Assembly Bill A10350

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

                                  10350

                          I N  A S S E M B L Y

                              May 24, 2012
                               ___________

Introduced  by  M. of A. KOLB -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to establishing the Hire-NY tax
  credit (Part A); to amend the tax law, in relation to a small business
  tax credit (Part B); to amend the tax law, in  relation  to  qualified
  New York manufacturers (Part C); and to repeal article 21 and subdivi-
  sion (b) of section 524 of the tax law relating to highway use tax; to
  amend  the canal law, the highway law, the public authorities law, the
  tax law, the vehicle and traffic law, and the state  finance  law,  in
  relation  to  making technical changes relating thereto; and to repeal
  certain provisions of the state finance law relating thereto (Part D)

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

  Section 1. This act enacts into law components of legislation relating
to  "Work-NY".  Each component is wholly contained within a Part identi-
fied as Parts A through  D.  The  effective  date  for  each  particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing  the  effective date of the Part, which makes reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

  Section  1.  The tax law is amended by adding a new section 37 to read
as follows:
  S 37. HIRE-NY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER,  WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW  EMPLOYEE.
THE  CREDIT  SHALL  NOT  BE  MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW

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

                                                           LBD15927-01-2

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EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A  NEW  EMPLOYEE  HAS  BEEN
HIRED  FOR  LESS  THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE  YEARS  OF  CREDIT  ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS  OF
EMPLOYMENT. THE TAXPAYER MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS WITH
THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B) UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND THIRTEEN
AND  TWO  THOUSAND FOURTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
INSURANCE BENEFITS AT THE TIME OF HIRE,  AN  ADDITIONAL  THREE  THOUSAND
DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
  (C)  VETERAN ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND THIRTEEN AND
TWO THOUSAND FOURTEEN IF A NEW EMPLOYEE IS ALSO A VETERAN, AN ADDITIONAL
TWO THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST  FULL  YEAR  OF
EMPLOYMENT.
  (D)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT  CAUSES  THE
TOTAL  NUMBER  OF  EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.
  (3) "BASE EMPLOYMENT" SHALL MEAN  THE  AVERAGE  NUMBER  OF  FULL  TIME
EMPLOYEES  OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (4) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER  OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (5)  "VETERAN"  SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS SERVED ON
ACTIVE DUTY IN THE UNITED STATES ARMY, NAVY, AIR FORCE,  MARINES,  COAST
GUARD,  AND/OR  RESERVES  THEREOF,  AND/OR  THE ARMY NATIONAL GUARD, AIR
NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK  NAVAL  MILITIA,  AND
WHO  IS  CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH SERVICE BY
HONORABLE DISCHARGE, OR WHO HAS BEEN FURLOUGHED TO THE RESERVE  AND  WHO
SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
  (E)  REPLACEMENT  EMPLOYEES.  IF A NEW EMPLOYEE FOR WHICH A CREDIT WAS
EARNED LEAVES THE PAYROLL AND AN EMPLOYEE IS HIRED  WHICH  BRINGS  TOTAL
EMPLOYMENT  ABOVE  BASE  EMPLOYMENT  BUT  AT  OR BELOW CREDIT EMPLOYMENT
LEVEL, THE CREDIT ELIGIBILITY PERIOD FOR SUCH EMPLOYEE  SHALL  BE  THREE
YEARS  MINUS  THE  AMOUNT  OF  TIME (ROUNDED TO THE NEXT FULL MONTH) THE
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
  (F) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO  A  TAXPAYER  FOR
ANY  NEW  EMPLOYEE  IF  THE  TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASES IN EMPLOYMENT.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45. HIRE-NY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER  WILL  BE
ALLOWED  A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
SUBDIVISION  ONE  OF  THIS  SECTION.  HOWEVER,  IF  THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX  OF

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THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE PROVISIONS OF SUBSECTION (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTANDING,  NO
INTEREST WILL BE PAID THEREON.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) HIRE-NY TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A  CREDIT,  TO
THE  EXTENT  ALLOWED UNDER SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
follows:
(XXXIV) HIRE-NY TAX CREDIT           AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (UU)                SUBDIVISION FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.

                                 PART B

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (vv) to read as follows:
  (VV) SMALL BUSINESS TAX CREDIT.  (1)  GENERAL.  A  QUALIFIED  TAXPAYER
SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL
TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
  (A) "QUALIFIED TAXPAYER" SHALL MEAN A SMALL  BUSINESS  AS  DEFINED  BY
SECTION  ONE  HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW AND WHO
HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITES STATES.
  (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.

                                 PART C

  Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
section  210  of the tax law, as added by section 1 of part C of chapter
56 of the laws of 2011, is amended to read as follows:
  (vi) for taxable years beginning on or after January thirty-first, two
thousand seven, the amount prescribed by this paragraph for  a  taxpayer
which  is  a  qualified  New York manufacturer, shall be computed at the
rate of six and one-half (6.5) percent  of  the  taxpayer's  entire  net
income  base. For taxable years beginning on or after January first, two
thousand twelve [and before January first, two  thousand  fifteen],  the
amount  prescribed  by this paragraph for a taxpayer which is [an eligi-

