senate Bill S505

Authorizes N.Y. city to impose the city earnings tax on nonresidents and repeals chapter 5 of the laws of 1999

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 09 / Jan / 2013
    • REFERRED TO CITIES
  • 08 / Jan / 2014
    • REFERRED TO CITIES

Summary

Repeals chapter 5 of the laws 1999 and authorizes a city having a population of one million or more to impose the city earnings tax on nonresidents.

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Bill Details

See Assembly Version of this Bill:
A694
Versions:
S505
Legislative Cycle:
2013-2014
Current Committee:
Senate Cities
Law Section:
General City Law
Laws Affected:
Rpld Chap 5 of 1999; add Art 2-E §§25-m - 25-o, Gen City L; amd §1301, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2772, A1483
2009-2010: S4122, A5959
2007-2008: A7812

Sponsor Memo

BILL NUMBER:S505

TITLE OF BILL:
An act
to amend the general city law and the tax law, in relation to imposing
the earnings tax on nonresidents and to repeal chapter 5 of the laws of
1999, amending the tax law and the general city law
relating to the definition of nonresident for the purpose of
imposing the earnings tax on nonresidents and to repeal such tax in the
event of certain judicial determinations
relating thereto

PURPOSE:
This legislation would restore the New York City Commuter Tax which
was eliminated by Chapter 5 of the Laws of 1999.

SUMMARY OF PROVISIONS:
Section One of the bill repeals Chapter 5 of the Laws of 1999 which
amended the tax law and the general city law relating to the
definitions of nonresident for the purpose of imposing the earnings
tax on nonresidents.. Section Two creates Article 2-E of the General
City Law, providing for a city earnings tax on nonresidents.

EXISTING LAW:
Currently, there is no earnings tax on nonresidents who produce an
income within cities of over one million or more.

JUSTIFICATION:
The New York City Commuter Tax was established in 1966 as tax. on
wages and on self employment earnings. It applies to those who work
within the City limits, but are not residents of the City The rates
of this taxation were increased in 1971 and continued until the time
of its repeal in 1999. It was estimated that 450,000 New Yorkers were
paying the commuter tax which was providing New York City with $360
million dollars in revenue. The repeal could result in harming the
City's long term fiscal health. In 2007, if the commuter tax were
reinstated, the City of New York could raise an estimated $550
million for city fiscal year 2008.

There are several reasons why a commuter tax is needed:

* Many more people work in New York City than live there. A major
portion of City services and expenses go toward servicing the
commuter population. Even with the commuter tax, those commuting from
outside the City to work get a better deal than those living within
the City who commute to the outside.

* Currently, the City requires an income tax to support the level of
services provided and, in some cases, mandated. This income tax
provides a distortionary incentive favoring out-of-city labor, with
no local income tax, over City labor. Rather than introducing an
economic inefficiency in the labor market, the commuter tax actually
offsets a portion of a pre-existing distortion.

* The loss of commuter tax revenues makes the rest of the City's tax
reduction program more difficult. The City still has a relatively


high unemployment rate and the reduction of other business taxes
could help stimulate City employment to a greater degree than a
reduction in the
commuter tax. Other large cities impose commuter taxes and New York
City's was modest in comparison

LEGISLATIVE HISTORY:
2002: S.4373 Died in Senate Cities Committee
2003-2004: S.1219 Died in Senate Cities Committee
2005-2006: S.2576 Died in Senate Cities Committee

FISCAL IMPLICATIONS:
Substantial increase of revenue to the City of New York.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   505

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN  ACT  to  amend  the general city law and the tax law, in relation to
  imposing the earnings tax on nonresidents and to repeal chapter  5  of
  the laws of 1999, amending the tax law and the general city law relat-
  ing  to  the definition of nonresident for the purpose of imposing the
  earnings tax on nonresidents and to repeal such tax in  the  event  of
  certain judicial determinations relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Chapter 5 of the laws of 1999, amending the tax law and the
general city law relating to  the  definition  of  nonresident  for  the
purpose  of imposing the earnings tax on nonresidents and to repeal such
tax in the event of certain judicial determinations, is REPEALED.
  S 2. The general city law is amended by adding a new  article  2-E  to
read as follows:
                                ARTICLE 2-E
                    CITY EARNINGS TAX ON NONRESIDENTS
SECTION 25-M. AUTHORIZATION TO IMPOSE TAX.
        25-N. ADMINISTRATIVE PROVISIONS.
        25-O. DEPOSIT AND DISPOSITION OF REVENUES.
  S 25-M.  AUTHORIZATION TO IMPOSE TAX.  IN ADDITION TO ANY OTHER TAXES,
NOW  AUTHORIZED  BY  LAW, ANY CITY HAVING A POPULATION OF ONE MILLION OR
MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND  AMEND  LOCAL  LAWS
IMPOSING A TAX ON THE EARNINGS OF NONRESIDENTS OF SUCH CITY TO BE ADMIN-
ISTERED  IN THE MANNER PROVIDED FOR IN THIS ARTICLE BY THE ADMINISTRATOR
AS DEFINED IN SECTION ONE OF THE MODEL LOCAL LAW HEREINAFTER SET FORTH.
  THE TAX AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED  ONLY  IF  THE  CITY
IMPOSING  THE  TAX  AUTHORIZED BY THIS ARTICLE ALSO IMPOSES A TAX ON THE
PERSONAL INCOME OF ITS RESIDENTS.  THE RATES OF SUCH TAX  SHALL  BE  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02233-01-3

S. 505                              2

RATES  CONTAINED  IN  EITHER SECTION TWO OR TWO-A OF THE MODEL LOCAL LAW
AND SUCH RATES MAY BE REDUCED AND INCREASED,  PROVIDED  THAT  THE  RATES
SHALL  NOT BE FIXED HIGHER THAN THOSE CONTAINED IN SECTION TWO-A OF SUCH
MODEL LOCAL LAW.
  THE  TERMS  OF  SUCH  LOCAL LAW SHALL BE SUBSTANTIALLY THE SAME AS THE
FOLLOWING MODEL LOCAL LAW EXCEPT THAT THE APPENDIX AND THE SUPPLEMENT TO
THE APPENDIX IN SUCH LOCAL  LAW  MAY  BE  AMENDED  FOR  THE  PURPOSE  OF
CONFORMING  IT  WITH  THE  UNITED  STATES INTERNAL REVENUE CODE OR OTHER
FEDERAL LAWS RELATING TO TAXATION AS PRESENTLY IN EFFECT OR AS THEY  MAY
BE AMENDED.
                      EARNINGS TAX ON NONRESIDENTS
  SEC.  1.   MEANING OF TERMS.--AS USED IN THIS LOCAL LAW, THE FOLLOWING
TERMS SHALL MEAN AND INCLUDE:  (A)  "ADMINISTRATOR"  MEANS  THE  FINANCE
ADMINISTRATOR  OR OTHER FISCAL OFFICER OF THE CITY CHARGED WITH ADMINIS-
TRATION OF THE TAX ON EARNINGS OF NONRESIDENTS  IMPOSED  BY  THIS  LOCAL
LAW, EXCEPT WITH RESPECT TO TAXES IMPOSED FOR ANY TAXABLE YEAR BEGINNING
ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX, SUCH TERM SHALL
MEAN STATE TAX COMMISSION.
  (B) "CITY" MEANS THE CITY IMPOSING THE TAX.
  (C)  "PAYROLL  PERIOD"  AND  "EMPLOYER" SHALL MEAN THE SAME AS PAYROLL
PERIOD AND EMPLOYER AS DEFINED IN SUBSECTIONS (B)  AND  (D)  OF  SECTION
THIRTY-FOUR  HUNDRED  ONE  OF  THE INTERNAL REVENUE CODE, AND "EMPLOYEE"
SHALL ALSO INCLUDE ALL THOSE INCLUDED AS EMPLOYEES IN SUBSECTION (C)  OF
SUCH SECTION OF SUCH CODE.
  (D)  "WAGES"  SHALL MEAN WAGES AS DEFINED IN SUBSECTION (A) OF SECTION
THIRTY-FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE,  EXCEPT  THAT  (1)
WAGES  SHALL  NOT INCLUDE PAYMENTS FOR ACTIVE SERVICE AS A MEMBER OF THE
ARMED FORCES OF THE UNITED STATES AND SHALL NOT INCLUDE, IN THE CASE  OF
A  NONRESIDENT INDIVIDUAL OR PARTNER OF A PARTNERSHIP DOING AN INSURANCE
BUSINESS AS A MEMBER OF THE NEW YORK  INSURANCE  EXCHANGE  DESCRIBED  IN
SECTION  SIX  THOUSAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY ITEM OF
INCOME, GAIN, LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS SUCH  INDIVID-
UAL'S  DISTRIBUTIVE OR PRO RATA SHARE FOR FEDERAL INCOME TAX PURPOSES OR
WHICH SUCH INDIVIDUAL IS REQUIRED TO TAKE INTO  ACCOUNT  SEPARATELY  FOR
FEDERAL  INCOME  TAX PURPOSES AND (2) WAGES SHALL INCLUDE (I) THE AMOUNT
OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT  SYSTEM  OR  PENSION
FUND PICKED UP BY THE EMPLOYER PURSUANT TO SUBDIVISION F OF SECTION FIVE
HUNDRED  SEVENTEEN  OR  SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN OF
THE RETIREMENT AND SOCIAL SECURITY LAW OR  SECTION  13-225.1,  13-327.1,
13-125.1,  13-125.2  OR 13-521.1 OF TITLE THIRTEEN OF THE ADMINISTRATIVE
CODE OF THE CITY OF NEW YORK OR SUBDIVISION NINETEEN OF SECTION  TWENTY-
FIVE HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW, (II) THE AMOUNT DEDUCTED
OR  DEFERRED FROM AN EMPLOYEE'S SALARY UNDER A FLEXIBLE BENEFITS PROGRAM
ESTABLISHED PURSUANT TO SECTION TWENTY-THREE OF  THE  GENERAL  MUNICIPAL
LAW OR SECTION TWELVE HUNDRED TEN-A OF THE PUBLIC AUTHORITIES LAW, (III)
THE  AMOUNT  BY  WHICH  AN  EMPLOYEE'S SALARY IS REDUCED PURSUANT TO THE
PROVISIONS OF SUBDIVISION B OF SECTION 12-126.1  AND  SUBDIVISION  B  OF
SECTION 12-126.2 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND
(IV)  THE  AMOUNT  OF  MEMBER  OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT
SYSTEM OR PENSION FUND PICKED UP OR PAID BY THE EMPLOYER FOR MEMBERS  OF
THE  MANHATTAN  AND  BRONX SURFACE TRANSPORTATION AUTHORITY PENSION PLAN
AND TREATED AS EMPLOYER CONTRIBUTIONS IN DETERMINING INCOME  TAX  TREAT-
MENT UNDER SECTION 414(H) OF THE INTERNAL REVENUE CODE.
  (E)  "NET  EARNINGS  FROM  SELF-EMPLOYMENT" SHALL MEAN THE SAME AS NET
EARNINGS FROM SELF-EMPLOYMENT AS DEFINED IN SUBSECTION  (A)  OF  SECTION
FOURTEEN  HUNDRED  TWO  OF  THE  INTERNAL  REVENUE CODE, EXCEPT THAT THE

