S T A T E   O F   N E W   Y O R K
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                                  2415

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. KELLNER -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation to unincorporated business gross income

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

  Section 1. Paragraph 9 of subdivision (c) of  section  11-506  of  the
administrative  code of the city of New York, as added by chapter 128 of
the laws of 1996, is amended to read as follows:
  (9) (I) Notwithstanding any other provision of  this  chapter  to  the
contrary,  the amount of any income or gain (to the extent includible in
gross income for federal income tax purposes), including but not limited
to, dividends, interest, payments  with  respect  to  securities  loans,
income  from  notional  principal  contracts, or income and gains, other
than as a dealer,  from  the  holding,  sale,  disposition,  assumption,
offset  or  termination  of a position in, property, as defined in para-
graph one of subdivision (c) of section 11-502 of this chapter, or other
substantially similar  income  from  ordinary  and  routine  trading  or
investment  activity  to  the  extent  determined by the commissioner of
finance, realized in connection with activities described  in  paragraph
two  of subdivision (c) of section 11-502 of this chapter if, and to the
extent that, such activities are not deemed an  unincorporated  business
carried on by the taxpayer pursuant to the provisions of subdivision (c)
of  section  11-502 of this chapter.  PROVIDED, HOWEVER, ANY SUCH INCOME
OR GAIN REALIZED IN CONNECTION WITH AN  INVESTMENT  MANAGEMENT  SERVICES
INTEREST,  OTHER  THAN ANY PORTION THEREOF ACQUIRED BY A CONTRIBUTION OF
INVESTMENT CAPITAL, SHALL NOT BE SO SUBTRACTED  FROM  THE  INCOME  OF  A
BUSINESS WHOSE ASSETS EXCEED TEN MILLION DOLLARS.
  (II)  FOR  PURPOSES OF THIS PARAGRAPH, THE TERM "INVESTMENT MANAGEMENT
SERVICES INTEREST" MEANS ANY INTEREST IN A BUSINESS WHICH IS HELD BY ANY
PERSON IF SUCH PERSON PROVIDES, DIRECTLY OR INDIRECTLY,  IN  THE  ACTIVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00027-01-9
              

A. 2415                             2

CONDUCT  OF  A  TRADE  OR BUSINESS, A SUBSTANTIAL QUANTITY OF ANY OF THE
FOLLOWING SERVICES TO THE BUSINESS:
  (A) ADVISING THE BUSINESS AS TO THE VALUE OF ANY PROPERTY;
  (B)  ADVISING  THE  BUSINESS  AS  TO THE ADVISABILITY OF INVESTING IN,
PURCHASING, OR SELLING ANY PROPERTY;
  (C) MANAGING, ACQUIRING, OR DISPOSING OF ANY PROPERTY;
  (D) ARRANGING FINANCING WITH RESPECT TO ACQUIRING PROPERTY; OR
  (E) ANY ACTIVITY IN SUPPORT OF ANY SERVICE DESCRIBED  IN  CLAUSES  (A)
THROUGH (D) OF THIS SUBPARAGRAPH.
  FOR  PURPOSES OF THIS PARAGRAPH, THE TERM "PROPERTY" MEANS PROPERTY AS
DEFINED IN PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION  11-502  OF  THIS
CHAPTER.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.