A. 10350                            4

ble] A qualified New York manufacturer shall be computed at the rate  of
three and one-quarter (3.25) percent of the taxpayer's entire net income
base.  The  term  "manufacturer"  shall mean a taxpayer which during the
taxable  year is principally engaged in the production of goods by manu-
facturing, processing, assembling, refining, mining,  extracting,  farm-
ing,  agriculture, horticulture, floriculture, viticulture or commercial
fishing. However, the generation and distribution  of  electricity,  the
distribution of natural gas, and the production of steam associated with
the  generation  of electricity shall not be qualifying activities for a
manufacturer under this subparagraph. Moreover, the combined group shall
be considered a "manufacturer" for purposes of this subparagraph only if
the combined group during the taxable year is principally engaged in the
activities set forth in this paragraph, or any  combination  thereof.  A
taxpayer  or  a  combined group shall be "principally engaged" in activ-
ities described above if, during  the  taxable  year,  more  than  fifty
percent of the gross receipts of the taxpayer or combined group, respec-
tively,  are  derived  from  receipts from the sale of goods produced by
such activities. In computing a combined group's gross receipts,  inter-
corporate  receipts  shall be eliminated. A "qualified New York manufac-
turer" is a manufacturer  which  has  property  in  New  York  which  is
described in clause (A) of subparagraph (i) of paragraph (b) of subdivi-
sion  twelve  of  this section and either (I) the adjusted basis of such
property for federal income tax purposes at the  close  of  the  taxable
year  is  at  least  one  million  dollars  or  (II) all of its real and
personal property is located in New York. In addition, a "qualified  New
York  manufacturer"  means  a  taxpayer  which is defined as a qualified
emerging technology company under paragraph (c) of  subdivision  one  of
section  thirty-one  hundred two-e of the public authorities law regard-
less of the ten million dollar limitation expressed in subparagraph  one
of  such paragraph (c). [The commissioner shall establish guidelines and
criteria that specify requirements by which a manufacturer may be  clas-
sified  as  an  eligible  qualified New York manufacturer.  Criteria may
include but not be limited to factors such as regional unemployment, the
economic impact that manufacturing has  on  the  surrounding  community,
population decline within the region and median income within the region
in  which  the manufacturer is located. In establishing these guidelines
and criteria, the commissioner shall endeavor that the total annual cost
of the lower rates shall not exceed twenty-five million dollars.]
  S 2. Subparagraph 1 of paragraph (b) of subdivision 1 of  section  210
of  the  tax  law, as amended by section 1 of part GG-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
  (1) The amount prescribed by this paragraph for taxable  years  begin-
ning  before January first, two thousand eight shall be computed at .178
percent for each dollar of the taxpayer's total business and  investment
capital, or the portion thereof allocated within the state as hereinaft-
er  provided. For taxable years beginning on or after January first, two
thousand eight,  the  amount  prescribed  by  this  paragraph  shall  be
computed at .15 percent for each dollar of the taxpayer's total business
and  investment  capital,  or  the  portion thereof allocated within the
state as hereinafter provided. However, in the  case  of  a  cooperative
housing  corporation as defined in the internal revenue code, the appli-
cable rate shall be .04 percent.   FOR TAXABLE  YEARS  BEGINNING  ON  OR
AFTER  JANUARY FIRST, TWO THOUSAND TWELVE, THE AMOUNT PRESCRIBED BY THIS
PARAGRAPH FOR A TAXPAYER WHICH IS  A  QUALIFIED  NEW  YORK  MANUFACTURER
SHALL  BE  COMPUTED  AT THE RATE OF .075 PERCENT OF THE TAXPAYER'S TOTAL
BUSINESS AND INVESTMENT CAPITAL, OR THE PORTION THEREOF ALLOCATED WITHIN

A. 10350                            5

THE STATE  AS  HEREINAFTER  PROVIDED.  In  no  event  shall  the  amount
prescribed by this paragraph exceed three hundred fifty thousand dollars
for  qualified  New  York  manufacturers and for all other taxpayers ten
million  dollars  for taxable years beginning on or after January first,
two thousand eight but before January first, two thousand eleven and one
million dollars for taxable years beginning on or after  January  first,
two thousand eleven.
  S 3. Clause (B) of subparagraph (ii) of paragraph (c) of subdivision 1
of  section  210  of  the  tax law, as amended by section 2 of part C of
chapter 56 of the laws of 2011, is amended to read as follows:
  (B) For taxable years beginning on or after January first,  two  thou-
sand twelve [and before January first, two thousand fifteen], the amount
prescribed  by  this  paragraph  for  [an eligible] A qualified New York
manufacturer shall be computed at the rate  of  seventy-five  hundredths
(.75)  percent  of  the  taxpayer's  minimum  taxable  income  base. For
purposes of  this  clause,  the  term  "[eligible]  qualified  New  York
manufacturer"  shall  have  the  same meaning as in subparagraph (vi) of
paragraph (a) of this subdivision.
  S 4. Subparagraph 5 of paragraph (d) of subdivision 1 of  section  210
of  the  tax  law,  as added by section 3 of part C of chapter 56 of the
laws of 2011, is amended to read as follows:
  (5) For taxable years beginning on or after January first,  two  thou-
sand  twelve  [and  before  January  first,  two  thousand fifteen], the
amounts prescribed in subparagraphs one and four of  this  paragraph  as
the  fixed  dollar  minimum  tax  for [an eligible] A qualified New York
manufacturer shall be one-half of the amounts stated in  those  subpara-
graphs.   For purposes of this subparagraph, the term "[eligible] quali-
fied New York manufacturer" shall have the same meaning as  in  subpara-
graph (vi) of paragraph (a) of this subdivision.
  S 5. This act shall take effect immediately.

                                 PART D

  Section 1. Article 21 of the tax law is REPEALED.
  S 2. Paragraph (e) of subdivision 7 of section 30 of the canal law, as
amended  by  chapter  335  of  the  laws  of 2001, is amended to read as
follows:
  (e) No such certificate authorizing or  approving  the  first  partial
payment  or  any  final  payment  to  a foreign contractor shall be made
unless such contractor shall furnish satisfactory proof that  all  taxes
due  the  commissioner  of taxation and finance by such contractor under
the provisions of or pursuant to a law enacted pursuant to the authority
of article nine, nine-A,  twelve-A,  [twenty-one,]  twenty-two,  twenty-
eight,  twenty-nine or thirty of the tax law have been paid. The certif-
icate of the commissioner of taxation and finance to the effect that all
such taxes have been paid shall  be,  for  purpose  of  this  paragraph,
conclusive  proof  of  the  payment  of  such  taxes.  The term "foreign
contractor" as used in this subdivision means, in the case of  an  indi-
vidual,  a  person who is not a resident of this state, in the case of a
partnership, one having one or more partners  not  a  resident  of  this
state,  and  in  the  case of a corporation, one not organized under the
laws of this state.
  S 3. Paragraph (e) of subdivision 7 of section 38 of the highway  law,
as amended by chapter 196 of the laws of 1981 and as relettered by chap-
ter 153 of the laws of 1984, is amended to read as follows:

