senate Bill S6259D

Signed By Governor
2011-2012 Legislative Session

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year

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Archive: Last Bill Status Via A9059 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 30, 2012 signed chap.59
delivered to governor
returned to assembly
passed senate
3rd reading cal.486
substituted for s6259d
Mar 30, 2012 substituted by a9059d
Mar 29, 2012 ordered to third reading cal.486
Mar 27, 2012 print number 6259d
amend (t) and recommit to finance
Mar 11, 2012 print number 6259c
amend (t) and recommit to finance
Feb 17, 2012 print number 6259b
amend (t) and recommit to finance
Feb 10, 2012 print number 6259a
amend and recommit to finance
Jan 17, 2012 referred to finance

Votes

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Bill Amendments

Original
A
B
C
D (Active)
Original
A
B
C
D (Active)

S6259 - Bill Details

See Assembly Version of this Bill:
A9059D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6259 - Bill Texts

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Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).

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BILL NUMBER:S6259

TITLE OF BILL:

An act
to amend chapter 540 of the laws of 1992, amending the real property tax
law relating to oil and gas charges, in relation to the effective date
of such chapter (Part A);
to amend the real property tax law,
the tax law, the administrative code of the city of New York and the
state finance law, in relation to the suspension of
STAR exemptions and related benefits
of persons who are delinquent
in the payment of outstanding state tax
liabilities (Part B);
to amend the tax law, in relation
to reforming excise tax on
tobacco products, imposing a
fixed rate of tax on loose
tobacco, and imposing a retail
tax on cigars (Part C);
to amend chapter 109 of the laws of 2006, amending the tax law
relating to providing exemptions, reimbursements and credits from
various taxes for certain alternative fuels,
in relation to extending the alternative fuels tax exemptions
(Part D);
to amend the tax law, in relation
to making technical amendments to the tax
treatment of diesel fuel to reflect
industry practice (Part E);
to amend the tax law, in relation to the power of the commissioner of
taxation and finance to
refuse to issue a certificate of authority to collect the sales and
compensating use taxes imposed by article 28 of the tax law
and pursuant to the
authority of article 29 of the tax law (Part F);
to amend the tax law and part U of chapter 61 of the laws of 2011,
amending the real property tax law, the general municipal law, the
public officers law, the tax law, the abandoned property law, the state
finance law and the administrative code of the city of New York,
relating to establishing standards for electronic real property tax
administration, allowing the department of taxation and finance to use
electronic communication means to furnish tax notices and other
documents, mandatory electronic filing of tax documents, debit cards
issued for tax refunds, improving sales tax compliance and repealing
certain provisions of the tax law and the administrative code of the
city of New York relating thereto,
in relation to making permanent, provisions
relating to mandatory electronic filing of tax documents and
improving sales tax compliance; and to repeal certain provisions
of the tax law and the administrative code of the city of New
York relating thereto (Part G);

to amend the tax law, in relation to the personal income tax credits for
solar energy systems equipment and the sales and use tax exemption
provided for such equipment (Part H);
to amend the tax law, in relation to extending the empire state
commercial production tax credit; and to amend part V of chapter 62 of
the laws of 2006 relating to the empire state commercial production tax
credit, in relation to the effectiveness thereof (Part I);
to amend
the public housing law, in relation to the credit against income tax for
persons or entities investing in low-income housing (Part J);
to amend the tax law, in relation to extending the biofuel production tax
credit; and to amend part X of chapter 62 of the laws of 2006, amending
the tax law relating to providing tax credits for biofuel production
plants, in relation to the effectiveness thereof (Part K);
to amend chapter 58 of the laws of 2006, relating to providing an
enhanced earned income tax credit, in relation to the effectiveness
thereof (Part L);
to amend the civil practice law and rules and the debtor and creditor
law, in relation to prohibiting banking institutions from deducting
levy processing fees from tax and child support levy
proceeds (Part M);
to amend the tax law, in relation to tax rates and exclusions under the
metropolitan commuter transportation mobility tax for professional
employer organizations and to amend part B of chapter 56 of the laws of
2011 amending the tax law relating to the tax rates and exclusions under
the metropolitan commuter transportation mobility tax, in relation to
the effectiveness thereof (Part N);
to amend the racing, pari-mutuel wagering and breeding law, in
relation
to licenses for simulcast facilities, sums relating to track
simulcast,
simulcast of out-of-state thoroughbred races, simulcasting of races
run by
out-of-state harness tracks and distributions of wagers; to amend
chapter
281 of the laws of 1994 amending the racing, pari-mutuel wagering and
breeding
law and other laws relating to simulcasting and chapter 346 of
the laws
of 1990 amending the racing, pari-mutuel wagering and breeding law
and other
laws relating to simulcasting and the imposition of certain taxes, in
relation
to extending certain provisions thereof; to amend the racing,
pari-mutuel
wagering and breeding law, in relation to extending certain
provisions
thereof (Part O); and
to amend the tax law, in relation to the
distribution of revenue collected
from the corporate and utilities taxes imposed under sections
183 and 184 of the tax law (Part P)

PURPOSE:

This bill contains provisions needed to implement the Revenue portion
of the 2012-13 Executive Budget.

This memorandum describes Parts A through P of the 2012-13 Article VII
Revenue bill which are described wholly within the parts listed below.

Part A - Extend fees for the establishment of oil and gas unit of
production values.

Purpose:

This bill would extend fees for the establishment of oil and gas unit
of production values by the Department of Taxation and Finance (the
Department).

Statement in Support, Summary of Provisions, Existing Law and
Prior Legislative History:

The Department establishes "unit of production values" which local
assessors must use when assessing oil and gas wells and related
facilities, pursuant to Article 5, Title 5 of the Real Property Tax
Law. This program, which has been in place since 1981, relieves local
assessors of the burden of attaining the necessary expertise to value
these properties, while assuring producers that their assessments
will be determined on a uniform, rational basis throughout the State.

In recognition of the benefit this program provides for the industry,
producers have been obliged since 1992 to pay fees to the State to
offset the administrative costs involved in developing these values.
The statute imposing those fees - Real Property Tax Law §593 - has
always been subject to a sunset clause, and has been repeatedly
renewed since enactment. This bill would extend the program until 2015.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13
Executive Budget and allow the Department to offset related costs.

Effective Date:

This bill takes effect immediately.

Part B - STAR benefit recovery program for unpaid tax liabilities.

Purpose:

This bill would create a new program to aid in the enforcement of
delinquent tax liabilities by providing for the recovery of STAR
benefits from taxpayers who owe certain past-due tax liabilities.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

This bill would authorize the Department of Taxation and Finance to
establish a new program to aid in the enforcement of delinquent tax
liabilities by providing for the recovery of STAR benefits from
taxpayers who owe certain past-due state tax liabilities.
The program would apply to the STAR exemption from real property
taxation and to the two STAR-related personal income tax benefits for
New York City residents.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget since it would provide an estimated $1 million in additional
revenue on an annual basis and $5 million in savings, by removing the
STAR exemption in cases in which the taxpayer(s) were in arrears with
respect to their State tax liabilities.

Effective Date:

This bill would take effect immediately, provided however, the
provisions relating to the personal income tax in New York City would
apply to taxable years beginning on and after January 1, 2012.

Part C - Reform the Tobacco Products Excuse Tax.

Purpose:

This bill would amend the Tax Law, in relation to reforming excise tax
on tobacco products, imposing a fixed rate of tax on loose tobacco,
and imposing a retail tax on cigars.

Statement in Support, Summary of Provisions, Existing Law,
and Prior Legislative History:

Using commercial roll-your-own machines at a retail location to make
cigarettes is the newest trend in the tobacco industry. It is an
alternative way to manufacture cigarettes while paying the lower
tobacco products excise tax rather than the generally much higher
cigarette excise tax. These machines use loose tobacco to fill tubes
to create cigarettes in minutes rather than in hours if done on home
filling machines. Purchasers are often choosing lower taxed tobacco
products like pipe tobacco to use in the machines to save even more
money. The bill would tax all loose tobacco at the same rate as the
excise tax on cigarettes to provide a disincentive for consumers to
seek out these machines.

This bill would also reform the excise tax on tobacco products and
impose a retail tax on cigars.

Sections 1, 19 through 34, and 35-45 of the bill would make conforming
changes to Article 20 by adding the term "cigars" wherever the term
"tobacco products" is used, because cigars would be taxed separately
from tobacco products. 'Additionally, the term "wholesale price"
would be removed and replaced with weight for record keeping
purposes. In several sections, the threshold for cigars would be
adjusted in keeping with section 21.

Sections 2 through 9 of the bill would amend section 470 of the Tax
Law to remove cigars from the definition of tobacco products and to
make conforming changes to other related definitions to reflect this
change. The definition for snuff is expanded to reflect the new
products in the marketplace that are most closely defined as snuff. A
definition of loose tobacco is added to include all tobacco products
other than snuff and little cigars. The definition of receipts is
added in order to impose the new cigar excise tax at the retail level.

Section 10 of the bill would amend section 471 (b)(1 )(a) to eliminate
the imposition of the tobacco products tax at seventy-five percent of
the wholesale price, and replaces it with a fixed rate of $4.53 per
ounce on loose tobacco. This rate brings the tax rate up to par with
the imposition on cigarettes.

Section 11 of the bill would add a sunset of June 1, 2012 for the
imposition of the tobacco products tax on cigars. This would allow
for a month where there is no tax on
cigars in order to provide a period of time to sell down inventories
before the imposition of the new cigar excise tax.

Section 12 would make conforming changes to the use tax.

Sections 13 and 14 of the bill would add a new cigar excise tax as
section 471-f of the Tax Law and cigar use tax as section 471-g of
the Tax Law that is imposed at the rate of fifty percent on the
receipts from every retail sale and collected by the retail dealer or
paid by the consumer.

Sections 15 and 16 of the bill would add a cigar prepaid tax paid by
the distributor at the rate of 20 cents per cigar processed for use
or sale in the state, and allow for a refund or credit with respect
to the prepaid tax.

Sections 17 and 18 of the bill would add sections 471-j and 471-k to
the bill to address some administration provisions for the cigar
excise tax.

Section 21 of the bill would amend section 474 of the Tax Law to lower
the threshold for the invoice requirement from more than 250 cigars
to more than 50 cigars to make the amount similar to the requirement
for cigarettes.

Section 31 of the bill would amend section 480-a(2)(d) by
incorporating by reference the sales tax certificate of authority
penalties contained in section 1134 of the Tax Law to be similarly
applicable to a certification of registration.

Section 37 of the bill would add section 481-a to the Tax law to
establish parallel relevant penalties for retail dealers as are found
in section 1145 of the Tax Law.

Section 46 of the bill provides that the bill would take effect July
1, 2012, except that section 11 of the bill would take effect
immediately.

Budget Implications:

Enactment of this bill is necessary to implement the Executive Budget,
because it will increase tax receipts by $18 million in SFY 2012-13
and $24 million each year thereafter.

Effective Date:

This bill takes effect July 1, 2012 except that section 11 takes
effect immediately.

Part D - Extend the alternative fuels tax exemptions for five years.

Purpose:

This bill would extend the sunset from September 1, 2012 to September
1, 2017 for the tax exemptions for alternative fuels, including E85,
CNG, hydrogen, and B20.

Statement in Support, Summary of Provisions,. Existing Law and
Prior Legislative History:

Extending the exemptions for alternative fuel would continue to
provide an incentive for the use of renewable fuels and is part of a
comprehensive strategy to reduce dependence on foreign oil and to
increase the use of clean energy fuels.

This bill would extend the sunset for the exemptions in the Tax Law
for alternative fuels from September 1, 2012 to September 1, 2017.
Unless this sunset is extended, the Tax Law will no longer allow full
exemptions for E85, CNG, and hydrogen, and partial exemptions for B20
from the motor fuel taxes (Article 12-A), the petroleum business
taxes (Article 13-A), fuel use taxes (Article 21-A) and State and
local sales and compensating use taxes (Articles 28 and 29).

Existing law includes an exemption for E85, CNG and hydrogen, and a
partial exemption for B20. This exemption is set to sunset on
September 1, 2012.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget. All Funds sales and use, petroleum business, and motor fuel
taxes would be reduced by a total of $1.5 million in SFY 2012-13 and
$3 million annually in each of 2013-14, 2014-15, 2015-16 and 2016-17
and $1.5 million in 2017-18.

Effective Date:

This bill takes effect immediately.

Part E - Make technical amendments to the tax classification of diesel
motor fuel.

Purpose:

This bill would amend how certain types of diesel motor fuel are
classified for purposes of the taxes on diesel motor fuel under the
New York State Tax Law.

Statement in Support, Summary of Provisions, Existing Law and
Prior Legislative History:

Section 1 of the bill would delete crude oil from the definition of
diesel motor fuel in section 282.14 of Article 12-A of Tax Law and,
by virtue of cross references, Articles 13-A, 28 and 29 of the Tax
Law. Section 3 of the bill would remove the exemption for crude oil
from Article 13-A of the Tax Law as it is no longer subject to tax.

Sections 2 and 4 through 6 of the bill would amend the Tax Law to
allow a distributor of diesel motor fuel to sell undyed "qualified
biodiesel" to another distributor of diesel motor fuel without
inclusion of the Article 12-A, 13-A, 28 and 29 taxes. Section six
would also make a technical change to remove the criteria that
non-highway diesel motor fuel cannot be sold without the pre-paid
sales tax if such fuel was previously subject to tax.

The Tax Department became aware of a marketplace problem with the new
Tax Law fuel definitions enacted under Chapter 61 of the Laws of
2011. Under the new diesel fuel definitions, diesel motor fuel
labeled B-100 or B-99 (qualified biodiesel), when undyed, is treated
as highway diesel motor fuel and subject to tax when sold in the
State. Qualified biodiesel (whether dyed or clear) when imported from
outside the State by a registered distributor is not subject to tax
at that point. Rather, the tax is imposed on the first sale in the
State of undyed qualified biodiesel. This bill would allow undyed
qualified biodiesel to be sold in this State without tax between
registered fuel distributors (inter-distributor sales).

While in many cases, the 38 cents per gallon highway tax would be
refunded when the biodiesel is ultimately blended with diesel fuel

and dyed (e;g. for sale in residential market), the cash flow burden
would preclude the in-State seller from competing on price with the
out-of-state seller. This disparate treatment creates an uneven
playing field to the detriment of in-State sellers of biodiesel. An
in-State seller would be offering product priced at about 38 cents
per gallon more expensive than an out of State seller based solely on
tax treatment. This market inequity would appear to handicap the
development of a robust renewable fuels distribution market within
the State.

After enactment of Chapter 61 last year, the Tax Department also
became aware that crude oil, originating in North Dakota, is being
transshipped by rail through New York State with a destination of
refineries in New Jersey and Pennsylvania. To prevent any unintended
tax consequences, this bill would remove crude oil from the diesel
motor fuel Tax Law definition. This change will have no adverse tax
evasion or compliance effects.

Budget Implications:

Enactment of this bill is necessary to address an unintended impact on
taxpayers and to maintain the estimated State revenue stream in State
fiscal year 2012-13 and future fiscal years.

Effective Date:

This bill would take effect June 1, 2012, provided that sections 5 and
6 shall apply to sales made and uses occurring on and after that date
in accordance with the applicable transitional provisions in sections
1106 and 1217 of the Tax Law.

Part F - Expand Criteria to Refuse to Issue Sales Tax Certificates of
Authority.

Purpose:

This bill would improve tax collection by expanding the criteria the
Department of Taxation and Finance uses to refuse to issue a
Certificate of Authority due to outstanding liability under the Tax
Law.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History

Vendors are not permitted to engage in taxable sales without first
being issued a Certificate of Authority from the Department of
Taxation and Finance. Section 1 would amend section 1134(a)(4)(B)of
the Tax Law to expand the.criteria the Department of Taxation and
Finance may use to refuse to issue a Certificate of Authority for
sales and use tax purposes. Current law allows the Department to
refuse to issue a Certificate of Authority if any tax finally
determined to be due from the applicant under the Tax Law has not

been paid in full; or sales or use taxes due from persons required to
collect tax on behalf of this entity, or another entity for which the
person was also required to collect tax, have not been paid in full.
This bill would allow the Department to refuse to issue a Certificate
of Authority for any unpaid type of tax determined to be due from a
person that is a "person required to collect tax" for the entity
applying for the Certificate of Authority, not just for that person's
unpaid sales and use taxes as under current law.

Section 2 would amend section 1146(g) of the Tax Law to allow
disclosure by the Commissioner, to an applicant who has been refused
a Certificate of Authority, of the name and amount of tax due of the
persons required to collect tax whose tax liabilities were grounds
for the Certificate of Authority refusal. This amendment should
result in a payment of tax so the Certificate of Authority may be
issued. This proposal would expand the type of liability checks the
Department currently runs for each new sales tax registration, and
which it successfully executed for all registered sales tax vendors
as part of the re-registration project authorized by the Legislature
as part LL-1 of Chapter 57 of the laws of 2008. This has been an
effective and efficient tool to collect outstanding tax liabilities.
Expanding the scope of these liability checks would enable the
Department to more efficiently collect on additional past due tax
liabilities. There is no legislative history.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it will increase receipts by $1 million in SFY 2012-13
and each year thereafter.

Effective Date:

This bill takes effect immediately.

Part G - Make Permanent Certain Modernization Provisions of the Tax law.

Purpose:

Make Tax Modernization Provisions Permanent: (a) To maintain
improvements to the administration of the Tax Department's electronic
filing and payment mandates, creating efficiencies and cost savings;
and (b) to maintain improvements to sales tax compliance tools.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

a. Electronic Filing Mandates

Originally, the Tax Law provided for mandates in two separate sections
of the law Section 658(g)(10) for tax preparers of personal income
tax (PIT) returns and Section 29 for all other preparers and for

business self-filers. There were also penalty provisions that applied
directly to those provisions, and corresponding provisions in the
Administrative Code of the City of New York. Last year, the
provisions in part U of Chapter 61 improved the administration of the
Tax Department's electronic filing and payment mandates by
consolidating all preparer and self-filer requirements into one
section of the Tax Law (an amended Section 29), and extended e-filing
requirements to PIT self-filers who use tax software to prepare their
PIT returns. It also imposed appropriate penalties for failure to
comply with the mandates. The bill also repealed sections of the Tax
Law and the Administrative Code of the City of New York that were no
longer needed as a result of its provisions. Currently, these
beneficial e-file mandate provisions would expire on December 31,
2012, at which time, the Tax Law would revert to having two disparate
sections of law setting forth e-file mandate requirements at lower
thresholds than those which would be in place during
the 2012 tax filing season.

This bill would make the very important e-file improvement provisions
enacted last year permanent. Consolidating the e-file and e-pay
mandates into one section of the Tax Law would make the mandate
requirements more readily understandable, eliminating confusion among
self-filers and practitioners that existed previously when the
mandates were set forth in two different sections with different
requirements. The bill would also keep consistent the terminology
used in connection with the mandates. For example,
confusion existed previously because section 29 refers to "authorized
tax documents" while section 658(g)(10)) referred to "authorized
returns." The provisions sought to be made permanent make clear that
both preparer and self-filer mandates cover "authorized tax
documents." To produce further efficiencies and cost savings to the
State, the threshold trigger for the preparer e-file mandate was
reduced in the 2011 legislative session from preparation of 100 tax
documents to preparation of 5 tax documents. Making the provisions
permanent would prevent the State from reverting back to the previous
threshold of 100, which would result in a decline of e-filed returns
in the 2013 tax filing season.

Continuation of these provisions would also maintain the requirement
for tax filing seasons beyond 2012 that PIT self-filers using tax
software to prepare their returns must also e-file them. Requiring
preparers and self-filers that use tax preparation software to e-file
recognizes that persons using tax software to prepare returns are
capable of e-filing. Importantly, Tax Law §34 passed in 2010 (no
separate charge for efiling of a NYS return) means no additional
financial burden may be imposed upon self-filers for the e-filing of a
NYS tax document. Continuing the threshold reduction for preparers
would also be consistent with recent e-file trends (e.g., IRS has
reduced their threshold for the 2012 filing season).

Overall, this bill would maintain for future years the cost savings
realized by the State by the increase in e-filing that is anticipated

during the coming year's tax filing season. Efile and e-pay of taxes
would create cost and tax administration efficiencies beneficial to
both the State and taxpayers. A taxpayer's use of e-file and e-pay
reduces the number of errors that may be associated with the filing
of a paper return. With e-file, an error can be immediately detected
and the taxpayer prompted to correct and resubmit their return.
Also with e-file, the taxpayer gets an official acknowledgement when
their return has been received. Moreover, e-filed tax returns are
processed quicker than paper;
potentially resulting in faster refunds. In addition, the more
taxpayers that e-file and epay, the more cost savings the State would
realize since administrative cost savings are linked to each and
every tax document e-filed with the Department. Currently, these
provisions would expire on December 31, 2012. This bill proposes to
make these very important provisions permanent.

b. Improving Sales Tax Compliance

Last year, Part U of Chapter 61 amended section 1137 of the Tax Law to
authorize the Commissioner to require vendors that (1) failed to
collect, truthfully account for, or (2) pay over sales tax moneys, or
to file returns as required by law, to take actions the Commissioner
deems necessary to ensure that sales tax moneys are paid, including
giving notice to such vendor requiring more frequent payment of tax.
Prior to the enactment of Part U, Section 1137 authorized the
Commissioner to require a noncompliant vendor to deposit sales tax
moneys into a separate account, in trust for and payable to the
Commissioner. However, trust accounts proved to be an ineffective
means of protecting tax revenues because they were difficult to
establish and administer, required multiple signatures and procedural
steps, and also required
cooperation with various banks. The segregated account provisions
enacted last year simplify this process for vendors and the
Department. Under this amendment, vendors set up their own separate
bank account into which only sales tax moneys will be deposited,
authorize the Department to debit that account, and deposit the sales
tax moneys into that account at least weekly.

The Department has begun to implement this amendment, and a recently
completed a statistical analysis indicated that sales tax vendors
selected for the segregated account pilot program made increased
timely payments for the last sales tax quarter of 2011.
The analysis indicates that a positive statistical correlation existed
for payment increases, compared to the prior year, for these vendors
in three of the four industry groups selected for the segregated
accounts pilot project. The statistical study controlled for
differences in payments made by vendors in these industries who were
not selected for participation in the program. For those vendors
selected for the pilot project, the estimated increase in quarterly
payments compared to the prior year was $1,100 per vendor, as
compared with similar vendors in the same industry who were not
selected for the project.

The bill would continue to give the Department a more effective tool
to ensure that trust tax moneys that a vendor has collected for the
State are paid promptly to the Department and not diverted for other
purposes. The segregated account provisions would expire December 31,
2012. This bill would make these very important changes permanent.

Budget Implications:

Enactment of this bill would be necessary to implement the 2012-2013
Executive Budget. It would generate additional All Funds Revenue of
$5 million in SFY 2012-13 and $20 million annually thereafter.

Effective Date:

The bill would take effect immediately, provided however, that section
2 would be deemed to have taken effect on the same date and in the
same manner as the amendments to section 29 of the Tax Law contained
in section 13 of part U of chapter 61 of the laws of 2011 took effect.

Part H - Expand sales tax exemption for solar energy systems equipment
and expand income tax credit for such systems.

Purpose:

This bill would expand the income tax credit and sales and use tax
exemptions for qualified solar energy systems equipment.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

In his 2012 State of the State address, the Governor announced the NY
SUN Solar program to expand solar production in the State. This bill
begins to implement the program through expansion of two existing tax
incentives, both of which need to be updated to reflect changing
market conditions in the solar industry, and to further encourage the
development of solar energy systems on commercial properties. Tax
incentives for solar energy installations have proven to be an
effective tool to help achieve the State's policy objectives of
reducing energy costs, improving the environment, and stimulating job
creation in the clean energy economy. This bill further implements
those goals.

First, the Personal Income Tax credit under Tax Law (TL) § 606(g-1)(2)
is available only to those that own solar energy systems. Leased and
third-party systems, however, are gaining in popularity, and should
also be eligible for the current tax credit. Indeed, for some
customers, it will be more feasible to lease the equipment or
contract with a provider to purchase power. The end result -
installed solar energy systems - provides the same societal benefits
regardless of the method of procuring the solar energy systems. The
bill would thus amend TL § 606(g-1)(2) to cover expenditures for the

lease of solar energy equipment and purchases of power generated by
such equipment.

Second, the State sales and use tax exemptions under TL § 1115(ee)
and the local optional sales tax exemption under TL § 1210(a)(1),
(n)(1) are available only to solar energy systems installed on
residential properties. The development of such systems on commercial
properties, however, should also be encouraged; because of the large
rooftops often associated with such properties, as well as their high
energy demand, commercial properties are often well-suited for solar
development. Accordingly, the bill would eliminate this "residential"
requirement, thus expanding the sales tax exemptions to cover systems
used to provide heating/cooling, hot water, or electricity to any
structure, including commercial properties. To align the exemptions
with the State's net metering law, the amended exemptions would apply
only to solar energy equipment that does not exceed an installed
capacity rating of two megawatts or the thermal equivalent thereof.
Of note, under TL § 1218, to avoid having the expanded exemption
apply to its local sales and use tax, the city or county to which the
exemption applies would have to repeal any local law that adopted the
prior exemption for residential systems; i.e., the city or county can
opt out of the exemption.

Budget Implications:

This bill would result in a revenue loss of $2 million in 2012-13 and
$5 million per year thereafter thru 2015-16. Beginning in 2016-17 the
revenue loss will be $3 million per year as a result of the
continuing sales tax exemption. Enactment of this bill is necessary
to implement the 2012-13 Executive Budget because the revenue losses
are included in the State Financial Plan.

Effective Date:

This bill would take effect immediately, provided that:
(1) section 1 of the bill would apply to leases of solar energy
systems equipment and purchases of power under written agreements
entered into on or after the date the bill would become law;
provided, however, that the amendments to paragraph 2 of subsection
(g-1) of the Tax Law made by section 1 shall not apply to any taxable
year commencing on or after January 1, 2015; and (2) sections 2, 3,
and 4 of the bill would apply to sales made or uses occurring on or
after September 1, 2012.

Part I - Extend Empire State Commercial Production Tax Credit for five
years.

Purpose:

This bill would extend the Empire State Commercial Production Credit
until December 31, 2016.

Statement in Support. Summary of Provisions, Existing Law, and
Prior Legislative History:

The Empire State Commercial Production Credit is currently available
for taxable years beginning on or after January 1, 2007 and expires
on December 31, 2011. In general, the credit is available to
qualifying taxpayers under Articles 22 and 9-A in an amount equal to
20 percent of the qualifying production costs incurred in the actual
filming or recording of a qualified commercial in New York that
exceed the average of the 3
previous years' costs for which the credit Was applied, plus 5 percent
of costs above $500,000 in the calendar year in the Metropolitan
Commuter Transportation District (MCTD) and above $200,000 in the
calendar year outside the MCTD.

This bill would extend the expiration of the tax credit by five years
until December 31, 2016.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget. This bill will decrease tax receipts by $7 million annually
for five years, beginning with SFY 2013-14.

Effective Date:

This bill takes effect immediately.

Part J - Authorize additional credits of $8 million for low-income
housing credit for each of the next five fiscal years.

Purpose:

This bill would increase the aggregate amount of low-income housing
tax credit the Commissioner of Housing and Community Renewal may
allocate from $32 million to $40 million in 2012 and authorizes an
increase in $8 million increments annually for the next four fiscal
years.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

Section one of the bill would amend §22 of the Public Housing Law by
increasing the aggregate amount of low-income housing tax credit the
Commissioner may allocate from $32 million to $40 million in 2012.
Section two of the bill would amend §22 of the Public Housing Law by
increasing the aggregate amount of low-income housing tax credit the
Commissioner may allocate from $40 million to $48 million in 2013.
Section three of the bill would amend §22 of the Public Housing Law
by increasing the aggregate amount of low-income housing tax credit
the Commissioner may allocate from $48 million to $56 million in
2014. Section four of the bill would amend §22 of the Public Housing

Law by increasing the aggregate amount of low-income housing tax
credit the Commissioner may allocate from $56 million to $64 million
in 2015. Section five of the bill would amend §22 of the Public
Housing Law by increasing the aggregate amount of low-income housing
tax credit the Commissioner may allocate from $64 million to $72
million in 2016. Current State law provides for total allocation
authority of $32 million.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-2013
Executive Budget. This bill will decrease annual tax receipts by an
estimated $8 million in SFY 2013-2014, $16 million in SFY 2014-2015,
$24 million in SFY 2015-2016, $32 million in SFY 2016-2017, and $40
million in SFY 2017-2018.

Effective Date:

This bill would take effect immediately; provided, however, section
two would take effect on April 1, 2013, section three would take
effect on April 1, 2014, section four would take effect on April
1, 2015 and section five would take effect on April 1, 2016.

Part K - Extend the Biofuel Production Tax Credit through the 2019
taxable year.

Purpose:

This bill would extend the Biofuel Production Tax Credit until
December 31, 2019.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

For purpose of the corporate franchise and personal income taxes, a
biofuel production credit is available for taxable years beginning
after 2005 and through 2012. Biofuel producers in New York State are
eligible for a New York State tax credit of $0.15 per gallon of
biodiesel (B100) or ethanol produced after the production facility
has produced and made available for sale 40,000 gallons of biofuel
per year. The maximum credit available is $2.5 million per taxpayer
per taxable year for no more than four consecutive taxable years per
production facility. If the taxpayer is in a partnership or is a
shareholder of a New York-S corporation, the maximum credit amount is
applied at the entity level, so the aggregate credit allowed to all
partners or shareholders may not exceed $2.5 million.

This credit currently applies to taxable years beginning before
January 1, 2013. This bill would extend the tax credit through taxable
years before January 1, 2020.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget. This bill will decrease annual tax receipts by an estimated
$10 million beginning with SFY 2014-2016.

Effective Date:

This bill takes effect immediately.

Part L - Make permanent the Noncustodial Parent Earned Income Tax
Credit.

Purpose:

This bill would make permanent the Noncustodial Parent Earned Income
Tax Credit.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

The credit is available to noncustodial parents who pay child support
for a qualifying child with whom they do not reside. This credit
rewards working noncustodial parents who augment their wages, and it
provides a substantial work incentive for those not
working or working only intermittently. The credit is intended to
encourage low-income noncustodial parents to comply with child
support orders. It is also intended to encourage low-income
noncustodial parents to become more involved in the economic and
social well-being of their children.

This credit currently applies to taxable years beginning before
January 1, 2013. This amendment would make the tax credit permanent.

Budget Implications

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget. This bill will decrease annual tax receipts by an estimated
$4 million beginning with SFY 2014-15.

Effective Date

This bill takes effect immediately.

Part M - Prohibit banks from charging fees on levied bank accounts.

Purpose:

This bill would enhance the collection of delinquent taxes and child
support by prohibiting banking institutions from deducting processing
fees from the proceeds of levies executed to collect delinquent taxes
or child support.

Statement in Support, Summary of Provisions, Existing Law and
Prior Legislative History:

Among the fees that many banks charge their depositors is a fee for
processing levies served by execution on the depositors' funds. It is
not uncommon for this fee to be as much as $100. Provided there are
sufficient funds in the account, banks routinely deduct the levy
processing fee from those funds prior to forwarding the remaining
levy proceeds to the executing creditor. In State Fiscal Year (SFY)
2011, there were 73,572 levies served on banking institutions from
which proceeds were remitted to the Department of Taxation and
Finance that did not pay the full levy.

On the federal level, banks cannot deduct processing fees from I.R.S.
levies. The genesis of this policy was a federal court decision that
interpreted the Internal Revenue Code to give IRS levies precedence
over a Bank's unexecuted right to setoff. State Bank of Fraser v.
United States. 861 F. 2d 954. 961 (6th Cir. 1988); IRM 5.17.3.9.4.3
(12-07-2001); IRM 5.11.4.3.3 (9-14-2010).

The Second Circuit and the New York Court of Appeals, applying State
law, have found exactly the opposite, that the Legislature intended
the provisions of Debtor and Creditor
Law §151 that encapsulates the common law right of setoff to override
a creditor's right to levy by execution pursuant to the CPLR. Aurora
Maritime Co., v. Abdullah Mohamed Fahem & Co., 85 F.3d 44,46 (2nd
Cir. 1996); Industrial Commissioner v. Five Corners Tavern, Inc., 47
N.Y.2d 639, 647, 393 N.E2d 1005, 1009, 419 N.Y.S.2d 931, 935-936
(1979). Thus, by operation of Debtor and Creditor law §151, banks are
empowered to set off levy processing fees prior to remitting the levy
proceeds.

This bill would narrowly overrule judicial precedent by stating a new
legislative intent to maximize tax and child support revenues by
prohibiting banking institutions from deducting processing fees from
levy proceeds.

Section one of the bill would amend §5232 of the CPLR by adding a new
subdivision (i) that prohibits banking institutions from setting off
and applying levy processing fees against the proceeds of tax or
child support levies.

Section two would amend §151(d) of the Debtor and Creditor Law to
cross-reference the prohibition on the set off of levy processing
fees against the proceeds of tax or child support levies as provided
for in section one.

This is a new bill.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it would generate a revenue gain of $5 million in SFY
13 and $7 million annually thereafter, which is included in the State
Financial Plan.

Effective Date:

This bill takes effect 90 days after it becomes a law.

Part N - Extend the recently enacted lower Metropolitan Commuter
Transportation Mobility Tax Rates for employers to professional
employer organizations.

Purpose:

This bill would extend the recently enacted lower Metropolitan
Commuter Transportation Mobility Tax (MCTMT) rates for employers to
professional employer organizations.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

Amendments to the MCTMT enacted as part of the 2011 Extraordinary
Session were an important part of the Governor's initiative to help
small businesses. Professional employer organizations provide a
valuable service to small businesses by allowing them to provide
employee benefits in a cost efficient way. However, because
professional
employer organizations are the employer of record of all employees of
their small business clients, they cannot access the recently enacted
lower MCTMT rates for small businesses. This bill would amend Section
801 of the Tax Law to take these lower rates into account in the tax
calculation for professional employer organizations and make a
technical correction to the tax imposition language applicable to
employers. This bill would also make a technical correction to the
effective date of Part B of Chapter 56 of the Laws of 2011 to clarify
that the lower MCTMT rate for self-employed individuals on their
earnings attributable to the Metropolitan Commuter Transportation
District applies to taxable years beginning on or after January 1,
2012.

Budget Implications:

Enactment of this bill is necessary to implement recently enacted
MCTMT cuts as intended by the Legislature. There is no fiscal impact
since the bill would only affect employers already included in the
original revenue estimate.

Effective Date:

This bill takes effect immediately; provided however that the
amendment in Section 1 01 this bill concerning professional employer
organizations take effect for the quarter beginning on April 1, 2012.

Part 0 - Extend for one year lower Pari-Mutuel tax rates and rules
governing simulcasting of out-of-state races.

Purpose:

This bill would extend for a period of one year various provisions of
the Racing, PariMutuel Wagering and Breeding (Racing) Law which
expire during the 2011-12 fiscal year.

Statement in Support, Summary of Provisions, Existing Law, and
Prior Legislative History:

Section 1 would amend Racing Law § 1003(a) to extend in-home
simulcasting from June 30, 2012 to June 30, 2013.

Section 2 would amend Racing Law §107(3)(d) to extend the current
percentage of total pools allocated to purses that a track located in
Westchester County receives from a franchised corporation from June
30, 2012 to June 30, 2013.

Section 3 would amend the opening paragraph of Racing Law § 1014(1)
to continue the provisions allowing simulcasting of out-of-state
thoroughbred races on any day the Saratoga thoroughbred track is
operating and to delay these provisions from governing the
simulcasting of out-of-state thoroughbred races on all days whether
or not the Saratoga thoroughbred track is operating from June 30,
2012 to June 30, 2013.

Section 4 would amend Racing Law § 1015(1) to extend the provisions
governing the simulcasting of races conducted at out-of-state harness
tracks from June 30, 2012 to June 30, 2013.

Section 5 would amend the opening paragraph of Racing Law §1016(1) to
extend the provisions governing the simulcasting of out-of-state
thoroughbred races on any day the Saratoga thoroughbred track is
closed from June 30, 2012 to June 30, 2013.

Section 6 would amend the opening paragraph of section 1018 of the
Racing, PariMutuel Wagering and Breeding Law to extend the current
distribution of revenue from out-of-state simulcasting during the
Saratoga meet through September 8, 2012.

Section 7 would amend § 32 of chapter 281 of the Laws of 1994 to
extend the current amount of off-track betting wagers on New York
Racing Association, Inc. (NYRA) pools dedicated to purse enhancement
from June 30, 2012 to June 30, 2013.

Section 8 would amend § 54 of chapter 346 of the Laws of 1990 to
extend binding arbitration for disagreements from June 30, 2012 to
June 30, 2013.

Sections 9 and 10 would amend Racing Law § 238(1)(a) to extend the
current distribution of revenue from on-track wagering on NYRA races.

Section 11 would amend Racing Law § 1012(5) to extend the
authorization for account wagering from June 30, 2012 to June 30, 2013.

The extension of these provisions would maintain the pari-mutuel
betting and simulcasting structure that is currently in place in New
York State. The provisions extended by sections one through six of
this bill were first enacted in 1994 and section seven was enacted in
1990. These provisions were most recently extended in 2011.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it maintains the current pari-mutuel betting structure in
New York State.

Effective Date:

This bill takes effect immediately.

Part P - Redistribute the statewide collected transmission tax between
the upstate (PTOA) and downstate (MMTOA) transit accounts in an
equitable manner, replacing the existing yearly transfer between the
two accounts.

Purpose:

This bill would redistribute the revenue collected from the corporate
and utilities taxes imposed under Tax Law sections 183 and 184 to
provide an equitable share to the public transportation systems
operating assistance account, and replace the yearly transfer that
has occurred from the Metropolitan Mass Transportation Operating
Assistance Account (MMTOA) to the Public Transportation Operating
Assistance (PTOA) account.

Statement in Support, Summary of Provisions, Existing Law and
Prior Legislative History:

This bill would amend subdivision 3 of section 205 of Tax Law to
provide that, on and after April 1, 2012, after reserving amounts for
refunds and reimbursements, twenty percent of the moneys collected
from the taxes imposed by sections 183 and 184 of Tax Law shall be
deposited to the credit of the Dedicated Highway and Bridge Trust
Fund created by State Finance Law section 89-b, fifty-four percent
shall be deposited in the Mass Transportation Operating Assistance
Fund to the credit of the MMTOA account and twenty-six percent shall

be deposited in the Mass Transportation Operating Assistance Fund to
the credit of the PTOA account, both created by State Finance Law
section 88-a.

This bill would not increase the tax rate. It only redistributes the
amount currently deposited in the Mass Transportation Operating
Assistance Fund between the two accounts within the fund, in
accordance to a regional split. Since the taxes are collected
statewide, the new distribution is based upon population within the
downstate and upstate service districts.

Budget Implications:

Enactment of this bill is necessary to implement the 2012-13 Executive
Budget because it replaces the annual transfer that had occurred
between MMTOA to PTOA. Without this tax redistribution, the PTOA
account would not receive revenues for operating aid to upstate
transit systems.

Effective Date:

This bill takes effect April 1, 2012.

The provisions of this act shall take effect immediately, provided,
however, that the applicable effective date of each part of this act
shall be as specifically set forth in the last section of such part.

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

    S. 6259                                                  A. 9059

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

                            January 17, 2012
                               ___________

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

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

AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
  erty  tax  law  relating  to  oil  and gas charges, in relation to the
  effective date of such chapter (Part A); to amend  the  real  property
  tax  law, the tax law, the administrative code of the city of New York
  and the state finance law, in  relation  to  the  suspension  of  STAR
  exemptions  and  related benefits of persons who are delinquent in the
  payment of outstanding state tax liabilities (Part B);  to  amend  the
  tax  law,  in  relation  to  reforming excise tax on tobacco products,
  imposing a fixed rate of tax on loose tobacco, and imposing  a  retail
  tax  on  cigars  (Part  C);  to amend chapter 109 of the laws of 2006,
  amending the tax law relating to providing exemptions,  reimbursements
  and  credits  from  various  taxes  for  certain alternative fuels, in
  relation to extending the alternative fuels tax exemptions  (Part  D);
  to  amend  the  tax law, in relation to making technical amendments to
  the tax treatment of diesel fuel to reflect  industry  practice  (Part
  E); to amend the tax law, in relation to the power of the commissioner
  of  taxation and finance to refuse to issue a certificate of authority
  to collect the sales and compensating use taxes imposed by article  28
  of  the tax law and pursuant to the authority of article 29 of the tax
  law (Part F); to amend the tax law and part U of  chapter  61  of  the
  laws  of 2011, amending the real property tax law, the general munici-
  pal law, the public officers law, the tax law, the abandoned  property
  law,  the state finance law and the administrative code of the city of
  New York, relating to establishing standards for electronic real prop-
  erty tax administration,  allowing  the  department  of  taxation  and
  finance  to  use electronic communication means to furnish tax notices
  and other documents, mandatory electronic  filing  of  tax  documents,
  debit cards issued for tax refunds, improving sales tax compliance and
  repealing  certain  provisions  of  the tax law and the administrative
  code of the city of New York relating thereto, in relation  to  making

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-01-2

S. 6259                             2                            A. 9059

  permanent,  provisions  relating to mandatory electronic filing of tax
  documents and improving sales tax compliance; and  to  repeal  certain
  provisions  of  the tax law and the administrative code of the city of
  New  York relating thereto (Part G); to amend the tax law, in relation
  to the personal income tax credits for solar energy systems  equipment
  and  the sales and use tax exemption provided for such equipment (Part
  H); to amend the tax law, in relation to extending  the  empire  state
  commercial production tax credit; and to amend part V of chapter 62 of
  the  laws  of  2006 relating to the empire state commercial production
  tax credit, in relation to the  effectiveness  thereof  (Part  I);  to
  amend the public housing law, in relation to the credit against income
  tax  for persons or entities investing in low-income housing (Part J);
  to amend the tax law, in relation to extending the biofuel  production
  tax  credit;  and  to  amend part X of chapter 62 of the laws of 2006,
  amending the tax law relating to providing  tax  credits  for  biofuel
  production  plants, in relation to the effectiveness thereof (Part K);
  to amend chapter 58 of the laws of  2006,  relating  to  providing  an
  enhanced  earned  income  tax credit, in relation to the effectiveness
  thereof (Part L); to amend the civil practice law and  rules  and  the
  debtor  and  creditor  law,  in relation to prohibiting banking insti-
  tutions from deducting levy processing fees from tax and child support
  levy proceeds (Part M); to amend the tax law, in relation to tax rates
  and exclusions under the metropolitan commuter transportation mobility
  tax for professional employer organizations and to  amend  part  B  of
  chapter  56  of  the laws of 2011 amending the tax law relating to the
  tax rates and exclusions under the metropolitan  commuter  transporta-
  tion  mobility tax, in relation to the effectiveness thereof (Part N);
  to amend  the  racing,  pari-mutuel  wagering  and  breeding  law,  in
  relation  to licenses for simulcast facilities, sums relating to track
  simulcast, simulcast of out-of-state thoroughbred races,  simulcasting
  of  races  run  by  out-of-state  harness  tracks and distributions of
  wagers; to amend chapter 281 of the laws of 1994 amending the  racing,
  pari-mutuel  wagering  and  breeding  law  and  other laws relating to
  simulcasting and chapter 346 of the laws of 1990 amending the  racing,
  pari-mutuel  wagering  and  breeding  law  and  other laws relating to
  simulcasting and the imposition  of  certain  taxes,  in  relation  to
  extending certain provisions thereof; to amend the racing, pari-mutuel
  wagering and breeding law, in relation to extending certain provisions
  thereof  (Part  O);  and  to  amend  the  tax  law, in relation to the
  distribution of revenue collected from  the  corporate  and  utilities
  taxes imposed under sections 183 and 184 of the tax law (Part P)

  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 major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through P. 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 a 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

S. 6259                             3                            A. 9059

Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas  charges,  as  amended  by
section  1  of  part II of chapter 56 of the laws of 2009, is amended to
read as follows:
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law  as  added  by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act  shall  remain  in  full  force  and
effect  until  March  31,  [2012] 2015, at which time section 593 of the
real property tax law as added by section  one  of  this  act  shall  be
repealed.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART B

  Section 1. Subdivision 3 of section 425 of the real property  tax  law
is amended by adding a new paragraph (f) to read as follows:
  (F)  COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S ELIGIBILITY
FOR THE STAR EXEMPTION MUST NOT BE SUSPENDED  PURSUANT  TO  SECTION  ONE
HUNDRED  SEVENTY-ONE-Y  OF  THE  TAX  LAW  DUE TO THE PAST-DUE STATE TAX
LIABILITIES OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY  PROVISION
OF  LAW  TO  THE  CONTRARY,  WHERE  A  PROPERTY'S ELIGIBILITY FOR A STAR
EXEMPTION HAS BEEN SUSPENDED PURSUANT TO  SUCH  SECTION,  THE  FOLLOWING
PROVISIONS SHALL BE APPLICABLE:
  (I)  THE  PROPERTY  SHALL  BE  INELIGIBLE FOR A BASIC OR ENHANCED STAR
EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
ANCE OF NOTICE BY THE DEPARTMENT OF THE SUSPENSION  OF  ITS  ELIGIBILITY
FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
BLE  TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH A
PROPERTY ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR  OTHER
PERSON  HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED TO
IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
  (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
IN THE MANNER PRESCRIBED BY SUCH SECTION.  NEITHER  AN  ASSESSOR  NOR  A
BOARD  OF  ASSESSMENT  REVIEW HAS THE AUTHORITY TO CONSIDER SUCH A CHAL-
LENGE.
  (III) THE PROPERTY SHALL REMAIN  INELIGIBLE  FOR  THE  STAR  EXEMPTION
UNTIL  THE  DEPARTMENT  NOTIFIES THE ASSESSOR THAT THE SUSPENSION OF ITS
ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE
EXEMPTION MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT  THE
ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.
  (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
STAR  EXEMPTION  PURSUANT  TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
THIS SECTION, A SUSPENSION OF A  STAR  EXEMPTION  DUE  TO  A  TAXPAYER'S
PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON

S. 6259                             4                            A. 9059

THE  COOPERATIVE  APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
BY THAT TAXPAYER.
  S  2.  The tax law is amended by adding a new section 171-y to read as
follows:
  S 171-Y. ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES  THROUGH  THE
SUSPENSION  OF  ELIGIBILITY  FOR STAR EXEMPTIONS. 1. THE COMMISSIONER IS
HEREBY AUTHORIZED TO DEVELOP A PROGRAM TO COLLECT DELINQUENT  STATE  TAX
LIABILITIES  FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY OF
PROPERTIES FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY  OWNERS
HAVE  PAST-DUE  STATE TAX LIABILITIES. FOR THE PURPOSES OF THIS SECTION,
THE TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT  LIMITED
TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
FEE  ADMINISTERED  BY  THE  COMMISSIONER THAT IS OWED BY A TAXPAYER; THE
TERM "PAST-DUE STATE TAX LIABILITIES" MEANS ANY STATE TAX  LIABILITY  OR
LIABILITIES  WHICH HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO
LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND FOR  WHICH
THE TAXPAYER HAS NOT MADE PAYMENT ARRANGEMENTS FOR THAT LIABILITY SATIS-
FACTORY TO THE COMMISSIONER; THE TERM "TAXPAYER" SHALL MEAN THE INDIVID-
UAL RESPONSIBLE FOR THE PAYMENT OF ANY OF THE PAST-DUE STATE TAX LIABIL-
ITIES;  AND  THE  TERM  "STAR  EXEMPTION"  MEANS THE EXEMPTION FROM REAL
PROPERTY TAXATION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF  THE
REAL PROPERTY TAX LAW.
  2.  THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE ADMINISTRATION
OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
  (A) THE CRITERIA FOR IDENTIFYING TAXPAYERS  WITH  PAST-DUE  STATE  TAX
LIABILITIES.
  (B)  THE  PROCEDURES  BY  WHICH THE DEPARTMENT SHALL DETERMINE WHETHER
PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
  (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
THAT THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL  BE
SUSPENDED  UNLESS  THEY  EITHER SATISFY THEIR PAST-DUE STATE TAX LIABIL-
ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
DATE TO BE SPECIFIED IN THE NOTICE.
  (D) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY  ASSESSORS  OF
PROPERTIES  WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED DUE
TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
  (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
ON A PROSPECTIVE BASIS BY EITHER SATISFYING  THEIR  PAST-DUE  STATE  TAX
LIABILITIES  OR  MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMIS-
SIONER.
  (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
THE SUSPENSION OF A PROPERTY'S ELIGIBILITY FOR THE  STAR  EXEMPTION  HAS
BEEN LIFTED.
  (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
NATE  AND  EXECUTE  THEIR OBLIGATIONS PURSUANT TO THIS SECTION AND PARA-
GRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR  HUNDRED  TWENTY-FIVE  OF
THE REAL PROPERTY TAX LAW.
  (H)  ANY  OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY TO CARRY
OUT THE PROVISIONS OF THIS SECTION.
  3. THE DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST  FORTY-FIVE  DAYS
PRIOR  TO  THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR OF THE
SUSPENSION OF THE ELIGIBILITY FOR THE STAR EXEMPTION OF  PROPERTY  WHICH
IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
  (A)  SUCH  NOTICE  SHALL  INCLUDE A STATEMENT THAT THE DEPARTMENT WILL
NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE ELIGIBILITY  FOR  THE  STAR
EXEMPTION  OF  PROPERTY WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER UNLESS

S. 6259                             5                            A. 9059

THE TAXPAYER FULLY SATISFIES THE OUTSTANDING STATE  TAX  LIABILITIES  OR
OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
ACCORDANCE  WITH  LAW.  HOWEVER,  IN  ANY CASE WHERE A TAXPAYER FAILS TO
COMPLY  WITH  THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT AS DESCRIBED
HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
IMMEDIATELY NOTIFY THE ASSESSOR OF  THE  SUSPENSION  OF  THE  PROPERTY'S
ELIGIBILITY FOR THE STAR EXEMPTION.
  (B)  SUCH  NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY FOR THE
TAXPAYER TO PAY THE PAST-DUE LIABILITY,  MAKE  PAYMENT  ARRANGEMENTS  OR
OTHERWISE REQUEST ADDITIONAL INFORMATION.
  (C)  SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO PROTEST
THE NOTICE IS LIMITED TO RAISING ISSUES THAT  CONSTITUTE  A  MISTAKE  OF
FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
  (D)  SUCH NOTICE SHALL ALSO INCLUDE A STATEMENT THAT THE SUSPENSION OF
THE PROPERTY'S STAR EXEMPTION  WILL  CONTINUE  UNTIL  THE  TAXPAYER  HAS
SATISFIED  HIS OR HER PAST-DUE STATE TAX LIABILITIES OR HAS MADE PAYMENT
ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER,  AND  THAT  THE  PROPERTY
WILL  BE  PERMANENTLY  INELIGIBLE  FOR THE STAR EXEMPTION FOR ANY SCHOOL
YEARS THAT COMMENCE WHILE ITS ELIGIBILITY  FOR  THE  STAR  EXEMPTION  IS
SUSPENDED.
  (E)  SUCH  NOTICE  MAY  ALSO  INCLUDE  ANY  OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
  4. IF THE TAXPAYER FAILS TO SATISFY HIS  OR  HER  PAST-DUE  STATE  TAX
LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
FIED  IN  THE  NOTICE,  THE  DEPARTMENT SHALL NOTIFY THE ASSESSOR OF THE
SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
  5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE  NOTICE  ISSUED  BY
THE  DEPARTMENT  PURSUANT  TO THIS SECTION FOR THE PURPOSE OF SUSPENDING
THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED  IN
THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
ACTION,  ADMINISTRATIVE  PROCEEDING  OR ANY OTHER FORM OF LEGAL RECOURSE
AGAINST THE DEPARTMENT OR ASSESSOR REGARDING SUCH  SUSPENSION.  FOR  THE
PURPOSES  OF  THIS  SUBDIVISION,  "MISTAKE OF FACT" IS LIMITED TO CLAIMS
THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
PAST-DUE STATE TAX LIABILITIES WERE SATISFIED; OR (III)  THE  DEPARTMENT
INCORRECTLY  FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE TERMS
OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
PERIOD FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION.   HOWEVER,
NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
RELIEF  FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX HUNDRED
FIFTY-FOUR OF THIS CHAPTER TO THE EXTENT THAT  HE  OR  SHE  IS  ELIGIBLE
PURSUANT  TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT THE
ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED  BY  THE
FILING  OF  A  PETITION  PURSUANT  TO THE BANKRUPTCY CODE OF 1978 (TITLE
ELEVEN OF THE UNITED STATES CODE).
  6. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  THE  DEPART-
MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
ANY  TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE STAR
EXEMPTION PURSUANT TO THIS SECTION  AND  PARAGRAPH  (F)  OF  SUBDIVISION
THREE  OF  SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW
AND A DESCRIPTION OF SUCH PROPERTY.
  7. ACTIVITIES TO COLLECT  STATE  TAX  LIABILITIES  UNDERTAKEN  BY  THE
DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
OR  IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT
OR ENFORCE PAST-DUE STATE TAX LIABILITIES  UNDER  ANY  OTHER  APPLICABLE

S. 6259                             6                            A. 9059

PROVISION  OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX LIABIL-
ITY INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT  TO
PARAGRAPH  (F)  OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE
OF  THE REAL PROPERTY TAX LAW AND THIS SECTION MAY NOT BE APPLIED IN ANY
WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX
LIABILITY.
  S 3. Subsection (e) of section 697 of the tax law is amended by adding
a new paragraph 3-b to read as follows:
  (3-B)  NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH  ONE  OF   THIS
SUBSECTION,  THE  COMMISSIONER MAY DISCLOSE TO ASSESSORS THE INFORMATION
DESCRIBED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER  THAT  IS
NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROPER IDENTIFICATION
OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO OWNS PROPERTY WITH
A  STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSUANT TO SUCH SECTION
AND  PARAGRAPH  (F)  OF  SUBDIVISION  THREE  OF  SECTION  FOUR   HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  S  4. The tax law is amended by adding a new section 1304-E to read as
follows:
  S 1304-E. RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE  STATE
TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABILITY, AS
THAT  TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAP-
TER, ON THE LAST DAY OF THE TAXABLE YEAR, THE  TAX  RATE  APPLICABLE  TO
SUCH  TAXPAYER  UNDER  SECTION THIRTEEN HUNDRED FOUR OF THIS ARTICLE FOR
THE TAXABLE YEAR SHALL BE RECALCULATED BY  THE  COMMISSIONER  SO  AS  TO
ELIMINATE  THE  REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE HUNDRED
EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN,  AS  ADJUSTED.
SUCH  RECALCULATION  SHALL  BE  TREATED  AS A MATHEMATICAL ERROR AND THE
COMMISSIONER MAY ISSUE A NOTICE AND  DEMAND  TO  THE  TAXPAYER  FOR  THE
AMOUNT  DUE  AS  A  RESULT  OF SUCH RECALCULATION. THE AMOUNT BY WHICH A
TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT  OF  THE  RECALCU-
LATION  OF  THE  APPLICABLE TAX RATE PURSUANT TO THIS SECTION MAY NOT BE
APPLIED IN ANY WAY AS AN OFFSET AGAINST THE  AMOUNT  OF  THE  TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S  5. Paragraph 1 of subsection (e) of section 1310 of the tax law, as
amended by section 3 of part A of chapter 56 of the  laws  of  1998,  is
amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state  school  tax  reduction credit shall be allowed as provided in the
following tables. The credit shall be allowed against the taxes  author-
ized  by  this article reduced by the credits permitted by this article.
If the credit exceeds the tax as so reduced, the taxpayer  may  receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay  as an overpayment, without interest, the amount of such excess. For
purposes of this subsection, no credit shall be granted to (A) an  indi-
vidual  with respect to whom a deduction under subsection (c) of section
one hundred fifty-one of the  internal  revenue  code  is  allowable  to
another  taxpayer  for  the  taxable  year, OR (B) A TAXPAYER WHO OWES A
PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS  DEFINED  IN  SECTION  ONE
HUNDRED  SEVENTY-ONE-Y  OF  THIS CHAPTER, ON THE LAST DAY OF THE TAXABLE
YEAR. IF A TAXPAYER WITH A PAST-DUE  STATE  TAX  LIABILITY  CLAIMS  THIS
CREDIT,  ANY  AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
BE TREATED AS A MATHEMATICAL ERROR AND  THE  COMMISSIONER  MAY  ISSUE  A
NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT. THE AMOUNT BY WHICH A
TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT OF THE LOSS OF THE
TAX  CREDIT PURSUANT TO THIS SECTION MAY NOT BE APPLIED IN ANY WAY AS AN

S. 6259                             7                            A. 9059

OFFSET  AGAINST  THE  AMOUNT  OF  THE  TAXPAYER'S  PAST-DUE  STATE   TAX
LIABILITY.
  S  6.  The  administrative  code of the city of New York is amended by
adding a new section 11-1704.2 to read as follows:
  S 11-1704.2 RECALCULATION OF TAX  RATE  FOR  TAXPAYERS  WITH  PAST-DUE
STATE TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABIL-
ITY, AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THE
TAX LAW, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
SUCH  TAXPAYER  UNDER SECTION 11-1701 OF THIS SUBCHAPTER FOR THE TAXABLE
YEAR SHALL BE RECALCULATED BY THE COMMISSIONER OF TAXATION  AND  FINANCE
SO  AS TO ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE
HUNDRED EIGHTY-NINE OF THE LAWS OF  NINETEEN  HUNDRED  NINETY-SEVEN,  AS
ADJUSTED.    SUCH RECALCULATION SHALL BE TREATED AS A MATHEMATICAL ERROR
AND THE COMMISSIONER OF TAXATION AND FINANCE  MAY  ISSUE  A  NOTICE  AND
DEMAND  TO  THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT OF SUCH RECALCU-
LATION.  THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES
AS A RESULT OF THE RECALCULATION OF THE APPLICABLE TAX RATE PURSUANT  TO
THIS  SECTION  MAY  NOT  BE  APPLIED IN ANY WAY AS AN OFFSET AGAINST THE
AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABILITY.
  S 7. Paragraph 1 of subdivision (c) of section 11-1706 of the adminis-
trative code of the city of New York, as amended by section 6 of part  A
of chapter 56 of the laws of 1998, is amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state  school  tax  reduction credit shall be allowed as provided in the
following tables. The credit shall be allowed against the taxes  author-
ized  by  this article reduced by the credits permitted by this article.
If the credit exceeds the tax as so reduced, the taxpayer  may  receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay  as an overpayment, without interest, the amount of such excess. For
purposes of this subdivision, no credit shall be granted to (A) an indi-
vidual with respect to whom a deduction under subsection (c) of  section
one  hundred  fifty-one  of  the  internal  revenue code is allowable to
another taxpayer for the taxable year, OR (B)  A  TAXPAYER  WHO  OWES  A
PAST-DUE  STATE  TAX  LIABILITY,  AS THAT TERM IS DEFINED IN SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW, ON THE LAST  DAY  OF  THE  TAXABLE
YEAR.    IF  A  TAXPAYER WITH A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS  CREDIT  SHALL
BE  TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER OF TAXATION AND
FINANCE MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR  SUCH  AMOUNT.
THE  AMOUNT  BY  WHICH  A TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A
RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE
APPLIED IN ANY WAY AS AN OFFSET AGAINST THE  AMOUNT  OF  THE  TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S  8.  Paragraph  (a)  of  subdivision  3 of section 54-f of the state
finance law, as added by section 139 of part A of  chapter  389  of  the
laws of 1997, is amended to read as follows:
  (a) The amount of such reimbursement shall be estimated by the commis-
sioner  of  taxation and finance on or before December first of the year
preceding the state fiscal year during which such amount is to  be  paid
begins. The commissioner shall use the best available information at his
or her disposal to estimate such amount. In addition to such methods and
information  the commissioner may use in making such estimate, he or she
shall consult with the city department of finance during the preparation
of the determination of such amount.  SUCH REIMBURSEMENT SHALL DISREGARD
THE AMOUNT OF BENEFITS RECALCULATED PURSUANT TO SECTION THIRTEEN HUNDRED

S. 6259                             8                            A. 9059

FOUR-E OF THE TAX LAW AND CREDITS DENIED PURSUANT TO  PARAGRAPH  ONE  OF
SUBSECTION (E) OF SECTION THIRTEEN HUNDRED TEN OF THE TAX LAW.
  S  9.  This  act  shall take effect immediately; provided however that
sections four through seven of this act shall  apply  to  taxable  years
beginning on or after January 1, 2012.

                                 PART C

  Section  1.  The  article  heading  of  article  20 of the tax law, as
amended by chapter 71 of the  laws  of  1959,  is  amended  to  read  as
follows:
             TAX ON CIGARETTES, CIGARS AND TOBACCO PRODUCTS
  S  2.  Subdivision  2  of  section  470  of the tax law, as amended by
section 15 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  2.  "Tobacco  products."  Any  [cigar,  including  a little cigar, or]
tobacco, other than cigarettes AND CIGARS, intended for consumption  [by
smoking, chewing, or as snuff].
  S  3. Subdivision 6 of section 470 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
  6. ["Wholesale price." The established price for which a  manufacturer
sells  tobacco  products  to  a distributor, before the allowance of any
discount, trade allowance, rebate or other reduction.
  In the absence of such an established price, a manufacturer's  invoice
price of any tobacco product shall be presumptive evidence of the whole-
sale  price  of  such  tobacco  product, and in its absence the price at
which such tobacco products were purchased shall be presumed to  be  the
wholesale  price,  unless  evidence  of a lower wholesale price shall be
established or any industry standard of markups relating to the purchase
price in relation to the wholesale price shall be  established.]  "LOOSE
TOBACCO." ANY TOBACCO PRODUCTS, OTHER THAN SNUFF AND LITTLE CIGARS.
  S  4.  Subdivision  8  of  section  470  of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2005,  is  amended  to
read as follows:
  8.  "Wholesale dealer." Any person who (a) sells cigarettes, CIGARS or
tobacco products to retail dealers or  other  persons  for  purposes  of
resale,  or (b) owns, operates or maintains one or more cigarette, CIGAR
or tobacco product vending machines in, at or  upon  premises  owned  or
occupied by any other person, or (c) sells cigarettes, CIGARS or tobacco
products  to  an  Indian  nation  or tribe or to a reservation cigarette
seller on a qualified reservation.
  S 5. Subdivision 9 of section 470 of the tax law, as amended by  chap-
ter 61 of the laws of 1989, is amended to read as follows:
  9.  "Retail  dealer." Any person other than a wholesale dealer engaged
in selling cigarettes, CIGARS or tobacco products.
  S 6. Subdivision 12 of section 470 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
  12. "Distributor." Any person who imports or  causes  to  be  imported
into  this state any CIGAR OR tobacco product (in excess of fifty cigars
or one pound of tobacco) for sale, or  who  manufactures  any  CIGAR  OR
tobacco  product  in  this  state,  and any person within or without the
state who is authorized by the commissioner [of taxation and finance] to
make returns and pay the tax on CIGARS OR tobacco products sold, shipped
or delivered by [him] SUCH PERSON to any person in the state.

S. 6259                             9                            A. 9059

  S 7. Subdivision 18 of section 470 of the tax law, as added by section
1 of part QQ-1 of chapter 57 of the laws of 2008, is amended to read  as
follows:
  18.  "Snuff."  Any finely cut, ground, or powdered tobacco that is not
intended to be smoked. SNUFF INCLUDES BOTH MOIST AND DRY SNUFF, AND  ANY
SMOKELESS  TOBACCO  PRODUCT  SIMILAR IN COMPOSITION AND MAKEUP TO SNUFF.
SNUFF DOES NOT INCLUDE CHEWING TOBACCOS SUCH AS PLUG OR TWIST TOBACCO.
  S 8. Subdivision 19 of section 470 of  the  tax  law,  as  amended  by
section  17  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  19. "Cigar." Any roll of tobacco wrapped in leaf  tobacco  or  in  any
substance  containing  tobacco (other than any roll of tobacco that is a
cigarette as defined in subdivision one of this section). "Cigar"  shall
NOT include[, except where expressly excluded,] any little cigar.
  S 9. Section 470 of the tax law is amended by adding a new subdivision
20 to read as follows:
  20. "RECEIPT." THE AMOUNT RECEIVED IN OR BY REASON OF ANY SALE, CONDI-
TIONAL  OR  OTHERWISE, OF CIGARS. RECEIPT IS EXPRESSED IN MONEY, WHETHER
PAID IN CASH, CREDIT OR PROPERTY OF ANY KIND OR  NATURE,  AND  SHALL  BE
DETERMINED  WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF FEDERAL EXCISE
TAXES, MANUFACTURER'S COUPONS, THE COST OF THE SERVICE SOLD OR THE  COST
OF  MATERIALS,  LABOR  OR  SERVICES  USED  OR  OTHER  COSTS, INTEREST OR
DISCOUNT PAID OR ANY OTHER EXPENSES WHATSOEVER.
  S 10. Paragraph (a) of subdivision 1 of section 471-b of the tax  law,
as  amended  by section 18 of part D of chapter 134 of the laws of 2010,
is amended to read as follows:
  (a) Such tax on LOOSE tobacco [products other than  snuff  and  little
cigars]  shall  be at the rate of [seventy-five percent of the wholesale
price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A  PROPORTIONATE
RATE  ON  ANY  FRACTIONAL  PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER, and  is  intended
to  be  imposed  only  once upon the sale of any LOOSE tobacco [products
other than snuff and little cigars].
  S 11. Section 471-b of the tax law is amended by adding a new subdivi-
sion 4 to read as follows:
  4. THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY  TO  CIGARS  ON  OR
AFTER, JUNE FIRST, TWO THOUSAND TWELVE.
  S  12.  Subdivision (a) of section 471-c of the tax law, as amended by
section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs  (i)
and  (ii)  as  amended  by  section  20  and paragraph (iii) as added by
section 21 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  (a)  There  is  hereby  imposed and shall be paid a tax on all tobacco
products used in the state by any person, except that no such tax  shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt  from  the tax imposed by said section, or (3) on the use of [two
hundred fifty cigars or less, or] five pounds or less of  tobacco  other
than roll-your-own tobacco[,] or thirty-six ounces or less of roll-your-
own  tobacco  brought  into  the  state on, or in the possession of, any
person.
  (i) Such tax on LOOSE tobacco [products other than  snuff  and  little
cigars]  shall  be at the rate of [seventy-five percent of the wholesale
price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A  PROPORTIONATE
RATE  ON  ANY  FRACTIONAL  PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER.

S. 6259                            10                            A. 9059

  (ii) Such tax on snuff shall be at the rate of two dollars  per  ounce
and  a  proportionate rate on any fractional parts of an ounce, provided
that cans or packages of snuff with a net weight of less than one  ounce
shall  be  taxed at the equivalent rate of cans or packages weighing one
ounce.  Such  tax shall be computed based on the net weight as listed by
the manufacturer.
  (iii) Such tax on little cigars shall be at the same rate  imposed  on
cigarettes  under  this  article and is intended to be imposed only once
upon the sale of any little cigars.
  S 13. The tax law is amended by adding a new section 471-f to read  as
follows:
  S 471-F. IMPOSITION OF CIGAR TAX. 1. THERE IS HEREBY IMPOSED AND THERE
SHALL BE PAID A TAX OF FIFTY PERCENT UPON THE RECEIPTS FROM EVERY RETAIL
SALE OF CIGARS, EXCEPT THAT NO TAX SHALL BE IMPOSED ON CIGARS SOLD UNDER
SUCH  CIRCUMSTANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH TAX,
OR SOLD TO THE UNITED STATES, OR SOLD TO OR BY A VOLUNTARY UNINCORPORAT-
ED ORGANIZATION OF THE ARMED FORCES OF THE  UNITED  STATES  OPERATING  A
PLACE  FOR  THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE
APPROPRIATE EXECUTIVE  AGENCY  OF  THE  UNITED  STATES,  TO  THE  EXTENT
PROVIDED  IN  SUCH  REGULATIONS  AND POLICY STATEMENTS OF SUCH AN AGENCY
APPLICABLE TO SUCH SALES.  SUCH TAX IS INTENDED TO BE IMPOSED ONLY  ONCE
UPON THE SALE OF ANY CIGARS. IT SHALL BE PRESUMED THAT ALL CIGARS WITHIN
THE  STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
BURDEN OF PROOF THAT ANY CIGARS ARE NOT TAXABLE HEREUNDER SHALL BE  UPON
THE PERSON IN POSSESSION THEREOF.
  2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
TAX SHALL BE UPON THE CONSUMER, AND THAT ANY RETAIL DEALER WHO SHALL PAY
THE  TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER OR
CONSUMER.
  3. THE DISTRIBUTOR SHALL BE LIABLE UNDER SECTION FOUR  HUNDRED  SEVEN-
TY-ONE-H  OF  THIS ARTICLE FOR THE PREPAYMENT OF THE CIGAR TAX ON CIGARS
WHICH HE OR SHE IMPORTS OR CAUSES TO BE  IMPORTED  INTO  THE  STATE,  OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED  BY  THE  COMMISSIONER  TO MAKE RETURNS AND PREPAY THE CIGAR TAX ON
CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO  ANY  PERSON  IN  THE
STATE  SHALL BE LIABLE FOR THE PREPAYMENT OF THE CIGAR TAX ON ALL CIGARS
SO SOLD, SHIPPED OR DELIVERED.
  4. SEPARATE STATEMENT OF TAX.  DISTRIBUTORS,  WHOLESALE  DEALERS,  AND
RETAIL  DEALERS  REQUIRED  TO COLLECT OR PASS THROUGH THE TAX IMPOSED BY
THIS SECTION SHALL STATE, CHARGE, AND SHOW THAT TAX SEPARATELY FROM  THE
PRICE  OR CHARGE, AND ALSO SEPARATELY FROM ANY OTHER TAX IMPOSED BY THIS
ARTICLE OR OTHER LAW ON ANY  SALES  SLIP,  INVOICE,  RECEIPT,  OR  OTHER
STATEMENT  OR  MEMORANDUM OF THE PRICE OR CHARGE, PAID OR PAYABLE, GIVEN
TO THE CUSTOMER.
  S 14. The tax law is amended by adding a new section 471-g to read  as
follows:
  S 471-G. USE TAX ON CIGARS.  (A) THERE IS HEREBY IMPOSED ON ALL CIGARS
USED  IN  THE  STATE  BY  ANY  PERSON,  EXCEPT THAT NO SUCH TAX SHALL BE
IMPOSED (1) IF THE TAX PROVIDED IN SECTION FOUR HUNDRED SEVENTY-ONE-F OF
THIS ARTICLE IS PAID, OR (2) ON THE USE OF CIGARS WHICH ARE EXEMPT  FROM
THE  TAX  IMPOSED  BY SAID SECTION, OR (3) ON THE USE OF FIFTY CIGARS OR
LESS BROUGHT INTO THE STATE ON, OR IN THE  POSSESSION  OF,  ANY  PERSON.
THERE  IS  HEREBY IMPOSED AND THERE SHALL BE PAID A TAX OF FIFTY PERCENT
UPON ALL RECEIPTS PAID OR REQUIRED TO BE PAID FROM EVERY RETAIL SALE  OF
CIGARS.

S. 6259                            11                            A. 9059

  (B) WITHIN TWENTY-FOUR HOURS AFTER LIABILITY FOR THE TAX ACCRUES, EACH
SUCH  PERSON  SHALL  FILE WITH THE COMMISSIONER A RETURN IN SUCH FORM AS
THE COMMISSIONER MAY PRESCRIBE TOGETHER WITH A  REMITTANCE  OF  THE  TAX
SHOWN  TO  BE  DUE THEREON. FOR PURPOSES OF THIS ARTICLE, THE WORD "USE"
MEANS  THE  EXERCISE  OF  ANY  RIGHT OR POWER ACTUAL OR CONSTRUCTIVE AND
SHALL INCLUDE BUT IS NOT LIMITED TO THE RECEIPT, STORAGE OR ANY  KEEPING
OR  RETENTION  FOR  ANY LENGTH OF TIME, BUT SHALL NOT INCLUDE POSSESSION
FOR SALE. ALL THE OTHER PROVISIONS OF THIS ARTICLE, IF NOT INCONSISTENT,
SHALL APPLY TO THE ADMINISTRATION AND ENFORCEMENT OF THE TAX IMPOSED  BY
THIS  SECTION  IN  THE SAME MANNER AS IF THE LANGUAGE OF SAID PROVISIONS
HAD BEEN INCORPORATED IN FULL INTO THIS SECTION.
  S 15. The tax law is amended by adding a new section 471-h to read  as
follows:
  S 471-H. PREPAYMENT OF CIGAR TAX.  (A)(1) EVERY DISTRIBUTOR SHALL PAY,
AS  A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY SECTION FOUR HUNDRED
SEVENTY-ONE-F OF THIS ARTICLE AND PURSUANT  TO  THE  AUTHORITY  OF  THIS
ARTICLE, A TAX ON CIGARS POSSESSED FOR SALE OR USE IN THIS STATE, EXCEPT
NO  TAX  SHALL  BE  REQUIRED  TO BE PREPAID ON CIGARS SOLD UNDER CIRCUM-
STANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE  SUCH  PREPAYMENT  OR
SOLD  TO  THE  UNITED STATES OR SOLD TO OR BY A VOLUNTARY UNINCORPORATED
ORGANIZATION OF THE ARMED FORCES OF THE UNITED STATES OPERATING A  PLACE
FOR  THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE APPRO-
PRIATE EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT PROVIDED  IN
SUCH  REGULATIONS AND WRITTEN POLICY STATEMENTS OF SUCH AN AGENCY APPLI-
CABLE TO SUCH SALES.
  (2) THE COMMISSIONER MAY, IN THE  COMMISSIONER'S  DISCRETION,  REQUIRE
ANY  DISTRIBUTOR  TO  FILE WITH THE DEPARTMENT A BOND ISSUED BY A SURETY
COMPANY APPROVED BY THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES  AS  TO
SOLVENCY  AND  RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS IN THE
STATE OR OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN  SUCH  AMOUNT
AS  THE COMMISSIONER MAY FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE FROM
SUCH DISTRIBUTOR PURSUANT TO THIS SECTION. IF SECURITIES  ARE  DEPOSITED
AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE
CUSTODY  OF  THE  COMMISSIONER AND MAY BE SOLD BY THE COMMISSIONER IF IT
BECOMES NECESSARY TO DO SO IN ORDER TO RECOVER ANY SUMS  DUE  FROM  SUCH
DISTRIBUTOR  PURSUANT  TO  THIS  SECTION,  BUT NO SUCH SALE SHALL BE HAD
UNTIL AFTER SUCH DISTRIBUTOR SHALL HAVE HAD AN OPPORTUNITY  TO  LITIGATE
THE  VALIDITY  OF  ANY PREPAYMENT OF TAX IF IT ELECTS TO DO SO. UPON ANY
SUCH SALE, THE SURPLUS, IF ANY, ABOVE THE SUMS DUE  UNDER  THIS  SECTION
SHALL BE RETURNED TO SUCH DISTRIBUTOR.
  (3) WHERE CIGARS ARE IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE,
OR MANUFACTURED IN THE STATE, THE AMOUNT OF THE CIGAR TAX REQUIRED TO BE
PREPAID PURSUANT TO THIS SECTION SHALL BE TWENTY CENTS ON EACH CIGAR.
  (B)  EXCEPT  AS OTHERWISE PROVIDED IN THIS SECTION, THE TAXES REQUIRED
TO BE PREPAID  PURSUANT  TO  THIS  SECTION  SHALL  BE  ADMINISTERED  AND
COLLECTED IN A LIKE MANNER AS THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED
SEVENTY-ONE-F  AND  FOUR  HUNDRED SEVENTY-ONE-G OF THIS ARTICLE. ALL THE
PROVISIONS OF THIS ARTICLE RELATING TO OR  APPLICABLE  TO  THE  ADMINIS-
TRATION,  COLLECTION  AND  DISPOSITION  OF  THE  TAXES  IMPOSED  BY SUCH
SECTIONS SHALL APPLY TO THE  TAX  REQUIRED  TO  BE  PREPAID  UNDER  THIS
SECTION SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH PREPAY-
MENTS OF TAX WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH
MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE
TAX  SO  IMPOSED.  SUCH  PROVISIONS  SHALL APPLY WITH THE SAME FORCE AND
EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL
IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON-

S. 6259                            12                            A. 9059

SISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO  THE  TAX
REQUIRED  TO  BE  PREPAID BY THIS SECTION. FOR PURPOSES OF THIS SECTION,
ANY REFERENCE IN THIS ARTICLE TO THE TAX OR TAXES  IMPOSED  BY  SECTIONS
FOUR  HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTI-
CLE SHALL BE DEEMED TO REFER TO THE TAX REQUIRED TO BE PREPAID  PURSUANT
TO THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
  (C)  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO  THIS  SECTION  MORE  THAN
ONCE  UPON  CIGARS POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN THE
PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL HAVE BEEN
SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED  SEVEN-
TY-ONE-F  OR  FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE AND PURSUANT TO
THE AUTHORITY OF THIS ARTICLE WITH RESPECT TO THE RETAIL SALE OR THE USE
OF CIGARS. NOTHING IN THIS SECTION SHALL  MODIFY  OR  AFFECT  THE  TAXES
IMPOSED  BY  SECTIONS FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVEN-
TY-ONE-G OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE SALE, OR TO THE
USE, OF SUCH CIGARS.
  (D) THE DISTRIBUTOR SHALL BE LIABLE FOR  THE  PREPAID  TAX  ON  CIGARS
WHICH  HE  OR  SHE  IMPORTS  OR CAUSES TO BE IMPORTED INTO THE STATE, OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED BY THE COMMISSIONER TO MAKE RETURNS AND  PAY  THE  PREPAID  TAX  ON
CIGARS  SOLD,  SHIPPED  OR  DELIVERED BY HIM OR HER TO ANY PERSON IN THE
STATE SHALL BE LIABLE FOR THE PREPAID TAX ON ALL CIGARS SO SOLD, SHIPPED
OR DELIVERED.
  S 16. The tax law is amended by adding a new section 471-i to read  as
follows:
  S 471-I. REFUNDS AND CREDITS WITH RESPECT TO CIGARS.
  (A)  RETAIL  DEALER.    (1)  A RETAIL DEALER OF CIGARS WHO OR WHICH IS
REQUIRED  TO  COLLECT  THE  TAXES  IMPOSED  BY  SECTION   FOUR   HUNDRED
SEVENTY-ONE-F  OF  THIS  ARTICLE  SHALL  BE  ALLOWED  A REFUND OR CREDIT
AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED  TO  THE
COMMISSIONER  PURSUANT  TO THE PROVISIONS OF SECTION FOUR HUNDRED SEVEN-
TY-ONE-F OF THIS ARTICLE UPON THE RETAIL SALE OF CIGARS IN THE AMOUNT OF
THE TAX ON SUCH CIGARS PREPAID BY OR PASSED THROUGH TO AND  INCLUDED  IN
THE  PRICE  PAID  BY  SUCH  RETAIL  DEALER PURSUANT TO THE PROVISIONS OF
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE.
  (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH  RETAIL  DEALER  FOR
THE  TAX  PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID
BY SUCH RETAIL DEALER UPON ANY CIGARS  PURSUANT  TO  THE  PROVISIONS  OF
SECTION  FOUR  HUNDRED  SEVENTY-ONE-F OF THIS ARTICLE IF SUCH CIGARS ARE
SOLD AT RETAIL BY SUCH RETAIL DEALER UNDER CIRCUMSTANCES WHERE THE TAXES
IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE AND PURSU-
ANT TO THE AUTHORITY OF THIS ARTICLE ARE NOT REQUIRED BY THE  PROVISIONS
OF THIS ARTICLE TO BE COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL
SALE THEREOF.
  (B)  EXPORT,  DESTRUCTION, TAX PAID IN ERROR. WHENEVER ANY CIGARS UPON
WHICH THE PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED  SEVENTY-ONE-H  OF
THIS  ARTICLE  HAS BEEN PAID HAVE BEEN SOLD AND SHIPPED TO ANOTHER STATE
FOR SALE OR USE THERE OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED  THAT
ANY   TAX   REQUIRED   TO  BE  PREPAID  BY  SUCH  SECTION  FOUR  HUNDRED
SEVENTY-ONE-H OF THIS  ARTICLE  SHALL  HAVE  BEEN  PAID  IN  ERROR,  THE
DISTRIBUTOR OR DEALER, AS THE CASE MAY BE, SHALL BE ENTITLED TO A REFUND
OR  CREDIT  OF  THE ACTUAL AMOUNT OF PREPAID TAX SO PAID WITH RESPECT TO
CIGARS WHICH WILL NOT BE POSSESSED FOR SALE OR USE IN THIS STATE.