S. 505                              3

DEDUCTION FOR WAGES AND SALARIES PAID OR INCURRED FOR THE  TAXABLE  YEAR
WHICH  IS  NOT  ALLOWED PURSUANT TO SECTION TWO HUNDRED EIGHTY-C OF SUCH
CODE SHALL BE ALLOWED, AND EXCEPT THAT  AN  ESTATE  OR  TRUST  SHALL  BE
DEEMED  TO HAVE NET EARNINGS FROM SELF-EMPLOYMENT DETERMINED IN THE SAME
MANNER AS IF IT WERE AN INDIVIDUAL SUBJECT TO THE TAX ON SELF-EMPLOYMENT
INCOME IMPOSED BY SECTION FOURTEEN HUNDRED ONE OF THE  INTERNAL  REVENUE
CODE DIMINISHED BY (1) THE AMOUNT OF ANY DEDUCTION ALLOWED BY SUBSECTION
(C)  OF  SECTION  SIX HUNDRED FORTY-TWO OF THE INTERNAL REVENUE CODE AND
(2) THE DEDUCTIONS ALLOWED BY SECTIONS SIX  HUNDRED  FIFTY-ONE  AND  SIX
HUNDRED  SIXTY-ONE  OF  SAID  CODE  TO  THE  EXTENT  THAT THEY REPRESENT
DISTRIBUTIONS OR PAYMENTS TO A RESIDENT OF THE CITY.  HOWEVER, "TRADE OR
BUSINESS" AS USED IN SUBSECTION (A) OF SECTION FOURTEEN HUNDRED  TWO  OF
SUCH  CODE  SHALL  MEAN  THE  SAME  AS  TRADE  OR BUSINESS AS DEFINED IN
SUBSECTION (C) OF SECTION FOURTEEN HUNDRED TWO OF SUCH CODE, EXCEPT THAT
PARAGRAPHS (4), (5) AND (6) OF SUCH SUBSECTION SHALL NOT APPLY IN DETER-
MINING NET EARNINGS FROM SELF-EMPLOYMENT TAXABLE UNDER THIS  LOCAL  LAW.
PROVIDED  HOWEVER, IN THE CASE OF A NONRESIDENT INDIVIDUAL OR PARTNER OF
A PARTNERSHIP DOING AN INSURANCE BUSINESS DESCRIBED IN SECTION SIX THOU-
SAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY  ITEM  OF  INCOME,  GAIN,
LOSS  OR  DEDUCTION OF SUCH BUSINESS WHICH IS THE INDIVIDUAL'S DISTRIBU-
TIVE OR PRO RATA SHARE FOR FEDERAL INCOME  TAX  PURPOSES  OR  WHICH  THE
INDIVIDUAL  IS  REQUIRED  TO  TAKE  INTO  ACCOUNT SEPARATELY FOR FEDERAL
INCOME TAX PURPOSES SHALL NOT BE CONSIDERED TO  BE  "NET  EARNINGS  FROM
SELF-EMPLOYMENT".
  (F)  "TAXABLE YEAR" SHALL MEAN THE TAXPAYER'S TAXABLE YEAR FOR FEDERAL
INCOME TAX PURPOSES.
  (G) RESIDENT INDIVIDUAL.--A RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL:
  (1) WHO IS DOMICILED IN THE CITY, UNLESS (A) HE OR  SHE  MAINTAINS  NO
PERMANENT  PLACE  OF  ABODE  IN THE CITY, MAINTAINS A PERMANENT PLACE OF
ABODE ELSEWHERE, AND SPENDS IN THE AGGREGATE NOT MORE THAN  THIRTY  DAYS
OF  THE  TAXABLE  YEAR IN THE CITY, OR (B) (I) WITHIN ANY PERIOD OF FIVE
HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS PRESENT IN  A  FOREIGN
COUNTRY  OR  COUNTRIES  FOR  AT  LEAST FOUR HUNDRED FIFTY DAYS, AND (II)
DURING SUCH PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE  DAYS  HE  OR
SHE  IS  NOT  PRESENT IN THE CITY FOR MORE THAN NINETY DAYS AND DOES NOT
MAINTAIN A PERMANENT PLACE OF ABODE IN THE  CITY  AT  WHICH  HIS  SPOUSE
(UNLESS  SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE PRESENT
FOR MORE THAN NINETY DAYS, AND (III) DURING  ANY  PERIOD  OF  LESS  THAN
TWELVE MONTHS, WHICH WOULD BE TREATED AS A SEPARATE TAXABLE PERIOD BASED
ON  A  CHANGE  OF  RESIDENT STATUS, AND WHICH PERIOD IS CONTAINED WITHIN
SUCH PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS, HE OR  SHE  IS
PRESENT IN THE CITY FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN AMOUNT
WHICH  BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS CONTAINED IN
SUCH  PERIOD  OF  LESS  THAN  TWELVE  MONTHS  BEARS  TO   FIVE   HUNDRED
FORTY-EIGHT, OR
  (2)  WHO  IS NOT DOMICILED IN THE CITY BUT MAINTAINS A PERMANENT PLACE
OF ABODE IN THE CITY AND SPENDS IN THE AGGREGATE MORE THAN  ONE  HUNDRED
EIGHTY-THREE  DAYS OF THE TAXABLE YEAR IN THE CITY, UNLESS SUCH INDIVID-
UAL IS IN ACTIVE SERVICE IN THE ARMED FORCES OF THE UNITED STATES.
  (H) NONRESIDENT INDIVIDUAL.--A NONRESIDENT INDIVIDUAL MEANS  AN  INDI-
VIDUAL WHO IS NOT A RESIDENT.
  (I)  RESIDENT ESTATE OR TRUST.--A RESIDENT ESTATE OR TRUST MEANS:  (1)
THE ESTATE OF A DECEDENT WHO AT HIS OR HER DEATH WAS  DOMICILED  IN  THE
CITY,