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  (e)  No  such  certificate  approving or authorizing the first partial
payment or any final payment to  a  foreign  contractor  shall  be  made
unless  such  contractor shall furnish satisfactory proof that all taxes
due the state tax commission by such contractor, under the provisions of
or  pursuant to a law enacted pursuant to the authority of article nine,
[nine-a] NINE-A, [twelve-a] TWELVE-A, [sixteen, sixteen-a,  twenty-one,]
twenty-two,  [twenty-three,]  twenty-eight, twenty-nine or thirty of the
tax law [or article two-E of the general city law] have been  paid.  The
certificate  of  the  state  tax  commission to the effect that all such
taxes have been paid shall be, for purpose of this paragraph, conclusive
proof of the payment of such taxes. The  term  "foreign  contractor"  as
used  in  this subdivision means, in the case of an individual, a person
who is not a resident of this state, in the case of a  partnership,  one
having  one  or  more  partners not a resident of this state, and in the
case of a corporation, one not organized under the laws of this state.
  S 4. Paragraph (c) of subdivision 1 and subdivision 9 of  section  385
of the public authorities law, paragraph (c) of subdivision 1 as amended
by chapter 129 of the laws of 1995, subdivision 9 as added by chapter 56
of the laws of 1993, are amended to read as follows:
  (c)  Such obligations shall be issued or incurred with the approval of
the director of the budget and  shall  be  special  obligations  of  the
authority  secured  by and payable solely out of amounts appropriated by
the legislature as authorized pursuant to section eighty-nine-b  of  the
state finance law without recourse against any other assets, revenues or
funds  of  or other payments due to the authority. Upon payments of such
appropriated amounts from  the  fund  established  pursuant  to  section
eighty-nine-b  of the state finance law to the account of the authority,
such funds may be pledged by the authority to secure  its  bonds,  notes
and  other  obligations  authorized by paragraph (b) of this subdivision
and shall be held free and clear of any claim by any person arising  out
of  or in connection with articles twelve-A[,] AND thirteen-A [and twen-
ty-one] of the tax law. Without limiting the generality of the foregoing
and without limiting the rights and duties of the commissioner of  taxa-
tion  and finance under articles twelve-A[,] AND thirteen-A [and twenty-
one] of the tax law, no taxpayer, or any  other  person,  including  the
state, shall have any right or claim against the authority or any of its
bondholders  to  any  moneys appropriated and transferred from the dedi-
cated highway and bridge trust fund established by section eighty-nine-b
of the state finance law for or in respect of a refund, rebate,  credit,
reimbursement  or  other  repayment of taxes paid under such articles of
the tax law.
  9. Nothing contained in this section shall be deemed to  restrict  the
right  of the state to amend, repeal, modify or otherwise alter statutes
imposing or relating to any taxes or fees, including the  taxes  imposed
pursuant  to  section  two  hundred  eighty-four[, articles] AND ARTICLE
thirteen-A [and twenty-one] of the tax law and fees imposed  by  section
four hundred one of the vehicle and traffic law. The authority shall not
include within any resolution, contract or agreement with holders of the
bonds, notes and other obligations issued under this title any provision
which provides that a default occurs as a result of the state exercising
its right to amend, repeal, modify or otherwise alter any such taxes and
fees.
  S  5. Subparagraph 11 of paragraph j of subdivision 1 of section 54 of
the state finance law is REPEALED.
  S 6. Subdivisions twentieth and twenty-sixth of section 171 of the tax
law, subdivision twentieth as amended by chapter  282  of  the  laws  of

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1986,  subdivision  twenty-sixth as amended by chapter 61 of the laws of
1989 and paragraph a of subdivision twenty-sixth as amended by section 1
of subpart D of part V-1 of chapter 57 of the laws of 2009, are  amended
to read as follows:
  Twentieth.  Have  authority,  of  his  own  motion, to abate any small
unpaid balance of an assessment of tax,  or  any  liability  in  respect
thereof, under articles twelve-A, eighteen, OR twenty [or twenty-one] of
this  chapter,  if  such  commissioner  determines  under  uniform rules
prescribed by him that the administration and collection costs  involved
would  not  warrant  collection of the amount due. He may also abate, of
his own motion, the unpaid portion of the  assessment  of  any  of  such
taxes,  or  any  liability  in  respect  thereof,  which is excessive in
amount, or is assessed after the expiration of the period of  limitation
properly applicable thereto, or is erroneously or illegally assessed. No
claim  for  abatement  under  this subdivision shall be filed for any of
such taxes.
  Twenty-sixth.  a. Set the overpayment and underpayment rates of inter-
est for purposes of articles twelve-A, eighteen, AND twenty  [and  twen-
ty-one]  of this chapter. Such rates shall be the overpayment and under-
payment rates of interest set pursuant to subsection (e) of section  one
thousand ninety-six of this chapter, but the underpayment rate shall not
be less than seven and one-half percent per annum. Any such rates set by
such  commissioner  shall  apply to taxes, or any portion thereof, which
remain or become due or overpaid (other  than  overpayments  under  such
article  twenty  and  not including reimbursements, if any, under any of
such articles) on or after the date on which such rates become effective
and shall apply only with respect to interest computed or computable for
periods or portions of periods occurring in the period during which such
rates are in effect. In computing the amount of any interest required to
be paid under such articles by such commissioner or by the taxpayer,  or
any  other  amount  determined  by reference to such amount of interest,
such interest and such amount shall be compounded daily.
  b. Cross-reference. For  provisions  relating  to  the  power  of  the
commissioner of taxation and finance to abate small amounts of interest,
see subdivision twentieth of this section.
  S  7.  Subdivision  1  of  section 171-a of the tax law, as amended by
section 1 of part R of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except as otherwise provided in section four hundred eighty-two  there-
of),  [twenty-one,]  twenty-two,  twenty-six, twenty-six-B, twenty-eight
(except as otherwise provided in section eleven hundred  two  or  eleven
hundred  three thereof), twenty-eight-A, thirty-one (except as otherwise
provided in section fourteen hundred  twenty-one  thereof),  thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in  one  account  with  such  responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of  the
comptroller.  Such  an account may be established in one or more of such
depositories. Such deposits shall be kept separate and  apart  from  all
other  money in the possession of the comptroller. The comptroller shall