S. 6259                            13                            A. 9059

  (C) REFUNDS OF  THE  TAX  REQUIRED  TO  BE  PREPAID  PURSUANT  TO  THE
PROVISIONS  OF  SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL
BE ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR PASSED THROUGH TO  THE
RETAIL  DEALER,  OR  THE  PURCHASER  OR  USER, EXCEEDS THE AMOUNT OF TAX
REQUIRED  TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED BY
THE PROVISIONS OF THIS ARTICLE.
  (D) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
EXTENT THAT THE TAX REQUIRED TO BE  PREPAID  PURSUANT  TO  SECTION  FOUR
HUNDRED  SEVENTY-ONE-H  OF  THIS  ARTICLE  HAS BEEN PREPAID BY OR PASSED
THROUGH TO SUCH RETAIL DEALER, PURCHASER OR USER, BUT ONLY TO THE EXTENT
THAT THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTI-
CLE TOGETHER WITH THE TAX IMPOSED BY SECTION FOUR HUNDRED  SEVENTY-ONE-G
OF  THIS  ARTICLE  REQUIRED  TO BE PAID, COLLECTED AND REMITTED HAS BEEN
PAID, COLLECTED AND REMITTED.
  (E) SUCH REFUNDS AND CREDITS SHALL BE SUBJECT  TO  THE  PROVISIONS  OF
SECTION  FOUR HUNDRED SEVENTY-SIX OF THIS ARTICLE AS IF SUCH SECTION WAS
INCORPORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
REFUNDS AND CREDITS AUTHORIZED BY THIS SECTION INCLUDING THE PERIODS  OF
LIMITATIONS  ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER; PROVIDED,
HOWEVER, THAT, AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-SIX  OF  THIS
ARTICLE,  NO  INTEREST  SHALL BE ALLOWED OR PAID UPON ANY REFUND MADE OR
CREDIT ALLOWED PURSUANT TO SUBDIVISIONS (A) AND (B) OF THIS SECTION. THE
COMMISSIONER SHALL PROCESS APPLICATIONS FOR REFUND AS  EXPEDITIOUSLY  AS
POSSIBLE.
  S  17. The tax law is amended by adding a new section 471-j to read as
follows:
  S 471-J. SPECIAL PROVISION  AS  TO  IMPOSITION  OF  TAXES  ON  CERTAIN
CIGARS.  IF  A  PERSON  SHALL RECEIVE ANY CIGARS, UPON WHICH CIGARS THIS
STATE WAS WITHOUT POWER TO IMPOSE THE TAXES UNDER THIS ARTICLE, AND SUCH
PERSON SHALL THEREAFTER POSSESS SUCH CIGARS FOR SALE  OR  USE  ANY  SUCH
CIGARS  IN  SUCH  MANNER AND UNDER SUCH CIRCUMSTANCES AS MAY SUBJECT THE
SAME TO THE TAXING POWER OF THIS STATE WITH RESPECT TO  SUCH  POSSESSION
FOR  SALE  OR  USE,  SUCH  PERSON SHALL BE LIABLE FOR THE TAX IMPOSED BY
SECTION FOUR HUNDRED SEVENTY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS
ARTICLE, AS THE CASE MAY BE WITH RESPECT TO SUCH SALE OR USE, AND  SHALL
MAKE  THE SAME REPORTS AND RETURNS, PAY THE SAME TAXES AND BE SUBJECT TO
ALL OTHER PROVISIONS OF THIS ARTICLE RELATING TO DISTRIBUTORS OR  RETAIL
DEALERS,  EXCEPT  THAT  SUCH  A  PERSON  SHALL  NOT  BE  SUBJECT  TO THE
PROVISIONS OF SECTIONS FOUR HUNDRED SEVENTY-TWO AND FOUR HUNDRED  EIGHTY
OF THIS ARTICLE IF SUCH PERSON DOES NOT OFFER CIGARS FOR SALE.
  S  18. The tax law is amended by adding a new section 471-k to read as
follows:
  S 471-K. COLLECTION OF  TAX  FROM  CUSTOMER;  FILING  OF  RETURNS  AND
PAYMENT.
  (A)(1)  EVERY  RETAIL  DEALER SHALL COLLECT THE TAX IMPOSED BY SECTION
FOUR HUNDRED SEVENTY-ONE-F  OF  THIS  ARTICLE  FROM  THE  CUSTOMER  WHEN
COLLECTING THE RECEIPT TO WHICH IT APPLIES. EACH CUSTOMER SHALL BE GIVEN
SOME  INDICIA  OF  SALE, INCLUDING SALES SLIP, INVOICE, RECEIPT OR OTHER
STATEMENT OR MEMORANDUM OF THE PRICE, UPON WHICH THE TAX SHALL BE  STAT-
ED, CHARGED AND SHOWN SEPARATELY.
  (2)  EXCEPT  AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS
OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER RELATING TO THE PERSONAL LIABIL-
ITY FOR THE TAX, ADMINISTRATION AND COLLECTION AND DETERMINATION OF TAX,
INCLUDING SECTION ELEVEN HUNDRED THIRTY-EIGHT OF THIS  CHAPTER  RELATING
TO  DETERMINATION OF TAX BUT NOT INCLUDING SECTION ELEVEN HUNDRED FORTY-
FIVE OF THIS CHAPTER, SHALL APPLY TO THE TAX  IMPOSED  BY  SECTION  FOUR

S. 6259                            14                            A. 9059

HUNDRED  SEVENTY-ONE-F  OF  THIS ARTICLE IN THE SAME MANNER AND WITH THE
SAME FORCE AND EFFECT AS IF THE LANGUAGE  OF  SUCH  PROVISIONS  OF  SUCH
ARTICLE  TWENTY-EIGHT  HAD  BEEN INCORPORATED IN FULL INTO THIS ARTICLE,
EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
A  PROVISION  OF  THIS  SECTION OR IS NOT RELEVANT THERETO AND WITH SUCH
OTHER MODIFICATIONS AS MAY BE NECESSARY TO ADAPT THE  LANGUAGE  OF  SUCH
PROVISIONS  TO  THE  PROVISIONS  OF  THIS SECTION. PROVIDED, HOWEVER ALL
TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE  COMMISSIONER
UNDER  SECTIONS  FOUR HUNDRED SEVENTY-ONE-F, FOUR HUNDRED SEVENTY-ONE-G,
AND FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL  BE  DEPOSITED  AND
DISPOSED OF PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE.
PROVIDED,  THE  COMMISSIONER MAY REQUIRE RETURNS TO BE FILED WITH HIM OR
HER AT SUCH TIMES AND CONTAINING SUCH  INFORMATION  AS  HE  OR  SHE  MAY
PRESCRIBE.
  (B) (1) (I) NO PERSON SHALL PURCHASE CIGARS IN THIS STATE, EXCLUDING A
PURCHASE  AT  RETAIL,  UNLESS  THE TAX REQUIRED TO BE PREPAID BY SECTION
FOUR HUNDRED SEVENTY-ONE-H  OF  THIS  ARTICLE  HAS  BEEN  ASSUMED  BY  A
DISTRIBUTOR  REGISTERED  UNDER THIS ARTICLE IN ACCORDANCE WITH A CERTIF-
ICATION UNDER THIS PARAGRAPH OR PAID BY SUCH DISTRIBUTOR, AND,  IN  EACH
OF  SUCH  INSTANCES, IS PASSED THROUGH TO SUCH PURCHASER. IN ADDITION TO
ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH MAY APPLY, ANY  PERSON  WHO
PURCHASES  CIGARS IN VIOLATION OF THIS SUBPARAGRAPH SHALL BE JOINTLY AND
SEVERALLY LIABLE TO PAY THE TAX REQUIRED TO BE PREPAID BY  SECTION  FOUR
HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITH RESPECT TO SUCH CIGARS.
  (II)  FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
TO PREVENT EVASION OF THE TAX ON CIGARS IMPOSED BY AND PURSUANT TO  THIS
ARTICLE,  IT SHALL BE PRESUMED THAT ALL CIGARS IMPORTED, MANUFACTURED OR
SOLD, RECEIVED OR POSSESSED IN THE STATE IS INTENDED FOR  USE,  DISTRIB-
UTION,  STORAGE  OR SALE IN THE STATE AND SUBJECT TO THE TAX REQUIRED TO
BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS  ARTICLE  UNTIL
THE  CONTRARY  IS  ESTABLISHED.  IT  SHALL  BE FURTHER PRESUMED THAT ALL
CIGARS SO IMPORTED, MANUFACTURED, SOLD, RECEIVED  OR  POSSESSED  IN  THE
STATE  BY ANY PERSON ARE SUBJECT TO THE TAX REQUIRED TO BE PREPAID UNDER
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE AND  SUCH  PERSON  IS
RESPONSIBLE  FOR  SUCH PREPAYMENT. THE BURDEN OF PROVING THAT ANY CIGARS
ARE NOT SO SUBJECT SHALL BE UPON THE  PERSON  SO  RESPONSIBLE  FOR  SUCH
PREPAYMENT WITH RESPECT TO SUCH CIGARS.
  (III) UPON EACH SALE OF CIGARS, OTHER THAN A SALE AT RETAIL, THE SELL-
ER  MUST  GIVE  TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE, AT THE
TIME OF DELIVERY OF SUCH CIGARS, A CERTIFICATION CONTAINING SUCH  INFOR-
MATION AS THE COMMISSIONER SHALL REQUIRE WHICH SHALL INCLUDE A STATEMENT
TO  THE EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR REGISTERED UNDER THIS
ARTICLE, THAT HE OR SHE HAS ASSUMED THE  PAYMENT  OF  OR  PAID  THE  TAX
REQUIRED  TO  BE  PREPAID  BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS
ARTICLE AND, IN EACH CASE, IS PASSING THROUGH SUCH TAX OR (B) THAT  SUCH
SELLER  IS  PASSING  THROUGH SUCH TAX WHICH WAS SO PREVIOUSLY ASSUMED OR
PAID BY AN IDENTIFIED DISTRIBUTOR OR WHOLESALE DEALER  REGISTERED  UNDER
THIS ARTICLE, AND PASSED THROUGH TO HIM OR HER.
  (IV)  IF  THE  CERTIFICATION  REQUIRED  BY  THIS  PARAGRAPH  HAS  BEEN
FURNISHED TO THE PURCHASER BY THE SELLER AT  DELIVERY  AND  ACCEPTED  IN
GOOD  FAITH,  THE  BURDEN OF PROVING THAT THE TAX REQUIRED TO BE PAID BY
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS ASSUMED  OR  PAID
BY  A DISTRIBUTOR REGISTERED UNDER THIS ARTICLE AND PASSED THROUGH SHALL
BE SOLELY ON THE SELLER.
  (V) WHERE THE CERTIFICATION  REQUIRED  UNDER  THIS  PARAGRAPH  IS  NOT
FURNISHED BY THE SELLER AT DELIVERY OF CIGARS, IT SHALL BE PRESUMED THAT

S. 6259                            15                            A. 9059

THE  TAX REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR REGISTERED AS
SUCH UNDER THIS ARTICLE AND THAT THE PURCHASER IN SUCH CASE  IS  JOINTLY
AND SEVERALLY LIABLE FOR THE TAX.
  S 19. Subdivision 3 of section 472 of the tax law, as added by chapter
61  of  the laws of 1989 and as further amended by section 104 of part A
of chapter 62 of the laws of 2011, is amended to read as follows:
  3. The commissioner [of taxation and finance] may appoint  dealers  in
CIGARS  AND  tobacco  products,  manufacturers  of  CIGARS  AND  tobacco
products and other persons within or without the state  as  distributors
and  may authorize them to make returns and to pay the tax on CIGARS AND
tobacco products sold, shipped or delivered by them to any person in the
state. The commissioner may, in  his  OR  HER  discretion,  require  the
deposit of a bond issued by a surety company approved by the superinten-
dent of financial services as to solvency and responsibility and author-
ized to transact business in this state, or other security acceptable to
the  commissioner  in an amount and form satisfactory to him OR HER as a
condition of appointing any such person as a distributor. If  securities
are  deposited as security under this subdivision, such securities shall
be kept in the custody of the commissioner [of taxation and finance] and
may be sold by the commissioner if it becomes  necessary  so  to  do  in
order  to  recover  any  sums due from such distributor pursuant to this
article, but no such sale shall be  had  until  after  such  distributor
shall  have had an opportunity to litigate the validity of any tax if it
elects so to do. Upon any such sale, the surplus, if any, above the sums
due under this article shall be returned to such distributor.
  S 20. Section 473-a of the tax law, as added by chapter 61 of the laws
of 1989, is amended to read as follows:
  S 473-a. Returns and payment of CIGARS PREPAID  AND  tobacco  products
[tax]  TAXES  by  distributors.    1. (A) Every distributor shall, on or
before the twentieth day of each month, file with the  commissioner  [of
taxation  and  finance] a return on forms to be prescribed and furnished
by the commissioner, showing the quantity and [wholesale  price]  WEIGHT
of  all  tobacco products OR QUANTITY OF CIGARS imported or caused to be
imported into the state by him OR HER or manufactured in  the  state  by
him  OR  HER,  during  the  preceding  calendar month. Every distributor
authorized by the commissioner to make returns and pay the tax on CIGARS
OR tobacco products sold, shipped or delivered by  him  OR  HER  to  any
person in the state shall file a return showing the quantity and [whole-
sale price] WEIGHT of all tobacco products so sold, shipped or delivered
during the preceding calendar month. Provided, however, the commissioner
may,  if  he OR SHE deems it necessary in order to insure the payment of
the taxes imposed by this article, require returns to be  made  at  such
times and covering such periods as he OR SHE may deem necessary, and, by
regulation, may permit the filing of returns on a quarterly, semi-annual
or annual basis, or may waive the filing of returns by a distributor for
such  time and upon such terms as he OR SHE may deem proper if satisfied
that no tax imposed by this article is or will be payable by him OR  HER
during the time for which returns are waived. Such returns shall contain
such further information as the commissioner may require.
  (B)  EVERY  DISTRIBUTOR  SHALL, ON OR BEFORE THE TWENTIETH DAY OF EACH
MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED AND
FURNISHED BY THE  COMMISSIONER,  SHOWING  THE  QUANTITY  OF  ALL  CIGARS
IMPORTED  OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM OR HER OR MANU-
FACTURED IN THE STATE BY HIM  OR  HER,  DURING  THE  PRECEDING  CALENDAR
MONTH.  EVERY DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS

S. 6259                            16                            A. 9059

AND PAY THE CIGAR PREPAID TAX ON CIGARS SOLD, SHIPPED  OR  DELIVERED  BY
HIM  OR  HER  TO ANY PERSON IN THE STATE SHALL FILE A RETURN SHOWING THE
QUANTITY OF ALL CIGARS SO SOLD, SHIPPED OR DELIVERED DURING THE  PRECED-
ING  CALENDAR  MONTH.  PROVIDED, HOWEVER, THE COMMISSIONER MAY, IF HE OR
SHE DEEMS IT NECESSARY IN ORDER TO  INSURE  THE  PAYMENT  OF  THE  CIGAR
PREPAID  TAX IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE AT SUCH
TIMES AND COVERING SUCH PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY
REGULATION, MAY PERMIT THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL
OR ANNUAL BASIS, OR MAY WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR
SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF  SATISFIED
THAT  NO CIGAR PREPAID TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE
BY HIM OR HER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS
SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
  2. Every distributor shall pay to the commissioner with the filing  of
such return the tax on CIGARS OR tobacco products for such month imposed
under this article.
  S  21. Subdivisions 2, 3 and 4 of section 474 of the tax law, subdivi-
sion 2 as amended by chapter 552 of the laws of 2008, subdivision  3  as
added  and  subdivision  4 as amended by chapter 61 of the laws of 1989,
are amended to read as follows:
  2. Every person who shall possess or transport more than [two hundred]
fifty cigars, or more than five pounds of tobacco other than  roll-your-
own  tobacco[,]  or more than thirty-six ounces of roll-your-own tobacco
upon the public highways, roads  or  streets  of  the  state,  shall  be
required  to  have  in [his] SUCH PERSON'S actual possession invoices or
delivery tickets for such CIGARS OR tobacco products. Such  invoices  or
delivery  tickets  shall  show  the name and address of the consignor or
seller, the  name  and  address  of  the  consignee  or  purchaser,  the
quantity,  WEIGHT  and  brands  of the CIGARS OR tobacco products trans-
ported, and the name and address of the person who has or  shall  assume
the  payment  of  the  tax  [and the wholesale price] or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such  person  is  a  dealer  in  CIGARS  OR  tobacco
products in this state and subject to the requirements of this article.
  3.  Every  dealer  or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars or more than one pound of tobacco  upon  the
public  highways,  roads  or  streets of the state, shall be required to
have in his OR HER actual possession invoices or  delivery  tickets  for
such CIGARS OR tobacco products. Such invoices or delivery tickets shall
show  the  name  and  address  of  the consignor or seller, the name and
address of the consignee or purchaser, the quantity, WEIGHT  and  brands
of  the CIGARS OR tobacco products transported, and the name and address
of the person who has or shall assume the payment of the  tax  [and  the
wholesale  price]  or  the  tax  paid  or  payable.  The absence of such
invoices or delivery tickets shall be prima facie evidence that the  tax
imposed  by this article on CIGARS OR tobacco products has not been paid
and is due and owing.
  4. At the time of delivering cigarettes to any person  each  agent  or
wholesale  dealer,  and  at  the  time  of  delivering CIGARS OR tobacco
products to any person each distributor or wholesale dealer of CIGARS OR
tobacco products, shall make a true duplicate invoice showing  the  date
of  delivery,  the number of packages and number of cigarettes contained
therein, in each shipment of cigarettes delivered,  and  the  items  and
quantity  and  [wholesale price] WEIGHT of each item in each shipment of
tobacco products OR QUANTITY OF CIGARS delivered, and the  name  of  the

S. 6259                            17                            A. 9059

purchaser  to  whom  delivery  is  made, and shall retain the same for a
period of three years subject to the use and inspection of  the  commis-
sioner  [of  taxation and finance]. Each dealer shall procure and retain
invoices  showing  the  number  of  packages  and  number  of cigarettes
contained therein, in each shipment of cigarettes  received  by  him  OR
HER,  and  the  items  and quantity and [wholesale price] WEIGHT of each
item in each shipment of CIGARS OR tobacco products received by  him  OR
HER, the date thereof, and the name of the shipper, and shall retain the
same  for  a  period of three years subject to the use and inspection of
the commissioner [of taxation and finance]. The commissioner  [of  taxa-
tion  and  finance]  by regulation may provide that whenever cigarettes,
CIGARS or tobacco products are shipped  into  the  state,  the  railroad
company,  express  company,  trucking  company  or  other public carrier
transporting any shipment thereof shall file with the  commissioner  [of
taxation  and  finance] a copy of the freight bill within ten days after
the delivery in the state of each shipment. All dealers  shall  maintain
and  keep  for a period of three years such other records of cigarettes,
CIGARS or tobacco products received, sold or delivered within the  state
as  may  be  required by the commissioner [of taxation and finance]. The
commissioner [of taxation and finance] is hereby authorized  to  examine
the  books,  papers,  invoices  and  other  records  of  any  person  in
possession, control or  occupancy  of  any  premises  where  cigarettes,
CIGARS or tobacco products are placed, stored, sold or offered for sale,
and the equipment of any such person pertaining to the stamping of ciga-
rettes  or  the  sale  and  delivery  of  cigarettes,  CIGARS or tobacco
products taxable under this article, as well as the stock of cigarettes,
CIGARS or tobacco products in any such premises or  vehicle.  To  verify
the  accuracy of the tax imposed and assessed by this article, each such
person is hereby directed and required to give to the  commissioner  [of
taxation and finance] or his OR HER duly authorized representatives, the
means,  facilities  and  opportunity for such examinations as are herein
provided for and required.
  S 22. The section heading of section 475 of the tax law, as amended by
chapter 227 of the laws of 1956, is amended to read as follows:
  General powers of the [tax commission] COMMISSIONER.
  S 23. Section 476 of the tax law, as amended by chapter 61 of the laws
of 1989, is amended to read as follows:
  S 476. Refunds; sales of stamps. Whenever any  cigarettes  upon  which
stamps have been placed or CIGARS OR tobacco products upon which the tax
has  been paid have been sold and shipped into another state for sale or
use there or have become unfit for use and consumption or unsalable,  or
have  been  destroyed,  or  whenever  the  commissioner [of taxation and
finance] shall have determined that any  tax  imposed  by  this  article
shall  have  been  paid  in error, the agent, dealer or CIGAR OR tobacco
products distributor, as the case may be, shall be entitled to a  refund
of  the  actual  amount of tax so paid, provided application therefor is
filed with the commissioner [of taxation and finance] within  two  years
after  the  stamps  were  affixed to such cigarettes or the tax was paid
upon such CIGARS OR tobacco products, except if an agreement  under  the
provisions  of  section  four  hundred  seventy-eight  OF  THIS  ARTICLE
(extending the period for determination of tax imposed by this  article)
is  made within the two-year period for the filing of an application for
refund provided for in this section, the period for filing  an  applica-
tion  for  refund shall not expire prior to six months after the expira-
tion of the period within which a determination may be made pursuant  to
the agreement or any extension thereof. If the commissioner [of taxation

S. 6259                            18                            A. 9059

and  finance] is satisfied that any dealer is entitled to a refund he OR
SHE shall issue to such dealer stamps of sufficient value to  cover  the
refund  of  the  tax on cigarettes or may, subject to audit by the comp-
troller,  make a refund of the tax on cigarettes or on CIGARS OR tobacco
products. No person shall sell or offer for sale  any  stamp  or  stamps
issued  under  this  article except by written permission of the commis-
sioner [of taxation and finance].  The  commissioner  [of  taxation  and
finance]  may redeem unused stamps lawfully in possession of any person.
The commissioner [of taxation and finance] may prescribe necessary rules
and regulations concerning refunds, sales  of  stamps,  and  redemptions
under the provisions of this article.
  S 24. Paragraph (d) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:
  (d) Each applicant shall file satisfactory proof that it will maintain
a  secure separate warehousing facility for the purpose of receiving and
distributing cigarettes, CIGARS or tobacco products and  conducting  its
wholesale  business.  Such proof shall consist of a copy of a deed, or a
copy of an executed lease for a minimum period of two years, to a  sepa-
rate,  secure warehouse. If the applicant carries on another business in
conjunction with the warehouse facility, the other business  shall  also
be identified.
  S 25. Paragraph (j) of subdivision 1 of section 480 of the tax law, as
amended  by  chapter  629  of  the  laws  of 1996, is amended to read as
follows:
  (j) The commissioner may for cause refuse to issue, or may suspend  or
revoke a wholesaler's license, or may forbid a retail dealer to continue
selling  cigarettes,  CIGARS  or tobacco products or may forbid a person
required to be appointed as a distributor of CIGARS OR tobacco  products
who has not been so appointed from selling cigarettes, CIGARS or tobacco
products,  after  an  opportunity  for  hearing  has  been  afforded.  A
violation of any provision of this article or of any  regulation  issued
under  it  shall  be cause to forbid a retail dealer to continue selling
cigarettes, CIGARS or tobacco products.
  S 26. Paragraph (k) of subdivision 1 of section 480 of the tax law, as
amended by chapter 262 of the laws  of  2000,  is  amended  to  read  as
follows:
  (k)  No  agent  shall  sell  cigarettes  and no distributor shall sell
CIGARS OR tobacco products to an unlicensed wholesale dealer,  or  to  a
wholesale  dealer  whose  license has been suspended or revoked, or to a
retail dealer who is not registered under section four hundred  eighty-a
of  this  article,  or whose registration has been suspended or revoked,
and no  wholesale  dealer  shall  sell  cigarettes,  CIGARS  or  tobacco
products  to  a  retail  dealer who is not registered under section four
hundred eighty-a  of  this  article,  or  whose  registration  has  been
suspended or revoked, and no retail dealer shall sell cigarettes, CIGARS
or  tobacco products unless such dealer is registered under section four
hundred eighty-a of this article.
  S 27. Paragraph (l) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:
  (l) Paragraphs (b), (c) and (g) of this subdivision shall not apply to
the filing of an application for a license as a wholesale dealer that is
based solely upon the ownership, operation or maintenance of one or more
cigarette, CIGAR or tobacco products vending machines  in,  at  or  upon
premises  owned  or  occupied by another person, or that is based solely
upon the sale of CIGARS OR tobacco products for resale, or that is based
upon both the ownership, operation or maintenance of one or  more  ciga-

S. 6259                            19                            A. 9059

rette,  CIGAR  or tobacco products vending machines in, at or upon prem-
ises owned or occupied by another person  and  the  sale  of  CIGARS  OR
tobacco products for resale.
  S  28.  Subparagraph (iv) of paragraph (b) of subdivision 3 of section
480 of the tax law, as amended by chapter 61 of the  laws  of  1989,  is
amended to read as follows:
  (iv) Has knowingly aided and abetted the sale of cigarettes, CIGARS or
tobacco  products  by a person which such licensee or controlling person
knows (A) has not been licensed by the  commissioner  [of  taxation  and
finance] and (B) is a wholesale dealer pursuant to the terms of subdivi-
sion eight of section four hundred seventy of this [chapter] ARTICLE.
  S 29. Subdivision 4 of section 480 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  4.  If  the commissioner [of taxation and finance] considers it neces-
sary for the proper administration of the cigarette tax,  CIGAR  TAX  or
tobacco  products tax imposed by this article or the cigarette marketing
standards contained in article twenty-A of this chapter he  OR  SHE  may
require  every  person  under this article who holds a license to file a
new application for a license in such form  and  at  such  time  as  the
commissioner  may  prescribe  and to surrender such license. The commis-
sioner may require such filing and such surrender not  more  often  than
once  every  three  years.  Upon the filing of such application with the
proper fee and the surrender of such  license,  the  commissioner  shall
issue,  within  such  time  as he OR SHE may prescribe, a new license to
each applicant.
  S 30. Paragraphs (a) and (b) of subdivision 1 of section 480-a of  the
tax  law,  as  added  by chapter 190 of the laws of 1990, are amended to
read as follows:
  (a) [On and after January first, nineteen hundred  ninety-one,  every]
EVERY retail dealer shall publicly display a certificate of registration
from  the  department  in  each  place of business in this state through
which it sells cigarettes, CIGARS  or  tobacco  products  at  retail.  A
retail  dealer  who  has  no  regular  place  of business shall publicly
display such certificate on each of its carts, stands, trucks  or  other
merchandising  devices  through  which  it  sells  cigarettes, CIGARS or
tobacco products in this state.
  (b) Every person who owns or, if the owner is not the  operator,  then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether  located on the premises of the vending machine owner or, if the
owner is not the operator, then the premises  of  the  operator  or  the
premises  of  any  other person, must register each such vending machine
with the department. [On and after January first, nineteen hundred nine-
ty-one, a] A vending machine registration certificate, in such  form  as
may  be  prescribed by the commissioner [of taxation and finance], shall
be affixed to each vending machine through which cigarettes,  CIGARS  or
tobacco products are sold in this state.
  S  31. Paragraphs (a) and (b) of subdivision 2 of section 480-a of the
tax law, as amended by section 1 of part T of chapter 61 of the laws  of
2011, are amended to read as follows:
  (a)  (i)  Every retail dealer and every person owning or, if the owner
is not the operator, then any  person  operating  one  or  more  vending
machines  through  which cigarettes, CIGARS or tobacco products are sold
in this state, who is required under section eleven  hundred  thirty-six
of  this chapter to file a return for the quarterly period ending on the
last day of August OF EACH YEAR, [nineteen hundred  ninety  or  for  the

S. 6259                            20                            A. 9059

quarterly  period ending on the last day of August in any year thereaft-
er,] must file an application for registration under this  section  with
that  quarterly  return,  in  such  form  as  shall be prescribed by the
commissioner.
  (ii) Each retail dealer must pay an application fee with the quarterly
return  of  three  hundred  dollars for each retail place of business in
this  state  through  which  it  sells  cigarettes,  CIGARS  or  tobacco
products.
  (iii) Every person who owns or, if the owner is not the operator, then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether  located on the premises of the vending machine owner or, if the
owner is not the operator, then the premises  of  the  operator  or  the
premises of any other person, must pay an application fee with the quar-
terly  return  of  one  hundred  dollars  for  each vending machine. The
department will issue a registration certificate, as prescribed  by  the
commissioner, after receipt of a registration application and the appro-
priate registration fee, prior to the next succeeding January first.
  (b)  Every retail dealer and every person who owns or, if the owner is
not the operator, then any person  who  operates  one  or  more  vending
machines  through  which cigarettes, CIGARS or tobacco products are sold
in this state who commences business after  the  last  day  of  August[,
nineteen hundred ninety,] or who commences selling cigarettes, CIGARS or
tobacco  products at retail through a new or different place of business
in this state after such date,  or  who  commences  selling  cigarettes,
CIGARS  or  tobacco  products  through new or different vending machines
after such date, must file with  the  commissioner  an  application  for
registration,  in  a form prescribed by him or her, at least thirty days
prior to commencing business or commencing sales. Each application  must
be  accompanied  by an application fee of three hundred dollars for each
retail place of business  and  one  hundred  dollars  for  each  vending
machine  to be registered. The department, within ten days after receipt
of an application for registration under this paragraph and  payment  of
the  proper fee for application for registration, will issue a registra-
tion certificate, as prescribed by the  commissioner,  for  each  retail
place  of  business  or  cigarette,  CIGAR  or  tobacco products vending
machine registered.
  S 32. Paragraph (d) of subdivision 2 of section 480-a of the tax  law,
as  amended  by  chapter  760 of the laws of 1992, is amended to read as
follows:
  (d) Except as otherwise provided in this section, all  the  provisions
of article twenty-eight of this chapter relating to the personal liabil-
ity  for  the  tax, administration, collection and determination of tax,
and deposit and disposition of revenue, including section eleven hundred
thirty-eight of this  chapter  relating  to  determination  of  tax  and
section  eleven  hundred forty-five of this chapter (but only paragraphs
one and two of subdivision (a) of such section)  relating  to  penalties
and  interest  for  failure  to file a return or pay tax within the time
required, shall apply to the applications for registration and the  fees
for  filing  such  applications required by this section and the penalty
imposed pursuant to subdivision three of this section, as if such appli-
cations were returns required under section eleven hundred thirty-six of
this chapter and such filing fees, penalties  and  interest  were  taxes
required  to  be paid pursuant to such article twenty-eight, in the same
manner and with the same force and effect as if  the  language  of  such
provisions  of  such  article twenty-eight had been incorporated in full

S. 6259                            21                            A. 9059

into this article, except to the  extent  that  any  such  provision  is
either  inconsistent with a provision of this section or is not relevant
thereto and with such other modifications as may be necessary  to  adapt
the  language  of  such  provisions  to  the provisions of this section.
[Section] ANY REFERENCE TO A CERTIFICATE OF AUTHORITY SHOULD BE READ  TO
MEAN  A  CERTIFICATE  OF  REGISTRATION  FOR THE PURPOSE OF THIS SECTION.
PARAGRAPHS ONE THROUGH THREE OF SUBDIVISION A AND SUBDIVISIONS B  AND  C
OF  SECTION  eleven  hundred  thirty-four of [such article twenty-eight]
THIS CHAPTER shall not apply to this section AS  WELL  AS  ANY  LANGUAGE
CONTAINED  IN SUCH SECTION REFERRING TO AN OFFICER, DIRECTOR, PARTNER OR
EMPLOYEE OF SUCH PERSON, AND, WHERE SUCH PERSON IS A  LIMITED  LIABILITY
COMPANY,  ALSO  A  MEMBER  OR  MANAGER OF SUCH PERSON, IN THE OFFICER'S,
DIRECTOR'S, PARTNER'S, MEMBER'S, MANAGER'S OR EMPLOYEE'S CAPACITY  AS  A
PERSON  REQUIRED  TO  COLLECT  TAX  ON  BEHALF OF SUCH PERSON OR ANOTHER
PERSON.   Provided, however, that  the  commissioner  [of  taxation  and
finance]  shall refund or credit an application fee paid with respect to
the registration of a vending machine or a retail place of  business  in
this  state through which cigarettes, CIGARS or tobacco products were to
be sold if, prior to the beginning of the calendar year with respect  to
which   such  registration  relates,  the  certificate  of  registration
described in paragraph (a)  of  this  subdivision  is  returned  to  the
department  [of  taxation  and finance], or if such certificate has been
destroyed, the retail dealer or vending machine operator  satisfactorily
accounts to the commissioner for the missing certificate, but such vend-
ing  machine  or  retail place of business may not be used to sell ciga-
rettes, CIGARS or tobacco products in this state  during  such  calendar
year,  unless  it  is  re-registered.  The  provisions of section eleven
hundred thirty-nine of this chapter shall apply to the refund or  credit
authorized  by the preceding sentence and for such purposes, such refund
or credit shall be deemed a refund of tax paid in error provided, howev-
er, no interest shall be allowed or paid on any such refund.
  S 33. Paragraph (b) of subdivision 3 of section 480-a of the tax  law,
as amended by section 125-a of part C of chapter 58 of the laws of 2009,
is amended to read as follows:
  (b) Any person who owns or, if the owner is not the operator, then any
person  who  operates  one  or more vending machines through which ciga-
rettes, CIGARS or tobacco products  are  sold  in  this  state  and  who
violates  the provisions of this section, after due notice and an oppor-
tunity for a hearing, for a first violation is liable for a  civil  fine
not less than seven hundred fifty dollars but not to exceed two thousand
dollars  and  for  a  second  or subsequent violation within three years
following a prior finding of violation be liable for a  civil  fine  not
less than two thousand dollars but not to exceed six thousand dollars.
  S 34. Clause (B) of subparagraph (i) of paragraph (a) of subdivision 1
of  section  481 of the tax law, as amended by chapter 61 of the laws of
1989, is amended to read as follows:
  (B) If a tax on cigarettes, CIGARS or on tobacco products  under  this
article  is not paid when due by any other person, the person liable for
the payment of such tax shall be subject  to  a  penalty  of  fifty  per
centum  of  the  amount  of such tax determined to be due as provided in
this article plus one per centum of such amount for each month or  frac-
tion  thereof during which such failure to pay continues after the expi-
ration of the first month after such tax became due.
  S 35. Subparagraph (i) of paragraph (b) of subdivision  1  of  section
481  of  the  tax law, as amended by chapter 604 of the laws of 2008, is
amended to read as follows:

S. 6259                            22                            A. 9059

  (i) In addition to any other penalty  imposed  by  this  article,  the
commissioner may (A) impose a penalty of not more than one hundred fifty
dollars  for each two hundred cigarettes, or fraction thereof, in excess
of one thousand cigarettes in unstamped or unlawfully  stamped  packages
in  the  possession  or  under the control of any person or (B) impose a
penalty of not more than two hundred  dollars  for  each  ten  unaffixed
false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more than seventy-five dollars for each fifty cigars  or  one  pound  of
tobacco, or fraction thereof, in excess of [two hundred] fifty cigars or
five  pounds  of  tobacco  in the possession or under the control of any
person and a penalty of not more than one hundred fifty dollars for each
fifty cigars or pound of tobacco, or fraction thereof, in excess of five
hundred cigars or ten pounds of tobacco in the possession or  under  the
control  of  any  person,  with  respect  to  which the CIGAR OR tobacco
products tax has not been paid or assumed by a distributor or  CIGAR  OR
tobacco  products  dealer;  provided,  however,  that  any  such penalty
imposed shall not exceed seven thousand  five  hundred  dollars  in  the
aggregate. The commissioner may impose a penalty of not more than seven-
ty-five  dollars for each fifty cigars or one pound of tobacco, or frac-
tion thereof, in excess of fifty cigars or one pound of tobacco  in  the
possession  or under the control of any CIGAR OR tobacco products dealer
or distributor appointed by the commissioner, and a penalty of not  more
than  one hundred fifty dollars for each fifty cigars or pound of tobac-
co, or fraction thereof, in excess of [two hundred] fifty cigars or five
pounds of tobacco in the possession or under the  control  of  any  such
dealer  or  distributor,  with  respect  to  which  the CIGAR OR tobacco
products tax has not been paid or assumed by a distributor or a CIGAR OR
tobacco products  dealer;  provided,  however,  that  any  such  penalty
imposed shall not exceed fifteen thousand dollars in the aggregate.
  S  36.  Clauses  (B)  and (C) of subparagraph (ii) of paragraph (b) of
subdivision 1 of section 481 of the tax law, as added by chapter 262  of
the laws of 2000, are amended to read as follows:
  (B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof,  in  excess of [two hundred] fifty cigars or five pounds of tobacco
knowingly in the possession  or  knowingly  under  the  control  of  any
person,  with respect to which the CIGAR OR tobacco products tax has not
been paid or assumed by a distributor or CIGAR OR tobacco products deal-
er; and
  (II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars or pound  of  tobacco,  or  fraction  thereof,  in
excess  of  [five] ONE hundred cigars or ten pounds of tobacco knowingly
in the possession or knowingly under the control  of  any  person,  with
respect  to which the CIGAR OR tobacco products tax has not been paid or
assumed by a distributor or CIGAR OR tobacco products dealer;  provided,
however,  that  any  such  penalty  imposed  under this clause shall not
exceed ten thousand dollars in the aggregate.
  (C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof, in excess of fifty cigars or one pound of tobacco knowingly in  the
possession or knowingly under the control of any person, with respect to
which  the CIGAR OR tobacco products tax has not been paid or assumed by
a distributor or CIGAR OR tobacco products dealer; and

S. 6259                            23                            A. 9059

  (II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars or pound  of  tobacco,  or  fraction  thereof,  in
excess  of  [two  hundred  fifty]  ONE  HUNDRED cigars or five pounds of
tobacco knowingly in the possession or knowingly under  the  control  of
any  person, with respect to which the CIGAR OR tobacco products tax has
not been paid or assumed by a distributor or a CIGAR OR tobacco products
dealer; provided, however, that any  such  penalty  imposed  under  this
clause shall not exceed twenty thousand dollars in the aggregate.
  S 37. Subdivision 2 of section 481 of the tax law, as amended by chap-
ter  61  of the laws of 1989 and paragraph (a) as amended by chapter 552
of the laws of 2008, is amended to read as follows:
  2. (a) The possession within this state  of  more  than  four  hundred
cigarettes  in  unstamped  or  unlawfully stamped packages, or more than
[two hundred] fifty cigars, or more than five pounds  of  tobacco  other
than roll-your-own tobacco, or more than thirty-six ounces of roll-your-
own  tobacco  by  any  person other than an agent or distributor, as the
case may be, at any one time shall be  presumptive  evidence  that  such
cigarettes, CIGARS or tobacco products are subject to tax as provided by
this article.
  (b) Nothing in this section shall apply to common or contract carriers
or  warehousemen  while  engaged  in  lawfully  transporting  or storing
CIGARS, tobacco products or unstamped packages of cigarettes as merchan-
dise, nor to any employee of such carrier or warehouseman acting  within
the  scope of his OR HER employment, nor to public officers or employees
in the performance of their  official  duties  requiring  possession  or
control  of  CIGARS, tobacco products or unstamped or unlawfully stamped
packages of  cigarettes,  nor  to  temporary  incidental  possession  by
employees  or  agents of persons lawfully entitled to possession, nor to
persons whose possession is for the purpose of aiding police officers in
performing their duties.
  S 38. The tax law is amended by adding new section 481-a  to  read  as
follows:
  S  481-A.  PENALTIES  AND INTEREST FOR RETAIL DEALERS. (A) (1) (I) ANY
PERSON FAILING TO FILE A RETURN OR TO PAY OR PAY OVER  ANY  TAX  TO  THE
COMMISSIONER  WITHIN  THE  TIME  REQUIRED BY OR PURSUANT TO THIS ARTICLE
(DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR FILING  OR  PAYING)
SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF TAX DUE IF
SUCH  FAILURE  IS  FOR  NOT  MORE THAN ONE MONTH, WITH AN ADDITIONAL ONE
PERCENT FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH  SUCH
FAILURE  CONTINUES,  NOT  EXCEEDING  THIRTY  PERCENT  IN  THE AGGREGATE.
PROVIDED, HOWEVER, IN THE CASE OF A FAILURE TO FILE SUCH  RETURN  WITHIN
SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF SUCH RETURN BY OR PURSU-
ANT TO THIS ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR
FILING), THE PENALTY IMPOSED BY THIS SUBPARAGRAPH SHALL NOT BE LESS THAN
THE  LESSER  OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE AMOUNT
REQUIRED TO BE SHOWN AS TAX ON SUCH  RETURN.  FOR  THE  PURPOSE  OF  THE
PRECEDING SENTENCE, THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN
SHALL  BE  REDUCED BY THE AMOUNT OF ANY PART OF THE TAX WHICH IS PAID ON
OR BEFORE THE DATE PRESCRIBED FOR PAYMENT OF THE TAX AND BY  THE  AMOUNT
OF  ANY  CREDIT AGAINST THE TAX WHICH MAY BE CLAIMED UPON THE RETURN. IN
THE CASE OF A FAILURE TO FILE A RETURN BY A PERSON REQUIRED TO  REGISTER
WITH  THE  COMMISSIONER  AS PROVIDED IN SECTION FOUR HUNDRED EIGHTY-A OF
THIS ARTICLE, IN NO EVENT SHALL THE PENALTY FOR FAILURE TO FILE A RETURN
BE LESS THAN ONE HUNDRED FIFTY DOLLARS.
  (II) IF ANY AMOUNT OF TAX IS NOT PAID  ON  OR  BEFORE  THE  LAST  DATE
PRESCRIBED  IN  THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT AT THE

S. 6259                            24                            A. 9059

RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM OR AT  THE  UNDERPAYMENT
RATE  SET  BY  THE  COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF
SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, WHICHEVER  IS  GREATER,
SHALL  BE  PAID  FOR  THE  PERIOD  FROM SUCH LAST DATE TO THE DATE PAID,
WHETHER OR NOT ANY EXTENSION OF TIME FOR PAYMENT WAS  GRANTED.  INTEREST
UNDER  THIS SUBPARAGRAPH SHALL NOT BE PAID IF THE AMOUNT THEREOF IS LESS
THAN ONE DOLLAR.
  (III) IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE  OR  DELAY  WAS
DUE  TO  REASONABLE  CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY
REMIT ALL OF SUCH PENALTY AND THAT PORTION OF SUCH INTEREST THAT EXCEEDS
THE INTEREST THAT WOULD BE PAYABLE IF SUCH INTEREST WERE COMPUTED AT THE
UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION  TWEN-
TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER. THE COMMIS-
SIONER  MAY  PROMULGATE  RULES  AND  REGULATIONS  AS TO WHAT CONSTITUTES
REASONABLE CAUSE.
  (IV) ANY PERSON REQUIRED BY THIS ARTICLE TO FILE A RETURN,  WHO  OMITS
FROM  THE  TOTAL  AMOUNT  OF  CIGAR EXCISE TAX REQUIRED TO BE SHOWN ON A
RETURN AN AMOUNT WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT
OF SUCH TAXES REQUIRED TO BE SHOWN ON THE RETURN SHALL BE SUBJECT  TO  A
PENALTY  EQUAL  TO  TEN  PERCENT  OF THE AMOUNT OF SUCH OMISSION. IF THE
COMMISSIONER DETERMINES THAT SUCH OMISSION WAS DUE TO  REASONABLE  CAUSE
AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT ALL OF SUCH PENALTY.
  (V)  ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS CIGARS AT RETAIL AND
WHO SHALL WILLFULLY AND KNOWINGLY  HAVE  IN  SUCH  PERSON'S  CUSTODY  OR
POSSESSION  OR  UNDER  SUCH PERSON'S CONTROL ANY CIGARS ON WHICH (A) THE
PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS  ARTI-
CLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS SUCH UNDER
THIS  ARTICLE,  OR  (B)  THE  PREPAID  TAX  IMPOSED BY SUCH SECTION FOUR
HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS REQUIRED TO HAVE  BEEN  PASSED
THROUGH  TO  SUCH  PERSON  AND HAS NOT BEEN INCLUDED IN THE COST OF SUCH
CIGARS TO SUCH PERSON, SHALL BE LIABLE FOR A PENALTY IN  THE  AMOUNT  OF
TWICE  THE  TAX NOT SO ASSUMED OR PAID, OR INCLUDED.  SUCH PENALTY SHALL
BE DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS  TAXES
IMPOSED  BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE RELATING
THERETO SHALL BE DEEMED ALSO TO REFER TO THE  PENALTY  IMPOSED  BY  THIS
SUBPARAGRAPH.  SUCH  PENALTY  MAY BE DETERMINED AT ANY TIME WITHIN THREE
YEARS AFTER SUCH CIGARS SHALL HAVE COME INTO SUCH  PERSON'S  CUSTODY  OR
POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
GRAPH,  SUCH  PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH PERSON'S
CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGAR ON  WHICH
(A)  SUCH  TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS
SUCH UNDER THIS ARTICLE, OR (B) SUCH  TAX  WAS  REQUIRED  TO  HAVE  BEEN
PASSED  THROUGH  TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE COST OF
SUCH CIGARS TO SUCH PERSON, WHERE  SUCH  PERSON  HAS  KNOWLEDGE  OF  THE
REQUIREMENT THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED AND WHERE,
TO  SUCH PERSON'S KNOWLEDGE, SUCH TAXES HAVE NOT BEEN SO PAID OR ASSUMED
OR SO INCLUDED. FOR PURPOSES OF THIS SUBPARAGRAPH, IT SHALL BE  PRESUMP-
TIVE  EVIDENCE  THAT  SUCH  PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN
SUCH PERSON'S CUSTODY OR  POSSESSION  OR  UNDER  SUCH  PERSON'S  CONTROL
CIGARS ON WHICH (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBU-
TOR  AUTHORIZED  AS SUCH UNDER THIS ARTICLE OR (B) SUCH TAX WAS REQUIRED
TO HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED  IN
THE  COST  OF  SUCH  CIGARS  TO  SUCH  PERSON  WHERE SUCH PERSON HAS NOT
RECEIVED  THE   CERTIFICATION   REQUIRED   BY   SECTION   FOUR   HUNDRED
SEVENTY-ONE-K OF THIS ARTICLE AT THE TIME OF DELIVERY OF SUCH CIGARS OR,
IN  THOSE CIRCUMSTANCES WHERE THE COMMISSIONER HAS AUTHORIZED THE DELIV-

S. 6259                            25                            A. 9059

ERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE CIGARS, AT THE
TIME PRESCRIBED BY THE COMMISSIONER.
  (2)  IF  THE  FAILURE  TO  PAY OR PAY OVER ANY TAX TO THE COMMISSIONER
WITHIN THE TIME REQUIRED BY THIS ARTICLE IS DUE TO FRAUD, IN LIEU OF THE
PENALTIES AND INTEREST PROVIDED FOR IN SUBPARAGRAPHS  (I)  AND  (II)  OF
PARAGRAPH ONE OF THIS SUBDIVISION, THERE SHALL BE ADDED TO THE TAX (I) A
PENALTY  OF  TWO  TIMES THE AMOUNT OF THE TAX DUE, PLUS (II) INTEREST ON
SUCH UNPAID TAX AT THE RATE OF FOURTEEN AND ONE-HALF PERCENT  PER  ANNUM
OR THE UNDERPAYMENT RATE OF INTEREST SET BY THE COMMISSIONER PURSUANT TO
SUBDIVISION  TWENTY-SIXTH  OF  SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS
CHAPTER, WHICHEVER IS GREATER, FOR THE PERIOD BEGINNING ON THE LAST  DAY
PRESCRIBED BY THIS ARTICLE FOR THE PAYMENT OF SUCH TAX (DETERMINED WITH-
OUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON THE DAY ON
WHICH SUCH TAX IS PAID.
  (3)  (I)  ANY  PERSON REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
UNDER SECTION  FOUR  HUNDRED  EIGHTY-A  OF  THIS  ARTICLE  WHO,  WITHOUT
POSSESSING A VALID CERTIFICATE OF REGISTRATION, SELLS CIGARETTES, CIGARS
AND  TOBACCO PRODUCTS SHALL, IN ADDITION TO ANY OTHER PENALTY IMPOSED BY
THIS CHAPTER, BE SUBJECT TO A PENALTY IN AN AMOUNT  NOT  EXCEEDING  FIVE
HUNDRED  DOLLARS  FOR THE FIRST DAY ON WHICH SUCH SALES OR PURCHASES ARE
MADE, PLUS AN AMOUNT NOT EXCEEDING TWO HUNDRED DOLLARS FOR  EACH  SUBSE-
QUENT  DAY  ON WHICH SUCH SALES OR PURCHASES ARE MADE, NOT TO EXCEED TEN
THOUSAND DOLLARS IN THE AGGREGATE.
  (II) IF THE COMMISSIONER DETERMINES THAT ANY FAILURE OR ACT  DESCRIBED
IN  THIS  PARAGRAPH  WAS  DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL
NEGLECT, HE OR SHE MAY REMIT ALL OR PART OF SUCH PENALTY.
  (4) ANY PERSON REQUIRED BY THIS ARTICLE TO DISPLAY  A  CERTIFICATE  OF
REGISTRATION,  WHO  FAILS  TO  DISPLAY  SUCH  CERTIFICATE  IN THE MANNER
REQUIRED BY THIS ARTICLE OR  ANY  RULE  OR  REGULATION  ADOPTED  BY  THE
COMMISSIONER  IN  CONNECTION WITH SUCH REQUIREMENT SHALL, IN ADDITION TO
ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, BE SUBJECT TO  A  PENALTY  OF
FIFTY  DOLLARS. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE WAS DUE
TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY  REMIT
ALL OR PART OF SUCH PENALTY.
  (5)  THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SUBDIVISION SHALL
BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES  FROM  THIS
ARTICLE.  SUCH  PENALTIES  AND  INTEREST  MAY  BE  DETERMINED, ASSESSED,
COLLECTED AND ENFORCED IN THE SAME MANNER AS THE  TAX  IMPOSED  BY  THIS
ARTICLE.  INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
  (B)  CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
OF THIS CHAPTER.
  (C) ANY PERSON FAILING TO FILE A RETURN OR TO PAY ANY TAX REQUIRED  TO
BE  PREPAID  TO  THE COMMISSIONER WITH RESPECT TO CIGARS PURSUANT TO THE
PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE  WITHIN
THE TIME REQUIRED BY THIS ARTICLE SHALL, IN ADDITION TO ANY OTHER PENAL-
TY PROVIDED IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A
PENALTY EQUAL TO THE AMOUNT OF TAX REQUIRED TO BE SO PREPAID PURSUANT TO
THE  PROVISIONS OF SUCH SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
CLE.  IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE TO FILE A  RETURN
OR  TO PAY ANY SUCH TAX WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILL-
FUL NEGLECT, HE OR SHE MAY REMIT ALL OR ANY PART OF SUCH PENALTY.
  (D) THE CERTIFICATE OF THE COMMISSIONER TO THE EFFECT THAT A  TAX  HAS
NOT  BEEN  PAID, THAT A RETURN, BOND OR REGISTRATION CERTIFICATE HAS NOT
BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED  PURSUANT  TO  THE
PROVISIONS OF THIS ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THEREOF.

S. 6259                            26                            A. 9059

  (E) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO  FAILS  TO  MAKE  OR  MAINTAIN OR MAKE AVAILABLE TO THE COMMISSIONER
THESE RECORDS IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS
FOR THE FIRST PERIOD OR PART THEREOF FOR WHICH THE  FAILURE  OCCURS  AND
NOT  TO  EXCEED FIVE THOUSAND DOLLARS FOR EACH ADDITIONAL PERIOD OR PART
THEREOF FOR WHICH THE FAILURE OCCURS. THIS PENALTY IS IN ADDITION TO ANY
OTHER PENALTY PROVIDED FOR IN THIS ARTICLE BUT MAY NOT  BE  IMPOSED  AND
COLLECTED MORE THAN ONCE FOR FAILURES FOR THE SAME PERIOD OR PART THERE-
OF. IF THE COMMISSIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR
MAKE  AVAILABLE  RECORDS  IN  ANY  PERIOD WAS ENTIRELY DUE TO REASONABLE
CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENAL-
TY IMPOSED FOR THAT PERIOD. THESE PENALTIES WILL BE PAID AND DISPOSED OF
IN THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE  PENALTIES
WILL  BE  DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME
MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND  ALL  THE  PROVISIONS  OF
THIS  ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENAL-
TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
THIS SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE  OR
MAINTAIN  THE  REQUIRED  RECORDS  WHEN THE RECORDS MADE OR MAINTAINED BY
THAT PERSON FOR A PERIOD MAKE IT VIRTUALLY IMPOSSIBLE  TO  VERIFY  SALES
RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
  (F)  FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT  WILL  BE  SUBJECT  TO  A
PENALTY  OF  ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE  IN  ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW.
  (G)  AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS, REPORTS,
STATEMENTS OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT  TAX
BE  EVADED,  FOR  A  FEE  OR OTHER COMPENSATION OR AS AN INCIDENT TO THE
PERFORMANCE OF OTHER SERVICES FOR WHICH  THAT  PERSON  RECEIVES  COMPEN-
SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
RATION  OR  PRESENTATION  UNDER  THIS ARTICLE, OR IN CONNECTION WITH ANY
MATTER ARISING UNDER THIS ARTICLE, OF ANY RETURN,  REPORT,  DECLARATION,
STATEMENT  OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY MATE-
RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
AUTHORIZED OR REQUIRED TO  PRESENT  THAT  RETURN,  REPORT,  DECLARATION,
STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
SAND DOLLARS.
  (H) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
ANY  PORTION  OR  ALL  OF  THE RECORDS HE OR SHE IS REQUIRED TO MAKE AND
MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH PERIOD OR PART
THEREOF FOR WHICH THESE ELECTRONIC RECORDS ARE NOT  PRESENTED  AND  MADE
AVAILABLE  AND ACCESSIBLE UPON REQUEST, NOTWITHSTANDING THAT THE RECORDS
MAY ALSO BE MAINTAINED AND AVAILABLE IN HARD COPY FORMAT.  THIS  PENALTY
IS  IN  ADDITION  TO ANY OTHER PENALTY PROVIDED FOR IN THIS ARTICLE, BUT
MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR A  FAILURE  FOR  THE
SAME  PERIOD OR PART THEREOF.  PROVIDED, HOWEVER, NOTHING IN THIS SUBDI-
VISION WILL PREVENT THE  SEPARATE  IMPOSITION,  IF  APPLICABLE,  OF  ANY
PENALTY  IMPOSED BY THIS SECTION FOR THE SAME PERIOD OR PART THEREOF. IF
THE COMMISSIONER DETERMINES THAT THE FAILURE TO PRESENT AND  MAKE  ELEC-
TRONICALLY  MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A PERIOD WAS
ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT PERIOD.  THESE  PENALTIES

S. 6259                            27                            A. 9059

WILL  BE  PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
THIS ARTICLE. THESE PENALTIES WILL BE DETERMINED,  ASSESSED,  COLLECTED,
PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
AND  ALL  THE  PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE DEEMED
ALSO TO APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION.  FOR  PURPOSES
OF  THE  PENALTY  IMPOSED  BY THIS SUBDIVISION, A FAILURE TO PRESENT AND
MAKE AVAILABLE AND ACCESSIBLE A RECORD MAINTAINED IN  ELECTRONIC  FORMAT
INCLUDES  NOT  ONLY  THE  DENIAL OF ACCESS TO THE REQUESTED RECORDS THAT
WERE MAINTAINED ELECTRONICALLY, BUT ALSO THE FAILURE TO  MAKE  AVAILABLE
TO  THE  COMMISSIONER  THE INFORMATION, KNOWLEDGE, OR MEANS NECESSARY TO
ACCESS AND OTHERWISE USE THE ELECTRONICALLY MAINTAINED  RECORDS  IN  THE
INSPECTION AND EXAMINATION OF THESE RECORDS.
  S  39.  Subdivision  (h) of section 1111 of the tax law, as amended by
section 1 of part Q-3 of chapter 62 of the laws of 2003, is  amended  to
read as follows:
  (h)  Receipts  subject  to tax under subdivision (a) of section eleven
hundred five on retail sales of cigarettes, CIGARS and tobacco  products
and consideration given or contracted to be given for cigarettes, CIGARS
and  tobacco products the uses of which are subject to tax under section
eleven hundred ten shall be deemed to include any tax imposed  on  ciga-
rettes,  CIGARS  and  tobacco products by article twenty of this chapter
and any tax imposed on cigarettes AND  CIGARS  by  chapter  thirteen  of
title eleven of the administrative code of the city of New York.
  S  40.  Subdivision  (e) of section 1814 of the tax law, as amended by
section 28 of subpart I of part V-1 of chapter 57 of the laws  of  2009,
is amended to read as follows:
  (e) Nothing in this section shall apply to common or contract carriers
or  warehousemen  while  engaged  in  lawfully  transporting  or storing
unstamped packages of cigarettes as merchandise, or lawfully  transport-
ing  or  storing CIGARS OR tobacco products, nor to any employee of such
carrier or warehouseman acting within the scope of his  OR  HER  employ-
ment,  nor  to  public officers or employees in the performance of their
official duties requiring possession or control of unstamped  or  unlaw-
fully  stamped packages of cigarettes or possession or control of CIGARS
OR tobacco products, nor to temporary incidental possession by employees
or agents of persons lawfully entitled to  possession,  nor  to  persons
whose  possession  is  for  the  purpose  of  aiding  police officers in
performing their duties.
  S 41. Paragraphs 3 and 4 of subdivision (h) of section 1814 of the tax
law, as amended by section 28 of subpart I of part V-1 of chapter 57  of
the laws of 2009, are amended to read as follows:
  (3) Any person, other than a distributor appointed by the commissioner
under  article  twenty of this chapter, who shall knowingly transport or
have in his OR HER custody, possession or under his OR HER control twen-
ty-five hundred or more cigars or fifty or more pounds of  tobacco  upon
which  the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed  by  the  commissioner  under
article twenty of this chapter, or other person treated as a distributor
pursuant  to section four hundred seventy-one-d of this chapter shall be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E felo-
ny for any subsequent violation  of  this  section,  regardless  of  the
amount of CIGARS OR tobacco products involved in such violation.
  (4)  For  purposes  of  this  subdivision, such person shall knowingly
transport or have in his OR HER custody, possession or under his OR  HER
control  tobacco  PRODUCTS  or  cigars on which such taxes have not been

S. 6259                            28                            A. 9059

assumed or paid by a distributor appointed  by  the  commissioner  where
such  person  has  knowledge of the requirement of the tax on CIGARS AND
tobacco products and, where to his OR HER knowledge, such taxes have not
been assumed or paid on such CIGARS OR tobacco products by a distributor
appointed by the commissioner [of taxation and finance].
  S  42.  Section  1814-a  of the tax law, as added by chapter 61 of the
laws of 1989, is amended to read as follows:
  S 1814-a. Person not appointed as a [tobacco products] distributor  OF
CIGARS OR TOBACCO PRODUCTS. (a) Any person who, while not appointed as a
distributor  of CIGARS OR tobacco products pursuant to the provisions of
article twenty of this chapter, imports or causes to  be  imported  into
the  state more than fifty cigars or more than one pound of tobacco, for
sale within the state, or produces, manufactures or compounds CIGARS  OR
tobacco  products  within  the  state  shall  be guilty of a misdemeanor
punishable by a fine of not more than five thousand dollars or by a term
of imprisonment not to exceed thirty days. If,  within  any  ninety  day
period,  one  thousand  or more cigars or five hundred pounds or more of
tobacco are imported or caused to be imported into the  state  for  sale
within  the state or are produced, manufactured or compounded within the
state by any person while not appointed as a distributor  of  CIGARS  OR
tobacco products, such person shall be guilty of a misdemeanor. Provided
further, that any person who has twice been convicted under this section
shall be guilty of a class E felony for any subsequent violation of this
section, regardless of the amount of CIGARS OR tobacco products involved
in such violation.
  (b)  For  purposes  of  this section, the possession or transportation
within this state by any person, other than a CIGAR OR tobacco  products
distributor  appointed by the commissioner [of taxation and finance], at
any one time of seven hundred fifty or more cigars or fifteen pounds  or
more of tobacco shall be presumptive evidence that such tobacco products
are  possessed or transported for the purpose of sale and are subject to
the tax imposed by section  four  hundred  seventy-one-b,  SECTION  FOUR
HUNDRED  SEVENTY-ONE-F  OR  SECTION  FOUR  HUNDRED SEVENTY-ONE-H of this
chapter.  With  respect  to  such  possession  or  transportation,   any
provisions of article twenty of this chapter providing for a time period
during  which  the  tax  imposed  by  such article may be paid shall not
apply.
  S 43. The section heading, subdivisions (a), (b) and  (c)  of  section
1846-a  of  the  tax law, as amended by chapter 556 of the laws of 2011,
are amended to read as follows:
  Forfeiture action with respect to CIGARS  AND  tobacco  products.  (a)
Whenever  a  police  officer  designated in section 1.20 of the criminal
procedure law or a peace  officer  designated  in  subdivision  four  of
section  2.10 of such law, acting pursuant to his OR HER special duties,
shall discover any tobacco products in excess of five hundred cigars  or
ten  pounds  of  tobacco  which are being imported for sale in the state
where the person importing or causing such CIGARS AND  tobacco  products
to  be  imported  has  not  been  appointed as a distributor pursuant to
section four hundred seventy-two of this chapter, such police officer or
peace officer is hereby authorized and empowered forthwith to seize  and
take  possession  of  such  CIGARS AND tobacco products. Such CIGARS AND
tobacco products seized by a police officer or peace  officer  shall  be
turned over to the commissioner. Such seized CIGARS AND tobacco products
shall  be  forfeited  to  the  state.  All  CIGARS  AND tobacco products
forfeited to the state shall be destroyed or used  for  law  enforcement
purposes,  except  that  CIGARS OR tobacco products that violate, or are

S. 6259                            29                            A. 9059

suspected of violating, federal trademark laws or import laws shall  not
be used for law enforcement purposes. If the commissioner determines the
CIGARS OR tobacco products may not be used for law enforcement purposes,
the  commissioner must, within a reasonable time thereafter, upon publi-
cation in the state registry of a notice to such effect before  the  day
of  destruction,  destroy such forfeited CIGARS OR tobacco products. The
commissioner  may,  prior  to  any  destruction  of  CIGARS  OR  tobacco
products,  permit  the true holder of the trademark rights in the CIGARS
OR tobacco products to inspect  such  forfeited  products  in  order  to
assist in any investigation regarding such CIGARS OR tobacco products.
  (b) In the alternative, the commissioner, on reasonable notice by mail
or  otherwise,  may  permit  the person from whom said CIGARS OR tobacco
products were seized to redeem the said CIGARS OR  tobacco  products  by
the  payment of the tax due, plus a penalty of fifty per centum thereof,
plus interest on the amount of tax due for each month or fraction there-
of after such tax became due (determined without regard to any extension
of time for filing or paying) at the rate applicable under  subparagraph
(ii)  of paragraph (a) of subdivision one of section four hundred eight-
y-one of this chapter and the costs incurred in such  proceeding,  which
total  payment  shall  not be less than five dollars; provided, however,
that such seizure and sale or redemption shall not be deemed to  relieve
any  person  from  fine or imprisonment provided for in this article for
violation of any provision of article twenty of this chapter.
  (c) In the alternative, the commissioner may dispose of any CIGARS  OR
tobacco  products  seized  pursuant  to  this section, except those that
violate, or are suspected of  violating,  federal  trademark  or  import
laws, by transferring them to the department of corrections and communi-
ty supervision for sale to or use by inmates in such institutions.
  S  44.  The section heading of section 1847 of the tax law, as amended
by chapter 61 of the laws of 1989, is amended to read as follows:
  Seizure and forfeiture of vehicles or other  means  of  transportation
used to transport or for deposit or concealment of cigarettes or used to
import CIGARS OR tobacco products.
  S  45.  Subdivision  (b)  of  section 1847 of the tax law, as added by
chapter 61 of the laws of 1989, is amended to read as follows:
  (b) Any peace officer designated in subdivision four of  section  2.10
of  the  criminal  procedure  law, acting pursuant to his OR HER special
duties, or any police officer designated in section 1.20 of the criminal
procedure law may seize any vehicle or  other  means  of  transportation
used  to  import  CIGARS  OR  tobacco products in excess of five hundred
cigars or ten pounds of tobacco for sale where the person  importing  or
causing  such  CIGARS  OR  tobacco  products to be imported has not been
appointed a distributor pursuant to section four hundred seventy-two  of
this chapter, other than a vehicle or other means of transportation used
by  any  person  as  a common carrier in transaction of business as such
common carrier, and such vehicle or other means of transportation  shall
be subject to forfeiture as hereinafter in this section provided.
  S 46. This act shall take effect July 1, 2012; provided, however, that
section eleven of this act shall take effect immediately.

                                 PART D

  Section  1. Section 19 of part W-1 of chapter 109 of the laws of 2006,
amending the tax law relating to  providing  exemptions,  reimbursements
and credits from various taxes for certain alternative fuels, as amended

S. 6259                            30                            A. 9059

by  section 2 of part L of chapter 61 of the laws of 2011, is amended to
read as follows:
  S  19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2012] 2017  and  such
repeal  shall  apply  in  accordance  with  the  applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply  to
sales  made,  fuel  compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven  through  eleven  of
this  act,  in  accordance  with  applicable  transitional provisions of
sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
commissioner  of  taxation  and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend  any  rules
or  regulations  and  to  take  any  steps  necessary  to  implement the
provisions of this act; provided further that sections fourteen  through
sixteen  of  this  act  shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART E

  Section 1. Subdivision 14 of section 282 of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  14.  "Diesel  motor  fuel"  shall mean No. 1 Diesel fuel, No. 2 Diesel
fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
late and also motor fuel suitable for use in the operation of an  engine
of  the diesel type, excluding, however, any product specifically desig-
nated "No. 4 Diesel fuel" and not suitable as a fuel used in the  opera-
tion of a motor vehicle engine.
  S  2.  Paragraph (b) of subdivision 3 of section 282-a of the tax law,
as amended by section 5 of part K of chapter 61 of the laws of 2011,  is
amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of  this  section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed  other  than
on  the  public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel  motor
fuel which involves a delivery at a filling station or into a repository
which  is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for  delivery
at  a  farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale  to  the
consumer consisting of not more than twenty gallons of water-white kero-
sene  to be used and consumed exclusively for heating purposes; or (iii)
the sale to or delivery at a filling station or other retail  vendor  of
water-white  kerosene  provided  such  filling  station  or other retail
vendor only sells such  water-white  kerosene  exclusively  for  heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet  fuel  to an airline for use in its airplanes or a use of kero-
jet fuel by an airline in its airplanes; or (v) a sale of kero-jet  fuel
by  a registered distributor of Diesel motor fuel to a fixed base opera-
tor registered under this article as a distributor of kero-jet fuel only
where such fixed base operator is engaged solely in making  or  offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel

S. 6259                            31                            A. 9059

tank  of  an  airplane  for the purpose of operating such airplane; [or]
(vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
registered under this article as a distributor  of  kero-jet  fuel  only
where  such fuel is delivered directly into the fuel tank of an airplane
for use in the operation of such airplane; OR (VII) THE SALE  OF  PREVI-
OUSLY  UNTAXED  QUALIFIED  BIODIESEL  TO  A PERSON REGISTERED UNDER THIS
ARTICLE AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN  (A)  A  RETAIL
SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
ERY  AT  A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED WITH A
HOSE OR OTHER  APPARATUS  BY  WHICH  SUCH  QUALIFIED  BIODIESEL  CAN  BE
DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
  S  3.  Paragraph 5 of subdivision (a) of section 301-b of the tax law,
as added by chapter 190 of the laws of  1990,  is  amended  to  read  as
follows:
  (5)  [Crude  oil  and  liquefied]  LIQUIFIED  petroleum gases, such as
butane, ethane or propane.
  S 4. Subdivision (e) of section 301-b of the tax law,  as  amended  by
section  21  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (e) Sales of QUALIFIED BIODIESEL, non-highway diesel  motor  fuel  and
residual  petroleum  product  to registered distributors of diesel motor
fuel and registered residual petroleum product businesses.
  (1) [Non-highway] QUALIFIED BIODIESEL  AND  NON-HIGHWAY  Diesel  motor
fuel  sold by a person registered under article twelve-A of this chapter
as a distributor of diesel motor fuel to a person registered under  such
article  twelve-A  as a distributor of diesel motor fuel where such sale
is not a retail sale or a sale that involves a  delivery  at  a  filling
station  or into a repository equipped with a hose or other apparatus by
which such QUALIFIED BIODIESEL OR non-highway Diesel motor fuel  can  be
dispensed into the fuel tank of a motor vehicle.
  (2)  Residual petroleum product sold by a person registered under this
article as a residual petroleum product business to a person  registered
under  this  article as a residual petroleum product business where such
sale is not a retail sale. Provided, however, that the commissioner  may
require  such documentary proof to qualify for any exemption provided in
this section as the commissioner deems appropriate, including the expan-
sion of any certifications required  pursuant  to  section  two  hundred
eighty-five-a  or two hundred eighty-five-b of this chapter to cover the
taxes imposed by this article.
  (3) "QUALIFIED BIODIESEL" MEANS SUCH TERM AS  DEFINED  IN  SUBDIVISION
TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended  by  section  39 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
on  account  of  the  taxes  imposed by this article and pursuant to the
authority of article twenty-nine of this chapter, a tax upon the sale or
use of diesel motor fuel in this state. The tax shall be computed  based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously

S. 6259                            32                            A. 9059

untaxed  non-highway  Diesel  motor  fuel  to  a  person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped  with  a  hose  or  other  apparatus  by which such fuel can be
dispensed into the fuel tank of a motor vehicle, [or] (ii) the  sale  to
or  delivery  at a filling station or other retail vendor of water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of no more than twenty gallons or to the sale of  CNG  or  hydrogen;  OR
(III)  THE  SALE  OF  PREVIOUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON
REGISTERED UNDER ARTICLE TWELVE-A OF THIS CHAPTER AS  A  DISTRIBUTOR  OF
DIESEL  MOTOR  FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR (B) A
SALE TO SUCH PERSON WHICH INVOLVES A DELIVERY AT A  FILLING  STATION  OR
INTO  A  REPOSITORY  WHICH IS EQUIPPED WITH A HOSE OR OTHER APPARATUS BY
WHICH SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF  A
MOTOR  VEHICLE.  "QUALIFIED  BIODIESEL"  MEANS  SUCH  TERM AS DEFINED IN
SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
TER.
  S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended by section 39-a of part K of chapter 61 of the laws of 2011,  is
amended to read as follows:
  (2)  Every distributor of diesel motor fuel shall pay, as a prepayment
on account of the taxes imposed by this  article  and  pursuant  to  the
authority of article twenty-nine of this chapter, a tax upon the sale or
use  of diesel motor fuel in this state. The tax shall be computed based
upon the number of gallons of diesel motor fuel sold or used.  Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the delivery  of  diesel  motor  fuel  to  a  retail  service
station.  The collection of such tax shall not be made applicable to the
sale or use of diesel motor fuel under circumstances which preclude  the
collection  of  such tax by reason of the United States constitution and
of laws of the United States enacted pursuant thereto. The  prepaid  tax
on  diesel  motor  fuel  shall  not apply to (i) the sale of [previously
untaxed] non-highway Diesel motor fuel  to  a  person  registered  as  a
distributor  of Diesel motor fuel other than a sale to such person which
involves a delivery at a filling station or into a repository  which  is
equipped  with  a  hose  or  other  apparatus  by which such fuel can be
dispensed into the fuel tank of a motor vehicle, [or] (ii) the  sale  to
or  delivery  at a filling station or other retail vendor of water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY  UNTAXED
QUALIFIED  BIODIESEL  TO  A  PERSON REGISTERED UNDER ARTICLE TWELVE-A OF
THIS CHAPTER AS A DISTRIBUTOR OF DIESEL MOTOR  FUEL  OTHER  THAN  (A)  A
RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
DELIVERY  AT  A  FILLING  STATION OR INTO A REPOSITORY WHICH IS EQUIPPED
WITH A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN  BE
DISPENSED  INTO  THE FUEL TANK OF A MOTOR VEHICLE. "QUALIFIED BIODIESEL"
MEANS SUCH TERM AS DEFINED IN SUBDIVISION TWENTY-THREE  OF  SECTION  TWO
HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S  7. This act shall take effect June 1, 2012; provided, however, that
the amendments to paragraph 2 of subdivision (a) of section 1102 of  the
tax law made by section five of this act shall be subject to the expira-
tion  and  reversion of such paragraph pursuant to section 19 of part W1
of chapter 109 of the laws of 2006, as amended, when upon such date  the
provisions  of  section  six  of  this  act shall take effect; provided,

S. 6259                            33                            A. 9059

further, that sections five and six of this act  shall  apply  to  sales
made  and  uses occurring on and after such effective date in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

                                 PART F

  Section  1.  Subparagraph  (B)  of  paragraph  4 of subdivision (a) of
section 1134 of the tax law, as amended by chapter  2  of  the  laws  of
1995, is amended to read as follows:
  (B)  Where  a person files a certificate of registration for a certif-
icate of authority under this subdivision and in considering such appli-
cation the commissioner ascertains that (i) any tax imposed  under  this
chapter  or  any related statute, as defined in section eighteen hundred
of this chapter, has been finally determined to be due from such  person
and  has not been paid in full, (ii) [a] ANY tax [due under this article
or any law, ordinance or resolution enacted pursuant to the authority of
article twenty-nine] IMPOSED UNDER THIS CHAPTER OR ANY RELATED  STATUTE,
AS DEFINED IN SECTION EIGHTEEN HUNDRED of this chapter, has been finally
determined  to  be due from an officer, director, partner or employee of
such person, and, where such person is a limited liability company, also
a member or manager of such person, in the officer's, director's,  part-
ner's,  member's,  manager's or employee's capacity as a person required
to collect tax on behalf of such person or another person  and  has  not
been  paid, (iii) such person has been convicted of a crime provided for
in this chapter within one year from the date on which such  certificate
of registration is filed, (iv) an officer, director, partner or employee
of  such  person, and, where such person is a limited liability company,
also a member or manager of such person, which officer, director,  part-
ner,  member, manager or employee is a person required to collect tax on
behalf of such person filing a certificate of registration  has  in  the
officer's,  director's,  partner's,  member's,  manager's  or employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within one year from the date on which such certificate of  registration
is filed, (v) a shareholder owning more than fifty percent of the number
of  shares  of stock of such person (where such person is a corporation)
entitling the holder thereof to vote for the election  of  directors  or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any  tax imposed under this chapter or any related statute as defined in
section eighteen hundred of this chapter was finally  determined  to  be
due  and  where  such tax has not been paid in full, or at the time such
other person was convicted of a crime provided for in this chapter with-
in one year from the date on which such certificate of  registration  is
filed, or (vi) a certificate of authority issued to such person has been
revoked  or  suspended  pursuant  to  subparagraph (A) of this paragraph
within one year from the date on which such certificate of  registration
is filed, the commissioner may refuse to issue a certificate of authori-
ty.
  S 2. Subdivision (g) of section 1146 of the tax law, as added by chap-
ter 577 of the laws of 1997, is amended to read as follows:
  (g)  (1)  Notwithstanding  the  provisions  of subdivision (a) of this
section, if the  commissioner  determines  that  a  person  required  to
collect  tax is liable for any tax, penalty or interest under this arti-
cle or is liable for a penalty under subdivision (e) of  section  eleven

S. 6259                            34                            A. 9059

hundred  forty-five  of  this  article with respect to any failure, upon
request in writing of such person, the commissioner  shall  disclose  in
writing  to  such person [(1)] (I) the name of any other person required
to  collect  tax  or any other person liable for such penalty under such
subdivision (e) whom the commissioner has determined to  be  liable  for
the  same  tax,  penalty or interest or for such penalty with respect to
such failure, and [(2)] (II) whether the commissioner has  attempted  to
collect  such  tax,  penalty or interest or such penalty from such other
person, the general nature of such collection activities, and the amount
collected.
  (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, FOR
THE PURPOSES OF SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS  PART,  IF  THE  COMMISSIONER
DETERMINES  THAT ANY TAX IMPOSED UNDER THIS CHAPTER OR ANY RELATED STAT-
UTE, AS DEFINED IN SECTION EIGHTEEN HUNDRED OF THIS  CHAPTER,  HAS  BEEN
FINALLY  DETERMINED  TO BE DUE FROM A PERSON REQUIRED TO COLLECT TAX AND
HAS NOT BEEN PAID, UPON WRITTEN REQUEST OF  THE  PERSON  WHO  FILED  THE
CERTIFICATE  OF  REGISTRATION  FOR  A  CERTIFICATE OF AUTHORITY THAT WAS
REFUSED, THE COMMISSIONER MAY DISCLOSE  TO  SUCH  PERSON  THE  NAME  AND
AMOUNT OF TAX DUE OF THE PERSON OR PERSONS REQUIRED TO COLLECT TAX WHOSE
TAX  LIABILITY  OR LIABILITIES WERE GROUNDS FOR THE REFUSAL TO ISSUE THE
CERTIFICATE OF AUTHORITY.
  S 3. This act shall take effect immediately.

