S T A T E   O F   N E W   Y O R K
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                                   419

                      Seventh Extraordinary Session

                            I N  S E N A T E

                              June 28, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

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

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

  Section 1. Paragraph 3 of subdivision (b) of  section  11-503  of  the
administrative  code  of the city of New York, as amended by chapter 481
of the laws of 1997, is amended to read as follows:
  (3) For each taxable year beginning after nineteen hundred  ninety-six
BUT BEFORE TWO THOUSAND NINE:
  (A)  if  the tax computed under subdivision (a) of this section is one
thousand eight hundred dollars or less, a credit shall  be  allowed  for
the entire amount of such tax;
  (B)  if the tax computed under subdivision (a) of this section exceeds
one thousand eight hundred dollars but is less than three  thousand  two
hundred  dollars,  a credit shall be allowed in the amount determined by
multiplying such tax by a fraction the numerator of which is three thou-
sand two hundred dollars minus the amount of such tax and the  denomina-
tor of which is one thousand four hundred dollars; or
  (C) if the tax computed under subdivision (a) of this section is three
thousand two hundred dollars or more, no credit shall be allowed.
  S  2.  Subdivision (b) of section 11-503 of the administrative code of
the city of New York is amended by adding a new paragraph 3-a to read as
follows:
  (3-A) FOR EACH TAXABLE YEAR BEGINNING AFTER TWO THOUSAND EIGHT:
  (A) IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION IS THREE
THOUSAND FOUR HUNDRED DOLLARS OR LESS, A CREDIT SHALL BE ALLOWED FOR THE
ENTIRE AMOUNT OF SUCH TAX;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11919-01-9

              

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  (B) IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION  EXCEEDS
THREE  THOUSAND FOUR HUNDRED DOLLARS BUT IS LESS THAN FIVE THOUSAND FOUR
HUNDRED DOLLARS, A CREDIT SHALL BE ALLOWED IN THE AMOUNT  DETERMINED  BY
MULTIPLYING  SUCH TAX BY A FRACTION THE NUMERATOR OF WHICH IS FIVE THOU-
SAND FOUR HUNDRED DOLLARS MINUS THE AMOUNT OF SUCH TAX AND THE DENOMINA-
TOR OF WHICH IS TWO THOUSAND DOLLARS; OR
  (C)  IF THE TAX COMPUTED UNDER SUBDIVISION (A) OF THIS SECTION IS FIVE
THOUSAND FOUR HUNDRED DOLLARS OR MORE, NO CREDIT SHALL BE ALLOWED.
  S 3. Subdivision (a) of section 11-511 of the administrative  code  of
the  city of New York, as amended by chapter 481 of the laws of 1997, is
amended to read as follows:
  (a) Requirement of declaration.  Except as provided in subdivision (j)
of this section, every unincorporated business shall make a  declaration
of  its  estimated tax for the taxable year, containing such information
as the commissioner of finance may prescribe by regulations or  instruc-
tion, if:
  (1)  for taxable years beginning after nineteen hundred eighty-six but
before nineteen hundred ninety-six, its unincorporated business  taxable
income can reasonably be expected to exceed fifteen thousand dollars;
  (2)  for  taxable  years beginning in nineteen hundred ninety-six, its
unincorporated business taxable income can  reasonably  be  expected  to
exceed twenty thousand dollars; [and]
  (3)  for taxable years beginning after nineteen hundred ninety-six BUT
BEFORE TWO THOUSAND NINE, its estimated tax can reasonably  be  expected
to exceed one thousand eight hundred dollars; AND
  (4)  FOR  TAXABLE  YEARS BEGINNING AFTER TWO THOUSAND EIGHT, ITS ESTI-
MATED TAX CAN REASONABLY BE  EXPECTED  TO  EXCEED  THREE  THOUSAND  FOUR
HUNDRED DOLLARS.
  S  4.  Subdivision (a) of section 11-514 of the administrative code of
the city of New York, as amended by chapter 481 of the laws of 1997,  is
amended to read as follows:
  (a)  General.  On  or  before  the  fifteenth  day of the fourth month
following the close of a taxable year, an unincorporated business income
tax return shall be made and filed, and the balance of any tax shown  on
the  face  of  such return, not previously paid as installments of esti-
mated tax, shall be paid:
  (1) by or for every unincorporated business, for taxable years  begin-
ning after nineteen hundred eighty-six but before nineteen hundred nine-
ty-seven,  having  unincorporated  business gross income, determined for
purposes of this subdivision without any deduction for the cost of goods
sold or services performed, of more than ten thousand dollars, or having
any amount of unincorporated business taxable income;
  (2) by or for every partnership, for  taxable  years  beginning  after
nineteen  hundred  ninety-six BUT BEFORE TWO THOUSAND NINE, having unin-
corporated business gross income, determined for purposes of this subdi-
vision without any deduction for the cost  of  goods  sold  or  services
performed, of more than twenty-five thousand dollars, or having unincor-
porated  business  taxable income of more than fifteen thousand dollars;
[and]
  (3) by or for every unincorporated business other than a  partnership,
for taxable years beginning after nineteen hundred ninety-six BUT BEFORE
TWO  THOUSAND  NINE, having unincorporated business gross income, deter-
mined for purposes of this subdivision without  any  deduction  for  the
cost  of  goods  sold  or  services performed, of more than seventy-five
thousand dollars, or having unincorporated business  taxable  income  of
more than thirty-five thousand dollars; AND

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  (4)  BY OR FOR EVERY UNINCORPORATED BUSINESS, FOR TAXABLE YEARS BEGIN-
NING AFTER TWO THOUSAND  EIGHT,  HAVING  UNINCORPORATED  BUSINESS  GROSS
INCOME,   DETERMINED  FOR  PURPOSES  OF  THIS  SUBDIVISION  WITHOUT  ANY
DEDUCTION FOR THE COST OF GOODS SOLD OR SERVICES PERFORMED, OF MORE THAN
NINETY-FIVE THOUSAND DOLLARS.
  S  5.  This  act shall take effect immediately; provided, however that
sections one and two of this act shall be deemed to have  been  in  full
force and effect on and after January 1, 2009.