S. 505                              4

  (2)  A  TRUST,  OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS-
FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH  WAS  DOMICILED  IN
THE CITY, OR
  (3) A TRUST, OR PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
  (A)  A  PERSON  DOMICILED  IN  THE  CITY AT THE TIME SUCH PROPERTY WAS
TRANSFERRED TO THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST  WAS  THEN
IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSEQUENTLY BECOME
IRREVOCABLE; OR
  (B)  A PERSON DOMICILED IN THE CITY AT THE TIME SUCH TRUST, OR PORTION
OF A TRUST, BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN  SUCH  PROPERTY
WAS  TRANSFERRED  TO  THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREVOCABLE.
FOR THE PURPOSES OF THE FOREGOING, A TRUST OR  PORTION  OF  A  TRUST  IS
REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY
FUTURE  TIME,  TO  REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTITUTES
SUCH TRUST OR PORTION OF A TRUST, AND A TRUST  OR  PORTION  OF  A  TRUST
BECOMES  IRREVOCABLE  WHEN  THE POSSIBILITY THAT SUCH POWER MAY BE EXER-
CISED HAS BEEN TERMINATED.
  (J) NONRESIDENT ESTATE OR TRUST.--A NONRESIDENT ESTATE OR TRUST  MEANS
AN ESTATE OR TRUST WHICH IS NOT A RESIDENT.
  (K)  UNLESS  A DIFFERENT MEANING IS CLEARLY REQUIRED, ANY TERM USED IN
THIS LOCAL LAW SHALL HAVE THE SAME MEANING AS WHEN USED IN A  COMPARABLE
CONTEXT  IN  THE LAWS OF THE UNITED STATES RELATING TO FEDERAL TAXES BUT
SUCH MEANING  SHALL  BE  SUBJECT  TO  THE  EXCEPTIONS  OR  MODIFICATIONS
PRESCRIBED  IN  OR  PURSUANT TO THE LAWS OF THIS STATE. ANY REFERENCE IN
THIS LOCAL LAW TO THE INTERNAL REVENUE CODE, THE INTERNAL  REVENUE  CODE
OF NINETEEN HUNDRED EIGHTY-SIX OR TO THE LAWS OF THE UNITED STATES SHALL
MEAN  THE  PROVISIONS  OF  THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED
EIGHTY-SIX (UNLESS A REFERENCE TO THE INTERNAL REVENUE CODE OF  NINETEEN
HUNDRED  FIFTY-FOUR  IS  CLEARLY  INTENDED), AND AMENDMENTS THERETO, AND
OTHER PROVISIONS OF THE LAWS OF THE UNITED STATES  RELATING  TO  FEDERAL
TAXES,  AS  THE  SAME  ARE INCLUDED IN THIS LOCAL LAW AS AN APPENDIX AND
SUPPLEMENT TO THE APPENDIX OR AS INCLUDED BY REFERENCE  TO  AN  APPENDIX
AND  SUPPLEMENT TO THE APPENDIX OF A TITLE ENACTED BY THE SAME LOCAL LAW
AS ENACTS THIS LOCAL LAW. (THE QUOTATION OF THE AFORESAID  LAWS  OF  THE
UNITED  STATES  IS INTENDED TO MAKE THEM A PART OF THIS LOCAL LAW AND TO
AVOID CONSTITUTIONAL UNCERTAINTIES WHICH MIGHT RESULT IF SUCH LAWS  WERE
MERELY  INCORPORATED  BY  REFERENCE. THE QUOTATION OF A PROVISION OF THE
FEDERAL INTERNAL REVENUE CODE OR OF ANY OTHER LAW OF THE  UNITED  STATES
SHALL  NOT NECESSARILY MEAN THAT IT IS APPLICABLE TO OR HAS RELEVANCE TO
THIS LOCAL LAW.)
  (L) THE TERM "PARTNERSHIP" SHALL INCLUDE, UNLESS A  DIFFERENT  MEANING
IS  CLEARLY REQUIRED, A SUBCHAPTER K LIMITED LIABILITY COMPANY. THE TERM
"SUBCHAPTER K LIMITED LIABILITY COMPANY" SHALL MEAN A LIMITED  LIABILITY
COMPANY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES.
  THE  TERM "LIMITED LIABILITY COMPANY" MEANS A DOMESTIC LIMITED LIABIL-
ITY COMPANY OR A  FOREIGN  LIMITED  LIABILITY  COMPANY,  AS  DEFINED  IN
SECTION  ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, A LIMITED
LIABILITY INVESTMENT COMPANY FORMED PURSUANT  TO  SECTION  FIVE  HUNDRED
SEVEN  OF  THE  BANKING LAW, OR A LIMITED LIABILITY TRUST COMPANY FORMED
PURSUANT TO SECTION ONE HUNDRED TWO-A OF THE BANKING LAW.
  SEC. 2.  PERSONS SUBJECT TO TAX.--(A)   IMPOSITION OF TAX.--A  TAX  IS
HEREBY  IMPOSED  FOR  EACH  TAXABLE  YEAR ENDING ON OR AFTER JULY FIRST,
NINETEEN HUNDRED SIXTY-SIX ON THE WAGES EARNED, AND  NET  EARNINGS  FROM
SELF-EMPLOYMENT,  WITHIN  THE  CITY,  OF  EVERY  NONRESIDENT INDIVIDUAL,
ESTATE AND TRUST WHICH SHALL COMPRISE:
  (1)  A TAX AT THE RATE OF ONE-FOURTH OF ONE PERCENT ON ALL WAGES.

S. 505                              5

  (2)  A TAX AT THE RATE OF THREE-EIGHTHS OF  ONE  PERCENT  ON  ALL  NET
EARNINGS FROM SELF-EMPLOYMENT.
  (B)   EXCLUSION.--(1)   IN COMPUTING THE AMOUNT OF WAGES AND NET EARN-
INGS FROM SELF-EMPLOYMENT TAXABLE UNDER SUBSECTION (A), THERE  SHALL  BE
ALLOWED  AN  EXCLUSION  AGAINST THE TOTAL OF WAGES AND NET EARNINGS FROM
SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
  TOTAL OF WAGES AND NET EARNINGS
  FROM SELF-EMPLOYMENT                 EXCLUSION ALLOWABLE
                   NOT OVER $10,000               $3,000
  OVER $10,000 BUT NOT OVER $20,000               $2,000
  OVER $20,000 BUT NOT OVER $30,000               $1,000
  OVER $30,000                                      NONE
  (2)  THE EXCLUSION ALLOWABLE SHALL BE APPLIED PRO RATA  AGAINST  WAGES
AND NET EARNINGS FROM SELF-EMPLOYMENT.
  (3)    FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE EXCLUSION ALLOW-
ABLE SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
  (C)  LIMITATION.--IN NO EVENT SHALL A TAXPAYER BE SUBJECT TO  THE  TAX
UNDER  THIS  LOCAL  LAW  IN  AN  AMOUNT  GREATER THAN HE OR SHE WOULD BE
REQUIRED TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT  TO
A  TAX  ON  PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW.
  SEC.  2-A. PERSONS SUBJECT TO TAX.--(A) IMPOSITION OF TAX.--(1) A  TAX
IS  HEREBY  IMPOSED FOR EACH TAXABLE YEAR ENDING ON OR AFTER JULY FIRST,
NINETEEN HUNDRED SIXTY-SIX AND ON OR BEFORE DECEMBER THIRTY-FIRST, NINE-
TEEN HUNDRED SEVENTY AND FOR EACH TAXABLE YEAR BEGINNING AFTER  DECEMBER
THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE, ON THE WAGES EARNED, AND NET
EARNINGS  FROM  SELF-EMPLOYMENT,  WITHIN  THE CITY, OF EVERY NONRESIDENT
INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
  (I) A TAX AT THE RATE OF ONE-FOURTH OF ONE PERCENT ON ALL WAGES.
  (II) A TAX AT THE RATE OF THREE-EIGHTHS OF  ONE  PERCENT  ON  ALL  NET
EARNINGS FROM SELF-EMPLOYMENT.
  (2)  FOR  EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, NINE-
TEEN HUNDRED SEVENTY-ONE AND ENDING ON OR BEFORE DECEMBER  THIRTY-FIRST,
NINETEEN  HUNDRED  NINETY-NINE,  A  TAX  IS  HEREBY IMPOSED ON THE WAGES
EARNED, AND NET EARNINGS FROM SELF-EMPLOYMENT, WITHIN THE CITY, OF EVERY
NONRESIDENT INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
  (I) A TAX AT THE RATE OF FORTY-FIVE HUNDREDTHS OF ONE PERCENT  ON  ALL
WAGES.
  (II)  A TAX AT THE RATE OF SIXTY-FIVE HUNDREDTHS OF ONE PERCENT ON ALL
NET EARNINGS FROM SELF-EMPLOYMENT.
  (3) FOR EACH TAXABLE YEAR BEGINNING IN NINETEEN  HUNDRED  SEVENTY  AND
ENDING  IN  NINETEEN  HUNDRED  SEVENTY-ONE, TWO TENTATIVE TAXES SHALL BE
COMPUTED, THE FIRST AS PROVIDED IN  PARAGRAPH  (1)  AND  THE  SECOND  AS
PROVIDED  IN  PARAGRAPH (2), AND THE TAX FOR EACH SUCH YEAR SHALL BE THE
SUM OF THAT PROPORTION OF EACH TENTATIVE TAX WHICH THE NUMBER OF DAYS IN
NINETEEN HUNDRED SEVENTY AND THE NUMBER  OF  DAYS  IN  NINETEEN  HUNDRED
SEVENTY-ONE,  RESPECTIVELY,  BEARS  TO  THE NUMBER OF DAYS IN THE ENTIRE
TAXABLE YEAR.
  (4) FOR EACH TAXABLE YEAR BEGINNING IN  NINETEEN  HUNDRED  NINETY-NINE
AND  ENDING  IN TWO THOUSAND, TWO TENTATIVE TAXES SHALL BE COMPUTED, THE
FIRST AS PROVIDED IN PARAGRAPH (2) AND THE SECOND AS PROVIDED  IN  PARA-
GRAPH  (1),  AND  THE  TAX  FOR  EACH SUCH YEAR SHALL BE THE SUM OF THAT
PROPORTION OF EACH TENTATIVE TAX WHICH THE NUMBER OF  DAYS  IN  NINETEEN
HUNDRED  NINETY-NINE AND THE NUMBER OF DAYS IN TWO THOUSAND, RESPECTIVE-
LY, BEARS TO THE NUMBER OF DAYS IN THE ENTIRE TAXABLE YEAR.

