 In the absence of such an established price, a manufacturer's invoice
52 price of any tobacco product shall be presumptive evidence of the whole-
53 sale price of such tobacco product, and in its absence the] price at
54 which [such] tobacco products were purchased [shall be presumed to be
S. 6460 114 A. 9560
1 the wholesale price, unless evidence of a lower wholesale price shall be
2 established or any industry standard of markups relating to the purchase
3 price in relation to the wholesale price shall be established] by the
4 distributor who imported or caused to be imported into this state such
5 products from an unrelated person, before the allowance of any discount,
6 trade allowance, rebate or other reduction. In the case where such a
7 distributor purchases tobacco products from a related person, the whole-
8 sale price shall be the price at which the related person who sold such
9 tobacco products customarily sells such tobacco products to a distribu-
10 tor in this state which is not a related person to such seller, before
11 the allowance of any discount, trade allowance, rebate or other
12 reduction. In the case where such a distributor purchases tobacco
13 products from a related person and the related person who sold such
14 tobacco products does not customarily sell such tobacco products to an
15 unrelated person in this state, the wholesale price shall be the price
16 at which such tobacco products are customarily sold by such distributor
17 to an unrelated person, before the allowance of any discount, trade
18 allowance, rebate or other reduction. Furthermore, where a distributor
19 manufactures tobacco products in this state and sells such tobacco
20 products to an unrelated person, the wholesale price shall be the price
21 at which such tobacco products are customarily sold by such distributor
22 to an unrelated person, before the allowance of any discount, trade
23 allowance, rebate or other reduction. Provided, further, in the case
24 where a distributor imported or caused to be imported into this state
25 tobacco products purchased from a related person and such related person
26 who sold such tobacco products does not customarily sell such tobacco
27 products to an unrelated person in this state and such distributor sells
28 such products to a related person or where a distributor manufactures
29 tobacco products in this state and sells such tobacco products to a
30 related person, the wholesale price shall be the price at which such
31 tobacco products are customarily sold by such distributor to an unre-
32 lated person, before the allowance of any discount, trade allowance,
33 rebate or other reduction. In the event such distributor does not
34 customarily sell such tobacco products to an unrelated person, then the
35 wholesale price shall be based upon the fair market value of such tobac-
36 co products, which shall be deemed to include the first sale by a
37 related person of such distributor to an unrelated person. For purposes
38 of this subdivision, "related person" shall be defined as set forth in
39 subparagraph (C) of paragraph three of subdivision (b) of section four
40 hundred sixty-five of the internal revenue code, except that "50
41 percent" shall be substituted for "10 percent" as the applicable
42 percentage with respect to applying the provisions set forth in such
43 subparagraph .
44 § 2. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
45 law, as amended by chapter 744 of the laws of 1990, are amended and a
46 new paragraph (g) is added to read as follows:
47 (e) Any controlling person of such applicant has committed any of the
48 acts specified in subdivision three of this section within the preceding
49 five years[, or];
50 (f) Such applicant or any controlling person has been finally deter-
51 mined to have violated any of the provisions of this article or article
52 twenty-A of this chapter, or any rule or regulation adopted pursuant to
53 this article or article twenty-A of this chapter[.]; or
54 (g) After carefully evaluating the character, fitness, experience,
55 maturity and financial responsibility of the applicant, the commissioner
S. 6460 115 A. 9560
1 determines that the public convenience and advantage would not be served
2 by approval of the application.