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require adequate security from  all  such  depositories.  Of  the  total
revenue  collected  or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount  as  the
commissioner may determine to be necessary for refunds or reimbursements
under  such  articles  of  this chapter [and article ten thereof] out of
which amount the comptroller shall pay any refunds or reimbursements  to
which  taxpayers shall be entitled under the provisions of such articles
of this chapter [and article ten  thereof].  The  commissioner  and  the
comptroller  shall  maintain  a system of accounts showing the amount of
revenue collected or received from each of the  taxes  imposed  by  such
articles.  The  comptroller,  after  reserving  the  amount  to pay such
refunds or reimbursements, shall, on or before the  tenth  day  of  each
month, pay into the state treasury to the credit of the general fund all
revenue deposited under this section during the preceding calendar month
and  remaining  to  the  comptroller's  credit  on  the last day of such
preceding month, (i) except that the comptroller shall pay to the  state
department of social services that amount of overpayments of tax imposed
by  article  twenty-two  of this chapter and the interest on such amount
which is certified to the comptroller by the commissioner as the  amount
to  be  credited against past-due support pursuant to subdivision six of
section one hundred seventy-one-c of this chapter, (ii) and except  that
the  comptroller  shall  pay  to  the  New  York  state higher education
services corporation and the state university of New York  or  the  city
university  of  New York respectively that amount of overpayments of tax
imposed by article twenty-two of this chapter and the interest  on  such
amount  which is certified to the comptroller by the commissioner as the
amount to be credited against the amount of  defaults  in  repayment  of
guaranteed  student  loans and state university loans or city university
loans pursuant to subdivision five of section one hundred  seventy-one-d
and  subdivision  six of section one hundred seventy-one-e of this chap-
ter, (iii) and except further that, notwithstanding any law,  the  comp-
troller  shall  credit  to  the  revenue  arrearage account, pursuant to
section ninety-one-a of the state finance law, that amount  of  overpay-
ment  of  tax imposed by article nine, nine-A, twenty-two, thirty, thir-
ty-A, thirty-B, thirty-two or thirty-three  of  this  chapter,  and  any
interest  thereon,  which is certified to the comptroller by the commis-
sioner as the amount to be credited against a past-due legally enforcea-
ble debt owed to a state agency pursuant to paragraph (a) of subdivision
six of section one hundred  seventy-one-f  of  this  article,  provided,
however, he shall credit to the special offset fiduciary account, pursu-
ant  to  section  ninety-one-c of the state finance law, any such amount
creditable as a liability as set forth in paragraph (b)  of  subdivision
six  of  section  one  hundred  seventy-one-f  of this article, (iv) and
except further that the comptroller shall pay to the city  of  New  York
that amount of overpayment of tax imposed by article nine, nine-A, twen-
ty-two,  thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
chapter and any interest thereon that is certified to the comptroller by
the commissioner as the amount to be credited against city of  New  York
tax  warrant judgment debt pursuant to section one hundred seventy-one-1
of this article, (v) and except further that the comptroller  shall  pay
to  a  non-obligated spouse that amount of overpayment of tax imposed by
article twenty-two of this chapter and the interest on such amount which
has been credited pursuant to section  one  hundred  seventy-one-c,  one
hundred  seventy-one-d,  one hundred seventy-one-e, one hundred seventy-
one-f or one hundred seventy-one-l of this article and which  is  certi-
fied  to the comptroller by the commissioner as the amount due such non-

A. 10350                            9

obligated spouse pursuant to paragraph six of subsection (b) of  section
six  hundred  fifty-one  of this chapter; and (vi) the comptroller shall
deduct a like amount which the comptroller shall pay into  the  treasury
to  the  credit of the general fund from amounts subsequently payable to
the department of social services, the state university of New York, the
city university of New York, or the  higher  education  services  corpo-
ration,  or  the  revenue  arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c  of  the  state
finance  law, as the case may be, whichever had been credited the amount
originally withheld from such overpayment, and  (vii)  with  respect  to
amounts  originally  withheld  from such overpayment pursuant to section
one hundred seventy-one-l of this article and paid to the  city  of  New
York,  the  comptroller shall collect a like amount from the city of New
York.
  S 8. Subdivisions (c) and (d) of section 522 of the tax law, as  added
by chapter 170 of the laws of 1994, are amended to read as follows:
  (c)  Denial,  suspension  and revocation. The commissioner, for cause,
may deny a license and suspend or revoke any license issued  under  this
section, after an opportunity for a hearing has been afforded the carri-
er;  provided,  however,  that  a  license  may  be  denied or it may be
suspended or revoked for failure to file a return as  required  pursuant
to this article or for nonpayment of moneys due under this article prior
to  a  hearing. A violation of any of the provisions of this article [or
article twenty-one of this chapter] or of any rule or regulation of  the
commissioner promulgated under this article [or such article twenty-one]
shall  constitute sufficient cause for the denial, suspension or revoca-
tion of a license. In addition, if the commissioner enters into a  coop-
erative  agreement  with  other  jurisdictions  pursuant to section five
hundred twenty-eight of this  article,  the  commissioner  may  deny  an
application  for license where a license previously issued to the appli-
cant is under suspension or revocation by any member jurisdiction and  a
license  may  be  revoked  or  suspended for failure to comply with such
agreement. A denial, revocation or suspension  of  a  license  shall  be
final  unless  the applicant or licensee shall, within thirty days after
the giving of notice of such denial, revocation or suspension,  petition
the  division  of  tax  appeals for a hearing in accordance with article
forty of this chapter. If the commissioner  enters  into  a  cooperative
agreement  pursuant to such section five hundred twenty-eight, notice of
a hearing shall be given and a hearing held within any time restrictions
prescribed in such agreement.
  (d) Trip permits. In lieu of the license and  decal  provided  for  in
subdivision  (a)  of  this  section,  any carrier, except as hereinafter
limited, may apply to the commissioner for a trip permit for any  quali-
fied  motor  vehicle to be operated by him OR HER on the public highways
of this state. Application for the trip permit shall be made on  a  form
prescribed by the commissioner and shall contain such information as the
commissioner  shall  require.  The application shall be accompanied by a
fee of twenty-five dollars for each qualified motor vehicle.  Each  trip
permit shall be valid for a period of seventy-two hours from the time of
its  issuance. The issuance of a trip permit for a qualified motor vehi-
cle shall exempt the carrier from the requirement of filing returns  and
payment  of  the taxes imposed by this article and section three hundred
one-h of this chapter on the operation of such qualified  motor  vehicle
for  the effective period of the permit but no refund application may be
filed on account of trip permit applications. [Provided,  however,  that
in order for any person liable for the tax to claim such exemption, such