                                 PART G

  Section 1. Paragraph 10 of subsection (g) of section 658  of  the  tax
law is REPEALED.
  S  2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
istrative code of the city of New York is REPEALED.
  S 3. Paragraph 5 of subsection (u) of section 685 of the  tax  law  is
REPEALED.
  S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York is REPEALED.
  S  5. Section 23 of part U of chapter 61 of the laws of 2011, amending
the real property tax law, the general municipal law, the  public  offi-
cers law, the tax law, the abandoned property law, the state finance law
and  the administrative code of the city of New York, relating to estab-
lishing standards  for  electronic  real  property  tax  administration,
allowing the department of taxation and finance to use electronic commu-
nication  means  to  furnish  tax notices and other documents, mandatory
electronic filing of tax documents, debit cards issued for tax  refunds,
improving  sales  tax compliance and repealing certain provisions of the
tax law and the administrative code of the city  of  New  York  relating
thereto, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a)  the amendments to section 29 of the tax law made by section thir-
teen of this act shall apply to tax documents filed or  required  to  be
filed  on  or  after  the  sixtieth  day after which this act shall have
become a law [and shall expire  and  be  deemed  repealed  December  31,
2012],  provided  however that the amendments to paragraph 4 of subdivi-
sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
of section 29 of the tax law made by section thirteen of this  act  with
regard  to individual taxpayers shall take effect September 15, 2011 but
only if the commissioner of taxation and finance  has  reported  in  the
report  required  by section seventeen-b of this act that the percentage

S. 6259                            35                            A. 9059

of individual taxpayers electronically  filing  their  2010  income  tax
returns is less than eighty-five percent; provided that the commissioner
of  taxation  and  finance  shall  notify  the legislative bill drafting
commission  of the date of the issuance of such report in order that the
commission may maintain an accurate and timely effective  data  base  of
the official text of the laws of the state of New York in furtherance of
effectuating  the  provisions  of  section 44 of the legislative law and
section 70-b of the public officers law;
  (b) sections fourteen, fifteen, sixteen  and  seventeen  of  this  act
shall  take  effect  September  15, 2011 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent;
  (c)  sections  fourteen-a  and fifteen-a of this act shall take effect
September 15, 2011 and expire and be deemed repealed December  31,  2012
but  shall  take effect only if the commissioner of taxation and finance
has reported in the report required by section seventeen-b of  this  act
that  the percentage of individual taxpayers electronically filing their
2010 income tax returns is eighty-five percent or greater; AND
  (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of  this
act  shall  take  effect January 1, 2013 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent[; and
  (e)  sections twenty-one and twenty-one-a of this act shall expire and
be deemed repealed December 31, 2012].
  S 6. Paragraph 2 of subsection (b) of section 29 of  the  tax  law  as
added  by  section  13  of  part U of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) If a tax return preparer prepared  more  than  five  original  tax
documents  during any calendar year beginning on or after January first,
two thousand eleven, and if in any succeeding  calendar  year  that  tax
return  preparer prepares one or more authorized [returns] TAX DOCUMENTS
using tax software, then, for such succeeding calendar year and for each
subsequent  calendar  year  thereafter,  all  authorized  tax  documents
prepared  by  that  tax return preparer must be filed electronically, in
accordance with instructions prescribed by the commissioner.
  S 7. This act shall take effect immediately, provided,  however,  that
the amendments to paragraph 2 of subsection (b) of section 29 of the tax
law made by section six of this act shall be deemed to have been in full
force  and  effect on the same date and in the same manner as section 13
of part U of chapter 61 of the laws of 2011, as amended, took effect.

                                 PART H

  Section 1. Paragraphs 2 and 3 of subsection (g-1) of  section  606  of
the  tax law, paragraph 2 as amended by chapter 378 of the laws of 2005,
subparagraph (B) of paragraph 2 as amended by chapter 251 of the laws of
2006 and paragraph 3 as amended by chapter 128 of the laws of 2007,  are
amended to read as follows:
  (2) Qualified solar energy system equipment expenditures. (A) The term
"qualified  solar  energy  system equipment expenditures" means expendi-
tures for:

S. 6259                            36                            A. 9059

  (I) the purchase of solar energy system equipment which  is  installed
in  connection  with  residential property which is [(i)] (I) located in
this state and [(ii) which is] (II) used by the taxpayer as his  or  her
principal  residence  at  the  time the solar energy system equipment is
placed in service;
  (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
TIAL  PROPERTY WHICH IS: (I) LOCATED IN THIS STATE; AND (II) USED BY THE
TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR  ENERGY
SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
  (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHERE THE POWER PURCHASED IS GENERATED BY  SOLAR  ENERGY
SYSTEM  EQUIPMENT  OWNED  BY  A  PERSON  OTHER  THAN THE TAXPAYER AND IS
INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS: (I)  LOCATED
IN  THIS  STATE;  AND  (II) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL
RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM IS PLACED IN SERVICE.
  (B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original  installation,  architectural  and  engineering  services,  and
designs  and  plans directly related to the construction or installation
of the solar energy system equipment.
  (C) Such qualified expenditures shall not include  interest  or  other
finance charges.
  (D)   SUCH   QUALIFIED  SOLAR  ENERGY  SYSTEM  EQUIPMENT  EXPENDITURES
DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS  PARAGRAPH
SHALL  INCLUDE  AN  AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE
YEAR UNDER SUCH AGREEMENT.
  (E) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBDIVISION, THE  PERCENTAGE
TO BE USED TO CALCULATE THE AMOUNT OF CREDIT ALLOWED FOR QUALIFIED SOLAR
ENERGY SYSTEM EQUIPMENT EXPENDITURES DESCRIBED IN CLAUSES (II) AND (III)
OF  SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE EQUAL TO TWELVE AND ONE-
HALF PERCENT.
  (3) Solar energy system  equipment.  The  term  "solar  energy  system
equipment"  shall  mean  an  arrangement  or  combination  of components
utilizing solar radiation, which, when installed in a residence, produc-
es energy designed to provide heating, cooling, hot water or electricity
for use in such residence. Such  arrangement  or  components  shall  not
include  equipment  connected to solar energy system equipment that is a
component of part or parts of a non-solar energy system  or  which  uses
any  sort  of  recreational  facility  or equipment as a storage medium.
Solar energy system equipment that generates electricity for  use  in  a
residence  must  conform to applicable requirements set forth in section
sixty-six-j of the public service law. Provided,  however,  where  solar
energy  system  equipment  is  purchased  and installed by a condominium
management  association  or  a  cooperative  housing  corporation,   for
purposes   of   this   subsection   only,  the  term  ["ten  kilowatts"]
"TWENTY-FIVE KILOWATTS" in such section sixty-six-j  shall  be  read  as
"fifty kilowatts."
  S  2.  Subdivision  (ee)  of  section 1115 of the tax law, as added by
chapter 306 of the laws of 2005, is amended to read as follows:
  (ee) Receipts from the  retail  sale  of  [residential]  solar  energy
systems equipment and of the service of installing such systems shall be
exempt  from  tax  under this article. For the purposes of this subdivi-
sion, "[residential] solar  energy  systems  equipment"  shall  mean  an
arrangement or combination of components [installed in a residence] that

S. 6259                            37                            A. 9059

utilizes  solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity IN  A  BUILDING  OR  A  STRUCTURE.
Such  arrangement  or components shall not [include] EXCEED AN INSTALLED
CAPACITY  RATING  OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT THEREOF AND
SHALL NOT INCLUDE equipment that is part of a non-solar energy system or
[which uses any sort of recreational facility or equipment as a  storage
medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  section  3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the
definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision, shall omit the [residential] solar energy systems equipment
exemption provided for in subdivision (ee) and the clothing and footwear
exemption provided for in paragraph thirty of subdivision (a) of section
eleven  hundred  fifteen  of  this  chapter, unless such city, county or
school district elects otherwise as to either such  [residential]  solar
energy  systems  equipment  exemption  or  such  clothing  and  footwear
exemption.
  S 4. Paragraph 1 of subdivision (n) of section 1210 of the tax law, as
added by chapter 306 of the laws of 2005, is amended to read as follows:
  (1) Any city having a population of one million or more in  which  the
taxes  imposed  by  section  eleven hundred seven of this chapter are in
effect, acting through its local legislative body, is hereby  authorized
and empowered to elect to provide the same exemptions from such taxes as
the  [residential]  solar  energy systems equipment exemption from state
sales and compensating  use  taxes  described  in  subdivision  (ee)  of
section  eleven hundred fifteen of this chapter by enacting a resolution

S. 6259                            38                            A. 9059

in the form set forth in paragraph two of this  subdivision;  whereupon,
upon  compliance with the provisions of subdivisions (d) and (e) of this
section, such enactment of such resolution shall  be  deemed  to  be  an
amendment  to  such section eleven hundred seven and such section eleven
hundred seven shall be deemed to incorporate such exemptions as if  they
had  been  duly  enacted  by  the  state legislature and approved by the
governor.
  S 5. This act shall take effect immediately, provided that:
  (1) section one of this act shall apply  to  leases  of  solar  energy
system equipment and purchases of power under written agreements entered
into  on  or  after such effective date; provided further, however, that
the amendments to paragraph 3 of subsection (g-1) of section 606 of  the
tax  law  made by section one of this act shall not apply to any taxable
year commencing on or after January 1, 2015; and
  (2) sections two, three and four of this act shall apply to sales made
or uses occurring on or after September 1, 2012 in accordance  with  the
applicable  transitional provisions of sections 1106 and 1217 of the tax
law.

                                 PART I

  Section 1. Paragraph 1 of subdivision (a) of section  28  of  the  tax
law,  as  amended by chapter 440 of the laws of 2006, is amended to read
as follows:
  (1) A taxpayer which is a qualified commercial production company,  or
which is a sole proprietor of a qualified commercial production company,
and  which  is subject to tax under article nine-A or twenty-two of this
chapter, shall be allowed a credit against such  tax,  pursuant  to  the
provisions  referenced  in  subdivision [(d)] (C) of this section, to be
computed as provided in this section. Provided, however, to be  eligible
for  such  credit, at least seventy-five percent of the production costs
(excluding post production costs) paid or incurred directly and predomi-
nantly in the actual filming or recording of  the  qualified  commercial
must be costs incurred in New York state.  THE TAX CREDIT ALLOWED PURSU-
ANT  TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND SEVENTEEN.
  S 2. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
added by section 3 of part V of chapter 62  of  the  laws  of  2006,  is
amended to read as follows:
  (a)  Allowance  of  credit.  A  taxpayer  that is eligible pursuant to
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article.   THE  TAX  CREDIT  ALLOWED  PURSUANT  TO  THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
  S  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
added by section 5 of part V of chapter 62  of  the  laws  of  2006,  is
amended to read as follows:
  (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article.   THE  TAX  CREDIT  ALLOWED  PURSUANT  TO  THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.

S. 6259                            39                            A. 9059

  S  4. Section 10 of part V of chapter 62 of the laws of 2006, relating
to the empire state commercial production tax credit, is amended to read
as follows:
  S 10. This act shall take effect immediately [and shall apply to taxa-
ble years beginning on and after January 1, 2007 and shall expire and be
deemed  repealed  on  December 31, 2011]; provided, however that the IMB
credit for energy taxes  under  subsection  (t-1)  and  the  state  film
production  credit  under  subsection (gg) of section 606 of the tax law
contained in section four of this act shall expire on the same  date  as
provided in subdivision (a) of section 49 of part Y of chapter 63 of the
laws  of  2000,  as amended and section 9 of part P of chapter 60 of the
laws of 2004, as amended, respectively.
  S 5. This act shall take effect immediately.

                                 PART J

  Section 1.  Subdivision 4 of section 22 of the public housing law,  as
amended  by  section  1  of part F of chapter 61 of the laws of 2011, is
amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [thirty-two] FORTY million dollars. The limitation
provided by this subdivision applies only to allocation of the aggregate
dollar amount of credit by the  commissioner,  and  does  not  apply  to
allowance  to  a taxpayer of the credit with respect to an eligible low-
income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [forty] FORTY-EIGHT million dollars.  The  limita-
tion  provided  by  this  subdivision  applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [forty-eight] FIFTY-SIX million dollars. The limi-
tation  provided  by  this subdivision applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article shall be [fifty-six] SIXTY-FOUR million dollars. The limi-
tation provided by this subdivision applies only to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:

S. 6259                            40                            A. 9059

  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be  [sixty-four]  SEVENTY-TWO  million  dollars.  The
limitation  provided  by  this subdivision applies only to allocation of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. This  act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2013, section three
of this act shall take effect April 1, 2014, section four  of  this  act
shall  take effect April 1, 2015 and section five of this act shall take
effect April 1, 2016.

                                 PART K

  Section 1. Subdivision (a) of section 28 of the tax law, as amended by
section 1 of part A of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  If the
taxpayer is a partner in a partnership or shareholder of a  New  York  S
corporation,  then  the  cap  imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY.
  S 2. Section 187-c of the tax law, as added by section 2 of part X  of
chapter 62 of the laws of 2006, is amended to read as follows:
  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section twenty-eight of this  chap-
ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
SIX,  against  the  tax imposed by this article. Provided, however, that
the amount of such credit allowed against the tax imposed by section one
hundred eighty-four of this article shall be the excess of the amount of
such credit over the amount  of  any  credit  allowed  by  this  section
against  the  tax  imposed  by  section one hundred eighty-three of this
article. In no event shall the credit under this section be  allowed  in
an  amount which will reduce the tax payable to less than the applicable
minimum tax fixed by section one hundred  eighty-three  or  one  hundred
eighty-five  of  this  article.  If,  however,  the amount of the credit
allowed under this section for any taxable year reduces the tax to  such
amount, the excess shall be treated as an overpayment of tax to be cred-
ited  or  refunded  in  accordance  with  the  provisions of section six
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter
notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT

S. 6259                            41                            A. 9059

ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S 3. Subdivision 38 of section 210 of the tax law, as added by section
3  of  part  X  of chapter 62 of the laws of 2006, is amended to read as
follows:
  38. Biofuel production credit. A taxpayer shall be allowed  a  credit,
to  be  computed as provided in section twenty-eight of this chapter, AS
ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF  TWO  THOUSAND  SIX,
against  the  tax imposed by this article. The credit allowed under this
subdivision for any taxable year shall 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 shall be treated as an overpayment of tax to be credited or
refunded in accordance with  the  provisions  of  section  one  thousand
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter
notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S  4.  Subsection  (jj)  of  section  606  of the tax law, as added by
section 5 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
to be computed as provided in section twenty-eight of this  chapter,  AS
ADDED  BY  PART  X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
against the tax imposed by this article. 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 overpay-
ment 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 shall be paid thereon.  THE TAX CREDIT ALLOWED PURSUANT
TO  THIS  SECTION  SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY.
  S 5. Section 6 of part X of chapter 62 of the laws of  2006,  amending
the  tax  law  relating  to providing tax credits for biofuel production
plants, is amended to read as follows:
  S 6. This act shall take effect immediately [and shall apply to  taxa-
ble  years commencing on and after January 1, 2006 and before January 1,
2013]; provided, however that the IMB  credit  for  energy  taxes  under
subsection  (t-1)  and the state film production credit under subsection
(gg) of section 606 of the tax law contained in section four of this act
shall expire on the same date as provided in subdivision (a) of  section
49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
of part P of chapter 60 of the laws of 2004, as amended, respectively.
  S 6. This act shall take effect immediately.

                                 PART L

  Section  1.  Section  2  of  part I of chapter 58 of the laws of 2006,
relating to providing an enhanced earned income tax credit,  is  amended
to read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January  1, 2006 [and before January 1,
2013].

S. 6259                            42                            A. 9059

  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 5232 of the civil practice law and rules is amended
by adding a new subdivision (i) to read as follows:
  (I)  NO  BANKING  INSTITUTION SHALL SETOFF AND APPLY A LEVY PROCESSING
FEE AGAINST THE PROCEEDS OF A LEVY FOR TAXES IMPOSED BY OR  PURSUANT  TO
THE  AUTHORITY  OF  THE  TAX  LAW OR FOR CHILD SUPPORT REGARDLESS OF ANY
TERMS OF AGREEMENT, OR SCHEDULE OF FEES, OR OTHER CONTRACT  BETWEEN  THE
DEBTOR AND THE BANKING INSTITUTION.
  S 2. Subdivision (d) of section 151 of the debtor and creditor law, as
amended  by  chapter  553  of  the  laws  of 1990, is amended to read as
follows:
  (d) the issuance of any execution against any of  the  property  of  a
creditor, EXCEPT AS PROVIDED FOR IN SUBDIVISION (I) OF SECTION FIFTY-TWO
HUNDRED THIRTY-TWO OF THE CIVIL PRACTICE LAW AND RULES;
  S  3.   This act shall take effect on the ninetieth day after it shall
have become a law.

                                 PART N

  Section 1. Subsection (a) of section 801 of the tax law, as amended by
section 2 of part B of chapter 56 of the laws of  2011,  is  amended  to
read as follows:
  (a)  For  the sole purpose of providing an additional stable and reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority  and  its subsidiaries and affiliates to preserve, operate and
improve essential transit and transportation services in  the  metropol-
itan  commuter  transportation  district,  a  tax  is  hereby imposed on
EMPLOYERS AND INDIVIDUALS AS FOLLOWS: (1) FOR employers  who  engage  in
business  within  the  MCTD  [(1)],  THE TAX IS IMPOSED at a rate of (A)
eleven hundredths (.11) percent OF THE  PAYROLL  EXPENSE  for  employers
with payroll expense no greater than three hundred seventy-five thousand
dollars  in  any  calendar  quarter,  (B)  twenty-three hundredths (.23)
percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
er than three hundred seventy-five thousand dollars and no greater  than
four  hundred thirty-seven thousand five hundred dollars in any calendar
quarter, and (C) thirty-four hundredths (.34)  percent  OF  THE  PAYROLL
EXPENSE  for  employers  with  payroll expense in excess of four hundred
thirty-seven thousand five hundred dollars  in  any  calendar  quarter[,
and].  IF  THE  EMPLOYER  IS  A  PROFESSIONAL  EMPLOYER ORGANIZATION, AS
DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE  ATTRIBUTABLE
TO  EACH  CLIENT  WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
WITH SUCH ORGANIZATION AND THE  PAYROLL  EXPENSE  ATTRIBUTABLE  TO  SUCH
ORGANIZATION  ITSELF,  MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
BY THE APPLICABLE RATE SET FORTH IN  THIS  PARAGRAPH  AND  ADDING  THOSE
PRODUCTS  TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
thirty-four hundredths (.34) percent of the net earnings  from  self-em-
ployment  of individuals that are attributable to the MCTD if such earn-
ings attributable to the MCTD exceed fifty thousand dollars for the  tax
year.
  S  2.  Section  4 of part B of chapter 56 of the laws of 2011 amending
the tax law relating to the tax rates and exclusions under the metropol-
itan commuter transportation mobility tax is amended to read as follows:

S. 6259                            43                            A. 9059

  S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY  1,  2012;  provided  however,  that
section  one  of  this act and the amendments in section two of this act
that concern employers shall take effect for the  quarter  beginning  on
April 1, 2012.
  S 3. This act shall take effect immediately; provided however that the
amendment  in  section  one of this act concerning professional employer
organizations shall take effect for the quarter beginning  on  April  1,
2012.

                                 PART O

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other
material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which pari-mutuel betting is authorized by this chapter at one  or  more
simulcast  facilities  for  each  of  the  contracting off-track betting
corporations which shall include wagers made in accordance with  section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this  article;  provided  further  that the contract provisions or other
simulcast arrangements for such simulcast  facility  shall  be  no  less
favorable than those in effect on January first, two thousand five; (ii)
that  each  off-track  betting  corporation having within its geographic
boundaries such residences, homes or other areas technically capable  of
receiving  the  simulcast signal shall be a contracting party; (iii) the
distribution of revenues shall be subject to  contractual  agreement  of
the  parties  except that statutory payments to non-contracting parties,
if any, may not be reduced; provided, however, that  nothing  herein  to
the  contrary  shall  prevent  a  track  from televising its races on an
irregular basis primarily for promotional or marketing purposes as found
by the board. For purposes of this paragraph, the provisions of  section
one  thousand  thirteen  of  this article shall not apply. Any agreement
authorizing an in-home simulcasting experiment commencing prior  to  May
fifteenth,  nineteen  hundred  ninety-five,  may,  and all its terms, be
extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,

S. 6259                            44                            A. 9059

however, that any party to such agreement may elect  to  terminate  such
agreement  upon  conveying  written  notice to all other parties of such
agreement at least forty-five days prior to the effective  date  of  the
termination,  via  registered  mail. Any party to an agreement receiving
such notice of an intent to terminate, may request the board to  mediate
between  the parties new terms and conditions in a replacement agreement
between the parties as will permit continuation of an in-home experiment
until June thirtieth,  two  thousand  [twelve]  THIRTEEN;  and  (iv)  no
in-home  simulcasting in the thoroughbred special betting district shall
occur without the approval of the regional thoroughbred track.
  S 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of  part  S of chapter 61 of the laws of 2011, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth,  two  thousand [twelve] THIRTEEN, the amount used exclusively
for purses to be awarded at races  conducted  by  such  receiving  track
shall  be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or  decreased
in  the  amount  of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to  the  total  commissions  that
would  have  been  available  to  such track prior to July twenty-first,
nineteen hundred ninety-five.
  S 3. The opening paragraph of subdivision 1 of  section  1014  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 3
of part S of chapter 61 of the laws of  2011,  is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any day during which a franchised corporation is conducting a race meet-
ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twelve] THIRTEEN and on any day  regardless  of
whether  or not a franchised corporation is conducting a race meeting in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two thousand [twelve] THIRTEEN. On any day on which a franchised  corpo-
ration  has  not  scheduled  a  racing program but a thoroughbred racing
corporation located within the state is conducting  racing,  every  off-
track  betting corporation branch office and every simulcasting facility
licensed in accordance  with  section  one  thousand  seven  (that  have
entered  into  a  written  agreement with such facility's representative
horsemen's organization, as approved by the board), one thousand  eight,
or  one  thousand  nine  of  this  article shall be authorized to accept
wagers and display the live simulcast signal  from  thoroughbred  tracks
located  in  another  state  or foreign country subject to the following
provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part S of chapter 61 of the
laws of 2011, is amended to read as follows:
  1. The provisions of this section shall  govern  the  simulcasting  of
races  conducted  at  harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through  June
thirtieth, two thousand [twelve] THIRTEEN.  This section shall supersede
all inconsistent provisions of this chapter.

S. 6259                            45                            A. 9059

  S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any  day  during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twelve]  THIRTEEN.    Every  off-track  betting
corporation  branch  office  and every simulcasting facility licensed in
accordance with section one thousand seven  that  have  entered  into  a
written  agreement with such facility's representative horsemen's organ-
ization as approved by the board, one thousand  eight  or  one  thousand
nine  of  this  article shall be authorized to accept wagers and display
the live full-card simulcast signal of thoroughbred  tracks  (which  may
include  quarter horse or mixed meetings provided that all such wagering
on such races shall be construed to be thoroughbred  races)  located  in
another  state  or foreign country, subject to the following provisions;
provided, however, no such written agreement  shall  be  required  of  a
franchised  corporation licensed in accordance with section one thousand
seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part S of chapter
61 of the laws of 2011, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [eleven] TWELVE, when a franchised corporation is conducting a race
meeting within the  state  at  Saratoga  Race  Course,  every  off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as approved by the board), one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting,  as  amended  by  section 7 of part S of chapter 61 of the
laws of 2011, is amended to read as follows:
  S 32. This act shall take effect immediately and the  pari-mutuel  tax
reductions  in  section  six  of  this  act  shall  expire and be deemed
repealed on  July  1,  [2012]  2013;  provided,  however,  that  nothing
contained  herein  shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any  provision  of  law  amended  by  any
section  of  this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner,  to  the  same
extent  and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three  and  twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to

S. 6259                            46                            A. 9059

simulcasting and the imposition of certain taxes, as amended by  section
8  of  part  S  of chapter 61 of the laws of 2011, is amended to read as
follows:
  S  54.  This  act  shall  take  effect immediately; provided, however,
sections three through twelve of this act shall take effect  on  January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing  law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2012] 2013; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.
  S  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part S
of chapter 61 of the laws of 2011, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established  is subject to the prior approval of the racing and wagering
board. Such rate may not be changed more than once per calendar  quarter
to  be effective on the first day of the calendar quarter. "Exotic bets"
and "multiple bets" shall have the meanings set forth  in  section  five
hundred  nineteen  of this chapter.   "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for
payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
retained  there  shall  be  paid  by  such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by  the  state
for  the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such  franchised  corporation,  the  following
percentages  of  the  total  pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus  twenty
per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super  exotic  bets
seven  and  one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred  ninety-five  through  September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three  per  centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks.  For  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such tax on all wagers shall be  two  and  six-

S. 6259                            47                            A. 9059

tenths  per  centum  and  for  the  period April first, two thousand one
through December thirty-first, two thousand [twelve] THIRTEEN, such  tax
on all wagers shall be one and six-tenths per centum, plus, in each such
period,  twenty  per centum of the breaks. Payment to the New York state
thoroughbred breeding and development fund  by  such  franchised  corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel  pools resulting from regular, multiple and exotic bets and three
per centum of super exotic bets provided, however, that for  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such payment shall be  six-tenths  of  one  per
centum  of  regular,  multiple and exotic pools and for the period April
first, two thousand one  through  December  thirty-first,  two  thousand
[twelve]  THIRTEEN, such payment shall be seven-tenths of one per centum
of such pools.
  S 10. Subdivision 5 of section 1012 of the racing, pari-mutuel  wager-
ing  and  breeding law, as amended by section 10 of part S of chapter 61
of the laws of 2011, is amended to read as follows:
  5. The provisions of this section shall expire and be  of  no  further
force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
  S 11. This act shall take effect immediately.

                                 PART P

  Section  1.  Subdivision  3 of section 205 of the tax law, as added by
section 8 of part U1 of chapter 62 of the laws of 2003,  is  amended  to
read as follows:
  3.  [From the] THE moneys collected from the taxes imposed by sections
one hundred eighty-three and one hundred eighty-four of this article  on
and  after  April  first,  two  thousand  [four] TWELVE, after reserving
amounts for refunds or reimbursements, SHALL BE DISTRIBUTED AS  FOLLOWS:
twenty  percent  of  such moneys shall be deposited to the credit of the
dedicated highway and bridge trust fund established by  section  eighty-
nine-b  of the state finance law[. The remainder], FIFTY-FOUR PERCENT OF
SUCH MONEYS shall be deposited  in  the  mass  transportation  operating
assistance  fund  to  the credit of the metropolitan mass transportation
operating assistance account created pursuant to section  eighty-eight-a
of  the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL BE
DEPOSITED IN THE MASS TRANSPORTATION OPERATING ASSISTANCE  FUND  TO  THE
CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT
CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
  S  2. This act shall take effect immediately and shall be deemed to be
in full force and effect on and after April 1, 2012; provided,  however,
that  the amendments to subdivision 3 of section 205 of the tax law made
by section one of this act shall not affect the repeal of such  subdivi-
sion and shall be deemed to be repealed therewith.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.

S. 6259                            48                            A. 9059

  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through P of this act shall be
as specifically set forth in the last section of such Parts.

S6259A - Bill Details

See Assembly Version of this Bill:
A9059D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6259A - Bill Texts

view summary

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).

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

    S. 6259--A                                            A. 9059--A

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

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
  article  seven  of  the  Constitution -- read once and referred to the
  Committee on Ways and Means --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
  erty  tax  law  relating  to  oil  and gas charges, in relation to the
  effective date of such chapter (Part A); to amend  the  real  property
  tax  law, the tax law, the administrative code of the city of New York
  and the state finance law, in  relation  to  the  suspension  of  STAR
  exemptions  and  related benefits of persons who are delinquent in the
  payment of outstanding state tax liabilities (Part B);  to  amend  the
  tax  law,  in  relation  to  reforming excise tax on tobacco products,
  imposing a fixed rate of tax on loose tobacco, and imposing  a  retail
  tax  on  cigars  (Part  C);  to amend chapter 109 of the laws of 2006,
  amending the tax law relating to providing exemptions,  reimbursements
  and  credits  from  various  taxes  for  certain alternative fuels, in
  relation to extending the alternative fuels tax exemptions  (Part  D);
  to  amend  the  tax law, in relation to making technical amendments to
  the tax treatment of diesel fuel to reflect  industry  practice  (Part
  E); to amend the tax law, in relation to the power of the commissioner
  of  taxation and finance to refuse to issue a certificate of authority
  to collect the sales and compensating use taxes imposed by article  28
  of  the tax law and pursuant to the authority of article 29 of the tax
  law (Part F); to amend the tax law and part U of  chapter  61  of  the
  laws  of 2011, amending the real property tax law, the general munici-
  pal law, the public officers law, the tax law, the abandoned  property
  law,  the state finance law and the administrative code of the city of
  New York, relating to establishing standards for electronic real prop-
  erty tax administration,  allowing  the  department  of  taxation  and
  finance  to  use electronic communication means to furnish tax notices
  and other documents, mandatory electronic  filing  of  tax  documents,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-02-2

S. 6259--A                          2                         A. 9059--A

  debit cards issued for tax refunds, improving sales tax compliance and
  repealing  certain  provisions  of  the tax law and the administrative
  code of the city of New York relating thereto, in relation  to  making
  permanent,  provisions  relating to mandatory electronic filing of tax
  documents and improving sales tax compliance; and  to  repeal  certain
  provisions  of  the tax law and the administrative code of the city of
  New York relating thereto (Part G); to amend the tax law, in  relation
  to  the personal income tax credits for solar energy systems equipment
  and the sales and use tax exemption provided for such equipment  (Part
  H);  to  amend  the tax law, in relation to extending the empire state
  commercial production tax credit; and to amend part V of chapter 62 of
  the laws of 2006 relating to the empire  state  commercial  production
  tax  credit,  in  relation  to  the effectiveness thereof (Part I); to
  amend the public housing law, in relation to the credit against income
  tax for persons or entities investing in low-income housing (Part  J);
  to  amend the tax law, in relation to extending the biofuel production
  tax credit; and to amend part X of chapter 62 of  the  laws  of  2006,
  amending  the  tax  law  relating to providing tax credits for biofuel
  production plants, in relation to the effectiveness thereof (Part  K);
  to  amend  chapter  58  of  the laws of 2006, relating to providing an
  enhanced earned income tax credit, in relation  to  the  effectiveness
  thereof  (Part  L);  to amend the civil practice law and rules and the
  debtor and creditor law, in relation  to  prohibiting  banking  insti-
  tutions from deducting levy processing fees from tax and child support
  levy proceeds (Part M); to amend the tax law, in relation to tax rates
  and exclusions under the metropolitan commuter transportation mobility
  tax  for  professional  employer  organizations and to amend part B of
  chapter 56 of the laws of 2011 amending the tax law  relating  to  the
  tax  rates  and exclusions under the metropolitan commuter transporta-
  tion mobility tax, in relation to the effectiveness thereof (Part  N);
  to  amend  the  racing,  pari-mutuel  wagering  and  breeding  law, in
  relation to licenses for simulcast facilities, sums relating to  track
  simulcast,  simulcast of out-of-state thoroughbred races, simulcasting
  of races run by  out-of-state  harness  tracks  and  distributions  of
  wagers;  to amend chapter 281 of the laws of 1994 amending the racing,
  pari-mutuel wagering and breeding  law  and  other  laws  relating  to
  simulcasting  and chapter 346 of the laws of 1990 amending the racing,
  pari-mutuel wagering and breeding  law  and  other  laws  relating  to
  simulcasting  and  the  imposition  of  certain  taxes, in relation to
  extending certain provisions thereof; to amend the racing, pari-mutuel
  wagering and breeding law, in relation to extending certain provisions
  thereof (Part O); to amend the tax law, in relation  to  the  distrib-
  ution  of  revenue  collected  from  the corporate and utilities taxes
  imposed under sections 183 and 184 of the tax law  (Part  P);  and  to
  amend the tax law and the administrative code of the city of New York,
  in  relation  to  facilitating the compliance of room remarketers with
  their obligation to collect sales tax  on  their  sales  of  occupancy
  (Part Q)

  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 major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part

S. 6259--A                          3                         A. 9059--A

identified as Parts A through Q. 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 a 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. Section 2 of chapter 540 of the laws of 1992, amending  the
real  property  tax  law  relating to oil and gas charges, as amended by
section 1 of part II of chapter 56 of the laws of 2009,  is  amended  to
read as follows:
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be  due  for  values
for assessment rolls with tentative completion dates after July 1, 1992,
and  provided  further,  that  this  act  shall remain in full force and
effect until March 31, [2012] 2015, at which time  section  593  of  the
real  property  tax  law  as  added  by section one of this act shall be
repealed.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012.

                                 PART B

  Section  1.  Subdivision 3 of section 425 of the real property tax law
is amended by adding a new paragraph (f) to read as follows:
  (F) COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S  ELIGIBILITY
FOR  THE  STAR  EXEMPTION  MUST NOT BE SUSPENDED PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW  DUE  TO  THE  PAST-DUE  STATE  TAX
LIABILITIES  OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY PROVISION
OF LAW TO THE CONTRARY,  WHERE  A  PROPERTY'S  ELIGIBILITY  FOR  A  STAR
EXEMPTION  HAS  BEEN  SUSPENDED  PURSUANT TO SUCH SECTION, THE FOLLOWING
PROVISIONS SHALL BE APPLICABLE:
  (I) THE PROPERTY SHALL BE INELIGIBLE FOR  A  BASIC  OR  ENHANCED  STAR
EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
ANCE  OF  NOTICE  BY THE DEPARTMENT OF THE SUSPENSION OF ITS ELIGIBILITY
FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
BLE TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH  A
PROPERTY  ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR OTHER
PERSON HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED  TO
IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
  (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
IN  THE  MANNER  PRESCRIBED  BY  SUCH SECTION. NEITHER AN ASSESSOR NOR A
BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER  SUCH  A  CHAL-
LENGE.
  (III)  THE  PROPERTY  SHALL  REMAIN  INELIGIBLE FOR THE STAR EXEMPTION
UNTIL THE DEPARTMENT NOTIFIES THE ASSESSOR THAT THE  SUSPENSION  OF  ITS
ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE

S. 6259--A                          4                         A. 9059--A

EXEMPTION  MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT THE
ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.
  (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
STAR  EXEMPTION  PURSUANT  TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
THIS SECTION, A SUSPENSION OF A  STAR  EXEMPTION  DUE  TO  A  TAXPAYER'S
PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON
THE  COOPERATIVE  APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
BY THAT TAXPAYER.
  S 2. The tax law is amended by adding a new section 171-y to  read  as
follows:
  S  171-Y.  ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES THROUGH THE
SUSPENSION OF ELIGIBILITY FOR STAR EXEMPTIONS. 1.  THE  COMMISSIONER  IS
HEREBY  AUTHORIZED  TO DEVELOP A PROGRAM TO COLLECT DELINQUENT STATE TAX
LIABILITIES FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY  OF
PROPERTIES  FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY OWNERS
HAVE PAST-DUE STATE TAX LIABILITIES. FOR THE PURPOSES OF  THIS  SECTION,
THE  TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT LIMITED
TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
FEE ADMINISTERED BY THE COMMISSIONER THAT IS OWED  BY  A  TAXPAYER;  THE
TERM  "PAST-DUE  STATE TAX LIABILITIES" MEANS ANY STATE TAX LIABILITY OR
LIABILITIES WHICH HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER  NO
LONGER  HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND FOR WHICH
THE TAXPAYER HAS NOT MADE PAYMENT ARRANGEMENTS FOR THAT LIABILITY SATIS-
FACTORY TO THE COMMISSIONER; THE TERM "TAXPAYER" SHALL MEAN THE INDIVID-
UAL RESPONSIBLE FOR THE PAYMENT OF ANY OF THE PAST-DUE STATE TAX LIABIL-
ITIES; AND THE TERM "STAR  EXEMPTION"  MEANS  THE  EXEMPTION  FROM  REAL
PROPERTY  TAXATION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW.
  2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE  ADMINISTRATION
OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
  (A)  THE  CRITERIA  FOR  IDENTIFYING TAXPAYERS WITH PAST-DUE STATE TAX
LIABILITIES.
  (B) THE PROCEDURES BY WHICH THE  DEPARTMENT  SHALL  DETERMINE  WHETHER
PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
  (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
THAT  THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL BE
SUSPENDED UNLESS THEY EITHER SATISFY THEIR PAST-DUE  STATE  TAX  LIABIL-
ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
DATE TO BE SPECIFIED IN THE NOTICE.
  (D)  THE  PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS OF
PROPERTIES WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED  DUE
TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
  (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
ON  A  PROSPECTIVE  BASIS  BY EITHER SATISFYING THEIR PAST-DUE STATE TAX
LIABILITIES OR MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO  THE  COMMIS-
SIONER.
  (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
THE  SUSPENSION  OF  A PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION HAS
BEEN LIFTED.
  (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
NATE AND EXECUTE THEIR OBLIGATIONS PURSUANT TO THIS  SECTION  AND  PARA-
GRAPH  (F)  OF  SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE REAL PROPERTY TAX LAW.
  (H) ANY OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY  TO  CARRY
OUT THE PROVISIONS OF THIS SECTION.

S. 6259--A                          5                         A. 9059--A

  3.  THE  DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST FORTY-FIVE DAYS
PRIOR TO THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR  OF  THE
SUSPENSION  OF  THE ELIGIBILITY FOR THE STAR EXEMPTION OF PROPERTY WHICH
IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
  (A)  SUCH  NOTICE  SHALL  INCLUDE A STATEMENT THAT THE DEPARTMENT WILL
NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE ELIGIBILITY  FOR  THE  STAR
EXEMPTION  OF  PROPERTY WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER UNLESS
THE TAXPAYER FULLY SATISFIES THE OUTSTANDING STATE  TAX  LIABILITIES  OR
OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
ACCORDANCE  WITH  LAW.  HOWEVER,  IN  ANY CASE WHERE A TAXPAYER FAILS TO
COMPLY WITH THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT  AS  DESCRIBED
HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
IMMEDIATELY  NOTIFY  THE  ASSESSOR  OF  THE SUSPENSION OF THE PROPERTY'S
ELIGIBILITY FOR THE STAR EXEMPTION.
  (B) SUCH NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY  FOR  THE
TAXPAYER  TO  PAY  THE  PAST-DUE LIABILITY, MAKE PAYMENT ARRANGEMENTS OR
OTHERWISE REQUEST ADDITIONAL INFORMATION.
  (C) SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO  PROTEST
THE  NOTICE  IS  LIMITED  TO RAISING ISSUES THAT CONSTITUTE A MISTAKE OF
FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
  (D) SUCH NOTICE SHALL ALSO INCLUDE A STATEMENT THAT THE SUSPENSION  OF
THE  PROPERTY'S  STAR  EXEMPTION  WILL  CONTINUE  UNTIL THE TAXPAYER HAS
SATISFIED HIS OR HER PAST-DUE STATE TAX LIABILITIES OR HAS MADE  PAYMENT
ARRANGEMENTS  SATISFACTORY  TO  THE  COMMISSIONER, AND THAT THE PROPERTY
WILL BE PERMANENTLY INELIGIBLE FOR THE STAR  EXEMPTION  FOR  ANY  SCHOOL
YEARS  THAT  COMMENCE  WHILE  ITS  ELIGIBILITY FOR THE STAR EXEMPTION IS
SUSPENDED.
  (E) SUCH NOTICE MAY  ALSO  INCLUDE  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  4.  IF  THE  TAXPAYER  FAILS  TO SATISFY HIS OR HER PAST-DUE STATE TAX
LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
FIED IN THE NOTICE, THE DEPARTMENT SHALL  NOTIFY  THE  ASSESSOR  OF  THE
SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
  5.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, THE NOTICE ISSUED BY
THE DEPARTMENT PURSUANT TO THIS SECTION FOR THE  PURPOSE  OF  SUSPENDING
THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
BEFORE  THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED IN
THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM  OF  LEGAL  RECOURSE
AGAINST  THE  DEPARTMENT  OR ASSESSOR REGARDING SUCH SUSPENSION. FOR THE
PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT"  IS  LIMITED  TO  CLAIMS
THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
PAST-DUE  STATE  TAX LIABILITIES WERE SATISFIED; OR (III) THE DEPARTMENT
INCORRECTLY FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE  TERMS
OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
PERIOD  FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION.  HOWEVER,
NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX  HUNDRED
FIFTY-FOUR  OF  THIS  CHAPTER  TO  THE EXTENT THAT HE OR SHE IS ELIGIBLE
PURSUANT TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT  THE
ENFORCEMENT  OF  THE  UNDERLYING  TAX LIABILITIES HAS BEEN STAYED BY THE
FILING OF A PETITION PURSUANT TO THE  BANKRUPTCY  CODE  OF  1978  (TITLE
ELEVEN OF THE UNITED STATES CODE).
  6.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE DEPART-
MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
ANY TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE  STAR

S. 6259--A                          6                         A. 9059--A

EXEMPTION  PURSUANT  TO  THIS  SECTION  AND PARAGRAPH (F) OF SUBDIVISION
THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX  LAW
AND A DESCRIPTION OF SUCH PROPERTY.
  7.  ACTIVITIES  TO  COLLECT  STATE  TAX  LIABILITIES UNDERTAKEN BY THE
DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
OR IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO  COLLECT
OR  ENFORCE  PAST-DUE  STATE  TAX LIABILITIES UNDER ANY OTHER APPLICABLE
PROVISION OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX  LIABIL-
ITY  INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT TO
PARAGRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR  HUNDRED  TWENTY-FIVE
OF  THE REAL PROPERTY TAX LAW AND THIS SECTION MAY NOT BE APPLIED IN ANY
WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX
LIABILITY.
  S 3. Subsection (e) of section 697 of the tax law is amended by adding
a new paragraph 3-b to read as follows:
  (3-B)  NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH  ONE  OF   THIS
SUBSECTION,  THE  COMMISSIONER MAY DISCLOSE TO ASSESSORS THE INFORMATION
DESCRIBED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER  THAT  IS
NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROPER IDENTIFICATION
OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO OWNS PROPERTY WITH
A  STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSUANT TO SUCH SECTION
AND  PARAGRAPH  (F)  OF  SUBDIVISION  THREE  OF  SECTION  FOUR   HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  S  4. The tax law is amended by adding a new section 1304-E to read as
follows:
  S 1304-E. RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE  STATE
TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABILITY, AS
THAT  TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAP-
TER, ON THE LAST DAY OF THE TAXABLE YEAR, THE  TAX  RATE  APPLICABLE  TO
SUCH  TAXPAYER  UNDER  SECTION THIRTEEN HUNDRED FOUR OF THIS ARTICLE FOR
THE TAXABLE YEAR SHALL BE RECALCULATED BY  THE  COMMISSIONER  SO  AS  TO
ELIMINATE  THE  REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE HUNDRED
EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN,  AS  ADJUSTED.
SUCH  RECALCULATION  SHALL  BE  TREATED  AS A MATHEMATICAL ERROR AND THE
COMMISSIONER MAY ISSUE A NOTICE AND  DEMAND  TO  THE  TAXPAYER  FOR  THE
AMOUNT  DUE  AS  A  RESULT  OF SUCH RECALCULATION. THE AMOUNT BY WHICH A
TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT  OF  THE  RECALCU-
LATION  OF  THE  APPLICABLE TAX RATE PURSUANT TO THIS SECTION MAY NOT BE
APPLIED IN ANY WAY AS AN OFFSET AGAINST THE  AMOUNT  OF  THE  TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S  5. Paragraph 1 of subsection (e) of section 1310 of the tax law, as
amended by section 3 of part A of chapter 56 of the  laws  of  1998,  is
amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state  school  tax  reduction credit shall be allowed as provided in the
following tables. The credit shall be allowed against the taxes  author-
ized  by  this article reduced by the credits permitted by this article.
If the credit exceeds the tax as so reduced, the taxpayer  may  receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay  as an overpayment, without interest, the amount of such excess. For
purposes of this subsection, no credit shall be granted to (A) an  indi-
vidual  with respect to whom a deduction under subsection (c) of section
one hundred fifty-one of the  internal  revenue  code  is  allowable  to
another  taxpayer  for  the  taxable  year, OR (B) A TAXPAYER WHO OWES A
PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS  DEFINED  IN  SECTION  ONE
HUNDRED  SEVENTY-ONE-Y  OF  THIS CHAPTER, ON THE LAST DAY OF THE TAXABLE

S. 6259--A                          7                         A. 9059--A

YEAR. IF A TAXPAYER WITH A PAST-DUE  STATE  TAX  LIABILITY  CLAIMS  THIS
CREDIT,  ANY  AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
BE TREATED AS A MATHEMATICAL ERROR AND  THE  COMMISSIONER  MAY  ISSUE  A
NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT. THE AMOUNT BY WHICH A
TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT OF THE LOSS OF THE
TAX  CREDIT PURSUANT TO THIS SECTION MAY NOT BE APPLIED IN ANY WAY AS AN
OFFSET  AGAINST  THE  AMOUNT  OF  THE  TAXPAYER'S  PAST-DUE  STATE   TAX
LIABILITY.
  S  6.  The  administrative  code of the city of New York is amended by
adding a new section 11-1704.2 to read as follows:
  S 11-1704.2 RECALCULATION OF TAX  RATE  FOR  TAXPAYERS  WITH  PAST-DUE
STATE TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABIL-
ITY, AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THE
TAX LAW, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
SUCH  TAXPAYER  UNDER SECTION 11-1701 OF THIS SUBCHAPTER FOR THE TAXABLE
YEAR SHALL BE RECALCULATED BY THE COMMISSIONER OF TAXATION  AND  FINANCE
SO  AS TO ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE
HUNDRED EIGHTY-NINE OF THE LAWS OF  NINETEEN  HUNDRED  NINETY-SEVEN,  AS
ADJUSTED.    SUCH RECALCULATION SHALL BE TREATED AS A MATHEMATICAL ERROR
AND THE COMMISSIONER OF TAXATION AND FINANCE  MAY  ISSUE  A  NOTICE  AND
DEMAND  TO  THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT OF SUCH RECALCU-
LATION.  THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES
AS A RESULT OF THE RECALCULATION OF THE APPLICABLE TAX RATE PURSUANT  TO
THIS  SECTION  MAY  NOT  BE  APPLIED IN ANY WAY AS AN OFFSET AGAINST THE
AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABILITY.
  S 7. Paragraph 1 of subdivision (c) of section 11-1706 of the adminis-
trative code of the city of New York, as amended by section 6 of part  A
of chapter 56 of the laws of 1998, is amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state  school  tax  reduction credit shall be allowed as provided in the
following tables. The credit shall be allowed against the taxes  author-
ized  by  this article reduced by the credits permitted by this article.
If the credit exceeds the tax as so reduced, the taxpayer  may  receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay  as an overpayment, without interest, the amount of such excess. For
purposes of this subdivision, no credit shall be granted to (A) an indi-
vidual with respect to whom a deduction under subsection (c) of  section
one  hundred  fifty-one  of  the  internal  revenue code is allowable to
another taxpayer for the taxable year, OR (B)  A  TAXPAYER  WHO  OWES  A
PAST-DUE  STATE  TAX  LIABILITY,  AS THAT TERM IS DEFINED IN SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW, ON THE LAST  DAY  OF  THE  TAXABLE
YEAR.    IF  A  TAXPAYER WITH A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS  CREDIT  SHALL
BE  TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER OF TAXATION AND
FINANCE MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR  SUCH  AMOUNT.
THE  AMOUNT  BY  WHICH  A TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A
RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE
APPLIED IN ANY WAY AS AN OFFSET AGAINST THE  AMOUNT  OF  THE  TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S  8.  Paragraph  (a)  of  subdivision  3 of section 54-f of the state
finance law, as added by section 139 of part A of  chapter  389  of  the
laws of 1997, is amended to read as follows:
  (a) The amount of such reimbursement shall be estimated by the commis-
sioner  of  taxation and finance on or before December first of the year
preceding the state fiscal year during which such amount is to  be  paid
begins. The commissioner shall use the best available information at his

S. 6259--A                          8                         A. 9059--A

or her disposal to estimate such amount. In addition to such methods and
information  the commissioner may use in making such estimate, he or she
shall consult with the city department of finance during the preparation
of the determination of such amount.  SUCH REIMBURSEMENT SHALL DISREGARD
THE AMOUNT OF BENEFITS RECALCULATED PURSUANT TO SECTION THIRTEEN HUNDRED
FOUR-E  OF  THE  TAX LAW AND CREDITS DENIED PURSUANT TO PARAGRAPH ONE OF
SUBSECTION (E) OF SECTION THIRTEEN HUNDRED TEN OF THE TAX LAW.
  S 9. This act shall take effect  immediately;  provided  however  that
sections  four  through  seven  of this act shall apply to taxable years
beginning on or after January 1, 2012.

                                 PART C

  Section 1. The article heading of  article  20  of  the  tax  law,  as
amended  by  chapter  71  of  the  laws  of  1959, is amended to read as
follows:
             TAX ON CIGARETTES, CIGARS AND TOBACCO PRODUCTS
  S 2. Subdivision 2 of section 470  of  the  tax  law,  as  amended  by
section  15  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  2. "Tobacco products." Any  [cigar,  including  a  little  cigar,  or]
tobacco,  other than cigarettes AND CIGARS, intended for consumption [by
smoking, chewing, or as snuff].
  S 3. Subdivision 6 of section 470 of the tax law, as added by  chapter
61 of the laws of 1989, is amended to read as follows:
  6.  ["Wholesale price." The established price for which a manufacturer
sells tobacco products to a distributor, before  the  allowance  of  any
discount, trade allowance, rebate or other reduction.
  In  the absence of such an established price, a manufacturer's invoice
price of any tobacco product shall be presumptive evidence of the whole-
sale price of such tobacco product, and in  its  absence  the  price  at
which  such  tobacco products were purchased shall be presumed to be the
wholesale price, unless evidence of a lower  wholesale  price  shall  be
established or any industry standard of markups relating to the purchase
price  in  relation to the wholesale price shall be established.] "LOOSE
TOBACCO." ANY TOBACCO PRODUCTS, OTHER THAN SNUFF AND LITTLE CIGARS.
  S 4. Subdivision 8 of section 470  of  the  tax  law,  as  amended  by
section  1  of  part  K of chapter 61 of the laws of 2005, is amended to
read as follows:
  8. "Wholesale dealer." Any person who (a) sells cigarettes, CIGARS  or
tobacco  products  to  retail  dealers  or other persons for purposes of
resale, or (b) owns, operates or maintains one or more cigarette,  CIGAR
or  tobacco  product  vending  machines in, at or upon premises owned or
occupied by any other person, or (c) sells cigarettes, CIGARS or tobacco
products to an Indian nation or tribe  or  to  a  reservation  cigarette
seller on a qualified reservation.
  S  5. Subdivision 9 of section 470 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  9. "Retail dealer." Any person other than a wholesale  dealer  engaged
in selling cigarettes, CIGARS or tobacco products.
  S 6. Subdivision 12 of section 470 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
  12.  "Distributor."  Any  person  who imports or causes to be imported
into this state any CIGAR OR tobacco product (in excess of fifty  cigars
or  one  pound  of  tobacco)  for sale, or who manufactures any CIGAR OR
tobacco product in this state, and any  person  within  or  without  the

S. 6259--A                          9                         A. 9059--A

state who is authorized by the commissioner [of taxation and finance] to
make returns and pay the tax on CIGARS OR tobacco products sold, shipped
or delivered by [him] SUCH PERSON to any person in the state.
  S 7. Subdivision 18 of section 470 of the tax law, as added by section
1  of part QQ-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
  18. "Snuff." Any finely cut, ground, or powdered tobacco that  is  not
intended  to be smoked. SNUFF INCLUDES BOTH MOIST AND DRY SNUFF, AND ANY
SMOKELESS TOBACCO PRODUCT SIMILAR IN COMPOSITION AND  MAKEUP  TO  SNUFF.
SNUFF DOES NOT INCLUDE CHEWING TOBACCOS SUCH AS PLUG OR TWIST TOBACCO.
  S  8.  Subdivision  19  of  section  470 of the tax law, as amended by
section 17 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  19.  "Cigar."  Any  roll  of tobacco wrapped in leaf tobacco or in any
substance containing tobacco (other than any roll of tobacco that  is  a
cigarette  as defined in subdivision one of this section). "Cigar" shall
NOT include[, except where expressly excluded,] any little cigar.
  S 9. Section 470 of the tax law is amended by adding a new subdivision
20 to read as follows:
  20. "RECEIPT." THE AMOUNT RECEIVED IN OR BY REASON OF ANY SALE, CONDI-
TIONAL OR OTHERWISE, OF CIGARS. RECEIPT IS EXPRESSED IN  MONEY,  WHETHER
PAID  IN  CASH,  CREDIT  OR PROPERTY OF ANY KIND OR NATURE, AND SHALL BE
DETERMINED WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF FEDERAL  EXCISE
TAXES,  MANUFACTURER'S COUPONS, THE COST OF THE SERVICE SOLD OR THE COST
OF MATERIALS, LABOR  OR  SERVICES  USED  OR  OTHER  COSTS,  INTEREST  OR
DISCOUNT PAID OR ANY OTHER EXPENSES WHATSOEVER.
  S  10. Paragraph (a) of subdivision 1 of section 471-b of the tax law,
as amended by section 18 of part D of chapter 134 of the laws  of  2010,
is amended to read as follows:
  (a)  Such  tax  on LOOSE tobacco [products other than snuff and little
cigars] shall be at the rate of [seventy-five percent of  the  wholesale
price]  FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH  TAX  SHALL  BE  COMPUTED
BASED  ON  THE NET WEIGHT AS LISTED BY THE MANUFACTURER, and is intended
to be imposed only once upon the sale of  any  LOOSE  tobacco  [products
other than snuff and little cigars].
  S 11. Section 471-b of the tax law is amended by adding a new subdivi-
sion 4 to read as follows:
  4.  THE  TAX  IMPOSED  BY THIS SECTION SHALL NOT APPLY TO CIGARS ON OR
AFTER, JUNE FIRST, TWO THOUSAND TWELVE.
  S 12. Subdivision (a) of section 471-c of the tax law, as  amended  by
section  2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i)
and (ii) as amended by section  20  and  paragraph  (iii)  as  added  by
section  21  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  (a) There is hereby imposed and shall be paid a  tax  on  all  tobacco
products  used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use  of  [two
hundred  fifty  cigars or less, or] five pounds or less of tobacco other
than roll-your-own tobacco[,] or thirty-six ounces or less of roll-your-
own tobacco brought into the state on, or  in  the  possession  of,  any
person.
  (i)  Such  tax  on LOOSE tobacco [products other than snuff and little
cigars] shall be at the rate of [seventy-five percent of  the  wholesale

S. 6259--A                         10                         A. 9059--A

price]  FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH  TAX  SHALL  BE  COMPUTED
BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER.
  (ii)  Such  tax on snuff shall be at the rate of two dollars per ounce
and a proportionate rate on any fractional parts of an  ounce,  provided
that  cans or packages of snuff with a net weight of less than one ounce
shall be taxed at the equivalent rate of cans or packages  weighing  one
ounce.  Such  tax shall be computed based on the net weight as listed by
the manufacturer.
  (iii) Such tax on little cigars shall be at the same rate  imposed  on
cigarettes  under  this  article and is intended to be imposed only once
upon the sale of any little cigars.
  S 13. The tax law is amended by adding a new section 471-f to read  as
follows:
  S 471-F. IMPOSITION OF CIGAR TAX. 1. THERE IS HEREBY IMPOSED AND THERE
SHALL BE PAID A TAX OF FIFTY PERCENT UPON THE RECEIPTS FROM EVERY RETAIL
SALE OF CIGARS, EXCEPT THAT NO TAX SHALL BE IMPOSED ON CIGARS SOLD UNDER
SUCH  CIRCUMSTANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH TAX,
OR SOLD TO THE UNITED STATES, OR SOLD TO OR BY A VOLUNTARY UNINCORPORAT-
ED ORGANIZATION OF THE ARMED FORCES OF THE  UNITED  STATES  OPERATING  A
PLACE  FOR  THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE
APPROPRIATE EXECUTIVE  AGENCY  OF  THE  UNITED  STATES,  TO  THE  EXTENT
PROVIDED  IN  SUCH  REGULATIONS  AND POLICY STATEMENTS OF SUCH AN AGENCY
APPLICABLE TO SUCH SALES.  SUCH TAX IS INTENDED TO BE IMPOSED ONLY  ONCE
UPON THE SALE OF ANY CIGARS. IT SHALL BE PRESUMED THAT ALL CIGARS WITHIN
THE  STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
BURDEN OF PROOF THAT ANY CIGARS ARE NOT TAXABLE HEREUNDER SHALL BE  UPON
THE PERSON IN POSSESSION THEREOF.
  2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
TAX SHALL BE UPON THE CONSUMER, AND THAT ANY RETAIL DEALER WHO SHALL PAY
THE  TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER OR
CONSUMER.
  3. THE DISTRIBUTOR SHALL BE LIABLE UNDER SECTION FOUR  HUNDRED  SEVEN-
TY-ONE-H  OF  THIS ARTICLE FOR THE PREPAYMENT OF THE CIGAR TAX ON CIGARS
WHICH HE OR SHE IMPORTS OR CAUSES TO BE  IMPORTED  INTO  THE  STATE,  OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED  BY  THE  COMMISSIONER  TO MAKE RETURNS AND PREPAY THE CIGAR TAX ON
CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO  ANY  PERSON  IN  THE
STATE  SHALL BE LIABLE FOR THE PREPAYMENT OF THE CIGAR TAX ON ALL CIGARS
SO SOLD, SHIPPED OR DELIVERED.
  4. SEPARATE STATEMENT OF TAX.  DISTRIBUTORS,  WHOLESALE  DEALERS,  AND
RETAIL  DEALERS  REQUIRED  TO COLLECT OR PASS THROUGH THE TAX IMPOSED BY
THIS SECTION SHALL STATE, CHARGE, AND SHOW THAT TAX SEPARATELY FROM  THE
PRICE  OR CHARGE, AND ALSO SEPARATELY FROM ANY OTHER TAX IMPOSED BY THIS
ARTICLE OR OTHER LAW ON ANY  SALES  SLIP,  INVOICE,  RECEIPT,  OR  OTHER
STATEMENT  OR  MEMORANDUM OF THE PRICE OR CHARGE, PAID OR PAYABLE, GIVEN
TO THE CUSTOMER.
  S 14. The tax law is amended by adding a new section 471-g to read  as
follows:
  S 471-G. USE TAX ON CIGARS.  (A) THERE IS HEREBY IMPOSED ON ALL CIGARS
USED  IN  THE  STATE  BY  ANY  PERSON,  EXCEPT THAT NO SUCH TAX SHALL BE
IMPOSED (1) IF THE TAX PROVIDED IN SECTION FOUR HUNDRED SEVENTY-ONE-F OF
THIS ARTICLE IS PAID, OR (2) ON THE USE OF CIGARS WHICH ARE EXEMPT  FROM
THE  TAX  IMPOSED  BY SAID SECTION, OR (3) ON THE USE OF FIFTY CIGARS OR
LESS BROUGHT INTO THE STATE ON, OR IN THE  POSSESSION  OF,  ANY  PERSON.
THERE  IS  HEREBY IMPOSED AND THERE SHALL BE PAID A TAX OF FIFTY PERCENT

S. 6259--A                         11                         A. 9059--A

UPON ALL RECEIPTS PAID OR REQUIRED TO BE PAID FROM EVERY RETAIL SALE  OF
CIGARS.
  (B) WITHIN TWENTY-FOUR HOURS AFTER LIABILITY FOR THE TAX ACCRUES, EACH
SUCH  PERSON  SHALL  FILE WITH THE COMMISSIONER A RETURN IN SUCH FORM AS
THE COMMISSIONER MAY PRESCRIBE TOGETHER WITH A  REMITTANCE  OF  THE  TAX
SHOWN  TO  BE  DUE THEREON. FOR PURPOSES OF THIS ARTICLE, THE WORD "USE"
MEANS THE EXERCISE OF ANY RIGHT OR  POWER  ACTUAL  OR  CONSTRUCTIVE  AND
SHALL  INCLUDE BUT IS NOT LIMITED TO THE RECEIPT, STORAGE OR ANY KEEPING
OR RETENTION FOR ANY LENGTH OF TIME, BUT SHALL  NOT  INCLUDE  POSSESSION
FOR SALE. ALL THE OTHER PROVISIONS OF THIS ARTICLE, IF NOT INCONSISTENT,
SHALL  APPLY TO THE ADMINISTRATION AND ENFORCEMENT OF THE TAX IMPOSED BY
THIS SECTION IN THE SAME MANNER AS IF THE LANGUAGE  OF  SAID  PROVISIONS
HAD BEEN INCORPORATED IN FULL INTO THIS SECTION.
  S  15. The tax law is amended by adding a new section 471-h to read as
follows:
  S 471-H. PREPAYMENT OF CIGAR TAX.  (A)(1) EVERY DISTRIBUTOR SHALL PAY,
AS A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY SECTION FOUR  HUNDRED
SEVENTY-ONE-F  OF  THIS  ARTICLE  AND  PURSUANT TO THE AUTHORITY OF THIS
ARTICLE, A TAX ON CIGARS POSSESSED FOR SALE OR USE IN THIS STATE, EXCEPT
NO TAX SHALL BE REQUIRED TO BE PREPAID  ON  CIGARS  SOLD  UNDER  CIRCUM-
STANCES  THAT  THIS  STATE IS WITHOUT POWER TO IMPOSE SUCH PREPAYMENT OR
SOLD TO THE UNITED STATES OR SOLD TO OR BY  A  VOLUNTARY  UNINCORPORATED
ORGANIZATION  OF THE ARMED FORCES OF THE UNITED STATES OPERATING A PLACE
FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE  APPRO-
PRIATE  EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT PROVIDED IN
SUCH REGULATIONS AND WRITTEN POLICY STATEMENTS OF SUCH AN AGENCY  APPLI-
CABLE TO SUCH SALES.
  (2)  THE  COMMISSIONER  MAY, IN THE COMMISSIONER'S DISCRETION, REQUIRE
ANY DISTRIBUTOR TO FILE WITH THE DEPARTMENT A BOND ISSUED  BY  A  SURETY
COMPANY  APPROVED  BY  THE  SUPERINTENDENT  OF  FINANCIAL SERVICES AS TO
SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS  IN  THE
STATE  OR  OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN SUCH AMOUNT
AS THE COMMISSIONER MAY FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE  FROM
SUCH  DISTRIBUTOR  PURSUANT TO THIS SECTION. IF SECURITIES ARE DEPOSITED
AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE
CUSTODY OF THE COMMISSIONER AND MAY BE SOLD BY THE  COMMISSIONER  IF  IT
BECOMES  NECESSARY  TO  DO SO IN ORDER TO RECOVER ANY SUMS DUE FROM SUCH
DISTRIBUTOR PURSUANT TO THIS SECTION, BUT NO  SUCH  SALE  SHALL  BE  HAD
UNTIL  AFTER  SUCH DISTRIBUTOR SHALL HAVE HAD AN OPPORTUNITY TO LITIGATE
THE VALIDITY OF ANY PREPAYMENT OF TAX IF IT ELECTS TO DO  SO.  UPON  ANY
SUCH  SALE,  THE  SURPLUS, IF ANY, ABOVE THE SUMS DUE UNDER THIS SECTION
SHALL BE RETURNED TO SUCH DISTRIBUTOR.
  (3) WHERE CIGARS ARE IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE,
OR MANUFACTURED IN THE STATE, THE AMOUNT OF THE CIGAR TAX REQUIRED TO BE
PREPAID PURSUANT TO THIS SECTION SHALL BE TWENTY CENTS ON EACH CIGAR.
  (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE  TAXES  REQUIRED
TO  BE  PREPAID  PURSUANT  TO  THIS  SECTION  SHALL  BE ADMINISTERED AND
COLLECTED IN A LIKE MANNER AS THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED
SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS  ARTICLE.  ALL  THE
PROVISIONS  OF  THIS  ARTICLE  RELATING TO OR APPLICABLE TO THE ADMINIS-
TRATION, COLLECTION  AND  DISPOSITION  OF  THE  TAXES  IMPOSED  BY  SUCH
SECTIONS  SHALL  APPLY  TO  THE  TAX  REQUIRED  TO BE PREPAID UNDER THIS
SECTION SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH PREPAY-
MENTS OF TAX WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH
MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE
TAX SO IMPOSED. SUCH PROVISIONS SHALL APPLY  WITH  THE  SAME  FORCE  AND

S. 6259--A                         12                         A. 9059--A

EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL
IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON-
SISTENT  WITH  A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE TAX
REQUIRED  TO  BE  PREPAID BY THIS SECTION. FOR PURPOSES OF THIS SECTION,
ANY REFERENCE IN THIS ARTICLE TO THE TAX OR TAXES  IMPOSED  BY  SECTIONS
FOUR  HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTI-
CLE SHALL BE DEEMED TO REFER TO THE TAX REQUIRED TO BE PREPAID  PURSUANT
TO THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
  (C)  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO  THIS  SECTION  MORE  THAN
ONCE  UPON  CIGARS POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN THE
PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL HAVE BEEN
SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED  SEVEN-
TY-ONE-F  OR  FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE AND PURSUANT TO
THE AUTHORITY OF THIS ARTICLE WITH RESPECT TO THE RETAIL SALE OR THE USE
OF CIGARS. NOTHING IN THIS SECTION SHALL  MODIFY  OR  AFFECT  THE  TAXES
IMPOSED  BY  SECTIONS FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVEN-
TY-ONE-G OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE SALE, OR TO THE
USE, OF SUCH CIGARS.
  (D) THE DISTRIBUTOR SHALL BE LIABLE FOR  THE  PREPAID  TAX  ON  CIGARS
WHICH  HE  OR  SHE  IMPORTS  OR CAUSES TO BE IMPORTED INTO THE STATE, OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED BY THE COMMISSIONER TO MAKE RETURNS AND  PAY  THE  PREPAID  TAX  ON
CIGARS  SOLD,  SHIPPED  OR  DELIVERED BY HIM OR HER TO ANY PERSON IN THE
STATE SHALL BE LIABLE FOR THE PREPAID TAX ON ALL CIGARS SO SOLD, SHIPPED
OR DELIVERED.
  S 16. The tax law is amended by adding a new section 471-i to read  as
follows:
  S 471-I. REFUNDS AND CREDITS WITH RESPECT TO CIGARS.
  (A)  RETAIL  DEALER.    (1)  A RETAIL DEALER OF CIGARS WHO OR WHICH IS
REQUIRED  TO  COLLECT  THE  TAXES  IMPOSED  BY  SECTION   FOUR   HUNDRED
SEVENTY-ONE-F  OF  THIS  ARTICLE  SHALL  BE  ALLOWED  A REFUND OR CREDIT
AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED  TO  THE
COMMISSIONER  PURSUANT  TO THE PROVISIONS OF SECTION FOUR HUNDRED SEVEN-
TY-ONE-F OF THIS ARTICLE UPON THE RETAIL SALE OF CIGARS IN THE AMOUNT OF
THE TAX ON SUCH CIGARS PREPAID BY OR PASSED THROUGH TO AND  INCLUDED  IN
THE  PRICE  PAID  BY  SUCH  RETAIL  DEALER PURSUANT TO THE PROVISIONS OF
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE.
  (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH  RETAIL  DEALER  FOR
THE  TAX  PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID
BY SUCH RETAIL DEALER UPON ANY CIGARS  PURSUANT  TO  THE  PROVISIONS  OF
SECTION  FOUR  HUNDRED  SEVENTY-ONE-F OF THIS ARTICLE IF SUCH CIGARS ARE
SOLD AT RETAIL BY SUCH RETAIL DEALER UNDER CIRCUMSTANCES WHERE THE TAXES
IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE AND PURSU-
ANT TO THE AUTHORITY OF THIS ARTICLE ARE NOT REQUIRED BY THE  PROVISIONS
OF THIS ARTICLE TO BE COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL
SALE THEREOF.
  (B)  EXPORT,  DESTRUCTION, TAX PAID IN ERROR. WHENEVER ANY CIGARS UPON
WHICH THE PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED  SEVENTY-ONE-H  OF
THIS  ARTICLE  HAS BEEN PAID HAVE BEEN SOLD AND SHIPPED TO ANOTHER STATE
FOR SALE OR USE THERE OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED  THAT
ANY   TAX   REQUIRED   TO  BE  PREPAID  BY  SUCH  SECTION  FOUR  HUNDRED
SEVENTY-ONE-H OF THIS  ARTICLE  SHALL  HAVE  BEEN  PAID  IN  ERROR,  THE
DISTRIBUTOR OR DEALER, AS THE CASE MAY BE, SHALL BE ENTITLED TO A REFUND

S. 6259--A                         13                         A. 9059--A

OR  CREDIT  OF  THE ACTUAL AMOUNT OF PREPAID TAX SO PAID WITH RESPECT TO
CIGARS WHICH WILL NOT BE POSSESSED FOR SALE OR USE IN THIS STATE.
  (C)  REFUNDS  OF  THE  TAX  REQUIRED  TO  BE  PREPAID  PURSUANT TO THE
PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS  ARTICLE  SHALL
BE  ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR PASSED THROUGH TO THE
RETAIL DEALER, OR THE PURCHASER OR  USER,  EXCEEDS  THE  AMOUNT  OF  TAX
REQUIRED  TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED BY
THE PROVISIONS OF THIS ARTICLE.
  (D) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
EXTENT THAT THE TAX REQUIRED TO BE  PREPAID  PURSUANT  TO  SECTION  FOUR
HUNDRED  SEVENTY-ONE-H  OF  THIS  ARTICLE  HAS BEEN PREPAID BY OR PASSED
THROUGH TO SUCH RETAIL DEALER, PURCHASER OR USER, BUT ONLY TO THE EXTENT
THAT THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTI-
CLE TOGETHER WITH THE TAX IMPOSED BY SECTION FOUR HUNDRED  SEVENTY-ONE-G
OF  THIS  ARTICLE  REQUIRED  TO BE PAID, COLLECTED AND REMITTED HAS BEEN
PAID, COLLECTED AND REMITTED.
  (E) SUCH REFUNDS AND CREDITS SHALL BE SUBJECT  TO  THE  PROVISIONS  OF
SECTION  FOUR HUNDRED SEVENTY-SIX OF THIS ARTICLE AS IF SUCH SECTION WAS
INCORPORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
REFUNDS AND CREDITS AUTHORIZED BY THIS SECTION INCLUDING THE PERIODS  OF
LIMITATIONS  ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER; PROVIDED,
HOWEVER, THAT, AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-SIX  OF  THIS
ARTICLE,  NO  INTEREST  SHALL BE ALLOWED OR PAID UPON ANY REFUND MADE OR
CREDIT ALLOWED PURSUANT TO SUBDIVISIONS (A) AND (B) OF THIS SECTION. THE
COMMISSIONER SHALL PROCESS APPLICATIONS FOR REFUND AS  EXPEDITIOUSLY  AS
POSSIBLE.
  S  17. The tax law is amended by adding a new section 471-j to read as
follows:
  S 471-J. SPECIAL PROVISION  AS  TO  IMPOSITION  OF  TAXES  ON  CERTAIN
CIGARS.  IF  A  PERSON  SHALL RECEIVE ANY CIGARS, UPON WHICH CIGARS THIS
STATE WAS WITHOUT POWER TO IMPOSE THE TAXES UNDER THIS ARTICLE, AND SUCH
PERSON SHALL THEREAFTER POSSESS SUCH CIGARS FOR SALE  OR  USE  ANY  SUCH
CIGARS  IN  SUCH  MANNER AND UNDER SUCH CIRCUMSTANCES AS MAY SUBJECT THE
SAME TO THE TAXING POWER OF THIS STATE WITH RESPECT TO  SUCH  POSSESSION
FOR  SALE  OR  USE,  SUCH  PERSON SHALL BE LIABLE FOR THE TAX IMPOSED BY
SECTION FOUR HUNDRED SEVENTY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS
ARTICLE, AS THE CASE MAY BE WITH RESPECT TO SUCH SALE OR USE, AND  SHALL
MAKE  THE SAME REPORTS AND RETURNS, PAY THE SAME TAXES AND BE SUBJECT TO
ALL OTHER PROVISIONS OF THIS ARTICLE RELATING TO DISTRIBUTORS OR  RETAIL
DEALERS,  EXCEPT  THAT  SUCH  A  PERSON  SHALL  NOT  BE  SUBJECT  TO THE
PROVISIONS OF SECTIONS FOUR HUNDRED SEVENTY-TWO AND FOUR HUNDRED  EIGHTY
OF THIS ARTICLE IF SUCH PERSON DOES NOT OFFER CIGARS FOR SALE.
  S  18. The tax law is amended by adding a new section 471-k to read as
follows:
  S 471-K. COLLECTION OF  TAX  FROM  CUSTOMER;  FILING  OF  RETURNS  AND
PAYMENT.
  (A)(1)  EVERY  RETAIL  DEALER SHALL COLLECT THE TAX IMPOSED BY SECTION
FOUR HUNDRED SEVENTY-ONE-F  OF  THIS  ARTICLE  FROM  THE  CUSTOMER  WHEN
COLLECTING THE RECEIPT TO WHICH IT APPLIES. EACH CUSTOMER SHALL BE GIVEN
SOME  INDICIA  OF  SALE, INCLUDING SALES SLIP, INVOICE, RECEIPT OR OTHER
STATEMENT OR MEMORANDUM OF THE PRICE, UPON WHICH THE TAX SHALL BE  STAT-
ED, CHARGED AND SHOWN SEPARATELY.
  (2)  EXCEPT  AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS
OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER RELATING TO THE PERSONAL LIABIL-
ITY FOR THE TAX, ADMINISTRATION AND COLLECTION AND DETERMINATION OF TAX,
INCLUDING SECTION ELEVEN HUNDRED THIRTY-EIGHT OF THIS  CHAPTER  RELATING

S. 6259--A                         14                         A. 9059--A

TO  DETERMINATION OF TAX BUT NOT INCLUDING SECTION ELEVEN HUNDRED FORTY-
FIVE OF THIS CHAPTER, SHALL APPLY TO THE TAX  IMPOSED  BY  SECTION  FOUR
HUNDRED  SEVENTY-ONE-F  OF  THIS ARTICLE IN THE SAME MANNER AND WITH THE
SAME  FORCE  AND  EFFECT  AS  IF THE LANGUAGE OF SUCH PROVISIONS OF SUCH
ARTICLE TWENTY-EIGHT HAD BEEN INCORPORATED IN FULL  INTO  THIS  ARTICLE,
EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
A  PROVISION  OF  THIS  SECTION OR IS NOT RELEVANT THERETO AND WITH SUCH
OTHER MODIFICATIONS AS MAY BE NECESSARY TO ADAPT THE  LANGUAGE  OF  SUCH
PROVISIONS  TO  THE  PROVISIONS  OF  THIS SECTION. PROVIDED, HOWEVER ALL
TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE  COMMISSIONER
UNDER  SECTIONS  FOUR HUNDRED SEVENTY-ONE-F, FOUR HUNDRED SEVENTY-ONE-G,
AND FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL  BE  DEPOSITED  AND
DISPOSED OF PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE.
PROVIDED,  THE  COMMISSIONER MAY REQUIRE RETURNS TO BE FILED WITH HIM OR
HER AT SUCH TIMES AND CONTAINING SUCH  INFORMATION  AS  HE  OR  SHE  MAY
PRESCRIBE.
  (B) (1) (I) NO PERSON SHALL PURCHASE CIGARS IN THIS STATE, EXCLUDING A
PURCHASE  AT  RETAIL,  UNLESS  THE TAX REQUIRED TO BE PREPAID BY SECTION
FOUR HUNDRED SEVENTY-ONE-H  OF  THIS  ARTICLE  HAS  BEEN  ASSUMED  BY  A
DISTRIBUTOR  REGISTERED  UNDER THIS ARTICLE IN ACCORDANCE WITH A CERTIF-
ICATION UNDER THIS PARAGRAPH OR PAID BY SUCH DISTRIBUTOR, AND,  IN  EACH
OF  SUCH  INSTANCES, IS PASSED THROUGH TO SUCH PURCHASER. IN ADDITION TO
ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH MAY APPLY, ANY  PERSON  WHO
PURCHASES  CIGARS IN VIOLATION OF THIS SUBPARAGRAPH SHALL BE JOINTLY AND
SEVERALLY LIABLE TO PAY THE TAX REQUIRED TO BE PREPAID BY  SECTION  FOUR
HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITH RESPECT TO SUCH CIGARS.
  (II)  FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
TO PREVENT EVASION OF THE TAX ON CIGARS IMPOSED BY AND PURSUANT TO  THIS
ARTICLE,  IT SHALL BE PRESUMED THAT ALL CIGARS IMPORTED, MANUFACTURED OR
SOLD, RECEIVED OR POSSESSED IN THE STATE IS INTENDED FOR  USE,  DISTRIB-
UTION,  STORAGE  OR SALE IN THE STATE AND SUBJECT TO THE TAX REQUIRED TO
BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS  ARTICLE  UNTIL
THE  CONTRARY  IS  ESTABLISHED.  IT  SHALL  BE FURTHER PRESUMED THAT ALL
CIGARS SO IMPORTED, MANUFACTURED, SOLD, RECEIVED  OR  POSSESSED  IN  THE
STATE  BY ANY PERSON ARE SUBJECT TO THE TAX REQUIRED TO BE PREPAID UNDER
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE AND  SUCH  PERSON  IS
RESPONSIBLE  FOR  SUCH PREPAYMENT. THE BURDEN OF PROVING THAT ANY CIGARS
ARE NOT SO SUBJECT SHALL BE UPON THE  PERSON  SO  RESPONSIBLE  FOR  SUCH
PREPAYMENT WITH RESPECT TO SUCH CIGARS.
  (III) UPON EACH SALE OF CIGARS, OTHER THAN A SALE AT RETAIL, THE SELL-
ER  MUST  GIVE  TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE, AT THE
TIME OF DELIVERY OF SUCH CIGARS, A CERTIFICATION CONTAINING SUCH  INFOR-
MATION AS THE COMMISSIONER SHALL REQUIRE WHICH SHALL INCLUDE A STATEMENT
TO  THE EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR REGISTERED UNDER THIS
ARTICLE, THAT HE OR SHE HAS ASSUMED THE  PAYMENT  OF  OR  PAID  THE  TAX
REQUIRED  TO  BE  PREPAID  BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS
ARTICLE AND, IN EACH CASE, IS PASSING THROUGH SUCH TAX OR (B) THAT  SUCH
SELLER  IS  PASSING  THROUGH SUCH TAX WHICH WAS SO PREVIOUSLY ASSUMED OR
PAID BY AN IDENTIFIED DISTRIBUTOR OR WHOLESALE DEALER  REGISTERED  UNDER
THIS ARTICLE, AND PASSED THROUGH TO HIM OR HER.
  (IV)  IF  THE  CERTIFICATION  REQUIRED  BY  THIS  PARAGRAPH  HAS  BEEN
FURNISHED TO THE PURCHASER BY THE SELLER AT  DELIVERY  AND  ACCEPTED  IN
GOOD  FAITH,  THE  BURDEN OF PROVING THAT THE TAX REQUIRED TO BE PAID BY
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS ASSUMED  OR  PAID
BY  A DISTRIBUTOR REGISTERED UNDER THIS ARTICLE AND PASSED THROUGH SHALL
BE SOLELY ON THE SELLER.