3 § 3. Paragraphs (a) and (b) of subdivision 4 of section 480-a of the
4 tax law, as added by chapter 629 of the laws of 1996, are amended to
5 read as follows:
6 (a) If a retail dealer possesses or sells unstamped or unlawfully
7 stamped packages of cigarettes, or if a retail dealer is also licensed
8 as an agent pursuant to section four hundred seventy-two of this article
9 and it possesses unlawfully stamped packages of cigarettes or sells
10 unstamped or unlawfully stamped packages of cigarettes at retail, or if
11 a retail dealer possesses or sells tobacco products with respect to
12 which the tobacco products tax has not been paid or assumed by a
13 distributor or a tobacco products dealer, (i) its registration shall be
14 suspended for a period of not more than six months, or (ii) for a second
15 such possession or sale within a period of five years, its registration
16 shall be suspended for a period of up to thirty-six months, or (iii) for
17 a third such possession or sale within a period of five years, its
18 registration may be revoked for a period of up to five years. A retail
19 dealer registration shall be suspended or revoked pursuant to this
20 subdivision immediately upon such dealer's receipt of written notice of
21 suspension or revocation from the commissioner. If a retail dealer sells
22 cigarettes or tobacco products through more than one place of business
23 in this state, the retail dealer registration shall not be suspended or
24 revoked pursuant to this subdivision, but the certificate of registra-
25 tion issued to the place of business, cart, stand, truck or other
26 merchandising device where unstamped or unlawfully stamped cigarettes or
27 tobacco products with respect to which the tobacco products tax has not
28 been paid or assumed by a distributor or a tobacco products dealer were
29 found shall be suspended or cancelled for possession or sale of
30 unstamped or unlawfully stamped packages of cigarettes or such tobacco
31 products , as if such certificate of registration were a retail dealer
32 registration. A suspension or cancellation of a certificate of registra-
33 tion shall be treated as if it were a suspension or revocation of a
34 registration. If unstamped or unlawfully stamped cigarettes or such
35 tobacco products are found in a retail dealer's warehouse, the suspen-
36 sion or revocation of the retail dealer's registration pursuant to this
37 subdivision shall be applicable to each retail place of business in this
38 state through which such retail dealer sells cigarettes or tobacco
39 products .
40 (b) A retail dealer who is notified of a suspension or revocation of
41 its registration pursuant to this subdivision shall have the right to
42 have the suspension or revocation reviewed by the commissioner or his
43 designee by contacting the department at a telephone number or an
44 address to be disclosed in the notice of suspension or revocation within
45 ten days of such dealer's receipt of such notification. The retail deal-
46 er may present written evidence or argument in support of its defense to
47 the suspension or revocation, or may appear at a scheduled conference
48 with the commissioner or his designee to present oral arguments and
49 written and oral evidence in support of such defense. The commissioner
50 or his designee is authorized to delay the effective date of the suspen-
51 sion or revocation to enable the retail dealer to present further
52 evidence or arguments in connection with the suspension or revocation.
53 The commissioner or his designee shall cancel the suspension or revoca-
54 tion of registration if the commissioner or his designee is not satis-
55 fied by a preponderance of the evidence that the retail dealer possessed
56 or sold unstamped or unlawfully stamped packages of cigarettes or tobac-
S. 6460 116 A. 9560
1 co products with respect to which the tobacco products tax had not been
2 paid or assumed by a distributor or a tobacco products dealer .
3 § 4. Paragraph (b) of subdivision 1 of section 481 of the tax law, as
4 amended by chapter 262 of the laws of 2000, is amended to read as
5 follows:
6 (b) (i) In addition to any other penalty imposed by this article, the
7 commissioner may impose a penalty of not more than one hundred fifty
8 dollars for each two hundred cigarettes, or fraction thereof, in excess
9 of one thousand cigarettes in unstamped or unlawfully stamped packages
10 in the possession or under the control of any person. [In addition, the
11 commissioner may impose a penalty of not more than seventy-five dollars
12 for each fifty cigars or one pound of tobacco, or fraction thereof, in
13 excess of two hundred fifty cigars or five pounds of tobacco in the
14 possession or under the control of any person and a penalty of not more
15 than one hundred fifty dollars for each fifty cigars or pound of tobac-
16 co, or fraction thereof, in excess of five hundred cigars or ten pounds
17 of tobacco in the possession or under the control of any person, with
18 respect to which the tobacco products tax has not been paid or assumed
19 by a distributor or tobacco products dealer; provided, however, that any
20 such penalty imposed shall not exceed seven thousand five hundred
21 dollars in the aggregate. The commissioner may impose a penalty of not
22 more than seventy-five dollars for each fifty cigars or one pound of
23 tobacco, or fraction thereof, in excess of fifty cigars or one pound of
24 tobacco in the possession or under the control of any tobacco products
25 dealer or distributor appointed by the commissioner, and a penalty of
26 not more than one hundred fifty dollars for each fifty cigars or pound
27 of tobacco, or fraction thereof, in excess of two hundred fifty cigars
28 or five pounds of tobacco in the possession or under the control of any
29 such dealer or distributor, with respect to which the tobacco products
30 tax has not been paid or assumed by a distributor or a tobacco products
31 dealer; provided, however, that any such penalty imposed shall not
32 exceed fifteen thousand dollars in the aggregate.]