A. 10350                           10

person  must  retain  a  copy  of the trip permit in his records for the
complete period of time required by section five hundred seven  of  this
chapter.]  A  carrier may not apply for more than ten trip permits under
this section during a single calendar year.
  S  9.  Section 528 of the tax law, as added by chapter 170 of the laws
of 1994, subdivision (b) as amended by section 35 of part K  of  chapter
61 of the laws of 2011, is amended to read as follows:
  S  528.  Procedure,  administration  and disposition of revenues.  (a)
[General. The provisions of subdivision two of section five hundred  six
and  sections  five  hundred  seven through five hundred fifteen of this
chapter (excluding sections five hundred eight, five hundred twelve  and
five  hundred  thirteen)  shall  apply to the provisions of this article
with the same force and effect as if the language  of  such  subdivision
and  sections  had  been  incorporated in full into this article and had
expressly referred to the tax under this article, except to  the  extent
that  any  such provision is either inconsistent with or not relevant to
this article or inconsistent with a provision of any agreement which the
commissioner enters into pursuant to subdivision (b)  of  this  section,
with such modification as may be necessary to adapt the language of such
provisions  to  the  tax  imposed  by  this  article,  provided that (1)
notwithstanding such section five hundred ten and  subdivision  four  of
section  two  thousand six of this chapter, a determination, as provided
in such section five hundred ten, relating to the tax  imposed  by  this
article,  shall finally and conclusively fix such tax, unless the person
against whom it is assessed shall, within thirty days after  the  giving
of  notice  of  such determination, petition the division of tax appeals
for a hearing, or unless the  commissioner  on  the  commissioner's  own
motion  shall  redetermine the same; (2) the term "vehicular unit" shall
be read as "qualified motor vehicle"; (3)  if  the  commissioner  enters
into  a  cooperative  agreement  under  this  section,  the reference in
section five hundred fourteen-a of this chapter  to  the  United  States
postmark  shall  include a postmark made by the Canadian postal service;
and (4) if the commissioner enters into a  cooperative  agreement  under
this  section, for purposes of applying subdivision four of section five
hundred fourteen of this chapter, the banks,  banking  houses  or  trust
companies  which  may  be designated by the commissioner may include any
such banks, banking houses or  trust  companies  designated  or  seeking
designation  by  other member jurisdictions. For purposes of determining
the amount of tax due in accordance with section  five  hundred  ten  of
this  chapter  as  incorporated  by  this  subdivision, any return filed
before the last day prescribed for its filing  shall  be  deemed  to  be
filed  on  such  last day. The commissioner is authorized to provide for
the joint administration, in whole or in part, of  the  tax  imposed  by
article twenty-one of this chapter and the tax imposed by this article.
  (b)]   Cooperative   agreements.   Notwithstanding   any  inconsistent
provision of law, the commissioner is authorized to enter into a cooper-
ative agreement with other states, the District of Columbia or provinces
or territories of Canada for the administration of the  tax  imposed  by
this article and similar taxes imposed by other member jurisdictions and
for  the  reporting  and  payment  of  tax  to a single base state and a
proportional sharing of revenue of taxes relating to fuel use among  the
jurisdictions where a qualified motor vehicle is operated. The agreement
may  provide  for  determining  the  base  state  for carriers, carriers
records requirements, audit procedures, exchange of information, persons
eligible for tax licensing, defining qualified motor vehicles, determin-
ing if bonding is required and requiring bonds to secure the tax imposed

A. 10350                           11

by this article and similar taxes imposed by other member jurisdictions,
specifying reporting requirements and periods including defining uniform
penalty and interest rates for late reporting, determining  methods  for
collecting  and  forwarding  of taxes, interest and penalties to another
jurisdiction, notice and timing of hearings and other provisions as will
facilitate the administration of the agreement.   The commissioner  may,
pursuant  to  the terms of the agreement, forward to the proper officers
of another member jurisdiction any  information  in  the  commissioner's
possession  relating to the manufacture, receipt, sale, use, transporta-
tion or shipment of motor fuel or diesel motor fuel by  any  person  and
may share any information relating to the administration of taxes pursu-
ant  to the agreement with such officers.  The commissioner may disclose
to the proper officers of another member jurisdiction  the  location  of
offices,  motor  vehicles and other real and personal property of carri-
ers. The agreement may provide for each member jurisdiction to audit the
records of persons based in the member jurisdiction and determine  taxes
due each member jurisdiction. The commissioner may adopt rules and regu-
lations  for  the  administration  and  enforcement of the agreement. In
connection with the administration of taxes  under  such  a  cooperative
agreement,  the  commissioner  may  enter  into  an agreement with other
member jurisdictions and any banks, banking houses, trust  companies  or
other similar institutions with respect to the payment of any tax, fees,
penalty  or  interest  to such banks, banking houses, trust companies or
similar institutions and the filing of returns  and  reports  with  such
banks,  banking houses, trust companies or similar institutions as agent
of the commissioner and such other member jurisdictions. Pursuant  to  a
written  agreement made with one or more of the appropriate departments,
agencies, officers or  instrumentalities  of  other  jurisdictions,  the
commissioner  may  let  contracts  for provision of such services to the
department and to one or more of such entities of  other  jurisdictions;
provided,  that provisions shall be made in all such agreements with the
participating governmental entities and in all such contracts let by the
commissioner for the assumption by each  of  the  participating  govern-
mental  entities  of  sole responsibility for its proportionate share of
the costs under  the  terms  of  such  contract.  The  commissioner  may
contract  for  such services jointly with and pursuant to a contract let
by the appropriate department, agency,  officer  or  instrumentality  of
another  jurisdiction;  provided that (1) the commissioner shall approve
the proposed  terms  and  conditions  of  all  such  joint  governmental
contracts,  (2) the letting of such joint governmental contract shall be
based on invitation of  competitive  bids  or  proposals,  and  (3)  the
participation  by  the  department  in  any such joint contract shall be
preceded by an evaluation and finding in  writing  by  the  commissioner
that a reasonable potential exists for the saving of costs by the state,
by means of such joint governmental contract.
  [(c)]  (B)  Rate  changes.  In the event the rate of tax imposed under
this article or under section three hundred one-h of this chapter or the
rate of surcharge imposed on such tax changes and such change  does  not
coincide  with the beginning of a reporting period, the rates of tax and
surcharge for the reporting period which includes such change  shall  be
equal  to  the  sum of the respective rates otherwise applicable in each
month of the reporting period divided by the number  of  months  in  the
reporting period.
  [(d)] (C) Construction. In the event the commissioner, pursuant to the
authority  of  this  article,  enters  into  a  cooperative agreement as
provided in this section, the commissioner shall carry out any provision