S. 505                              6

  (B) EXCLUSION.--(1) IN COMPUTING THE AMOUNT OF WAGES AND NET  EARNINGS
FROM  SELF-EMPLOYMENT  TAXABLE  UNDER  SUBSECTION  (A),  THERE  SHALL BE
ALLOWED AN EXCLUSION AGAINST THE TOTAL OF WAGES AND  NET  EARNINGS  FROM
SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
  TOTAL OF WAGES AND NET EARNINGS
  FROM SELF-EMPLOYMENT             EXCLUSION ALLOWABLE
                  NOT OVER $10,000           $3,000
  OVER $10,000 BUT NOT OVER $20,000           $2,000
  OVER $20,000 BUT NOT OVER $30,000           $1,000
  OVER                      $30,000           NONE
  (2)  THE  EXCLUSION  ALLOWABLE SHALL BE APPLIED PRO RATA AGAINST WAGES
AND NET EARNINGS FROM SELF-EMPLOYMENT.
  (3) FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE EXCLUSION ALLOWABLE
SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
  (C) LIMITATION.--IN NO EVENT SHALL A TAXPAYER BE SUBJECT  TO  THE  TAX
UNDER  THIS  LOCAL  LAW  IN  AN  AMOUNT  GREATER THAN HE OR SHE WOULD BE
REQUIRED TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT  TO
A  TAX  ON  PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW OR THE TAX LAW.
  SEC. 3.  TAXABLE YEARS TO WHICH TAX IMPOSED BY THIS LOCAL LAW APPLIES;
TAX FOR TAXABLE YEARS BEGINNING PRIOR TO AND ENDING  AFTER  JULY  FIRST,
NINETEEN  HUNDRED  SIXTY-SIX.--(A)    GENERAL.-- THE TAX IMPOSED BY THIS
LOCAL LAW IS IMPOSED FOR EACH TAXABLE YEAR BEGINNING WITH TAXABLE  YEARS
ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.
  (B)  ALTERNATE METHODS FOR DETERMINING TAX FOR TAXABLE YEARS ENDING ON
OR  AFTER  JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.-- (1) THE TAX FOR ANY
TAXABLE YEAR ENDING ON OR AFTER JULY FIRST, NINETEEN  HUNDRED  SIXTY-SIX
AND  ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, SHALL BE
THE SAME PART OF THE TAX WHICH WOULD HAVE BEEN IMPOSED  HAD  THIS  LOCAL
LAW  BEEN  IN EFFECT FOR THE ENTIRE TAXABLE YEAR AS THE NUMBER OF MONTHS
(OR MAJOR PORTIONS THEREOF) OF THE TAXABLE  YEAR  OCCURRING  AFTER  JULY
FIRST,  NINETEEN  HUNDRED SIXTY-SIX IS OF THE NUMBER OF MONTHS (OR MAJOR
PORTIONS THEREOF) IN THE TAXABLE YEAR.
  (2) (I)  IN LIEU OF THE METHOD OF COMPUTATION  OF  TAX  PRESCRIBED  IN
PARAGRAPH  (1), IF THE TAXPAYER MAINTAINS ADEQUATE RECORDS FOR ANY TAXA-
BLE YEAR ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED  SIXTY-SIX  AND
ON  OR  BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, THE TAX FOR
SUCH TAXABLE YEAR, AT THE ELECTION OF THE TAXPAYER, MAY BE  COMPUTED  ON
THE  BASIS OF THE WAGES WHICH THE TAXPAYER WOULD HAVE REPORTED HAD HE OR
SHE FILED A FEDERAL INCOME TAX RETURN FOR A TAXABLE YEAR BEGINNING  JULY
FIRST,  NINETEEN  HUNDRED  SIXTY-SIX  AND  ENDING WITH THE CLOSE OF SUCH
TAXABLE YEAR ENDING  ON  OR  BEFORE  JUNE  THIRTIETH,  NINETEEN  HUNDRED
SIXTY-SEVEN, AND THE NET EARNINGS FROM SELF-EMPLOYMENT WHICH THE TAXPAY-
ER  WOULD  HAVE  REPORTED  FOR FEDERAL INCOME TAX PURPOSES HAD HE OR SHE
FILED A SELF-EMPLOYMENT TAX RETURN FOR A  TAXABLE  YEAR  BEGINNING  JULY
FIRST,  NINETEEN  HUNDRED  SIXTY-SIX  AND  ENDING WITH THE CLOSE OF SUCH
TAXABLE YEAR ENDING  ON  OR  BEFORE  JUNE  THIRTIETH,  NINETEEN  HUNDRED
SIXTY-SEVEN.
  (II)  FOR  PURPOSES  OF THIS PARAGRAPH, THE EXCLUSIONS ALLOWABLE UNDER
SECTION TWO SHALL BE REDUCED BY A FRACTION THE NUMERATOR OF WHICH IS THE
NUMBER OF MONTHS (OR MAJOR PORTIONS THEREOF) OF THE TAXABLE YEAR  OCCUR-
RING  BEFORE  JULY FIRST, NINETEEN HUNDRED SIXTY-SIX AND THE DENOMINATOR
OF WHICH IS THE NUMBER OF MONTHS (OR  MAJOR  PORTIONS  THEREOF)  IN  THE
TAXABLE  YEAR.    EXCEPT AS PROVIDED IN THIS PARAGRAPH, THE TAX FOR SUCH
PERIOD ENDING ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN,

S. 505                              7

SHALL BE COMPUTED IN ACCORDANCE WITH THE OTHER PROVISIONS OF THIS  LOCAL
LAW.
  SEC. 4.  ALLOCATION TO THE CITY.--(A)  GENERAL.-- IF NET EARNINGS FROM
SELF-EMPLOYMENT  ARE  DERIVED  FROM SERVICES PERFORMED, OR FROM SOURCES,
WITHIN AND WITHOUT THE CITY, THERE SHALL BE ALLOCATED TO THE CITY A FAIR
AND EQUITABLE PORTION OF SUCH EARNINGS.
  (B)  ALLOCATION OF NET EARNINGS FROM SELF-EMPLOYMENT.--(1)   PLACE  OF
BUSINESS.--  IF  A TAXPAYER HAS NO REGULAR PLACE OF BUSINESS OUTSIDE THE
CITY ALL OF HIS NET EARNINGS FROM SELF-EMPLOYMENT SHALL BE ALLOCATED  TO
THE CITY.
  (2)    ALLOCATION  BY  TAXPAYER'S BOOKS.-- THE PORTION OF NET EARNINGS
FROM SELF-EMPLOYMENT ALLOCABLE TO THE CITY MAY BE  DETERMINED  FROM  THE
BOOKS AND RECORDS OF A TAXPAYER'S TRADE OR BUSINESS, IF THE METHODS USED
IN  KEEPING  SUCH  BOOKS  AND  THE  ACCURACY THEREOF ARE APPROVED BY THE
ADMINISTRATOR AS FAIRLY  AND  EQUITABLY  REFLECTING  NET  EARNINGS  FROM
SELF-EMPLOYMENT WITHIN THE CITY.
  (3)    ALLOCATION BY FORMULA.-- IF PARAGRAPH (2) DOES NOT APPLY TO THE
TAXPAYER, THE PORTION OF NET EARNINGS FROM SELF-EMPLOYMENT ALLOCABLE  TO
THE  CITY SHALL BE DETERMINED BY MULTIPLYING (A) NET EARNINGS FROM SELF-
EMPLOYMENT WITHIN AND WITHOUT THE  CITY,  BY  (B)  THE  AVERAGE  OF  THE
FOLLOWING THREE PERCENTAGES:
  (I)  PROPERTY PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
AVERAGE  OF  THE VALUE, AT THE BEGINNING AND END OF THE TAXABLE YEAR, OF
REAL AND TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM
SELF-EMPLOYMENT AND LOCATED WITHIN THE CITY, BY (B) THE AVERAGE  OF  THE
VALUE,  AT  THE  BEGINNING  AND END OF THE TAXABLE YEAR, OF ALL REAL AND
TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM SELF-EM-
PLOYMENT AND LOCATED BOTH  WITHIN  AND  WITHOUT  THE  CITY.    FOR  THIS
PURPOSE,  REAL  PROPERTY  SHALL  INCLUDE REAL PROPERTY, WHETHER OWNED OR
RENTED.
  (II)  PAYROLL PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE  COMPENSATION  PAID  OR
INCURRED DURING THE TAXABLE YEAR TO EMPLOYEES IN CONNECTION WITH THE NET
EARNINGS  FROM  SELF-EMPLOYMENT DERIVED FROM A TRADE OR BUSINESS CARRIED
ON WITHIN THE CITY, BY (B) THE TOTAL OF ALL WAGES,  SALARIES  AND  OTHER
PERSONAL  SERVICE  COMPENSATION PAID OR INCURRED DURING THE TAXABLE YEAR
TO EMPLOYEES IN CONNECTION WITH THE NET  EARNINGS  FROM  SELF-EMPLOYMENT
DERIVED  FROM A TRADE OR BUSINESS CARRIED ON BOTH WITHIN AND WITHOUT THE
CITY.
  (III)  GROSS INCOME PERCENTAGE.  THE PERCENTAGE COMPUTED  BY  DIVIDING
(A)  THE  GROSS SALES OR CHARGES FOR SERVICES PERFORMED BY OR THROUGH AN
AGENCY LOCATED WITHIN THE CITY, BY (B) THE TOTAL OF ALL GROSS  SALES  OR
CHARGES  FOR  SERVICES PERFORMED WITHIN AND WITHOUT THE CITY.  THE SALES
OR CHARGES TO BE ALLOCATED TO THE CITY SHALL INCLUDE ALL  SALES  NEGOTI-
ATED OR CONSUMMATED, AND CHARGES FOR SERVICES PERFORMED, BY AN EMPLOYEE,
AGENT,  AGENCY  OR INDEPENDENT CONTRACTOR CHIEFLY SITUATED AT, CONNECTED
BY CONTRACT OR OTHERWISE WITH, OR SENT OUT FROM, OFFICES OR OTHER  AGEN-
CIES  OF  THE  TRADE  OR  BUSINESS FROM WHICH A TAXPAYER IS DERIVING NET
EARNINGS FROM SELF-EMPLOYMENT, SITUATED WITHIN THE CITY.
  (C) OTHER ALLOCATION METHODS.--  THE  PORTION  OF  NET  EARNINGS  FROM
SELF-EMPLOYMENT  ALLOCABLE TO THE CITY SHALL BE DETERMINED IN ACCORDANCE
WITH RULES AND REGULATIONS OF THE ADMINISTRATOR IF IT  SHALL  APPEAR  TO
THE  ADMINISTRATOR  THAT  THE  NET EARNINGS FROM SELF-EMPLOYMENT ARE NOT
FAIRLY AND EQUITABLY REFLECTED UNDER THE PROVISIONS OF SUBSECTION (B).
  (D)  SPECIAL RULES FOR REAL ESTATE.-- INCOME AND DEDUCTIONS  FROM  THE
RENTAL  OF  REAL  PROPERTY  AND GAIN AND LOSS FROM THE SALE, EXCHANGE OR