33 (ii) The penalties imposed by this subparagraph may be imposed by the
34 commissioner in addition to any other penalty imposed by this article,
35 but in lieu of the penalties imposed by subparagraph (i) of this para-
36 graph:
37 (A) [(I)] not less than thirty dollars but not more than two hundred
38 dollars for each two hundred cigarettes, or fraction thereof, in excess
39 of one thousand cigarettes but less than or equal to five thousand ciga-
40 rettes in unstamped or unlawfully stamped packages knowingly in the
41 possession or knowingly under the control of any person;
42 [(II)] (B) not less than seventy-five dollars but not more than two
43 hundred dollars for each two hundred cigarettes, or fraction thereof, in
44 excess of five thousand cigarettes but less than or equal to twenty
45 thousand cigarettes in unstamped or unlawfully stamped packages knowing-
46 ly in the possession or knowingly under the control of any person; and
47 [(III)] (C) not less than one hundred dollars but not more than two
48 hundred dollars for each two hundred cigarettes, or fraction thereof, in
49 excess of twenty thousand cigarettes in unstamped or unlawfully stamped
50 packages, knowingly in the possession or knowingly under the control of
51 any person.
52 [(B)(I) not less than twenty-five dollars but not more than one
53 hundred dollars for each fifty cigars or one pound of tobacco, or frac-
54 tion thereof, in excess of two hundred fifty cigars or five pounds of
55 tobacco knowingly in the possession or knowingly under the control of
S. 6460 117 A. 9560
1 any person, with respect to which the tobacco products tax has not been
2 paid or assumed by a distributor or tobacco products dealer; and
3 (II) not less than fifty dollars but not more than two hundred dollars
4 for each fifty cigars or pound of tobacco, or fraction thereof, in
5 excess of five hundred cigars or ten pounds of tobacco knowingly in the
6 possession or knowingly under the control of any person, with respect to
7 which the tobacco products tax has not been paid or assumed by a
8 distributor or tobacco products dealer; provided, however, that any such
9 penalty imposed under this clause shall not exceed ten thousand dollars
10 in the aggregate.
11 (C) (I) not less than twenty-five dollars but not more than one
12 hundred dollars for each fifty cigars or one pound of tobacco, or frac-
13 tion thereof, in excess of fifty cigars or one pound of tobacco knowing-
14 ly in the possession or knowingly under the control of any person, with
15 respect to which the tobacco products tax has not been paid or assumed
16 by a distributor or tobacco products dealer; and
17 (II) not less than fifty dollars but not more than two hundred dollars
18 for each fifty cigars or pound of tobacco, or fraction thereof, in
19 excess of two hundred fifty cigars or five pounds of tobacco knowingly
20 in the possession or knowingly under the control of any person, with
21 respect to which the tobacco products tax has not been paid or assumed
22 by a distributor or a tobacco products dealer; provided, however, that
23 any such penalty imposed under this clause shall not exceed twenty thou-
24 sand dollars in the aggregate.]
25 (iii) In addition to any other penalty imposed by this article, the
26 commissioner may impose a penalty of two hundred percent of the amount
27 of the tax for each cigar or pound of tobacco, in the possession or
28 under the control of any person, with respect to which the tobacco
29 products tax has not been paid or assumed by a distributor or tobacco
30 products dealer. Provided, however, the penalty imposed under this
31 subparagraph shall only apply if the amount of cigars or tobacco equals
32 or exceeds two hundred fifty cigars or five pounds of tobacco.