S. 6259--A                         15                         A. 9059--A

  (V) WHERE THE CERTIFICATION  REQUIRED  UNDER  THIS  PARAGRAPH  IS  NOT
FURNISHED BY THE SELLER AT DELIVERY OF CIGARS, IT SHALL BE PRESUMED THAT
THE  TAX REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR REGISTERED AS
SUCH  UNDER  THIS ARTICLE AND THAT THE PURCHASER IN SUCH CASE IS JOINTLY
AND SEVERALLY LIABLE FOR THE TAX.
  S 19. Subdivision 3 of section 472 of the tax law, as added by chapter
61 of the laws of 1989 and as further amended by section 104 of  part  A
of chapter 62 of the laws of 2011, is amended to read as follows:
  3.  The  commissioner [of taxation and finance] may appoint dealers in
CIGARS  AND  tobacco  products,  manufacturers  of  CIGARS  AND  tobacco
products  and  other persons within or without the state as distributors
and may authorize them to make returns and to pay the tax on CIGARS  AND
tobacco products sold, shipped or delivered by them to any person in the
state.  The  commissioner  may,  in  his  OR HER discretion, require the
deposit of a bond issued by a surety company approved by the superinten-
dent of financial services as to solvency and responsibility and author-
ized to transact business in this state, or other security acceptable to
the commissioner in an amount and form satisfactory to him OR HER  as  a
condition  of appointing any such person as a distributor. If securities
are deposited as security under this subdivision, such securities  shall
be kept in the custody of the commissioner [of taxation and finance] and
may  be  sold  by  the  commissioner if it becomes necessary so to do in
order to recover any sums due from such  distributor  pursuant  to  this
article,  but  no  such  sale  shall be had until after such distributor
shall have had an opportunity to litigate the validity of any tax if  it
elects so to do. Upon any such sale, the surplus, if any, above the sums
due under this article shall be returned to such distributor.
  S 20. Section 473-a of the tax law, as added by chapter 61 of the laws
of 1989, is amended to read as follows:
  S  473-a.  Returns  and payment of CIGARS PREPAID AND tobacco products
[tax] TAXES by distributors.   1. (A) Every  distributor  shall,  on  or
before  the  twentieth day of each month, file with the commissioner [of
taxation and finance] a return on forms to be prescribed  and  furnished
by  the  commissioner, showing the quantity and [wholesale price] WEIGHT
of all tobacco products OR QUANTITY OF CIGARS imported or caused  to  be
imported  into  the  state by him OR HER or manufactured in the state by
him OR HER, during  the  preceding  calendar  month.  Every  distributor
authorized by the commissioner to make returns and pay the tax on CIGARS
OR  tobacco  products  sold,  shipped  or delivered by him OR HER to any
person in the state shall file a return showing the quantity and [whole-
sale price] WEIGHT of all tobacco products so sold, shipped or delivered
during the preceding calendar month. Provided, however, the commissioner
may, if he OR SHE deems it necessary in order to insure the  payment  of
the  taxes  imposed  by this article, require returns to be made at such
times and covering such periods as he OR SHE may deem necessary, and, by
regulation, may permit the filing of returns on a quarterly, semi-annual
or annual basis, or may waive the filing of returns by a distributor for
such time and upon such terms as he OR SHE may deem proper if  satisfied
that  no tax imposed by this article is or will be payable by him OR HER
during the time for which returns are waived. Such returns shall contain
such further information as the commissioner may require.
  (B) EVERY DISTRIBUTOR SHALL, ON OR BEFORE THE TWENTIETH  DAY  OF  EACH
MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED AND
FURNISHED  BY  THE  COMMISSIONER,  SHOWING  THE  QUANTITY  OF ALL CIGARS
IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM OR HER OR  MANU-

S. 6259--A                         16                         A. 9059--A

FACTURED  IN  THE  STATE  BY  HIM  OR HER, DURING THE PRECEDING CALENDAR
MONTH. EVERY DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER TO MAKE  RETURNS
AND  PAY  THE  CIGAR PREPAID TAX ON CIGARS SOLD, SHIPPED OR DELIVERED BY
HIM  OR  HER  TO ANY PERSON IN THE STATE SHALL FILE A RETURN SHOWING THE
QUANTITY OF ALL CIGARS SO SOLD, SHIPPED OR DELIVERED DURING THE  PRECED-
ING  CALENDAR  MONTH.  PROVIDED, HOWEVER, THE COMMISSIONER MAY, IF HE OR
SHE DEEMS IT NECESSARY IN ORDER TO  INSURE  THE  PAYMENT  OF  THE  CIGAR
PREPAID  TAX IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE AT SUCH
TIMES AND COVERING SUCH PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY
REGULATION, MAY PERMIT THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL
OR ANNUAL BASIS, OR MAY WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR
SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF  SATISFIED
THAT  NO CIGAR PREPAID TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE
BY HIM OR HER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS
SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
  2. Every distributor shall pay to the commissioner with the filing  of
such return the tax on CIGARS OR tobacco products for such month imposed
under this article.
  S  21. Subdivisions 2, 3 and 4 of section 474 of the tax law, subdivi-
sion 2 as amended by chapter 552 of the laws of 2008, subdivision  3  as
added  and  subdivision  4 as amended by chapter 61 of the laws of 1989,
are amended to read as follows:
  2. Every person who shall possess or transport more than [two hundred]
fifty cigars, or more than five pounds of tobacco other than  roll-your-
own  tobacco[,]  or more than thirty-six ounces of roll-your-own tobacco
upon the public highways, roads  or  streets  of  the  state,  shall  be
required  to  have  in [his] SUCH PERSON'S actual possession invoices or
delivery tickets for such CIGARS OR tobacco products. Such  invoices  or
delivery  tickets  shall  show  the name and address of the consignor or
seller, the  name  and  address  of  the  consignee  or  purchaser,  the
quantity,  WEIGHT  and  brands  of the CIGARS OR tobacco products trans-
ported, and the name and address of the person who has or  shall  assume
the  payment  of  the  tax  [and the wholesale price] or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such  person  is  a  dealer  in  CIGARS  OR  tobacco
products in this state and subject to the requirements of this article.
  3.  Every  dealer  or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars or more than one pound of tobacco  upon  the
public  highways,  roads  or  streets of the state, shall be required to
have in his OR HER actual possession invoices or  delivery  tickets  for
such CIGARS OR tobacco products. Such invoices or delivery tickets shall
show  the  name  and  address  of  the consignor or seller, the name and
address of the consignee or purchaser, the quantity, WEIGHT  and  brands
of  the CIGARS OR tobacco products transported, and the name and address
of the person who has or shall assume the payment of the  tax  [and  the
wholesale  price]  or  the  tax  paid  or  payable.  The absence of such
invoices or delivery tickets shall be prima facie evidence that the  tax
imposed  by this article on CIGARS OR tobacco products has not been paid
and is due and owing.
  4. At the time of delivering cigarettes to any person  each  agent  or
wholesale  dealer,  and  at  the  time  of  delivering CIGARS OR tobacco
products to any person each distributor or wholesale dealer of CIGARS OR
tobacco products, shall make a true duplicate invoice showing  the  date
of  delivery,  the number of packages and number of cigarettes contained
therein, in each shipment of cigarettes delivered,  and  the  items  and

S. 6259--A                         17                         A. 9059--A

quantity  and  [wholesale price] WEIGHT of each item in each shipment of
tobacco products OR QUANTITY OF CIGARS delivered, and the  name  of  the
purchaser  to  whom  delivery  is  made, and shall retain the same for a
period  of  three years subject to the use and inspection of the commis-
sioner [of taxation and finance]. Each dealer shall procure  and  retain
invoices  showing  the  number  of  packages  and  number  of cigarettes
contained therein, in each shipment of cigarettes  received  by  him  OR
HER,  and  the  items  and quantity and [wholesale price] WEIGHT of each
item in each shipment of CIGARS OR tobacco products received by  him  OR
HER, the date thereof, and the name of the shipper, and shall retain the
same  for  a  period of three years subject to the use and inspection of
the commissioner [of taxation and finance]. The commissioner  [of  taxa-
tion  and  finance]  by regulation may provide that whenever cigarettes,
CIGARS or tobacco products are shipped  into  the  state,  the  railroad
company,  express  company,  trucking  company  or  other public carrier
transporting any shipment thereof shall file with the  commissioner  [of
taxation  and  finance] a copy of the freight bill within ten days after
the delivery in the state of each shipment. All dealers  shall  maintain
and  keep  for a period of three years such other records of cigarettes,
CIGARS or tobacco products received, sold or delivered within the  state
as  may  be  required by the commissioner [of taxation and finance]. The
commissioner [of taxation and finance] is hereby authorized  to  examine
the  books,  papers,  invoices  and  other  records  of  any  person  in
possession, control or  occupancy  of  any  premises  where  cigarettes,
CIGARS or tobacco products are placed, stored, sold or offered for sale,
and the equipment of any such person pertaining to the stamping of ciga-
rettes  or  the  sale  and  delivery  of  cigarettes,  CIGARS or tobacco
products taxable under this article, as well as the stock of cigarettes,
CIGARS or tobacco products in any such premises or  vehicle.  To  verify
the  accuracy of the tax imposed and assessed by this article, each such
person is hereby directed and required to give to the  commissioner  [of
taxation and finance] or his OR HER duly authorized representatives, the
means,  facilities  and  opportunity for such examinations as are herein
provided for and required.
  S 22. The section heading of section 475 of the tax law, as amended by
chapter 227 of the laws of 1956, is amended to read as follows:
  General powers of the [tax commission] COMMISSIONER.
  S 23. Section 476 of the tax law, as amended by chapter 61 of the laws
of 1989, is amended to read as follows:
  S 476. Refunds; sales of stamps. Whenever any  cigarettes  upon  which
stamps have been placed or CIGARS OR tobacco products upon which the tax
has  been paid have been sold and shipped into another state for sale or
use there or have become unfit for use and consumption or unsalable,  or
have  been  destroyed,  or  whenever  the  commissioner [of taxation and
finance] shall have determined that any  tax  imposed  by  this  article
shall  have  been  paid  in error, the agent, dealer or CIGAR OR tobacco
products distributor, as the case may be, shall be entitled to a  refund
of  the  actual  amount of tax so paid, provided application therefor is
filed with the commissioner [of taxation and finance] within  two  years
after  the  stamps  were  affixed to such cigarettes or the tax was paid
upon such CIGARS OR tobacco products, except if an agreement  under  the
provisions  of  section  four  hundred  seventy-eight  OF  THIS  ARTICLE
(extending the period for determination of tax imposed by this  article)
is  made within the two-year period for the filing of an application for
refund provided for in this section, the period for filing  an  applica-
tion  for  refund shall not expire prior to six months after the expira-

S. 6259--A                         18                         A. 9059--A

tion of the period within which a determination may be made pursuant  to
the agreement or any extension thereof. If the commissioner [of taxation
and  finance] is satisfied that any dealer is entitled to a refund he OR
SHE  shall  issue to such dealer stamps of sufficient value to cover the
refund of the tax on cigarettes or may, subject to audit  by  the  comp-
troller,  make a refund of the tax on cigarettes or on CIGARS OR tobacco
products. No person shall sell or offer for sale  any  stamp  or  stamps
issued  under  this  article except by written permission of the commis-
sioner [of taxation and finance].  The  commissioner  [of  taxation  and
finance]  may redeem unused stamps lawfully in possession of any person.
The commissioner [of taxation and finance] may prescribe necessary rules
and regulations concerning refunds, sales  of  stamps,  and  redemptions
under the provisions of this article.
  S 24. Paragraph (d) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:
  (d) Each applicant shall file satisfactory proof that it will maintain
a  secure separate warehousing facility for the purpose of receiving and
distributing cigarettes, CIGARS or tobacco products and  conducting  its
wholesale  business.  Such proof shall consist of a copy of a deed, or a
copy of an executed lease for a minimum period of two years, to a  sepa-
rate,  secure warehouse. If the applicant carries on another business in
conjunction with the warehouse facility, the other business  shall  also
be identified.
  S 25. Paragraph (j) of subdivision 1 of section 480 of the tax law, as
amended  by  chapter  629  of  the  laws  of 1996, is amended to read as
follows:
  (j) The commissioner may for cause refuse to issue, or may suspend  or
revoke a wholesaler's license, or may forbid a retail dealer to continue
selling  cigarettes,  CIGARS  or tobacco products or may forbid a person
required to be appointed as a distributor of CIGARS OR tobacco  products
who has not been so appointed from selling cigarettes, CIGARS or tobacco
products,  after  an  opportunity  for  hearing  has  been  afforded.  A
violation of any provision of this article or of any  regulation  issued
under  it  shall  be cause to forbid a retail dealer to continue selling
cigarettes, CIGARS or tobacco products.
  S 26. Paragraph (k) of subdivision 1 of section 480 of the tax law, as
amended by chapter 262 of the laws  of  2000,  is  amended  to  read  as
follows:
  (k)  No  agent  shall  sell  cigarettes  and no distributor shall sell
CIGARS OR tobacco products to an unlicensed wholesale dealer,  or  to  a
wholesale  dealer  whose  license has been suspended or revoked, or to a
retail dealer who is not registered under section four hundred  eighty-a
of  this  article,  or whose registration has been suspended or revoked,
and no  wholesale  dealer  shall  sell  cigarettes,  CIGARS  or  tobacco
products  to  a  retail  dealer who is not registered under section four
hundred eighty-a  of  this  article,  or  whose  registration  has  been
suspended or revoked, and no retail dealer shall sell cigarettes, CIGARS
or  tobacco products unless such dealer is registered under section four
hundred eighty-a of this article.
  S 27. Paragraph (l) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:
  (l) Paragraphs (b), (c) and (g) of this subdivision shall not apply to
the filing of an application for a license as a wholesale dealer that is
based solely upon the ownership, operation or maintenance of one or more
cigarette, CIGAR or tobacco products vending machines  in,  at  or  upon
premises  owned  or  occupied by another person, or that is based solely

S. 6259--A                         19                         A. 9059--A

upon the sale of CIGARS OR tobacco products for resale, or that is based
upon both the ownership, operation or maintenance of one or  more  ciga-
rette,  CIGAR  or tobacco products vending machines in, at or upon prem-
ises  owned  or  occupied  by  another  person and the sale of CIGARS OR
tobacco products for resale.
  S 28. Subparagraph (iv) of paragraph (b) of subdivision 3  of  section
480  of  the  tax  law, as amended by chapter 61 of the laws of 1989, is
amended to read as follows:
  (iv) Has knowingly aided and abetted the sale of cigarettes, CIGARS or
tobacco products by a person which such licensee or  controlling  person
knows  (A)  has  not  been licensed by the commissioner [of taxation and
finance] and (B) is a wholesale dealer pursuant to the terms of subdivi-
sion eight of section four hundred seventy of this [chapter] ARTICLE.
  S 29. Subdivision 4 of section 480 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  4. If the commissioner [of taxation and finance] considers  it  neces-
sary  for  the  proper administration of the cigarette tax, CIGAR TAX or
tobacco products tax imposed by this article or the cigarette  marketing
standards  contained  in  article twenty-A of this chapter he OR SHE may
require every person under this article who holds a license  to  file  a
new  application  for  a  license  in  such form and at such time as the
commissioner may prescribe and to surrender such  license.  The  commis-
sioner  may  require  such filing and such surrender not more often than
once every three years. Upon the filing of  such  application  with  the
proper  fee  and  the  surrender of such license, the commissioner shall
issue, within such time as he OR SHE may prescribe,  a  new  license  to
each applicant.
  S  30. Paragraphs (a) and (b) of subdivision 1 of section 480-a of the
tax law, as added by chapter 190 of the laws of  1990,  are  amended  to
read as follows:
  (a)  [On  and after January first, nineteen hundred ninety-one, every]
EVERY retail dealer shall publicly display a certificate of registration
from the department in each place of  business  in  this  state  through
which  it  sells  cigarettes,  CIGARS  or  tobacco products at retail. A
retail dealer who has  no  regular  place  of  business  shall  publicly
display  such  certificate on each of its carts, stands, trucks or other
merchandising devices through  which  it  sells  cigarettes,  CIGARS  or
tobacco products in this state.
  (b)  Every  person who owns or, if the owner is not the operator, then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether located on the premises of the vending machine owner or, if  the
owner  is  not  the  operator,  then the premises of the operator or the
premises of any other person, must register each  such  vending  machine
with the department. [On and after January first, nineteen hundred nine-
ty-one,  a]  A vending machine registration certificate, in such form as
may be prescribed by the commissioner [of taxation and  finance],  shall
be  affixed  to each vending machine through which cigarettes, CIGARS or
tobacco products are sold in this state.
  S 31. Paragraphs (a) and (b) of subdivision 2 of section 480-a of  the
tax  law, as amended by section 1 of part T of chapter 61 of the laws of
2011, are amended to read as follows:
  (a) (i) Every retail dealer and every person owning or, if  the  owner
is  not  the  operator,  then  any  person operating one or more vending
machines through which cigarettes, CIGARS or tobacco products  are  sold
in  this  state, who is required under section eleven hundred thirty-six

S. 6259--A                         20                         A. 9059--A

of this chapter to file a return for the quarterly period ending on  the
last  day  of  August  OF EACH YEAR, [nineteen hundred ninety or for the
quarterly period ending on the last day of August in any year  thereaft-
er,]  must  file an application for registration under this section with
that quarterly return, in such  form  as  shall  be  prescribed  by  the
commissioner.
  (ii) Each retail dealer must pay an application fee with the quarterly
return  of  three  hundred  dollars for each retail place of business in
this  state  through  which  it  sells  cigarettes,  CIGARS  or  tobacco
products.
  (iii) Every person who owns or, if the owner is not the operator, then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether  located on the premises of the vending machine owner or, if the
owner is not the operator, then the premises  of  the  operator  or  the
premises of any other person, must pay an application fee with the quar-
terly  return  of  one  hundred  dollars  for  each vending machine. The
department will issue a registration certificate, as prescribed  by  the
commissioner, after receipt of a registration application and the appro-
priate registration fee, prior to the next succeeding January first.
  (b)  Every retail dealer and every person who owns or, if the owner is
not the operator, then any person  who  operates  one  or  more  vending
machines  through  which cigarettes, CIGARS or tobacco products are sold
in this state who commences business after  the  last  day  of  August[,
nineteen hundred ninety,] or who commences selling cigarettes, CIGARS or
tobacco  products at retail through a new or different place of business
in this state after such date,  or  who  commences  selling  cigarettes,
CIGARS  or  tobacco  products  through new or different vending machines
after such date, must file with  the  commissioner  an  application  for
registration,  in  a form prescribed by him or her, at least thirty days
prior to commencing business or commencing sales. Each application  must
be  accompanied  by an application fee of three hundred dollars for each
retail place of business  and  one  hundred  dollars  for  each  vending
machine  to be registered. The department, within ten days after receipt
of an application for registration under this paragraph and  payment  of
the  proper fee for application for registration, will issue a registra-
tion certificate, as prescribed by the  commissioner,  for  each  retail
place  of  business  or  cigarette,  CIGAR  or  tobacco products vending
machine registered.
  S 32. Paragraph (d) of subdivision 2 of section 480-a of the tax  law,
as  amended  by  chapter  760 of the laws of 1992, is amended to read as
follows:
  (d) Except as otherwise provided in this section, all  the  provisions
of article twenty-eight of this chapter relating to the personal liabil-
ity  for  the  tax, administration, collection and determination of tax,
and deposit and disposition of revenue, including section eleven hundred
thirty-eight of this  chapter  relating  to  determination  of  tax  and
section  eleven  hundred forty-five of this chapter (but only paragraphs
one and two of subdivision (a) of such section)  relating  to  penalties
and  interest  for  failure  to file a return or pay tax within the time
required, shall apply to the applications for registration and the  fees
for  filing  such  applications required by this section and the penalty
imposed pursuant to subdivision three of this section, as if such appli-
cations were returns required under section eleven hundred thirty-six of
this chapter and such filing fees, penalties  and  interest  were  taxes
required  to  be paid pursuant to such article twenty-eight, in the same

S. 6259--A                         21                         A. 9059--A

manner and with the same force and effect as if  the  language  of  such
provisions  of  such  article twenty-eight had been incorporated in full
into this article, except to the  extent  that  any  such  provision  is
either  inconsistent with a provision of this section or is not relevant
thereto and with such other modifications as may be necessary  to  adapt
the  language  of  such  provisions  to  the provisions of this section.
[Section] ANY REFERENCE TO A CERTIFICATE OF AUTHORITY SHOULD BE READ  TO
MEAN  A  CERTIFICATE  OF  REGISTRATION  FOR THE PURPOSE OF THIS SECTION.
PARAGRAPHS ONE THROUGH THREE OF SUBDIVISION A AND SUBDIVISIONS B  AND  C
OF  SECTION  eleven  hundred  thirty-four of [such article twenty-eight]
THIS CHAPTER shall not apply to this section AS  WELL  AS  ANY  LANGUAGE
CONTAINED  IN SUCH SECTION REFERRING TO AN OFFICER, DIRECTOR, PARTNER OR
EMPLOYEE OF SUCH PERSON, AND, WHERE SUCH PERSON IS A  LIMITED  LIABILITY
COMPANY,  ALSO  A  MEMBER  OR  MANAGER OF SUCH PERSON, IN THE OFFICER'S,
DIRECTOR'S, PARTNER'S, MEMBER'S, MANAGER'S OR EMPLOYEE'S CAPACITY  AS  A
PERSON  REQUIRED  TO  COLLECT  TAX  ON  BEHALF OF SUCH PERSON OR ANOTHER
PERSON.   Provided, however, that  the  commissioner  [of  taxation  and
finance]  shall refund or credit an application fee paid with respect to
the registration of a vending machine or a retail place of  business  in
this  state through which cigarettes, CIGARS or tobacco products were to
be sold if, prior to the beginning of the calendar year with respect  to
which   such  registration  relates,  the  certificate  of  registration
described in paragraph (a)  of  this  subdivision  is  returned  to  the
department  [of  taxation  and finance], or if such certificate has been
destroyed, the retail dealer or vending machine operator  satisfactorily
accounts to the commissioner for the missing certificate, but such vend-
ing  machine  or  retail place of business may not be used to sell ciga-
rettes, CIGARS or tobacco products in this state  during  such  calendar
year,  unless  it  is  re-registered.  The  provisions of section eleven
hundred thirty-nine of this chapter shall apply to the refund or  credit
authorized  by the preceding sentence and for such purposes, such refund
or credit shall be deemed a refund of tax paid in error provided, howev-
er, no interest shall be allowed or paid on any such refund.
  S 33. Paragraph (b) of subdivision 3 of section 480-a of the tax  law,
as amended by section 125-a of part C of chapter 58 of the laws of 2009,
is amended to read as follows:
  (b) Any person who owns or, if the owner is not the operator, then any
person  who  operates  one  or more vending machines through which ciga-
rettes, CIGARS or tobacco products  are  sold  in  this  state  and  who
violates  the provisions of this section, after due notice and an oppor-
tunity for a hearing, for a first violation is liable for a  civil  fine
not less than seven hundred fifty dollars but not to exceed two thousand
dollars  and  for  a  second  or subsequent violation within three years
following a prior finding of violation be liable for a  civil  fine  not
less than two thousand dollars but not to exceed six thousand dollars.
  S 34. Clause (B) of subparagraph (i) of paragraph (a) of subdivision 1
of  section  481 of the tax law, as amended by chapter 61 of the laws of
1989, is amended to read as follows:
  (B) If a tax on cigarettes, CIGARS or on tobacco products  under  this
article  is not paid when due by any other person, the person liable for
the payment of such tax shall be subject  to  a  penalty  of  fifty  per
centum  of  the  amount  of such tax determined to be due as provided in
this article plus one per centum of such amount for each month or  frac-
tion  thereof during which such failure to pay continues after the expi-
ration of the first month after such tax became due.

S. 6259--A                         22                         A. 9059--A

  S 35. Subparagraph (i) of paragraph (b) of subdivision  1  of  section
481  of  the  tax law, as amended by chapter 604 of the laws of 2008, is
amended to read as follows:
  (i)  In  addition  to  any  other penalty imposed by this article, the
commissioner may (A) impose a penalty of not more than one hundred fifty
dollars for each two hundred cigarettes, or fraction thereof, in  excess
of  one  thousand cigarettes in unstamped or unlawfully stamped packages
in the possession or under the control of any person  or  (B)  impose  a
penalty  of  not  more  than  two hundred dollars for each ten unaffixed
false,  altered  or  counterfeit  cigarette  tax  stamps,  imprints   or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more  than  seventy-five  dollars  for each fifty cigars or one pound of
tobacco, or fraction thereof, in excess of [two hundred] fifty cigars or
five pounds of tobacco in the possession or under  the  control  of  any
person and a penalty of not more than one hundred fifty dollars for each
fifty cigars or pound of tobacco, or fraction thereof, in excess of five
hundred  cigars  or ten pounds of tobacco in the possession or under the
control of any person, with  respect  to  which  the  CIGAR  OR  tobacco
products  tax  has not been paid or assumed by a distributor or CIGAR OR
tobacco products  dealer;  provided,  however,  that  any  such  penalty
imposed  shall  not  exceed  seven  thousand five hundred dollars in the
aggregate. The commissioner may impose a penalty of not more than seven-
ty-five dollars for each fifty cigars or one pound of tobacco, or  frac-
tion  thereof,  in excess of fifty cigars or one pound of tobacco in the
possession or under the control of any CIGAR OR tobacco products  dealer
or  distributor appointed by the commissioner, and a penalty of not more
than one hundred fifty dollars for each fifty cigars or pound of  tobac-
co, or fraction thereof, in excess of [two hundred] fifty cigars or five
pounds  of  tobacco  in  the possession or under the control of any such
dealer or distributor, with  respect  to  which  the  CIGAR  OR  tobacco
products tax has not been paid or assumed by a distributor or a CIGAR OR
tobacco  products  dealer;  provided,  however,  that  any  such penalty
imposed shall not exceed fifteen thousand dollars in the aggregate.
  S 36. Clauses (B) and (C) of subparagraph (ii)  of  paragraph  (b)  of
subdivision  1 of section 481 of the tax law, as added by chapter 262 of
the laws of 2000, are amended to read as follows:
  (B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof, in excess of [two hundred] fifty cigars or five pounds  of  tobacco
knowingly  in  the  possession  or  knowingly  under  the control of any
person, with respect to which the CIGAR OR tobacco products tax has  not
been paid or assumed by a distributor or CIGAR OR tobacco products deal-
er; and
  (II) not less than fifty dollars but not more than two hundred dollars
for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in
excess of [five] ONE hundred cigars or ten pounds of  tobacco  knowingly
in  the  possession  or  knowingly under the control of any person, with
respect to which the CIGAR OR tobacco products tax has not been paid  or
assumed  by a distributor or CIGAR OR tobacco products dealer; provided,
however, that any such penalty  imposed  under  this  clause  shall  not
exceed ten thousand dollars in the aggregate.
  (C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof,  in excess of fifty cigars or one pound of tobacco knowingly in the
possession or knowingly under the control of any person, with respect to

S. 6259--A                         23                         A. 9059--A

which the CIGAR OR tobacco products tax has not been paid or assumed  by
a distributor or CIGAR OR tobacco products dealer; and
  (II) not less than fifty dollars but not more than two hundred dollars
for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in
excess of [two hundred fifty] ONE  HUNDRED  cigars  or  five  pounds  of
tobacco  knowingly  in  the possession or knowingly under the control of
any person, with respect to which the CIGAR OR tobacco products tax  has
not been paid or assumed by a distributor or a CIGAR OR tobacco products
dealer;  provided,  however,  that  any  such penalty imposed under this
clause shall not exceed twenty thousand dollars in the aggregate.
  S 37. Subdivision 2 of section 481 of the tax law, as amended by chap-
ter 61 of the laws of 1989 and paragraph (a) as amended by  chapter  552
of the laws of 2008, is amended to read as follows:
  2.  (a)  The  possession  within  this state of more than four hundred
cigarettes in unstamped or unlawfully stamped  packages,  or  more  than
[two  hundred]  fifty  cigars, or more than five pounds of tobacco other
than roll-your-own tobacco, or more than thirty-six ounces of roll-your-
own tobacco by any person other than an agent  or  distributor,  as  the
case  may  be,  at  any one time shall be presumptive evidence that such
cigarettes, CIGARS or tobacco products are subject to tax as provided by
this article.
  (b) Nothing in this section shall apply to common or contract carriers
or warehousemen  while  engaged  in  lawfully  transporting  or  storing
CIGARS, tobacco products or unstamped packages of cigarettes as merchan-
dise,  nor to any employee of such carrier or warehouseman acting within
the scope of his OR HER employment, nor to public officers or  employees
in  the  performance  of  their  official duties requiring possession or
control of CIGARS, tobacco products or unstamped or  unlawfully  stamped
packages  of  cigarettes,  nor  to  temporary  incidental  possession by
employees or agents of persons lawfully entitled to possession,  nor  to
persons whose possession is for the purpose of aiding police officers in
performing their duties.
  S  38.  The  tax law is amended by adding new section 481-a to read as
follows:
  S 481-A. PENALTIES AND INTEREST FOR RETAIL DEALERS. (A)  (1)  (I)  ANY
PERSON  FAILING  TO  FILE  A RETURN OR TO PAY OR PAY OVER ANY TAX TO THE
COMMISSIONER WITHIN THE TIME REQUIRED BY OR  PURSUANT  TO  THIS  ARTICLE
(DETERMINED  WITH  REGARD TO ANY EXTENSION OF TIME FOR FILING OR PAYING)
SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF TAX DUE IF
SUCH FAILURE IS FOR NOT MORE THAN ONE  MONTH,  WITH  AN  ADDITIONAL  ONE
PERCENT  FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH SUCH
FAILURE CONTINUES,  NOT  EXCEEDING  THIRTY  PERCENT  IN  THE  AGGREGATE.
PROVIDED,  HOWEVER,  IN THE CASE OF A FAILURE TO FILE SUCH RETURN WITHIN
SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF SUCH RETURN BY OR PURSU-
ANT TO THIS ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR
FILING), THE PENALTY IMPOSED BY THIS SUBPARAGRAPH SHALL NOT BE LESS THAN
THE LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF  THE  AMOUNT
REQUIRED  TO  BE  SHOWN  AS  TAX  ON SUCH RETURN. FOR THE PURPOSE OF THE
PRECEDING SENTENCE, THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN
SHALL BE REDUCED BY THE AMOUNT OF ANY PART OF THE TAX WHICH IS  PAID  ON
OR  BEFORE  THE DATE PRESCRIBED FOR PAYMENT OF THE TAX AND BY THE AMOUNT
OF ANY CREDIT AGAINST THE TAX WHICH MAY BE CLAIMED UPON THE  RETURN.  IN
THE  CASE OF A FAILURE TO FILE A RETURN BY A PERSON REQUIRED TO REGISTER
WITH THE COMMISSIONER AS PROVIDED IN SECTION FOUR  HUNDRED  EIGHTY-A  OF
THIS ARTICLE, IN NO EVENT SHALL THE PENALTY FOR FAILURE TO FILE A RETURN
BE LESS THAN ONE HUNDRED FIFTY DOLLARS.

S. 6259--A                         24                         A. 9059--A

  (II)  IF  ANY  AMOUNT  OF  TAX  IS NOT PAID ON OR BEFORE THE LAST DATE
PRESCRIBED IN THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT  AT  THE
RATE  OF  FOURTEEN AND ONE-HALF PERCENT PER ANNUM OR AT THE UNDERPAYMENT
RATE SET BY THE COMMISSIONER PURSUANT  TO  SUBDIVISION  TWENTY-SIXTH  OF
SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS CHAPTER, WHICHEVER IS GREATER,
SHALL BE PAID FOR THE PERIOD FROM SUCH  LAST  DATE  TO  THE  DATE  PAID,
WHETHER  OR  NOT ANY EXTENSION OF TIME FOR PAYMENT WAS GRANTED. INTEREST
UNDER THIS SUBPARAGRAPH SHALL NOT BE PAID IF THE AMOUNT THEREOF IS  LESS
THAN ONE DOLLAR.
  (III)  IF  THE  COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE  OR  SHE  MAY
REMIT ALL OF SUCH PENALTY AND THAT PORTION OF SUCH INTEREST THAT EXCEEDS
THE INTEREST THAT WOULD BE PAYABLE IF SUCH INTEREST WERE COMPUTED AT THE
UNDERPAYMENT  RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER. THE COMMIS-
SIONER MAY PROMULGATE RULES  AND  REGULATIONS  AS  TO  WHAT  CONSTITUTES
REASONABLE CAUSE.
  (IV)  ANY  PERSON REQUIRED BY THIS ARTICLE TO FILE A RETURN, WHO OMITS
FROM THE TOTAL AMOUNT OF CIGAR EXCISE TAX REQUIRED  TO  BE  SHOWN  ON  A
RETURN AN AMOUNT WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT
OF  SUCH  TAXES REQUIRED TO BE SHOWN ON THE RETURN SHALL BE SUBJECT TO A
PENALTY EQUAL TO TEN PERCENT OF THE AMOUNT  OF  SUCH  OMISSION.  IF  THE
COMMISSIONER  DETERMINES  THAT SUCH OMISSION WAS DUE TO REASONABLE CAUSE
AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT ALL OF SUCH PENALTY.
  (V) ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS CIGARS AT RETAIL  AND
WHO  SHALL  WILLFULLY  AND  KNOWINGLY  HAVE  IN SUCH PERSON'S CUSTODY OR
POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGARS ON  WHICH  (A)  THE
PREPAID  TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
CLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS SUCH UNDER
THIS ARTICLE, OR (B) THE  PREPAID  TAX  IMPOSED  BY  SUCH  SECTION  FOUR
HUNDRED  SEVENTY-ONE-H  OF THIS ARTICLE WAS REQUIRED TO HAVE BEEN PASSED
THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN  THE  COST  OF  SUCH
CIGARS  TO  SUCH  PERSON, SHALL BE LIABLE FOR A PENALTY IN THE AMOUNT OF
TWICE THE TAX NOT SO ASSUMED OR PAID, OR INCLUDED.   SUCH PENALTY  SHALL
BE  DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES
IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE  RELATING
THERETO  SHALL  BE  DEEMED  ALSO TO REFER TO THE PENALTY IMPOSED BY THIS
SUBPARAGRAPH. SUCH PENALTY MAY BE DETERMINED AT ANY  TIME  WITHIN  THREE
YEARS  AFTER  SUCH  CIGARS SHALL HAVE COME INTO SUCH PERSON'S CUSTODY OR
POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
GRAPH, SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN  SUCH  PERSON'S
CUSTODY  OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGAR ON WHICH
(A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR  LICENSED  AS
SUCH  UNDER  THIS  ARTICLE,  OR  (B)  SUCH TAX WAS REQUIRED TO HAVE BEEN
PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE  COST  OF
SUCH  CIGARS  TO  SUCH  PERSON,  WHERE  SUCH PERSON HAS KNOWLEDGE OF THE
REQUIREMENT THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED AND WHERE,
TO SUCH PERSON'S KNOWLEDGE, SUCH TAXES HAVE NOT BEEN SO PAID OR  ASSUMED
OR  SO INCLUDED. FOR PURPOSES OF THIS SUBPARAGRAPH, IT SHALL BE PRESUMP-
TIVE EVIDENCE THAT SUCH PERSON SHALL WILLFULLY  AND  KNOWINGLY  HAVE  IN
SUCH  PERSON'S  CUSTODY  OR  POSSESSION  OR  UNDER SUCH PERSON'S CONTROL
CIGARS ON WHICH (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBU-
TOR AUTHORIZED AS SUCH UNDER THIS ARTICLE OR (B) SUCH TAX  WAS  REQUIRED
TO  HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN
THE COST OF SUCH CIGARS  TO  SUCH  PERSON  WHERE  SUCH  PERSON  HAS  NOT
RECEIVED   THE   CERTIFICATION   REQUIRED   BY   SECTION   FOUR  HUNDRED

S. 6259--A                         25                         A. 9059--A

SEVENTY-ONE-K OF THIS ARTICLE AT THE TIME OF DELIVERY OF SUCH CIGARS OR,
IN THOSE CIRCUMSTANCES WHERE THE COMMISSIONER HAS AUTHORIZED THE  DELIV-
ERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE CIGARS, AT THE
TIME PRESCRIBED BY THE COMMISSIONER.
  (2)  IF  THE  FAILURE  TO  PAY OR PAY OVER ANY TAX TO THE COMMISSIONER
WITHIN THE TIME REQUIRED BY THIS ARTICLE IS DUE TO FRAUD, IN LIEU OF THE
PENALTIES AND INTEREST PROVIDED FOR IN SUBPARAGRAPHS  (I)  AND  (II)  OF
PARAGRAPH ONE OF THIS SUBDIVISION, THERE SHALL BE ADDED TO THE TAX (I) A
PENALTY  OF  TWO  TIMES THE AMOUNT OF THE TAX DUE, PLUS (II) INTEREST ON
SUCH UNPAID TAX AT THE RATE OF FOURTEEN AND ONE-HALF PERCENT  PER  ANNUM
OR THE UNDERPAYMENT RATE OF INTEREST SET BY THE COMMISSIONER PURSUANT TO
SUBDIVISION  TWENTY-SIXTH  OF  SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS
CHAPTER, WHICHEVER IS GREATER, FOR THE PERIOD BEGINNING ON THE LAST  DAY
PRESCRIBED BY THIS ARTICLE FOR THE PAYMENT OF SUCH TAX (DETERMINED WITH-
OUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON THE DAY ON
WHICH SUCH TAX IS PAID.
  (3)  (I)  ANY  PERSON REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
UNDER SECTION  FOUR  HUNDRED  EIGHTY-A  OF  THIS  ARTICLE  WHO,  WITHOUT
POSSESSING A VALID CERTIFICATE OF REGISTRATION, SELLS CIGARETTES, CIGARS
AND  TOBACCO PRODUCTS SHALL, IN ADDITION TO ANY OTHER PENALTY IMPOSED BY
THIS CHAPTER, BE SUBJECT TO A PENALTY IN AN AMOUNT  NOT  EXCEEDING  FIVE
HUNDRED  DOLLARS  FOR THE FIRST DAY ON WHICH SUCH SALES OR PURCHASES ARE
MADE, PLUS AN AMOUNT NOT EXCEEDING TWO HUNDRED DOLLARS FOR  EACH  SUBSE-
QUENT  DAY  ON WHICH SUCH SALES OR PURCHASES ARE MADE, NOT TO EXCEED TEN
THOUSAND DOLLARS IN THE AGGREGATE.
  (II) IF THE COMMISSIONER DETERMINES THAT ANY FAILURE OR ACT  DESCRIBED
IN  THIS  PARAGRAPH  WAS  DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL
NEGLECT, HE OR SHE MAY REMIT ALL OR PART OF SUCH PENALTY.
  (4) ANY PERSON REQUIRED BY THIS ARTICLE TO DISPLAY  A  CERTIFICATE  OF
REGISTRATION,  WHO  FAILS  TO  DISPLAY  SUCH  CERTIFICATE  IN THE MANNER
REQUIRED BY THIS ARTICLE OR  ANY  RULE  OR  REGULATION  ADOPTED  BY  THE
COMMISSIONER  IN  CONNECTION WITH SUCH REQUIREMENT SHALL, IN ADDITION TO
ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, BE SUBJECT TO  A  PENALTY  OF
FIFTY  DOLLARS. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE WAS DUE
TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY  REMIT
ALL OR PART OF SUCH PENALTY.
  (5)  THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SUBDIVISION SHALL
BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES  FROM  THIS
ARTICLE.  SUCH  PENALTIES  AND  INTEREST  MAY  BE  DETERMINED, ASSESSED,
COLLECTED AND ENFORCED IN THE SAME MANNER AS THE  TAX  IMPOSED  BY  THIS
ARTICLE.  INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
  (B)  CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
OF THIS CHAPTER.
  (C) ANY PERSON FAILING TO FILE A RETURN OR TO PAY ANY TAX REQUIRED  TO
BE  PREPAID  TO  THE COMMISSIONER WITH RESPECT TO CIGARS PURSUANT TO THE
PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE  WITHIN
THE TIME REQUIRED BY THIS ARTICLE SHALL, IN ADDITION TO ANY OTHER PENAL-
TY PROVIDED IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A
PENALTY EQUAL TO THE AMOUNT OF TAX REQUIRED TO BE SO PREPAID PURSUANT TO
THE  PROVISIONS OF SUCH SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
CLE.  IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE TO FILE A  RETURN
OR  TO PAY ANY SUCH TAX WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILL-
FUL NEGLECT, HE OR SHE MAY REMIT ALL OR ANY PART OF SUCH PENALTY.
  (D) THE CERTIFICATE OF THE COMMISSIONER TO THE EFFECT THAT A  TAX  HAS
NOT  BEEN  PAID, THAT A RETURN, BOND OR REGISTRATION CERTIFICATE HAS NOT

S. 6259--A                         26                         A. 9059--A

BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED  PURSUANT  TO  THE
PROVISIONS OF THIS ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THEREOF.
  (E) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO  FAILS  TO  MAKE  OR  MAINTAIN OR MAKE AVAILABLE TO THE COMMISSIONER
THESE RECORDS IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS
FOR THE FIRST PERIOD OR PART THEREOF FOR WHICH THE  FAILURE  OCCURS  AND
NOT  TO  EXCEED FIVE THOUSAND DOLLARS FOR EACH ADDITIONAL PERIOD OR PART
THEREOF FOR WHICH THE FAILURE OCCURS. THIS PENALTY IS IN ADDITION TO ANY
OTHER PENALTY PROVIDED FOR IN THIS ARTICLE BUT MAY NOT  BE  IMPOSED  AND
COLLECTED MORE THAN ONCE FOR FAILURES FOR THE SAME PERIOD OR PART THERE-
OF. IF THE COMMISSIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR
MAKE  AVAILABLE  RECORDS  IN  ANY  PERIOD WAS ENTIRELY DUE TO REASONABLE
CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENAL-
TY IMPOSED FOR THAT PERIOD. THESE PENALTIES WILL BE PAID AND DISPOSED OF
IN THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE  PENALTIES
WILL  BE  DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME
MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND  ALL  THE  PROVISIONS  OF
THIS  ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENAL-
TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
THIS SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE  OR
MAINTAIN  THE  REQUIRED  RECORDS  WHEN THE RECORDS MADE OR MAINTAINED BY
THAT PERSON FOR A PERIOD MAKE IT VIRTUALLY IMPOSSIBLE  TO  VERIFY  SALES
RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
  (F)  FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT  WILL  BE  SUBJECT  TO  A
PENALTY  OF  ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE  IN  ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW.
  (G)  AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS, REPORTS,
STATEMENTS OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT  TAX
BE  EVADED,  FOR  A  FEE  OR OTHER COMPENSATION OR AS AN INCIDENT TO THE
PERFORMANCE OF OTHER SERVICES FOR WHICH  THAT  PERSON  RECEIVES  COMPEN-
SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
RATION  OR  PRESENTATION  UNDER  THIS ARTICLE, OR IN CONNECTION WITH ANY
MATTER ARISING UNDER THIS ARTICLE, OF ANY RETURN,  REPORT,  DECLARATION,
STATEMENT  OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY MATE-
RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
AUTHORIZED OR REQUIRED TO  PRESENT  THAT  RETURN,  REPORT,  DECLARATION,
STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
SAND DOLLARS.
  (H) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
ANY  PORTION  OR  ALL  OF  THE RECORDS HE OR SHE IS REQUIRED TO MAKE AND
MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH PERIOD OR PART
THEREOF FOR WHICH THESE ELECTRONIC RECORDS ARE NOT  PRESENTED  AND  MADE
AVAILABLE  AND ACCESSIBLE UPON REQUEST, NOTWITHSTANDING THAT THE RECORDS
MAY ALSO BE MAINTAINED AND AVAILABLE IN HARD COPY FORMAT.  THIS  PENALTY
IS  IN  ADDITION  TO ANY OTHER PENALTY PROVIDED FOR IN THIS ARTICLE, BUT
MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR A  FAILURE  FOR  THE
SAME  PERIOD OR PART THEREOF.  PROVIDED, HOWEVER, NOTHING IN THIS SUBDI-
VISION WILL PREVENT THE  SEPARATE  IMPOSITION,  IF  APPLICABLE,  OF  ANY
PENALTY  IMPOSED BY THIS SECTION FOR THE SAME PERIOD OR PART THEREOF. IF
THE COMMISSIONER DETERMINES THAT THE FAILURE TO PRESENT AND  MAKE  ELEC-
TRONICALLY  MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A PERIOD WAS

S. 6259--A                         27                         A. 9059--A

ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT PERIOD.  THESE  PENALTIES
WILL  BE  PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
THIS  ARTICLE.  THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,
PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
AND ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX  WILL  BE  DEEMED
ALSO  TO  APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION. FOR PURPOSES
OF THE PENALTY IMPOSED BY THIS SUBDIVISION, A  FAILURE  TO  PRESENT  AND
MAKE  AVAILABLE  AND ACCESSIBLE A RECORD MAINTAINED IN ELECTRONIC FORMAT
INCLUDES NOT ONLY THE DENIAL OF ACCESS TO  THE  REQUESTED  RECORDS  THAT
WERE  MAINTAINED  ELECTRONICALLY, BUT ALSO THE FAILURE TO MAKE AVAILABLE
TO THE COMMISSIONER THE INFORMATION, KNOWLEDGE, OR  MEANS  NECESSARY  TO
ACCESS  AND  OTHERWISE  USE THE ELECTRONICALLY MAINTAINED RECORDS IN THE
INSPECTION AND EXAMINATION OF THESE RECORDS.
  S 39. Subdivision (h) of section 1111 of the tax law,  as  amended  by
section  1  of part Q-3 of chapter 62 of the laws of 2003, is amended to
read as follows:
  (h) Receipts subject to tax under subdivision (a)  of  section  eleven
hundred  five on retail sales of cigarettes, CIGARS and tobacco products
and consideration given or contracted to be given for cigarettes, CIGARS
and tobacco products the uses of which are subject to tax under  section
eleven  hundred  ten shall be deemed to include any tax imposed on ciga-
rettes, CIGARS and tobacco products by article twenty  of  this  chapter
and  any  tax  imposed  on  cigarettes AND CIGARS by chapter thirteen of
title eleven of the administrative code of the city of New York.
  S 40. Subdivision (e) of section 1814 of the tax law,  as  amended  by
section  28  of subpart I of part V-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
  (e) Nothing in this section shall apply to common or contract carriers
or warehousemen  while  engaged  in  lawfully  transporting  or  storing
unstamped  packages of cigarettes as merchandise, or lawfully transport-
ing or storing CIGARS OR tobacco products, nor to any employee  of  such
carrier  or  warehouseman  acting within the scope of his OR HER employ-
ment, nor to public officers or employees in the  performance  of  their
official  duties  requiring possession or control of unstamped or unlaw-
fully stamped packages of cigarettes or possession or control of  CIGARS
OR tobacco products, nor to temporary incidental possession by employees
or  agents  of  persons  lawfully entitled to possession, nor to persons
whose possession is  for  the  purpose  of  aiding  police  officers  in
performing their duties.
  S 41. Paragraphs 3 and 4 of subdivision (h) of section 1814 of the tax
law,  as amended by section 28 of subpart I of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly  transport  or
have in his OR HER custody, possession or under his OR HER control twen-
ty-five  hundred  or more cigars or fifty or more pounds of tobacco upon
which the taxes imposed by article twenty of this chapter have not  been
assumed  or  paid  by  a distributor appointed by the commissioner under
article twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter shall  be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E felo-
ny  for  any  subsequent  violation  of  this section, regardless of the
amount of CIGARS OR tobacco products involved in such violation.

S. 6259--A                         28                         A. 9059--A

  (4) For purposes of this  subdivision,  such  person  shall  knowingly
transport  or have in his OR HER custody, possession or under his OR HER
control tobacco PRODUCTS or cigars on which such  taxes  have  not  been
assumed  or  paid  by  a distributor appointed by the commissioner where
such  person  has  knowledge of the requirement of the tax on CIGARS AND
tobacco products and, where to his OR HER knowledge, such taxes have not
been assumed or paid on such CIGARS OR tobacco products by a distributor
appointed by the commissioner [of taxation and finance].
  S 42. Section 1814-a of the tax law, as added by  chapter  61  of  the
laws of 1989, is amended to read as follows:
  S  1814-a. Person not appointed as a [tobacco products] distributor OF
CIGARS OR TOBACCO PRODUCTS. (a) Any person who, while not appointed as a
distributor of CIGARS OR tobacco products pursuant to the provisions  of
article  twenty  of  this chapter, imports or causes to be imported into
the state more than fifty cigars or more than one pound of tobacco,  for
sale  within the state, or produces, manufactures or compounds CIGARS OR
tobacco products within the state  shall  be  guilty  of  a  misdemeanor
punishable by a fine of not more than five thousand dollars or by a term
of  imprisonment  not  to  exceed thirty days. If, within any ninety day
period, one thousand or more cigars or five hundred pounds  or  more  of
tobacco  are  imported  or caused to be imported into the state for sale
within the state or are produced, manufactured or compounded within  the
state  by  any  person while not appointed as a distributor of CIGARS OR
tobacco products, such person shall be guilty of a misdemeanor. Provided
further, that any person who has twice been convicted under this section
shall be guilty of a class E felony for any subsequent violation of this
section, regardless of the amount of CIGARS OR tobacco products involved
in such violation.
  (b) For purposes of this section,  the  possession  or  transportation
within  this state by any person, other than a CIGAR OR tobacco products
distributor appointed by the commissioner [of taxation and finance],  at
any  one time of seven hundred fifty or more cigars or fifteen pounds or
more of tobacco shall be presumptive evidence that such tobacco products
are possessed or transported for the purpose of sale and are subject  to
the  tax  imposed  by  section  four hundred seventy-one-b, SECTION FOUR
HUNDRED SEVENTY-ONE-F OR SECTION  FOUR  HUNDRED  SEVENTY-ONE-H  of  this
chapter.   With  respect  to  such  possession  or  transportation,  any
provisions of article twenty of this chapter providing for a time period
during which the tax imposed by such  article  may  be  paid  shall  not
apply.
  S  43.  The  section heading, subdivisions (a), (b) and (c) of section
1846-a of the tax law, as amended by chapter 556 of the  laws  of  2011,
are amended to read as follows:
  Forfeiture  action  with  respect  to CIGARS AND tobacco products. (a)
Whenever a police officer designated in section  1.20  of  the  criminal
procedure  law  or  a  peace  officer  designated in subdivision four of
section 2.10 of such law, acting pursuant to his OR HER special  duties,
shall  discover any tobacco products in excess of five hundred cigars or
ten pounds of tobacco which are being imported for  sale  in  the  state
where  the  person importing or causing such CIGARS AND tobacco products
to be imported has not been  appointed  as  a  distributor  pursuant  to
section four hundred seventy-two of this chapter, such police officer or
peace  officer is hereby authorized and empowered forthwith to seize and
take possession of such CIGARS AND tobacco  products.  Such  CIGARS  AND
tobacco  products  seized  by a police officer or peace officer shall be
turned over to the commissioner. Such seized CIGARS AND tobacco products

S. 6259--A                         29                         A. 9059--A

shall be forfeited  to  the  state.  All  CIGARS  AND  tobacco  products
forfeited  to  the  state shall be destroyed or used for law enforcement
purposes, except that CIGARS OR tobacco products that  violate,  or  are
suspected  of violating, federal trademark laws or import laws shall not
be used for law enforcement purposes. If the commissioner determines the
CIGARS OR tobacco products may not be used for law enforcement purposes,
the commissioner must, within a reasonable time thereafter, upon  publi-
cation  in  the state registry of a notice to such effect before the day
of destruction, destroy such forfeited CIGARS OR tobacco  products.  The
commissioner  may,  prior  to  any  destruction  of  CIGARS  OR  tobacco
products, permit the true holder of the trademark rights in  the  CIGARS
OR  tobacco  products  to  inspect  such  forfeited products in order to
assist in any investigation regarding such CIGARS OR tobacco products.
  (b) In the alternative, the commissioner, on reasonable notice by mail
or otherwise, may permit the person from whom  said  CIGARS  OR  tobacco
products  were  seized  to redeem the said CIGARS OR tobacco products by
the payment of the tax due, plus a penalty of fifty per centum  thereof,
plus interest on the amount of tax due for each month or fraction there-
of after such tax became due (determined without regard to any extension
of  time for filing or paying) at the rate applicable under subparagraph
(ii) of paragraph (a) of subdivision one of section four hundred  eight-
y-one  of  this chapter and the costs incurred in such proceeding, which
total payment shall not be less than five  dollars;  provided,  however,
that  such seizure and sale or redemption shall not be deemed to relieve
any person from fine or imprisonment provided for in  this  article  for
violation of any provision of article twenty of this chapter.
  (c)  In the alternative, the commissioner may dispose of any CIGARS OR
tobacco products seized pursuant to  this  section,  except  those  that
violate,  or  are  suspected  of  violating, federal trademark or import
laws, by transferring them to the department of corrections and communi-
ty supervision for sale to or use by inmates in such institutions.
  S 44. The section heading of section 1847 of the tax law,  as  amended
by chapter 61 of the laws of 1989, is amended to read as follows:
  Seizure  and  forfeiture  of vehicles or other means of transportation
used to transport or for deposit or concealment of cigarettes or used to
import CIGARS OR tobacco products.
  S 45. Subdivision (b) of section 1847 of the  tax  law,  as  added  by
chapter 61 of the laws of 1989, is amended to read as follows:
  (b)  Any  peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to  his  OR  HER  special
duties, or any police officer designated in section 1.20 of the criminal
procedure  law  may  seize  any vehicle or other means of transportation
used to import CIGARS OR tobacco products  in  excess  of  five  hundred
cigars  or  ten pounds of tobacco for sale where the person importing or
causing such CIGARS OR tobacco products to  be  imported  has  not  been
appointed  a distributor pursuant to section four hundred seventy-two of
this chapter, other than a vehicle or other means of transportation used
by any person as a common carrier in transaction  of  business  as  such
common  carrier, and such vehicle or other means of transportation shall
be subject to forfeiture as hereinafter in this section provided.
  S 46. This act shall take effect July 1, 2012; provided, however, that
section eleven of this act shall take effect immediately.

                                 PART D

S. 6259--A                         30                         A. 9059--A

  Section 1. Section 19 of part W-1 of chapter 109 of the laws of  2006,
amending  the  tax  law relating to providing exemptions, reimbursements
and credits from various taxes for certain alternative fuels, as amended
by section 2 of part L of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2012] 2017  and  such
repeal  shall  apply  in  accordance  with  the  applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply  to
sales  made,  fuel  compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven  through  eleven  of
this  act,  in  accordance  with  applicable  transitional provisions of
sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
commissioner  of  taxation  and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend  any  rules
or  regulations  and  to  take  any  steps  necessary  to  implement the
provisions of this act; provided further that sections fourteen  through
sixteen  of  this  act  shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART E

  Section 1. Subdivision 14 of section 282 of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  14.  "Diesel  motor  fuel"  shall mean No. 1 Diesel fuel, No. 2 Diesel
fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
late and also motor fuel suitable for use in the operation of an  engine
of  the diesel type, excluding, however, any product specifically desig-
nated "No. 4 Diesel fuel" and not suitable as a fuel used in the  opera-
tion of a motor vehicle engine.
  S  2.  Paragraph (b) of subdivision 3 of section 282-a of the tax law,
as amended by section 5 of part K of chapter 61 of the laws of 2011,  is
amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of  this  section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed  other  than
on  the  public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel  motor
fuel which involves a delivery at a filling station or into a repository
which  is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for  delivery
at  a  farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale  to  the
consumer consisting of not more than twenty gallons of water-white kero-
sene  to be used and consumed exclusively for heating purposes; or (iii)
the sale to or delivery at a filling station or other retail  vendor  of
water-white  kerosene  provided  such  filling  station  or other retail
vendor only sells such  water-white  kerosene  exclusively  for  heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet  fuel  to an airline for use in its airplanes or a use of kero-
jet fuel by an airline in its airplanes; or (v) a sale of kero-jet  fuel
by  a registered distributor of Diesel motor fuel to a fixed base opera-

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tor registered under this article as a distributor of kero-jet fuel only
where such fixed base operator is engaged solely in making  or  offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel
tank  of  an  airplane  for the purpose of operating such airplane; [or]
(vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
registered under this article as a distributor  of  kero-jet  fuel  only
where  such fuel is delivered directly into the fuel tank of an airplane
for use in the operation of such airplane; OR (VII) THE SALE  OF  PREVI-
OUSLY  UNTAXED  QUALIFIED  BIODIESEL  TO  A PERSON REGISTERED UNDER THIS
ARTICLE AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN  (A)  A  RETAIL
SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
ERY  AT  A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED WITH A
HOSE OR OTHER  APPARATUS  BY  WHICH  SUCH  QUALIFIED  BIODIESEL  CAN  BE
DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
  S  3.  Paragraph 5 of subdivision (a) of section 301-b of the tax law,
as added by chapter 190 of the laws of  1990,  is  amended  to  read  as
follows:
  (5)  [Crude  oil  and  liquefied]  LIQUIFIED  petroleum gases, such as
butane, ethane or propane.
  S 4. Subdivision (e) of section 301-b of the tax law,  as  amended  by
section  21  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (e) Sales of QUALIFIED BIODIESEL, non-highway diesel  motor  fuel  and
residual  petroleum  product  to registered distributors of diesel motor
fuel and registered residual petroleum product businesses.
  (1) [Non-highway] QUALIFIED BIODIESEL  AND  NON-HIGHWAY  Diesel  motor
fuel  sold by a person registered under article twelve-A of this chapter
as a distributor of diesel motor fuel to a person registered under  such
article  twelve-A  as a distributor of diesel motor fuel where such sale
is not a retail sale or a sale that involves a  delivery  at  a  filling
station  or into a repository equipped with a hose or other apparatus by
which such QUALIFIED BIODIESEL OR non-highway Diesel motor fuel  can  be
dispensed into the fuel tank of a motor vehicle.
  (2)  Residual petroleum product sold by a person registered under this
article as a residual petroleum product business to a person  registered
under  this  article as a residual petroleum product business where such
sale is not a retail sale. Provided, however, that the commissioner  may
require  such documentary proof to qualify for any exemption provided in
this section as the commissioner deems appropriate, including the expan-
sion of any certifications required  pursuant  to  section  two  hundred
eighty-five-a  or two hundred eighty-five-b of this chapter to cover the
taxes imposed by this article.
  (3) "QUALIFIED BIODIESEL" MEANS SUCH TERM AS  DEFINED  IN  SUBDIVISION
TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended  by  section  39 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
on  account  of  the  taxes  imposed by this article and pursuant to the
authority of article twenty-nine of this chapter, a tax upon the sale or
use of diesel motor fuel in this state. The tax shall be computed  based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the

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collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously
untaxed  non-highway  Diesel  motor  fuel  to  a  person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped with a hose or other  apparatus  by  which  such  fuel  can  be
dispensed  into  the fuel tank of a motor vehicle, [or] (ii) the sale to
or delivery at a filling station or other retail vendor  of  water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of  no  more  than  twenty gallons or to the sale of CNG or hydrogen; OR
(III) THE SALE OF PREVIOUSLY UNTAXED QUALIFIED  BIODIESEL  TO  A  PERSON
REGISTERED  UNDER  ARTICLE  TWELVE-A OF THIS CHAPTER AS A DISTRIBUTOR OF
DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR  (B)  A
SALE  TO  SUCH  PERSON WHICH INVOLVES A DELIVERY AT A FILLING STATION OR
INTO A REPOSITORY WHICH IS EQUIPPED WITH A HOSE OR  OTHER  APPARATUS  BY
WHICH  SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF A
MOTOR VEHICLE. "QUALIFIED BIODIESEL"  MEANS  SUCH  TERM  AS  DEFINED  IN
SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
TER.
  S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended  by section 39-a of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
on  account  of  the  taxes  imposed by this article and pursuant to the
authority of article twenty-nine of this chapter, a tax upon the sale or
use of diesel motor fuel in this state. The tax shall be computed  based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply to  (i)  the  sale  of  [previously
untaxed]  non-highway  Diesel  motor  fuel  to  a person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped with a hose or other  apparatus  by  which  such  fuel  can  be
dispensed  into  the fuel tank of a motor vehicle, [or] (ii) the sale to
or delivery at a filling station or other retail vendor  of  water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of  no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY UNTAXED
QUALIFIED BIODIESEL TO A PERSON REGISTERED  UNDER  ARTICLE  TWELVE-A  OF
THIS  CHAPTER  AS  A  DISTRIBUTOR  OF DIESEL MOTOR FUEL OTHER THAN (A) A
RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
DELIVERY AT A FILLING STATION OR INTO A  REPOSITORY  WHICH  IS  EQUIPPED
WITH  A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.  "QUALIFIED  BIODIESEL"
MEANS  SUCH  TERM  AS DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO
HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S 7. This act shall take effect June 1, 2012; provided, however,  that
the  amendments to paragraph 2 of subdivision (a) of section 1102 of the
tax law made by section five of this act shall be subject to the expira-

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tion and reversion of such paragraph pursuant to section 19 of  part  W1
of  chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section six of  this  act  shall  take  effect;  provided,
further,  that  sections  five  and six of this act shall apply to sales
made and uses occurring on and after such effective date  in  accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

                                 PART F

  Section  1.  Subparagraph  (B)  of  paragraph  4 of subdivision (a) of
section 1134 of the tax law, as amended by chapter  2  of  the  laws  of
1995, is amended to read as follows:
  (B)  Where  a person files a certificate of registration for a certif-
icate of authority under this subdivision and in considering such appli-
cation the commissioner ascertains that (i) any tax imposed  under  this
chapter  or  any related statute, as defined in section eighteen hundred
of this chapter, has been finally determined to be due from such  person
and  has not been paid in full, (ii) [a] ANY tax [due under this article
or any law, ordinance or resolution enacted pursuant to the authority of
article twenty-nine] IMPOSED UNDER THIS CHAPTER OR ANY RELATED  STATUTE,
AS DEFINED IN SECTION EIGHTEEN HUNDRED of this chapter, has been finally
determined  to  be due from an officer, director, partner or employee of
such person, and, where such person is a limited liability company, also
a member or manager of such person, in the officer's, director's,  part-
ner's,  member's,  manager's or employee's capacity as a person required
to collect tax on behalf of such person or another person  and  has  not
been  paid, (iii) such person has been convicted of a crime provided for
in this chapter within one year from the date on which such  certificate
of registration is filed, (iv) an officer, director, partner or employee
of  such  person, and, where such person is a limited liability company,
also a member or manager of such person, which officer, director,  part-
ner,  member, manager or employee is a person required to collect tax on
behalf of such person filing a certificate of registration  has  in  the
officer's,  director's,  partner's,  member's,  manager's  or employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within one year from the date on which such certificate of  registration
is filed, (v) a shareholder owning more than fifty percent of the number
of  shares  of stock of such person (where such person is a corporation)
entitling the holder thereof to vote for the election  of  directors  or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any  tax imposed under this chapter or any related statute as defined in
section eighteen hundred of this chapter was finally  determined  to  be
due  and  where  such tax has not been paid in full, or at the time such
other person was convicted of a crime provided for in this chapter with-
in one year from the date on which such certificate of  registration  is
filed, or (vi) a certificate of authority issued to such person has been
revoked  or  suspended  pursuant  to  subparagraph (A) of this paragraph
within one year from the date on which such certificate of  registration
is filed, the commissioner may refuse to issue a certificate of authori-
ty.
  S 2. Subdivision (g) of section 1146 of the tax law, as added by chap-
ter 577 of the laws of 1997, is amended to read as follows:

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  (g)  (1)  Notwithstanding  the  provisions  of subdivision (a) of this
section, if the  commissioner  determines  that  a  person  required  to
collect  tax is liable for any tax, penalty or interest under this arti-
cle or is liable for a penalty under subdivision (e) of  section  eleven
hundred  forty-five  of  this  article with respect to any failure, upon
request in writing of such person, the commissioner  shall  disclose  in
writing  to  such person [(1)] (I) the name of any other person required
to collect tax or any other person liable for such  penalty  under  such
subdivision  (e)  whom  the commissioner has determined to be liable for
the same tax, penalty or interest or for such penalty  with  respect  to
such  failure,  and [(2)] (II) whether the commissioner has attempted to
collect such tax, penalty or interest or such penalty  from  such  other
person, the general nature of such collection activities, and the amount
collected.
  (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, FOR
THE PURPOSES OF SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION  ELEVEN  HUNDRED  THIRTY-FOUR  OF THIS PART, IF THE COMMISSIONER
DETERMINES THAT ANY TAX IMPOSED UNDER THIS CHAPTER OR ANY RELATED  STAT-
UTE,  AS  DEFINED  IN SECTION EIGHTEEN HUNDRED OF THIS CHAPTER, HAS BEEN
FINALLY DETERMINED TO BE DUE FROM A PERSON REQUIRED TO COLLECT  TAX  AND
HAS  NOT  BEEN  PAID,  UPON  WRITTEN REQUEST OF THE PERSON WHO FILED THE
CERTIFICATE OF REGISTRATION FOR A  CERTIFICATE  OF  AUTHORITY  THAT  WAS
REFUSED,  THE  COMMISSIONER  MAY  DISCLOSE  TO  SUCH PERSON THE NAME AND
AMOUNT OF TAX DUE OF THE PERSON OR PERSONS REQUIRED TO COLLECT TAX WHOSE
TAX LIABILITY OR LIABILITIES WERE GROUNDS FOR THE REFUSAL TO  ISSUE  THE
CERTIFICATE OF AUTHORITY.
  S 3. This act shall take effect immediately.

