S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5199
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Ways and Means
 
 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 tax in the event of certain judicial determinations, is REPEALED.
   §  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.
   § 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
 RATES CONTAINED IN EITHER SECTION TWO OR TWO-A OF THE  MODEL  LOCAL  LAW
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05091-01-7

 A. 5199                             2
 
 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
 DEDUCTION FOR WAGES AND SALARIES PAID OR INCURRED FOR THE  TAXABLE  YEAR

 A. 5199                             3

 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,
   (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

 A. 5199                             4
 
   (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.
   (2)  A TAX AT THE RATE OF THREE-EIGHTHS OF  ONE  PERCENT  ON  ALL  NET
 EARNINGS FROM SELF-EMPLOYMENT.

 A. 5199                             5
 
   (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.
   (B)  EXCLUSION.--(1) IN COMPUTING THE AMOUNT OF WAGES AND NET EARNINGS
 FROM SELF-EMPLOYMENT  TAXABLE  UNDER  SUBSECTION  (A),  THERE  SHALL  BE

 A. 5199                             6
 
 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,
 SHALL BE COMPUTED IN ACCORDANCE WITH THE OTHER PROVISIONS OF THIS  LOCAL
 LAW.

 A. 5199                             7
 
   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
 OTHER  DISPOSITION  OF REAL PROPERTY, SHALL NOT BE SUBJECT TO ALLOCATION

 A. 5199                             8
 
 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
 BEEN INCORPORATED IN FULL IN THIS SECTION EXCEPT WHERE INCONSISTENT WITH

 A. 5199                             9
 
 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 RESIDENTS 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 AGGRE-
 GATE 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 THIRTY-FIRST FOR  THE  SEMI-
 ANNUAL  PERIOD ENDING ON JUNE THIRTIETH AND ON OR BEFORE JANUARY THIRTY-
 FIRST FOR THE SEMI-ANNUAL PERIOD ENDING ON DECEMBER THIRTY-FIRST.    THE
 ADMINISTRATOR  MAY,  IF HE OR SHE BELIEVES SUCH ACTION NECESSARY FOR THE

 A. 5199                            10
 
 PROTECTION OF THE REVENUES, REQUIRE ANY EMPLOYER 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 AUTHORI-
 TY 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 FOLLOWING 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
 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

 A. 5199                            11
 
 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.
   § 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
 "STATE"; "CORPORATION COUNSEL OR OTHER APPROPRIATE OFFICER OF THE  CITY"
 OR  "CORPORATION  COUNSEL  OF THE CITY" SHALL BE READ AS "STATE ATTORNEY

 A. 5199                            12
 
 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
 THAN SIX YEARS FROM THE DATE OF THE FILING  OF  THE  RETURN,  EXCEPT  AS
 OTHERWISE PROVIDED HEREIN.

 A. 5199                            13
 
   (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.
   § 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

 A. 5199                            14
 
 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.
   § 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.
   § 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.
   §  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.