S. 505                              8

OTHER DISPOSITION OF REAL PROPERTY, SHALL NOT BE SUBJECT  TO  ALLOCATION
UNDER SUBSECTION (B) OR (C), BUT SHALL BE CONSIDERED AS ENTIRELY DERIVED
FROM OR CONNECTED WITH THE PLACE IN WHICH SUCH PROPERTY IS LOCATED.
  SEC. 5.  ACCOUNTING PERIODS AND METHODS.--(A)  ACCOUNTING PERIODS.-- A
TAXPAYER'S  TAXABLE  YEAR  UNDER THIS LOCAL LAW SHALL BE THE SAME AS HIS
TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
  (B)  CHANGE OF ACCOUNTING PERIODS.--IF A TAXPAYER'S  TAXABLE  YEAR  IS
CHANGED  FOR  FEDERAL  INCOME  TAX PURPOSES, HIS OR HER TAXABLE YEAR FOR
PURPOSES OF THIS LOCAL LAW SHALL BE SIMILARLY CHANGED.    IF  A  TAXABLE
PERIOD OF LESS THAN TWELVE MONTHS RESULTS FROM A CHANGE OF TAXABLE YEAR,
THE  EXCLUSION  ALLOWABLE  UNDER SECTION TWO OR TWO-A  OF THIS LOCAL LAW
SHALL BE PRORATED UNDER REGULATIONS OF THE ADMINISTRATOR.
  (C)  ACCOUNTING METHODS.--A TAXPAYER'S METHOD OF ACCOUNTING UNDER THIS
SECTION SHALL BE THE SAME AS HIS OR HER METHOD OF ACCOUNTING FOR FEDERAL
INCOME TAX PURPOSES.  IN THE ABSENCE OF ANY  METHOD  OF  ACCOUNTING  FOR
FEDERAL  INCOME  TAX  PURPOSES, NET EARNINGS FROM SELF-EMPLOYMENT WITHIN
THE CITY SHALL BE COMPUTED UNDER SUCH METHOD AS IN THE  OPINION  OF  THE
ADMINISTRATOR  CLEARLY REFLECTS NET EARNINGS FROM SELF-EMPLOYMENT WITHIN
THE CITY.
  (D)  CHANGE OF ACCOUNTING METHODS.--(1)   IF A  TAXPAYER'S  METHOD  OF
ACCOUNTING  IS  CHANGED  FOR  FEDERAL INCOME TAX PURPOSES, HIS METHOD OF
ACCOUNTING FOR PURPOSES OF THIS LOCAL LAW SHALL BE SIMILARLY CHANGED.
  (2)  IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED, OTHER THAN  FROM
AN  ACCRUAL  TO  AN INSTALLMENT METHOD, ANY ADDITIONAL TAX WHICH RESULTS
FROM ADJUSTMENTS DETERMINED TO BE NECESSARY  SOLELY  BY  REASON  OF  THE
CHANGE  SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLO-
CATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE  PRECEDING
TAXABLE  YEARS,  BEGINNING AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX,
NOT IN EXCESS OF TWO, DURING WHICH  THE  TAXPAYER  USED  THE  METHOD  OF
ACCOUNTING FROM WHICH THE CHANGE IS MADE.
  (3)    IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED FROM AN ACCRUAL
TO AN INSTALLMENT METHOD, ANY ADDITIONAL TAX FOR THE YEAR OF SUCH CHANGE
OF METHOD AND FOR ANY SUBSEQUENT  YEAR  WHICH  IS  ATTRIBUTABLE  TO  THE
RECEIPT  OF INSTALLMENT PAYMENTS PROPERLY ACCRUED IN A PRIOR YEAR, SHALL
BE REDUCED BY THE PORTION OF TAX FOR ANY PRIOR TAXABLE YEAR ATTRIBUTABLE
TO THE ACCRUAL OF SUCH INSTALLMENT PAYMENTS, IN  ACCORDANCE  WITH  REGU-
LATIONS OF THE ADMINISTRATOR.
  SEC. 8.  WITHHOLDING OF TAX ON WAGES.--GENERAL.--ON OR AFTER THE FIRST
PAYROLL  PERIOD  BEGINNING FORTY-FIVE DAYS AFTER THE DATE THIS LOCAL LAW
BECOMES EFFECTIVE EVERY EMPLOYER MAINTAINING AN  OFFICE  OR  TRANSACTING
BUSINESS WITHIN THIS STATE AND MAKING PAYMENT OF ANY WAGES TAXABLE UNDER
THIS  LOCAL  LAW  SHALL  DEDUCT  AND  WITHHOLD  FROM SUCH WAGES FOR EACH
PAYROLL PERIOD A TAX COMPUTED IN SUCH MANNER AS TO  RESULT,  SO  FAR  AS
PRACTICABLE, IN WITHHOLDING FROM THE EMPLOYEE'S WAGES DURING EACH CALEN-
DAR  YEAR AN AMOUNT SUBSTANTIALLY EQUIVALENT TO THE TAX REASONABLY ESTI-
MATED TO BE DUE FROM THE EMPLOYEE UNDER THIS LOCAL LAW.   THE METHOD  OF
DETERMINING THE AMOUNT TO BE WITHHELD SHALL BE PRESCRIBED BY REGULATIONS
OF THE ADMINISTRATOR.
  SEC.  8-A.  WITHHOLDING OF TAX ON WAGES FOR TAXABLE PERIODS COMMENCING
ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX.--THE PROVISIONS
CONTAINED IN SECTIONS EIGHT, NINE, TEN, ELEVEN, TWELVE AND  THIRTEEN  OF
THIS  LOCAL  LAW  SHALL  NOT  BE APPLICABLE TO TAXES IMPOSED FOR TAXABLE
PERIODS COMMENCING ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED  SEVENTY-
SIX  PROVIDED  HOWEVER,  WITH  RESPECT  TO  SUCH PERIODS, THE PROVISIONS
CONTAINED IN PART FIVE OF ARTICLE TWENTY-TWO OF THE  TAX  LAW  SHALL  BE
APPLICABLE  WITH  THE  SAME  FORCE AND EFFECT AS IF THOSE PROVISIONS HAD