                                 PART G

  Section  1.  Paragraph  10 of subsection (g) of section 658 of the tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the  admin-
istrative code of the city of New York is REPEALED.
  S  3.  Paragraph  5 of subsection (u) of section 685 of the tax law is
REPEALED.
  S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York is REPEALED.
  S 5. Section 23 of part U of chapter 61 of the laws of 2011,  amending
the  real  property tax law, the general municipal law, the public offi-
cers law, the tax law, the abandoned property law, the state finance law
and the administrative code of the city of New York, relating to  estab-
lishing  standards  for  electronic  real  property  tax administration,
allowing the department of taxation and finance to use electronic commu-
nication means to furnish tax notices  and  other  documents,  mandatory
electronic  filing of tax documents, debit cards issued for tax refunds,
improving sales tax compliance and repealing certain provisions  of  the
tax  law  and  the  administrative code of the city of New York relating
thereto, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a) the amendments to section 29 of the tax law made by section  thir-
teen  of  this  act shall apply to tax documents filed or required to be
filed on or after the sixtieth day  after  which  this  act  shall  have
become  a  law  [and  shall  expire  and be deemed repealed December 31,
2012], provided however that the amendments to paragraph 4  of  subdivi-
sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)

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of  section  29 of the tax law made by section thirteen of this act with
regard to individual taxpayers shall take effect September 15, 2011  but
only  if  the  commissioner  of taxation and finance has reported in the
report  required  by section seventeen-b of this act that the percentage
of individual taxpayers electronically  filing  their  2010  income  tax
returns is less than eighty-five percent; provided that the commissioner
of  taxation  and  finance  shall  notify  the legislative bill drafting
commission of the date of the issuance of such report in order that  the
commission  may  maintain  an accurate and timely effective data base of
the official text of the laws of the state of New York in furtherance of
effectuating the provisions of section 44 of  the  legislative  law  and
section 70-b of the public officers law;
  (b)  sections  fourteen,  fifteen,  sixteen  and seventeen of this act
shall take effect September 15, 2011 but only  if  the  commissioner  of
taxation  and  finance  has  reported  in the report required by section
seventeen-b of this act that  the  percentage  of  individual  taxpayers
electronically  filing their 2010 income tax returns is less than eight-
y-five percent;
  (c) sections fourteen-a and fifteen-a of this act  shall  take  effect
September  15,  2011 and expire and be deemed repealed December 31, 2012
but shall take effect only if the commissioner of taxation  and  finance
has  reported  in the report required by section seventeen-b of this act
that the percentage of individual taxpayers electronically filing  their
2010 income tax returns is eighty-five percent or greater; AND
  (d)  sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
act shall take effect January 1, 2013 but only if  the  commissioner  of
taxation  and  finance  has  reported  in the report required by section
seventeen-b of this act that  the  percentage  of  individual  taxpayers
electronically  filing their 2010 income tax returns is less than eight-
y-five percent[; and
  (e) sections twenty-one and twenty-one-a of this act shall expire  and
be deemed repealed December 31, 2012].
  S  6.  Paragraph  2  of subsection (b) of section 29 of the tax law as
added by section 13 of part U of chapter 61 of  the  laws  of  2011,  is
amended to read as follows:
  (2)  If  a  tax  return  preparer prepared more than five original tax
documents during any calendar year beginning on or after January  first,
two  thousand  eleven,  and  if in any succeeding calendar year that tax
return preparer prepares one or more authorized [returns] TAX  DOCUMENTS
using tax software, then, for such succeeding calendar year and for each
subsequent  calendar  year  thereafter,  all  authorized  tax  documents
prepared by that tax return preparer must be  filed  electronically,  in
accordance with instructions prescribed by the commissioner.
  S  7.  This act shall take effect immediately, provided, however, that
the amendments to paragraph 2 of subsection (b) of section 29 of the tax
law made by section six of this act shall be deemed to have been in full
force and effect on the same date and in the same manner as  section  13
of part U of chapter 61 of the laws of 2011, as amended, took effect.

                                 PART H

  Section  1.  Paragraphs  2 and 3 of subsection (g-1) of section 606 of
the tax law, paragraph 2 as amended by chapter 378 of the laws of  2005,
subparagraph (B) of paragraph 2 as amended by chapter 251 of the laws of
2006  and paragraph 3 as amended by chapter 128 of the laws of 2007, are
amended to read as follows:

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  (2) Qualified solar energy system equipment expenditures. (A) The term
"qualified solar energy system equipment  expenditures"  means  expendi-
tures for:
  (I)  the  purchase of solar energy system equipment which is installed
in connection with residential property which is [(i)]  (I)  located  in
this  state  and [(ii) which is] (II) used by the taxpayer as his or her
principal residence at the time the solar  energy  system  equipment  is
placed in service;
  (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
TIAL  PROPERTY WHICH IS: (I) LOCATED IN THIS STATE; AND (II) USED BY THE
TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR  ENERGY
SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
  (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHERE THE POWER PURCHASED IS GENERATED BY  SOLAR  ENERGY
SYSTEM  EQUIPMENT  OWNED  BY  A  PERSON  OTHER  THAN THE TAXPAYER AND IS
INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS: (I)  LOCATED
IN  THIS  STATE;  AND  (II) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL
RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM IS PLACED IN SERVICE.
  (B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original  installation,  architectural  and  engineering  services,  and
designs  and  plans directly related to the construction or installation
of the solar energy system equipment.
  (C) Such qualified expenditures shall not include  interest  or  other
finance charges.
  (D)   SUCH   QUALIFIED  SOLAR  ENERGY  SYSTEM  EQUIPMENT  EXPENDITURES
DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS  PARAGRAPH
SHALL  INCLUDE  AN  AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE
YEAR UNDER SUCH AGREEMENT.
  (E) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBDIVISION, THE  PERCENTAGE
TO BE USED TO CALCULATE THE AMOUNT OF CREDIT ALLOWED FOR QUALIFIED SOLAR
ENERGY SYSTEM EQUIPMENT EXPENDITURES DESCRIBED IN CLAUSES (II) AND (III)
OF  SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE EQUAL TO TWELVE AND ONE-
HALF PERCENT.
  (3) Solar energy system  equipment.  The  term  "solar  energy  system
equipment"  shall  mean  an  arrangement  or  combination  of components
utilizing solar radiation, which, when installed in a residence, produc-
es energy designed to provide heating, cooling, hot water or electricity
for use in such residence. Such  arrangement  or  components  shall  not
include  equipment  connected to solar energy system equipment that is a
component of part or parts of a non-solar energy system  or  which  uses
any  sort  of  recreational  facility  or equipment as a storage medium.
Solar energy system equipment that generates electricity for  use  in  a
residence  must  conform to applicable requirements set forth in section
sixty-six-j of the public service law. Provided,  however,  where  solar
energy  system  equipment  is  purchased  and installed by a condominium
management  association  or  a  cooperative  housing  corporation,   for
purposes   of   this   subsection   only,  the  term  ["ten  kilowatts"]
"TWENTY-FIVE KILOWATTS" in such section sixty-six-j  shall  be  read  as
"fifty kilowatts."
  S  2.  Subdivision  (ee)  of  section 1115 of the tax law, as added by
chapter 306 of the laws of 2005, is amended to read as follows:
  (ee) Receipts from the  retail  sale  of  [residential]  solar  energy
systems equipment and of the service of installing such systems shall be

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exempt  from  tax  under this article. For the purposes of this subdivi-
sion, "[residential] solar  energy  systems  equipment"  shall  mean  an
arrangement or combination of components [installed in a residence] that
utilizes  solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity IN  A  BUILDING  OR  A  STRUCTURE.
Such  arrangement  or components shall not [include] EXCEED AN INSTALLED
CAPACITY RATING OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT  THEREOF  AND
SHALL NOT INCLUDE equipment that is part of a non-solar energy system or
[which  uses any sort of recreational facility or equipment as a storage
medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 3 of part GG of chapter 57 of the laws  of  2010,  is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the
corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the [residential] solar energy systems equipment
exemption provided for in subdivision (ee) and the clothing and footwear
exemption provided for in paragraph thirty of subdivision (a) of section
eleven hundred fifteen of this chapter,  unless  such  city,  county  or
school  district  elects otherwise as to either such [residential] solar
energy  systems  equipment  exemption  or  such  clothing  and  footwear
exemption.
  S 4. Paragraph 1 of subdivision (n) of section 1210 of the tax law, as
added by chapter 306 of the laws of 2005, is amended to read as follows:
  (1)  Any  city having a population of one million or more in which the
taxes imposed by section eleven hundred seven of  this  chapter  are  in
effect,  acting through its local legislative body, is hereby authorized
and empowered to elect to provide the same exemptions from such taxes as

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the [residential] solar energy systems equipment  exemption  from  state
sales  and  compensating  use  taxes  described  in  subdivision (ee) of
section eleven hundred fifteen of this chapter by enacting a  resolution
in  the  form set forth in paragraph two of this subdivision; whereupon,
upon compliance with the provisions of subdivisions (d) and (e) of  this
section,  such  enactment  of  such  resolution shall be deemed to be an
amendment to such section eleven hundred seven and such  section  eleven
hundred  seven shall be deemed to incorporate such exemptions as if they
had been duly enacted by the  state  legislature  and  approved  by  the
governor.
  S 5. This act shall take effect immediately, provided that:
  (1)  section  one  of  this  act shall apply to leases of solar energy
system equipment and purchases of power under written agreements entered
into on or after such effective date; provided  further,  however,  that
the  amendments to paragraph 2 of subsection (g-1) of section 606 of the
tax law made by section one of this act shall not apply to  any  taxable
year commencing on or after January 1, 2015; and
  (2) sections two, three and four of this act shall apply to sales made
or  uses  occurring on or after September 1, 2012 in accordance with the
applicable transitional provisions of sections 1106 and 1217 of the  tax
law.

                                 PART I

  Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
law, as amended by chapter 440 of the laws of 2006, is amended  to  read
as follows:
  (1)  A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which is subject to tax under article nine-A or twenty-two  of  this
chapter,  shall  be  allowed  a credit against such tax, pursuant to the
provisions referenced in subdivision [(d)] (C) of this  section,  to  be
computed  as provided in this section. Provided, however, to be eligible
for such credit, at least seventy-five percent of the  production  costs
(excluding post production costs) paid or incurred directly and predomi-
nantly  in  the  actual filming or recording of the qualified commercial
must be costs incurred in New York state.  THE TAX CREDIT ALLOWED PURSU-
ANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE  JANU-
ARY FIRST, TWO THOUSAND SEVENTEEN.
  S 2. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
added  by  section  3  of  part  V of chapter 62 of the laws of 2006, is
amended to read as follows:
  (a) Allowance of credit. A  taxpayer  that  is  eligible  pursuant  to
provisions  of  section  twenty-eight of this chapter shall be allowed a
credit to be computed as  provided  in  such  section  against  the  tax
imposed  by  this  article.    THE  TAX  CREDIT ALLOWED PURSUANT TO THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
  S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law,  as
added  by  section  5  of  part  V of chapter 62 of the laws of 2006, is
amended to read as follows:
  (1) Allowance of credit. A taxpayer that is eligible pursuant  to  the
provisions  of  section  twenty-eight of this chapter shall be allowed a
credit to be computed as  provided  in  such  section  against  the  tax
imposed  by  this  article.    THE  TAX  CREDIT ALLOWED PURSUANT TO THIS

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SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
  S  4. Section 10 of part V of chapter 62 of the laws of 2006, relating
to the empire state commercial production tax credit, is amended to read
as follows:
  S 10. This act shall take effect immediately [and shall apply to taxa-
ble years beginning on and after January 1, 2007 and shall expire and be
deemed repealed on December 31, 2011]; provided, however  that  the  IMB
credit  for  energy  taxes  under  subsection  (t-1)  and the state film
production credit under subsection (gg) of section 606 of  the  tax  law
contained  in  section four of this act shall expire on the same date as
provided in subdivision (a) of section 49 of part Y of chapter 63 of the
laws of 2000, as amended and section 9 of part P of chapter  60  of  the
laws of 2004, as amended, respectively.
  S 5. This act shall take effect immediately.

                                 PART J

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 1 of part F of chapter 61 of the  laws  of  2011,  is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [thirty-two] FORTY million dollars. The limitation
provided by this subdivision applies only to allocation of the aggregate
dollar  amount  of  credit  by  the  commissioner, and does not apply to
allowance to a taxpayer of the credit with respect to an  eligible  low-
income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall be [forty] FORTY-EIGHT million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [forty-eight] FIFTY-SIX million dollars. The limi-
tation provided by this subdivision applies only to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [fifty-six] SIXTY-FOUR million dollars. The  limi-
tation  provided  by  this subdivision applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.

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  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. This  act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2013, section three
of this act shall take effect April 1, 2014, section four  of  this  act
shall  take effect April 1, 2015 and section five of this act shall take
effect April 1, 2016.

                                 PART K

  Section 1. Subdivision (a) of section 28 of the tax law, as amended by
section 1 of part A of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  If the
taxpayer is a partner in a partnership or shareholder of a  New  York  S
corporation,  then  the  cap  imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY.
  S 2. Section 187-c of the tax law, as added by section 2 of part X  of
chapter 62 of the laws of 2006, is amended to read as follows:
  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section twenty-eight of this  chap-
ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
SIX,  against  the  tax imposed by this article. Provided, however, that
the amount of such credit allowed against the tax imposed by section one
hundred eighty-four of this article shall be the excess of the amount of
such credit over the amount  of  any  credit  allowed  by  this  section
against  the  tax  imposed  by  section one hundred eighty-three of this
article. In no event shall the credit under this section be  allowed  in
an  amount which will reduce the tax payable to less than the applicable
minimum tax fixed by section one hundred  eighty-three  or  one  hundred
eighty-five  of  this  article.  If,  however,  the amount of the credit
allowed under this section for any taxable year reduces the tax to  such
amount, the excess shall be treated as an overpayment of tax to be cred-
ited  or  refunded  in  accordance  with  the  provisions of section six
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter

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notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S 3. Subdivision 38 of section 210 of the tax law, as added by section
3  of  part  X  of chapter 62 of the laws of 2006, is amended to read as
follows:
  38. Biofuel production credit. A taxpayer shall be allowed  a  credit,
to  be  computed as provided in section twenty-eight of this chapter, AS
ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF  TWO  THOUSAND  SIX,
against  the  tax imposed by this article. The credit allowed under this
subdivision for any taxable year shall 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 shall be treated as an overpayment of tax to be credited or
refunded in accordance with  the  provisions  of  section  one  thousand
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter
notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S  4.  Subsection  (jj)  of  section  606  of the tax law, as added by
section 5 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
to be computed as provided in section twenty-eight of this  chapter,  AS
ADDED  BY  PART  X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
against the tax imposed by this article. 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 overpay-
ment 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 shall be paid thereon.  THE TAX CREDIT ALLOWED PURSUANT
TO  THIS  SECTION  SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY.
  S 5. Section 6 of part X of chapter 62 of the laws of  2006,  amending
the  tax  law  relating  to providing tax credits for biofuel production
plants, is amended to read as follows:
  S 6. This act shall take effect immediately [and shall apply to  taxa-
ble  years commencing on and after January 1, 2006 and before January 1,
2013]; provided, however that the IMB  credit  for  energy  taxes  under
subsection  (t-1)  and the state film production credit under subsection
(gg) of section 606 of the tax law contained in section four of this act
shall expire on the same date as provided in subdivision (a) of  section
49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
of part P of chapter 60 of the laws of 2004, as amended, respectively.
  S 6. This act shall take effect immediately.

                                 PART L

  Section  1.  Section  2  of  part I of chapter 58 of the laws of 2006,
relating to providing an enhanced earned income tax credit,  is  amended
to read as follows:

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  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January  1, 2006 [and before January 1,
2013].
  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 5232 of the civil practice law and rules is amended
by adding a new subdivision (i) to read as follows:
  (I)  NO  BANKING  INSTITUTION SHALL SETOFF AND APPLY A LEVY PROCESSING
FEE AGAINST THE PROCEEDS OF A LEVY FOR TAXES IMPOSED BY OR  PURSUANT  TO
THE  AUTHORITY  OF  THE  TAX  LAW OR FOR CHILD SUPPORT REGARDLESS OF ANY
TERMS OF AGREEMENT, OR SCHEDULE OF FEES, OR OTHER CONTRACT  BETWEEN  THE
DEBTOR AND THE BANKING INSTITUTION.
  S 2. Subdivision (d) of section 151 of the debtor and creditor law, as
amended  by  chapter  553  of  the  laws  of 1990, is amended to read as
follows:
  (d) the issuance of any execution against any of  the  property  of  a
creditor, EXCEPT AS PROVIDED FOR IN SUBDIVISION (I) OF SECTION FIFTY-TWO
HUNDRED THIRTY-TWO OF THE CIVIL PRACTICE LAW AND RULES;
  S  3.   This act shall take effect on the ninetieth day after it shall
have become a law.

                                 PART N

  Section 1. Subsection (a) of section 801 of the tax law, as amended by
section 2 of part B of chapter 56 of the laws of  2011,  is  amended  to
read as follows:
  (a)  For  the sole purpose of providing an additional stable and reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority  and  its subsidiaries and affiliates to preserve, operate and
improve essential transit and transportation services in  the  metropol-
itan  commuter  transportation  district,  a  tax  is  hereby imposed on
EMPLOYERS AND INDIVIDUALS AS FOLLOWS: (1) FOR employers  who  engage  in
business  within  the  MCTD  [(1)],  THE TAX IS IMPOSED at a rate of (A)
eleven hundredths (.11) percent OF THE  PAYROLL  EXPENSE  for  employers
with payroll expense no greater than three hundred seventy-five thousand
dollars  in  any  calendar  quarter,  (B)  twenty-three hundredths (.23)
percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
er than three hundred seventy-five thousand dollars and no greater  than
four  hundred thirty-seven thousand five hundred dollars in any calendar
quarter, and (C) thirty-four hundredths (.34)  percent  OF  THE  PAYROLL
EXPENSE  for  employers  with  payroll expense in excess of four hundred
thirty-seven thousand five hundred dollars  in  any  calendar  quarter[,
and].  IF  THE  EMPLOYER  IS  A  PROFESSIONAL  EMPLOYER ORGANIZATION, AS
DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE  ATTRIBUTABLE
TO  EACH  CLIENT  WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
WITH SUCH ORGANIZATION AND THE  PAYROLL  EXPENSE  ATTRIBUTABLE  TO  SUCH
ORGANIZATION  ITSELF,  MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
BY THE APPLICABLE RATE SET FORTH IN  THIS  PARAGRAPH  AND  ADDING  THOSE
PRODUCTS  TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
thirty-four hundredths (.34) percent of the net earnings  from  self-em-
ployment  of individuals that are attributable to the MCTD if such earn-
ings attributable to the MCTD exceed fifty thousand dollars for the  tax
year.

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  S  2.  Section  4 of part B of chapter 56 of the laws of 2011 amending
the tax law relating to the tax rates and exclusions under the metropol-
itan commuter transportation mobility tax is amended to read as follows:
  S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
YEARS  BEGINNING  ON  OR  AFTER  JANUARY 1, 2012; provided however, that
section one of this act and the amendments in section two  of  this  act
that  concern  employers  shall take effect for the quarter beginning on
April 1, 2012.
  S 3. This act shall take effect immediately; provided however that the
amendment in section one of this act  concerning  professional  employer
organizations  shall  take  effect for the quarter beginning on April 1,
2012.

                                 PART O

  Section 1. Paragraph (a) of subdivision  1  of  section  1003  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 1
of part S of chapter 61 of the laws of  2011,  is  amended  to  read  as
follows:
  (a)  Any  racing  association  or  corporation  or  regional off-track
betting corporation, authorized to conduct  pari-mutuel  wagering  under
this  chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to  the
conditions  provided  for  in  this article may apply to the board for a
license so to do. Applications for licenses shall be in such form as may
be prescribed by the board and shall contain such information  or  other
material  or  evidence  as  the  board  may require. No license shall be
issued by the board authorizing the simulcast transmission of  thorough-
bred  races  from  a  track  located in Suffolk county. The fee for such
licenses shall be five hundred dollars per simulcast facility  per  year
payable  by the licensee to the board for deposit into the general fund.
Except as provided herein, the board shall not approve  any  application
to  conduct  simulcasting  into individual or group residences, homes or
other areas for the purposes of or in connection with pari-mutuel wager-
ing. The board may approve simulcasting into residences, homes or  other
areas  to be conducted jointly by one or more regional off-track betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation; provided (i) the simulcasting consists only of those  races  on
which  pari-mutuel  betting is authorized by this chapter at one or more
simulcast facilities for  each  of  the  contracting  off-track  betting
corporations  which shall include wagers made in accordance with section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this article; provided further that the  contract  provisions  or  other
simulcast  arrangements  for  such  simulcast  facility shall be no less
favorable than those in effect on January first, two thousand five; (ii)
that each off-track betting corporation  having  within  its  geographic
boundaries  such residences, homes or other areas technically capable of
receiving the simulcast signal shall be a contracting party;  (iii)  the
distribution  of  revenues  shall be subject to contractual agreement of
the parties except that statutory payments to  non-contracting  parties,
if  any,  may  not be reduced; provided, however, that nothing herein to
the contrary shall prevent a track  from  televising  its  races  on  an
irregular basis primarily for promotional or marketing purposes as found
by  the board. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall  not  apply.  Any  agreement

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authorizing  an  in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,
however,  that  any  party to such agreement may elect to terminate such
agreement upon conveying written notice to all  other  parties  of  such
agreement  at  least  forty-five days prior to the effective date of the
termination, via registered mail. Any party to  an  agreement  receiving
such  notice of an intent to terminate, may request the board to mediate
between the parties new terms and conditions in a replacement  agreement
between the parties as will permit continuation of an in-home experiment
until  June  thirtieth,  two  thousand  [twelve]  THIRTEEN;  and (iv) no
in-home simulcasting in the thoroughbred special betting district  shall
occur without the approval of the regional thoroughbred track.
  S  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part S of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county  on  races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twelve] THIRTEEN, the amount  used  exclusively
for  purses  to  be  awarded  at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and  one-half
percent  of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference  in  total  commissions
determined by comparing the total commissions available after July twen-
ty-first,  nineteen  hundred  ninety-five  to the total commissions that
would have been available to such  track  prior  to  July  twenty-first,
nineteen hundred ninety-five.
  S  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth,  two  thousand [twelve] THIRTEEN and on any day regardless of
whether or not a franchised corporation is conducting a race meeting  in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two  thousand [twelve] THIRTEEN. On any day on which a franchised corpo-
ration has not scheduled a racing  program  but  a  thoroughbred  racing
corporation  located  within  the state is conducting racing, every off-
track betting corporation branch office and every simulcasting  facility
licensed  in  accordance  with  section  one  thousand  seven (that have
entered into a written agreement  with  such  facility's  representative
horsemen's  organization, as approved by the board), one thousand eight,
or one thousand nine of this  article  shall  be  authorized  to  accept
wagers  and  display  the live simulcast signal from thoroughbred tracks
located in another state or foreign country  subject  to  the  following
provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part S of chapter 61 of the
laws of 2011, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country

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during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twelve] THIRTEEN.  This section shall supersede
all inconsistent provisions of this chapter.
  S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting  a  race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth,  two  thousand  [twelve]  THIRTEEN.   Every off-track betting
corporation branch office and every simulcasting  facility  licensed  in
accordance  with  section  one  thousand  seven that have entered into a
written agreement with such facility's representative horsemen's  organ-
ization  as  approved  by  the board, one thousand eight or one thousand
nine of this article shall be authorized to accept  wagers  and  display
the  live  full-card  simulcast signal of thoroughbred tracks (which may
include quarter horse or mixed meetings provided that all such  wagering
on  such  races  shall be construed to be thoroughbred races) located in
another state or foreign country, subject to the  following  provisions;
provided,  however,  no  such  written  agreement shall be required of a
franchised corporation licensed in accordance with section one  thousand
seven of this article:
  S  6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part S of  chapter
61 of the laws of 2011, is amended to read as follows:
  Notwithstanding  any  other  provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two  thou-
sand [eleven] TWELVE, when a franchised corporation is conducting a race
meeting  within  the  state  at  Saratoga  Race  Course, every off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization as approved by the board), one thousand eight or one  thou-
sand  nine  of  this  article  shall  be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another  state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred  tracks  which  are  conducting  racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part S of  chapter  61  of  the
laws of 2011, is amended to read as follows:
  S  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2012]  2013;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified
or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-

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five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by  section
8  of  part  S  of chapter 61 of the laws of 2011, is amended to read as
follows:
  S 54. This act  shall  take  effect  immediately;  provided,  however,
sections  three  through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire  and
be  deemed repealed on July 1, [2012] 2013; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
two  of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
  S 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part S
of chapter 61 of the laws of 2011, is amended to read as follows:
  (a)  The  franchised  corporation  authorized  under  this  chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders  of
winning  tickets therein, provided such tickets be presented for payment
before April first of the year following the  year  of  their  purchase,
less  an  amount  which  shall be established and retained by such fran-
chised corporation of between twelve to  seventeen  per  centum  of  the
total  deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in  pools  resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total  deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools  resulting  from
on-track  super  exotic  bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the racing and  wagering
board.  Such rate may not be changed more than once per calendar quarter
to be effective on the first day of the calendar quarter. "Exotic  bets"
and  "multiple  bets"  shall have the meanings set forth in section five
hundred nineteen of this chapter.  "Super exotic bets"  shall  have  the
meaning  set  forth  in  section  three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a  single  bet  or
wager on the outcomes of six races. The breaks are hereby defined as the
odd  cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over  any  multiple  of  ten  for
payoffs  greater  than  five  dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs  greater  than  twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid  by  such  franchised  corporation  to  the
commissioner  of  taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run  at
the  race  meetings  held  by such franchised corporation, the following
percentages of the total pool for regular and  multiple  bets  five  per
centum  of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
centum  plus  twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the  breaks.  For
the  period  June  first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be

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three per centum and such tax on multiple wagers shall be two  and  one-
half  per  centum,  plus twenty per centum of the breaks. For the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one, such tax on all wagers shall be two and six-
tenths per centum and for the  period  April  first,  two  thousand  one
through  December thirty-first, two thousand [twelve] THIRTEEN, such tax
on all wagers shall be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New  York  state
thoroughbred  breeding  and  development  fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and  three
per  centum  of super exotic bets provided, however, that for the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one,  such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[twelve] THIRTEEN, such payment shall be seven-tenths of one per  centum
of such pools.
  S  10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 10 of part S of  chapter  61
of the laws of 2011, is amended to read as follows:
  5.  The  provisions  of this section shall expire and be of no further
force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
  S 11. This act shall take effect immediately.

                                 PART P

  Section 1. Subdivision 3 of section 205 of the tax law,  as  added  by
section  8  of  part U1 of chapter 62 of the laws of 2003, is amended to
read as follows:
  3. [From the] THE moneys collected from the taxes imposed by  sections
one  hundred eighty-three and one hundred eighty-four of this article on
and after April first,  two  thousand  [four]  TWELVE,  after  reserving
amounts  for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS:
twenty percent of such moneys shall be deposited to the  credit  of  the
dedicated  highway  and bridge trust fund established by section eighty-
nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT  OF
SUCH  MONEYS  shall  be  deposited  in the mass transportation operating
assistance fund to the credit of the  metropolitan  mass  transportation
operating  assistance account created pursuant to section eighty-eight-a
of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL  BE
DEPOSITED  IN  THE  MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE
CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT
CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
  S 2. This act shall take effect immediately and shall be deemed to  be
in  full force and effect on and after April 1, 2012; provided, however,
that the amendments to subdivision 3 of section 205 of the tax law  made
by  section one of this act shall not affect the repeal of such subdivi-
sion and shall be deemed to be repealed therewith.

                                 PART Q

  Section 1. Subdivision (e) of section 1105 of the tax law, as  amended
by section 4 of part AA of chapter 57 of the laws of 2010, is amended to
read as follows:

S. 6259--A                         48                         A. 9059--A

  (e)  (1) The rent for every occupancy of a room or rooms in a hotel in
this state, except that the tax shall not be imposed upon (i)  a  perma-
nent  resident,  or  (ii) where the rent is not more than at the rate of
two dollars per day.
  (2)  [When]  EXCEPT  AS  PROVIDED IN SUBDIVISION (R) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS PART, WHEN occupancy is provided,  for  a  single
consideration,  with property, services, amusement charges, or any other
items, the separate sale of which is not subject to tax under this arti-
cle, the entire consideration shall be treated as rent  subject  to  tax
under  paragraph  one of this subdivision; provided, however, that where
the amount of the rent for occupancy is stated separately from the price
of such property, services, amusement charges, or other  items,  on  any
sales slip, invoice, receipt, or other statement given the occupant, and
such  rent  is  reasonable  in  relation  to the value of such property,
services, amusement charges or other items, only such separately  stated
rent will be subject to tax under paragraph one of this subdivision.
  S  2.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (r) to read as follows:
  (R) (1) IN REGARD TO THE COLLECTION OF SALES  TAX  ON  OCCUPANCIES  BY
ROOM  REMARKETERS, WHEN OCCUPANCY IS PROVIDED FOR A SINGLE CONSIDERATION
WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER
OR  NOT  SUCH OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDER-
ATION FOR SUCH TRANSACTION SHALL BE  COMPUTED  AS  FOLLOWS:  EITHER  THE
TOTAL  CONSIDERATION  RECEIVED  BY  THE  ROOM REMARKETER MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDERATION PAYABLE  FOR
THE  OCCUPANCY BY THE ROOM REMARKETER AND THE DENOMINATOR OF WHICH SHALL
BE SUCH CONSIDERATION PAYABLE FOR THE OCCUPANCY PLUS  THE  CONSIDERATION
PAYABLE  BY  THE  REMARKETER  FOR  THE OTHER ITEMS BEING SOLD, OR BY ANY
OTHER METHOD AS MAY BE AUTHORIZED  BY  THE  COMMISSIONER.  IF  THE  ROOM
REMARKETER  FAILS TO SEPARATELY STATE THE TAX ON THE RENT SO COMPUTED ON
A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN TO THE OCCUPANT
IN THE MANNER PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION  OR  FAILS
TO  MAINTAIN  RECORDS  OF  THE PRICES OF ALL COMPONENTS OF A TRANSACTION
COVERED BY THIS PARAGRAPH, THE ENTIRE CONSIDERATION SHALL BE TREATED  AS
RENT  SUBJECT  TO  TAX UNDER PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION
ELEVEN HUNDRED FIVE OF THIS PART. NOTHING HEREIN SHALL BE  CONSTRUED  TO
SUBJECT  TO  TAX OR EXEMPT FROM TAX ANY SERVICE OR PROPERTY OR AMUSEMENT
CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR EXEMPT FROM TAX  UNDER
THIS ARTICLE OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
CHAPTER.  A  ROOM  REMARKETER'S RECORDS OF THE CONSIDERATION PAYABLE FOR
ALL COMPONENTS OF A TRANSACTION COVERED BY THIS  PARAGRAPH  ARE  RECORDS
REQUIRED  TO  BE  MAINTAINED  FOR PURPOSES OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
  (2) IN REGARD TO THE COLLECTION OF SALES TAX ON  OCCUPANCIES  BY  ROOM
REMARKETERS,  INCLUDING A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS
SUBDIVISION, THE REQUIREMENTS OF THE SECOND SENTENCE OF PARAGRAPH ONE OF
SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  THIRTY-TWO  OF  THIS  ARTICLE
SHALL  BE  DEEMED SATISFIED IF THE REMARKETER GIVES THE CUSTOMER A SALES
SLIP, INVOICE, RECEIPT, OR OTHER  STATEMENT  OF  THE  PRICE  ("INVOICE")
PRIOR TO THE CUSTOMER'S COMPLETION OF HIS OR HER OCCUPANCY, ON WHICH THE
AMOUNT  OF  TAX  DUE UNDER THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF
ARTICLE TWENTY-NINE OF THIS CHAPTER IS STATED. THE ROOM REMARKETER  MUST
KEEP  EITHER  A  COPY  OF  THE INVOICE AS REQUIRED BY SUBDIVISION (A) OF
SECTION ELEVEN  HUNDRED  THIRTY-FIVE  OF  THIS  ARTICLE,  OR  ELECTRONIC
RECORDS  THAT  ACCURATELY REFLECT THE INFORMATION THAT IS ON THE INVOICE
PROVIDED TO THE CUSTOMER.

S. 6259--A                         49                         A. 9059--A

  (3) IN REGARD TO THE REPORTING AND THE PAYMENT TO THE COMMISSIONER  BY
ROOM  REMARKETERS  OF  SALES  TAX DUE ON OCCUPANCIES, SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS ARTICLE  SHALL  BE  READ  TO
REQUIRE  A  ROOM  REMARKETER  TO REPORT SUCH SALES TAX DUE, INCLUDING IN
REGARD  TO A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION,
ON THE RETURN DUE FOR THE FILING PERIOD IN WHICH THE OCCUPANCY ENDS AND,
AT THE TIME OF FILING SUCH RETURN, TO PAY TO THE COMMISSIONER THE  TOTAL
AMOUNT DESCRIBED BY SUCH SUBDIVISION (A).
  S  3.  Subdivision  (e)  of  section  1119 of the tax law, as added by
section 5 of part AA of chapter 57 of the laws of 2010,  is  amended  to
read as follows:
  (e)  Subject  to  conditions and limitations provided in this subdivi-
sion, a room remarketer shall be allowed a refund or credit against  the
amount of tax collected and required to be remitted under section eleven
hundred thirty-seven of this article in the amount of the tax it paid to
an  operator  of a hotel under section eleven hundred four of this arti-
cle, where applicable, and subdivision (e)  of  section  eleven  hundred
five of this article. Provided, however, that, in order to qualify for a
refund  or  credit  under  this  subdivision for any sales tax quarterly
period, the room remarketer must, for that quarter,  (1)  be  registered
for  sales tax purposes under section eleven hundred thirty-four of this
article; (2) collect the taxes imposed by section eleven hundred four of
this article, where applicable, and subdivision (e)  of  section  eleven
hundred five of this article; and (3) furnish the certificate of author-
ity  number  of  the  operator to whom the applicant paid the tax in its
application for refund or credit  if  required  on  that  form  or  upon
request.    PROVIDED THAT IF THE ROOM REMARKETER REQUESTS THE OPERATOR'S
CERTIFICATE OF AUTHORITY NUMBER AND IS NOT PROVIDED  WITH  THAT  NUMBER,
THE ROOM REMARKETER MAY SATISFY THIS REQUIREMENT BY PROVIDING THE OPERA-
TOR'S  NAME,  BUSINESS ADDRESS, TELEPHONE NUMBER, AND THE ADDRESS OF THE
HOTEL WHERE THE OCCUPANCY TOOK PLACE. An application for refund or cred-
it under this subdivision must be filed with the commissioner within the
time provided by subdivision (a) of section eleven  hundred  thirty-nine
of  this  article. The application must be in the form prescribed by the
commissioner. Where an application for credit has been filed, the appli-
cant may immediately take the credit on the return that is  due  coinci-
dent with or immediately subsequent to the time that the applicant files
the  application  for  credit.  However, the taking of the credit on the
return is deemed to be part of the application for credit. The procedure
for granting or denying the applications for refund or credit and review
of those determinations shall be  as  provided  in  subdivision  (e)  of
section eleven hundred thirty-nine of this article. An operator, includ-
ing  a  room  remarketer, who is paid tax by a room remarketer must upon
request provide the remarketer with its certificate of authority number,
provided that the operator's failure  to  do  so  does  not  change  the
requirement set forth in paragraph three of this subdivision.
  S  4.  Paragraph 4 of subdivision a of section 11-2502 of the adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (4) (I) When occupancy is provided, for a single  consideration,  with
property,  services, amusement charges, or any other items, the separate
sale of which is not subject to  tax  under  this  chapter,  the  entire
consideration  shall  be  treated as rent subject to tax under paragraph
one of this subdivision; provided, however, that where the amount of the
rent for occupancy is stated separately from the price of such property,
services, amusement charges or other items on any sales  slip,  invoice,

S. 6259--A                         50                         A. 9059--A

receipt,  or other statement given the occupant and such rent is reason-
able in relation to the value  of  such  property,  services,  amusement
charges,  or  other  items,  only  such  separately  stated rent will be
subject to tax under [paragraph one of] this subdivision.
  (II) IN REGARD TO THE COLLECTION OF TAX ON OCCUPANCIES BY REMARKETERS,
WHEN  OCCUPANCY  IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROPERTY,
SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER  OR  NOT  SUCH
OTHER  ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDERATION FOR SUCH
SALE SHALL BE COMPUTED AS FOLLOWS: THE TOTAL CONSIDERATION FOR THE  SALE
MULTIPLIED  BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDER-
ATION PAID TO THE HOTEL FOR THE OCCUPANCY AND THE DENOMINATOR  OF  WHICH
SHALL  BE THE CONSIDERATION PAID TO THE HOTEL FOR THE OCCUPANCY PLUS THE
CONSIDERATION PAID TO THE PROVIDERS OF THE OTHER ITEMS BEING SOLD, OR BY
ANY OTHER REASONABLE METHOD  PURSUANT  TO  WHICH  THE  RENT  PORTION  OF
CONSIDERATION  WOULD  BE NO LESS THAN THE COMPUTATION OF RENT PORTION OF
CONSIDERATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.  NOTHING  HEREIN
SHALL  BE  CONSTRUED TO SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR
PROPERTY OR AMUSEMENT CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX  OR
EXEMPT FROM TAX UNDER THIS CHAPTER.
  S  5.  Paragraph 5 of subdivision a of section 11-2502 of the adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (5) A room remarketer shall be allowed a refund or credit against  the
taxes  collected and required to be remitted pursuant to section 11-2505
of this chapter in the amount of the tax it paid to the operator of  the
hotel  or another room remarketer under [paragraph three of] this subdi-
vision. Provided, however, that in order to  qualify  for  a  refund  or
credit  under  this  paragraph  with respect to any quarterly period, as
described in subdivision a of section 11-2504 of this chapter, the  room
remarketer  must,  with  respect  to such quarter, (i) be registered for
hotel room occupancy tax purposes under section 11-2514 of this chapter,
and (ii) collect the taxes imposed by paragraphs two and three  of  this
subdivision.  Subject  to  the  conditions and limitations of this para-
graph, the provisions of section 11-2507 of this chapter shall apply  to
refunds or credits under this paragraph.
  S  6.  Subdivision  f of section 11-2502 of the administrative code of
the city of New York, as amended by local law number 43 of the  city  of
New York for the year 2009 and paragraph 2 as renumbered by section 9 of
part  AA  of  chapter  57  of  the  laws  of 2010, is amended to read as
follows:
  f. The tax to be collected shall be stated  [and  charged]  separately
from  the  rent [and shown separately on any record thereof, at the time
when the occupancy is arranged or contracted for  and  charged  for  and
upon every evidence of occupancy or any bill or statement or charge made
for said occupancy issued or delivered by the operator or room remarket-
er]  ON  A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE
("INVOICE") GIVEN TO THE OCCUPANT PRIOR TO THE OCCUPANT'S COMPLETION  OF
HIS  OR HER OCCUPANCY AND BE VERIFIABLE FROM THE BOOKS AND RECORDS OF AN
OPERATOR OR ROOM REMARKETER RESPONSIBLE FOR COLLECTING AND REMITTING THE
TAX.
  (1) Where an occupant rents a room directly from an operator, the  tax
shall  be  paid  by  the  occupant to the operator as trustee for and on
account of the city, and the operator shall be liable for the collection
of the tax on the rent and for the payment of the tax on the rent.
  (2) The operator or room remarketer and any officer of  any  corporate
operator  or  room remarketer shall be personally liable for the portion

S. 6259--A                         51                         A. 9059--A

of the tax collected or required to be collected under this chapter, and
the operator shall have the same right in respect to collecting the  tax
from  the  occupant, or in respect to nonpayment of the tax by the occu-
pant  as if the tax were a part of the rent for the occupancy payable at
the time such tax shall become due and owing, including  all  rights  of
eviction, dispossession, repossession and enforcement of any innkeeper's
lien  that  he or she may have in the event of nonpayment of rent by the
occupant; provided however, that the commissioner of  finance  shall  be
joined as a party in any action or proceeding brought by the operator to
collect or enforce collection of the tax.
  S  7.  This act shall take effect September 1, 2012 and shall apply to
occupancies that commence on or after such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through Q of this act shall  be
as specifically set forth in the last section of such Parts.

S6259B - Bill Details

See Assembly Version of this Bill:
A9059D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6259B - Bill Texts

view summary

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).

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

    S. 6259--B                                            A. 9059--B

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

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee  on  Ways  and  Means -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee

AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
  erty tax law relating to oil and  gas  charges,  in  relation  to  the
  effective  date  of  such chapter (Part A); to amend the real property
  tax law, the tax law, the administrative code of the city of New  York
  and  the  state  finance  law,  in  relation to the suspension of STAR
  exemptions and related benefits of persons who are delinquent  in  the
  payment  of  outstanding  state tax liabilities (Part B); to amend the
  tax law, in relation to reforming  excise  tax  on  tobacco  products,
  imposing  a  fixed rate of tax on loose tobacco, and imposing a retail
  tax on cigars (Part C); to amend chapter 109  of  the  laws  of  2006,
  amending  the tax law relating to providing exemptions, reimbursements
  and credits from various  taxes  for  certain  alternative  fuels,  in
  relation  to  extending the alternative fuels tax exemptions (Part D);
  to amend the tax law, in relation to making  technical  amendments  to
  the  tax  treatment  of diesel fuel to reflect industry practice (Part
  E); to amend the tax law, in relation to the power of the commissioner
  of taxation and finance to refuse to issue a certificate of  authority
  to  collect the sales and compensating use taxes imposed by article 28
  of the tax law and pursuant to the authority of article 29 of the  tax
  law  (Part  F);  to  amend the tax law and part U of chapter 61 of the
  laws of 2011, amending the real property tax law, the general  munici-
  pal  law, the public officers law, the tax law, the abandoned property
  law, the state finance law and the administrative code of the city  of
  New York, relating to establishing standards for electronic real prop-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-03-2

S. 6259--B                          2                         A. 9059--B

  erty  tax  administration,  allowing  the  department  of taxation and
  finance to use electronic communication means to furnish  tax  notices
  and  other  documents,  mandatory  electronic filing of tax documents,
  debit cards issued for tax refunds, improving sales tax compliance and
  repealing  certain  provisions  of  the tax law and the administrative
  code of the city of New York relating thereto, in relation  to  making
  permanent,  provisions  relating to mandatory electronic filing of tax
  documents and improving sales tax compliance; and  to  repeal  certain
  provisions  of  the tax law and the administrative code of the city of
  New York relating thereto (Part G); to amend the tax law, in  relation
  to  the personal income tax credits for solar energy systems equipment
  and the sales and use tax exemption provided for such equipment  (Part
  H);  to  amend  the tax law, in relation to extending the empire state
  commercial production tax credit; and to amend part V of chapter 62 of
  the laws of 2006 relating to the empire  state  commercial  production
  tax  credit,  in  relation  to  the effectiveness thereof (Part I); to
  amend the public housing law, in relation to the credit against income
  tax for persons or entities investing in low-income housing (Part  J);
  to  amend the tax law, in relation to extending the biofuel production
  tax credit; and to amend part X of chapter 62 of  the  laws  of  2006,
  amending  the  tax  law  relating to providing tax credits for biofuel
  production plants, in relation to the effectiveness thereof (Part  K);
  to  amend  chapter  58  of  the laws of 2006, relating to providing an
  enhanced earned income tax credit, in relation  to  the  effectiveness
  thereof  (Part  L);  to amend the civil practice law and rules and the
  debtor and creditor law, in relation  to  prohibiting  banking  insti-
  tutions from deducting levy processing fees from tax and child support
  levy proceeds (Part M); to amend the tax law, in relation to tax rates
  and exclusions under the metropolitan commuter transportation mobility
  tax  for  professional  employer  organizations and to amend part B of
  chapter 56 of the laws of 2011 amending the tax law  relating  to  the
  tax  rates  and exclusions under the metropolitan commuter transporta-
  tion mobility tax, in relation to the effectiveness thereof (Part  N);
  to  amend  the  racing,  pari-mutuel  wagering  and  breeding  law, in
  relation to licenses for simulcast facilities, sums relating to  track
  simulcast,  simulcast of out-of-state thoroughbred races, simulcasting
  of races run by  out-of-state  harness  tracks  and  distributions  of
  wagers;  to amend chapter 281 of the laws of 1994 amending the racing,
  pari-mutuel wagering and breeding  law  and  other  laws  relating  to
  simulcasting  and chapter 346 of the laws of 1990 amending the racing,
  pari-mutuel wagering and breeding  law  and  other  laws  relating  to
  simulcasting  and  the  imposition  of  certain  taxes, in relation to
  extending certain provisions thereof; to amend the racing, pari-mutuel
  wagering and breeding law, in relation to extending certain provisions
  thereof (Part O); to amend the tax law, in relation  to  the  distrib-
  ution  of  revenue  collected  from  the corporate and utilities taxes
  imposed under sections 183 and 184 of the tax law  (Part  P);  and  to
  amend the tax law and the administrative code of the city of New York,
  in  relation  to  facilitating the compliance of room remarketers with
  their obligation to collect sales tax  on  their  sales  of  occupancy
  (Part Q)

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

S. 6259--B                          3                         A. 9059--B

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through Q. 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 a 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. Section 2 of chapter 540 of the laws of 1992, amending  the
real  property  tax  law  relating to oil and gas charges, as amended by
section 1 of part II of chapter 56 of the laws of 2009,  is  amended  to
read as follows:
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be  due  for  values
for assessment rolls with tentative completion dates after July 1, 1992,
and  provided  further,  that  this  act  shall remain in full force and
effect until March 31, [2012] 2015, at which time  section  593  of  the
real  property  tax  law  as  added  by section one of this act shall be
repealed.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012.

                                 PART B

  Section  1.  Subdivision 3 of section 425 of the real property tax law
is amended by adding a new paragraph (f) to read as follows:
  (F) COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S  ELIGIBILITY
FOR  THE  STAR  EXEMPTION  MUST NOT BE SUSPENDED PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW  DUE  TO  THE  PAST-DUE  STATE  TAX
LIABILITIES  OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY PROVISION
OF LAW TO THE CONTRARY,  WHERE  A  PROPERTY'S  ELIGIBILITY  FOR  A  STAR
EXEMPTION  HAS  BEEN  SUSPENDED  PURSUANT TO SUCH SECTION, THE FOLLOWING
PROVISIONS SHALL BE APPLICABLE:
  (I) THE PROPERTY SHALL BE INELIGIBLE FOR  A  BASIC  OR  ENHANCED  STAR
EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
ANCE  OF  NOTICE  BY THE DEPARTMENT OF THE SUSPENSION OF ITS ELIGIBILITY
FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
BLE TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH  A
PROPERTY  ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR OTHER
PERSON HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED  TO
IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
  (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
IN  THE  MANNER  PRESCRIBED  BY  SUCH SECTION. NEITHER AN ASSESSOR NOR A
BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER  SUCH  A  CHAL-
LENGE.

S. 6259--B                          4                         A. 9059--B

  (III)  THE  PROPERTY  SHALL  REMAIN  INELIGIBLE FOR THE STAR EXEMPTION
UNTIL THE DEPARTMENT NOTIFIES THE ASSESSOR THAT THE  SUSPENSION  OF  ITS
ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE
EXEMPTION  MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT THE
ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.
  (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
STAR  EXEMPTION  PURSUANT  TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
THIS SECTION, A SUSPENSION OF A  STAR  EXEMPTION  DUE  TO  A  TAXPAYER'S
PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON
THE  COOPERATIVE  APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
BY THAT TAXPAYER.
  S 2. The tax law is amended by adding a new section 171-y to  read  as
follows:
  S  171-Y.  ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES THROUGH THE
SUSPENSION OF ELIGIBILITY FOR STAR EXEMPTIONS. 1.  THE  COMMISSIONER  IS
HEREBY  AUTHORIZED  TO DEVELOP A PROGRAM TO COLLECT DELINQUENT STATE TAX
LIABILITIES FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY  OF
PROPERTIES  FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY OWNERS
HAVE PAST-DUE STATE TAX LIABILITIES. FOR THE PURPOSES OF  THIS  SECTION,
THE  TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT LIMITED
TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
FEE ADMINISTERED BY THE COMMISSIONER THAT IS OWED  BY  A  TAXPAYER;  THE
TERM  "PAST-DUE  STATE TAX LIABILITIES" MEANS ANY STATE TAX LIABILITY OR
LIABILITIES WHICH HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER  NO
LONGER  HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND FOR WHICH
THE TAXPAYER HAS NOT MADE PAYMENT ARRANGEMENTS FOR THAT LIABILITY SATIS-
FACTORY TO THE COMMISSIONER; THE TERM "TAXPAYER" SHALL MEAN THE INDIVID-
UAL RESPONSIBLE FOR THE PAYMENT OF ANY OF THE PAST-DUE STATE TAX LIABIL-
ITIES; AND THE TERM "STAR  EXEMPTION"  MEANS  THE  EXEMPTION  FROM  REAL
PROPERTY  TAXATION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW.
  2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE  ADMINISTRATION
OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
  (A)  THE  CRITERIA  FOR  IDENTIFYING TAXPAYERS WITH PAST-DUE STATE TAX
LIABILITIES.
  (B) THE PROCEDURES BY WHICH THE  DEPARTMENT  SHALL  DETERMINE  WHETHER
PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
  (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
THAT  THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL BE
SUSPENDED UNLESS THEY EITHER SATISFY THEIR PAST-DUE  STATE  TAX  LIABIL-
ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
DATE TO BE SPECIFIED IN THE NOTICE.
  (D)  THE  PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS OF
PROPERTIES WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED  DUE
TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
  (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
ON  A  PROSPECTIVE  BASIS  BY EITHER SATISFYING THEIR PAST-DUE STATE TAX
LIABILITIES OR MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO  THE  COMMIS-
SIONER.
  (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
THE  SUSPENSION  OF  A PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION HAS
BEEN LIFTED.
  (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
NATE AND EXECUTE THEIR OBLIGATIONS PURSUANT TO THIS  SECTION  AND  PARA-
GRAPH  (F)  OF  SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE REAL PROPERTY TAX LAW.

S. 6259--B                          5                         A. 9059--B

  (H) ANY OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY  TO  CARRY
OUT THE PROVISIONS OF THIS SECTION.
  3.  THE  DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST FORTY-FIVE DAYS
PRIOR TO THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR  OF  THE
SUSPENSION  OF  THE ELIGIBILITY FOR THE STAR EXEMPTION OF PROPERTY WHICH
IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
  (A) SUCH NOTICE SHALL INCLUDE A STATEMENT  THAT  THE  DEPARTMENT  WILL
NOTIFY  THE  ASSESSOR  OF THE SUSPENSION OF THE ELIGIBILITY FOR THE STAR
EXEMPTION OF PROPERTY WHOLLY OR PARTIALLY OWNED BY THE  TAXPAYER  UNLESS
THE  TAXPAYER  FULLY  SATISFIES THE OUTSTANDING STATE TAX LIABILITIES OR
OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
ACCORDANCE WITH LAW. HOWEVER, IN ANY CASE  WHERE  A  TAXPAYER  FAILS  TO
COMPLY  WITH  THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT AS DESCRIBED
HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
IMMEDIATELY NOTIFY THE ASSESSOR OF  THE  SUSPENSION  OF  THE  PROPERTY'S
ELIGIBILITY FOR THE STAR EXEMPTION.
  (B)  SUCH  NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY FOR THE
TAXPAYER TO PAY THE PAST-DUE LIABILITY,  MAKE  PAYMENT  ARRANGEMENTS  OR
OTHERWISE REQUEST ADDITIONAL INFORMATION.
  (C)  SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO PROTEST
THE NOTICE IS LIMITED TO RAISING ISSUES THAT  CONSTITUTE  A  MISTAKE  OF
FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
  (D)  SUCH NOTICE SHALL ALSO INCLUDE A STATEMENT THAT THE SUSPENSION OF
THE PROPERTY'S STAR EXEMPTION  WILL  CONTINUE  UNTIL  THE  TAXPAYER  HAS
SATISFIED  HIS OR HER PAST-DUE STATE TAX LIABILITIES OR HAS MADE PAYMENT
ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER,  AND  THAT  THE  PROPERTY
WILL  BE  PERMANENTLY  INELIGIBLE  FOR THE STAR EXEMPTION FOR ANY SCHOOL
YEARS THAT COMMENCE WHILE ITS ELIGIBILITY  FOR  THE  STAR  EXEMPTION  IS
SUSPENDED.
  (E)  SUCH  NOTICE  MAY  ALSO  INCLUDE  ANY  OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
  4. IF THE TAXPAYER FAILS TO SATISFY HIS  OR  HER  PAST-DUE  STATE  TAX
LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
FIED  IN  THE  NOTICE,  THE  DEPARTMENT SHALL NOTIFY THE ASSESSOR OF THE
SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
  5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE  NOTICE  ISSUED  BY
THE  DEPARTMENT  PURSUANT  TO THIS SECTION FOR THE PURPOSE OF SUSPENDING
THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED  IN
THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
ACTION,  ADMINISTRATIVE  PROCEEDING  OR ANY OTHER FORM OF LEGAL RECOURSE
AGAINST THE DEPARTMENT OR ASSESSOR REGARDING SUCH  SUSPENSION.  FOR  THE
PURPOSES  OF  THIS  SUBDIVISION,  "MISTAKE OF FACT" IS LIMITED TO CLAIMS
THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
PAST-DUE STATE TAX LIABILITIES WERE SATISFIED; OR (III)  THE  DEPARTMENT
INCORRECTLY  FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE TERMS
OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
PERIOD FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION.   HOWEVER,
NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
RELIEF  FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX HUNDRED
FIFTY-FOUR OF THIS CHAPTER TO THE EXTENT THAT  HE  OR  SHE  IS  ELIGIBLE
PURSUANT  TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT THE
ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED  BY  THE
FILING  OF  A  PETITION  PURSUANT  TO THE BANKRUPTCY CODE OF 1978 (TITLE
ELEVEN OF THE UNITED STATES CODE).

S. 6259--B                          6                         A. 9059--B

  6. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  THE  DEPART-
MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
ANY  TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE STAR
EXEMPTION PURSUANT TO THIS SECTION  AND  PARAGRAPH  (F)  OF  SUBDIVISION
THREE  OF  SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW
AND A DESCRIPTION OF SUCH PROPERTY.
  7. ACTIVITIES TO COLLECT  STATE  TAX  LIABILITIES  UNDERTAKEN  BY  THE
DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
OR  IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT
OR ENFORCE PAST-DUE STATE TAX LIABILITIES  UNDER  ANY  OTHER  APPLICABLE
PROVISION  OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX LIABIL-
ITY INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT  TO
PARAGRAPH  (F)  OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE
OF THE REAL PROPERTY TAX LAW AND THIS SECTION MAY NOT BE APPLIED IN  ANY
WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX
LIABILITY.
  S 3. Subsection (e) of section 697 of the tax law is amended by adding
a new paragraph 3-b to read as follows:
  (3-B)   NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH  ONE  OF  THIS
SUBSECTION, THE COMMISSIONER MAY DISCLOSE TO ASSESSORS  THE  INFORMATION
DESCRIBED  IN  SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER THAT IS
NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROPER IDENTIFICATION
OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO OWNS PROPERTY WITH
A STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSUANT TO SUCH  SECTION
AND   PARAGRAPH  (F)  OF  SUBDIVISION  THREE  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  S 4. The tax law is amended by adding a new section 1304-E to read  as
follows:
  S  1304-E. RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE STATE
TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABILITY, AS
THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS  CHAP-
TER,  ON  THE  LAST  DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
SUCH TAXPAYER UNDER SECTION THIRTEEN HUNDRED FOUR OF  THIS  ARTICLE  FOR
THE  TAXABLE  YEAR  SHALL  BE  RECALCULATED BY THE COMMISSIONER SO AS TO
ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER  THREE  HUNDRED
EIGHTY-NINE  OF  THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN, AS ADJUSTED.
SUCH RECALCULATION SHALL BE TREATED AS  A  MATHEMATICAL  ERROR  AND  THE
COMMISSIONER  MAY  ISSUE  A  NOTICE  AND  DEMAND TO THE TAXPAYER FOR THE
AMOUNT DUE AS A RESULT OF SUCH RECALCULATION.  THE  AMOUNT  BY  WHICH  A
TAXPAYER'S  INCOME  TAX  LIABILITY INCREASES AS A RESULT OF THE RECALCU-
LATION OF THE APPLICABLE TAX RATE PURSUANT TO THIS SECTION  MAY  NOT  BE
APPLIED  IN  ANY  WAY  AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S 5. Paragraph 1 of subsection (e) of section 1310 of the tax law,  as
amended  by  section  3  of part A of chapter 56 of the laws of 1998, is
amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state school tax reduction credit shall be allowed as  provided  in  the
following  tables. The credit shall be allowed against the taxes author-
ized by this article reduced by the credits permitted by  this  article.
If  the  credit exceeds the tax as so reduced, the taxpayer may receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay as an overpayment, without interest, the amount of such excess.  For
purposes  of this subsection, no credit shall be granted to (A) an indi-
vidual with respect to whom a deduction under subsection (c) of  section
one  hundred  fifty-one  of  the  internal  revenue code is allowable to

S. 6259--B                          7                         A. 9059--B

another taxpayer for the taxable year, OR (B)  A  TAXPAYER  WHO  OWES  A
PAST-DUE  STATE  TAX  LIABILITY,  AS THAT TERM IS DEFINED IN SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER, ON THE LAST DAY  OF  THE  TAXABLE
YEAR.  IF  A  TAXPAYER  WITH  A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS  CREDIT  SHALL
BE  TREATED  AS  A  MATHEMATICAL  ERROR AND THE COMMISSIONER MAY ISSUE A
NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT. THE AMOUNT BY WHICH A
TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT OF THE LOSS OF THE
TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE APPLIED IN ANY WAY AS  AN
OFFSET   AGAINST  THE  AMOUNT  OF  THE  TAXPAYER'S  PAST-DUE  STATE  TAX
LIABILITY.
  S 6. The administrative code of the city of New  York  is  amended  by
adding a new section 11-1704.2 to read as follows:
  S  11-1704.2  RECALCULATION  OF  TAX  RATE FOR TAXPAYERS WITH PAST-DUE
STATE TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABIL-
ITY, AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THE
TAX LAW, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
SUCH TAXPAYER UNDER SECTION 11-1701 OF THIS SUBCHAPTER FOR  THE  TAXABLE
YEAR  SHALL  BE RECALCULATED BY THE COMMISSIONER OF TAXATION AND FINANCE
SO AS TO ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER  THREE
HUNDRED  EIGHTY-NINE  OF  THE  LAWS OF NINETEEN HUNDRED NINETY-SEVEN, AS
ADJUSTED.  SUCH RECALCULATION SHALL BE TREATED AS A  MATHEMATICAL  ERROR
AND  THE  COMMISSIONER  OF  TAXATION  AND FINANCE MAY ISSUE A NOTICE AND
DEMAND TO THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT OF  SUCH  RECALCU-
LATION.  THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES
AS  A RESULT OF THE RECALCULATION OF THE APPLICABLE TAX RATE PURSUANT TO
THIS SECTION MAY NOT BE APPLIED IN ANY WAY  AS  AN  OFFSET  AGAINST  THE
AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABILITY.
  S 7. Paragraph 1 of subdivision (c) of section 11-1706 of the adminis-
trative  code of the city of New York, as amended by section 6 of part A
of chapter 56 of the laws of 1998, is amended to read as follows:
  (1) For taxable years beginning after nineteen hundred ninety-seven, a
state school tax reduction credit shall be allowed as  provided  in  the
following  tables. The credit shall be allowed against the taxes author-
ized by this article reduced by the credits permitted by  this  article.
If  the  credit exceeds the tax as so reduced, the taxpayer may receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay as an overpayment, without interest, the amount of such excess.  For
purposes of this subdivision, no credit shall be granted to (A) an indi-
vidual  with respect to whom a deduction under subsection (c) of section
one hundred fifty-one of the  internal  revenue  code  is  allowable  to
another  taxpayer  for  the  taxable  year, OR (B) A TAXPAYER WHO OWES A
PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS  DEFINED  IN  SECTION  ONE
HUNDRED  SEVENTY-ONE-Y  OF  THE  TAX LAW, ON THE LAST DAY OF THE TAXABLE
YEAR.  IF A TAXPAYER WITH A PAST-DUE STATE  TAX  LIABILITY  CLAIMS  THIS
CREDIT,  ANY  AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
BE TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER OF TAXATION  AND
FINANCE  MAY  ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT.
THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX  LIABILITY  INCREASES  AS  A
RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE
APPLIED  IN  ANY  WAY  AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S
PAST-DUE STATE TAX LIABILITY.
  S 8. Paragraph (a) of subdivision 3  of  section  54-f  of  the  state
finance  law,  as  added  by section 139 of part A of chapter 389 of the
laws of 1997, is amended to read as follows:

S. 6259--B                          8                         A. 9059--B

  (a) The amount of such reimbursement shall be estimated by the commis-
sioner of taxation and finance on or before December first of  the  year
preceding  the  state fiscal year during which such amount is to be paid
begins. The commissioner shall use the best available information at his
or her disposal to estimate such amount. In addition to such methods and
information  the commissioner may use in making such estimate, he or she
shall consult with the city department of finance during the preparation
of the determination of such amount.  SUCH REIMBURSEMENT SHALL DISREGARD
THE AMOUNT OF BENEFITS RECALCULATED PURSUANT TO SECTION THIRTEEN HUNDRED
FOUR-E OF THE TAX LAW AND CREDITS DENIED PURSUANT TO  PARAGRAPH  ONE  OF
SUBSECTION (E) OF SECTION THIRTEEN HUNDRED TEN OF THE TAX LAW.
  S  9.  This  act  shall take effect immediately; provided however that
sections four through seven of this act shall  apply  to  taxable  years
beginning on or after January 1, 2012.

                                 PART C

  Section  1.  The  article  heading  of  article  20 of the tax law, as
amended by chapter 71 of the  laws  of  1959,  is  amended  to  read  as
follows:
             TAX ON CIGARETTES, CIGARS AND TOBACCO PRODUCTS
  S  2.  Subdivision  2  of  section  470  of the tax law, as amended by
section 15 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  2.  "Tobacco  products."  Any  [cigar,  including  a little cigar, or]
tobacco, other than cigarettes AND CIGARS, intended for consumption  [by
smoking, chewing, or as snuff].
  S  3. Subdivision 6 of section 470 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
  6. ["Wholesale price." The established price for which a  manufacturer
sells  tobacco  products  to  a distributor, before the allowance of any
discount, trade allowance, rebate or other reduction.
  In the absence of such an established price, a manufacturer's  invoice
price of any tobacco product shall be presumptive evidence of the whole-
sale  price  of  such  tobacco  product, and in its absence the price at
which such tobacco products were purchased shall be presumed to  be  the
wholesale  price,  unless  evidence  of a lower wholesale price shall be
established or any industry standard of markups relating to the purchase
price in relation to the wholesale price shall be  established.]  "LOOSE
TOBACCO." ANY TOBACCO PRODUCTS, OTHER THAN SNUFF AND LITTLE CIGARS.
  S  4.  Subdivision  8  of  section  470  of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2005,  is  amended  to
read as follows:
  8.  "Wholesale dealer." Any person who (a) sells cigarettes, CIGARS or
tobacco products to retail dealers or  other  persons  for  purposes  of
resale,  or (b) owns, operates or maintains one or more cigarette, CIGAR
or tobacco product vending machines in, at or  upon  premises  owned  or
occupied by any other person, or (c) sells cigarettes, CIGARS or tobacco
products  to  an  Indian  nation  or tribe or to a reservation cigarette
seller on a qualified reservation.
  S 5. Subdivision 9 of section 470 of the tax law, as amended by  chap-
ter 61 of the laws of 1989, is amended to read as follows:
  9.  "Retail  dealer." Any person other than a wholesale dealer engaged
in selling cigarettes, CIGARS or tobacco products.
  S 6. Subdivision 12 of section 470 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:

S. 6259--B                          9                         A. 9059--B

  12. "Distributor." Any person who imports or  causes  to  be  imported
into  this state any CIGAR OR tobacco product (in excess of fifty cigars
or one pound of tobacco) for sale, or  who  manufactures  any  CIGAR  OR
tobacco  product  in  this  state,  and any person within or without the
state who is authorized by the commissioner [of taxation and finance] to
make returns and pay the tax on CIGARS OR tobacco products sold, shipped
or delivered by [him] SUCH PERSON to any person in the state.
  S 7. Subdivision 18 of section 470 of the tax law, as added by section
1  of part QQ-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
  18. "Snuff." Any finely cut, ground, or powdered tobacco that  is  not
intended  to be smoked. SNUFF INCLUDES BOTH MOIST AND DRY SNUFF, AND ANY
SMOKELESS TOBACCO PRODUCT SIMILAR IN COMPOSITION AND  MAKEUP  TO  SNUFF.
SNUFF DOES NOT INCLUDE CHEWING TOBACCOS SUCH AS PLUG OR TWIST TOBACCO.
  S  8.  Subdivision  19  of  section  470 of the tax law, as amended by
section 17 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  19.  "Cigar."  Any  roll  of tobacco wrapped in leaf tobacco or in any
substance containing tobacco (other than any roll of tobacco that  is  a
cigarette  as defined in subdivision one of this section). "Cigar" shall
NOT include[, except where expressly excluded,] any little cigar.
  S 9. Section 470 of the tax law is amended by adding a new subdivision
20 to read as follows:
  20. "RECEIPT." THE AMOUNT RECEIVED IN OR BY REASON OF ANY SALE, CONDI-
TIONAL OR OTHERWISE, OF CIGARS. RECEIPT IS EXPRESSED IN  MONEY,  WHETHER
PAID  IN  CASH,  CREDIT  OR PROPERTY OF ANY KIND OR NATURE, AND SHALL BE
DETERMINED WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF FEDERAL  EXCISE
TAXES,  MANUFACTURER'S COUPONS, THE COST OF THE SERVICE SOLD OR THE COST
OF MATERIALS, LABOR  OR  SERVICES  USED  OR  OTHER  COSTS,  INTEREST  OR
DISCOUNT PAID OR ANY OTHER EXPENSES WHATSOEVER.
  S  10. Paragraph (a) of subdivision 1 of section 471-b of the tax law,
as amended by section 18 of part D of chapter 134 of the laws  of  2010,
is amended to read as follows:
  (a)  Such  tax  on LOOSE tobacco [products other than snuff and little
cigars] shall be at the rate of [seventy-five percent of  the  wholesale
price]  FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH  TAX  SHALL  BE  COMPUTED
BASED  ON  THE NET WEIGHT AS LISTED BY THE MANUFACTURER, and is intended
to be imposed only once upon the sale of  any  LOOSE  tobacco  [products
other than snuff and little cigars].
  S 11. Section 471-b of the tax law is amended by adding a new subdivi-
sion 4 to read as follows:
  4.  THE  TAX  IMPOSED  BY THIS SECTION SHALL NOT APPLY TO CIGARS ON OR
AFTER, JUNE FIRST, TWO THOUSAND TWELVE.
  S 12. Subdivision (a) of section 471-c of the tax law, as  amended  by
section  2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i)
and (ii) as amended by section  20  and  paragraph  (iii)  as  added  by
section  21  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  (a) There is hereby imposed and shall be paid a  tax  on  all  tobacco
products  used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use  of  [two
hundred  fifty  cigars or less, or] five pounds or less of tobacco other
than roll-your-own tobacco[,] or thirty-six ounces or less of roll-your-

S. 6259--B                         10                         A. 9059--B

own tobacco brought into the state on, or  in  the  possession  of,  any
person.
  (i)  Such  tax  on LOOSE tobacco [products other than snuff and little
cigars] shall be at the rate of [seventy-five percent of  the  wholesale
price]  FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH  TAX  SHALL  BE  COMPUTED
BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER.
  (ii)  Such  tax on snuff shall be at the rate of two dollars per ounce
and a proportionate rate on any fractional parts of an  ounce,  provided
that  cans or packages of snuff with a net weight of less than one ounce
shall be taxed at the equivalent rate of cans or packages  weighing  one
ounce.  Such  tax shall be computed based on the net weight as listed by
the manufacturer.
  (iii) Such tax on little cigars shall be at the same rate  imposed  on
cigarettes  under  this  article and is intended to be imposed only once
upon the sale of any little cigars.
  S 13. The tax law is amended by adding a new section 471-f to read  as
follows:
  S 471-F. IMPOSITION OF CIGAR TAX. 1. THERE IS HEREBY IMPOSED AND THERE
SHALL BE PAID A TAX OF FIFTY PERCENT UPON THE RECEIPTS FROM EVERY RETAIL
SALE OF CIGARS, EXCEPT THAT NO TAX SHALL BE IMPOSED ON CIGARS SOLD UNDER
SUCH  CIRCUMSTANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH TAX,
OR SOLD TO THE UNITED STATES, OR SOLD TO OR BY A VOLUNTARY UNINCORPORAT-
ED ORGANIZATION OF THE ARMED FORCES OF THE  UNITED  STATES  OPERATING  A
PLACE  FOR  THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE
APPROPRIATE EXECUTIVE  AGENCY  OF  THE  UNITED  STATES,  TO  THE  EXTENT
PROVIDED  IN  SUCH  REGULATIONS  AND POLICY STATEMENTS OF SUCH AN AGENCY
APPLICABLE TO SUCH SALES.  SUCH TAX IS INTENDED TO BE IMPOSED ONLY  ONCE
UPON THE SALE OF ANY CIGARS. IT SHALL BE PRESUMED THAT ALL CIGARS WITHIN
THE  STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
BURDEN OF PROOF THAT ANY CIGARS ARE NOT TAXABLE HEREUNDER SHALL BE  UPON
THE PERSON IN POSSESSION THEREOF.
  2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
TAX SHALL BE UPON THE CONSUMER, AND THAT ANY RETAIL DEALER WHO SHALL PAY
THE  TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER OR
CONSUMER.
  3. THE DISTRIBUTOR SHALL BE LIABLE UNDER SECTION FOUR  HUNDRED  SEVEN-
TY-ONE-H  OF  THIS ARTICLE FOR THE PREPAYMENT OF THE CIGAR TAX ON CIGARS
WHICH HE OR SHE IMPORTS OR CAUSES TO BE  IMPORTED  INTO  THE  STATE,  OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED  BY  THE  COMMISSIONER  TO MAKE RETURNS AND PREPAY THE CIGAR TAX ON
CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO  ANY  PERSON  IN  THE
STATE  SHALL BE LIABLE FOR THE PREPAYMENT OF THE CIGAR TAX ON ALL CIGARS
SO SOLD, SHIPPED OR DELIVERED.
  4. SEPARATE STATEMENT OF TAX.  DISTRIBUTORS,  WHOLESALE  DEALERS,  AND
RETAIL  DEALERS  REQUIRED  TO COLLECT OR PASS THROUGH THE TAX IMPOSED BY
THIS SECTION SHALL STATE, CHARGE, AND SHOW THAT TAX SEPARATELY FROM  THE
PRICE  OR CHARGE, AND ALSO SEPARATELY FROM ANY OTHER TAX IMPOSED BY THIS
ARTICLE OR OTHER LAW ON ANY  SALES  SLIP,  INVOICE,  RECEIPT,  OR  OTHER
STATEMENT  OR  MEMORANDUM OF THE PRICE OR CHARGE, PAID OR PAYABLE, GIVEN
TO THE CUSTOMER.
  S 14. The tax law is amended by adding a new section 471-g to read  as
follows:
  S 471-G. USE TAX ON CIGARS.  (A) THERE IS HEREBY IMPOSED ON ALL CIGARS
USED  IN  THE  STATE  BY  ANY  PERSON,  EXCEPT THAT NO SUCH TAX SHALL BE
IMPOSED (1) IF THE TAX PROVIDED IN SECTION FOUR HUNDRED SEVENTY-ONE-F OF

S. 6259--B                         11                         A. 9059--B

THIS ARTICLE IS PAID, OR (2) ON THE USE OF CIGARS WHICH ARE EXEMPT  FROM
THE  TAX  IMPOSED  BY SAID SECTION, OR (3) ON THE USE OF FIFTY CIGARS OR
LESS BROUGHT INTO THE STATE ON, OR IN THE  POSSESSION  OF,  ANY  PERSON.
THERE  IS  HEREBY IMPOSED AND THERE SHALL BE PAID A TAX OF FIFTY PERCENT
UPON ALL RECEIPTS PAID OR REQUIRED TO BE PAID FROM EVERY RETAIL SALE  OF
CIGARS.
  (B) WITHIN TWENTY-FOUR HOURS AFTER LIABILITY FOR THE TAX ACCRUES, EACH
SUCH  PERSON  SHALL  FILE WITH THE COMMISSIONER A RETURN IN SUCH FORM AS
THE COMMISSIONER MAY PRESCRIBE TOGETHER WITH A  REMITTANCE  OF  THE  TAX
SHOWN  TO  BE  DUE THEREON. FOR PURPOSES OF THIS ARTICLE, THE WORD "USE"
MEANS THE EXERCISE OF ANY RIGHT OR  POWER  ACTUAL  OR  CONSTRUCTIVE  AND
SHALL  INCLUDE BUT IS NOT LIMITED TO THE RECEIPT, STORAGE OR ANY KEEPING
OR RETENTION FOR ANY LENGTH OF TIME, BUT SHALL  NOT  INCLUDE  POSSESSION
FOR SALE. ALL THE OTHER PROVISIONS OF THIS ARTICLE, IF NOT INCONSISTENT,
SHALL  APPLY TO THE ADMINISTRATION AND ENFORCEMENT OF THE TAX IMPOSED BY
THIS SECTION IN THE SAME MANNER AS IF THE LANGUAGE  OF  SAID  PROVISIONS
HAD BEEN INCORPORATED IN FULL INTO THIS SECTION.
  S  15. The tax law is amended by adding a new section 471-h to read as
follows:
  S 471-H. PREPAYMENT OF CIGAR TAX.  (A)(1) EVERY DISTRIBUTOR SHALL PAY,
AS A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY SECTION FOUR  HUNDRED
SEVENTY-ONE-F  OF  THIS  ARTICLE  AND  PURSUANT TO THE AUTHORITY OF THIS
ARTICLE, A TAX ON CIGARS POSSESSED FOR SALE OR USE IN THIS STATE, EXCEPT
NO TAX SHALL BE REQUIRED TO BE PREPAID  ON  CIGARS  SOLD  UNDER  CIRCUM-
STANCES  THAT  THIS  STATE IS WITHOUT POWER TO IMPOSE SUCH PREPAYMENT OR
SOLD TO THE UNITED STATES OR SOLD TO OR BY  A  VOLUNTARY  UNINCORPORATED
ORGANIZATION  OF THE ARMED FORCES OF THE UNITED STATES OPERATING A PLACE
FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE  APPRO-
PRIATE  EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT PROVIDED IN
SUCH REGULATIONS AND WRITTEN POLICY STATEMENTS OF SUCH AN AGENCY  APPLI-
CABLE TO SUCH SALES.
  (2)  THE  COMMISSIONER  MAY, IN THE COMMISSIONER'S DISCRETION, REQUIRE
ANY DISTRIBUTOR TO FILE WITH THE DEPARTMENT A BOND ISSUED  BY  A  SURETY
COMPANY  APPROVED  BY  THE  SUPERINTENDENT  OF  FINANCIAL SERVICES AS TO
SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS  IN  THE
STATE  OR  OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN SUCH AMOUNT
AS THE COMMISSIONER MAY FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE  FROM
SUCH  DISTRIBUTOR  PURSUANT TO THIS SECTION. IF SECURITIES ARE DEPOSITED
AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE
CUSTODY OF THE COMMISSIONER AND MAY BE SOLD BY THE  COMMISSIONER  IF  IT
BECOMES  NECESSARY  TO  DO SO IN ORDER TO RECOVER ANY SUMS DUE FROM SUCH
DISTRIBUTOR PURSUANT TO THIS SECTION, BUT NO  SUCH  SALE  SHALL  BE  HAD
UNTIL  AFTER  SUCH DISTRIBUTOR SHALL HAVE HAD AN OPPORTUNITY TO LITIGATE
THE VALIDITY OF ANY PREPAYMENT OF TAX IF IT ELECTS TO DO  SO.  UPON  ANY
SUCH  SALE,  THE  SURPLUS, IF ANY, ABOVE THE SUMS DUE UNDER THIS SECTION
SHALL BE RETURNED TO SUCH DISTRIBUTOR.
  (3) WHERE CIGARS ARE IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE,
OR MANUFACTURED IN THE STATE, THE AMOUNT OF THE CIGAR TAX REQUIRED TO BE
PREPAID PURSUANT TO THIS SECTION SHALL BE TWENTY CENTS ON EACH CIGAR.
  (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE  TAXES  REQUIRED
TO  BE  PREPAID  PURSUANT  TO  THIS  SECTION  SHALL  BE ADMINISTERED AND
COLLECTED IN A LIKE MANNER AS THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED
SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS  ARTICLE.  ALL  THE
PROVISIONS  OF  THIS  ARTICLE  RELATING TO OR APPLICABLE TO THE ADMINIS-
TRATION, COLLECTION  AND  DISPOSITION  OF  THE  TAXES  IMPOSED  BY  SUCH
SECTIONS  SHALL  APPLY  TO  THE  TAX  REQUIRED  TO BE PREPAID UNDER THIS

S. 6259--B                         12                         A. 9059--B

SECTION SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH PREPAY-
MENTS OF TAX WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH
MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE
TAX  SO  IMPOSED.  SUCH  PROVISIONS  SHALL APPLY WITH THE SAME FORCE AND
EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL
IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON-
SISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO  THE  TAX
REQUIRED  TO  BE  PREPAID BY THIS SECTION. FOR PURPOSES OF THIS SECTION,
ANY REFERENCE IN THIS ARTICLE TO THE TAX OR TAXES  IMPOSED  BY  SECTIONS
FOUR  HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTI-
CLE SHALL BE DEEMED TO REFER TO THE TAX REQUIRED TO BE PREPAID  PURSUANT
TO THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
  (C)  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO  THIS  SECTION  MORE  THAN
ONCE  UPON  CIGARS POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN THE
PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL HAVE BEEN
SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED  SEVEN-
TY-ONE-F  OR  FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE AND PURSUANT TO
THE AUTHORITY OF THIS ARTICLE WITH RESPECT TO THE RETAIL SALE OR THE USE
OF CIGARS. NOTHING IN THIS SECTION SHALL  MODIFY  OR  AFFECT  THE  TAXES
IMPOSED  BY  SECTIONS FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVEN-
TY-ONE-G OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE SALE, OR TO THE
USE, OF SUCH CIGARS.
  (D) THE DISTRIBUTOR SHALL BE LIABLE FOR  THE  PREPAID  TAX  ON  CIGARS
WHICH  HE  OR  SHE  IMPORTS  OR CAUSES TO BE IMPORTED INTO THE STATE, OR
WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
IZED BY THE COMMISSIONER TO MAKE RETURNS AND  PAY  THE  PREPAID  TAX  ON
CIGARS  SOLD,  SHIPPED  OR  DELIVERED BY HIM OR HER TO ANY PERSON IN THE
STATE SHALL BE LIABLE FOR THE PREPAID TAX ON ALL CIGARS SO SOLD, SHIPPED
OR DELIVERED.
  S 16. The tax law is amended by adding a new section 471-i to read  as
follows:
  S 471-I. REFUNDS AND CREDITS WITH RESPECT TO CIGARS.
  (A)  RETAIL  DEALER.    (1)  A RETAIL DEALER OF CIGARS WHO OR WHICH IS
REQUIRED  TO  COLLECT  THE  TAXES  IMPOSED  BY  SECTION   FOUR   HUNDRED
SEVENTY-ONE-F  OF  THIS  ARTICLE  SHALL  BE  ALLOWED  A REFUND OR CREDIT
AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED  TO  THE
COMMISSIONER  PURSUANT  TO THE PROVISIONS OF SECTION FOUR HUNDRED SEVEN-
TY-ONE-F OF THIS ARTICLE UPON THE RETAIL SALE OF CIGARS IN THE AMOUNT OF
THE TAX ON SUCH CIGARS PREPAID BY OR PASSED THROUGH TO AND  INCLUDED  IN
THE  PRICE  PAID  BY  SUCH  RETAIL  DEALER PURSUANT TO THE PROVISIONS OF
SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE.
  (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH  RETAIL  DEALER  FOR
THE  TAX  PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID
BY SUCH RETAIL DEALER UPON ANY CIGARS  PURSUANT  TO  THE  PROVISIONS  OF
SECTION  FOUR  HUNDRED  SEVENTY-ONE-F OF THIS ARTICLE IF SUCH CIGARS ARE
SOLD AT RETAIL BY SUCH RETAIL DEALER UNDER CIRCUMSTANCES WHERE THE TAXES
IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE AND PURSU-
ANT TO THE AUTHORITY OF THIS ARTICLE ARE NOT REQUIRED BY THE  PROVISIONS
OF THIS ARTICLE TO BE COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL
SALE THEREOF.
  (B)  EXPORT,  DESTRUCTION, TAX PAID IN ERROR. WHENEVER ANY CIGARS UPON
WHICH THE PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED  SEVENTY-ONE-H  OF
THIS  ARTICLE  HAS BEEN PAID HAVE BEEN SOLD AND SHIPPED TO ANOTHER STATE
FOR SALE OR USE THERE OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED  THAT

S. 6259--B                         13                         A. 9059--B

ANY   TAX   REQUIRED   TO  BE  PREPAID  BY  SUCH  SECTION  FOUR  HUNDRED
SEVENTY-ONE-H OF THIS  ARTICLE  SHALL  HAVE  BEEN  PAID  IN  ERROR,  THE
DISTRIBUTOR OR DEALER, AS THE CASE MAY BE, SHALL BE ENTITLED TO A REFUND
OR  CREDIT  OF  THE ACTUAL AMOUNT OF PREPAID TAX SO PAID WITH RESPECT TO
CIGARS WHICH WILL NOT BE POSSESSED FOR SALE OR USE IN THIS STATE.
  (C) REFUNDS OF  THE  TAX  REQUIRED  TO  BE  PREPAID  PURSUANT  TO  THE
PROVISIONS  OF  SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL
BE ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR PASSED THROUGH TO  THE
RETAIL  DEALER,  OR  THE  PURCHASER  OR  USER, EXCEEDS THE AMOUNT OF TAX
REQUIRED TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED  BY
THE PROVISIONS OF THIS ARTICLE.
  (D) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
EXTENT  THAT  THE  TAX  REQUIRED  TO BE PREPAID PURSUANT TO SECTION FOUR
HUNDRED SEVENTY-ONE-H OF THIS ARTICLE HAS  BEEN  PREPAID  BY  OR  PASSED
THROUGH TO SUCH RETAIL DEALER, PURCHASER OR USER, BUT ONLY TO THE EXTENT
THAT THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTI-
CLE  TOGETHER WITH THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-G
OF THIS ARTICLE REQUIRED TO BE PAID, COLLECTED  AND  REMITTED  HAS  BEEN
PAID, COLLECTED AND REMITTED.
  (E)  SUCH  REFUNDS  AND  CREDITS SHALL BE SUBJECT TO THE PROVISIONS OF
SECTION FOUR HUNDRED SEVENTY-SIX OF THIS ARTICLE AS IF SUCH SECTION  WAS
INCORPORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
REFUNDS  AND CREDITS AUTHORIZED BY THIS SECTION INCLUDING THE PERIODS OF
LIMITATIONS ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER;  PROVIDED,
HOWEVER,  THAT,  AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-SIX OF THIS
ARTICLE, NO INTEREST SHALL BE ALLOWED OR PAID UPON ANY  REFUND  MADE  OR
CREDIT ALLOWED PURSUANT TO SUBDIVISIONS (A) AND (B) OF THIS SECTION. THE
COMMISSIONER  SHALL  PROCESS APPLICATIONS FOR REFUND AS EXPEDITIOUSLY AS
POSSIBLE.
  S 17. The tax law is amended by adding a new section 471-j to read  as
follows:
  S  471-J.  SPECIAL  PROVISION  AS  TO  IMPOSITION  OF TAXES ON CERTAIN
CIGARS. IF A PERSON SHALL RECEIVE ANY CIGARS,  UPON  WHICH  CIGARS  THIS
STATE WAS WITHOUT POWER TO IMPOSE THE TAXES UNDER THIS ARTICLE, AND SUCH
PERSON  SHALL  THEREAFTER  POSSESS  SUCH CIGARS FOR SALE OR USE ANY SUCH
CIGARS IN SUCH MANNER AND UNDER SUCH CIRCUMSTANCES AS  MAY  SUBJECT  THE
SAME  TO  THE TAXING POWER OF THIS STATE WITH RESPECT TO SUCH POSSESSION
FOR SALE OR USE, SUCH PERSON SHALL BE LIABLE  FOR  THE  TAX  IMPOSED  BY
SECTION FOUR HUNDRED SEVENTY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS
ARTICLE,  AS THE CASE MAY BE WITH RESPECT TO SUCH SALE OR USE, AND SHALL
MAKE THE SAME REPORTS AND RETURNS, PAY THE SAME TAXES AND BE SUBJECT  TO
ALL  OTHER PROVISIONS OF THIS ARTICLE RELATING TO DISTRIBUTORS OR RETAIL
DEALERS, EXCEPT  THAT  SUCH  A  PERSON  SHALL  NOT  BE  SUBJECT  TO  THE
PROVISIONS  OF SECTIONS FOUR HUNDRED SEVENTY-TWO AND FOUR HUNDRED EIGHTY
OF THIS ARTICLE IF SUCH PERSON DOES NOT OFFER CIGARS FOR SALE.
  S 18. The tax law is amended by adding a new section 471-k to read  as
follows:
  S  471-K.  COLLECTION  OF  TAX  FROM  CUSTOMER;  FILING OF RETURNS AND
PAYMENT.
  (A)(1) EVERY RETAIL DEALER SHALL COLLECT THE TAX  IMPOSED  BY  SECTION
FOUR  HUNDRED  SEVENTY-ONE-F  OF  THIS  ARTICLE  FROM  THE CUSTOMER WHEN
COLLECTING THE RECEIPT TO WHICH IT APPLIES. EACH CUSTOMER SHALL BE GIVEN
SOME INDICIA OF SALE, INCLUDING SALES SLIP, INVOICE,  RECEIPT  OR  OTHER
STATEMENT  OR MEMORANDUM OF THE PRICE, UPON WHICH THE TAX SHALL BE STAT-
ED, CHARGED AND SHOWN SEPARATELY.