33 (iv) Any penalty provided for in this paragraph shall be determined as
34 provided in section four hundred seventy-eight of this chapter, and may
35 be reviewed only pursuant to such section. Such penalty shall be
36 collected in the same manner as the taxes imposed by this article. The
37 commissioner in the commissioner's discretion, may remit all or part of
38 such penalty. Such penalty shall be paid to the department and disposed
39 of as hereinafter provided with respect to moneys derived from the tax.
40 § 5. Subdivisions 3 and 4 of section 481 of the tax law are renumbered
41 subdivisions 4 and 5 and a new subdivision 3 is added to read as
42 follows:
43 3. Any officer, director, shareholder or employee of a corporation or
44 of a dissolved corporation, any employee of a partnership or any employ-
45 ee of an individual proprietorship, who as such officer, director,
46 shareholder or employee is under a duty to act for such corporation,
47 partnership or proprietorship in complying with any requirement of this
48 article, and any member of a partnership, which fails to pay the taxes
49 imposed by or pursuant to this article, shall, in addition to other
50 penalties provided by law, be liable to a penalty equal to the total
51 amount of the tax not paid, plus penalties and interest computed pursu-
52 ant to this section. If the commissioner determines that such failure
53 was due to reasonable cause and not due to willful neglect, it shall
54 remit all or part of such penalty imposed under this subdivision. Such
55 penalty shall be determined, assessed, collected and paid in the same
S. 6460 118 A. 9560
1 manner as the taxes imposed by this article and shall be disposed of as
2 hereinafter provided with respect to moneys derived from the tax.
3 § 6. This act shall take effect on the first day of the first month
4 next occurring 90 days after this act shall have become a law and shall
5 apply to sales made on or after such date.
6 PART QQ
7 Section 1. Section 631 of the tax law is amended by adding a new
8 subsection (g) to read as follows:
9 (g) Stock option grants, stock appreciation rights and restricted
10 stock. A nonresident taxpayer who has been granted statutory stock
11 options, restricted stock, nonstatutory stock options or stock appreci-
12 ation rights and who, during such grant period, performs services within
13 New York for, or is employed within New York by, the corporation grant-
14 ing such option, stock or right, shall compute his or her New York
15 source income as determined under rules and regulations prescribed by
16 the commissioner.
17 § 2. Section 638 of the tax law is amended by adding a new subsection
18 (c) to read as follows:
19 (c) Stock option grants, stock appreciation rights and restricted
20 stock. A part-year resident taxpayer who has been granted statutory
21 stock options, restricted stock, nonstatutory stock options or stock
22 appreciation rights and who, during such grant period, performs services
23 within New York for, or is employed within New York by, the corporation
24 granting such option, stock or right, shall compute his or her New York
25 source income as determined under rules and regulations prescribed by
26 the commissioner.
27 § 3. The commissioner of taxation and finance shall propose the rules
28 and regulations referenced in subsection (g) of section 631 and
29 subsection (c) of section 638 of the tax law, as added by sections one
30 and two of this act, respectively, within one hundred eighty days of the
31 effective date of this act. Such rules and regulations may apply to
32 taxable years beginning on or after January 1, 2006 and shall be
33 controlling for such taxable years notwithstanding any tax appeals
34 tribunal decision to the contrary.
35 § 4. This act shall take effect immediately.