A. 10350                           12

of such agreement required for continued New York state participation in
such agreement, to the extent not inconsistent with a specific  require-
ment  of this article or any other provision of the laws and the consti-
tution of the state of New York.
  S 10. Section 1815 of the tax law, as amended by section 29 of subpart
I  of part V-1 of chapter 57 of the laws of 2009, clause (i) of subpara-
graph (A) of paragraph 1 of subdivision (a)  as  separately  amended  by
section  5  of part K-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  S 1815. Highway use and fuel use taxes. - (a) Violations. (1) It shall
be unlawful for any person to:
  (A) [(i) Use or cause or permit to be used, any public highway in this
state for the operation of a motor vehicle subject to the provisions  of
article  twenty-one  of  this  chapter  without  first  applying for and
obtaining the certificate of registration required under such article or
a decal that has been suspended or revoked or  that  was  issued  for  a
motor  vehicle other than the one on which affixed. The operation of any
motor vehicle on any public  highway  of  this  state  without  a  decal
required under such article shall be presumptive evidence that a certif-
icate  of  registration  or  decal  has not been obtained for such motor
vehicle;
  (ii)] Use or cause or permit to be used, any public  highway  in  this
state  for  the  operation  of  a qualified motor vehicle subject to the
provisions of article twenty-one-A of this chapter without first obtain-
ing the license and decal required pursuant to such article or to  carry
or  cause  or  permit  to  be carried upon any qualified motor vehicle a
license or decal which has been suspended or revoked or which was issued
for a qualified motor vehicle other than the one on which  carried.  The
operation  of  any qualified motor vehicle on any public highway of this
state without carrying thereon the license or decal required under  such
article  shall  be  presumptive evidence that a license or decal has not
been obtained for such qualified motor vehicle;
  (B) [Operate, or cause or permit to be operated, on any public highway
any motor vehicle subject to the provisions  of  article  twenty-one  of
this  chapter having an actual gross or unloaded weight in excess of the
gross or unloaded weight set forth on the  certificate  of  registration
issued for such motor vehicle;
  (C)] Fail to deliver or surrender, pursuant to the provisions of arti-
cle  [twenty-one  or]  twenty-one-A of this chapter or any rule or regu-
lation promulgated by the commissioner, a certificate of registration or
license or decal to such commissioner, or any person  directed  by  such
commissioner to take possession thereof;
  [(D)]  (C)  Fail  to  keep  records of operations of motor vehicles or
qualified motor vehicles as the commissioner shall prescribe;
  [(E)] (D) Violate any other provision of article [twenty-one or] twen-
ty-one-A of this chapter or any rule or  regulation  promulgated  there-
under.
  (2)  Any person who violates any provision of this subdivision, upon a
first conviction shall be subject to a fine of not less than one hundred
dollars or more than two hundred fifty dollars; and  upon  a  second  or
subsequent  conviction  to  a  fine  of  not less than two hundred fifty
dollars or more than five hundred dollars or  by  imprisonment  for  not
more than ten days. Except as otherwise provided by law such a violation
shall  not  be  a  crime  and the penalty or punishment imposed therefor
shall not be deemed for any purpose  a  penal  or  criminal  penalty  or
punishment  and shall not impose any disability upon or affect or impair

A. 10350                           13

the credibility as a witness, or  otherwise,  of  any  person  convicted
thereof.
  (3) For the purposes of conferring jurisdiction upon courts and police
officers,  and  on the officers specified in subdivision four of section
2.10 of the criminal procedure law and on judicial  officers  generally,
such violations shall be deemed traffic infractions and for such purpose
only  all  provisions of law relating to traffic infractions shall apply
to such violations; provided, however, that the  commissioner  of  motor
vehicles,  any  hearing officer appointed by him OR HER, or any adminis-
trative tribunal  authorized  to  hear  and  determine  any  charges  or
offenses  which  are  traffic infractions shall not have jurisdiction of
such infractions.
  (4) Upon the conviction of any person for a violation of  any  of  the
provisions  of  this  subdivision,  the trial court or the clerk thereof
shall within forty-eight hours certify the facts  of  the  case  to  the
commissioner  and  such certificate shall be presumptive evidence of the
facts recited therein. If any such conviction  shall  be  reversed  upon
appeal  therefrom,  the person whose conviction has been so reversed may
serve upon the commissioner a certified copy of the  order  of  reversal
and the commissioner shall thereupon record the same.
  (b) An official weigh slip or ticket issued and certified by any truck
weigher in the employ of the department of transportation or by any duly
licensed  weight  master  shall  constitute  prima facie evidence of the
information therein set forth and of the operation of the vehicle there-
in described upon a public highway and shall be  admissible  before  any
court in any violation proceeding or criminal proceeding.
  S  11.  Paragraph (c) of subdivision 4-a of section 510 of the vehicle
and traffic law, as added by section 10 of part J of chapter 62  of  the
laws of 2003, is amended to read as follows:
  (c) Upon receipt of notification from a traffic and parking violations
agency  of  the  failure  of a person to appear within sixty days of the
return date or new subsequent adjourned date, pursuant to an  appearance
ticket charging said person with a violation of:
  (i)  any  of  the  provisions  of this chapter except one for parking,
stopping or standing and except those violations described in paragraphs
(a), (b), (d), (e) and (f) of subdivision two of section  three  hundred
seventy-one of the general municipal law;
  (ii)  [section five hundred two or subdivision (a) of section eighteen
hundred fifteen of the tax law;
  (iii)] section fourteen-f (except paragraph (b) of subdivision four of
section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
transportation law; or
  [(iv)]  (III)  any  lawful  ordinance or regulation made by a local or
public authority relating to traffic (except one for  parking,  stopping
or  standing)  or the failure to pay a fine imposed for such a violation
by a traffic and parking violations agency, the commissioner or  his  or
her  agent may suspend the driver's license or privileges of such person
pending receipt of notice from the agency that such person has  appeared
in  response  to  such  appearance  ticket  or  has paid such fine. Such
suspension shall take effect no less than thirty days from the day  upon
which  notice  thereof  is  sent by the commissioner to the person whose
driver's license or privileges  are  to  be  suspended.  Any  suspension
issued  pursuant to this paragraph shall be subject to the provisions of
paragraph (j-1) of subdivision two of section five hundred three of this
[chapter] TITLE.