S. 6259--B                         14                         A. 9059--B

  (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL  THE  PROVISIONS
OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER RELATING TO THE PERSONAL LIABIL-
ITY FOR THE TAX, ADMINISTRATION AND COLLECTION AND DETERMINATION OF TAX,
INCLUDING  SECTION  ELEVEN HUNDRED THIRTY-EIGHT OF THIS CHAPTER RELATING
TO  DETERMINATION OF TAX BUT NOT INCLUDING SECTION ELEVEN HUNDRED FORTY-
FIVE OF THIS CHAPTER, SHALL APPLY TO THE TAX  IMPOSED  BY  SECTION  FOUR
HUNDRED  SEVENTY-ONE-F  OF  THIS ARTICLE IN THE SAME MANNER AND WITH THE
SAME FORCE AND EFFECT AS IF THE LANGUAGE  OF  SUCH  PROVISIONS  OF  SUCH
ARTICLE  TWENTY-EIGHT  HAD  BEEN INCORPORATED IN FULL INTO THIS ARTICLE,
EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
A PROVISION OF THIS SECTION OR IS NOT RELEVANT  THERETO  AND  WITH  SUCH
OTHER  MODIFICATIONS  AS  MAY BE NECESSARY TO ADAPT THE LANGUAGE OF SUCH
PROVISIONS TO THE PROVISIONS OF  THIS  SECTION.  PROVIDED,  HOWEVER  ALL
TAXES,  INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER
UNDER SECTIONS FOUR HUNDRED SEVENTY-ONE-F, FOUR  HUNDRED  SEVENTY-ONE-G,
AND  FOUR  HUNDRED  SEVENTY-ONE-H OF THIS ARTICLE SHALL BE DEPOSITED AND
DISPOSED OF PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE.
PROVIDED, THE COMMISSIONER MAY REQUIRE RETURNS TO BE FILED WITH  HIM  OR
HER  AT  SUCH  TIMES  AND  CONTAINING  SUCH INFORMATION AS HE OR SHE MAY
PRESCRIBE.
  (B) (1) (I) NO PERSON SHALL PURCHASE CIGARS IN THIS STATE, EXCLUDING A
PURCHASE AT RETAIL, UNLESS THE TAX REQUIRED TO  BE  PREPAID  BY  SECTION
FOUR  HUNDRED  SEVENTY-ONE-H  OF  THIS  ARTICLE  HAS  BEEN  ASSUMED BY A
DISTRIBUTOR REGISTERED UNDER THIS ARTICLE IN ACCORDANCE WITH  A  CERTIF-
ICATION  UNDER  THIS PARAGRAPH OR PAID BY SUCH DISTRIBUTOR, AND, IN EACH
OF SUCH INSTANCES, IS PASSED THROUGH TO SUCH PURCHASER. IN  ADDITION  TO
ANY  OTHER  CIVIL AND CRIMINAL PENALTIES WHICH MAY APPLY, ANY PERSON WHO
PURCHASES CIGARS IN VIOLATION OF THIS SUBPARAGRAPH SHALL BE JOINTLY  AND
SEVERALLY  LIABLE  TO PAY THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR
HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITH RESPECT TO SUCH CIGARS.
  (II) FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE  AND
TO  PREVENT EVASION OF THE TAX ON CIGARS IMPOSED BY AND PURSUANT TO THIS
ARTICLE, IT SHALL BE PRESUMED THAT ALL CIGARS IMPORTED, MANUFACTURED  OR
SOLD,  RECEIVED  OR POSSESSED IN THE STATE IS INTENDED FOR USE, DISTRIB-
UTION, STORAGE OR SALE IN THE STATE AND SUBJECT TO THE TAX  REQUIRED  TO
BE  PREPAID  BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE UNTIL
THE CONTRARY IS ESTABLISHED. IT  SHALL  BE  FURTHER  PRESUMED  THAT  ALL
CIGARS  SO  IMPORTED,  MANUFACTURED,  SOLD, RECEIVED OR POSSESSED IN THE
STATE BY ANY PERSON ARE SUBJECT TO THE TAX REQUIRED TO BE PREPAID  UNDER
SECTION  FOUR  HUNDRED  SEVENTY-ONE-H OF THIS ARTICLE AND SUCH PERSON IS
RESPONSIBLE FOR SUCH PREPAYMENT. THE BURDEN OF PROVING THAT  ANY  CIGARS
ARE  NOT  SO  SUBJECT  SHALL  BE UPON THE PERSON SO RESPONSIBLE FOR SUCH
PREPAYMENT WITH RESPECT TO SUCH CIGARS.
  (III) UPON EACH SALE OF CIGARS, OTHER THAN A SALE AT RETAIL, THE SELL-
ER MUST GIVE TO THE PURCHASER AND THE PURCHASER SHALL  RECEIVE,  AT  THE
TIME  OF DELIVERY OF SUCH CIGARS, A CERTIFICATION CONTAINING SUCH INFOR-
MATION AS THE COMMISSIONER SHALL REQUIRE WHICH SHALL INCLUDE A STATEMENT
TO THE EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR REGISTERED UNDER  THIS
ARTICLE,  THAT  HE  OR  SHE  HAS  ASSUMED THE PAYMENT OF OR PAID THE TAX
REQUIRED TO BE PREPAID BY SECTION FOUR  HUNDRED  SEVENTY-ONE-H  OF  THIS
ARTICLE  AND, IN EACH CASE, IS PASSING THROUGH SUCH TAX OR (B) THAT SUCH
SELLER IS PASSING THROUGH SUCH TAX WHICH WAS SO  PREVIOUSLY  ASSUMED  OR
PAID  BY  AN IDENTIFIED DISTRIBUTOR OR WHOLESALE DEALER REGISTERED UNDER
THIS ARTICLE, AND PASSED THROUGH TO HIM OR HER.
  (IV)  IF  THE  CERTIFICATION  REQUIRED  BY  THIS  PARAGRAPH  HAS  BEEN
FURNISHED  TO  THE  PURCHASER  BY THE SELLER AT DELIVERY AND ACCEPTED IN

S. 6259--B                         15                         A. 9059--B

GOOD FAITH, THE BURDEN OF PROVING THAT THE TAX REQUIRED TO  BE  PAID  BY
SECTION  FOUR  HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS ASSUMED OR PAID
BY A DISTRIBUTOR REGISTERED UNDER THIS ARTICLE AND PASSED THROUGH  SHALL
BE SOLELY ON THE SELLER.
  (V)  WHERE  THE  CERTIFICATION  REQUIRED  UNDER  THIS PARAGRAPH IS NOT
FURNISHED BY THE SELLER AT DELIVERY OF CIGARS, IT SHALL BE PRESUMED THAT
THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H  OF
THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR REGISTERED AS
SUCH  UNDER  THIS ARTICLE AND THAT THE PURCHASER IN SUCH CASE IS JOINTLY
AND SEVERALLY LIABLE FOR THE TAX.
  S 19. Subdivision 3 of section 472 of the tax law, as added by chapter
61 of the laws of 1989 and as further amended by section 104 of  part  A
of chapter 62 of the laws of 2011, is amended to read as follows:
  3.  The  commissioner [of taxation and finance] may appoint dealers in
CIGARS  AND  tobacco  products,  manufacturers  of  CIGARS  AND  tobacco
products  and  other persons within or without the state as distributors
and may authorize them to make returns and to pay the tax on CIGARS  AND
tobacco products sold, shipped or delivered by them to any person in the
state.  The  commissioner  may,  in  his  OR HER discretion, require the
deposit of a bond issued by a surety company approved by the superinten-
dent of financial services as to solvency and responsibility and author-
ized to transact business in this state, or other security acceptable to
the commissioner in an amount and form satisfactory to him OR HER  as  a
condition  of appointing any such person as a distributor. If securities
are deposited as security under this subdivision, such securities  shall
be kept in the custody of the commissioner [of taxation and finance] and
may  be  sold  by  the  commissioner if it becomes necessary so to do in
order to recover any sums due from such  distributor  pursuant  to  this
article,  but  no  such  sale  shall be had until after such distributor
shall have had an opportunity to litigate the validity of any tax if  it
elects so to do. Upon any such sale, the surplus, if any, above the sums
due under this article shall be returned to such distributor.
  S 20. Section 473-a of the tax law, as added by chapter 61 of the laws
of 1989, is amended to read as follows:
  S  473-a.  Returns  and payment of CIGARS PREPAID AND tobacco products
[tax] TAXES by distributors.   1. (A) Every  distributor  shall,  on  or
before  the  twentieth day of each month, file with the commissioner [of
taxation and finance] a return on forms to be prescribed  and  furnished
by  the  commissioner, showing the quantity and [wholesale price] WEIGHT
of all tobacco products OR QUANTITY OF CIGARS imported or caused  to  be
imported  into  the  state by him OR HER or manufactured in the state by
him OR HER, during  the  preceding  calendar  month.  Every  distributor
authorized by the commissioner to make returns and pay the tax on CIGARS
OR  tobacco  products  sold,  shipped  or delivered by him OR HER to any
person in the state shall file a return showing the quantity and [whole-
sale price] WEIGHT of all tobacco products so sold, shipped or delivered
during the preceding calendar month. Provided, however, the commissioner
may, if he OR SHE deems it necessary in order to insure the  payment  of
the  taxes  imposed  by this article, require returns to be made at such
times and covering such periods as he OR SHE may deem necessary, and, by
regulation, may permit the filing of returns on a quarterly, semi-annual
or annual basis, or may waive the filing of returns by a distributor for
such time and upon such terms as he OR SHE may deem proper if  satisfied
that  no tax imposed by this article is or will be payable by him OR HER
during the time for which returns are waived. Such returns shall contain
such further information as the commissioner may require.

S. 6259--B                         16                         A. 9059--B

  (B) EVERY DISTRIBUTOR SHALL, ON OR BEFORE THE TWENTIETH  DAY  OF  EACH
MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED AND
FURNISHED  BY  THE  COMMISSIONER,  SHOWING  THE  QUANTITY  OF ALL CIGARS
IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM OR HER OR  MANU-
FACTURED  IN  THE  STATE  BY  HIM  OR HER, DURING THE PRECEDING CALENDAR
MONTH. EVERY DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER TO MAKE  RETURNS
AND  PAY  THE  CIGAR PREPAID TAX ON CIGARS SOLD, SHIPPED OR DELIVERED BY
HIM OR HER TO ANY PERSON IN THE STATE SHALL FILE A  RETURN  SHOWING  THE
QUANTITY  OF ALL CIGARS SO SOLD, SHIPPED OR DELIVERED DURING THE PRECED-
ING CALENDAR MONTH. PROVIDED, HOWEVER, THE COMMISSIONER MAY,  IF  HE  OR
SHE  DEEMS  IT  NECESSARY  IN  ORDER  TO INSURE THE PAYMENT OF THE CIGAR
PREPAID TAX IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE AT  SUCH
TIMES AND COVERING SUCH PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY
REGULATION, MAY PERMIT THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL
OR ANNUAL BASIS, OR MAY WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR
SUCH  TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATISFIED
THAT NO CIGAR PREPAID TAX IMPOSED BY THIS ARTICLE IS OR WILL BE  PAYABLE
BY HIM OR HER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS
SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
  2.  Every distributor shall pay to the commissioner with the filing of
such return the tax on CIGARS OR tobacco products for such month imposed
under this article.
  S 21. Subdivisions 2, 3 and 4 of section 474 of the tax law,  subdivi-
sion  2  as amended by chapter 552 of the laws of 2008, subdivision 3 as
added and subdivision 4 as amended by chapter 61 of the  laws  of  1989,
are amended to read as follows:
  2. Every person who shall possess or transport more than [two hundred]
fifty  cigars, or more than five pounds of tobacco other than roll-your-
own tobacco[,] or more than thirty-six ounces of  roll-your-own  tobacco
upon  the  public  highways,  roads  or  streets  of the state, shall be
required to have in [his] SUCH PERSON'S actual  possession  invoices  or
delivery  tickets  for such CIGARS OR tobacco products. Such invoices or
delivery tickets shall show the name and address  of  the  consignor  or
seller,  the  name  and  address  of  the  consignee  or  purchaser, the
quantity, WEIGHT and brands of the CIGARS  OR  tobacco  products  trans-
ported,  and  the name and address of the person who has or shall assume
the payment of the tax [and the wholesale price]  or  the  tax  paid  or
payable. The absence of such invoices or delivery tickets shall be prima
facie  evidence  that  such  person  is  a  dealer  in CIGARS OR tobacco
products in this state and subject to the requirements of this article.
  3. Every dealer or distributor or employee thereof,  or  other  person
acting on behalf of a dealer or distributor, who shall possess or trans-
port  more  than fifty cigars or more than one pound of tobacco upon the
public highways, roads or streets of the state,  shall  be  required  to
have  in  his  OR HER actual possession invoices or delivery tickets for
such CIGARS OR tobacco products. Such invoices or delivery tickets shall
show the name and address of the  consignor  or  seller,  the  name  and
address  of  the consignee or purchaser, the quantity, WEIGHT and brands
of the CIGARS OR tobacco products transported, and the name and  address
of  the  person  who has or shall assume the payment of the tax [and the
wholesale price] or the  tax  paid  or  payable.  The  absence  of  such
invoices  or delivery tickets shall be prima facie evidence that the tax
imposed by this article on CIGARS OR tobacco products has not been  paid
and is due and owing.
  4.  At  the  time of delivering cigarettes to any person each agent or
wholesale dealer, and at  the  time  of  delivering  CIGARS  OR  tobacco

S. 6259--B                         17                         A. 9059--B

products to any person each distributor or wholesale dealer of CIGARS OR
tobacco  products,  shall make a true duplicate invoice showing the date
of delivery, the number of packages and number of  cigarettes  contained
therein,  in  each  shipment  of cigarettes delivered, and the items and
quantity and [wholesale price] WEIGHT of each item in each  shipment  of
tobacco  products  OR  QUANTITY OF CIGARS delivered, and the name of the
purchaser to whom delivery is made, and shall  retain  the  same  for  a
period  of  three years subject to the use and inspection of the commis-
sioner [of taxation and finance]. Each dealer shall procure  and  retain
invoices  showing  the  number  of  packages  and  number  of cigarettes
contained therein, in each shipment of cigarettes  received  by  him  OR
HER,  and  the  items  and quantity and [wholesale price] WEIGHT of each
item in each shipment of CIGARS OR tobacco products received by  him  OR
HER, the date thereof, and the name of the shipper, and shall retain the
same  for  a  period of three years subject to the use and inspection of
the commissioner [of taxation and finance]. The commissioner  [of  taxa-
tion  and  finance]  by regulation may provide that whenever cigarettes,
CIGARS or tobacco products are shipped  into  the  state,  the  railroad
company,  express  company,  trucking  company  or  other public carrier
transporting any shipment thereof shall file with the  commissioner  [of
taxation  and  finance] a copy of the freight bill within ten days after
the delivery in the state of each shipment. All dealers  shall  maintain
and  keep  for a period of three years such other records of cigarettes,
CIGARS or tobacco products received, sold or delivered within the  state
as  may  be  required by the commissioner [of taxation and finance]. The
commissioner [of taxation and finance] is hereby authorized  to  examine
the  books,  papers,  invoices  and  other  records  of  any  person  in
possession, control or  occupancy  of  any  premises  where  cigarettes,
CIGARS or tobacco products are placed, stored, sold or offered for sale,
and the equipment of any such person pertaining to the stamping of ciga-
rettes  or  the  sale  and  delivery  of  cigarettes,  CIGARS or tobacco
products taxable under this article, as well as the stock of cigarettes,
CIGARS or tobacco products in any such premises or  vehicle.  To  verify
the  accuracy of the tax imposed and assessed by this article, each such
person is hereby directed and required to give to the  commissioner  [of
taxation and finance] or his OR HER duly authorized representatives, the
means,  facilities  and  opportunity for such examinations as are herein
provided for and required.
  S 22. The section heading of section 475 of the tax law, as amended by
chapter 227 of the laws of 1956, is amended to read as follows:
  General powers of the [tax commission] COMMISSIONER.
  S 23. Section 476 of the tax law, as amended by chapter 61 of the laws
of 1989, is amended to read as follows:
  S 476. Refunds; sales of stamps. Whenever any  cigarettes  upon  which
stamps have been placed or CIGARS OR tobacco products upon which the tax
has  been paid have been sold and shipped into another state for sale or
use there or have become unfit for use and consumption or unsalable,  or
have  been  destroyed,  or  whenever  the  commissioner [of taxation and
finance] shall have determined that any  tax  imposed  by  this  article
shall  have  been  paid  in error, the agent, dealer or CIGAR OR tobacco
products distributor, as the case may be, shall be entitled to a  refund
of  the  actual  amount of tax so paid, provided application therefor is
filed with the commissioner [of taxation and finance] within  two  years
after  the  stamps  were  affixed to such cigarettes or the tax was paid
upon such CIGARS OR tobacco products, except if an agreement  under  the
provisions  of  section  four  hundred  seventy-eight  OF  THIS  ARTICLE

S. 6259--B                         18                         A. 9059--B

(extending the period for determination of tax imposed by this  article)
is  made within the two-year period for the filing of an application for
refund provided for in this section, the period for filing  an  applica-
tion  for  refund shall not expire prior to six months after the expira-
tion of the period within which a determination may be made pursuant  to
the agreement or any extension thereof. If the commissioner [of taxation
and  finance] is satisfied that any dealer is entitled to a refund he OR
SHE shall issue to such dealer stamps of sufficient value to  cover  the
refund  of  the  tax on cigarettes or may, subject to audit by the comp-
troller, make a refund of the tax on cigarettes or on CIGARS OR  tobacco
products.  No  person  shall  sell or offer for sale any stamp or stamps
issued under this article except by written permission  of  the  commis-
sioner  [of  taxation  and  finance].  The commissioner [of taxation and
finance] may redeem unused stamps lawfully in possession of any  person.
The commissioner [of taxation and finance] may prescribe necessary rules
and  regulations  concerning  refunds,  sales of stamps, and redemptions
under the provisions of this article.
  S 24. Paragraph (d) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:
  (d) Each applicant shall file satisfactory proof that it will maintain
a secure separate warehousing facility for the purpose of receiving  and
distributing  cigarettes,  CIGARS or tobacco products and conducting its
wholesale business. Such proof shall consist of a copy of a deed,  or  a
copy  of an executed lease for a minimum period of two years, to a sepa-
rate, secure warehouse. If the applicant carries on another business  in
conjunction  with  the warehouse facility, the other business shall also
be identified.
  S 25. Paragraph (j) of subdivision 1 of section 480 of the tax law, as
amended by chapter 629 of the laws  of  1996,  is  amended  to  read  as
follows:
  (j)  The commissioner may for cause refuse to issue, or may suspend or
revoke a wholesaler's license, or may forbid a retail dealer to continue
selling cigarettes, CIGARS or tobacco products or may  forbid  a  person
required  to be appointed as a distributor of CIGARS OR tobacco products
who has not been so appointed from selling cigarettes, CIGARS or tobacco
products,  after  an  opportunity  for  hearing  has  been  afforded.  A
violation  of  any provision of this article or of any regulation issued
under it shall be cause to forbid a retail dealer  to  continue  selling
cigarettes, CIGARS or tobacco products.
  S 26. Paragraph (k) of subdivision 1 of section 480 of the tax law, as
amended  by  chapter  262  of  the  laws  of 2000, is amended to read as
follows:
  (k) No agent shall sell  cigarettes  and  no  distributor  shall  sell
CIGARS  OR  tobacco  products to an unlicensed wholesale dealer, or to a
wholesale dealer whose license has been suspended or revoked,  or  to  a
retail  dealer who is not registered under section four hundred eighty-a
of this article, or whose registration has been  suspended  or  revoked,
and  no  wholesale  dealer  shall  sell  cigarettes,  CIGARS  or tobacco
products to a retail dealer who is not  registered  under  section  four
hundred  eighty-a  of  this  article,  or  whose  registration  has been
suspended or revoked, and no retail dealer shall sell cigarettes, CIGARS
or tobacco products unless such dealer is registered under section  four
hundred eighty-a of this article.
  S 27. Paragraph (l) of subdivision 1 of section 480 of the tax law, as
added by chapter 629 of the laws of 1996, is amended to read as follows:

S. 6259--B                         19                         A. 9059--B

  (l) Paragraphs (b), (c) and (g) of this subdivision shall not apply to
the filing of an application for a license as a wholesale dealer that is
based solely upon the ownership, operation or maintenance of one or more
cigarette,  CIGAR  or  tobacco  products vending machines in, at or upon
premises  owned  or  occupied by another person, or that is based solely
upon the sale of CIGARS OR tobacco products for resale, or that is based
upon both the ownership, operation or maintenance of one or  more  ciga-
rette,  CIGAR  or tobacco products vending machines in, at or upon prem-
ises owned or occupied by another person  and  the  sale  of  CIGARS  OR
tobacco products for resale.
  S  28.  Subparagraph (iv) of paragraph (b) of subdivision 3 of section
480 of the tax law, as amended by chapter 61 of the  laws  of  1989,  is
amended to read as follows:
  (iv) Has knowingly aided and abetted the sale of cigarettes, CIGARS or
tobacco  products  by a person which such licensee or controlling person
knows (A) has not been licensed by the  commissioner  [of  taxation  and
finance] and (B) is a wholesale dealer pursuant to the terms of subdivi-
sion eight of section four hundred seventy of this [chapter] ARTICLE.
  S 29. Subdivision 4 of section 480 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  4.  If  the commissioner [of taxation and finance] considers it neces-
sary for the proper administration of the cigarette tax,  CIGAR  TAX  or
tobacco  products tax imposed by this article or the cigarette marketing
standards contained in article twenty-A of this chapter he  OR  SHE  may
require  every  person  under this article who holds a license to file a
new application for a license in such form  and  at  such  time  as  the
commissioner  may  prescribe  and to surrender such license. The commis-
sioner may require such filing and such surrender not  more  often  than
once  every  three  years.  Upon the filing of such application with the
proper fee and the surrender of such  license,  the  commissioner  shall
issue,  within  such  time  as he OR SHE may prescribe, a new license to
each applicant.
  S 30. Paragraphs (a) and (b) of subdivision 1 of section 480-a of  the
tax  law,  as  added  by chapter 190 of the laws of 1990, are amended to
read as follows:
  (a) [On and after January first, nineteen hundred  ninety-one,  every]
EVERY retail dealer shall publicly display a certificate of registration
from  the  department  in  each  place of business in this state through
which it sells cigarettes, CIGARS  or  tobacco  products  at  retail.  A
retail  dealer  who  has  no  regular  place  of business shall publicly
display such certificate on each of its carts, stands, trucks  or  other
merchandising  devices  through  which  it  sells  cigarettes, CIGARS or
tobacco products in this state.
  (b) Every person who owns or, if the owner is not the  operator,  then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether  located on the premises of the vending machine owner or, if the
owner is not the operator, then the premises  of  the  operator  or  the
premises  of  any  other person, must register each such vending machine
with the department. [On and after January first, nineteen hundred nine-
ty-one, a] A vending machine registration certificate, in such  form  as
may  be  prescribed by the commissioner [of taxation and finance], shall
be affixed to each vending machine through which cigarettes,  CIGARS  or
tobacco products are sold in this state.

S. 6259--B                         20                         A. 9059--B

  S  31. Paragraphs (a) and (b) of subdivision 2 of section 480-a of the
tax law, as amended by section 1 of part T of chapter 61 of the laws  of
2011, are amended to read as follows:
  (a)  (i)  Every retail dealer and every person owning or, if the owner
is not the operator, then any  person  operating  one  or  more  vending
machines  through  which cigarettes, CIGARS or tobacco products are sold
in this state, who is required under section eleven  hundred  thirty-six
of  this chapter to file a return for the quarterly period ending on the
last day of August OF EACH YEAR, [nineteen hundred  ninety  or  for  the
quarterly  period ending on the last day of August in any year thereaft-
er,] must file an application for registration under this  section  with
that  quarterly  return,  in  such  form  as  shall be prescribed by the
commissioner.
  (ii) Each retail dealer must pay an application fee with the quarterly
return of three hundred dollars for each retail  place  of  business  in
this  state  through  which  it  sells  cigarettes,  CIGARS  or  tobacco
products.
  (iii) Every person who owns or, if the owner is not the operator, then
any person who operates one or more vending machines through which ciga-
rettes, CIGARS or tobacco products are sold in this state, regardless of
whether located on the premises of the vending machine owner or, if  the
owner  is  not  the  operator,  then the premises of the operator or the
premises of any other person, must pay an application fee with the quar-
terly return of one  hundred  dollars  for  each  vending  machine.  The
department  will  issue a registration certificate, as prescribed by the
commissioner, after receipt of a registration application and the appro-
priate registration fee, prior to the next succeeding January first.
  (b) Every retail dealer and every person who owns or, if the owner  is
not  the  operator,  then  any  person  who operates one or more vending
machines through which cigarettes, CIGARS or tobacco products  are  sold
in  this  state  who  commences  business after the last day of August[,
nineteen hundred ninety,] or who commences selling cigarettes, CIGARS or
tobacco products at retail through a new or different place of  business
in  this  state  after  such  date, or who commences selling cigarettes,
CIGARS or tobacco products through new  or  different  vending  machines
after  such  date,  must  file  with the commissioner an application for
registration, in a form prescribed by him or her, at least  thirty  days
prior  to commencing business or commencing sales. Each application must
be accompanied by an application fee of three hundred dollars  for  each
retail  place  of  business  and  one  hundred  dollars for each vending
machine to be registered. The department, within ten days after  receipt
of  an  application for registration under this paragraph and payment of
the proper fee for application for registration, will issue a  registra-
tion  certificate,  as  prescribed  by the commissioner, for each retail
place of business  or  cigarette,  CIGAR  or  tobacco  products  vending
machine registered.
  S  32. Paragraph (d) of subdivision 2 of section 480-a of the tax law,
as amended by chapter 760 of the laws of 1992, is  amended  to  read  as
follows:
  (d)  Except  as otherwise provided in this section, all the provisions
of article twenty-eight of this chapter relating to the personal liabil-
ity for the tax, administration, collection and  determination  of  tax,
and deposit and disposition of revenue, including section eleven hundred
thirty-eight  of  this  chapter  relating  to  determination  of tax and
section eleven hundred forty-five of this chapter (but  only  paragraphs
one  and  two  of subdivision (a) of such section) relating to penalties

S. 6259--B                         21                         A. 9059--B

and interest for failure to file a return or pay  tax  within  the  time
required,  shall apply to the applications for registration and the fees
for filing such applications required by this section  and  the  penalty
imposed pursuant to subdivision three of this section, as if such appli-
cations were returns required under section eleven hundred thirty-six of
this  chapter  and  such  filing fees, penalties and interest were taxes
required to be paid pursuant to such article twenty-eight, in  the  same
manner  and  with  the  same force and effect as if the language of such
provisions of such article twenty-eight had been  incorporated  in  full
into  this  article,  except  to  the  extent that any such provision is
either inconsistent with a provision of this section or is not  relevant
thereto  and  with such other modifications as may be necessary to adapt
the language of such provisions  to  the  provisions  of  this  section.
[Section]  ANY REFERENCE TO A CERTIFICATE OF AUTHORITY SHOULD BE READ TO
MEAN A CERTIFICATE OF REGISTRATION FOR  THE  PURPOSE  OF  THIS  SECTION.
PARAGRAPHS  ONE  THROUGH THREE OF SUBDIVISION A AND SUBDIVISIONS B AND C
OF SECTION eleven hundred thirty-four  of  [such  article  twenty-eight]
THIS  CHAPTER  shall  not  apply to this section AS WELL AS ANY LANGUAGE
CONTAINED IN SUCH SECTION REFERRING TO AN OFFICER, DIRECTOR, PARTNER  OR
EMPLOYEE  OF  SUCH PERSON, AND, WHERE SUCH PERSON IS A LIMITED LIABILITY
COMPANY, ALSO A MEMBER OR MANAGER OF  SUCH  PERSON,  IN  THE  OFFICER'S,
DIRECTOR'S,  PARTNER'S,  MEMBER'S, MANAGER'S OR EMPLOYEE'S CAPACITY AS A
PERSON REQUIRED TO COLLECT TAX ON  BEHALF  OF  SUCH  PERSON  OR  ANOTHER
PERSON.    Provided,  however,  that  the  commissioner [of taxation and
finance] shall refund or credit an application fee paid with respect  to
the  registration  of a vending machine or a retail place of business in
this state through which cigarettes, CIGARS or tobacco products were  to
be  sold if, prior to the beginning of the calendar year with respect to
which  such  registration  relates,  the  certificate  of   registration
described  in  paragraph  (a)  of  this  subdivision  is returned to the
department [of taxation and finance], or if such  certificate  has  been
destroyed,  the retail dealer or vending machine operator satisfactorily
accounts to the commissioner for the missing certificate, but such vend-
ing machine or retail place of business may not be used  to  sell  ciga-
rettes,  CIGARS  or  tobacco products in this state during such calendar
year, unless it is  re-registered.  The  provisions  of  section  eleven
hundred  thirty-nine of this chapter shall apply to the refund or credit
authorized by the preceding sentence and for such purposes, such  refund
or credit shall be deemed a refund of tax paid in error provided, howev-
er, no interest shall be allowed or paid on any such refund.
  S  33. Paragraph (b) of subdivision 3 of section 480-a of the tax law,
as amended by section 125-a of part C of chapter 58 of the laws of 2009,
is amended to read as follows:
  (b) Any person who owns or, if the owner is not the operator, then any
person who operates one or more vending  machines  through  which  ciga-
rettes,  CIGARS  or  tobacco  products  are  sold  in this state and who
violates the provisions of this section, after due notice and an  oppor-
tunity  for  a hearing, for a first violation is liable for a civil fine
not less than seven hundred fifty dollars but not to exceed two thousand
dollars and for a second or  subsequent  violation  within  three  years
following  a  prior  finding of violation be liable for a civil fine not
less than two thousand dollars but not to exceed six thousand dollars.
  S 34. Clause (B) of subparagraph (i) of paragraph (a) of subdivision 1
of section 481 of the tax law, as amended by chapter 61 of the  laws  of
1989, is amended to read as follows:

S. 6259--B                         22                         A. 9059--B

  (B)  If  a tax on cigarettes, CIGARS or on tobacco products under this
article is not paid when due by any other person, the person liable  for
the  payment  of  such  tax  shall  be subject to a penalty of fifty per
centum of the amount of such tax determined to be  due  as  provided  in
this  article plus one per centum of such amount for each month or frac-
tion thereof during which such failure to pay continues after the  expi-
ration of the first month after such tax became due.
  S  35.  Subparagraph  (i) of paragraph (b) of subdivision 1 of section
481 of the tax law, as amended by chapter 604 of the laws  of  2008,  is
amended to read as follows:
  (i)  In  addition  to  any  other penalty imposed by this article, the
commissioner may (A) impose a penalty of not more than one hundred fifty
dollars for each two hundred cigarettes, or fraction thereof, in  excess
of  one  thousand cigarettes in unstamped or unlawfully stamped packages
in the possession or under the control of any person  or  (B)  impose  a
penalty  of  not  more  than  two hundred dollars for each ten unaffixed
false,  altered  or  counterfeit  cigarette  tax  stamps,  imprints   or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more  than  seventy-five  dollars  for each fifty cigars or one pound of
tobacco, or fraction thereof, in excess of [two hundred] fifty cigars or
five pounds of tobacco in the possession or under  the  control  of  any
person and a penalty of not more than one hundred fifty dollars for each
fifty cigars or pound of tobacco, or fraction thereof, in excess of five
hundred  cigars  or ten pounds of tobacco in the possession or under the
control of any person, with  respect  to  which  the  CIGAR  OR  tobacco
products  tax  has not been paid or assumed by a distributor or CIGAR OR
tobacco products  dealer;  provided,  however,  that  any  such  penalty
imposed  shall  not  exceed  seven  thousand five hundred dollars in the
aggregate. The commissioner may impose a penalty of not more than seven-
ty-five dollars for each fifty cigars or one pound of tobacco, or  frac-
tion  thereof,  in excess of fifty cigars or one pound of tobacco in the
possession or under the control of any CIGAR OR tobacco products  dealer
or  distributor appointed by the commissioner, and a penalty of not more
than one hundred fifty dollars for each fifty cigars or pound of  tobac-
co, or fraction thereof, in excess of [two hundred] fifty cigars or five
pounds  of  tobacco  in  the possession or under the control of any such
dealer or distributor, with  respect  to  which  the  CIGAR  OR  tobacco
products tax has not been paid or assumed by a distributor or a CIGAR OR
tobacco  products  dealer;  provided,  however,  that  any  such penalty
imposed shall not exceed fifteen thousand dollars in the aggregate.
  S 36. Clauses (B) and (C) of subparagraph (ii)  of  paragraph  (b)  of
subdivision  1 of section 481 of the tax law, as added by chapter 262 of
the laws of 2000, are amended to read as follows:
  (B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof, in excess of [two hundred] fifty cigars or five pounds  of  tobacco
knowingly  in  the  possession  or  knowingly  under  the control of any
person, with respect to which the CIGAR OR tobacco products tax has  not
been paid or assumed by a distributor or CIGAR OR tobacco products deal-
er; and
  (II) not less than fifty dollars but not more than two hundred dollars
for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in
excess of [five] ONE hundred cigars or ten pounds of  tobacco  knowingly
in  the  possession  or  knowingly under the control of any person, with
respect to which the CIGAR OR tobacco products tax has not been paid  or

S. 6259--B                         23                         A. 9059--B

assumed  by a distributor or CIGAR OR tobacco products dealer; provided,
however, that any such penalty  imposed  under  this  clause  shall  not
exceed ten thousand dollars in the aggregate.
  (C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars or one pound of tobacco, or fraction ther-
eof,  in excess of fifty cigars or one pound of tobacco knowingly in the
possession or knowingly under the control of any person, with respect to
which the CIGAR OR tobacco products tax has not been paid or assumed  by
a distributor or CIGAR OR tobacco products dealer; and
  (II) not less than fifty dollars but not more than two hundred dollars
for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in
excess of [two hundred fifty] ONE  HUNDRED  cigars  or  five  pounds  of
tobacco  knowingly  in  the possession or knowingly under the control of
any person, with respect to which the CIGAR OR tobacco products tax  has
not been paid or assumed by a distributor or a CIGAR OR tobacco products
dealer;  provided,  however,  that  any  such penalty imposed under this
clause shall not exceed twenty thousand dollars in the aggregate.
  S 37. Subdivision 2 of section 481 of the tax law, as amended by chap-
ter 61 of the laws of 1989 and paragraph (a) as amended by  chapter  552
of the laws of 2008, is amended to read as follows:
  2.  (a)  The  possession  within  this state of more than four hundred
cigarettes in unstamped or unlawfully stamped  packages,  or  more  than
[two  hundred]  fifty  cigars, or more than five pounds of tobacco other
than roll-your-own tobacco, or more than thirty-six ounces of roll-your-
own tobacco by any person other than an agent  or  distributor,  as  the
case  may  be,  at  any one time shall be presumptive evidence that such
cigarettes, CIGARS or tobacco products are subject to tax as provided by
this article.
  (b) Nothing in this section shall apply to common or contract carriers
or warehousemen  while  engaged  in  lawfully  transporting  or  storing
CIGARS, tobacco products or unstamped packages of cigarettes as merchan-
dise,  nor to any employee of such carrier or warehouseman acting within
the scope of his OR HER employment, nor to public officers or  employees
in  the  performance  of  their  official duties requiring possession or
control of CIGARS, tobacco products or unstamped or  unlawfully  stamped
packages  of  cigarettes,  nor  to  temporary  incidental  possession by
employees or agents of persons lawfully entitled to possession,  nor  to
persons whose possession is for the purpose of aiding police officers in
performing their duties.
  S  38.  The  tax law is amended by adding new section 481-a to read as
follows:
  S 481-A. PENALTIES AND INTEREST FOR RETAIL DEALERS. (A)  (1)  (I)  ANY
PERSON  FAILING  TO  FILE  A RETURN OR TO PAY OR PAY OVER ANY TAX TO THE
COMMISSIONER WITHIN THE TIME REQUIRED BY OR  PURSUANT  TO  THIS  ARTICLE
(DETERMINED  WITH  REGARD TO ANY EXTENSION OF TIME FOR FILING OR PAYING)
SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF TAX DUE IF
SUCH FAILURE IS FOR NOT MORE THAN ONE  MONTH,  WITH  AN  ADDITIONAL  ONE
PERCENT  FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH SUCH
FAILURE CONTINUES,  NOT  EXCEEDING  THIRTY  PERCENT  IN  THE  AGGREGATE.
PROVIDED,  HOWEVER,  IN THE CASE OF A FAILURE TO FILE SUCH RETURN WITHIN
SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF SUCH RETURN BY OR PURSU-
ANT TO THIS ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR
FILING), THE PENALTY IMPOSED BY THIS SUBPARAGRAPH SHALL NOT BE LESS THAN
THE LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF  THE  AMOUNT
REQUIRED  TO  BE  SHOWN  AS  TAX  ON SUCH RETURN. FOR THE PURPOSE OF THE
PRECEDING SENTENCE, THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN

S. 6259--B                         24                         A. 9059--B

SHALL BE REDUCED BY THE AMOUNT OF ANY PART OF THE TAX WHICH IS  PAID  ON
OR  BEFORE  THE DATE PRESCRIBED FOR PAYMENT OF THE TAX AND BY THE AMOUNT
OF ANY CREDIT AGAINST THE TAX WHICH MAY BE CLAIMED UPON THE  RETURN.  IN
THE  CASE OF A FAILURE TO FILE A RETURN BY A PERSON REQUIRED TO REGISTER
WITH THE COMMISSIONER AS PROVIDED IN SECTION FOUR  HUNDRED  EIGHTY-A  OF
THIS ARTICLE, IN NO EVENT SHALL THE PENALTY FOR FAILURE TO FILE A RETURN
BE LESS THAN ONE HUNDRED FIFTY DOLLARS.
  (II)  IF  ANY  AMOUNT  OF  TAX  IS NOT PAID ON OR BEFORE THE LAST DATE
PRESCRIBED IN THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT  AT  THE
RATE  OF  FOURTEEN AND ONE-HALF PERCENT PER ANNUM OR AT THE UNDERPAYMENT
RATE SET BY THE COMMISSIONER PURSUANT  TO  SUBDIVISION  TWENTY-SIXTH  OF
SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS CHAPTER, WHICHEVER IS GREATER,
SHALL BE PAID FOR THE PERIOD FROM SUCH  LAST  DATE  TO  THE  DATE  PAID,
WHETHER  OR  NOT ANY EXTENSION OF TIME FOR PAYMENT WAS GRANTED. INTEREST
UNDER THIS SUBPARAGRAPH SHALL NOT BE PAID IF THE AMOUNT THEREOF IS  LESS
THAN ONE DOLLAR.
  (III)  IF  THE  COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE  OR  SHE  MAY
REMIT ALL OF SUCH PENALTY AND THAT PORTION OF SUCH INTEREST THAT EXCEEDS
THE INTEREST THAT WOULD BE PAYABLE IF SUCH INTEREST WERE COMPUTED AT THE
UNDERPAYMENT  RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER. THE COMMIS-
SIONER MAY PROMULGATE RULES  AND  REGULATIONS  AS  TO  WHAT  CONSTITUTES
REASONABLE CAUSE.
  (IV)  ANY  PERSON REQUIRED BY THIS ARTICLE TO FILE A RETURN, WHO OMITS
FROM THE TOTAL AMOUNT OF CIGAR EXCISE TAX REQUIRED  TO  BE  SHOWN  ON  A
RETURN AN AMOUNT WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT
OF  SUCH  TAXES REQUIRED TO BE SHOWN ON THE RETURN SHALL BE SUBJECT TO A
PENALTY EQUAL TO TEN PERCENT OF THE AMOUNT  OF  SUCH  OMISSION.  IF  THE
COMMISSIONER  DETERMINES  THAT SUCH OMISSION WAS DUE TO REASONABLE CAUSE
AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT ALL OF SUCH PENALTY.
  (V) ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS CIGARS AT RETAIL  AND
WHO  SHALL  WILLFULLY  AND  KNOWINGLY  HAVE  IN SUCH PERSON'S CUSTODY OR
POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGARS ON  WHICH  (A)  THE
PREPAID  TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
CLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS SUCH UNDER
THIS ARTICLE, OR (B) THE  PREPAID  TAX  IMPOSED  BY  SUCH  SECTION  FOUR
HUNDRED  SEVENTY-ONE-H  OF THIS ARTICLE WAS REQUIRED TO HAVE BEEN PASSED
THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN  THE  COST  OF  SUCH
CIGARS  TO  SUCH  PERSON, SHALL BE LIABLE FOR A PENALTY IN THE AMOUNT OF
TWICE THE TAX NOT SO ASSUMED OR PAID, OR INCLUDED.   SUCH PENALTY  SHALL
BE  DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES
IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE  RELATING
THERETO  SHALL  BE  DEEMED  ALSO TO REFER TO THE PENALTY IMPOSED BY THIS
SUBPARAGRAPH. SUCH PENALTY MAY BE DETERMINED AT ANY  TIME  WITHIN  THREE
YEARS  AFTER  SUCH  CIGARS SHALL HAVE COME INTO SUCH PERSON'S CUSTODY OR
POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
GRAPH, SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN  SUCH  PERSON'S
CUSTODY  OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGAR ON WHICH
(A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR  LICENSED  AS
SUCH  UNDER  THIS  ARTICLE,  OR  (B)  SUCH TAX WAS REQUIRED TO HAVE BEEN
PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE  COST  OF
SUCH  CIGARS  TO  SUCH  PERSON,  WHERE  SUCH PERSON HAS KNOWLEDGE OF THE
REQUIREMENT THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED AND WHERE,
TO SUCH PERSON'S KNOWLEDGE, SUCH TAXES HAVE NOT BEEN SO PAID OR  ASSUMED
OR  SO INCLUDED. FOR PURPOSES OF THIS SUBPARAGRAPH, IT SHALL BE PRESUMP-

S. 6259--B                         25                         A. 9059--B

TIVE EVIDENCE THAT SUCH PERSON SHALL WILLFULLY  AND  KNOWINGLY  HAVE  IN
SUCH  PERSON'S  CUSTODY  OR  POSSESSION  OR  UNDER SUCH PERSON'S CONTROL
CIGARS ON WHICH (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBU-
TOR  AUTHORIZED  AS SUCH UNDER THIS ARTICLE OR (B) SUCH TAX WAS REQUIRED
TO HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED  IN
THE  COST  OF  SUCH  CIGARS  TO  SUCH  PERSON  WHERE SUCH PERSON HAS NOT
RECEIVED  THE   CERTIFICATION   REQUIRED   BY   SECTION   FOUR   HUNDRED
SEVENTY-ONE-K OF THIS ARTICLE AT THE TIME OF DELIVERY OF SUCH CIGARS OR,
IN  THOSE CIRCUMSTANCES WHERE THE COMMISSIONER HAS AUTHORIZED THE DELIV-
ERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE CIGARS, AT THE
TIME PRESCRIBED BY THE COMMISSIONER.
  (2) IF THE FAILURE TO PAY OR PAY OVER  ANY  TAX  TO  THE  COMMISSIONER
WITHIN THE TIME REQUIRED BY THIS ARTICLE IS DUE TO FRAUD, IN LIEU OF THE
PENALTIES  AND  INTEREST  PROVIDED  FOR IN SUBPARAGRAPHS (I) AND (II) OF
PARAGRAPH ONE OF THIS SUBDIVISION, THERE SHALL BE ADDED TO THE TAX (I) A
PENALTY OF TWO TIMES THE AMOUNT OF THE TAX DUE, PLUS  (II)  INTEREST  ON
SUCH  UNPAID  TAX AT THE RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM
OR THE UNDERPAYMENT RATE OF INTEREST SET BY THE COMMISSIONER PURSUANT TO
SUBDIVISION TWENTY-SIXTH OF SECTION  ONE  HUNDRED  SEVENTY-ONE  OF  THIS
CHAPTER,  WHICHEVER IS GREATER, FOR THE PERIOD BEGINNING ON THE LAST DAY
PRESCRIBED BY THIS ARTICLE FOR THE PAYMENT OF SUCH TAX (DETERMINED WITH-
OUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON THE DAY ON
WHICH SUCH TAX IS PAID.
  (3) (I) ANY PERSON REQUIRED TO OBTAIN A  CERTIFICATE  OF  REGISTRATION
UNDER  SECTION  FOUR  HUNDRED  EIGHTY-A  OF  THIS  ARTICLE  WHO, WITHOUT
POSSESSING A VALID CERTIFICATE OF REGISTRATION, SELLS CIGARETTES, CIGARS
AND TOBACCO PRODUCTS SHALL, IN ADDITION TO ANY OTHER PENALTY IMPOSED  BY
THIS  CHAPTER,  BE  SUBJECT TO A PENALTY IN AN AMOUNT NOT EXCEEDING FIVE
HUNDRED DOLLARS FOR THE FIRST DAY ON WHICH SUCH SALES OR  PURCHASES  ARE
MADE,  PLUS  AN AMOUNT NOT EXCEEDING TWO HUNDRED DOLLARS FOR EACH SUBSE-
QUENT DAY ON WHICH SUCH SALES OR PURCHASES ARE MADE, NOT TO  EXCEED  TEN
THOUSAND DOLLARS IN THE AGGREGATE.
  (II)  IF THE COMMISSIONER DETERMINES THAT ANY FAILURE OR ACT DESCRIBED
IN THIS PARAGRAPH WAS DUE TO REASONABLE CAUSE AND  NOT  DUE  TO  WILLFUL
NEGLECT, HE OR SHE MAY REMIT ALL OR PART OF SUCH PENALTY.
  (4)  ANY  PERSON  REQUIRED BY THIS ARTICLE TO DISPLAY A CERTIFICATE OF
REGISTRATION, WHO FAILS  TO  DISPLAY  SUCH  CERTIFICATE  IN  THE  MANNER
REQUIRED  BY  THIS  ARTICLE  OR  ANY  RULE  OR REGULATION ADOPTED BY THE
COMMISSIONER IN CONNECTION WITH SUCH REQUIREMENT SHALL, IN  ADDITION  TO
ANY  OTHER  PENALTY  IMPOSED BY THIS CHAPTER, BE SUBJECT TO A PENALTY OF
FIFTY DOLLARS. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE WAS  DUE
TO  REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT
ALL OR PART OF SUCH PENALTY.
  (5) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SUBDIVISION  SHALL
BE  PAID  AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM THIS
ARTICLE. SUCH  PENALTIES  AND  INTEREST  MAY  BE  DETERMINED,  ASSESSED,
COLLECTED  AND  ENFORCED  IN  THE SAME MANNER AS THE TAX IMPOSED BY THIS
ARTICLE.  INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
  (B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
OF THIS CHAPTER.
  (C)  ANY PERSON FAILING TO FILE A RETURN OR TO PAY ANY TAX REQUIRED TO
BE PREPAID TO THE COMMISSIONER WITH RESPECT TO CIGARS  PURSUANT  TO  THE
PROVISIONS  OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITHIN
THE TIME REQUIRED BY THIS ARTICLE SHALL, IN ADDITION TO ANY OTHER PENAL-
TY PROVIDED IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A
PENALTY EQUAL TO THE AMOUNT OF TAX REQUIRED TO BE SO PREPAID PURSUANT TO

S. 6259--B                         26                         A. 9059--B

THE PROVISIONS OF SUCH SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS  ARTI-
CLE.   IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE TO FILE A RETURN
OR TO PAY ANY SUCH TAX WAS DUE TO REASONABLE CAUSE AND NOT DUE TO  WILL-
FUL NEGLECT, HE OR SHE MAY REMIT ALL OR ANY PART OF SUCH PENALTY.
  (D)  THE  CERTIFICATE OF THE COMMISSIONER TO THE EFFECT THAT A TAX HAS
NOT BEEN PAID, THAT A RETURN, BOND OR REGISTRATION CERTIFICATE  HAS  NOT
BEEN  FILED,  OR  THAT INFORMATION HAS NOT BEEN SUPPLIED PURSUANT TO THE
PROVISIONS OF THIS ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THEREOF.
  (E) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO FAILS TO MAKE OR MAINTAIN OR  MAKE  AVAILABLE  TO  THE  COMMISSIONER
THESE RECORDS IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS
FOR  THE  FIRST  PERIOD OR PART THEREOF FOR WHICH THE FAILURE OCCURS AND
NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH ADDITIONAL PERIOD  OR  PART
THEREOF FOR WHICH THE FAILURE OCCURS. THIS PENALTY IS IN ADDITION TO ANY
OTHER  PENALTY  PROVIDED  FOR IN THIS ARTICLE BUT MAY NOT BE IMPOSED AND
COLLECTED MORE THAN ONCE FOR FAILURES FOR THE SAME PERIOD OR PART THERE-
OF. IF THE COMMISSIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR
MAKE AVAILABLE RECORDS IN ANY PERIOD  WAS  ENTIRELY  DUE  TO  REASONABLE
CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENAL-
TY IMPOSED FOR THAT PERIOD. THESE PENALTIES WILL BE PAID AND DISPOSED OF
IN  THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE PENALTIES
WILL BE DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN  THE  SAME
MANNER  AS  THE  TAX  IMPOSED BY THIS ARTICLE, AND ALL THE PROVISIONS OF
THIS ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE  PENAL-
TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
THIS  SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE OR
MAINTAIN THE REQUIRED RECORDS WHEN THE RECORDS  MADE  OR  MAINTAINED  BY
THAT  PERSON  FOR  A PERIOD MAKE IT VIRTUALLY IMPOSSIBLE TO VERIFY SALES
RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
  (F) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS  A
FALSE  OR  FRAUDULENT  DOCUMENT  TO  THE DEPARTMENT WILL BE SUBJECT TO A
PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR  FIVE  HUNDRED
DOLLARS  PER  TAX  RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
ANY OTHER PENALTY PROVIDED BY LAW.
  (G) AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS,  REPORTS,
STATEMENTS  OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT TAX
BE EVADED, FOR A FEE OR OTHER COMPENSATION OR  AS  AN  INCIDENT  TO  THE
PERFORMANCE  OF  OTHER  SERVICES  FOR WHICH THAT PERSON RECEIVES COMPEN-
SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
RATION OR PRESENTATION UNDER THIS ARTICLE, OR  IN  CONNECTION  WITH  ANY
MATTER  ARISING  UNDER THIS ARTICLE, OF ANY RETURN, REPORT, DECLARATION,
STATEMENT OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY  MATE-
RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
AUTHORIZED  OR  REQUIRED  TO  PRESENT  THAT RETURN, REPORT, DECLARATION,
STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
SAND DOLLARS.
  (H) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
ANY PORTION OR ALL OF THE RECORDS HE OR SHE  IS  REQUIRED  TO  MAKE  AND
MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH PERIOD OR PART
THEREOF  FOR  WHICH  THESE ELECTRONIC RECORDS ARE NOT PRESENTED AND MADE
AVAILABLE AND ACCESSIBLE UPON REQUEST, NOTWITHSTANDING THAT THE  RECORDS
MAY  ALSO  BE MAINTAINED AND AVAILABLE IN HARD COPY FORMAT. THIS PENALTY
IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN  THIS  ARTICLE,  BUT

S. 6259--B                         27                         A. 9059--B

MAY  NOT  BE  IMPOSED AND COLLECTED MORE THAN ONCE FOR A FAILURE FOR THE
SAME PERIOD OR PART THEREOF.  PROVIDED, HOWEVER, NOTHING IN THIS  SUBDI-
VISION  WILL  PREVENT  THE  SEPARATE  IMPOSITION,  IF APPLICABLE, OF ANY
PENALTY  IMPOSED BY THIS SECTION FOR THE SAME PERIOD OR PART THEREOF. IF
THE COMMISSIONER DETERMINES THAT THE FAILURE TO PRESENT AND  MAKE  ELEC-
TRONICALLY  MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A PERIOD WAS
ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT PERIOD.  THESE  PENALTIES
WILL  BE  PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
THIS ARTICLE. THESE PENALTIES WILL BE DETERMINED,  ASSESSED,  COLLECTED,
PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
AND  ALL  THE  PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE DEEMED
ALSO TO APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION.  FOR  PURPOSES
OF  THE  PENALTY  IMPOSED  BY THIS SUBDIVISION, A FAILURE TO PRESENT AND
MAKE AVAILABLE AND ACCESSIBLE A RECORD MAINTAINED IN  ELECTRONIC  FORMAT
INCLUDES  NOT  ONLY  THE  DENIAL OF ACCESS TO THE REQUESTED RECORDS THAT
WERE MAINTAINED ELECTRONICALLY, BUT ALSO THE FAILURE TO  MAKE  AVAILABLE
TO  THE  COMMISSIONER  THE INFORMATION, KNOWLEDGE, OR MEANS NECESSARY TO
ACCESS AND OTHERWISE USE THE ELECTRONICALLY MAINTAINED  RECORDS  IN  THE
INSPECTION AND EXAMINATION OF THESE RECORDS.
  S  39.  Subdivision  (h) of section 1111 of the tax law, as amended by
section 1 of part Q-3 of chapter 62 of the laws of 2003, is  amended  to
read as follows:
  (h)  Receipts  subject  to tax under subdivision (a) of section eleven
hundred five on retail sales of cigarettes, CIGARS and tobacco  products
and consideration given or contracted to be given for cigarettes, CIGARS
and  tobacco products the uses of which are subject to tax under section
eleven hundred ten shall be deemed to include any tax imposed  on  ciga-
rettes,  CIGARS  and  tobacco products by article twenty of this chapter
and any tax imposed on cigarettes AND  CIGARS  by  chapter  thirteen  of
title eleven of the administrative code of the city of New York.
  S  40.  Subdivision  (e) of section 1814 of the tax law, as amended by
section 28 of subpart I of part V-1 of chapter 57 of the laws  of  2009,
is amended to read as follows:
  (e) Nothing in this section shall apply to common or contract carriers
or  warehousemen  while  engaged  in  lawfully  transporting  or storing
unstamped packages of cigarettes as merchandise, or lawfully  transport-
ing  or  storing CIGARS OR tobacco products, nor to any employee of such
carrier or warehouseman acting within the scope of his  OR  HER  employ-
ment,  nor  to  public officers or employees in the performance of their
official duties requiring possession or control of unstamped  or  unlaw-
fully  stamped packages of cigarettes or possession or control of CIGARS
OR tobacco products, nor to temporary incidental possession by employees
or agents of persons lawfully entitled to  possession,  nor  to  persons
whose  possession  is  for  the  purpose  of  aiding  police officers in
performing their duties.
  S 41. Paragraphs 3 and 4 of subdivision (h) of section 1814 of the tax
law, as amended by section 28 of subpart I of part V-1 of chapter 57  of
the laws of 2009, are amended to read as follows:
  (3) Any person, other than a distributor appointed by the commissioner
under  article  twenty of this chapter, who shall knowingly transport or
have in his OR HER custody, possession or under his OR HER control twen-
ty-five hundred or more cigars or fifty or more pounds of  tobacco  upon
which  the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed  by  the  commissioner  under
article twenty of this chapter, or other person treated as a distributor

S. 6259--B                         28                         A. 9059--B

pursuant  to section four hundred seventy-one-d of this chapter shall be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E felo-
ny  for  any  subsequent  violation  of  this section, regardless of the
amount of CIGARS OR tobacco products involved in such violation.
  (4) For purposes of this  subdivision,  such  person  shall  knowingly
transport  or have in his OR HER custody, possession or under his OR HER
control tobacco PRODUCTS or cigars on which such  taxes  have  not  been
assumed  or  paid  by  a distributor appointed by the commissioner where
such person has knowledge of the requirement of the tax  on  CIGARS  AND
tobacco products and, where to his OR HER knowledge, such taxes have not
been assumed or paid on such CIGARS OR tobacco products by a distributor
appointed by the commissioner [of taxation and finance].
  S  42.  Section  1814-a  of the tax law, as added by chapter 61 of the
laws of 1989, is amended to read as follows:
  S 1814-a. Person not appointed as a [tobacco products] distributor  OF
CIGARS OR TOBACCO PRODUCTS. (a) Any person who, while not appointed as a
distributor  of CIGARS OR tobacco products pursuant to the provisions of
article twenty of this chapter, imports or causes to  be  imported  into
the  state more than fifty cigars or more than one pound of tobacco, for
sale within the state, or produces, manufactures or compounds CIGARS  OR
tobacco  products  within  the  state  shall  be guilty of a misdemeanor
punishable by a fine of not more than five thousand dollars or by a term
of imprisonment not to exceed thirty days. If,  within  any  ninety  day
period,  one  thousand  or more cigars or five hundred pounds or more of
tobacco are imported or caused to be imported into the  state  for  sale
within  the state or are produced, manufactured or compounded within the
state by any person while not appointed as a distributor  of  CIGARS  OR
tobacco products, such person shall be guilty of a misdemeanor. Provided
further, that any person who has twice been convicted under this section
shall be guilty of a class E felony for any subsequent violation of this
section, regardless of the amount of CIGARS OR tobacco products involved
in such violation.
  (b)  For  purposes  of  this section, the possession or transportation
within this state by any person, other than a CIGAR OR tobacco  products
distributor  appointed by the commissioner [of taxation and finance], at
any one time of seven hundred fifty or more cigars or fifteen pounds  or
more of tobacco shall be presumptive evidence that such tobacco products
are  possessed or transported for the purpose of sale and are subject to
the tax imposed by section  four  hundred  seventy-one-b,  SECTION  FOUR
HUNDRED  SEVENTY-ONE-F  OR  SECTION  FOUR  HUNDRED SEVENTY-ONE-H of this
chapter.  With  respect  to  such  possession  or  transportation,   any
provisions of article twenty of this chapter providing for a time period
during  which  the  tax  imposed  by  such article may be paid shall not
apply.
  S 43. The section heading, subdivisions (a), (b) and  (c)  of  section
1846-a  of  the  tax law, as amended by chapter 556 of the laws of 2011,
are amended to read as follows:
  Forfeiture action with respect to CIGARS  AND  tobacco  products.  (a)
Whenever  a  police  officer  designated in section 1.20 of the criminal
procedure law or a peace  officer  designated  in  subdivision  four  of
section  2.10 of such law, acting pursuant to his OR HER special duties,
shall discover any tobacco products in excess of five hundred cigars  or
ten  pounds  of  tobacco  which are being imported for sale in the state
where the person importing or causing such CIGARS AND  tobacco  products
to  be  imported  has  not  been  appointed as a distributor pursuant to

S. 6259--B                         29                         A. 9059--B

section four hundred seventy-two of this chapter, such police officer or
peace officer is hereby authorized and empowered forthwith to seize  and
take  possession  of  such  CIGARS AND tobacco products. Such CIGARS AND
tobacco  products  seized  by a police officer or peace officer shall be
turned over to the commissioner. Such seized CIGARS AND tobacco products
shall be forfeited  to  the  state.  All  CIGARS  AND  tobacco  products
forfeited  to  the  state shall be destroyed or used for law enforcement
purposes, except that CIGARS OR tobacco products that  violate,  or  are
suspected  of violating, federal trademark laws or import laws shall not
be used for law enforcement purposes. If the commissioner determines the
CIGARS OR tobacco products may not be used for law enforcement purposes,
the commissioner must, within a reasonable time thereafter, upon  publi-
cation  in  the state registry of a notice to such effect before the day
of destruction, destroy such forfeited CIGARS OR tobacco  products.  The
commissioner  may,  prior  to  any  destruction  of  CIGARS  OR  tobacco
products, permit the true holder of the trademark rights in  the  CIGARS
OR  tobacco  products  to  inspect  such  forfeited products in order to
assist in any investigation regarding such CIGARS OR tobacco products.
  (b) In the alternative, the commissioner, on reasonable notice by mail
or otherwise, may permit the person from whom  said  CIGARS  OR  tobacco
products  were  seized  to redeem the said CIGARS OR tobacco products by
the payment of the tax due, plus a penalty of fifty per centum  thereof,
plus interest on the amount of tax due for each month or fraction there-
of after such tax became due (determined without regard to any extension
of  time for filing or paying) at the rate applicable under subparagraph
(ii) of paragraph (a) of subdivision one of section four hundred  eight-
y-one  of  this chapter and the costs incurred in such proceeding, which
total payment shall not be less than five  dollars;  provided,  however,
that  such seizure and sale or redemption shall not be deemed to relieve
any person from fine or imprisonment provided for in  this  article  for
violation of any provision of article twenty of this chapter.
  (c)  In the alternative, the commissioner may dispose of any CIGARS OR
tobacco products seized pursuant to  this  section,  except  those  that
violate,  or  are  suspected  of  violating, federal trademark or import
laws, by transferring them to the department of corrections and communi-
ty supervision for sale to or use by inmates in such institutions.
  S 44. The section heading of section 1847 of the tax law,  as  amended
by chapter 61 of the laws of 1989, is amended to read as follows:
  Seizure  and  forfeiture  of vehicles or other means of transportation
used to transport or for deposit or concealment of cigarettes or used to
import CIGARS OR tobacco products.
  S 45. Subdivision (b) of section 1847 of the  tax  law,  as  added  by
chapter 61 of the laws of 1989, is amended to read as follows:
  (b)  Any  peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to  his  OR  HER  special
duties, or any police officer designated in section 1.20 of the criminal
procedure  law  may  seize  any vehicle or other means of transportation
used to import CIGARS OR tobacco products  in  excess  of  five  hundred
cigars  or  ten pounds of tobacco for sale where the person importing or
causing such CIGARS OR tobacco products to  be  imported  has  not  been
appointed  a distributor pursuant to section four hundred seventy-two of
this chapter, other than a vehicle or other means of transportation used
by any person as a common carrier in transaction  of  business  as  such
common  carrier, and such vehicle or other means of transportation shall
be subject to forfeiture as hereinafter in this section provided.

S. 6259--B                         30                         A. 9059--B

  S 46. This act shall take effect July 1, 2012; provided, however, that
section eleven of this act shall take effect immediately.