36 PART RR
37 Section 1. Subdivision 1 of section 209-B of the tax law, as amended by
38 section 4 of part C of chapter 60 of the laws of 2004, 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 nine, a tax surcharge,
51 in addition to the tax imposed under section two hundred nine of this
52 article, to be computed at the rate of eighteen per centum of the tax
S. 6460 119 A. 9560
1 imposed under such section two hundred nine for such taxable years or
2 any part of such taxable years ending before December thirty-first,
3 nineteen hundred eighty-three after the deduction of any credits other-
4 wise allowable under this article, and at the rate of seventeen per
5 centum of the tax imposed under such section for such taxable years or
6 any part of such taxable years ending on or after December thirty-first,
7 nineteen hundred eighty-three after the deduction of any credits other-
8 wise allowable under this article; provided, however, that such rates of
9 tax surcharge shall be applied only to that portion of the tax imposed
10 under section two hundred nine of this article after the deduction of
11 any credits otherwise allowable under this article which is attributable
12 to the taxpayer's business activity carried on within the metropolitan
13 commuter transportation district; and provided, further, that the tax
14 surcharge imposed by this section shall not be imposed upon any taxpayer
15 for more than three hundred twenty-four months. Provided however, that
16 for taxable years commencing on or after July first, nineteen hundred
17 ninety-eight, such surcharge shall be calculated as if the tax rates
18 imposed under section two hundred ten of this article were [imposed
19 under the law] the tax rates in effect for taxable years commencing on
20 or after July first, nineteen hundred ninety-seven and before July
21 first, nineteen hundred ninety-eight.
22 § 2. Section 171-a of the tax law, as separately amended by chapters
23 481 and 484 of the laws of 1981, is amended by adding a new subdivision
24 3 to read as follows:
25 3. (a) Notwithstanding subdivisions one and two of this section or any
26 other provision of law to the contrary, the following amounts of reven-
27 ues from the taxes imposed by section two hundred nine of this chapter,
28 reduced by an amount for administrative costs relating to such amounts,
29 shall be deposited to the credit of the metropolitan mass transportation
30 operating assistance account in the mass transportation operating
31 assistance fund, created pursuant to section eighty-eight-a of the state
32 finance law: for the state fiscal year two thousand six--two thousand
33 seven, eight million dollars; for the state fiscal year two thousand
34 seven--two thousand eight, sixteen million dollars; for the state fiscal
35 year two thousand eight--two thousand nine, and each fiscal year there-
36 after in which the surcharge imposed under section two hundred nine-B of
37 this chapter is in effect, sixty-five million dollars in each such year.
38 Such amounts shall be paid over the state fiscal year in September,
39 December and March of such years.
40 (b) Notwithstanding subdivisions one and two of this section or any
41 other provision of law to the contrary, the following amounts of reven-
42 ues from the taxes imposed by section fourteen hundred fifty-one of this
43 chapter, reduced by an amount for administrative costs relating to such
44 amounts, shall be deposited to the credit of the metropolitan mass
45 transportation operating assistance account in the mass transportation
46 operating assistance fund, created pursuant to section eighty-eight-a of
47 the state finance law: for the state fiscal year two thousand six--two
48 thousand seven, seven million dollars; for the state fiscal year two
49 thousand seven--two thousand eight, fourteen million dollars; for the
50 state fiscal year two thousand eight--two thousand nine, and each fiscal
51 year thereafter in which the surcharge imposed under section fourteen
52 hundred fifty-five-B is imposed, thirty-two million dollars in each such
53 year. Such amounts shall be paid over the state fiscal year in Septem-
54 ber, December and March of such years.
55 (c) The amount for administrative costs shall be determined by the
56 commissioner to represent reasonable costs of the department in adminis-
S. 6460 120 A. 9560
1 tering, collecting, determining, and distributing such taxes. Of the
2 total revenue collected or received under such sections of this chapter,
3 the comptroller shall retain in his or her hands such amount as the
4 commissioner may determine to be necessary for refunds or reimbursements
5 under such sections of this chapter out of which amount the comptroller
6 shall pay any refunds or reimbursements to which taxpayers shall be
7 entitled under the provisions of such sections. The commissioner and the
8 comptroller shall maintain a system of accounts showing the amount of
9 revenue collected or received from each of the taxes imposed by such
10 sections.
11 § 3. This act shall take effect immediately.