A. 10350                           14

  S 12. Subdivision 3 of section 514 of the vehicle and traffic law,  as
amended  by  section  11 of part J of chapter 62 of the laws of 2003, is
amended to read as follows:
  3.  (a) Upon the failure of a person to appear or answer, within sixty
days of the return date or any subsequent adjourned date, or the failure
to pay a fine imposed by a court, pursuant to a summons charging him  or
her  with  a  violation of any of the provisions of this chapter (except
one for parking, stopping or standing), [section  five  hundred  two  or
five  hundred  twelve  of  the tax law,] section fourteen-f, two hundred
eleven or two hundred twelve of the transportation law or  of  any  law,
ordinance,  rule  or  regulation  made by a local authority, relating to
traffic (except for parking, stopping or standing), the trial  court  or
the clerk thereof shall within ten days certify that fact to the commis-
sioner, in the manner and form prescribed by the commissioner, who shall
record the same in his or her office. Thereafter and upon the appearance
of  any  such  person  in response to such summons or the receipt of the
fine by the court, the trial court or the clerk thereof shall  forthwith
certify that fact to the commissioner, in the manner and form prescribed
by  the  commissioner; provided, however, no such certification shall be
made unless the court has collected the termination  of  suspension  fee
required  to  be  paid pursuant to paragraph (j-1) of subdivision two of
section five hundred three of this [chapter] TITLE.
  (b) Upon the failure of a person to appear  or  answer,  within  sixty
days of the return date or any subsequent adjourned date, or the failure
to  pay a fine imposed by a traffic and parking violations agency pursu-
ant to a summons charging him or her with a violation of:
  (1) any of the provisions of this  chapter  except  one  for  parking,
stopping or standing and except those violations described in paragraphs
(a),  (b),  (d), (e) and (f) of subdivision two of section three hundred
seventy-one of the general municipal law;
  (2) [section five hundred two or subdivision (a) of  section  eighteen
hundred fifteen of the tax law;
  (3)]  section  fourteen-f (except paragraph (b) of subdivision four of
section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
transportation law; or
  [(4)] (3) any lawful ordinance or regulation made by a local or public
authority  relating  to  traffic  (except  one  for parking, stopping or
standing);
the clerk thereof shall within ten days certify that fact to the commis-
sioner, in the manner and form prescribed by the commissioner, who shall
record the same in his or her office. Thereafter and upon the appearance
of any such person in response to such summons or  the  receipt  of  the
fine  by  the  agency,  the traffic and parking violations agency or the
clerk thereof shall forthwith certify that fact to the commissioner,  in
the  manner  and form prescribed by the commissioner; provided, however,
no such certification shall be  made  unless  the  traffic  and  parking
violations  agency  has  collected  the  termination  of  suspension fee
required to be paid pursuant to paragraph (j-1) of  subdivision  two  of
section five hundred three of this [chapter] TITLE.
  S 13. Subdivision (b) of section 524 of the tax law is REPEALED.
  S  14.  Subdivision  (d)  of section 524 of the tax law, as amended by
chapter 309 of the laws of 1996, is amended to read as follows:
  (d) Erroneous payment. Whenever the commissioner shall determine  that
any  moneys  received  under the provisions of this article were paid in
error, he or she may cause the same to be  refunded  or  credited.  Such
moneys  received  under the provisions of this article which the commis-

A. 10350                           15

sioner shall determine were paid in error, may be refunded  or  credited
out  of  funds  in  the custody of the comptroller to the credit of such
taxes provided an application therefor is filed  with  the  commissioner
within  four years from the time the erroneous payment was made[, except
if an agreement under the provisions of section five hundred ten of this
chapter as made applicable to the tax imposed by this article by section
five hundred twenty-eight of this  article  (extending  the  period  for
determination  of  tax imposed by this article) is made within the four-
year period for the filing of an application for refund provided for  in
this  subdivision, the period for filing an application for refund shall
not expire prior to six months after the expiration of the period within
which a determination may be made  pursuant  to  the  agreement  or  any
extension thereof].
  S  15. Section 525 of the tax law, as added by chapter 170 of the laws
of 1994, is amended to read as follows:
  S 525. Exemptions. (a) General. The provisions of this  article  shall
not apply to any qualified motor vehicle[:
  (1)  Which]  WHICH is a road roller, tractor crane, truck crane, power
shovel, road building machine, snow plow, road sweeper, sand spreader or
well driller.
  [(2) Which is described in section five hundred four of this  chapter,
except subdivision four of such section.]
  (b)  Omnibus carriers. (1) An omnibus carrier shall not be required to
apply for a license and decal or decals for a  qualified  motor  vehicle
which  is an omnibus operated on a public highway in this state; except,
if the commissioner enters into a cooperative agreement  under  subdivi-
sion [(b)] (A) of section five hundred twenty-eight of this article, the
commissioner  may, pursuant to such agreement, require such a carrier to
be licensed and obtain such decal or decals with respect to such a vehi-
cle.
  (2) The taxes imposed by this article shall not apply  to  motor  fuel
and  diesel motor fuel used by an omnibus carrier in the operation of an
omnibus in local transit service in this state, as described under para-
graph (d) of subdivision three of section two hundred  eighty-nine-c  of
this chapter, pursuant to a certificate of public convenience and neces-
sity  issued  by  the commissioner of transportation of this state or by
the interstate commerce commission of the United States or pursuant to a
contract, franchise or consent between such carrier and a city having  a
population  of  more than one million inhabitants, or any agency of such
city.
  (c) Effect of cooperative agreement. Notwithstanding subdivisions  (a)
and  (b) of this section, in the event that the commissioner enters into
a cooperative agreement under subdivision  [(b)]  (A)  of  section  five
hundred  twenty-eight  of  this  article,  the  commissioner may issue a
license and decal or decals with respect  to  qualified  motor  vehicles
described in subdivisions (a) and (b) of this section which are based in
this  state  for  the purpose of reporting and payment of tax imposed by
other member jurisdictions with respect to such  qualified  motor  vehi-
cles.
  S  16.  Section 1825 of the tax law, as amended by section 2 of part E
of chapter 25 of the laws of 2009, is amended to read as follows:
  S 1825. Violation of secrecy provisions of the  tax  law.--Any  person
who  violates  the  provisions of subdivision (b) of section twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two hundred eleven, subdivision (a) of section three  hundred  fourteen,
subdivision  one  or  two  of section four hundred thirty-seven, section