                                 PART D

  Section  1. Section 19 of part W-1 of chapter 109 of the laws of 2006,
amending the tax law relating to  providing  exemptions,  reimbursements
and credits from various taxes for certain alternative fuels, as amended
by  section 2 of part L of chapter 61 of the laws of 2011, is amended to
read as follows:
  S 19. This act shall take effect immediately; provided, however,  that
sections one through thirteen of this act shall take effect September 1,
2006  and  shall be deemed repealed on September 1, [2012] 2017 and such
repeal shall  apply  in  accordance  with  the  applicable  transitional
provisions  of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses  occurring  on  or
after  such  date,  and with respect to sections seven through eleven of
this act, in  accordance  with  applicable  transitional  provisions  of
sections  1106  and  1217  of  the  tax law; provided, however, that the
commissioner of taxation and finance shall be authorized  on  and  after
the  date  this act shall have become a law to adopt and amend any rules
or regulations  and  to  take  any  steps  necessary  to  implement  the
provisions  of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately  and  shall  apply  to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART E

  Section 1. Subdivision 14 of section 282 of the tax law, as amended by
section  1  of  part  K of chapter 61 of the laws of 2011, is amended to
read as follows:
  14. "Diesel motor fuel" shall mean No. 1 Diesel  fuel,  No.  2  Diesel
fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
late  and also motor fuel suitable for use in the operation of an engine
of the diesel type, excluding, however, any product specifically  desig-
nated  "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
tion of a motor vehicle engine.
  S 2. Paragraph (b) of subdivision 3 of section 282-a of the  tax  law,
as  amended by section 5 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of this section shall not apply to: (i) the sale or use  of  non-highway
Diesel  motor  fuel, but only if all of such fuel is consumed other than
on the public highways of this state (except for the use of  the  public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption  shall in no event apply to a sale of non-highway Diesel motor
fuel which involves a delivery at a filling station or into a repository
which is equipped with a hose or other apparatus by which such fuel  can
be  dispensed into the fuel tank of a motor vehicle (except for delivery
at a farm site which qualifies for the exemption under  subdivision  (g)
of  section  three hundred one-b of this chapter); or (ii) a sale to the
consumer consisting of not more than twenty gallons of water-white kero-
sene to be used and consumed exclusively for heating purposes; or  (iii)
the  sale  to or delivery at a filling station or other retail vendor of
water-white kerosene provided  such  filling  station  or  other  retail

S. 6259--B                         31                         A. 9059--B

vendor  only  sells  such  water-white  kerosene exclusively for heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet fuel to an airline for use in its airplanes or a use  of  kero-
jet  fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
by a registered distributor of Diesel motor fuel to a fixed base  opera-
tor registered under this article as a distributor of kero-jet fuel only
where  such  fixed base operator is engaged solely in making or offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel
tank of an airplane for the purpose of  operating  such  airplane;  [or]
(vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
registered  under  this  article  as a distributor of kero-jet fuel only
where such fuel is delivered directly into the fuel tank of an  airplane
for  use  in the operation of such airplane; OR (VII) THE SALE OF PREVI-
OUSLY UNTAXED QUALIFIED BIODIESEL TO  A  PERSON  REGISTERED  UNDER  THIS
ARTICLE  AS  A  DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL
SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
ERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED  WITH  A
HOSE  OR  OTHER  APPARATUS  BY  WHICH  SUCH  QUALIFIED  BIODIESEL CAN BE
DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
  S 3. Paragraph 5 of subdivision (a) of section 301-b of the  tax  law,
as  added  by  chapter  190  of  the laws of 1990, is amended to read as
follows:
  (5) [Crude oil and  liquefied]  LIQUIFIED  petroleum  gases,  such  as
butane, ethane or propane.
  S  4.  Subdivision  (e) of section 301-b of the tax law, as amended by
section 21 of part K of chapter 61 of the laws of 2011,  is  amended  to
read as follows:
  (e)  Sales  of  QUALIFIED BIODIESEL, non-highway diesel motor fuel and
residual petroleum product to registered distributors  of  diesel  motor
fuel and registered residual petroleum product businesses.
  (1)  [Non-highway]  QUALIFIED  BIODIESEL  AND NON-HIGHWAY Diesel motor
fuel sold by a person registered under article twelve-A of this  chapter
as  a distributor of diesel motor fuel to a person registered under such
article twelve-A as a distributor of diesel motor fuel where  such  sale
is  not  a  retail  sale or a sale that involves a delivery at a filling
station or into a repository equipped with a hose or other apparatus  by
which  such  QUALIFIED BIODIESEL OR non-highway Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle.
  (2) Residual petroleum product sold by a person registered under  this
article  as a residual petroleum product business to a person registered
under this article as a residual petroleum product business  where  such
sale  is not a retail sale. Provided, however, that the commissioner may
require such documentary proof to qualify for any exemption provided  in
this section as the commissioner deems appropriate, including the expan-
sion  of  any  certifications  required  pursuant to section two hundred
eighty-five-a or two hundred eighty-five-b of this chapter to cover  the
taxes imposed by this article.
  (3)  "QUALIFIED  BIODIESEL"  MEANS SUCH TERM AS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended by section 39 of part K of chapter 61 of the laws  of  2011,  is
amended to read as follows:
  (2)  Every distributor of diesel motor fuel shall pay, as a prepayment
on account of the taxes imposed by this  article  and  pursuant  to  the
authority of article twenty-nine of this chapter, a tax upon the sale or
use  of diesel motor fuel in this state. The tax shall be computed based

S. 6259--B                         32                         A. 9059--B

upon the number of gallons of diesel motor fuel sold or used.  Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the delivery  of  diesel  motor  fuel  to  a  retail  service
station.  The collection of such tax shall not be made applicable to the
sale or use of diesel motor fuel under circumstances which preclude  the
collection  of  such tax by reason of the United States constitution and
of laws of the United States enacted pursuant thereto. The  prepaid  tax
on  diesel  motor  fuel  shall  not  apply to (i) the sale of previously
untaxed non-highway Diesel motor  fuel  to  a  person  registered  as  a
distributor  of Diesel motor fuel other than a sale to such person which
involves a delivery at a filling station or into a repository  which  is
equipped  with  a  hose  or  other  apparatus  by which such fuel can be
dispensed into the fuel tank of a motor vehicle, [or] (ii) the  sale  to
or  delivery  at a filling station or other retail vendor of water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of no more than twenty gallons or to the sale of  CNG  or  hydrogen;  OR
(III)  THE  SALE  OF  PREVIOUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON
REGISTERED UNDER ARTICLE TWELVE-A OF THIS CHAPTER AS  A  DISTRIBUTOR  OF
DIESEL  MOTOR  FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR (B) A
SALE TO SUCH PERSON WHICH INVOLVES A DELIVERY AT A  FILLING  STATION  OR
INTO  A  REPOSITORY  WHICH IS EQUIPPED WITH A HOSE OR OTHER APPARATUS BY
WHICH SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF  A
MOTOR  VEHICLE.  "QUALIFIED  BIODIESEL"  MEANS  SUCH  TERM AS DEFINED IN
SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
TER.
  S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended by section 39-a of part K of chapter 61 of the laws of 2011,  is
amended to read as follows:
  (2)  Every distributor of diesel motor fuel shall pay, as a prepayment
on account of the taxes imposed by this  article  and  pursuant  to  the
authority of article twenty-nine of this chapter, a tax upon the sale or
use  of diesel motor fuel in this state. The tax shall be computed based
upon the number of gallons of diesel motor fuel sold or used.  Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the delivery  of  diesel  motor  fuel  to  a  retail  service
station.  The collection of such tax shall not be made applicable to the
sale or use of diesel motor fuel under circumstances which preclude  the
collection  of  such tax by reason of the United States constitution and
of laws of the United States enacted pursuant thereto. The  prepaid  tax
on  diesel  motor  fuel  shall  not apply to (i) the sale of [previously
untaxed] non-highway Diesel motor fuel  to  a  person  registered  as  a
distributor  of Diesel motor fuel other than a sale to such person which
involves a delivery at a filling station or into a repository  which  is
equipped  with  a  hose  or  other  apparatus  by which such fuel can be
dispensed into the fuel tank of a motor vehicle, [or] (ii) the  sale  to
or  delivery  at a filling station or other retail vendor of water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY  UNTAXED
QUALIFIED  BIODIESEL  TO  A  PERSON REGISTERED UNDER ARTICLE TWELVE-A OF
THIS CHAPTER AS A DISTRIBUTOR OF DIESEL MOTOR  FUEL  OTHER  THAN  (A)  A
RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
DELIVERY  AT  A  FILLING  STATION OR INTO A REPOSITORY WHICH IS EQUIPPED
WITH A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN  BE
DISPENSED  INTO  THE FUEL TANK OF A MOTOR VEHICLE. "QUALIFIED BIODIESEL"

S. 6259--B                         33                         A. 9059--B

MEANS SUCH TERM AS DEFINED IN SUBDIVISION TWENTY-THREE  OF  SECTION  TWO
HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S  7. This act shall take effect June 1, 2012; provided, however, that
the amendments to paragraph 2 of subdivision (a) of section 1102 of  the
tax law made by section five of this act shall be subject to the expira-
tion  and  reversion of such paragraph pursuant to section 19 of part W1
of chapter 109 of the laws of 2006, as amended, when upon such date  the
provisions  of  section  six  of  this  act shall take effect; provided,
further, that sections five and six of this act  shall  apply  to  sales
made  and  uses occurring on and after such effective date in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

                                 PART F

  Section 1. Subparagraph (B) of  paragraph  4  of  subdivision  (a)  of
section  1134  of  the  tax  law, as amended by chapter 2 of the laws of
1995, is amended to read as follows:
  (B) Where a person files a certificate of registration for  a  certif-
icate of authority under this subdivision and in considering such appli-
cation  the  commissioner ascertains that (i) any tax imposed under this
chapter or any related statute, as defined in section  eighteen  hundred
of  this chapter, has been finally determined to be due from such person
and has not been paid in full, (ii) [a] ANY tax [due under this  article
or any law, ordinance or resolution enacted pursuant to the authority of
article  twenty-nine] IMPOSED UNDER THIS CHAPTER OR ANY RELATED STATUTE,
AS DEFINED IN SECTION EIGHTEEN HUNDRED of this chapter, has been finally
determined to be due from an officer, director, partner or  employee  of
such person, and, where such person is a limited liability company, also
a  member or manager of such person, in the officer's, director's, part-
ner's, member's, manager's or employee's capacity as a  person  required
to  collect  tax  on behalf of such person or another person and has not
been paid, (iii) such person has been convicted of a crime provided  for
in  this chapter within one year from the date on which such certificate
of registration is filed, (iv) an officer, director, partner or employee
of such person, and, where such person is a limited  liability  company,
also  a member or manager of such person, which officer, director, part-
ner, member, manager or employee is a person required to collect tax  on
behalf  of  such  person filing a certificate of registration has in the
officer's, director's,  partner's,  member's,  manager's  or  employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within  one year from the date on which such certificate of registration
is filed, (v) a shareholder owning more than fifty percent of the number
of shares of stock of such person (where such person is  a  corporation)
entitling  the  holder  thereof to vote for the election of directors or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any tax imposed under this chapter or any related statute as defined  in
section  eighteen  hundred  of this chapter was finally determined to be
due and where such tax has not been paid in full, or at  the  time  such
other person was convicted of a crime provided for in this chapter with-
in  one  year from the date on which such certificate of registration is
filed, or (vi) a certificate of authority issued to such person has been
revoked or suspended pursuant to  subparagraph  (A)  of  this  paragraph
within  one year from the date on which such certificate of registration

S. 6259--B                         34                         A. 9059--B

is filed, the commissioner may refuse to issue a certificate of authori-
ty.
  S 2. Subdivision (g) of section 1146 of the tax law, as added by chap-
ter 577 of the laws of 1997, is amended to read as follows:
  (g)  (1)  Notwithstanding  the  provisions  of subdivision (a) of this
section, if the  commissioner  determines  that  a  person  required  to
collect  tax is liable for any tax, penalty or interest under this arti-
cle or is liable for a penalty under subdivision (e) of  section  eleven
hundred  forty-five  of  this  article with respect to any failure, upon
request in writing of such person, the commissioner  shall  disclose  in
writing  to  such person [(1)] (I) the name of any other person required
to collect tax or any other person liable for such  penalty  under  such
subdivision  (e)  whom  the commissioner has determined to be liable for
the same tax, penalty or interest or for such penalty  with  respect  to
such  failure,  and [(2)] (II) whether the commissioner has attempted to
collect such tax, penalty or interest or such penalty  from  such  other
person, the general nature of such collection activities, and the amount
collected.
  (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, FOR
THE PURPOSES OF SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION  ELEVEN  HUNDRED  THIRTY-FOUR  OF THIS PART, IF THE COMMISSIONER
DETERMINES THAT ANY TAX IMPOSED UNDER THIS CHAPTER OR ANY RELATED  STAT-
UTE,  AS  DEFINED  IN SECTION EIGHTEEN HUNDRED OF THIS CHAPTER, HAS BEEN
FINALLY DETERMINED TO BE DUE FROM A PERSON REQUIRED TO COLLECT  TAX  AND
HAS  NOT  BEEN  PAID,  UPON  WRITTEN REQUEST OF THE PERSON WHO FILED THE
CERTIFICATE OF REGISTRATION FOR A  CERTIFICATE  OF  AUTHORITY  THAT  WAS
REFUSED,  THE  COMMISSIONER  MAY  DISCLOSE  TO  SUCH PERSON THE NAME AND
AMOUNT OF TAX DUE OF THE PERSON OR PERSONS REQUIRED TO COLLECT TAX WHOSE
TAX LIABILITY OR LIABILITIES WERE GROUNDS FOR THE REFUSAL TO  ISSUE  THE
CERTIFICATE OF AUTHORITY.
  S 3. This act shall take effect immediately.

                                 PART G

  Section  1.  Paragraph  10 of subsection (g) of section 658 of the tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the  admin-
istrative code of the city of New York is REPEALED.
  S  3.  Paragraph  5 of subsection (u) of section 685 of the tax law is
REPEALED.
  S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York is REPEALED.
  S 5. Section 23 of part U of chapter 61 of the laws of 2011,  amending
the  real  property tax law, the general municipal law, the public offi-
cers law, the tax law, the abandoned property law, the state finance law
and the administrative code of the city of New York, relating to  estab-
lishing  standards  for  electronic  real  property  tax administration,
allowing the department of taxation and finance to use electronic commu-
nication means to furnish tax notices  and  other  documents,  mandatory
electronic  filing of tax documents, debit cards issued for tax refunds,
improving sales tax compliance and repealing certain provisions  of  the
tax  law  and  the  administrative code of the city of New York relating
thereto, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a) the amendments to section 29 of the tax law made by section  thir-
teen  of  this  act shall apply to tax documents filed or required to be

S. 6259--B                         35                         A. 9059--B

filed on or after the sixtieth day  after  which  this  act  shall  have
become  a  law  [and  shall  expire  and be deemed repealed December 31,
2012], provided however that the amendments to paragraph 4  of  subdivi-
sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
of  section  29 of the tax law made by section thirteen of this act with
regard to individual taxpayers shall take effect September 15, 2011  but
only  if  the  commissioner  of taxation and finance has reported in the
report required by section seventeen-b of this act that  the  percentage
of  individual  taxpayers  electronically  filing  their 2010 income tax
returns is less than eighty-five percent; provided that the commissioner
of taxation and finance  shall  notify  the  legislative  bill  drafting
commission  of the date of the issuance of such report in order that the
commission may maintain an accurate and timely effective  data  base  of
the official text of the laws of the state of New York in furtherance of
effectuating  the  provisions  of  section 44 of the legislative law and
section 70-b of the public officers law;
  (b) sections fourteen, fifteen, sixteen  and  seventeen  of  this  act
shall  take  effect  September  15, 2011 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent;
  (c)  sections  fourteen-a  and fifteen-a of this act shall take effect
September 15, 2011 and expire and be deemed repealed December  31,  2012
but  shall  take effect only if the commissioner of taxation and finance
has reported in the report required by section seventeen-b of  this  act
that  the percentage of individual taxpayers electronically filing their
2010 income tax returns is eighty-five percent or greater; AND
  (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of  this
act  shall  take  effect January 1, 2013 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent[; and
  (e)  sections twenty-one and twenty-one-a of this act shall expire and
be deemed repealed December 31, 2012].
  S 6. Paragraph 2 of subsection (b) of section 29 of  the  tax  law  as
added  by  section  13  of  part U of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) If a tax return preparer prepared  more  than  five  original  tax
documents  during any calendar year beginning on or after January first,
two thousand eleven, and if in any succeeding  calendar  year  that  tax
return  preparer prepares one or more authorized [returns] TAX DOCUMENTS
using tax software, then, for such succeeding calendar year and for each
subsequent  calendar  year  thereafter,  all  authorized  tax  documents
prepared  by  that  tax return preparer must be filed electronically, in
accordance with instructions prescribed by the commissioner.
  S 7. This act shall take effect immediately, provided,  however,  that
the amendments to paragraph 2 of subsection (b) of section 29 of the tax
law made by section six of this act shall be deemed to have been in full
force  and  effect on the same date and in the same manner as section 13
of part U of chapter 61 of the laws of 2011, as amended, took effect.

                                 PART H

S. 6259--B                         36                         A. 9059--B

  Section 1. Paragraphs 2, 3 and 7 of subsection (g-1) of section 606 of
the tax law, paragraph 2 as amended by chapter 378 of the laws of  2005,
subparagraph (B) of paragraph 2 as amended by chapter 251 of the laws of
2006,  paragraph  3  as  amended  by chapter 128 of the laws of 2007 and
paragraph  7  as  renumbered  by  chapter  128  of the laws of 2007, are
amended to read as follows:
  (2) Qualified solar energy system equipment expenditures. (A) The term
"qualified solar energy system equipment  expenditures"  means  expendi-
tures for:
  (I)  the  purchase of solar energy system equipment which is installed
in connection with residential property which is [(i)]  (I)  located  in
this  state  and [(ii) which is] (II) used by the taxpayer as his or her
principal residence at the time the solar  energy  system  equipment  is
placed in service;
  (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
TIAL  PROPERTY WHICH IS: (I) LOCATED IN THIS STATE; AND (II) USED BY THE
TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR  ENERGY
SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
  (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHERE THE POWER PURCHASED IS GENERATED BY  SOLAR  ENERGY
SYSTEM  EQUIPMENT  OWNED  BY  A  PERSON  OTHER  THAN THE TAXPAYER AND IS
INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS: (I)  LOCATED
IN  THIS  STATE;  AND  (II) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL
RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM IS PLACED IN SERVICE.
  (B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original  installation,  architectural  and  engineering  services,  and
designs  and  plans directly related to the construction or installation
of the solar energy system equipment.
  (C) Such qualified expenditures shall not include  interest  or  other
finance charges.
  (D)   SUCH   QUALIFIED  SOLAR  ENERGY  SYSTEM  EQUIPMENT  EXPENDITURES
DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS  PARAGRAPH
SHALL  INCLUDE  AN  AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE
YEAR UNDER SUCH AGREEMENT.
  (E) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBDIVISION, A TAXPAYER  MAY
CLAIM  CREDIT  FOR  EXPENDITURES  DESCRIBED  IN  CLAUSE (II) OR (III) OF
SUBPARAGRAPH (A) OF THIS PARAGRAPH FOR THREE CONSECUTIVE TAXABLE  YEARS;
PROVIDED, HOWEVER, THAT THE AMOUNT CLAIMED IN ANY TAXABLE YEAR SHALL NOT
EXCEED THE AMOUNT OF SUCH EXPENDITURES IN THAT YEAR AND THE TOTAL AMOUNT
OF  CREDITS  CLAIMED  BY  A  TAXPAYER FOR ALL TAXABLE YEARS SHALL BE THE
LESSER OF TWELVE AND ONE-HALF PERCENT OF THE TOTAL  AMOUNT  TO  BE  PAID
UNDER THE WRITTEN AGREEMENTS DESCRIBED IN SUCH CLAUSES, OR FIVE THOUSAND
DOLLARS;  AND  PROVIDED  FURTHER  THAT  NO  CREDIT  SHALL BE ALLOWED FOR
EXPENDITURES DESCRIBED IN CLAUSE (II) OR (III) OF  SUBPARAGRAPH  (A)  OF
THIS PARAGRAPH WHERE THE WRITTEN AGREEMENT DESCRIBED IN SUCH CLAUSES WAS
ENTERED INTO ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
  (3)  Solar  energy  system  equipment.  The  term "solar energy system
equipment" shall  mean  an  arrangement  or  combination  of  components
utilizing solar radiation, which, when installed in a residence, produc-
es energy designed to provide heating, cooling, hot water or electricity
for  use  in  such  residence.  Such arrangement or components shall not
include equipment connected to solar energy system equipment that  is  a
component  of  part  or parts of a non-solar energy system or which uses

S. 6259--B                         37                         A. 9059--B

any sort of recreational facility or  equipment  as  a  storage  medium.
Solar  energy  system  equipment that generates electricity for use in a
residence must conform to applicable requirements set forth  in  section
sixty-six-j  of  the  public service law. Provided, however, where solar
energy system equipment is purchased  and  installed  by  a  condominium
management   association  or  a  cooperative  housing  corporation,  for
purposes  of  this  subsection  only,   the   term   ["ten   kilowatts"]
"TWENTY-FIVE  KILOWATTS"  in  such  section sixty-six-j shall be read as
"fifty kilowatts."
  (7) When credit allowed. The  credit  provided  for  herein  shall  be
allowed  with  respect  to  the  taxable year, commencing after nineteen
hundred ninety-seven, in which the  solar  energy  system  equipment  is
placed  in service, OR WHEN THE EXPENDITURES DESCRIBED IN CLAUSE (II) OR
(III) OF SUBPARAGRAPH (A) OF THIS SECTION ARE INCURRED, AS APPLICABLE.
  S 2. Subdivision (ee) of section 1115 of the  tax  law,  as  added  by
chapter 306 of the laws of 2005, is amended to read as follows:
  (ee)  Receipts  from  the  retail  sale  of [residential] solar energy
systems equipment and of the service of installing such systems shall be
exempt from tax under this article. For the purposes  of  this  subdivi-
sion,  "[residential]  solar  energy  systems  equipment"  shall mean an
arrangement or combination of components [installed in a residence] that
utilizes solar radiation to produce energy designed to provide  heating,
cooling,  hot  water  and/or  electricity  IN A BUILDING OR A STRUCTURE.
Such arrangement or components shall not [include] EXCEED  AN  INSTALLED
CAPACITY  RATING  OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT THEREOF AND
SHALL NOT INCLUDE equipment that is part of a non-solar energy system or
[which uses any sort of recreational facility or equipment as a  storage
medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  section  3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the
definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,

S. 6259--B                         38                         A. 9059--B

unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision, shall omit the [residential] solar energy systems equipment
exemption provided for in subdivision (ee) and the clothing and footwear
exemption provided for in paragraph thirty of subdivision (a) of section
eleven  hundred  fifteen  of  this  chapter, unless such city, county or
school district elects otherwise as to either such  [residential]  solar
energy  systems  equipment  exemption  or  such  clothing  and  footwear
exemption.
  S 4. Paragraph 1 of subdivision (n) of section 1210 of the tax law, as
added by chapter 306 of the laws of 2005, is amended to read as follows:
  (1) Any city having a population of one million or more in  which  the
taxes  imposed  by  section  eleven hundred seven of this chapter are in
effect, acting through its local legislative body, is hereby  authorized
and empowered to elect to provide the same exemptions from such taxes as
the  [residential]  solar  energy systems equipment exemption from state
sales and compensating  use  taxes  described  in  subdivision  (ee)  of
section  eleven hundred fifteen of this chapter by enacting a resolution
in the form set forth in paragraph two of this  subdivision;  whereupon,
upon  compliance with the provisions of subdivisions (d) and (e) of this
section, such enactment of such resolution shall  be  deemed  to  be  an
amendment  to  such section eleven hundred seven and such section eleven
hundred seven shall be deemed to incorporate such exemptions as if  they
had  been  duly  enacted  by  the  state legislature and approved by the
governor.
  S 5. This act shall take effect immediately, provided that:
  (1) section one of this act shall apply  to  leases  of  solar  energy
system equipment and purchases of power under written agreements entered
into on or after such effective date; and
  (2) sections two, three and four of this act shall apply to sales made
or  uses  occurring on or after September 1, 2012 in accordance with the
applicable transitional provisions of sections 1106 and 1217 of the  tax
law.

                                 PART I

  Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
law, as amended by chapter 440 of the laws of 2006, is amended  to  read
as follows:
  (1)  A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which is subject to tax under article nine-A or twenty-two  of  this
chapter,  shall  be  allowed  a credit against such tax, pursuant to the
provisions referenced in subdivision [(d)] (C) of this  section,  to  be
computed  as provided in this section. Provided, however, to be eligible
for such credit, at least seventy-five percent of the  production  costs
(excluding post production costs) paid or incurred directly and predomi-
nantly  in  the  actual filming or recording of the qualified commercial
must be costs incurred in New York state.  THE TAX CREDIT ALLOWED PURSU-
ANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE  JANU-
ARY FIRST, TWO THOUSAND SEVENTEEN.

S. 6259--B                         39                         A. 9059--B

  S 2. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
added  by  section  3  of  part  V of chapter 62 of the laws of 2006, is
amended to read as follows:
  (a)  Allowance  of  credit.  A  taxpayer  that is eligible pursuant to
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article.   THE  TAX  CREDIT  ALLOWED  PURSUANT  TO  THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
  S  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
added by section 5 of part V of chapter 62  of  the  laws  of  2006,  is
amended to read as follows:
  (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article.   THE  TAX  CREDIT  ALLOWED  PURSUANT  TO  THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
  S  4. Section 10 of part V of chapter 62 of the laws of 2006, relating
to the empire state commercial production tax credit, is amended to read
as follows:
  S 10. This act shall take effect immediately [and shall apply to taxa-
ble years beginning on and after January 1, 2007 and shall expire and be
deemed repealed on December 31, 2011]; provided, however  that  the  IMB
credit  for  energy  taxes  under  subsection  (t-1)  and the state film
production credit under subsection (gg) of section 606 of  the  tax  law
contained  in  section four of this act shall expire on the same date as
provided in subdivision (a) of section 49 of part Y of chapter 63 of the
laws of 2000, as amended and section 9 of part P of chapter  60  of  the
laws of 2004, as amended, respectively.
  S 5. This act shall take effect immediately.

                                 PART J

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 1 of part F of chapter 61 of the  laws  of  2011,  is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [thirty-two] FORTY million dollars. The limitation
provided by this subdivision applies only to allocation of the aggregate
dollar  amount  of  credit  by  the  commissioner, and does not apply to
allowance to a taxpayer of the credit with respect to an  eligible  low-
income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall be [forty] FORTY-EIGHT million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:

S. 6259--B                         40                         A. 9059--B

  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [forty-eight] FIFTY-SIX million dollars. The limi-
tation provided by this subdivision applies only to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [fifty-six] SIXTY-FOUR million dollars. The  limi-
tation  provided  by  this subdivision applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. This  act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2013, section three
of this act shall take effect April 1, 2014, section four  of  this  act
shall  take effect April 1, 2015 and section five of this act shall take
effect April 1, 2016.

                                 PART K

  Section 1. Subdivision (a) of section 28 of the tax law, as amended by
section 1 of part A of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  If the
taxpayer is a partner in a partnership or shareholder of a  New  York  S
corporation,  then  the  cap  imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY.
  S 2. Section 187-c of the tax law, as added by section 2 of part X  of
chapter 62 of the laws of 2006, is amended to read as follows:

S. 6259--B                         41                         A. 9059--B

  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section twenty-eight of this  chap-
ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
SIX,  against  the  tax imposed by this article. Provided, however, that
the amount of such credit allowed against the tax imposed by section one
hundred eighty-four of this article shall be the excess of the amount of
such  credit  over  the  amount  of  any  credit allowed by this section
against the tax imposed by section  one  hundred  eighty-three  of  this
article.  In  no event shall the credit under this section be allowed in
an amount which will reduce the tax payable to less than the  applicable
minimum  tax  fixed  by  section one hundred eighty-three or one hundred
eighty-five of this article. If,  however,  the  amount  of  the  credit
allowed  under this section for any taxable year reduces the tax to such
amount, the excess shall be treated as an overpayment of tax to be cred-
ited or refunded in  accordance  with  the  provisions  of  section  six
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection  (c)  of  section  one  thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid  thereon.    THE  TAX  CREDIT
ALLOWED  PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S 3. Subdivision 38 of section 210 of the tax law, as added by section
3 of part X of chapter 62 of the laws of 2006, is  amended  to  read  as
follows:
  38.  Biofuel  production credit. A taxpayer shall be allowed a credit,
to be computed as provided in section twenty-eight of this  chapter,  AS
ADDED  BY  PART  X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
against the tax imposed by this article. The credit allowed  under  this
subdivision  for  any taxable year shall 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 shall be treated as an overpayment of tax to be credited or
refunded  in  accordance  with  the  provisions  of section one thousand
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection  (c)  of  section  one  thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid  thereon.    THE  TAX  CREDIT
ALLOWED  PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S 4. Subsection (jj) of section 606  of  the  tax  law,  as  added  by
section  5  of  part  X of chapter 62 of the laws of 2006, is amended to
read as follows:
  (jj) Biofuel production credit. A taxpayer shall be allowed  a  credit
to  be  computed as provided in section twenty-eight of this chapter, AS
ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF  TWO  THOUSAND  SIX,
against  the  tax  imposed  by this article. 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 overpay-
ment 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 shall be paid thereon.  THE TAX CREDIT ALLOWED PURSUANT
TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING  BEFORE  JANUARY
FIRST, TWO THOUSAND TWENTY.
  S  5.  Section 6 of part X of chapter 62 of the laws of 2006, amending
the tax law relating to providing tax  credits  for  biofuel  production
plants, is amended to read as follows:

S. 6259--B                         42                         A. 9059--B

  S  6. This act shall take effect immediately [and shall apply to taxa-
ble years commencing on and after January 1, 2006 and before January  1,
2013];  provided,  however  that  the  IMB credit for energy taxes under
subsection (t-1) and the state film production credit  under  subsection
(gg) of section 606 of the tax law contained in section four of this act
shall  expire on the same date as provided in subdivision (a) of section
49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
of part P of chapter 60 of the laws of 2004, as amended, respectively.
  S 6. This act shall take effect immediately.

                                 PART L

  Section 1. Section 2 of part I of chapter 58  of  the  laws  of  2006,
relating  to  providing an enhanced earned income tax credit, is amended
to read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January  1,  2006  [and  before  January  1,
2013].
  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 5232 of the civil practice law and rules is amended
by adding a new subdivision (i) to read as follows:
  (I)  NO  BANKING  INSTITUTION SHALL SETOFF AND APPLY A LEVY PROCESSING
FEE AGAINST THE PROCEEDS OF A LEVY FOR TAXES IMPOSED BY OR  PURSUANT  TO
THE  AUTHORITY  OF  THE  TAX  LAW OR FOR CHILD SUPPORT REGARDLESS OF ANY
TERMS OF AGREEMENT, OR SCHEDULE OF FEES, OR OTHER CONTRACT  BETWEEN  THE
DEBTOR AND THE BANKING INSTITUTION.
  S 2. Subdivision (d) of section 151 of the debtor and creditor law, as
amended  by  chapter  553  of  the  laws  of 1990, is amended to read as
follows:
  (d) the issuance of any execution against any of  the  property  of  a
creditor, EXCEPT AS PROVIDED FOR IN SUBDIVISION (I) OF SECTION FIFTY-TWO
HUNDRED THIRTY-TWO OF THE CIVIL PRACTICE LAW AND RULES;
  S  3.   This act shall take effect on the ninetieth day after it shall
have become a law.

                                 PART N

  Section 1. Subsection (a) of section 801 of the tax law, as amended by
section 2 of part B of chapter 56 of the laws of  2011,  is  amended  to
read as follows:
  (a)  For  the sole purpose of providing an additional stable and reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority  and  its subsidiaries and affiliates to preserve, operate and
improve essential transit and transportation services in  the  metropol-
itan  commuter  transportation  district,  a  tax  is  hereby imposed on
EMPLOYERS AND INDIVIDUALS AS FOLLOWS: (1) FOR employers  who  engage  in
business  within  the  MCTD  [(1)],  THE TAX IS IMPOSED at a rate of (A)
eleven hundredths (.11) percent OF THE  PAYROLL  EXPENSE  for  employers
with payroll expense no greater than three hundred seventy-five thousand
dollars  in  any  calendar  quarter,  (B)  twenty-three hundredths (.23)
percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
er than three hundred seventy-five thousand dollars and no greater  than
four  hundred thirty-seven thousand five hundred dollars in any calendar

S. 6259--B                         43                         A. 9059--B

quarter, and (C) thirty-four hundredths (.34)  percent  OF  THE  PAYROLL
EXPENSE  for  employers  with  payroll expense in excess of four hundred
thirty-seven thousand five hundred dollars  in  any  calendar  quarter[,
and].  IF  THE  EMPLOYER  IS  A  PROFESSIONAL  EMPLOYER ORGANIZATION, AS
DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE  ATTRIBUTABLE
TO  EACH  CLIENT  WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
WITH SUCH ORGANIZATION AND THE  PAYROLL  EXPENSE  ATTRIBUTABLE  TO  SUCH
ORGANIZATION  ITSELF,  MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
BY THE APPLICABLE RATE SET FORTH IN  THIS  PARAGRAPH  AND  ADDING  THOSE
PRODUCTS  TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
thirty-four hundredths (.34) percent of the net earnings  from  self-em-
ployment  of individuals that are attributable to the MCTD if such earn-
ings attributable to the MCTD exceed fifty thousand dollars for the  tax
year.
  S  2.  Section  4 of part B of chapter 56 of the laws of 2011 amending
the tax law relating to the tax rates and exclusions under the metropol-
itan commuter transportation mobility tax is amended to read as follows:
  S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY  1,  2012;  provided  however,  that
section  one  of  this act and the amendments in section two of this act
that concern employers shall take effect for the  quarter  beginning  on
April 1, 2012.
  S 3. This act shall take effect immediately; provided however that the
amendment  in  section  one of this act concerning professional employer
organizations shall take effect for the quarter beginning  on  April  1,
2012.

                                 PART O

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other
material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which pari-mutuel betting is authorized by this chapter at one  or  more
simulcast  facilities  for  each  of  the  contracting off-track betting

S. 6259--B                         44                         A. 9059--B

corporations which shall include wagers made in accordance with  section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this  article;  provided  further  that the contract provisions or other
simulcast  arrangements  for  such  simulcast  facility shall be no less
favorable than those in effect on January first, two thousand five; (ii)
that each off-track betting corporation  having  within  its  geographic
boundaries  such residences, homes or other areas technically capable of
receiving the simulcast signal shall be a contracting party;  (iii)  the
distribution  of  revenues  shall be subject to contractual agreement of
the parties except that statutory payments to  non-contracting  parties,
if  any,  may  not be reduced; provided, however, that nothing herein to
the contrary shall prevent a track  from  televising  its  races  on  an
irregular basis primarily for promotional or marketing purposes as found
by  the board. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall  not  apply.  Any  agreement
authorizing  an  in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,
however,  that  any  party to such agreement may elect to terminate such
agreement upon conveying written notice to all  other  parties  of  such
agreement  at  least  forty-five days prior to the effective date of the
termination, via registered mail. Any party to  an  agreement  receiving
such  notice of an intent to terminate, may request the board to mediate
between the parties new terms and conditions in a replacement  agreement
between the parties as will permit continuation of an in-home experiment
until  June  thirtieth,  two  thousand  [twelve]  THIRTEEN;  and (iv) no
in-home simulcasting in the thoroughbred special betting district  shall
occur without the approval of the regional thoroughbred track.
  S  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part S of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county  on  races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twelve] THIRTEEN, the amount  used  exclusively
for  purses  to  be  awarded  at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and  one-half
percent  of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference  in  total  commissions
determined by comparing the total commissions available after July twen-
ty-first,  nineteen  hundred  ninety-five  to the total commissions that
would have been available to such  track  prior  to  July  twenty-first,
nineteen hundred ninety-five.
  S  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth,  two  thousand [twelve] THIRTEEN and on any day regardless of
whether or not a franchised corporation is conducting a race meeting  in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two  thousand [twelve] THIRTEEN. On any day on which a franchised corpo-

S. 6259--B                         45                         A. 9059--B

ration has not scheduled a racing  program  but  a  thoroughbred  racing
corporation  located  within  the state is conducting racing, every off-
track betting corporation branch office and every simulcasting  facility
licensed  in  accordance  with  section  one  thousand  seven (that have
entered into a written agreement  with  such  facility's  representative
horsemen's  organization, as approved by the board), one thousand eight,
or one thousand nine of this  article  shall  be  authorized  to  accept
wagers  and  display  the live simulcast signal from thoroughbred tracks
located in another state or foreign country  subject  to  the  following
provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part S of chapter 61 of the
laws of 2011, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twelve] THIRTEEN.  This section shall supersede
all inconsistent provisions of this chapter.
  S 5. The opening paragraph of subdivision 1 of  section  1016  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 5
of part S of chapter 61 of the laws of  2011,  is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any  day  during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twelve]  THIRTEEN.    Every  off-track  betting
corporation  branch  office  and every simulcasting facility licensed in
accordance with section one thousand seven  that  have  entered  into  a
written  agreement with such facility's representative horsemen's organ-
ization as approved by the board, one thousand  eight  or  one  thousand
nine  of  this  article shall be authorized to accept wagers and display
the live full-card simulcast signal of thoroughbred  tracks  (which  may
include  quarter horse or mixed meetings provided that all such wagering
on such races shall be construed to be thoroughbred  races)  located  in
another  state  or foreign country, subject to the following provisions;
provided, however, no such written agreement  shall  be  required  of  a
franchised  corporation licensed in accordance with section one thousand
seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part S of chapter
61 of the laws of 2011, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [eleven] TWELVE, when a franchised corporation is conducting a race
meeting within the  state  at  Saratoga  Race  Course,  every  off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as approved by the board), one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such

S. 6259--B                         46                         A. 9059--B

written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part S of  chapter  61  of  the
laws of 2011, is amended to read as follows:
  S  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2012]  2013;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified
or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting  and the imposition of certain taxes, as amended by section
8 of part S of chapter 61 of the laws of 2011, is  amended  to  read  as
follows:
  S  54.  This  act  shall  take  effect immediately; provided, however,
sections three through twelve of this act shall take effect  on  January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing  law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2012] 2013; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.
  S  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part S
of chapter 61 of the laws of 2011, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established  is subject to the prior approval of the racing and wagering
board. Such rate may not be changed more than once per calendar  quarter
to  be effective on the first day of the calendar quarter. "Exotic bets"
and "multiple bets" shall have the meanings set forth  in  section  five
hundred  nineteen  of this chapter.   "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for

S. 6259--B                         47                         A. 9059--B

payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid  by  such  franchised  corporation  to  the
commissioner  of  taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run  at
the  race  meetings  held  by such franchised corporation, the following
percentages of the total pool for regular and  multiple  bets  five  per
centum  of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
centum  plus  twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the  breaks.  For
the  period  June  first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two  and  one-
half  per  centum,  plus twenty per centum of the breaks. For the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one, such tax on all wagers shall be two and six-
tenths per centum and for the  period  April  first,  two  thousand  one
through  December thirty-first, two thousand [twelve] THIRTEEN, such tax
on all wagers shall be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New  York  state
thoroughbred  breeding  and  development  fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and  three
per  centum  of super exotic bets provided, however, that for the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one,  such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[twelve] THIRTEEN, such payment shall be seven-tenths of one per  centum
of such pools.
  S  10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 10 of part S of  chapter  61
of the laws of 2011, is amended to read as follows:
  5.  The  provisions  of this section shall expire and be of no further
force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
  S 11. This act shall take effect immediately.

                                 PART P

  Section 1. Subdivision 3 of section 205 of the tax law,  as  added  by
section  8  of  part U1 of chapter 62 of the laws of 2003, is amended to
read as follows:
  3. [From the] THE moneys collected from the taxes imposed by  sections
one  hundred eighty-three and one hundred eighty-four of this article on
and after April first,  two  thousand  [four]  TWELVE,  after  reserving
amounts  for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS:
twenty percent of such moneys shall be deposited to the  credit  of  the
dedicated  highway  and bridge trust fund established by section eighty-
nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT  OF
SUCH  MONEYS  shall  be  deposited  in the mass transportation operating
assistance fund to the credit of the  metropolitan  mass  transportation
operating  assistance account created pursuant to section eighty-eight-a
of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL  BE

S. 6259--B                         48                         A. 9059--B

DEPOSITED  IN  THE  MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE
CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT
CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
  S  2. This act shall take effect immediately and shall be deemed to be
in full force and effect on and after April 1, 2012; provided,  however,
that  the amendments to subdivision 3 of section 205 of the tax law made
by section one of this act shall not affect the repeal of such  subdivi-
sion and shall be deemed to be repealed therewith.

                                 PART Q

  Section  1. Subdivision (e) of section 1105 of the tax law, as amended
by section 4 of part AA of chapter 57 of the laws of 2010, is amended to
read as follows:
  (e) (1) The rent for every occupancy of a room or rooms in a hotel  in
this  state,  except that the tax shall not be imposed upon (i) a perma-
nent resident, or (ii) where the rent is not more than at  the  rate  of
two dollars per day.
  (2)  [When]  EXCEPT  AS  PROVIDED IN SUBDIVISION (R) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS PART, WHEN occupancy is provided,  for  a  single
consideration,  with property, services, amusement charges, or any other
items, the separate sale of which is not subject to tax under this arti-
cle, the entire consideration shall be treated as rent  subject  to  tax
under  paragraph  one of this subdivision; provided, however, that where
the amount of the rent for occupancy is stated separately from the price
of such property, services, amusement charges, or other  items,  on  any
sales slip, invoice, receipt, or other statement given the occupant, and
such  rent  is  reasonable  in  relation  to the value of such property,
services, amusement charges or other items, only such separately  stated
rent will be subject to tax under paragraph one of this subdivision.
  S  2.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (r) to read as follows:
  (R) (1) IN REGARD TO THE COLLECTION OF SALES  TAX  ON  OCCUPANCIES  BY
ROOM  REMARKETERS, WHEN OCCUPANCY IS PROVIDED FOR A SINGLE CONSIDERATION
WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER
OR  NOT  SUCH OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDER-
ATION FOR SUCH TRANSACTION SHALL BE  COMPUTED  AS  FOLLOWS:  EITHER  THE
TOTAL  CONSIDERATION  RECEIVED  BY  THE  ROOM REMARKETER MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDERATION PAYABLE  FOR
THE  OCCUPANCY BY THE ROOM REMARKETER AND THE DENOMINATOR OF WHICH SHALL
BE SUCH CONSIDERATION PAYABLE FOR THE OCCUPANCY PLUS  THE  CONSIDERATION
PAYABLE  BY  THE  REMARKETER  FOR  THE OTHER ITEMS BEING SOLD, OR BY ANY
OTHER METHOD AS MAY BE AUTHORIZED  BY  THE  COMMISSIONER.  IF  THE  ROOM
REMARKETER  FAILS TO SEPARATELY STATE THE TAX ON THE RENT SO COMPUTED ON
A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN TO THE OCCUPANT
IN THE MANNER PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION  OR  FAILS
TO  MAINTAIN  RECORDS  OF  THE PRICES OF ALL COMPONENTS OF A TRANSACTION
COVERED BY THIS PARAGRAPH, THE ENTIRE CONSIDERATION SHALL BE TREATED  AS
RENT  SUBJECT  TO  TAX UNDER PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION
ELEVEN HUNDRED FIVE OF THIS PART. NOTHING HEREIN SHALL BE  CONSTRUED  TO
SUBJECT  TO  TAX OR EXEMPT FROM TAX ANY SERVICE OR PROPERTY OR AMUSEMENT
CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR EXEMPT FROM TAX  UNDER
THIS ARTICLE OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
CHAPTER.  A  ROOM  REMARKETER'S RECORDS OF THE CONSIDERATION PAYABLE FOR
ALL COMPONENTS OF A TRANSACTION COVERED BY THIS  PARAGRAPH  ARE  RECORDS

S. 6259--B                         49                         A. 9059--B

REQUIRED  TO  BE  MAINTAINED  FOR PURPOSES OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
  (2)  IN  REGARD  TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY ROOM
REMARKETERS, INCLUDING A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF  THIS
SUBDIVISION, THE REQUIREMENTS OF THE SECOND SENTENCE OF PARAGRAPH ONE OF
SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE
SHALL BE DEEMED SATISFIED IF THE REMARKETER GIVES THE CUSTOMER  A  SALES
SLIP,  INVOICE,  RECEIPT,  OR  OTHER  STATEMENT OF THE PRICE ("INVOICE")
PRIOR TO THE CUSTOMER'S COMPLETION OF HIS OR HER OCCUPANCY, ON WHICH THE
AMOUNT OF TAX DUE UNDER THIS ARTICLE AND PURSUANT TO  THE  AUTHORITY  OF
ARTICLE  TWENTY-NINE OF THIS CHAPTER IS STATED. THE ROOM REMARKETER MUST
KEEP EITHER A COPY OF THE INVOICE AS  REQUIRED  BY  SUBDIVISION  (A)  OF
SECTION  ELEVEN  HUNDRED  THIRTY-FIVE  OF  THIS  ARTICLE,  OR ELECTRONIC
RECORDS THAT ACCURATELY REFLECT THE INFORMATION THAT IS ON  THE  INVOICE
PROVIDED TO THE CUSTOMER.
  (3)  IN REGARD TO THE REPORTING AND THE PAYMENT TO THE COMMISSIONER BY
ROOM REMARKETERS OF SALES TAX DUE ON  OCCUPANCIES,  SUBDIVISION  (A)  OF
SECTION  ELEVEN  HUNDRED  THIRTY-SEVEN  OF THIS ARTICLE SHALL BE READ TO
REQUIRE A ROOM REMARKETER TO REPORT SUCH SALES  TAX  DUE,  INCLUDING  IN
REGARD  TO A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION,
ON THE RETURN DUE FOR THE FILING PERIOD IN WHICH THE OCCUPANCY ENDS AND,
AT THE TIME OF FILING SUCH RETURN, TO PAY TO THE COMMISSIONER THE  TOTAL
AMOUNT DESCRIBED BY SUCH SUBDIVISION (A).
  S  3.  Subdivision  (e)  of  section  1119 of the tax law, as added by
section 5 of part AA of chapter 57 of the laws of 2010,  is  amended  to
read as follows:
  (e)  Subject  to  conditions and limitations provided in this subdivi-
sion, a room remarketer shall be allowed a refund or credit against  the
amount of tax collected and required to be remitted under section eleven
hundred thirty-seven of this article in the amount of the tax it paid to
an  operator  of a hotel under section eleven hundred four of this arti-
cle, where applicable, and subdivision (e)  of  section  eleven  hundred
five of this article. Provided, however, that, in order to qualify for a
refund  or  credit  under  this  subdivision for any sales tax quarterly
period, the room remarketer must, for that quarter,  (1)  be  registered
for  sales tax purposes under section eleven hundred thirty-four of this
article; (2) collect the taxes imposed by section eleven hundred four of
this article, where applicable, and subdivision (e)  of  section  eleven
hundred five of this article; and (3) furnish the certificate of author-
ity  number  of  the  operator to whom the applicant paid the tax in its
application for refund or credit  if  required  on  that  form  or  upon
request.    PROVIDED THAT IF THE ROOM REMARKETER REQUESTS THE OPERATOR'S
CERTIFICATE OF AUTHORITY NUMBER AND IS NOT PROVIDED  WITH  THAT  NUMBER,
THE ROOM REMARKETER MAY SATISFY THIS REQUIREMENT BY PROVIDING THE OPERA-
TOR'S  NAME,  BUSINESS ADDRESS, TELEPHONE NUMBER, AND THE ADDRESS OF THE
HOTEL WHERE THE OCCUPANCY TOOK PLACE. An application for refund or cred-
it under this subdivision must be filed with the commissioner within the
time provided by subdivision (a) of section eleven  hundred  thirty-nine
of  this  article. The application must be in the form prescribed by the
commissioner. Where an application for credit has been filed, the appli-
cant may immediately take the credit on the return that is  due  coinci-
dent with or immediately subsequent to the time that the applicant files
the  application  for  credit.  However, the taking of the credit on the
return is deemed to be part of the application for credit. The procedure
for granting or denying the applications for refund or credit and review
of those determinations shall be  as  provided  in  subdivision  (e)  of

S. 6259--B                         50                         A. 9059--B

section eleven hundred thirty-nine of this article. An operator, includ-
ing  a  room  remarketer, who is paid tax by a room remarketer must upon
request provide the remarketer with its certificate of authority number,
provided  that  the  operator's  failure  to  do  so does not change the
requirement set forth in paragraph three of this subdivision.
  S 4. Paragraph 4 of subdivision a of section 11-2502 of  the  adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (4)  (I)  When occupancy is provided, for a single consideration, with
property, services, amusement charges, or any other items, the  separate
sale  of  which  is  not  subject  to tax under this chapter, the entire
consideration shall be treated as rent subject to  tax  under  paragraph
one of this subdivision; provided, however, that where the amount of the
rent for occupancy is stated separately from the price of such property,
services,  amusement  charges or other items on any sales slip, invoice,
receipt, or other statement given the occupant and such rent is  reason-
able  in  relation  to  the  value of such property, services, amusement
charges, or other items,  only  such  separately  stated  rent  will  be
subject to tax under [paragraph one of] this subdivision.
  (II) IN REGARD TO THE COLLECTION OF TAX ON OCCUPANCIES BY REMARKETERS,
WHEN  OCCUPANCY  IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROPERTY,
SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER  OR  NOT  SUCH
OTHER  ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDERATION FOR SUCH
SALE SHALL BE COMPUTED AS FOLLOWS: THE TOTAL CONSIDERATION FOR THE  SALE
MULTIPLIED  BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDER-
ATION PAID TO THE HOTEL FOR THE OCCUPANCY AND THE DENOMINATOR  OF  WHICH
SHALL  BE THE CONSIDERATION PAID TO THE HOTEL FOR THE OCCUPANCY PLUS THE
CONSIDERATION PAID TO THE PROVIDERS OF THE OTHER ITEMS BEING SOLD, OR BY
ANY OTHER REASONABLE METHOD  PURSUANT  TO  WHICH  THE  RENT  PORTION  OF
CONSIDERATION  WOULD  BE NO LESS THAN THE COMPUTATION OF RENT PORTION OF
CONSIDERATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.  NOTHING  HEREIN
SHALL  BE  CONSTRUED TO SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR
PROPERTY OR AMUSEMENT CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX  OR
EXEMPT FROM TAX UNDER THIS CHAPTER.
  S  5.  Paragraph 5 of subdivision a of section 11-2502 of the adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (5) A room remarketer shall be allowed a refund or credit against  the
taxes  collected and required to be remitted pursuant to section 11-2505
of this chapter in the amount of the tax it paid to the operator of  the
hotel  or another room remarketer under [paragraph three of] this subdi-
vision. Provided, however, that in order to  qualify  for  a  refund  or
credit  under  this  paragraph  with respect to any quarterly period, as
described in subdivision a of section 11-2504 of this chapter, the  room
remarketer  must,  with  respect  to such quarter, (i) be registered for
hotel room occupancy tax purposes under section 11-2514 of this chapter,
and (ii) collect the taxes imposed by paragraphs two and three  of  this
subdivision.  Subject  to  the  conditions and limitations of this para-
graph, the provisions of section 11-2507 of this chapter shall apply  to
refunds or credits under this paragraph.
  S  6.  Subdivision  f of section 11-2502 of the administrative code of
the city of New York, as amended by local law number 43 of the  city  of
New York for the year 2009 and paragraph 2 as renumbered by section 9 of
part  AA  of  chapter  57  of  the  laws  of 2010, is amended to read as
follows:

S. 6259--B                         51                         A. 9059--B

  f. The tax to be collected shall be stated  [and  charged]  separately
from  the  rent [and shown separately on any record thereof, at the time
when the occupancy is arranged or contracted for  and  charged  for  and
upon every evidence of occupancy or any bill or statement or charge made
for said occupancy issued or delivered by the operator or room remarket-
er]  ON  A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE
("INVOICE") GIVEN TO THE OCCUPANT PRIOR TO THE OCCUPANT'S COMPLETION  OF
HIS  OR HER OCCUPANCY AND BE VERIFIABLE FROM THE BOOKS AND RECORDS OF AN
OPERATOR OR ROOM REMARKETER RESPONSIBLE FOR COLLECTING AND REMITTING THE
TAX.
  (1) Where an occupant rents a room directly from an operator, the  tax
shall  be  paid  by  the  occupant to the operator as trustee for and on
account of the city, and the operator shall be liable for the collection
of the tax on the rent and for the payment of the tax on the rent.
  (2) The operator or room remarketer and any officer of  any  corporate
operator  or  room remarketer shall be personally liable for the portion
of the tax collected or required to be collected under this chapter, and
the operator shall have the same right in respect to collecting the  tax
from  the  occupant, or in respect to nonpayment of the tax by the occu-
pant as if the tax were a part of the rent for the occupancy payable  at
the  time  such  tax shall become due and owing, including all rights of
eviction, dispossession, repossession and enforcement of any innkeeper's
lien that he or she may have in the event of nonpayment of rent  by  the
occupant;  provided  however,  that the commissioner of finance shall be
joined as a party in any action or proceeding brought by the operator to
collect or enforce collection of the tax.
  S 7. This act shall take effect September 1, 2012 and shall  apply  to
occupancies that commence on or after such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through Q of this act shall be
as specifically set forth in the last section of such Parts.

S6259C - Bill Details

See Assembly Version of this Bill:
A9059D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6259C - Bill Texts

view summary

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).

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

                                 6259--C

                            I N  S E N A T E

                            January 17, 2012
                               ___________

A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
  the Constitution -- read twice and ordered printed, and  when  printed
  to  be  committed to the Committee on Finance -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
  erty tax law relating to oil and  gas  charges,  in  relation  to  the
  effective  date  of such chapter (Part A); intentionally omitted (Part
  B); to amend the tax law, in relation to increasing the presumed "cost
  of the agent" relating to cigarette marketing standards; and to  amend
  the  tax law, in relation to the tax on certain tobacco products (Part
  C); to amend chapter 109 of the laws of 2006,  amending  the  tax  law
  relating  to  providing  exemptions,  reimbursements  and credits from
  various taxes for certain alternative fuels, in relation to  extending
  the  alternative  fuels tax exemptions (Part D); to amend the tax law,
  in relation to making technical amendments to  the  tax  treatment  of
  diesel fuel to reflect industry practice (Part E); intentionally omit-
  ted (Part F); intentionally omitted (Part G); to amend the tax law, in
  relation  to the sales and use tax exemption provided for solar energy
  systems equipment; and to amend the tax law, in relation to the quali-
  fied solar and energy storage manufacturer facilities  and  operations
  credit  (Part  H);  to amend the tax law, in relation to extending the
  empire state commercial production tax credit; and to amend part V  of
  chapter 62 of the laws of 2006 relating to the empire state commercial
  production  tax credit, in relation to the effectiveness thereof (Part
  I); to amend the public housing law, in relation to the credit against
  income tax for persons or entities investing  in  low-income  housing;
  and to amend the tax law, in relation to providing that the low income
  housing  credit  shall be treated as an overpayment of taxes (Part J);
  to amend the tax law, in relation to extending the biofuel  production
  tax  credit;  and  to  amend part X of chapter 62 of the laws of 2006,
  amending the tax law relating to providing  tax  credits  for  biofuel
  production  plants, in relation to the effectiveness thereof (Part K);
  to amend chapter 58 of the laws of  2006,  relating  to  providing  an

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-05-2

S. 6259--C                          2

  enhanced  earned  income  tax credit, in relation to the effectiveness
  thereof (Part L); intentionally omitted (Part M);  to  amend  the  tax
  law,  in  relation  to tax rates and exclusions under the metropolitan
  commuter  transportation mobility tax for professional employer organ-
  izations and to amend part B of chapter 56 of the laws of 2011  amend-
  ing  the  tax  law  relating to the tax rates and exclusions under the
  metropolitan commuter transportation mobility tax, in relation to  the
  effectiveness  thereof  (Part  N);  to  amend  the racing, pari-mutuel
  wagering and breeding law,  in  relation  to  licenses  for  simulcast
  facilities,  sums  relating  to  track simulcast, simulcast of out-of-
  state thoroughbred races, simulcasting of races  run  by  out-of-state
  harness  tracks  and  distributions of wagers; to amend chapter 281 of
  the laws of 1994 amending the racing, pari-mutuel wagering and  breed-
  ing law and other laws relating to simulcasting and chapter 346 of the
  laws  of  1990  amending the racing, pari-mutuel wagering and breeding
  law and other laws relating to  simulcasting  and  the  imposition  of
  certain taxes, in relation to extending certain provisions thereof; to
  amend  the  racing, pari-mutuel wagering and breeding law, in relation
  to extending certain provisions thereof (Part O);  to  amend  the  tax
  law,  in  relation  to  the distribution of revenue collected from the
  corporate and utilities taxes imposed under sections 183  and  184  of
  the tax law (Part P); to amend the tax law and the administrative code
  of the city of New York, in relation to facilitating the compliance of
  room  remarketers  with their obligation to collect sales tax on their
  sales of occupancy (Part Q); to amend the  tax  law,  in  relation  to
  establishing  a  small  business  tax credit and a hire-now tax credit
  (Part R); to amend the general  municipal  law,  in  relation  to  the
  municipal  redevelopment  law  authorizing tax increment bonds payable
  from and secured by real property taxes levied by  a  school  district
  within  a  project area (Part S); to amend the tax law, in relation to
  increasing the tax credit for allowable college tuition expenses (Part
  T); to amend the public service law, in relation to a temporary annual
  assessment; to amend part NN of chapter 59 of the laws of 2009  amend-
  ing  the  public  service  law relating to financing operations of the
  department of public service, in relation to the effectiveness  there-
  of;  and  to amend the public service law, in relation to reducing the
  amount a utility can be assessed (Part U); to amend the labor law,  in
  relation  to eliminating an employer's annual notice requirement (Part
  V); to amend the executive law, in relation to requiring  state  agen-
  cies  which  issue  licenses,  registrations,  permits  and/or certif-
  ications to annually report on the periods of time  taken  to  process
  each  application therefor (Part W); to amend the tax law, in relation
  to the qualified emerging technology  company  facilities,  operations
  and  training  credit  (Part  X); to amend the tax law, in relation to
  including payments in lieu of taxes made by a  qualified  empire  zone
  enterprise (QEZE) within the meaning of the  term "eligible real prop-
  erty  taxes"  (Part Y); to amend the tax law, in relation to the defi-
  nition of a resident for the purposes of the personal income tax (Part
  Z); to amend the civil practice law and  rules,  in  relation  to  the
  undertaking required during the pendency of a stay of enforcement of a
  judgment  against tobacco product master settlement agreement signato-
  ries or their successors or affiliates (Part AA);  to  amend  the  tax
  law,  in  relation  to enacting the "economic development liaison act"
  (Part BB); to amend the insurance law, in relation to the life  insur-
  ance  company guaranty corporation of New York (Part CC); to amend the
  tax law, in relation to qualified transportation fringe benefits (Part

S. 6259--C                          3

  DD); to amend the tax law, in relation to increasing the maximum award
  available under the historic preservation tax  credit  (Part  EE);  to
  amend  the  tax  law,  in  relation  to the sale of food and beverages
  through  vending machines (Part FF); to amend the tax law, in relation
  to the definition of employer for certain tax purposes (Part  GG);  to
  amend  the  tax  law,  in  relation  to  establishing a tax credit for
  victims of Hurricane Irene and Tropical Storm Lee (Part HH); to  amend
  chapter  912 of the laws of 1920 relating to the regulation of boxing,
  sparring and wrestling, in  relation  to  establishing  protocols  for
  combative  sports  and  authorizing  mixed martial arts events in this
  state; to amend the tax law, in relation to the imposition of a tax on
  the gross receipts of any person holding any professional  or  amateur
  boxing,  sparring  or  wrestling  match or exhibition, or professional
  combative sports match or exhibition; and providing for the repeal  of
  such  provisions  upon  expiration thereof (Part II); to amend the tax
  law, in relation to program six certified  capital  companies  and  to
  repeal section 84 of part A of chapter 62 of the laws of 2011 relating
  to  constituting  chapter  18-A  of  the consolidated laws relating to
  financial services, relating to making  certain  provisions  permanent
  (Part  JJ);  to  amend  the tax law, in relation to the disposition of
  lottery revenues (Part KK); to amend  the  tax  law,  in  relation  to
  brownfield site cleanup; and to repeal section 31 of part H of chapter
  1  of  the  laws  of  2003 amending the tax law relating to brownfield
  redevelopment tax credits, relating thereto (Part LL);  to  amend  the
  tax  law,  in relation to placing a limit upon the personal income tax
  by the state of New York (Part MM); to amend the tax law, in  relation
  to  the  term  "qualified  New York manufacturer" (Part NN); to repeal
  subparagraph (C) of paragraph 1 of subdivision (i) of section 1136  of
  the  tax  law  relating to the requirement that certain wholesalers of
  beer file annual information returns for purposes of sales taxes (Part
  OO); to amend the tax law and the administrative code of the  city  of
  New  York, in relation to the taxation of certain banking corporations
  (Part PP); and to amend the insurance law, in relation to  obligations
  for certain taxes (Part QQ)

  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 major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through QQ. 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 a 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. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas  charges,  as  amended  by

S. 6259--C                          4

section  1  of  part II of chapter 56 of the laws of 2009, is amended to
read as follows:
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be  due  for  values
for assessment rolls with tentative completion dates after July 1, 1992,
and  provided  further,  that  this  act  shall remain in full force and
effect until March 31, [2012] 2015, at which time  section  593  of  the
real  property  tax  law  as  added  by section one of this act shall be
repealed.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2012.

                                 PART B
                          Intentionally omitted

                                 PART C

  Section  1.  Subparagraph  (B)  of  paragraph  1 of subdivision (b) of
section 483 of the tax law, as amended by chapter 1 of the laws of 1999,
is amended to read as follows:
  (B) In the absence of the filing with the commissioner of satisfactory
proof of a lesser cost of doing business of the agent making  the  sale,
the  cost  of doing business by the agent shall be presumed to be seven-
eighths of one percent of the basic cost  of  cigarettes  for  sales  to
wholesale  dealers  plus [one cent] SEVEN CENTS per package of ten ciga-
rettes, [two] FOURTEEN cents per package of twenty cigarettes and in the
case of a package containing more than twenty cigarettes,  [two]  SEVEN-
TEEN  cents and one-half of a cent for each five cigarettes in excess of
twenty cigarettes, one and one-half percent of the basic cost  of  ciga-
rettes for sales to chain stores plus [one cent] SEVEN CENTS per package
of ten cigarettes, [two] FOURTEEN cents per package of twenty cigarettes
and  in  the  case  of a package containing more than twenty cigarettes,
[two] SEVENTEEN cents and one-half of a cent for each five cigarettes in
excess of twenty cigarettes and three and seven-eighths percent  of  the
basic  cost  of  cigarettes with respect to sales to retail dealers plus
[one cent] SEVEN AND ONE-QUARTER CENTS per package  of  ten  cigarettes,
[two]  FOURTEEN  AND ONE-HALF cents per package of twenty cigarettes and
in the case of a package containing more than twenty  cigarettes,  [two]
SEVENTEEN  cents  and  one-half  of  a  cent for each five cigarettes in
excess of twenty cigarettes and the foregoing cents per  pack  shall  be
included  in  the  "cost  of doing business by the agent" referred to in
paragraphs two and three of this subdivision.
  S 2. Subdivision 2-a of section 470 of the tax law, as added by  chap-
ter  552  of  the  laws  of 2008, is amended and a new subdivision 20 is
added to read as follows:
  2-a. "Roll-your-own tobacco." Any tobacco  product,  OTHER  THAN  PIPE
TOBACCO,  that[, because of its appearance, type, packaging or labeling,
is suitable for use and likely  to  be  offered  to,  or  purchased  by,
consumers  as tobacco for making] IS OF A SIMILAR TYPE, CONSISTENCY, AND
CUT AS THE TOBACCO USED IN THE COMMERCIAL MANUFACTURING OF cigarettes.
  20. "PIPE TOBACCO." A TOBACCO PRODUCT USED FOR PIPE SMOKING THAT HAS A
MOISTURE CONTENT THAT MEETS OR EXCEEDS SIXTEEN PERCENT OF ITS WEIGHT  AT
THE TIME OF PACKAGING OR THAT CONSISTS OF CUT TOBACCO MEETING A ONE-SIX-

S. 6259--C                          5

TEENTH OF ONE INCH WIDTH MINIMUM OR IS NOT SUITABLE FOR USE BY CONSUMERS
AS TOBACCO FOR MAKING CIGARETTES.
  S  3. Section 471-b of the tax law, as added by chapter 61 of the laws
of 1989, subdivision 1 as amended by section 2 of part QQ-1  of  chapter
57  of  the  laws  of  2008,  paragraphs (a) and (b) of subdivision 1 as
amended by section 18 and paragraph (c) of subdivision  1  as  added  by
section  19  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  S 471-b. Imposition of  tobacco  products  tax.  1.  There  is  hereby
imposed  and  shall  be paid a tax on all tobacco products [possessed in
this state by any person for sale] SOLD,  SHIPPED  OR  DELIVERED  WITHIN
THIS STATE BY ANY PERSON, except that no tax shall be imposed on tobacco
products  sold under such circumstances that this state is without power
to impose such tax, or sold to the United States, or sold  to  or  by  a
voluntary  unincorporated organization of the armed forces of the United
States operating a place for the sale of goods pursuant  to  regulations
promulgated by the appropriate executive agency of the United States, to
the extent provided in such regulations and policy statements of such an
agency applicable to such sales.
  (a)  Such  tax  on tobacco products other than snuff and little cigars
shall be at the rate of seventy-five percent of the wholesale price, and
is intended to be imposed  only  once  upon  the  sale  of  any  tobacco
products other than snuff and little cigars.  PROVIDED HOWEVER, SUCH TAX
ON  CIGARS SHALL BE AT THE RATE OF SEVENTY-FIVE PERCENT OF THE WHOLESALE
PRICE OR ONE DOLLAR PER CIGAR, WHICHEVER IS LESS.
  (b) Such tax on snuff shall be at the rate of two  dollars  per  ounce
and  a  proportionate rate on any fractional parts of an ounce, provided
that cans or packages of snuff with a net weight of less than one  ounce
shall  be  taxed at the equivalent rate of cans or packages weighing one
ounce. Such tax shall be computed based on the net weight as  listed  by
the  manufacturer, and is intended to be imposed only once upon the sale
of any snuff.
  (c) Such tax on little cigars shall be at the  same  rate  imposed  on
cigarettes  under  this  article and is intended to be imposed only once
upon the sale of any little cigars.
  (D) SUCH TAX ON ROLL-YOUR-OWN TOBACCO SHALL BE AT  THE  RATE  OF  FOUR
DOLLARS  AND THIRTY-FIVE CENTS PER OUNCE AND A PROPORTIONATE RATE ON ANY
FRACTIONAL PARTS  OF  AN  OUNCE,  PROVIDED  THAT  CANS  OR  PACKAGES  OF
ROLL-YOUR-OWN  TOBACCO WITH A NET WEIGHT OF LESS THAN ONE OUNCE SHALL BE
TAXED AT THE EQUIVALENT RATE OF CANS OR  PACKAGES  WEIGHING  ONE  OUNCE.
SUCH  TAX  SHALL  BE  COMPUTED  BASED ON THE NET WEIGHT AS LISTED BY THE
MANUFACTURER, AND IS INTENDED TO BE IMPOSED ONLY ONCE UPON THE  SALE  OF
ANY ROLL-YOUR-OWN TOBACCO.
  It  shall  be  presumed that all tobacco products within the state are
subject to tax until the contrary is  established,  and  the  burden  of
proof  that any tobacco products are not taxable hereunder shall be upon
the person in possession thereof.
  2. The distributor shall be liable for  the  payment  of  the  tax  on
tobacco  products  [which  he  imports or causes to be imported into the
state, or which he manufactures in the state] SOLD, SHIPPED OR DELIVERED
WITHIN THIS STATE BY SUCH DISTRIBUTOR, and every distributor  authorized
by  the commissioner of taxation and finance to make returns and pay the
tax on tobacco products sold, shipped or delivered by him to any  person
in  the  state shall be liable for the payment of the tax on all tobacco
products so sold, shipped or delivered.

S. 6259--C                          6

  3. Every dealer shall be liable for the tax on all tobacco products in
his possession at any time, upon which tax has not been paid or  assumed
by  a distributor appointed by the commissioner of taxation and finance,
and the failure of any dealer to produce and exhibit to the commissioner
of  taxation  and  finance  or his OR HER authorized representative upon
demand, an invoice by a distributor or licensed wholesale dealer for any
tobacco products in his OR HER possession shall be presumptive  evidence
that  the  tax thereon has not been paid, and that such dealer is liable
for the tax thereon unless evidence of such invoice, payment or  assump-
tion shall later be produced.
  S 4. Section 471-c of the tax law, as amended by section 2 of part I-1
of  chapter  57 of the laws of 2009, paragraphs (i) and (ii) of subdivi-
sion (a) as amended by section 20 and paragraph (iii) of subdivision (a)
as added by section 21 of part D of chapter 134 of the laws of 2010,  is
amended to read as follows:
  S  471-c. Use tax on tobacco products. (a) There is hereby imposed and
shall be paid a tax on all tobacco products used in  the  state  by  any
person, except that no such tax shall be imposed (1) if the tax provided
in section four hundred seventy-one-b of this article is paid, or (2) on
the  use  of  tobacco  products which are exempt from the tax imposed by
said section, or (3) on the use of two hundred fifty cigars or less,  or
five  pounds  or  less  of  tobacco other than roll-your-own tobacco, or
thirty-six ounces or less of  roll-your-own  tobacco  brought  into  the
state on, or in the possession of, any person.
  (i)  Such  tax on tobacco products other than CIGARS, snuff and little
cigars shall be at the rate of seventy-five  percent  of  the  wholesale
price.
  (ii)  SUCH  TAX ON CIGARS SHALL BE AT THE RATE OF SEVENTY-FIVE PERCENT
OF THE WHOLESALE PRICE OR ONE DOLLAR PER CIGAR, WHICHEVER IS  LESS,  AND
IS INTENDED TO BE IMPOSED ONLY ONCE UPON THE SALE OF ANY CIGAR.
  (III)  Such tax on snuff shall be at the rate of two dollars per ounce
and a proportionate rate on any fractional parts of an  ounce,  provided
that  cans or packages of snuff with a net weight of less than one ounce
shall be taxed at the equivalent rate of cans or packages  weighing  one
ounce.  Such  tax shall be computed based on the net weight as listed by
the manufacturer.
  [(iii)] (IV) Such tax on little cigars  shall  be  at  the  same  rate
imposed  on  cigarettes under this article and is intended to be imposed
only once upon the sale of any little cigars.
  (V) SUCH TAX ON ROLL-YOUR-OWN TOBACCO SHALL BE AT  THE  RATE  OF  FOUR
DOLLARS  AND THIRTY-FIVE CENTS PER OUNCE AND A PROPORTIONATE RATE ON ANY
FRACTIONAL PARTS  OF  AN  OUNCE,  PROVIDED  THAT  CANS  OR  PACKAGES  OF
ROLL-YOUR-OWN  TOBACCO WITH A NET WEIGHT OF LESS THAN ONE OUNCE SHALL BE
TAXED AT THE EQUIVALENT RATE OF CANS OR  PACKAGES  WEIGHING  ONE  OUNCE.
SUCH  TAX  SHALL  BE  COMPUTED  BASED ON THE NET WEIGHT AS LISTED BY THE
MANUFACTURER, AND IS INTENDED TO BE IMPOSED ONLY ONCE UPON THE  SALE  OF
ANY ROLL-YOUR-OWN TOBACCO.
  (b) Within twenty-four hours after liability for the tax accrues, each
such  person  shall  file with the commissioner a return in such form as
the commissioner may prescribe together with a  remittance  of  the  tax
shown  to  be  due thereon. For purposes of this article, the word "use"
means the exercise of any right or  power  actual  or  constructive  and
shall  include but is not limited to the receipt, storage or any keeping
or retention for any length of time, but shall  not  include  possession
for sale. All the other provisions of this article, if not inconsistent,
shall  apply to the administration and enforcement of the tax imposed by

S. 6259--C                          7

this section in the same manner as if the language  of  said  provisions
had been incorporated in full into this section.
  S  5. Subdivision 1 of section 473-a of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  1. Every distributor shall, on or before the  twentieth  day  of  each
month,  file  with  the commissioner of taxation and finance a return on
forms to be prescribed and furnished by the  commissioner,  showing  the
quantity and wholesale price of all tobacco products [imported or caused
to  be  imported  into  the state by him or manufactured in the state by
him], SOLD, SHIPPED OR DELIVERED WITHIN THIS STATE BY HIM OR HER  during
the  preceding  calendar  month.  Every  distributor  authorized  by the
commissioner to make returns and pay the tax on tobacco  products  sold,
shipped or delivered by him OR HER to any person in the state shall file
a  return  showing  the  quantity  and  wholesale  price  of all tobacco
products so sold, shipped or delivered  during  the  preceding  calendar
month.  Provided,  however,  the commissioner may, if he OR SHE deems it
necessary in order to insure the payment of the taxes  imposed  by  this
article,  require  returns  to  be  made at such times and covering such
periods as he OR SHE may deem necessary, and, by regulation, may  permit
the  filing  of  returns on a quarterly, semi-annual or annual basis, or
may waive the filing of returns by a distributor for such time and  upon
such terms as he OR SHE may deem proper if satisfied that no tax imposed
by  this article is or will be payable by him OR HER during the time for
which returns are waived. Such returns shall contain such further infor-
mation as the commissioner may require.
  S 6. The commissioner of taxation and finance, in conjunction with the
director of the division of the budget, shall submit  to  the  governor,
the  temporary president of the senate, and the speaker of the assembly,
an annual report to be submitted in July of each year evaluating the tax
on tobacco products. Such report shall include, but not be  limited  to,
the  quantity  of  all  tobacco  products, by category, sold, shipped or
delivered in the state during the preceding fiscal year, the  amount  of
tax  revenue  received  on tobacco products, by category, as well as the
number of distributors filing and paying such taxes to the state  during
the  preceding fiscal year. Such report shall be based on data available
from the returns filed with the department of taxation  and  finance  as
well  as  from any final determinations of taxes assessed by the depart-
ment. Notwithstanding any provision of law to the contrary, the informa-
tion contained in the report shall be public information. The report may
also include any recommendations for changes in the imposition or admin-
istration of the tax, and any other recommendation of  the  commissioner
regarding continuing modification, or repeal of such tax, and such other
information  regarding  the  tax as the commissioner may feel useful and
appropriate.
  S 7. The commissioner of taxation and finance shall  establish  proce-
dures  to  provide  for  a  credit against taxes paid by distributors on
products where taxes have been paid prior to the effective date of  this
act to offset the taxes due on or after the effective date of this act.
  S 8. This act shall take effect immediately, provided however that:
  a.  section  one of this act shall take effect July 1, 2012; provided,
however, that if this act shall not have become a law on or before  July
1,  2012, then section one of this act shall take effect immediately and
shall be deemed to have been in full force and effect on and after  July
1, 2012; and
  b.  sections  three,  four, five, six and seven of this act shall take
effect on the first day of the month next  commencing  at  least  ninety

S. 6259--C                          8

days  after  this act shall have become a law; provided that the commis-
sioner of taxation and finance   shall be authorized on  and  after  the
date  this  act shall have become a law to adopt and amend any rules and
regulations  and issue any procedure, forms or instructions necessary to
implement this act on its effective date.