12 PART SS
13 Section 1. Subparagraph (B) of paragraph 1 of subdivision (b) of section
14 483 of the tax law, as amended by chapter 1 of the laws of 1999, is
15 amended to read as follows:
16 (B) In the absence of the filing with the commissioner of satisfactory
17 proof of a lesser cost of doing business of the agent making the sale,
18 the cost of doing business by the agent shall be presumed to be [seven-
19 eighths of one] 1.9375 percent of the basic cost of cigarettes for sales
20 to wholesale dealers plus [one cent per package of ten cigarettes,] two
21 cents per package of [twenty] cigarettes and in the case of a package
22 containing more than twenty cigarettes, two cents and one-half of a cent
23 for each five cigarettes in excess of twenty cigarettes, [one and one-
24 half] 3.0 percent of the basic cost of cigarettes for sales to chain
25 stores plus [one cent per package of ten cigarettes,] two cents per
26 package of [twenty] cigarettes and in the case of a package containing
27 more than twenty cigarettes, two cents and one-half of a cent for each
28 five cigarettes in excess of twenty cigarettes and [three and seven-
29 eighths] 5.4375 percent of the basic cost of cigarettes with respect to
30 sales to retail dealers plus [one cent per package of ten cigarettes,]
31 two cents per package of [twenty] cigarettes and in the case of a pack-
32 age containing more than twenty cigarettes, two cents and one-half of a
33 cent for each five cigarettes in excess of twenty cigarettes and the
34 foregoing cents per pack shall be included in the "cost of doing busi-
35 ness by the agent" referred to in paragraphs two and three of this
36 subdivision.
37 § 2. Subparagraph (B) of paragraph 2 of subdivision (b) of section 483
38 of the tax law, as amended by chapter 4 of the laws of 1988, is amended
39 to read as follows:
40 (B) In the absence of the filing with the [tax commission] commission-
41 er of satisfactory proof of a lesser cost of doing business of the
42 wholesale dealer making the sale, the cost of doing business by the
43 wholesale dealer with respect to sales to retail dealers shall be
44 presumed to be [three per centum] 3.5 percent of the basic cost of ciga-
45 rettes, and with respect to sales to chain stores, [five-eighths of one]
46 1.125 percent of the basic cost of cigarettes.
47 § 3. This act shall take effect June 1, 2006; provided, however, that
48 the commissioner of taxation and finance shall be authorized on and
49 after this act shall have become a law to take steps necessary to imple-
50 ment these provisions on their effective date.
51 PART TT
S. 6460 121 A. 9560
1 Section 1. Section 2 of chapter 714 of the laws of 2004, amending the
2 tax law relating to limiting the credit of tax overpayments to the
3 office of temporary and disability assistance for certain taxpayers, is
4 amended to read as follows:
5 § 2. This act shall take effect immediately and shall apply to taxable
6 years beginning on and after January 1, 2004 [and before January 1,
7 2007].
8 § 2. This act shall take effect immediately.
9 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
10 sion, section or part of this act shall be adjudged by any court of
11 competent jurisdiction to be invalid, such judgment shall not affect,
12 impair, or invalidate the remainder thereof, but shall be confined in
13 its operation to the clause, sentence, paragraph, subdivision, section
14 or part thereof directly involved in the controversy in which such judg-
15 ment shall have been rendered. It is hereby declared to be the intent of
16 the legislature that this act would have been enacted even if such
17 invalid provisions had not been included herein.
18 § 3. This act shall take effect immediately provided, however, that
19 the applicable effective date of Parts A through TT of this act shall be
20 as specifically set forth in the last section of such Parts.
S. 6460 122 A. 9560
1 2006-2007 NEW YORK STATE EXECUTIVE BUDGET
2 REVENUE ARTICLE VII LEGISLATION
3 CONTENTS
4 STARTING
5 PAGE
6 PART DESCRIPTION NUMBER
7 A Eliminate the marriage penalty by increasing the 4
8 standard deductions and increasing the rate recapture
9 threshold.
10 B Reduce the top personal income tax (PIT) rate from 7
11 6.85 percent to 6.75 percent and increase the
12 bracket to which the top rate applies.
13 C Expand the current exemption for members of organized 15
14 militia to persons called to service in New York State
15 by the Federal government.
16 D Provide a new refundable credit for primary and 15
17 secondary tuition and other instructional expenses.
18 E Phase out and eliminate the estate tax by conforming 17
19 State exemptions to Federal levels.
20 F Expand the Empire Zone Program. 18
21 G Eliminate the additional Corporate Franchise Tax 21
22 imposed on subsidiary capital.
