S T A T E   O F   N E W   Y O R K
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                                  5745

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 19, 2009
                               ___________

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

AN  ACT  to  amend  the tax law and the general city law, in relation to
  imposing the earnings tax on nonresidents

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

  Section  1.  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.
  S 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.
  S  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 HEREIN AUTHORIZED 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 THREE OF THE MODEL LOCAL LAW AND SUCH
RATES MAY BE REDUCED AND INCREASED, PROVIDED THAT THE RATES SHALL NOT BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08870-01-9

              

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.