S T A T E   O F   N E W   Y O R K
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                                  2181

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced by M. of A. THIELE -- read once and referred to the Committee
  on Cities

AN ACT to repeal section 1127 of the New York city charter relating to a
  condition  precedent  to  employment  and  providing for the refund of
  excess payments collected after the repeal of the city earnings tax on
  nonresidents resulting from the application of this repealed section

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

  Section 1. Legislative findings and intent. The legislature finds that
the  city  earnings tax on nonresidents was declared unconstitutional by
the New York Court of Appeals in the case of CITY OF NEW YORK  V.  STATE
OF NEW YORK, 94 NY2d 577 (2000), thereby resulting in the repeal of such
tax  effective  July  1, 1999 pursuant to chapter 5 of the laws of 1999.
The legislature further finds that section 1127 of  the  New  York  city
charter,  which  requires  that  a  city employee resident who becomes a
nonresident agree as a condition of employment to pay  to  the  city  an
amount  by which a city personal income tax would exceed any nonresident
tax imposed on such person, should  not  have  been  applied  after  the
effective  date  of  the repeal of the city earnings tax on nonresidents
(July 1, 1999), and that the excess amounts collected  after  that  date
ought  to be refunded to rectify this error, subject to the proviso that
this act not impair the  entirety  of  any  current  or  previous  labor
contract  or  collective bargaining agreement executed prior to the date
this act shall have become a law. The legislature declares this  act  to
be  remedial  and  corrective  in  nature  and  for the benefit of those
affected by the failure to repeal section 1127 of the Charter  prior  to
the date this act shall have become a law.
  S 2. Section 1127 of the New York city charter is REPEALED.
  S  3.  Any payment made after July 1, 1999 by a city employee pursuant
to section 1127 of the New York city charter, repealed by section two of
this act, on account of  the  application  of  the  provisions  of  such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03207-01-9
              

A. 2181                             2

section  to any taxable period beginning on or after July 1, 1999 and to
any taxable period ending on or after July 1, 1999, shall be refunded by
such city. Such refunds shall be deemed  to  be  refunds  of  previously
taxed earnings for the purposes of any income tax law.
  S  4.  No  provision  of  this act shall be deemed to impair any labor
contract or collective bargaining agreement entered into  prior  to  the
date this act shall have become a law.
  S  5.  This  act shall take effect immediately and section two of this
act shall be deemed to have been in full force and effect on  and  after
July 1, 1999.