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

    S. 21                                                      A. 21

                     Twentieth Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            December 2, 2009
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee on Ways and Means

AN  ACT authorizing the commissioner of taxation and finance to adminis-
  ter an accounts receivable discount program with  respect  to  certain
  overdue tax liabilities

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

  Section 1. (a) Notwithstanding the provisions of any other law to  the
contrary,  there  is  hereby established an accounts receivable discount
program as described in this section, to be administered by the  commis-
sioner  of  taxation  and  finance,  and  to be effective for the period
prescribed by such commissioner, for all eligible taxpayers as described
in this section owing any tax, fee, or  surcharge  imposed  or  formerly
imposed  by,  or  authorized under, the tax law, and administered by the
commissioner of taxation and finance.
  (b) For purposes of  the  accounts  receivable  discount  program,  an
eligible  taxpayer  is an individual, partnership, estate, trust, corpo-
ration, limited liability company, joint stock  company,  or  any  other
company,  trustee,  receiver,  assignee,  referee, society, association,
business or any other person as described in the tax law, who  or  which
has a tax liability with regard to one or more taxes, fees or surcharges
that  meet the conditions described in this section. However, a taxpayer
who or that has been convicted of crime under the tax law or  the  penal
law,  and who or that is subject to a court order to pay a tax liability
as a result of that conviction, is not eligible to participate  in  this
program.
  (c)  For  purposes  of  the  accounts  receivable discount program, an
eligible tax liability is one that has become fixed and final,  and  for
which  an  assessment  or  final  determination  was issued on or before

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12173-01-9

S. 21                               2                              A. 21

December 31, 2006. An  eligible  tax  liability  shall  not  include  an
assessment  or  final  determination that includes any of the following:
(1) any fraud penalty imposed under the tax law; (2) a  penalty  imposed
under  section  11  of  part  N of chapter 61 of the laws of 2005; (3) a
penalty imposed under subsection (e), (g), (p), (p-1),  (r),  (x),  (y),
(z),  (aa)  or  (bb)  of  section  685  of the tax law; or (4) a penalty
imposed under subsection (f), (k), (k-1), (l), (p), (q), (r), (s) or (t)
of section 1085 of the tax law.
  (d) The amount due under the accounts receivable discount program  for
an eligible tax liability for which an assessment or final determination
was  issued  after  December 31, 2003 and on or before December 31, 2006
must include the underlying tax  liability  and  fifty  percent  of  the
accrued  interest and penalty (including the additional rate of interest
prescribed under section 1145 of  the  tax  law,  referred  to  in  this
section as "interest penalty"). The amount due under this program for an
eligible  tax  liability  for which an assessment or final determination
was issued on or before December 31, 2003 must  include  the  underlying
tax  liability  and  twenty  percent of the accrued interest and penalty
(including interest penalty).
  (e) The commissioner  of  taxation  and  finance  shall  identify  the
assessments  and  final determinations with tax liabilities eligible for
the accounts receivable discount  program  described  in  this  section,
compute  the  total  amount  of tax, interest, and penalty due under the
accounts receivable discount program on each such  assessment  or  final
determination,  and  notify  eligible  taxpayers of the amount due under
this program for  each  such  assessment  or  final  determination.  The
discount  of  a  percentage  of  interest  and penalty described in this
section will not be granted to any taxpayer for any such  assessment  or
final  determination  unless  the  taxpayer  pays in full the amount due
under this program for that assessment  or  final  determination  on  or
before the date prescribed by the commissioner.
  (f)  Under  the  accounts receivable discount program, payment will be
made by eligible taxpayers with eligible tax liabilities in the form and
manner prescribed by the commissioner of taxation  and  finance.    Upon
payment  in  full by the date prescribed by the commissioner of taxation
and finance of the amount due under  the  accounts  receivable  discount
program for an eligible tax liability, the taxpayer's liability for that
assessment  or  final  determination  will be deemed to be paid in full.
Failure to pay the full amount  due  under  this  program  by  the  date
prescribed  by  the commissioner of taxation and finance will disqualify
an eligible tax liability from receiving the discount  of  interest  and
penalty described in this section.
  (g)  No  refund  will be granted or credit allowed with respect to any
penalty or interest paid prior to the time the taxpayer participates  in
the accounts receivable discount program.
  (h)  No  refund  will be granted or credit allowed with respect to any
tax liability, including any applicable interest or penalty, paid  under
the accounts receivable discount program.
  (i)  If  an  eligible taxpayer has entered into an installment payment
agreement that applies to an eligible tax liability,  the  taxpayer  may
participate  in the accounts receivable discount program with respect to
that liability, if the taxpayer pays the amount due under  the  accounts
receivable  discount  program  in  full  by  the  date prescribed by the
commissioner of taxation and finance.
  S 2. This act shall take effect immediately.