S. 505                              9

BEEN INCORPORATED IN FULL IN THIS SECTION EXCEPT WHERE INCONSISTENT WITH
THE PROVISIONS OF THIS ARTICLE, EXCEPT THAT THE TERM "AGGREGATE  AMOUNT"
CONTAINED  IN PARAGRAPHS ONE, TWO AND THREE OF SUBSECTION (A) OF SECTION
SIX  HUNDRED SEVENTY-FOUR OF THE TAX LAW SHALL MEAN THE AGGREGATE OF THE
AGGREGATE AMOUNTS OF NEW YORK STATE PERSONAL INCOME TAX,  CITY  EARNINGS
TAX ON NONRESIDENTS AND CITY PERSONAL INCOME TAX ON RESIDENTS AUTHORIZED
PURSUANT  TO  ARTICLE  THIRTY OF THE TAX LAW REQUIRED TO BE DEDUCTED AND
WITHHELD AND PROVIDED, HOWEVER, THAT THE PROVISIONS OF  SUCH  PARAGRAPHS
SHALL  NOT BE APPLICABLE TO EMPLOYER'S RETURNS REQUIRED TO BE FILED WITH
RESPECT TO TAXES REQUIRED TO BE DEDUCTED AND WITHHELD DURING THE  CALEN-
DAR  YEAR  NINETEEN  HUNDRED  SEVENTY-SIX,  BUT  SUCH  RETURNS  SHALL BE
REQUIRED TO BE FILED WITH THE COMMISSIONER OF TAXATION  AND  FINANCE  AT
THE  TIMES  AND  IN THE MANNER PROVIDED FOR IN SUBSECTION (A) OF SECTION
ELEVEN OF THIS LOCAL  LAW,  EXCEPT  THE  TERM  "ADMINISTRATOR"  IN  SUCH
SUBSECTION SHALL BE READ AS "COMMISSIONER OF TAXATION AND FINANCE."
  SEC.   9. INFORMATION STATEMENT FOR EMPLOYEE.--EVERY EMPLOYER REQUIRED
TO DEDUCT AND WITHHOLD TAX UNDER THIS LOCAL LAW FROM  THE  WAGES  OF  AN
EMPLOYEE,  SHALL  FURNISH  TO EACH SUCH EMPLOYEE IN RESPECT OF THE WAGES
PAID BY SUCH EMPLOYER TO SUCH EMPLOYEE DURING THE CALENDAR  YEAR  ON  OR
BEFORE  FEBRUARY  FIFTEENTH  OF  THE  SUCCEEDING YEAR, OR, IF HIS OR HER
EMPLOYMENT IS TERMINATED BEFORE THE CLOSE OF SUCH CALENDAR YEAR,  WITHIN
THIRTY  DAYS  FROM  THE  DATE  ON WHICH THE LAST PAYMENT OF THE WAGES IS
MADE, A WRITTEN STATEMENT AS PRESCRIBED BY THE ADMINISTRATOR SHOWING THE
TOTAL AMOUNT OF WAGES PAID BY THE EMPLOYER TO THE EMPLOYEE,  THE  AMOUNT
OF  WAGES  PAID  FOR  SERVICES  PERFORMED  WITHIN  THE  CITY, THE AMOUNT
DEDUCTED AND WITHHELD AS TAX, AND SUCH OTHER INFORMATION AS THE ADMINIS-
TRATOR MAY PRESCRIBE.
  SEC. 10.  CREDIT FOR TAX WITHHELD.--WAGES UPON WHICH TAX  IS  REQUIRED
TO  BE WITHHELD SHALL BE TAXABLE UNDER THIS LOCAL LAW AS IF NO WITHHOLD-
ING WERE REQUIRED, BUT ANY AMOUNT OF TAX ACTUALLY DEDUCTED AND  WITHHELD
UNDER  THIS  LOCAL LAW IN ANY CALENDAR YEAR SHALL BE DEEMED TO HAVE BEEN
PAID ON BEHALF OF THE EMPLOYEE FROM WHOM  WITHHELD,  AND  SUCH  EMPLOYEE
SHALL  BE  CREDITED WITH HAVING PAID THAT AMOUNT OF TAX IN SUCH CALENDAR
YEAR.  FOR A TAXABLE YEAR OF LESS THAN TWELVE MONTHS, THE  CREDIT  SHALL
BE MADE UNDER REGULATIONS OF THE ADMINISTRATOR.
  SEC. 11.  EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES.--(A) GENER-
AL.--ON  OR  AFTER  THE  FIRST  PAYROLL PERIOD BEGINNING FORTY-FIVE DAYS
AFTER THE EFFECTIVE DATE OF THIS LOCAL LAW, EVERY EMPLOYER  REQUIRED  TO
DEDUCT  AND  WITHHOLD  TAX UNDER THIS LOCAL LAW SHALL, FOR EACH CALENDAR
MONTH, ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING  THE  CLOSE
OF  SUCH  CALENDAR  MONTH FILE A WITHHOLDING RETURN AS PRESCRIBED BY THE
ADMINISTRATOR AND PAY OVER TO THE ADMINISTRATOR  OR  TO  THE  DEPOSITORY
DESIGNATED  BY  THE  ADMINISTRATOR, THE TAXES SO REQUIRED TO BE DEDUCTED
AND WITHHELD, EXCEPT THAT FOR THE MONTH OF  DECEMBER  IN  ANY  YEAR  THE
RETURNS  SHALL  BE  FILED  AND  THE  TAXES  PAID  ON  OR  BEFORE JANUARY
THIRTY-FIRST OF  THE  SUCCEEDING  YEAR.    WHERE  THE  AGGREGATE  AMOUNT
REQUIRED  TO  BE  DEDUCTED AND WITHHELD BY ANY EMPLOYER UNDER THIS LOCAL
LAW AND UNDER ANY LOCAL LAW IMPOSING A TAX ON PERSONAL INCOME  OF  RESI-
DENTS  OF  THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORITY GRANTED BY
THE GENERAL CITY LAW IS LESS THAN  TWENTY-FIVE  DOLLARS  IN  A  CALENDAR
MONTH  AND THE AGGREGATE OF SUCH TAXES FOR THE SEMI-ANNUAL PERIOD ENDING
ON JUNE THIRTIETH AND DECEMBER THIRTY-FIRST CAN REASONABLY  BE  EXPECTED
TO  BE  LESS  THAN  ONE HUNDRED FIFTY DOLLARS, THE ADMINISTRATOR MAY, BY
REGULATION, PERMIT AN EMPLOYER TO FILE A RETURN ON OR BEFORE JULY  THIR-
TY-FIRST  FOR  THE SEMI-ANNUAL PERIOD ENDING ON JUNE THIRTIETH AND ON OR
BEFORE JANUARY THIRTY-FIRST FOR THE SEMI-ANNUAL PERIOD ENDING ON  DECEM-

S. 505                             10

BER  THIRTY-FIRST.    THE  ADMINISTRATOR MAY, IF HE OR SHE BELIEVES SUCH
ACTION NECESSARY FOR THE PROTECTION OF THE REVENUES, REQUIRE ANY EMPLOY-
ER TO MAKE A RETURN AND PAY TO HIM THE TAX DEDUCTED AND WITHHELD AT  ANY
TIME,  OR  FROM  TIME  TO  TIME.    WHERE THE AMOUNT OF WAGES PAID BY AN
EMPLOYER IS NOT SUFFICIENT UNDER THIS LOCAL LAW AND UNDER ANY LOCAL  LAW
IMPOSING  A  TAX  ON PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED BY
THE CITY PURSUANT TO AUTHORITY  GRANTED  BY  THE  GENERAL  CITY  LAW  TO
REQUIRE  THE  WITHHOLDING  OF  TAX  FROM  THE WAGES OF ANY OF HIS OR HER
EMPLOYEES, THE ADMINISTRATOR MAY, BY REGULATION, PERMIT SUCH EMPLOYER TO
FILE AN ANNUAL RETURN ON OR BEFORE FEBRUARY TWENTY-EIGHTH OF THE FOLLOW-
ING CALENDAR YEAR.
  (B)  COMBINED RETURNS.--THE ADMINISTRATOR MAY  BY  REGULATION  PROVIDE
FOR  THE FILING OF ONE RETURN WHICH SHALL INCLUDE THE RETURN REQUIRED TO
BE FILED  UNDER  THIS  SECTION,  TOGETHER  WITH  THE  EMPLOYER'S  RETURN
REQUIRED  TO  BE  FILED  UNDER  ANY LOCAL LAW IMPOSING A TAX ON PERSONAL
INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORI-
TY GRANTED BY THE GENERAL CITY LAW.
  (C)   DEPOSIT IN TRUST  FOR  CITY.--WHENEVER  ANY  EMPLOYER  FAILS  TO
COLLECT,  TRUTHFULLY  ACCOUNT  FOR, PAY OVER THE TAX, OR MAKE RETURNS OF
THE TAX AS REQUIRED IN THIS  SECTION,  THE  ADMINISTRATOR  MAY  SERVE  A
NOTICE REQUIRING SUCH EMPLOYER TO COLLECT THE TAXES WHICH BECOME COLLEC-
TIBLE  AFTER  SERVICE  OF  SUCH  NOTICE, TO DEPOSIT SUCH TAXES IN A BANK
APPROVED BY THE ADMINISTRATOR, IN A SEPARATE ACCOUNT, IN TRUST  FOR  THE
CITY  AND  PAYABLE  TO THE ADMINISTRATOR, AND TO KEEP THE AMOUNT OF SUCH
TAX IN SUCH ACCOUNT UNTIL PAYMENT  OVER  TO  THE  ADMINISTRATOR.    SUCH
NOTICE  SHALL  REMAIN IN EFFECT UNTIL A NOTICE OF CANCELLATION IS SERVED
BY THE ADMINISTRATOR.
  SEC. 12.   EMPLOYER'S LIABILITY FOR  WITHHELD  TAXES.--EVERY  EMPLOYER
REQUIRED  TO  DEDUCT AND WITHHOLD THE TAX UNDER THIS LOCAL LAW IS HEREBY
MADE LIABLE FOR SUCH TAX.  FOR PURPOSES OF  ASSESSMENT  AND  COLLECTION,
ANY  AMOUNT  REQUIRED TO BE WITHHELD AND PAID OVER TO THE ADMINISTRATOR,
AND ANY ADDITIONS TO TAX, PENALTIES AND INTEREST  WITH  RESPECT  THERETO
SHALL BE CONSIDERED THE TAX OF THE EMPLOYER.  ANY AMOUNT OF TAX ACTUALLY
DEDUCTED AND WITHHELD UNDER THIS LOCAL LAW SHALL BE HELD TO BE A SPECIAL
FUND IN TRUST FOR THE CITY.
  NO EMPLOYEE SHALL HAVE ANY RIGHT OF ACTION AGAINST HIS OR HER EMPLOYER
IN RESPECT TO ANY MONIES DEDUCTED AND WITHHELD FROM HIS OR HER WAGES AND
PAID  OVER  TO THE ADMINISTRATOR IN COMPLIANCE OR IN INTENDED COMPLIANCE
WITH THIS LOCAL LAW.
  SEC. 13.  EMPLOYER'S FAILURE TO WITHHOLD.--IF  AN  EMPLOYER  FAILS  TO
DEDUCT AND WITHHOLD THE TAX, AS REQUIRED, AND THEREAFTER THE TAX AGAINST
WHICH  SUCH  TAX  MAY  BE  CREDITED  IS  PAID, THE TAX SO REQUIRED TO BE
DEDUCTED AND WITHHELD SHALL NOT BE COLLECTED FROM THE EMPLOYER, BUT  THE
EMPLOYER  SHALL NOT BE RELIEVED FROM LIABILITY FOR ANY PENALTIES, INTER-
EST OR ADDITIONS TO THE TAX OTHERWISE  APPLICABLE  IN  RESPECT  OF  SUCH
FAILURE TO DEDUCT AND WITHHOLD.
  SEC.  14.  RETURNS AND PAYMENT OF TAX.--ON OR BEFORE THE FIFTEENTH DAY
OF THE FOURTH MONTH FOLLOWING THE  CLOSE  OF  THE  TAXABLE  YEAR,  EVERY
PERSON  SUBJECT  TO THE TAX SHALL MAKE AND FILE A RETURN AND ANY BALANCE
OF THE TAX SHOWN DUE ON THE FACE OF SUCH RETURN SHALL BE PAID THEREWITH.
THE ADMINISTRATOR MAY, BY REGULATION, PROVIDE FOR THE FILING OF  RETURNS
AND  PAYMENT OF THE TAX AT SUCH OTHER TIMES AS HE OR SHE DEEMS NECESSARY
FOR THE PROPER ENFORCEMENT OF THIS LOCAL LAW.    THE  ADMINISTRATOR  MAY
ALSO PROVIDE BY REGULATION THAT ANY RETURN OTHERWISE REQUIRED TO BE MADE
AND FILED UNDER THIS LOCAL LAW BY ANY NONRESIDENT INDIVIDUAL NEED NOT BE
MADE  AND  FILED  IF SUCH NONRESIDENT INDIVIDUAL HAD, DURING THE TAXABLE

