A. 5745 2
FIXED HIGHER THAN THOSE CONTAINED IN SECTION THREE 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
MODEL LOCAL LAW
SECTION 1. MEANING OF TERMS.
2. PERSONS SUBJECT TO TAX.
3. PERSONS SUBJECT TO TAX.
4. 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.
5. ALLOCATION TO THE CITY.
6. ACCOUNTING PERIODS AND METHODS.
7. WITHHOLDING OF TAX ON WAGES.
8. WITHHOLDING OF TAX ON WAGES FOR TAXABLE PERIODS COMMENCING
ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX.
9. INFORMATION STATEMENT FOR EMPLOYEE.
10. CREDIT FOR TAX WITHHELD.
11. EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES.
12. EMPLOYER'S LIABILITY FOR WITHHELD TAXES.
13. EMPLOYER'S FAILURE TO WITHHOLD.
14. RETURNS AND PAYMENT OF TAX.
15. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS.
16. EFFECT OF INVALIDITY IN PART; INCONSISTENCIES WITH OTHER
LAWS.
S 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 ADMINISTRATION 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, NINE-
TEEN 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 THE AMOUNT OF
MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT SYSTEM OR PENSION FUND
PICKED UP OR PAID BY THE EMPLOYER PURSUANT TO SUBDIVISION F OF SECTION
A. 5745 3
FIVE HUNDRED SEVENTEEN OR SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
(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
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 OR HER
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 INDIVID-
UAL WHO IS NOT A RESIDENT.
A. 5745 4
(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
(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 EXEMPTIONS OR MODIFICATIONS
PRESCRIBED IN OR PURSUANT TO ARTICLE TWO-E OF THE GENERAL CITY LAW OR BY
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.)
S 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-EM-
PLOYMENT, 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 EARN-
INGS FROM SELF-EMPLOYMENT.
(B) EXCLUSION. (1) IN COMPUTING THE AMOUNT OF WAGES AND NET EARNINGS
FROM SELF-EMPLOYMENT TAXABLE UNDER SUBDIVISION (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
A. 5745 5
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.
S 3. PERSONS SUBJECT TO TAX. (A) IMPOSITION OF TAX. (1) A TAX IS HERE-
BY IMPOSED FOR EACH TAXABLE YEAR ENDING ON OR AFTER JULY FIRST, NINETEEN
HUNDRED SIXTY-SIX AND ON OR BEFORE DECEMBER THIRTY-FIRST, NINETEEN
HUNDRED SEVENTY AND FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR-
TY-FIRST, NINETEEN HUNDRED EIGHTY-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 EIGHTY-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 EIGHTY-NINE
AND ENDING IN NINETEEN HUNDRED NINETY, TWO TENTATIVE TAXES SHALL BE
COMPUTED, THE FIRST AS PROVIDED IN PARAGRAPH (2) AND THE SECOND AS
PROVIDED IN PARAGRAPH (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 EIGHTY-NINE AND THE NUMBER OF DAYS IN NINETEEN HUNDRED
NINETY, RESPECTIVELY, 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 SUBDIVISION (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
A. 5745 6
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.
S 4. TAXABLE YEARS TO WHICH TAX IMPOSED BY THIS LOCAL LAW APPLIES; TAX
FOR TAXABLE YEARS BEGINNING PRIOR TO AND ENDING AFTER JULY FIRST, NINE-
TEEN 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.
S 5. 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.
A. 5745 7
(1) PLACE OF BUSINESS. IF A TAXPAYER HAS NO REGULAR PLACE OF BUSINESS
OUTSIDE THE CITY ALL OF HIS OR HER 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 ADMINIS-
TRATOR AS FAIRLY AND EQUITABLY REFLECTING NET EARNINGS FROM SELF-EMPLOY-
MENT 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 AGEN-
CY 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 NEGOTIATED
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 SUBDIVISION (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
UNDER SUBDIVISION (B) OR (C), BUT SHALL BE CONSIDERED AS ENTIRELY
DERIVED FROM OR CONNECTED WITH THE PLACE IN WHICH SUCH PROPERTY IS
LOCATED.
S 6. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. A TAXPAY-
ER'S TAXABLE YEAR UNDER THIS LOCAL LAW SHALL BE THE SAME AS HIS OR HER
TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
A. 5745 8
(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 THREE OF THIS LOCAL LAW
SHALL BE PRORATED UNDER REGULATIONS OF THE ADMINISTRATOR.
(C) ACCOUNTING METHODS. A TAXPAYER'S METHOD OF ACCOUNTING UNDER THIS
PART 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 OR HER 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 REGULATIONS
OF THE ADMINISTRATOR.
S 7. WITHHOLDING OF TAX ON WAGES. ON OR AFTER THE FIRST PAYROLL PERIOD
BEGINNING FORTY-FIVE DAYS AFTER THE DATE THIS LOCAL LAW BECOMES EFFEC-
TIVE 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 WITH-
HOLDING FROM THE EMPLOYEE'S WAGES DURING EACH CALENDAR YEAR AN AMOUNT
SUBSTANTIALLY EQUIVALENT TO THE TAX REASONABLY ESTIMATED 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.