23 H Eliminate the Alternative Minimum base. 21
24 I Provide for immediate expensing for business assets 22
25 placed in service in New York.
26 J Reduce the rate imposed under the Entire Net Income 26
27 Tax (ENI) base from 7.5 to 6.75 percent.
28 K Eliminate the Capital and Asset base. 29
29 L Eliminate the S-Corporation differential tax. 32
30 M Reform the manner in which life insurance companies 32
31 calculate their taxes when more than 95 percent of their
32 total premiums consist of annuity premiums.
33 N Decrease the maximum and minimum limitations on the 32
34 franchise tax applicable to life insurance companies.
35 O Increase the sales tax vendor credit from a State only 33
36 base to a State and local base as well as increasing
37 the quarterly cap from $150 to $250 over three years.
38 P Extend the Federal Gramm-Leach-Bliley Act provisions 35
39 and make New York State and New York City Bank Tax
40 Reform provisions permanent.
41 Q Authorize two sales tax free weeks for the purchase of 42
42 Energy Star appliances and home weather stripping,
43 caulking, and insulation products.
44 R Provide a refundable credit to residents age 65 and 51
45 older.
46 S Provide a refundable credit equal to 50 percent of the 51
47 costs of upgrading or renovating a residential home
48 heating system.
49 T Provide small business taxpayers and farmers with a 52
50 refundable credit for energy costs.
51 U Provide tax credits for the purchase of alternative 58
52 fuel vehicles and for the production of alternative
S. 6460 123 A. 9560
1 fuels.
2 V Exempt the sale of alternative fuels (e.g., E85) 68
3 from motor fuel and sales taxes.
4 W Improve the efficiency and implementation of the 73
5 Brownfields program.
6 X Create a credit for the restoration of historic homes. 74
7 Y Create a new credit for farmers for property tax paid 77
8 on land related to conservation easements.
9 Z Make the clothing exemption permanent for purchases up 80
10 to $250 for 2 weeks annually.
11 AA Extend LLC fees. 85
12 BB Extend the additional fixed dollar minimum brackets. 86
13 CC Make permanent $2 million in annual credits for 86
14 investing in low income housing.
15 DD Make permanent the partial sales tax exemption for 86
16 admission charges to qualifying amusement parks.
17 EE Amend and make permanent the distribution of a portion 86
18 of corporation and utility tax receipts to the Dedica-
19 ted Highway and Bridge Trust Fund and the Mass Transp-
20 ortation Operating Assistance Fund.
21 FF Simplify the administration of the sales and use tax 87
22 registration program for persons contracting with the
23 State.
24 GG Authorize competitive bidding on three additional 93
25 licenses to operate a Video Lottery facility.
26 HH Lower the dormancy period on travelers' checks and 94
27 money orders under the abandoned property law.
28 II Address deficiencies in existing law relating to the 95
29 collection of taxes with respect to sales of goods and
30 services on Indian reservations to non-Indians.
31 JJ Save harmless NYC from the reduction of their cigaret- 103
32 te tax from $1.50 to $0.50 per pack.
33 KK Make Quick Draw permanent and eliminate restrictions on 104
34 food sales; hours of operation and reduce the minimum
35 size of establishments that can offer Quick Draw.
36 LL Make the Empire State Film tax credit permanent and 105
37 increase the maximum annual credit to $30 million.
38 MM Establish a maximum bond limit to stay execution of a 106
39 judgment for litigation under appeal by tobacco
40 manufacturers and their affiliates.
41 NN Change the tax treatment of REITS and RICS under the 106
42 Bank Tax.
43 OO Authorize joint custody of the Abandoned Property Fund. 110
44 PP Reform the tobacco products and cigarette taxes to 113
45 remedy various compliance and enforcement problems.
46 QQ Clarify treatment of the taxability of certain income 118
47 for non-State residents.
48 RR Hold MTA harmless for certain corporate tax reductions. 118
49 SS Increase the minimum mark-ups under the Cigarette 120
50 Marketing Standards Act.
51 TT Limit amount that can be offset for the Earned Income 120
52 Tax Credit.