S. 505                             11

YEAR TO WHICH THE RETURN WOULD RELATE, NO NET EARNINGS FROM SELF-EMPLOY-
MENT WITHIN THE CITY.  ANY REGULATION ALLOWING SUCH WAIVER OF RETURN MAY
PROVIDE FOR ADDITIONAL LIMITATIONS ON AND CONDITIONS  AND  PREREQUISITES
TO THE PRIVILEGE OF NOT FILING A RETURN.
  SEC.  14-A.  COMBINED  RETURNS,  EMPLOYER'S RETURNS AND PAYMENTS.--THE
STATE TAX COMMISSION MAY REQUIRE:
  (1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
  (A) A COMBINED RETURN WHICH IN ADDITION TO THE RETURN PROVIDED FOR  IN
A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO INCLUDE RETURNS REQUIRED
TO  BE  FILED  UNDER A LOCAL LAW AUTHORIZED BY ARTICLE THIRTY OF THE TAX
LAW AND UNDER ARTICLE TWENTY-TWO OF THE TAX LAW.
  (B) A COMBINED EMPLOYER'S RETURN WHICH IN ADDITION TO  THE  EMPLOYER'S
RETURN  PROVIDED  FOR IN A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO
INCLUDE EMPLOYER'S RETURNS REQUIRED  TO  BE  FILED  UNDER  A  LOCAL  LAW
AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW AND UNDER ARTICLE TWENTY-TWO
OF THE TAX LAW.
  (2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
RESPECT  TO  THE  PAYMENT OF ESTIMATED TAX, THE STATE TAX COMMISSION MAY
ALSO REQUIRE PAYMENT OF A SINGLE AMOUNT WHICH SHALL BE THE TOTAL OF  THE
AMOUNTS  (TOTAL  TAXES  LESS ANY CREDITS OR REFUNDS) REQUIRED TO BE PAID
WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN PAYMENT  OF  ESTIMATED  TAX
PURSUANT  TO THE PROVISIONS OF LOCAL LAWS IMPOSED UNDER THE AUTHORITY OF
THIS ARTICLE, ARTICLE  THIRTY  OF  THE  TAX  LAW  AND  PURSUANT  TO  THE
PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
  SEC.  15.    EFFECT  OF INVALIDITY IN PART; INCONSISTENCIES WITH OTHER
LAWS.--(A) IF ANY  CLAUSE,  SENTENCE,  PARAGRAPH,  SUBSECTION,  SECTION,
PROVISION  OR OTHER PORTION OF THIS LOCAL LAW OR THE APPLICATION THEREOF
TO ANY PERSON OR CIRCUMSTANCES SHALL BE HELD TO BE INVALID, SUCH HOLDING
SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER OF THIS  LOCAL  LAW
OR  THE APPLICATION OF SUCH PORTION HELD INVALID, TO ANY OTHER PERSON OR
CIRCUMSTANCES, BUT SHALL BE CONFINED IN ITS  OPERATION  TO  THE  CLAUSE,
SENTENCE,  PARAGRAPH,  SUBSECTION,  SECTION,  PROVISION OR OTHER PORTION
THEREOF DIRECTLY INVOLVED IN SUCH HOLDING OR TO THE PERSON  AND  CIRCUM-
STANCES THEREIN INVOLVED.
  (B)    IF  ANY  PROVISION  OF  THIS LOCAL LAW IS INCONSISTENT WITH, IN
CONFLICT WITH, OR CONTRARY TO ANY OTHER PROVISION OF LAW, SUCH PROVISION
OF THIS LOCAL LAW SHALL PREVAIL OVER SUCH OTHER PROVISION AND SUCH OTHER
PROVISION SHALL BE DEEMED TO HAVE BEEN AMENDED, SUPERSEDED  OR  REPEALED
TO THE EXTENT OF SUCH INCONSISTENCY, CONFLICT OR CONTRARIETY.
  S 25-N. ADMINISTRATIVE  PROVISIONS. (A) GENERAL. ANY LOCAL LAW ADOPTED
PURSUANT TO THIS ARTICLE SHALL ALSO  CONTAIN  PROVISIONS  NECESSARY  AND
APPROPRIATE  FOR THE COLLECTION AND THE ADMINISTRATION OF THE TAX HEREIN
AUTHORIZED, EXCEPT THAT WITH RESPECT TO ANY TAXABLE  YEAR  BEGINNING  IN
NINETEEN  HUNDRED  SEVENTY,  UNTIL AND INCLUDING THE THIRTY-FIRST DAY OF
DECEMBER, NINETEEN HUNDRED SEVENTY-ONE, ANY LOCAL LAW  ADOPTED  PURSUANT
TO  THIS  ARTICLE  SHALL CONTAIN THE SAME PROVISIONS AS ARE CONTAINED IN
CHAPTER NINETEEN OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE  CITY
OF  NEW  YORK, BUT "ADMINISTRATOR" SHALL BE READ "STATE TAX COMMISSION";
"ADMINISTRATIVE AGENCIES OF THE CITY" SHALL BE READ  AS  "ADMINISTRATIVE
AGENCIES  OF  THE STATE"; "DEPOSITORIES OR FINANCIAL AGENTS OF THE CITY"
SHALL BE READ AS "DEPOSITORIES OR FINANCIAL AGENTS OF THE STATE"; "OFFI-
CERS OR EMPLOYEES OF THE DEPARTMENT OF FINANCE OF  THE  CITY"  SHALL  BE
READ  "OFFICERS  OR  EMPLOYEES  OF  THE STATE DEPARTMENT OF TAXATION AND
FINANCE"; IN SECTIONS 11-1934, 11-1936, 11-1939, AND 11-1942 (EXCEPT FOR
THE LAST SENTENCE THEREOF) OF CHAPTER NINETEEN OF TITLE  ELEVEN  OF  THE
ADMINISTRATIVE  CODE  OF  THE  CITY  OF NEW YORK "CITY" SHALL BE READ AS

S. 505                             12

"STATE"; "CORPORATION COUNSEL OR OTHER APPROPRIATE OFFICER OF THE  CITY"
OR  "CORPORATION  COUNSEL  OF THE CITY" SHALL BE READ AS "STATE ATTORNEY
GENERAL"; AND THE WORDS  "IT"  OR  "ITS"  SHALL  APPLY  INSTEAD  OF  THE
PRONOUNS  USED WHERE THE REFERENCE IS TO STATE TAX COMMISSION. PROVIDED,
HOWEVER, WITH RESPECT TO DECLARATIONS OF ESTIMATED TAX AND  PAYMENTS  OF
SUCH  TAX  AND THE WITHHOLDING TAX REQUIREMENTS, UNTIL AND INCLUDING THE
THIRTY-FIRST DAY OF DECEMBER, NINETEEN  HUNDRED  SEVENTY-ONE,  ANY  SUCH
TERMS  SHALL BE SO READ WITH RESPECT TO ANY TAXABLE YEAR OR OTHER PERIOD
BEGINNING IN NINETEEN HUNDRED SEVENTY-ONE.
  (B) METHODS OF REVIEW.--SUCH LOCAL LAW SHALL ALSO  CONTAIN  PROVISIONS
SUBSTANTIALLY THE SAME AS THE FOLLOWING:
  (I) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL  BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR ANY
OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE  SEVENTY-EIGHT  OF
THE  CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO THE
SUPREME COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF  SUCH
FINAL  DETERMINATION,  PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL  NOT  BE
INSTITUTED  UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH
SUCH INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL  LAW
OR  REGULATION, SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDERTAK-
ING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN  THIS
STATE  AND  APPROVED BY THE SUPERINTENDENT OF INSURANCE OF THIS STATE AS
TO SOLVENCY AND RESPONSIBILITY, IN SUCH  AMOUNT  AS  A  JUSTICE  OF  THE
SUPREME  COURT  SHALL  APPROVE  TO THE EFFECT THAT IF SUCH PROCEEDING BE
DISMISSED OR THE TAX CONFIRMED THE PETITIONER WILL  PAY  ALL  COSTS  AND
CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT
THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT
TO  COVER THE TAXES, INTEREST AND PENALTIES STATED IN SUCH DETERMINATION
PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST  IT  IN  THE  PROSE-
CUTION  OF  THE  PROCEEDING,  IN WHICH EVENT THE PETITIONER SHALL NOT BE
REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION  PRECE-
DENT TO THE APPLICATION.
  (II)  WHERE  ANY  TAX  IMPOSED  HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREOF DULY MADE TO THE PROPER FISCAL OFFICER  OR  OFFICERS,  AND  SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH  DETERMINATION  SHALL  BE  REVIEWABLE BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND  RULES,  PROVIDED,  HOWEVER,
THAT  SUCH  PROCEEDING IS INSTITUTED WITHIN FOUR MONTHS AFTER THE GIVING
OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE  WAS
NOT  PREVIOUSLY  MADE,  AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH  SURETIES  AS  A
JUSTICE  OF  THE  SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE  PETITIONER  WILL  PAY
ALL  COSTS  AND  CHARGES  WHICH  MAY  ACCRUE  IN THE PROSECUTION OF SUCH
PROCEEDING.
  (III) NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE  EXPIRA-
TION  OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF THE RETURN
EXCEPT THAT WHERE NO RETURN HAS BEEN FILED OR, IN THE CASE OF THE FILING
OF A WILFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE  THE  TAX,
THE TAX MAY BE ASSESSED AT ANY TIME; PROVIDED, HOWEVER, WHERE A TAXPAYER
OMITS FROM HIS OR HER RETURN AN AMOUNT WHICH SHOULD BE PROPERLY INCLUDED
THEREIN  WHICH  IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT OF THE
GROSS INCOME DERIVED BY HIM OR  HER  FROM  ANY  TRADE  OR  BUSINESS,  NO
ASSESSMENT  OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE

S. 505                             13

THAN SIX YEARS FROM THE DATE OF THE FILING  OF  THE  RETURN,  EXCEPT  AS
OTHERWISE PROVIDED HEREIN.
  (C) BULK SALES.-- SUCH LOCAL LAW MAY CONTAIN A PROVISION SUBSTANTIALLY
THE SAME AS THE FOLLOWING:
  WHENEVER  THERE  IS MADE A SALE, TRANSFER OR ASSIGNMENT IN BULK OF ANY
PART OR THE WHOLE OF A STOCK OF MERCHANDISE OR OF FIXTURES, OR  MERCHAN-
DISE AND OF FIXTURES PERTAINING TO THE CONDUCTING OF THE BUSINESS OF THE
SELLER,  TRANSFERRER  OR ASSIGNOR, OTHERWISE THAN IN THE ORDINARY COURSE
OF TRADE AND IN THE REGULAR PROSECUTION OF SAID BUSINESS, THE PURCHASER,
TRANSFEREE OR ASSIGNEE SHALL AT LEAST TEN DAYS BEFORE TAKING  POSSESSION
OF  SUCH  MERCHANDISE,  FIXTURES, OR MERCHANDISE AND FIXTURES, OR PAYING
THEREFOR, NOTIFY THE ADMINISTRATOR BY REGISTERED MAIL  OF  THE  PROPOSED
SALE  AND OF THE PRICE, TERMS AND CONDITIONS THEREOF, WHETHER OR NOT THE
SELLER, TRANSFERRER OR ASSIGNOR, HAS REPRESENTED  TO,  OR  INFORMED  THE
PURCHASER, TRANSFEREE OR ASSIGNEE, THAT IT OWES ANY TAX PURSUANT TO THIS
LOCAL  LAW,  WHETHER  OR  NOT  THE PURCHASER, TRANSFEREE OR ASSIGNEE HAS
KNOWLEDGE THAT SUCH TAXES ARE OWING, AND WHETHER OR NOT ANY  SUCH  TAXES
ARE IN FACT OWING.
  WHENEVER  THE PURCHASER, TRANSFEREE OR ASSIGNEE SHALL FAIL TO GIVE THE
NOTICE TO THE ADMINISTRATOR REQUIRED  BY  THE  PRECEDING  PARAGRAPH,  OR
WHENEVER  THE  ADMINISTRATOR  SHALL  INFORM THE PURCHASER, TRANSFEREE OR
ASSIGNEE THAT A POSSIBLE CLAIM FOR SUCH TAX OR TAXES EXISTS, ANY SUMS OF
MONEY, PROPERTY OR CHOSES IN ACTION, OR OTHER CONSIDERATION,  WHICH  THE
PURCHASER,  TRANSFEREE  OR  ASSIGNEE IS REQUIRED TO TRANSFER OVER TO THE
SELLER, TRANSFERRER OR ASSIGNOR SHALL BE SUBJECT  TO  A  FIRST  PRIORITY
RIGHT  AND  LIEN FOR ANY SUCH TAXES THERETOFORE OR THEREAFTER DETERMINED
TO BE DUE FROM THE SELLER, TRANSFERRER OR ASSIGNOR TO THE CITY, AND  THE
PURCHASER,  TRANSFEREE OR ASSIGNEE IS FORBIDDEN TO TRANSFER TO THE SELL-
ER, TRANSFERRER OR ASSIGNOR ANY SUCH SUMS OF MONEY, PROPERTY  OR  CHOSES
IN  ACTION TO THE EXTENT OF THE AMOUNT OF THE CITY'S CLAIM.  FOR FAILURE
TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION THE PURCHASER,  TRANS-
FEREE OR ASSIGNEE, IN ADDITION TO BEING SUBJECT TO LIABILITIES AND REME-
DIES IMPOSED UNDER ANY PROVISIONS OF LAW, SHALL BE PERSONALLY LIABLE FOR
THE  PAYMENT  TO  THE  CITY OF ANY SUCH TAXES, THERETOFORE OR THEREAFTER
DETERMINED TO BE DUE TO THE CITY FROM THE SELLER, TRANSFERRER OR  ASSIG-
NOR  AND  SUCH LIABILITY MAY BE ASSESSED AND ENFORCED IN THE SAME MANNER
AS THE LIABILITY FOR TAX IS IMPOSED UNDER THIS LOCAL LAW.
  (D) DELEGATION OF FUNCTIONS.--THE  LOCAL  LAW  MAY  PROVIDE  THAT  THE
ADMINISTRATOR OF THE TAX IMPOSED, AS DEFINED IN THE LOCAL LAW, MAY DELE-
GATE  HIS  OR HER POWERS AND FUNCTIONS UNDER THE LOCAL LAW TO ONE OF HIS
OR HER DEPUTIES OR TO ANY EMPLOYEE OR EMPLOYEES OF HIS OR HER DEPARTMENT
AND AUTHORIZE BANKS OR TRUST COMPANIES WHICH ARE DEPOSITORIES OR  FINAN-
CIAL  AGENTS  OF  THE  CITY  TO  RECEIVE  AND GIVE A RECEIPT FOR ANY TAX
IMPOSED UNDER THE LOCAL LAW.
  (E) THE PROVISIONS CONTAINED IN SUBSECTIONS  (A),  (B),  (C)  AND  (D)
SHALL  NOT BE APPLICABLE WITH RESPECT TO TAXES IMPOSED FOR TAXABLE PERI-
ODS COMMENCING ON OR AFTER JANUARY FIRST, NINETEEN  HUNDRED  SEVENTY-SIX
BUT,  WITH  RESPECT  TO  THE TAX IMPOSED FOR SUCH PERIODS THE PROVISIONS
CONTAINED IN PART SIX OF ARTICLE TWENTY-TWO OF THE TAX LAW AND  SECTIONS
SIX  HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, SIX HUNDRED SIXTY-TWO
AND THIRTEEN HUNDRED ELEVEN OF THE TAX LAW INCLUDING THE  PROVISIONS  OF
JUDICIAL REVIEW BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE  LAW  AND  RULES  SHALL  BE  APPLICABLE WITH THE SAME FORCE AND
EFFECT AS IF THOSE PROVISIONS HAD BEEN  INCORPORATED  IN  FULL  IN  THIS
SECTION EXCEPT WHERE INCONSISTENT WITH THE PROVISIONS OF THIS LOCAL LAW.

S. 505                             14

  S 25-O. DEPOSIT  AND  DISPOSITION OF REVENUES. REVENUES RESULTING FROM
THE IMPOSITION OF THE TAX AUTHORIZED BY THIS ARTICLE SHALL BE PAID  INTO
THE  TREASURY  OF THE CITY AND SHALL BE CREDITED TO AND DEPOSITED IN THE
GENERAL FUND OF SUCH CITY AND SHALL BE AVAILABLE  FOR  ANY  LAWFUL  CITY
PURPOSE. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, NINETEEN
HUNDRED  SEVENTY-SIX SUCH REVENUES SHALL BE DEPOSITED AND DISPOSED OF IN
THE SAME MANNER AS REVENUES RESULTING FROM THE IMPOSITION OF  THE  TAXES
AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW.
  S 3. Section 1301 of the tax law is amended by adding a new subsection
(c) to read as follows:
  (C)  THE  TAXES  AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED ONLY IF THE
GENERAL CITY LAW AUTHORIZES THE ADOPTION OF A CITY TAX ON  THE  EARNINGS
OF NONRESIDENTS AND THE CITY IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE
ALSO IMPOSES SUCH TAX ON THE EARNINGS OF NONRESIDENTS.
  S  4. Separability. If any clause, sentence, paragraph or part of this
act shall be adjudged to be unconstitutional or invalid,  such  judgment
shall  not  affect,  impair,  or  invalidate, the remainder thereof, but
shall be confined in its operation to the clause,  sentence,  paragraph,
section  or  part thereof directly involved in controversy in which such
judgment shall have been rendered.
  S 5. This act shall take effect immediately and  shall  be  deemed  to
have  been  in  full force and effect on and after July 1, 1999. The tax
authorized, administered, enforced and levied in accordance with article
2-E and subsection (h) of section 1 of section 25-m of the general  city
law,  and  subsection  (c) of section 1301 and subsection (b) of section
1305 of the tax law shall be continuously computed and shall be adminis-
tered, enforced, and levied as if chapter 5 of the laws of 1999 had  not
been  enacted. The commissioner of taxation and finance is authorized to
promulgate immediately and on  an  emergency  basis  all  necessary  and
reasonable  rules  and regulations for the timely implementation of this
act.

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