S 8. WITHHOLDING OF TAX ON WAGES FOR TAXABLE PERIODS COMMENCING ON OR
AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX. THE PROVISIONS
CONTAINED IN THIS SECTION AND SECTIONS SEVEN, 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 V 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 SUBSECTION EXCEPT WHERE
INCONSISTENT WITH THE PROVISIONS OF THIS ARTICLE, EXCEPT THAT THE TERM
"AGGREGATE AMOUNT" CONTAINED IN PARAGRAPHS ONE, TWO, THREE, FOUR AND
FIVE 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
A. 5745 9
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 CALENDAR YEAR NINETEEN HUNDRED SEVEN-
TY-SIX, BUT SUCH RETURNS SHALL BE REQUIRED TO BE FILED WITH THE STATE
TAX COMMISSION AT THE TIMES AND IN THE MANNER PROVIDED FOR IN SUBDIVI-
SION (A) OF SECTION ELEVEN OF THIS LOCAL LAW, EXCEPT THE TERM "ADMINIS-
TRATOR" IN SUCH SUBDIVISION SHALL BE READ AS "STATE TAX COMMISSION."
S 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.
S 10. CREDIT FOR TAX WITHHELD. WAGES UPON WHICH TAX IS REQUIRED TO BE
WITHHELD SHALL BE TAXABLE UNDER THIS LOCAL LAW AS IF NO WITHHOLDING 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.
S 11. EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES. (A) GENERAL. 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 CALEN-
DAR 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 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 THIRTY-FIRST FOR THE SEMI-ANNUAL PERIOD ENDING
ON JUNE THIRTIETH AND ON OR BEFORE JANUARY THIRTY-FIRST FOR THE SEMI-AN-
NUAL PERIOD ENDING ON DECEMBER THIRTY-FIRST. THE ADMINISTRATOR MAY, IF
HE OR SHE BELIEVES SUCH ACTION NECESSARY FOR THE PROTECTION OF THE
REVENUES, REQUIRE ANY EMPLOYER TO MAKE A RETURN AND PAY TO HIM OR HER
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
A. 5745 10
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 AUTHORITY 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 COLLECTIBLE 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.
S 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.
S 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, INTEREST OR
ADDITIONS TO THE TAX OTHERWISE APPLICABLE IN RESPECT OF SUCH FAILURE TO
DEDUCT AND WITHHOLD.
S 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
PROVIDE FOR ADDITIONAL LIMITATIONS ON AND CONDITIONS AND PREREQUISITES
TO THE PRIVILEGE OF NOT FILING A RETURN.
S 15. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS. THE STATE TAX
COMMISSION MAY REQUIRE:
(A) THE FILING OF ANY OR ALL OF THE FOLLOWING:
A. 5745 11
(1) 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.
(2) 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.
(B) 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
ARTICLE TWO-E OF THE GENERAL CITY LAW, ARTICLE THIRTY OF THE TAX LAW AND
PURSUANT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
S 16. EFFECT OF INVALIDITY IN PART; INCONSISTENCIES WITH OTHER LAWS.
(A) IF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, 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 CIRCUM-
STANCES, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE,
PARAGRAPH, SUBDIVISION, SECTION, PROVISION OR OTHER PORTION THEREOF
DIRECTLY INVOLVED IN SUCH HOLDING OR TO THE PERSON AND CIRCUMSTANCES
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 AND 11-1942 OF SUCH CODE (EXCEPT
FOR THE LAST SENTENCE THEREOF) "CITY" SHALL BE READ AS "STATE"; "CORPO-
RATION 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 WITH-
HOLDING TAX REQUIREMENTS, UNTIL AND INCLUDING THE THIRTY-FIRST DAY OF
DECEMBER, NINETEEN HUNDRED SEVENTY-ONE, ANY SUCH TERMS SHALL BE SO READ
A. 5745 12
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.
(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
A. 5745 13
SELLER, TRANSFERROR 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, TRANSFERROR 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, TRANSFERROR 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, TRANSFERROR OR ASSIGNOR TO THE CITY, AND THE
PURCHASER, TRANSFEREE OR ASSIGNEE IS FORBIDDEN TO TRANSFER TO THE SELL-
ER, TRANSFERROR 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 THE LIABILITIES AND
REMEDIES IMPOSED AS PROVIDED BY LAW, SHALL BE PERSONALLY LIABLE FOR THE
PAYMENT TO THE CITY OF ANY SUCH TAXES, THERETOFORE OR THEREAFTER DETER-
MINED TO BE DUE TO THE CITY FROM THE SELLER, TRANSFERROR OR ASSIGNOR 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 ADMIN-
ISTRATOR OF THE TAX IMPOSED, AS DEFINED IN THE LOCAL LAW, MAY DELEGATE
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 FINANCIAL
AGENTS OF THE CITY TO RECEIVE AND GIVE A RECEIPT FOR ANY TAX IMPOSED
UNDER THE LOCAL LAW.
(E) THE PROVISIONS CONTAINED IN SUBDIVISIONS (A), (B), (C) AND (D) OF
THIS SECTION SHALL NOT BE APPLICABLE WITH RESPECT TO TAXES IMPOSED FOR
TAXABLE PERIODS 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 VI OF ARTICLE TWENTY-TWO OF THE TAX LAW AND
SECTION 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 ARTICLE.
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. This act shall take effect immediately.