A. 10350                           16

four hundred eighty-seven, [subdivision  one  or  two  of  section  five
hundred  fourteen,]  subsection (e) of section six hundred ninety-seven,
subsection (a) of section nine hundred ninety-four, subdivision  (a)  of
section  eleven  hundred forty-six, section twelve hundred eighty-seven,
subdivision (a) of section fourteen hundred eighteen, subsection (a)  of
section fourteen hundred sixty-seven, subdivision (a) of section fifteen
hundred  eighteen, subdivision (a) of section fifteen hundred fifty-five
of this chapter, and subdivision (e) of section 11-1797 of the  adminis-
trative code of the city of New York shall be guilty of a misdemeanor.
  S  17.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 2 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
five,  two  hundred  eighty-nine-e,  three  hundred one-j, [five hundred
fifteen] and eleven hundred sixty-seven of the  tax  law,  section  four
hundred  one  of  the vehicle and traffic law, and section thirty-one of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
pursuant to section fifty-two and subdivisions five, eight and twelve of
section eighty-eight of the highway law, subdivision fifteen of  section
three  hundred  eighty-five of the vehicle and traffic law, section [two
of the chapter] NINE OF PART U1 OF CHAPTER SIXTY-TWO of the laws of  two
thousand  three  that amended this paragraph, subdivision (d) of section
three hundred four-a, paragraph one of subdivision (a)  and  subdivision
(d)  of  section  three  hundred five, subdivision six-a of section four
hundred fifteen and subdivision (g) of section twenty-one hundred  twen-
ty-five of the vehicle and traffic law, section fifteen of this chapter,
excepting  moneys  deposited  with  the  state on account of betterments
performed pursuant to subdivision twenty-seven  or  subdivision  thirty-
five  of  section  ten of the highway law, (iii) any moneys collected by
the department of  transportation  for  services  provided  pursuant  to
agreements  entered into in accordance with section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected  therefor  or
credited or transferred thereto from any other fund, account or source.
  S  18.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 3 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
eighty-nine-e,  three  hundred  one-j, [five hundred fifteen] and eleven
hundred sixty-seven of the tax law, section  four  hundred  one  of  the
vehicle  and traffic law, and section thirty-one of chapter fifty-six of
the laws of nineteen hundred  ninety-three,  (ii)  all  fees,  fines  or
penalties  collected  by  the commissioner of transportation pursuant to
section fifty-two and subdivisions five, eight  and  twelve  of  section
eighty-eight  of  the  highway law, subdivision fifteen of section three
hundred eighty-five of the vehicle and traffic law, section  fifteen  of
this  chapter,  excepting  moneys deposited with the state on account of
betterments performed pursuant to subdivision twenty-seven  or  subdivi-
sion  thirty-five  of  section  ten of the highway law, (iii) any moneys
collected by the department  of  transportation  for  services  provided
pursuant  to  agreements entered into in accordance with section ninety-
nine-r of the general municipal law, and (iv) any other moneys collected

A. 10350                           17

therefor or credited or transferred thereto from any other fund, account
or source.
  S  19.  Subdivision  4  of  section 2006 of the tax law, as amended by
chapter 170 of the laws of 1994, is amended to read as follows:
  4. To provide a hearing as a matter of right, to any  petitioner  upon
such  petitioner's  request,  pursuant to such rules, regulations, forms
and instructions as the tribunal may prescribe, unless a right to such a
hearing is specifically provided for,  modified  or  denied  by  another
provision  of  this  chapter.  Where  such a request is made by a person
seeking review of taxes determined or claimed to be due under this chap-
ter, the liability of such person shall become finally  and  irrevocably
fixed, unless such person, within ninety days from the time such liabil-
ity  is assessed, shall petition the division of tax appeals for a hear-
ing to review such liability [except that, as  provided  in  subdivision
(a)  of  section  five  hundred twenty-eight of this chapter, a determi-
nation relating to the tax imposed by article twenty-one-A of this chap-
ter shall finally and irrevocably fix such tax unless the person against
whom it is assessed shall petition the division of  tax  appeals  for  a
hearing  within  thirty days after the giving of notice of such determi-
nation].
  S 20. This act shall take effect immediately; provided, however,  that
the  amendments to paragraph (a) of subdivision 3 of section 89-b of the
state finance law made by section seventeen of this act shall be subject
to the expiration and reversion of such paragraph pursuant to section 13
of part U1 of chapter 62 of the laws of 2003, as amended, when upon such
date the provisions of section eighteen of this act shall take effect.
  S 2. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction  to
be  invalid  and  after  exhaustion  of all further judicial review, the
judgment shall not affect, impair, or invalidate the remainder  thereof,
but  shall  be  confined in its operation to the clause, sentence, para-
graph, section or part of this act directly involved in the  controversy
in which the judgment shall have been rendered.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through D of this act shall  be
as specifically set forth in the last section of such Parts.