                                 PART D

  Section 1. Section 19 of part W-1 of chapter 109 of the laws of  2006,
amending  the  tax  law relating to providing exemptions, reimbursements
and credits from various taxes for certain alternative fuels, as amended
by section 2 of part L of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2012] 2017  and  such
repeal  shall  apply  in  accordance  with  the  applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply  to
sales  made,  fuel  compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven  through  eleven  of
this  act,  in  accordance  with  applicable  transitional provisions of
sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
commissioner  of  taxation  and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend  any  rules
or  regulations  and  to  take  any  steps  necessary  to  implement the
provisions of this act; provided further that sections fourteen  through
sixteen  of  this  act  shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART E

  Section 1. Subdivision 14 of section 282 of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  14.  "Diesel  motor  fuel"  shall mean No. 1 Diesel fuel, No. 2 Diesel
fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
late and also motor fuel suitable for use in the operation of an  engine
of  the diesel type, excluding, however, any product specifically desig-
nated "No. 4 Diesel fuel" and not suitable as a fuel used in the  opera-
tion of a motor vehicle engine.
  S  2.  Paragraph (b) of subdivision 3 of section 282-a of the tax law,
as amended by section 5 of part K of chapter 61 of the laws of 2011,  is
amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of  this  section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed  other  than
on  the  public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel  motor
fuel which involves a delivery at a filling station or into a repository
which  is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for  delivery
at  a  farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale  to  the
consumer consisting of not more than twenty gallons of water-white kero-

S. 6259--C                          9

sene  to be used and consumed exclusively for heating purposes; or (iii)
the sale to or delivery at a filling station or other retail  vendor  of
water-white  kerosene  provided  such  filling  station  or other retail
vendor  only  sells  such  water-white  kerosene exclusively for heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet fuel to an airline for use in its airplanes or a use  of  kero-
jet  fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
by a registered distributor of Diesel motor fuel to a fixed base  opera-
tor registered under this article as a distributor of kero-jet fuel only
where  such  fixed base operator is engaged solely in making or offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel
tank of an airplane for the purpose of  operating  such  airplane;  [or]
(vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
registered  under  this  article  as a distributor of kero-jet fuel only
where such fuel is delivered directly into the fuel tank of an  airplane
for  use  in the operation of such airplane; OR (VII) THE SALE OF PREVI-
OUSLY UNTAXED QUALIFIED BIODIESEL TO  A  PERSON  REGISTERED  UNDER  THIS
ARTICLE  AS  A  DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL
SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
ERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED  WITH  A
HOSE  OR  OTHER  APPARATUS  BY  WHICH  SUCH  QUALIFIED  BIODIESEL CAN BE
DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
  S 3. Paragraph 5 of subdivision (a) of section 301-b of the  tax  law,
as  added  by  chapter  190  of  the laws of 1990, is amended to read as
follows:
  (5) [Crude oil and  liquefied]  LIQUIFIED  petroleum  gases,  such  as
butane, ethane or propane.
  S  4.  Subdivision  (e) of section 301-b of the tax law, as amended by
section 21 of part K of chapter 61 of the laws of 2011,  is  amended  to
read as follows:
  (e)  Sales  of  QUALIFIED BIODIESEL, non-highway diesel motor fuel and
residual petroleum product to registered distributors  of  diesel  motor
fuel and registered residual petroleum product businesses.
  (1)  [Non-highway]  QUALIFIED  BIODIESEL  AND NON-HIGHWAY Diesel motor
fuel sold by a person registered under article twelve-A of this  chapter
as  a distributor of diesel motor fuel to a person registered under such
article twelve-A as a distributor of diesel motor fuel where  such  sale
is  not  a  retail  sale or a sale that involves a delivery at a filling
station or into a repository equipped with a hose or other apparatus  by
which  such  QUALIFIED BIODIESEL OR non-highway Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle.
  (2) Residual petroleum product sold by a person registered under  this
article  as a residual petroleum product business to a person registered
under this article as a residual petroleum product business  where  such
sale  is not a retail sale. Provided, however, that the commissioner may
require such documentary proof to qualify for any exemption provided  in
this section as the commissioner deems appropriate, including the expan-
sion  of  any  certifications  required  pursuant to section two hundred
eighty-five-a or two hundred eighty-five-b of this chapter to cover  the
taxes imposed by this article.
  (3)  "QUALIFIED  BIODIESEL"  MEANS SUCH TERM AS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended by section 39 of part K of chapter 61 of the laws  of  2011,  is
amended to read as follows:

S. 6259--C                         10

  (2)  Every distributor of diesel motor fuel shall pay, as a prepayment
on account of the taxes imposed by this  article  and  pursuant  to  the
authority of article twenty-nine of this chapter, a tax upon the sale or
use  of diesel motor fuel in this state. The tax shall be computed based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously
untaxed  non-highway  Diesel  motor  fuel  to  a  person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped with a hose or other  apparatus  by  which  such  fuel  can  be
dispensed  into  the fuel tank of a motor vehicle, [or] (ii) the sale to
or delivery at a filling station or other retail vendor  of  water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of  no  more  than  twenty gallons or to the sale of CNG or hydrogen; OR
(III) THE SALE OF PREVIOUSLY UNTAXED QUALIFIED  BIODIESEL  TO  A  PERSON
REGISTERED  UNDER  ARTICLE  TWELVE-A OF THIS CHAPTER AS A DISTRIBUTOR OF
DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR  (B)  A
SALE  TO  SUCH  PERSON WHICH INVOLVES A DELIVERY AT A FILLING STATION OR
INTO A REPOSITORY WHICH IS EQUIPPED WITH A HOSE OR  OTHER  APPARATUS  BY
WHICH  SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF A
MOTOR VEHICLE. "QUALIFIED BIODIESEL"  MEANS  SUCH  TERM  AS  DEFINED  IN
SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
TER.
  S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
amended  by section 39-a of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
on  account  of  the  taxes  imposed by this article and pursuant to the
authority of article twenty-nine of this chapter, a tax upon the sale or
use of diesel motor fuel in this state. The tax shall be computed  based
upon  the number of gallons of diesel motor fuel sold or used. Provided,
however, if the tax has not been imposed  prior  thereto,  it  shall  be
imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
station. The collection of such tax shall not be made applicable to  the
sale  or use of diesel motor fuel under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  laws  of the United States enacted pursuant thereto. The prepaid tax
on diesel motor fuel shall not apply to  (i)  the  sale  of  [previously
untaxed]  non-highway  Diesel  motor  fuel  to  a person registered as a
distributor of Diesel motor fuel other than a sale to such person  which
involves  a  delivery at a filling station or into a repository which is
equipped with a hose or other  apparatus  by  which  such  fuel  can  be
dispensed  into  the fuel tank of a motor vehicle, [or] (ii) the sale to
or delivery at a filling station or other retail vendor  of  water-white
kerosene provided such filling station or other retail vendor only sells
such water-white kerosene exclusively for heating purposes in containers
of  no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY UNTAXED
QUALIFIED BIODIESEL TO A PERSON REGISTERED  UNDER  ARTICLE  TWELVE-A  OF
THIS  CHAPTER  AS  A  DISTRIBUTOR  OF DIESEL MOTOR FUEL OTHER THAN (A) A

S. 6259--C                         11

RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
DELIVERY AT A FILLING STATION OR INTO A  REPOSITORY  WHICH  IS  EQUIPPED
WITH  A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
DISPENSED  INTO  THE FUEL TANK OF A MOTOR VEHICLE. "QUALIFIED BIODIESEL"
MEANS SUCH TERM AS DEFINED IN SUBDIVISION TWENTY-THREE  OF  SECTION  TWO
HUNDRED EIGHTY-TWO OF THIS CHAPTER.
  S  7. This act shall take effect June 1, 2012; provided, however, that
the amendments to paragraph 2 of subdivision (a) of section 1102 of  the
tax law made by section five of this act shall be subject to the expira-
tion  and  reversion of such paragraph pursuant to section 19 of part W1
of chapter 109 of the laws of 2006, as amended, when upon such date  the
provisions  of  section  six  of  this  act shall take effect; provided,
further, that sections five and six of this act  shall  apply  to  sales
made  and  uses occurring on and after such effective date in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

                                 PART F
                          Intentionally omitted

                                 PART G
                          Intentionally omitted

                                 PART H

  Section 1.  Subdivision (ee) of section 1115 of the tax law, as  added
by chapter 306 of the laws of 2005, is amended to read as follows:
  (ee) Receipts from the retail sale of residential solar energy systems
equipment  and  THE  RECEIPTS  FROM  THE  RETAIL  SALE of the service of
installing such RESIDENTIAL systems AND THE  RECEIPTS  FROM  THE  RETAIL
SALE  OF  THE SERVICE OF INSTALLING NON-RESIDENTIAL SOLAR ENERGY SYSTEMS
shall be exempt from tax under this article. For the  purposes  of  this
subdivision,  "residential solar energy systems equipment" shall mean an
arrangement or combination of components installed in a  residence  that
utilizes  solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity IN A BUILDING OR A STRUCTURE;  AND
"NON-RESIDENTIAL  SOLAR ENERGY SYSTEMS EQUIPMENT" SHALL MEAN AN ARRANGE-
MENT OR COMBINATION OF COMPONENTS NOT  INSTALLED  IN  A  RESIDENCE  THAT
UTILIZES  SOLAR RADIATION TO PRODUCE ENERGY DESIGNED TO PROVIDE HEATING,
COOLING, HOT WATER AND/OR ELECTRICITY IN A BUILDING OR A STRUCTURE. Such
arrangement or components shall not [include] EXCEED AN INSTALLED CAPAC-
ITY RATING OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT THEREOF AND  SHALL
NOT  INCLUDE  equipment  that  is  part  of a non-solar energy system or
[which uses any sort of recreational facility or equipment as a  storage
medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  section  3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the
definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the

S. 6259--C                         12

taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision, shall omit the [residential] solar energy systems equipment
AND/OR  INSTALLATION  exemption, AS APPLICABLE, provided for in subdivi-
sion (ee) and the clothing and footwear exemption provided for in  para-
graph  thirty  of  subdivision  (a) of section eleven hundred fifteen of
this chapter, unless such city, county or school district elects  other-
wise  as  to  either  such  [residential] solar energy systems equipment
AND/OR INSTALLATION exemption, AS APPLICABLE, or such clothing and foot-
wear exemption.
  S 3. Paragraph 1 of subdivision (n) of section 1210 of the tax law, as
added by chapter 306 of the laws of 2005, is amended to read as follows:
  (1) Any city having a population of one million or more in  which  the
taxes  imposed  by  section  eleven hundred seven of this chapter are in
effect, acting through its local legislative body, is hereby  authorized
and empowered to elect to provide the same exemptions from such taxes as
the  [residential]  solar  energy  systems equipment AND/OR INSTALLATION
exemption, AS APPLICABLE, from state sales and  compensating  use  taxes
described  in subdivision (ee) of section eleven hundred fifteen of this
chapter by enacting a resolution in the form set forth in paragraph  two
of  this  subdivision; whereupon, upon compliance with the provisions of
subdivisions (d) and (e) of this section, such enactment of such  resol-
ution  shall be deemed to be an amendment to such section eleven hundred
seven and such section eleven hundred seven shall be deemed to  incorpo-
rate  such  exemptions  as  if  they  had been duly enacted by the state
legislature and approved by the governor.
  S 4. Section 210 of the tax law is amended by adding a new subdivision
12-H to read as follows:
  12-H.  QUALIFIED SOLAR AND ENERGY STORAGE MANUFACTURER FACILITIES  AND
OPERATIONS  CREDIT.  (A)  A  TAXPAYER THAT IS WHOLE OR PART OF AN ENTITY
THAT SERVES AS THE PRINCIPAL OPERATOR OF A FACILITY PRIMARILY  FUNCTION-
ING  TO FABRICATE SOLAR ENERGY EQUIPMENT OR ENERGY STORAGE EQUIPMENT AND
THAT MEETS THE ELIGIBILITY REQUIREMENTS IN PARAGRAPH (B) OF THIS  SUBDI-
VISION,  SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. THE AMOUNT OF CREDIT SHALL BE EQUAL TO THE SUM OF THE AMOUNTS SPEC-

S. 6259--C                         13

IFIED IN PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION ATTRIBUTABLE TO  THE
TAXPAYER  SUBJECT  TO  THE LIMITATIONS IN PARAGRAPH (E) OF THIS SUBDIVI-
SION. FOR THE PURPOSES OF THIS SUBDIVISION SOLAR ENERGY EQUIPMENT  SHALL
MEAN THE MANUFACTURING OF MATERIAL COMPONENTS IN NEW YORK STATE DESIGNED
TO  PRODUCE  ELECTRICITY  UTILIZING SOLAR RADIATION AS THE ENERGY SOURCE
FOR SUCH ELECTRICITY; AND ENERGY STORAGE EQUIPMENT SHALL MEAN  MATERIALS
AND  DEVICES INTENDED TO STORE SOME FORM OF ENERGY RELATED TO NEW ENERGY
TECHNOLOGIES AS DESCRIBED IN SUBDIVISION ONE OF SECTION EIGHTEEN HUNDRED
FIFTY-FOUR OF THE PUBLIC AUTHORITIES  LAW.  SUCH  EQUIPMENT  MAY  EMPLOY
ELECTRICAL, ELECTROCHEMICAL, SUPERCAPACITOR, COMPRESSED GAS, MECHANICAL,
THERMAL  OR  OTHER  DEMONSTRABLE  MEANS  SINGLY OR IN COMBINATION.   THE
DETERMINATION OF WHETHER SOLAR ENERGY EQUIPMENT OR ENERGY STORAGE EQUIP-
MENT QUALIFIES FOR ELIGIBLE COSTS UNDER THIS SUBDIVISION SHALL BE DETER-
MINED BY THE COMMISSIONER AND, IF REQUESTED  BY  THE  COMMISSIONER,  THE
PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY.
  (B)  AN  ELIGIBLE  TAXPAYER  SHALL  (I)  HAVE  MORE  THAN  ONE HUNDRED
FULL-TIME EMPLOYEES EMPLOYED IN NEW YORK STATE, AND (II) HAVE A RATIO OF
RESEARCH AND DEVELOPMENT FUNDS TO NET SALES, AS REFERRED TO  IN  SECTION
THIRTY-ONE  HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW, WHICH EQUALS OR
EXCEEDS THREE PERCENT DURING ITS TAXABLE YEAR.
  (C) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED  A  CREDIT  FOR  TWENTY  PER
CENTUM  OF THE ATTRIBUTABLE COST OR SIMILAR BASIS FOR FEDERAL INCOME TAX
PURPOSES OF RESEARCH  AND  DEVELOPMENT  AND  MANUFACTURING  PROPERTY  AS
DEFINED  IN  PARAGRAPH (B) OF SUBDIVISION TWELVE OF THIS SECTION THAT IS
ACQUIRED BY  THE TAXPAYER BY PURCHASE AS DEFINED IN  SECTION  179(D)  OF
THE INTERNAL REVENUE CODE AND PLACED IN SERVICE DURING THE TAXABLE YEAR.
PROVIDED,  HOWEVER, FOR THE PURPOSES OF THIS PARAGRAPH ONLY, AN ELIGIBLE
TAXPAYER SHALL BE ALLOWED A  CREDIT  FOR  SUCH  PERCENTAGE  OF  THE  (I)
ATTRIBUTABLE  COST  OR SIMILAR BASIS FOR FEDERAL INCOME TAX PURPOSES FOR
PROPERTY USED IN THE TESTING OR INSPECTION OF MATERIALS AND PRODUCTS,
  (II) THE  ATTRIBUTABLE  COSTS  OR  EXPENSES  ASSOCIATED  WITH  QUALITY
CONTROL OF THE RESEARCH AND DEVELOPMENT OR MANUFACTURING OPERATIONS,
  (III) ATTRIBUTABLE FEES FOR USE OF SOPHISTICATED TECHNOLOGY FACILITIES
AND PROCESSES,
  (IV)  ATTRIBUTABLE  FEES  FOR  THE  PRODUCTION  OR EVENTUAL COMMERCIAL
DISTRIBUTION OF MATERIALS AND  PRODUCTS  RESULTING  FROM  THE  QUALIFIED
MANUFACTURING ACTIVITIES OF AN ELIGIBLE TAXPAYER.
  (V)  THE  COSTS,  EXPENSES  AND  OTHER  AMOUNTS  FOR WHICH A CREDIT IS
ALLOWED AND CLAIMED UNDER THIS PARAGRAPH SHALL NOT BE USED IN THE CALCU-
LATION OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTICLE.
  (D) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR TEN PER  CENTUM
OF  "QUALIFIED  RESEARCH AND MANUFACTURING EXPENSES" PAID OR INCURRED BY
THE TAXPAYER IN THE TAXABLE YEAR. FOR THE PURPOSES OF THIS SECTION,  THE
TERM  "QUALIFIED RESEARCH AND MANUFACTURING EXPENSES" SHALL MEAN ATTRIB-
UTABLE EXPENSES ASSOCIATED  WITH  IN-HOUSE  RESEARCH  AND  MANUFACTURING
PROCESSES,  AND  ATTRIBUTABLE COSTS ASSOCIATED WITH THE DISSEMINATION OF
THE RESULTS OF THE PRODUCTS THAT DIRECTLY RESULT FROM SUCH RESEARCH  AND
DEVELOPMENT  AND/OR  MANUFACTURING  ACTIVITIES;  PROVIDED, HOWEVER, THAT
SUCH COSTS SHALL NOT  INCLUDE  ADVERTISING  OR  PROMOTION  THROUGH  PAID
MEDIA.    IN  ADDITION,  COSTS ASSOCIATED WITH THE PREPARATION OF PATENT
APPLICATIONS, PATENT APPLICATION  FILING  FEES,  PATENT  RESEARCH  FEES,
PATENT EXAMINATIONS FEES, PATENT POST ALLOWANCE FEES, PATENT MAINTENANCE
FEES, AND GRANT APPLICATION EXPENSES AND FEES SHALL BE ELIGIBLE FOR SUCH
CREDIT.   IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS PARAGRAPH APPLY
TO EXPENSES FOR LITIGATION OR THE CHALLENGE OF ANOTHER  ENTITY'S  INTEL-

S. 6259--C                         14

LECTUAL PROPERTY RIGHTS, OR FOR CONTRACT EXPENSES INVOLVING OUTSIDE PAID
CONSULTANTS.    THE COSTS, EXPENSES AND OTHER AMOUNTS FOR WHICH A CREDIT
IS ALLOWED AND CLAIMED UNDER THIS PARAGRAPH SHALL NOT  BE  USED  IN  THE
CALCULATION OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTICLE.
  (E)  AN ELIGIBLE TAXPAYER MAY CLAIM CREDITS UNDER THIS SUBDIVISION FOR
FOUR CONSECUTIVE TAXABLE YEARS. IN NO CASE SHALL THE CREDIT  ALLOWED  BY
THIS  SUBDIVISION  TO  A TAXPAYER EXCEED TWENTY-FIVE MILLION DOLLARS PER
YEAR.
  (F) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
SHALL  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 SUBDI-
VISION  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT
OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL  BE  TREATED  AS  AN
OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER.  PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED  EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S  5. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) QUALIFIED SOLAR AND ENERGY STORAGE  MANUFACTURER  FACILITIES  AND
OPERATIONS  CREDIT. (1) A TAXPAYER WHO IS A MEMBER OF AN ENTITY CONSIST-
ING OF ONE OR MORE TAXPAYERS THAT SERVES AS THE PRINCIPAL OPERATOR OF  A
FACILITY  PRIMARILY  FUNCTIONING  TO FABRICATE SOLAR ENERGY EQUIPMENT OR
ENERGY STORAGE EQUIPMENT AND THAT MEETS THE ELIGIBILITY REQUIREMENTS  IN
PARAGRAPH  TWO OF THIS SUBSECTION, SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF CREDIT SHALL BE EQUAL TO  THE
SUM  (OR  PRO RATA SHARE OF THE SUM IN THE CASE OF A PARTNERSHIP) OF THE
AMOUNTS SPECIFIED IN  PARAGRAPHS  THREE  AND  FOUR  OF  THIS  SUBSECTION
SUBJECT TO THE LIMITATIONS IN PARAGRAPH FIVE OF THIS SUBSECTION. FOR THE
PURPOSES  OF THIS SUBSECTION SOLAR ENERGY EQUIPMENT SHALL MEAN THE MANU-
FACTURING OF MATERIAL COMPONENTS IN NEW YORK STATE DESIGNED  TO  PRODUCE
ELECTRICITY  UTILIZING  SOLAR  RADIATION  AS  THE ENERGY SOURCE FOR SUCH
ELECTRICITY; AND ENERGY  STORAGE  EQUIPMENT  SHALL  MEAN  MATERIALS  AND
DEVICES  INTENDED  TO  STORE  SOME  FORM OF ENERGY RELATED TO NEW ENERGY
TECHNOLOGIES AS DESCRIBED IN SUBDIVISION ONE OF SECTION EIGHTEEN HUNDRED
FIFTY-FOUR OF THE PUBLIC AUTHORITIES LAW.   SUCH  EQUIPMENT  MAY  EMPLOY
ELECTRICAL, ELECTROCHEMICAL, SUPERCAPACITOR, COMPRESSED GAS, MECHANICAL,
THERMAL  OR  OTHER  MEANS SINGLY OR IN COMBINATION. THE DETERMINATION OF
WHETHER SOLAR ENERGY EQUIPMENT OR ENERGY STORAGE EQUIPMENT QUALIFIES FOR
ELIGIBLE COSTS UNDER THIS SUBSECTION SHALL BE DETERMINED BY THE  COMMIS-
SIONER,  AND, IF REQUESTED BY THE COMMISSIONER, THE PRESIDENT OF THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  (2) AN ELIGIBLE ENTITY SHALL (I) HAVE MORE THAN ONE HUNDRED  FULL-TIME
EMPLOYEES  EMPLOYED IN NEW YORK STATE, AND (II) HAVE A RATIO OF RESEARCH
AND DEVELOPMENT FUNDS TO NET SALES, AS REFERRED TO IN SECTION THIRTY-ONE
HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW,  WHICH  EQUALS  OR  EXCEEDS
THREE PERCENT DURING ITS TAXABLE YEAR.
  (3)  AN  ELIGIBLE  TAXPAYER  SHALL  BE ALLOWED A CREDIT FOR TWENTY PER
CENTUM OF THE COST OR SIMILAR BASIS  FOR  FEDERAL  INCOME  TAX  PURPOSES
INCURRED  BY  THE  ENTITY FOR RESEARCH AND DEVELOPMENT AND MANUFACTURING
PROPERTY AS DEFINED IN PARAGRAPH (B) OF SUBDIVISION  TWELVE  OF  SECTION
TWO  HUNDRED TEN OF THIS CHAPTER THAT IS ACQUIRED BY PURCHASE AS DEFINED
IN SECTION 179(D) OF THE INTERNAL REVENUE CODE  AND  PLACED  IN  SERVICE
DURING  THE  TAXABLE  YEAR.  PROVIDED, HOWEVER, FOR THE PURPOSES OF THIS

S. 6259--C                         15

PARAGRAPH ONLY, AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR  SUCH
PERCENTAGE  OF  THE  (I)  COST  OR  SIMILAR BASIS FOR FEDERAL INCOME TAX
PURPOSES FOR PROPERTY USED IN THE TESTING OR INSPECTION OF MATERIALS AND
PRODUCTS,
  (II)  THE  COSTS  OR  EXPENSES  ASSOCIATED WITH QUALITY CONTROL OF THE
RESEARCH AND DEVELOPMENT OR MANUFACTURING OPERATIONS,
  (III) FEES FOR USE OF SOPHISTICATED TECHNOLOGY  FACILITIES  AND  PROC-
ESSES,
  (IV)  FEES  FOR  THE PRODUCTION OR EVENTUAL COMMERCIAL DISTRIBUTION OF
MATERIALS AND PRODUCTS RESULTING FROM  THE  ACTIVITIES  OF  AN  ELIGIBLE
TAXPAYER  AS LONG AS SUCH ACTIVITIES FALL UNDER THE ACTIVITIES LISTED IN
PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E  OF
THE PUBLIC AUTHORITIES LAW.
  (V)  THE  COSTS,  EXPENSES  AND  OTHER  AMOUNTS  FOR WHICH A CREDIT IS
ALLOWED AND CLAIMED UNDER THIS PARAGRAPH SHALL NOT BE USED IN THE CALCU-
LATION OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTICLE.
  (4) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR TEN PER  CENTUM
OF  "QUALIFIED  RESEARCH AND MANUFACTURING EXPENSES" PAID OR INCURRED BY
THE ENTITY IN THE TAXABLE YEAR. FOR THE PURPOSES OF  THIS  SECTION,  THE
TERM "QUALIFIED RESEARCH AND MANUFACTURING EXPENSES" SHALL MEAN EXPENSES
ASSOCIATED WITH IN-HOUSE RESEARCH AND MANUFACTURING PROCESSES, AND COSTS
ASSOCIATED  WITH  THE  DISSEMINATION OF THE RESULTS OF THE PRODUCTS THAT
DIRECTLY RESULT FROM SUCH RESEARCH AND DEVELOPMENT AND/OR  MANUFACTURING
ACTIVITIES;  PROVIDED, HOWEVER, THAT SUCH COSTS SHALL NOT INCLUDE ADVER-
TISING OR PROMOTION THROUGH PAID MEDIA. IN  ADDITION,  COSTS  ASSOCIATED
WITH  THE  PREPARATION OF PATENT APPLICATIONS, PATENT APPLICATION FILING
FEES, PATENT RESEARCH FEES, PATENT EXAMINATIONS FEES, PATENT POST ALLOW-
ANCE FEES, PATENT MAINTENANCE FEES, AND GRANT APPLICATION  EXPENSES  AND
FEES  SHALL  BE  ELIGIBLE  FOR  SUCH CREDIT. IN NO CASE SHALL THE CREDIT
ALLOWED UNDER THIS PARAGRAPH APPLY TO EXPENSES  FOR  LITIGATION  OR  THE
CHALLENGE  OF  ANOTHER  ENTITY'S  INTELLECTUAL  PROPERTY  RIGHTS, OR FOR
CONTRACT  EXPENSES  INVOLVING  OUTSIDE  PAID  CONSULTANTS.  THE   COSTS,
EXPENSES  AND  OTHER  AMOUNTS  FOR WHICH A CREDIT IS ALLOWED AND CLAIMED
UNDER THIS PARAGRAPH SHALL NOT BE USED IN THE CALCULATION OF  ANY  OTHER
CREDIT ALLOWED UNDER THIS ARTICLE.
  (5)  AN  ELIGIBLE TAXPAYER MAY CLAIM CREDITS UNDER THIS SUBSECTION FOR
FOUR CONSECUTIVE TAXABLE YEARS. IN NO CASE SHALL THE CREDIT  ALLOWED  BY
THIS  SUBDIVISION  TO  A TAXPAYER EXCEED TWENTY-FIVE MILLION DOLLARS PER
YEAR. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF  A
NEW  YORK S CORPORATION, THEN THE CAP IMPOSED BY THIS PARAGRAPH SHALL BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
THE PARTNERS, SHAREHOLDERS, OR OTHER MEMBERS OF EACH SUCH ENTITY IN  THE
TAXABLE YEAR DOES NOT EXCEED TWENTY-FIVE MILLION DOLLARS PER YEAR FOR UP
TO FOUR CONSECUTIVE TAXABLE YEARS.
  (6)  IF  THE  AMOUNT  OF  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, THAT NO INTEREST SHALL BE PAID THEREON.
  S 6. 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) CREDIT FOR                 AMOUNT OF CREDIT UNDER
QUALIFIED SOLAR AND ENERGY STORAGE   SUBDIVISION TWELVE-H OF
MANUFACTURER FACILITIES              SECTION TWO HUNDRED TEN

S. 6259--C                         16

AND OPERATIONS CREDIT
UNDER SUBSECTION (UU)
  S 7. This act shall take effect immediately provided, however:
  a.   that sections one, two and three of this act shall apply to sales
made or uses occurring on or after September 1, 2012 in accordance  with
the  applicable transitional provisions of sections 1106 and 1217 of the
tax law; and
  b. section four of this act shall apply to taxable years commencing on
or after January 1, 2013.

                                 PART I

  Section 1. Paragraph 1 of subdivision (a) of section  28  of  the  tax
law,  as  amended by chapter 440 of the laws of 2006, is amended to read
as follows:
  (1) A taxpayer which is a qualified commercial production company,  or
which is a sole proprietor of a qualified commercial production company,
and  which  is subject to tax under article nine-A or twenty-two of this
chapter, shall be allowed a credit against such  tax,  pursuant  to  the
provisions  referenced  in  subdivision [(d)] (C) of this section, to be
computed as provided in this section. Provided, however, to be  eligible
for  such  credit, at least seventy-five percent of the production costs
(excluding post production costs) paid or incurred directly and predomi-
nantly in the actual filming or recording of  the  qualified  commercial
must be costs incurred in New York state.  THE TAX CREDIT ALLOWED PURSU-
ANT  TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND FIFTEEN.
  S 2. Subparagraphs (i) and (iii) of paragraph 2 of subsection  (a)  of
section 28 of the tax law, subparagraph (i) as amended by chapter 448 of
the laws of 2009 and subparagraph (iii) as amended by chapter 300 of the
laws of 2007, are amended to read as follows:
  (i)  The state annually will disburse [three] ONE million of the total
seven million in tax credits to all eligible  production  companies  and
the  amount of the credit shall be the product (or pro rata share of the
product, in the case of a member of a partnership) of twenty percent  of
the  qualified  production costs paid or incurred in the production of a
qualified commercial, provided that the qualified production costs  paid
or  incurred  are  attributable  to  the use of tangible property or the
performance of services within the state in the production of such qual-
ified commercial. To be eligible for said  credit  the  total  qualified
production  costs  of  a qualified production company must be greater in
the aggregate during the current calendar year than the average  of  the
three  previous years for which the credit was applied. Provided, howev-
er, that until a qualified production company has  established  a  three
year  history,  the  credit will be based on either the previous year or
the average of the two previous years, whichever period  is  longer  for
the  qualified  production  company seeking the credit. If the qualified
production company has never applied for the growth credit, the previous
year's data will be used to create a benchmark. The tax credit shall  be
applied  only  to  the amount of the total qualified production costs of
the current calendar year that are greater  than  the  total  amount  of
production  costs  of the appropriate measurement period as described in
this subparagraph. The  tax  credit  must  be  distributed  to  eligible
production  companies  on  a  pro rata basis, provided, however, that no
such qualified production company shall receive more than three  hundred
thousand  dollars  annually for such credit. The credit shall be allowed

S. 6259--C                         17

for the taxable year in which the production of such  qualified  commer-
cial is completed.
  (iii)  The  state  annually  will  disburse [one] THREE million of the
total seven million in tax credits to all eligible production  companies
who  film  or  record a qualified commercial outside of the metropolitan
commuter transportation district as defined in  section  twelve  hundred
sixty-two  of the public authorities law. The amount of the credit shall
be the product (or pro rata share of the  product,  in  the  case  of  a
member  of  a  partnership)  of five percent of the qualified production
costs paid or incurred in the  production  of  a  qualified  commercial,
provided  that  the  qualified  production  costs  paid  or incurred are
attributable to the use of  tangible  property  or  the  performance  of
services  within  the  state in the production of such qualified commer-
cial. To be eligible for said  credit  the  total  qualified  production
costs of a qualified production company must be greater than two hundred
thousand  dollars in the aggregate during the calendar year. Such credit
will be applied to qualified  production  costs  exceeding  two  hundred
thousand dollars in a calendar year.
  S 3. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
added  by  section  3  of  part  V of chapter 62 of the laws of 2006, is
amended to read as follows:
  (a) Allowance of credit. A  taxpayer  that  is  eligible  pursuant  to
provisions  of  section  twenty-eight of this chapter shall be allowed a
credit to be computed as  provided  in  such  section  against  the  tax
imposed  by  this  article.    THE  TAX  CREDIT ALLOWED PURSUANT TO THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND FIFTEEN.
  S 4. Paragraph 1 of subsection (jj) of section 606 of the tax law,  as
added  by  section  5  of  part  V of chapter 62 of the laws of 2006, is
amended to read as follows:
  (1) Allowance of credit. A taxpayer that is eligible pursuant  to  the
provisions  of  section  twenty-eight of this chapter shall be allowed a
credit to be computed as  provided  in  such  section  against  the  tax
imposed  by  this  article.    THE  TAX  CREDIT ALLOWED PURSUANT TO THIS
SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND FIFTEEN.
  S 5. Section 10 of part V of chapter 62 of the laws of 2006,  relating
to the empire state commercial production tax credit, is amended to read
as follows:
  S 10. This act shall take effect immediately [and shall apply to taxa-
ble years beginning on and after January 1, 2007 and shall expire and be
deemed  repealed  on  December 31, 2011]; provided, however that the IMB
credit for energy taxes  under  subsection  (t-1)  and  the  state  film
production  credit  under  subsection (gg) of section 606 of the tax law
contained in section four of this act shall expire on the same  date  as
provided in subdivision (a) of section 49 of part Y of chapter 63 of the
laws  of  2000,  as amended and section 9 of part P of chapter 60 of the
laws of 2004, as amended, respectively.
  S 6. Notwithstanding the  provisions  of  article  5  of  the  general
construction  law, the provisions of part V of chapter 62 of the laws of
2006, as amended, are hereby revived and shall continue  in  full  force
and effect as such provisions existed on December 31, 2011.
  S  7.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after December 31, 2011.

                                 PART J

S. 6259--C                         18

  Section 1.  Subdivision 4 of section 22 of the public housing law,  as
amended  by  section  1  of part F of chapter 61 of the laws of 2011, is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [thirty-two] FORTY million dollars. The limitation
provided by this subdivision applies only to allocation of the aggregate
dollar  amount  of  credit  by  the  commissioner, and does not apply to
allowance to a taxpayer of the credit with respect to an  eligible  low-
income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall be [forty] FORTY-EIGHT million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [forty-eight] FIFTY-SIX million dollars. The limi-
tation provided by this subdivision applies only to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [fifty-six] SIXTY-FOUR million dollars. The  limi-
tation  provided  by  this subdivision applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. Paragraph (c) of subdivision 30 of section 210 of the tax law  is
relettered  paragraph  (d)  and  a new paragraph (c) is added to read as
follows:
  (C) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBDIVISION  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED, PROVIDED THAT THE CREDITS: (1) HAVE AN  ELIGIBILITY  STATEMENT
ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (2) ARE AVAILABLE  PURSUANT
TO  LAW  ENACTED  AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE. PROVIDED,
HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF

S. 6259--C                         19

SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
PAID THEREON.
  S  7.  Paragraph  3 of subsection (x) of section 606 of the tax law is
renumbered paragraph 4 and a  new  paragraph  3  is  added  to  read  as
follows:
  (3)  TREATMENT  OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
REFUNDED  AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,
PROVIDED THAT THE CREDITS: (I) HAVE AN ELIGIBILITY STATEMENT  ISSUED  BY
THE  COMMISSIONER  OF  HOUSING AND COMMUNITY RENEWAL PURSUANT TO ARTICLE
TWO-A OF THE PUBLIC HOUSING LAW, AND (II) ARE AVAILABLE PURSUANT TO  LAW
ENACTED  AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE. PROVIDED, HOWEVER,
THAT NO INTEREST SHALL BE PAID THEREON.
  S 8. Paragraph 3 of subsection (1) of section 1456 of the tax  law  is
renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
follows:
  (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBSECTION  SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED, PROVIDED THAT THE CREDITS: (A) HAVE AN  ELIGIBILITY  STATEMENT
ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE  PURSUANT
TO  LAW  ENACTED  AFTER  JANUARY FIRST, TWO THOUSAND TWELVE.   PROVIDED,
HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
PAID THEREON.
  S 9. Paragraph 3 of subdivision (n) of section 1511 of the tax law  is
renumbered  paragraph  4  and  a  new  paragraph  3  is added to read as
follows:
  (3) TREATMENT OF CREDIT. THE AMOUNT OF THE CREDIT ALLOWED  UNDER  THIS
SUBDIVISION  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED, PROVIDED THAT THE CREDITS: (A) HAVE AN  ELIGIBILITY  STATEMENT
ISSUED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW, AND (B) ARE AVAILABLE  PURSUANT
TO  LAW  ENACTED  AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE. PROVIDED,
HOWEVER, THAT  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE
PAID THEREON.
  S 10. This act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2013, section three
of this act shall take effect April 1, 2014, section four  of  this  act
shall  take effect April 1, 2015 and section five of this act shall take
effect April 1, 2016; and provided further  that  sections  six,  seven,
eight,  and  nine  of this act shall apply to tax years commencing on or
after January 1, 2012.

                                 PART K

  Section 1. Subdivision (a) of section 28 of the tax law, as amended by
section 1 of part A of chapter 57 of the laws of  2010,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per

S. 6259--C                         20

gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  If the
taxpayer is a partner in a partnership or shareholder of a  New  York  S
corporation,  then  the  cap  imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
PURSUANT  TO  THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY.
  S 2. Section 187-c of the tax law, as added by section 2 of part X  of
chapter 62 of the laws of 2006, is amended to read as follows:
  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section twenty-eight of this  chap-
ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
SIX,  against  the  tax imposed by this article. Provided, however, that
the amount of such credit allowed against the tax imposed by section one
hundred eighty-four of this article shall be the excess of the amount of
such credit over the amount  of  any  credit  allowed  by  this  section
against  the  tax  imposed  by  section one hundred eighty-three of this
article. In no event shall the credit under this section be  allowed  in
an  amount which will reduce the tax payable to less than the applicable
minimum tax fixed by section one hundred  eighty-three  or  one  hundred
eighty-five  of  this  article.  If,  however,  the amount of the credit
allowed under this section for any taxable year reduces the tax to  such
amount, the excess shall be treated as an overpayment of tax to be cred-
ited  or  refunded  in  accordance  with  the  provisions of section six
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter
notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S 3. Subdivision 38 of section 210 of the tax law, as added by section
3  of  part  X  of chapter 62 of the laws of 2006, is amended to read as
follows:
  38. Biofuel production credit. A taxpayer shall be allowed  a  credit,
to  be  computed as provided in section twenty-eight of this chapter, AS
ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF  TWO  THOUSAND  SIX,
against  the  tax imposed by this article. The credit allowed under this
subdivision for any taxable year shall 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 shall be treated as an overpayment of tax to be credited or
refunded in accordance with  the  provisions  of  section  one  thousand
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection (c) of section one  thousand  eighty-eight  of  this  chapter
notwithstanding,  no  interest  shall  be paid thereon.   THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
  S  4.  Subsection  (jj)  of  section  606  of the tax law, as added by
section 5 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:

S. 6259--C                         21

  (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
to be computed as provided in section twenty-eight of this  chapter,  AS
ADDED  BY  PART  X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
against the tax imposed by this article. 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 overpay-
ment 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 shall be paid thereon.  THE TAX CREDIT ALLOWED PURSUANT
TO  THIS  SECTION  SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY.
  S 5. Section 6 of part X of chapter 62 of the laws of  2006,  amending
the  tax  law  relating  to providing tax credits for biofuel production
plants, is amended to read as follows:
  S 6. This act shall take effect immediately [and shall apply to  taxa-
ble  years commencing on and after January 1, 2006 and before January 1,
2013]; provided, however that the IMB  credit  for  energy  taxes  under
subsection  (t-1)  and the state film production credit under subsection
(gg) of section 606 of the tax law contained in section four of this act
shall expire on the same date as provided in subdivision (a) of  section
49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
of part P of chapter 60 of the laws of 2004, as amended, respectively.
  S 6. This act shall take effect immediately.

                                 PART L

  Section  1.  Section  2  of  part I of chapter 58 of the laws of 2006,
relating to providing an enhanced earned income tax credit,  is  amended
to read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2006 and before January 1, [2013]
2015.
  S 2. This act shall take effect immediately.

                                 PART M
                          Intentionally omitted

                                 PART N

  Section 1. Subsection (a) of section 801 of the tax law, as amended by
section  2  of  part  B of chapter 56 of the laws of 2011, is amended to
read as follows:
  (a) For the sole purpose of providing an additional stable  and  reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority and its subsidiaries and affiliates to preserve,  operate  and
improve  essential  transit and transportation services in the metropol-
itan commuter transportation  district,  a  tax  is  hereby  imposed  on
EMPLOYERS  AND  INDIVIDUALS  AS FOLLOWS: (1) FOR employers who engage in
business within the MCTD [(1)], THE TAX IS IMPOSED  at  a  rate  of  (A)
eleven  hundredths  (.11)  percent  OF THE PAYROLL EXPENSE for employers
with payroll expense no greater than three hundred seventy-five thousand
dollars in any  calendar  quarter,  (B)  twenty-three  hundredths  (.23)
percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
er  than three hundred seventy-five thousand dollars and no greater than
four hundred thirty-seven thousand five hundred dollars in any  calendar

S. 6259--C                         22

quarter,  and  (C)  thirty-four  hundredths (.34) percent OF THE PAYROLL
EXPENSE for employers with payroll expense in  excess  of  four  hundred
thirty-seven  thousand  five  hundred  dollars in any calendar quarter[,
and].  IF  THE  EMPLOYER  IS  A  PROFESSIONAL  EMPLOYER ORGANIZATION, AS
DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE  ATTRIBUTABLE
TO  EACH  CLIENT  WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
WITH SUCH ORGANIZATION AND THE  PAYROLL  EXPENSE  ATTRIBUTABLE  TO  SUCH
ORGANIZATION  ITSELF,  MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
BY THE APPLICABLE RATE SET FORTH IN  THIS  PARAGRAPH  AND  ADDING  THOSE
PRODUCTS  TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
thirty-four hundredths (.34) percent of the net earnings  from  self-em-
ployment  of individuals that are attributable to the MCTD if such earn-
ings attributable to the MCTD exceed fifty thousand dollars for the  tax
year.
  S  2.  Section  4 of part B of chapter 56 of the laws of 2011 amending
the tax law relating to the tax rates and exclusions under the metropol-
itan commuter transportation mobility tax is amended to read as follows:
  S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY  1,  2012;  provided  however,  that
section  one  of  this act and the amendments in section two of this act
that concern employers shall take effect for the  quarter  beginning  on
April 1, 2012.
  S 3. This act shall take effect immediately; provided however that the
amendment  in  section  one of this act concerning professional employer
organizations shall take effect for the quarter beginning  on  April  1,
2012.

                                 PART O

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other
material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which pari-mutuel betting is authorized by this chapter at one  or  more
simulcast  facilities  for  each  of  the  contracting off-track betting

S. 6259--C                         23

corporations which shall include wagers made in accordance with  section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this  article;  provided  further  that the contract provisions or other
simulcast  arrangements  for  such  simulcast  facility shall be no less
favorable than those in effect on January first, two thousand five; (ii)
that each off-track betting corporation  having  within  its  geographic
boundaries  such residences, homes or other areas technically capable of
receiving the simulcast signal shall be a contracting party;  (iii)  the
distribution  of  revenues  shall be subject to contractual agreement of
the parties except that statutory payments to  non-contracting  parties,
if  any,  may  not be reduced; provided, however, that nothing herein to
the contrary shall prevent a track  from  televising  its  races  on  an
irregular basis primarily for promotional or marketing purposes as found
by  the board. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall  not  apply.  Any  agreement
authorizing  an  in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,
however,  that  any  party to such agreement may elect to terminate such
agreement upon conveying written notice to all  other  parties  of  such
agreement  at  least  forty-five days prior to the effective date of the
termination, via registered mail. Any party to  an  agreement  receiving
such  notice of an intent to terminate, may request the board to mediate
between the parties new terms and conditions in a replacement  agreement
between the parties as will permit continuation of an in-home experiment
until  June  thirtieth,  two  thousand  [twelve]  THIRTEEN;  and (iv) no
in-home simulcasting in the thoroughbred special betting district  shall
occur without the approval of the regional thoroughbred track.
  S  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part S of chapter 61 of the laws of  2011,  is  amended  to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county  on  races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twelve] THIRTEEN, the amount  used  exclusively
for  purses  to  be  awarded  at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and  one-half
percent  of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference  in  total  commissions
determined by comparing the total commissions available after July twen-
ty-first,  nineteen  hundred  ninety-five  to the total commissions that
would have been available to such  track  prior  to  July  twenty-first,
nineteen hundred ninety-five.
  S  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  S  of  chapter  61  of the laws of 2011, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth,  two  thousand [twelve] THIRTEEN and on any day regardless of
whether or not a franchised corporation is conducting a race meeting  in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two  thousand [twelve] THIRTEEN. On any day on which a franchised corpo-

S. 6259--C                         24

ration has not scheduled a racing  program  but  a  thoroughbred  racing
corporation  located  within  the state is conducting racing, every off-
track betting corporation branch office and every simulcasting  facility
licensed  in  accordance  with  section  one  thousand  seven (that have
entered into a written agreement  with  such  facility's  representative
horsemen's  organization, as approved by the board), one thousand eight,
or one thousand nine of this  article  shall  be  authorized  to  accept
wagers  and  display  the live simulcast signal from thoroughbred tracks
located in another state or foreign country  subject  to  the  following
provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part S of chapter 61 of the
laws of 2011, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twelve] THIRTEEN.  This section shall supersede
all inconsistent provisions of this chapter.
  S 5. The opening paragraph of subdivision 1 of  section  1016  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 5
of part S of chapter 61 of the laws of  2011,  is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any  day  during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twelve]  THIRTEEN.    Every  off-track  betting
corporation  branch  office  and every simulcasting facility licensed in
accordance with section one thousand seven  that  have  entered  into  a
written  agreement with such facility's representative horsemen's organ-
ization as approved by the board, one thousand  eight  or  one  thousand
nine  of  this  article shall be authorized to accept wagers and display
the live full-card simulcast signal of thoroughbred  tracks  (which  may
include  quarter horse or mixed meetings provided that all such wagering
on such races shall be construed to be thoroughbred  races)  located  in
another  state  or foreign country, subject to the following provisions;
provided, however, no such written agreement  shall  be  required  of  a
franchised  corporation licensed in accordance with section one thousand
seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part S of chapter
61 of the laws of 2011, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [eleven] TWELVE, when a franchised corporation is conducting a race
meeting within the  state  at  Saratoga  Race  Course,  every  off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as approved by the board), one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such

S. 6259--C                         25

written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part S of  chapter  61  of  the
laws of 2011, is amended to read as follows:
  S  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2012]  2013;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified
or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting  and the imposition of certain taxes, as amended by section
8 of part S of chapter 61 of the laws of 2011, is  amended  to  read  as
follows:
  S  54.  This  act  shall  take  effect immediately; provided, however,
sections three through twelve of this act shall take effect  on  January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing  law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2012] 2013; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.
  S  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part S
of chapter 61 of the laws of 2011, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established  is subject to the prior approval of the racing and wagering
board. Such rate may not be changed more than once per calendar  quarter
to  be effective on the first day of the calendar quarter. "Exotic bets"
and "multiple bets" shall have the meanings set forth  in  section  five
hundred  nineteen  of this chapter.   "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for

S. 6259--C                         26

payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid  by  such  franchised  corporation  to  the
commissioner  of  taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run  at
the  race  meetings  held  by such franchised corporation, the following
percentages of the total pool for regular and  multiple  bets  five  per
centum  of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
centum  plus  twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the  breaks.  For
the  period  June  first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two  and  one-
half  per  centum,  plus twenty per centum of the breaks. For the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one, such tax on all wagers shall be two and six-
tenths per centum and for the  period  April  first,  two  thousand  one
through  December thirty-first, two thousand [twelve] THIRTEEN, such tax
on all wagers shall be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New  York  state
thoroughbred  breeding  and  development  fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and  three
per  centum  of super exotic bets provided, however, that for the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one,  such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[twelve] THIRTEEN, such payment shall be seven-tenths of one per  centum
of such pools.
  S  10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 10 of part S of  chapter  61
of the laws of 2011, is amended to read as follows:
  5.  The  provisions  of this section shall expire and be of no further
force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
  S 11. This act shall take effect immediately.

                                 PART P

  Section 1. Subdivision 3 of section 205 of the tax law,  as  added  by
section  8  of  part U1 of chapter 62 of the laws of 2003, is amended to
read as follows:
  3. [From the] THE moneys collected from the taxes imposed by  sections
one  hundred eighty-three and one hundred eighty-four of this article on
and after April first,  two  thousand  [four]  TWELVE,  after  reserving
amounts  for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS:
twenty percent of such moneys shall be deposited to the  credit  of  the
dedicated  highway  and bridge trust fund established by section eighty-
nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT  OF
SUCH  MONEYS  shall  be  deposited  in the mass transportation operating
assistance fund to the credit of the  metropolitan  mass  transportation
operating  assistance account created pursuant to section eighty-eight-a
of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL  BE

S. 6259--C                         27

DEPOSITED  IN  THE  MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE
CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT
CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
  S  2. This act shall take effect immediately and shall be deemed to be
in full force and effect on and after April 1, 2012; provided,  however,
that  the amendments to subdivision 3 of section 205 of the tax law made
by section one of this act shall not affect the repeal of such  subdivi-
sion and shall be deemed to be repealed therewith.

                                 PART Q

  Section  1. Subdivision (e) of section 1105 of the tax law, as amended
by section 4 of part AA of chapter 57 of the laws of 2010, is amended to
read as follows:
  (e) (1) The rent for every occupancy of a room or rooms in a hotel  in
this  state,  except that the tax shall not be imposed upon (i) a perma-
nent resident, or (ii) where the rent is not more than at  the  rate  of
two dollars per day.
  (2)  [When]  EXCEPT  AS  PROVIDED IN SUBDIVISION (R) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS PART, WHEN occupancy is provided,  for  a  single
consideration,  with property, services, amusement charges, or any other
items, the separate sale of which is not subject to tax under this arti-
cle, the entire consideration shall be treated as rent  subject  to  tax
under  paragraph  one of this subdivision; provided, however, that where
the amount of the rent for occupancy is stated separately from the price
of such property, services, amusement charges, or other  items,  on  any
sales slip, invoice, receipt, or other statement given the occupant, and
such  rent  is  reasonable  in  relation  to the value of such property,
services, amusement charges or other items, only such separately  stated
rent will be subject to tax under paragraph one of this subdivision.
  S  2.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (r) to read as follows:
  (R) (1) IN REGARD TO THE COLLECTION OF SALES  TAX  ON  OCCUPANCIES  BY
ROOM  REMARKETERS, WHEN OCCUPANCY IS PROVIDED FOR A SINGLE CONSIDERATION
WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER
OR  NOT  SUCH OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDER-
ATION FOR SUCH TRANSACTION SHALL BE  COMPUTED  AS  FOLLOWS:  EITHER  THE
TOTAL  CONSIDERATION  RECEIVED  BY  THE  ROOM REMARKETER MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDERATION PAYABLE  FOR
THE  OCCUPANCY BY THE ROOM REMARKETER AND THE DENOMINATOR OF WHICH SHALL
BE SUCH CONSIDERATION PAYABLE FOR THE OCCUPANCY PLUS  THE  CONSIDERATION
PAYABLE  BY  THE  REMARKETER  FOR  THE OTHER ITEMS BEING SOLD, OR BY ANY
OTHER METHOD AS MAY BE AUTHORIZED  BY  THE  COMMISSIONER.  IF  THE  ROOM
REMARKETER  FAILS TO SEPARATELY STATE THE TAX ON THE RENT SO COMPUTED ON
A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN TO THE OCCUPANT
IN THE MANNER PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION  OR  FAILS
TO  MAINTAIN  RECORDS  OF  THE PRICES OF ALL COMPONENTS OF A TRANSACTION
COVERED BY THIS PARAGRAPH, THE ENTIRE CONSIDERATION SHALL BE TREATED  AS
RENT  SUBJECT  TO  TAX UNDER PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION
ELEVEN HUNDRED FIVE OF THIS PART. NOTHING HEREIN SHALL BE  CONSTRUED  TO
SUBJECT  TO  TAX OR EXEMPT FROM TAX ANY SERVICE OR PROPERTY OR AMUSEMENT
CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR EXEMPT FROM TAX  UNDER
THIS ARTICLE OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
CHAPTER.  A  ROOM  REMARKETER'S RECORDS OF THE CONSIDERATION PAYABLE FOR
ALL COMPONENTS OF A TRANSACTION COVERED BY THIS  PARAGRAPH  ARE  RECORDS

S. 6259--C                         28

REQUIRED  TO  BE  MAINTAINED  FOR PURPOSES OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
  (2)  IN  REGARD  TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY ROOM
REMARKETERS, INCLUDING A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF  THIS
SUBDIVISION, THE REQUIREMENTS OF THE SECOND SENTENCE OF PARAGRAPH ONE OF
SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE
SHALL BE DEEMED SATISFIED IF THE REMARKETER GIVES THE CUSTOMER  A  SALES
SLIP,  INVOICE,  RECEIPT,  OR  OTHER  STATEMENT OF THE PRICE ("INVOICE")
PRIOR TO THE CUSTOMER'S COMPLETION OF HIS OR HER OCCUPANCY, ON WHICH THE
AMOUNT OF TAX DUE UNDER THIS ARTICLE AND PURSUANT TO  THE  AUTHORITY  OF
ARTICLE  TWENTY-NINE OF THIS CHAPTER IS STATED. THE ROOM REMARKETER MUST
KEEP EITHER A COPY OF THE INVOICE AS  REQUIRED  BY  SUBDIVISION  (A)  OF
SECTION  ELEVEN  HUNDRED  THIRTY-FIVE  OF  THIS  ARTICLE,  OR ELECTRONIC
RECORDS THAT ACCURATELY REFLECT THE INFORMATION THAT IS ON  THE  INVOICE
PROVIDED TO THE CUSTOMER.
  (3)  IN REGARD TO THE REPORTING AND THE PAYMENT TO THE COMMISSIONER BY
ROOM REMARKETERS OF SALES TAX DUE ON  OCCUPANCIES,  SUBDIVISION  (A)  OF
SECTION  ELEVEN  HUNDRED  THIRTY-SEVEN  OF THIS ARTICLE SHALL BE READ TO
REQUIRE A ROOM REMARKETER TO REPORT SUCH SALES  TAX  DUE,  INCLUDING  IN
REGARD  TO A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION,
ON THE RETURN DUE FOR THE FILING PERIOD IN WHICH THE OCCUPANCY ENDS AND,
AT THE TIME OF FILING SUCH RETURN, TO PAY TO THE COMMISSIONER THE  TOTAL
AMOUNT DESCRIBED BY SUCH SUBDIVISION (A).
  S  3.  Subdivision  (e)  of  section  1119 of the tax law, as added by
section 5 of part AA of chapter 57 of the laws of 2010,  is  amended  to
read as follows:
  (e)  Subject  to  conditions and limitations provided in this subdivi-
sion, a room remarketer shall be allowed a refund or credit against  the
amount of tax collected and required to be remitted under section eleven
hundred thirty-seven of this article in the amount of the tax it paid to
an  operator  of a hotel under section eleven hundred four of this arti-
cle, where applicable, and subdivision (e)  of  section  eleven  hundred
five of this article. Provided, however, that, in order to qualify for a
refund  or  credit  under  this  subdivision for any sales tax quarterly
period, the room remarketer must, for that quarter,  (1)  be  registered
for  sales tax purposes under section eleven hundred thirty-four of this
article; (2) collect the taxes imposed by section eleven hundred four of
this article, where applicable, and subdivision (e)  of  section  eleven
hundred five of this article; and (3) furnish the certificate of author-
ity  number  of  the  operator to whom the applicant paid the tax in its
application for refund or credit  if  required  on  that  form  or  upon
request.    PROVIDED THAT IF THE ROOM REMARKETER REQUESTS THE OPERATOR'S
CERTIFICATE OF AUTHORITY NUMBER AND IS NOT PROVIDED  WITH  THAT  NUMBER,
THE ROOM REMARKETER MAY SATISFY THIS REQUIREMENT BY PROVIDING THE OPERA-
TOR'S  NAME,  BUSINESS ADDRESS, TELEPHONE NUMBER, AND THE ADDRESS OF THE
HOTEL WHERE THE OCCUPANCY TOOK PLACE. An application for refund or cred-
it under this subdivision must be filed with the commissioner within the
time provided by subdivision (a) of section eleven  hundred  thirty-nine
of  this  article. The application must be in the form prescribed by the
commissioner. Where an application for credit has been filed, the appli-
cant may immediately take the credit on the return that is  due  coinci-
dent with or immediately subsequent to the time that the applicant files
the  application  for  credit.  However, the taking of the credit on the
return is deemed to be part of the application for credit. The procedure
for granting or denying the applications for refund or credit and review
of those determinations shall be  as  provided  in  subdivision  (e)  of

S. 6259--C                         29

section eleven hundred thirty-nine of this article. An operator, includ-
ing  a  room  remarketer, who is paid tax by a room remarketer must upon
request provide the remarketer with its certificate of authority number,
provided  that  the  operator's  failure  to  do  so does not change the
requirement set forth in paragraph three of this subdivision.
  S 4. Paragraph 4 of subdivision a of section 11-2502 of  the  adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (4)  (I)  When occupancy is provided, for a single consideration, with
property, services, amusement charges, or any other items, the  separate
sale  of  which  is  not  subject  to tax under this chapter, the entire
consideration shall be treated as rent subject to  tax  under  paragraph
one of this subdivision; provided, however, that where the amount of the
rent for occupancy is stated separately from the price of such property,
services,  amusement  charges or other items on any sales slip, invoice,
receipt, or other statement given the occupant and such rent is  reason-
able  in  relation  to  the  value of such property, services, amusement
charges, or other items,  only  such  separately  stated  rent  will  be
subject to tax under [paragraph one of] this subdivision.
  (II) IN REGARD TO THE COLLECTION OF TAX ON OCCUPANCIES BY REMARKETERS,
WHEN  OCCUPANCY  IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROPERTY,
SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS,  WHETHER  OR  NOT  SUCH
OTHER  ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDERATION FOR SUCH
SALE SHALL BE COMPUTED AS FOLLOWS: THE TOTAL CONSIDERATION FOR THE  SALE
MULTIPLIED  BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDER-
ATION PAID TO THE HOTEL FOR THE OCCUPANCY AND THE DENOMINATOR  OF  WHICH
SHALL  BE THE CONSIDERATION PAID TO THE HOTEL FOR THE OCCUPANCY PLUS THE
CONSIDERATION PAID TO THE PROVIDERS OF THE OTHER ITEMS BEING SOLD, OR BY
ANY OTHER REASONABLE METHOD  PURSUANT  TO  WHICH  THE  RENT  PORTION  OF
CONSIDERATION  WOULD  BE NO LESS THAN THE COMPUTATION OF RENT PORTION OF
CONSIDERATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.  NOTHING  HEREIN
SHALL  BE  CONSTRUED TO SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR
PROPERTY OR AMUSEMENT CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX  OR
EXEMPT FROM TAX UNDER THIS CHAPTER.
  S  5.  Paragraph 5 of subdivision a of section 11-2502 of the adminis-
trative code of the city of New York, as amended by section 8 of part AA
of chapter 57 of the laws of 2010, is amended to read as follows:
  (5) A room remarketer shall be allowed a refund or credit against  the
taxes  collected and required to be remitted pursuant to section 11-2505
of this chapter in the amount of the tax it paid to the operator of  the
hotel  or another room remarketer under [paragraph three of] this subdi-
vision. Provided, however, that in order to  qualify  for  a  refund  or
credit  under  this  paragraph  with respect to any quarterly period, as
described in subdivision a of section 11-2504 of this chapter, the  room
remarketer  must,  with  respect  to such quarter, (i) be registered for
hotel room occupancy tax purposes under section 11-2514 of this chapter,
and (ii) collect the taxes imposed by paragraphs two and three  of  this
subdivision.  Subject  to  the  conditions and limitations of this para-
graph, the provisions of section 11-2507 of this chapter shall apply  to
refunds or credits under this paragraph.
  S  6.  Subdivision  f of section 11-2502 of the administrative code of
the city of New York, as amended by local law number 43 of the  city  of
New York for the year 2009 and paragraph 2 as renumbered by section 9 of
part  AA  of  chapter  57  of  the  laws  of 2010, is amended to read as
follows:

S. 6259--C                         30

  f. The tax to be collected shall be stated  [and  charged]  separately
from  the  rent [and shown separately on any record thereof, at the time
when the occupancy is arranged or contracted for  and  charged  for  and
upon every evidence of occupancy or any bill or statement or charge made
for said occupancy issued or delivered by the operator or room remarket-
er]  ON  A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE
("INVOICE") GIVEN TO THE OCCUPANT PRIOR TO THE OCCUPANT'S COMPLETION  OF
HIS  OR HER OCCUPANCY AND BE VERIFIABLE FROM THE BOOKS AND RECORDS OF AN
OPERATOR OR ROOM REMARKETER RESPONSIBLE FOR COLLECTING AND REMITTING THE
TAX.
  (1) Where an occupant rents a room directly from an operator, the  tax
shall  be  paid  by  the  occupant to the operator as trustee for and on
account of the city, and the operator shall be liable for the collection
of the tax on the rent and for the payment of the tax on the rent.
  (2) The operator or room remarketer and any officer of  any  corporate
operator  or  room remarketer shall be personally liable for the portion
of the tax collected or required to be collected under this chapter, and
the operator shall have the same right in respect to collecting the  tax
from  the  occupant, or in respect to nonpayment of the tax by the occu-
pant as if the tax were a part of the rent for the occupancy payable  at
the  time  such  tax shall become due and owing, including all rights of
eviction, dispossession, repossession and enforcement of any innkeeper's
lien that he or she may have in the event of nonpayment of rent  by  the
occupant;  provided  however,  that the commissioner of finance shall be
joined as a party in any action or proceeding brought by the operator to
collect or enforce collection of the tax.
  S 7. This act shall take effect September 1, 2012 and shall  apply  to
occupancies that commence on or after such date.

                                 PART R

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (uu) to read as follows:
  (UU) 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 SOLE PROPRIETOR WHO EMPLOYS  ONE
OR MORE PERSONS 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 UNITED 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. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
210  of  the tax law, as amended by section 2 of part N of chapter 60 of
the laws of 2007, is amended to read as follows:
  (iv) for taxable years beginning on or after January first, two  thou-
sand  seven  AND  ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, if
the entire net income base is not more than two hundred ninety  thousand
dollars  the  amount shall be six and one-half percent of the entire net
income base; if the entire net income base  is  more  than  two  hundred
ninety  thousand  dollars  but  not  over  three hundred ninety thousand

S. 6259--C                         31

dollars the amount shall be the  sum  of  (1)  eighteen  thousand  eight
hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
the entire net income base over two hundred ninety thousand dollars  but
not  over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the entire net income base over
three hundred fifty thousand dollars but not over three  hundred  ninety
thousand dollars;
  S  3.  Paragraph (a) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph (vii) to read as follows:
  (VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND THIRTEEN, IF THE ENTIRE NET  INCOME  BASE  IS  NOT  MORE  THAN  TWO
HUNDRED  NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE  IS
MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
THE  EXCESS  OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND  (3)
SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
OVER  THREE  HUNDRED  FIFTY  THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
  S 4. The opening paragraph of  subparagraph  4  of  paragraph  (d)  of
subdivision  1  of  section 210 of the tax law, as added by section 2 of
part AA-1 of chapter 57 of the laws of  2008,  is  amended  to  read  as
follows:
  Notwithstanding subparagraphs one and two of this paragraph, for taxa-
ble  years  beginning  on or after January first, two thousand eight AND
ENDING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN,   the   amount
prescribed  by this paragraph for New York S corporations will be deter-
mined in accordance with the following table:
  S 5. Subparagraph 5 of paragraph (d) of subdivision 1 of  section  210
of the tax law is renumbered subparagraph 6.
  S  6.  Paragraph (d) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph 5 to read as follows:
  (5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS  PARAGRAPH,  FOR
TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
TEEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH  FOR  NEW  YORK  S  CORPO-
RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,000
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,000
OVER $25,000,000                                            $4,500
OTHERWISE  THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,500
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,500
OVER $25,000,000                                            $5,000

S. 6259--C                         32

FOR PURPOSES OF THIS PARAGRAPH,  NEW  YORK  RECEIPTS  ARE  THE  RECEIPTS
COMPUTED  IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDI-
VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
  S  7.  Subparagraph 6 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 and as renumbered by section five of this act, is amended
to read as follows:
  (6) 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] FIVE of this paragraph as the
fixed dollar minimum tax for an eligible qualified New York manufacturer
shall be one-half of the amounts  stated  in  those  subparagraphs.  For
purposes  of  this  subparagraph,  the term "eligible qualified New York
manufacturer" shall have the same meaning as  in  subparagraph  (vi)  of
paragraph (a) of this subdivision.
  S  8.  The  tax  law  is amended by adding a new section 37 to read as
follows:
  S 37. HIRE-NOW 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
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)  HIRE-A-VET 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 AND IS ALSO A VETERAN, AN ADDI-
TIONAL FIVE 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 UNTIED 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

S. 6259--C                         33

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 DOUBLE CREDIT. A TAXPAYER MAY NOT BE  ALLOWED  A  CREDIT  UNDER
BOTH  SUBDIVISION  (B)  AND SUBDIVISION (C) OF THIS SECTION FOR THE SAME
EMPLOYEE.
  (G) 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
INCREASE IN EMPLOYMENT.
  S 9. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45. HIRE-NOW 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
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 10. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV)  HIRE-NOW 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 11. 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-NOW TAX CREDIT             AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV)                   SUBDIVISION FORTY-FIVE OF SECTION
                                        TWO HUNDRED TEN
  S  12.  This act shall take effect immediately; provided that sections
one, seven, eight, nine, ten and eleven of this act shall apply to taxa-
ble years beginning on or after January 1, 2013.

                                 PART S

  Section 1. The first undesignated paragraph of section  970-b  of  the
general  municipal  law, as added by chapter 916 of the laws of 1984 and

S. 6259--C                         34

such section as renumbered by chapter  686  of  the  laws  of  1986,  is
amended  and  a  new  fourth  undesignated paragraph is added to read as
follows:
  It  is hereby found and declared that there exists in many communities
blighted areas which threaten the economic and social well-being of  the
people  of the state. Blighted areas are characterized by one or more of
the conditions set forth in subdivision  (a)  of  section  nine  hundred
[sixty-c] SEVENTY-C of this article.
  IT IS FURTHER FOUND AND DECLARED THAT SOUND DEVELOPMENT AND REDEVELOP-
MENT  OF  BLIGHTED AREAS INCREASES PUBLIC SCHOOL ENROLLMENT BY PROVIDING
AFFORDABLE  HOUSING  AND  EMPLOYMENT  OPPORTUNITIES  AND  THE  NEED  FOR
EXPANDED PUBLIC EDUCATION FACILITIES AND SERVICES.
  S 2. Subdivision (b) of section 970-c of the general municipal law, as
added  by chapter 916 of the laws of 1984 and such section as renumbered
by chapter 686 of the laws of 1986, is amended and a new subdivision (i)
is added to read as follows:
  (b) "Legislative body" means (I) the governing body of a  municipality
empowered  to  adopt  and  amend  local  laws and ordinances[; provided,
however, that in the case of the city of New York, the legislative  body
shall, for the purposes of this article be the board of estimate].
  (I)  "SCHOOL  DISTRICT"  MEANS  ANY  SCHOOL  DISTRICT,  A  CITY SCHOOL
DISTRICT OR A SCHOOL DISTRICT IN A CITY, AS THOSE TERMS ARE  DEFINED  IN
SECTION 2.00 OF THE LOCAL FINANCE LAW.
  S  3.  The closing paragraph of section 970-e of the general municipal
law, as added by chapter 916 of the laws of 1984  and  such  section  as
renumbered  by  chapter  686  of the laws of 1986, is amended to read as
follows:
  The legislative body shall also provide for the review of such prelim-
inary plans by the BOARDS OF EDUCATION OF THE SCHOOL  DISTRICTS  IN  THE
PROJECT  AREA AND THE planning agency and any other agency or department
of the municipality with responsibility for zoning or land use planning.
Nothing in this article shall be construed to supersede the requirements
and procedures for the zoning and  use  of  land  as  may  otherwise  be
prescribed by law.
  S 4. Subdivisions (d), (i), (l) and (n) of section 970-f of the gener-
al  municipal  law, as added by chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, are amended to
read as follows:
  (d) shall describe the proposed method of financing the  redevelopment
of  the  project  area  in  detail  sufficient to determine the economic
feasibility of the plan, INCLUDING THE ISSUANCE OF BONDS BY THE  MUNICI-
PALITY,  INCLUSIVE  OF  ANY  BONDS TO BE ISSUED PURSUANT TO SECTION NINE
HUNDRED SEVENTY-O OF THIS ARTICLE, AND THE  USE  OF  THE  PROCEEDS  FROM
THEIR  SALE  IN CARRYING OUT THE REDEVELOPMENT PLAN. IF SUCH AN ISSUANCE
IS PROVIDED FOR, THE REDEVELOPMENT  PLAN  SHALL  ALSO  CONTAIN  ADEQUATE
PROVISION FOR THE PAYMENT OF PRINCIPAL AND INTEREST WHEN THEY BECOME DUE
AND PAYABLE;
  [(i) may provide for the issuance of bonds by the municipality and for
the  use  of the proceeds from their sale in carrying out the redevelop-
ment plan.  If such an issuance is provided for, the redevelopment  plan
shall  also  contain adequate provision for the payment of principal and
interest when they become due and payable;]
  (l) shall provide a limitation on the amount of  bonds  which  may  be
issued  pursuant  to  section  nine  hundred [sixty-o] SEVENTY-O of this
article for the purpose of carrying out or administering the  redevelop-
ment plan;

S. 6259--C                         35

  (n) shall provide a plan for the relocation of families and persons to
be  temporarily  or permanently displaced from housing facilities in the
project area, which plan shall include the provision required by section
nine hundred [sixty-j] SEVENTY-J OF THIS ARTICLE that no person or fami-
ly  of low and moderate income shall be displaced unless and until there
is suitable housing available and ready for occupancy by such  displaced
person  or family at rents comparable to those paid at the time of their
displacement.
  S 5. Section 970-g of the general municipal law, as added  by  chapter
916 of the laws of 1984 and such section as renumbered by chapter 686 of
the laws of 1986, is amended to read as follows:
  S  970-g. Plan review. Before any redevelopment plan is adopted by the
legislative body, it shall [submit]:
  (A) [submit] SUBMIT SUCH plan to the planning agency  for  its  review
and  recommendations.  Such review shall consider the conformity of such
redevelopment plan with any master plan which has been  adopted  by  the
planning agency and approved by the legislative body. The planning agen-
cy  may recommend for or against the approval of the redevelopment plan.
Within thirty days after a redevelopment plan is  submitted  to  it  for
consideration,  the  planning  agency shall make and file its review and
recommendations with the legislative body. If the planning  agency  does
not  report  upon  the  redevelopment  plan within thirty days after its
submission, the legislative body may thereafter approve the plan without
the review and recommendations of the planning agency;
  (B) SUBMIT SUCH  PLAN  TO  THE  BOARDS  OF  EDUCATION  OF  THE  SCHOOL
DISTRICTS  IMPACTED BY THE REDEVELOPMENT PLAN FOR REVIEW AND APPROVAL OF
ANY TAX ALLOCATION PURSUANT TO SECTION NINE HUNDRED  SEVENTY-P  OF  THIS
ARTICLE IN RELATION TO BONDS ISSUED UNDER SECTION NINE HUNDRED SEVENTY-O
OF THIS ARTICLE. TO BE SUBJECT TO SUCH REDEVELOPMENT PLAN AND ALLOCATION
OF TAXES PURSUANT TO SECTION NINE HUNDRED SEVENTY-P OF THIS ARTICLE, THE
BOARD  OF  EDUCATION OF AN IMPACTED SCHOOL DISTRICT SHALL ADOPT A RESOL-
UTION APPROVING SUCH PLAN AND ALLOCATION AND TRANSMIT SUCH RESOLUTION TO
THE LEGISLATIVE BODY.
  S 6. Subdivisions (b), (c), and (h) of section 970-h  of  the  general
municipal  law,  as  added  by  chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, are amended to
read as follows:
  (b) Notice of the hearing shall be posted in at least  four  prominent
places within the project area for a period of three weeks prior to such
hearing  and  shall  be  published  not  less than once a week for three
successive weeks prior to the hearing in a newspaper of  general  circu-
lation in the municipality involved. The notice of hearing shall include
a  legal  description  of  the  boundaries  of the PROJECT area or areas
designated in the proposed redevelopment plan and a general statement of
the scope and objectives of the plan. A copy of  the  notices  shall  be
mailed to the last known owner of each parcel of land in the area desig-
nated  in  the  redevelopment plan.   A copy of the notice shall also be
mailed to the legislative body of each of the taxing jurisdictions which
levies taxes upon any real property in the project  area  designated  in
the proposed redevelopment plan.
  (c)  Any and all persons who have any objections to the proposed rede-
velopment plan or who deny the existence of blight as defined by  subdi-
vision  (a) of section nine hundred [sixty-c] SEVENTY-C of this article,
in the proposed project area, or the legality or appropriateness of  any
of the prior proceedings, may appear before the legislative body at such
public  hearing  and  show  cause  why  the  proposed plan should not be

S. 6259--C                         36

adopted. At any time not later than the hour set for hearing  objections
to  the proposed redevelopment plan, any person may file in writing with
the  clerk  of  the  legislative  body  a  statement  of  such  person's
objections to the proposed plan.
  (h)  After  the  adoption  by  the legislative body of a redevelopment
plan, the legislative body shall  transmit  a  copy  of  the  resolution
adopting  the  plan,  and a map or plat indicating the boundaries of the
project area to the SCHOOL DISTRICTS IMPACTED BY THE REDEVELOPMENT  PLAN
AND  THE  official  or officials responsible for the assessment for real
property tax purposes of the property included in the project area.
  S 7. Section 970-m of the general municipal law, as added  by  chapter
916 of the laws of 1984 and such section as renumbered by chapter 686 of
the laws of 1986, is amended to read as follows:
  S  970-m.  Amendment  of  redevelopment plan. If at any time after the
adoption of a redevelopment plan for a project area by  the  legislative
body,  it  becomes  necessary or desirable to amend or modify such plan,
the legislative body may by resolution amend such plan. Such  amendments
may  include  a change in the boundaries of the project area to add land
to or, prior to the issuance of indebtedness pursuant  to  section  nine
hundred [sixty-o] SEVENTY-O OF THIS ARTICLE as provided by such redevel-
opment plan, exclude land from the project area. An amendment or modifi-
cation  of  the  plan  shall  be  approved  pursuant to subdivisions (a)
through (g) of section nine hundred [sixty-h] SEVENTY-H of this  article
AND  BY ANY SCHOOL DISTRICT THAT APPROVED SUCH PLAN PURSUANT TO SUBDIVI-
SION (B) OF  SECTION  NINE  HUNDRED  SEVENTY-G  OF  THIS  ARTICLE.  Upon
adoption  of  the  amended  plan by the legislative body the legislative
body shall transmit the amended plan as provided by subdivision  (h)  of
[such] section NINE HUNDRED SEVENTY-H OF THIS ARTICLE.
  S  8. Paragraphs (iii) and (iv) of subdivision (a) of section 970-n of
the general municipal law, as added by chapter 916 of the laws  of  1984
and  such  section as renumbered by chapter 686 of the laws of 1986, are
amended to read as follows:
  (iii) If two or more municipalities jointly exercise the powers grant-
ed under this subdivision and a redevelopment plan as  adopted  provides
for  the  allocation  of  real property tax revenues pursuant to section
nine hundred [sixty-o] SEVENTY-O of this article the real property taxes
of each municipality shall be allocated pursuant to such section.
  (iv) If two or more municipalities jointly exercise the powers granted
under this subdivision and the redevelopment plan  as  adopted  provides
for  the  issuance  of  indebtedness  pursuant  to  section nine hundred
[sixty-o] SEVENTY-O of this article, such indebtedness shall  either  be
issued  jointly by the municipalities and the resolution authorizing the
issuance of such indebtedness must be approved by the  legislative  body
of  each municipality acting separately or shall be issued by resolution
of the [the] designated agent on behalf of the municipality  it  repres-
ents and, by resolution of its legislative body, each municipality shall
irrevocably  pledge  the  revenues  allocated  pursuant  to section nine
hundred [sixty-p] SEVENTY-P of this article to  the  repayment  of  such
indebtedness and any interest thereon.
  S  9. Paragraphs (ii) and (iii) and subparagraph 1 of paragraph (v) of
subdivision (b) of section 970-n of the general municipal law, as  added
by  chapter  916  of  the laws of 1984 and such section as renumbered by
chapter 686 of the laws of 1986, are amended to read as follows:
  (ii) A municipal redevelopment authority shall be a corporate  govern-
mental  agency  constituting  a  public  benefit  corporation. Except as
otherwise provided by special act of the legislature, an authority shall

S. 6259--C                         37

consist of not less than five nor more  than  nine  members.  Membership
shall  be  apportioned  among  the  municipalities,  and  the  manner of
selection of  a  chairman  determined  by  an  intermunicipal  agreement
approved by local law by each such municipality.  Members shall serve at
the pleasure of the appointing authority, and each member shall continue
to  hold  office until his successor is appointed and has qualified. The
[governing] LEGISLATIVE body shall file with the secretary  of  state  a
certificate  of  appointment or reappointment of any member appointed or
reappointed by it. Members  shall  receive  no  compensation  for  their
services  but  shall  be  entitled  to  reimbursement  of  the necessary
expenses, including traveling expenses, incurred  in  the  discharge  of
their  duties.  No action shall be taken by an authority except pursuant
to the favorable vote of a majority of the members then in  office.  Any
one  or  more  of  the  members of an authority may be an official or an
employee of such municipality. In the  event  that  an  official  or  an
employee  of  such  municipality  shall  be appointed as a member of the
agency, acceptance or retention of such appointment shall not be  deemed
a  forfeiture of his OR HER municipal office or employment, or incompat-
ible therewith or affect his OR HER tenure or compensation in  any  way.
The  term of office of a member of an authority who is an official or an
employee of such municipality when appointed  as  a  member  thereof  by
special act of the legislature creating the authority shall terminate at
the  expiration  of  the  term  of his OR HER municipal office. Upon THE
creation of an authority, from time to time the [governing]  LEGISLATIVE
body of a municipality, may, by resolution, appropriate sums of money to
defray the expenses of the authority.
  (iii)  Unless otherwise provided by this subdivision or by the special
act of the legislature establishing a municipal redevelopment  authority
or  empowering  an existing public corporation to carry out the purposes
and provisions of this article, such  authority  or  public  corporation
shall  have  the  powers,  duties and responsibilities granted a munici-
pality and its  legislative  body  pursuant  to  sections  nine  hundred
[sixty-d]  SEVENTY-D  through  nine  hundred [sixty-m] SEVENTY-M of this
article, as well as the authority to receive the taxes of  each  munici-
pality  allocated  and  paid  pursuant to section nine hundred [sixty-p]
SEVENTY-P of this article. Such authority or  public  corporation  shall
have  the  power  to  designate survey areas and select project areas as
provided by sections nine hundred [sixty-d] SEVENTY-D and  nine  hundred
[sixty-e]  SEVENTY-E  of  this  article. Such authority or public corpo-
ration shall obtain the report and recommendation of the planning agency
of each municipality on the redevelopment plan and its conformity to the
master plan of each municipality  before  presenting  the  redevelopment
plan  to  the  legislative  body  of each municipality.   In order for a
preliminary plan to be adopted or for a redevelopment plan to be adopted
or amended approval must be obtained by resolution  of  the  legislative
body of each municipality acting separately.
  (1)  An  authority  or  public  corporation  shall have the powers and
duties granted municipalities pursuant to section nine hundred [sixty-o]
SEVENTY-O of this article to issue tax increment bonds and tax increment
bond anticipation notes.  Such bonds and notes shall be bonds and  notes
of  the  authority  or  public corporation and neither the state nor any
municipality shall be liable on such bonds and notes and such bonds  and
notes shall not be a debt of the state or of any municipality.
  S  10.  Subdivisions  (a), (g) and (i) of section 970-o of the general
municipal law, as added by chapter 916 of the  laws  of  1984  and  such

S. 6259--C                         38

section as renumbered by chapter 686 of the laws of 1986, are amended to
read as follows:
  (a)  For  the purpose of carrying out or administering a redevelopment
plan adopted by the legislative body, a municipality is  hereby  author-
ized,  without  limiting its authority under other provisions of law, to
issue by resolution of its legislative body tax increment bonds  or  tax
increment  bond anticipation notes of the municipality which are payable
from and secured by real property taxes, in whole or in part,  allocated
to and paid pursuant to the provisions of section nine hundred [sixty-p]
SEVENTY-P  of this article. The pledge of such real property taxes allo-
cated and paid shall constitute a first lien  on  the  revenues  derived
therefrom  and  tax  increment  bonds or tax increment bond anticipation
notes, the repayment of which is secured by such revenues shall  not  be
subordinate  to  any other indebtedness of the municipality with respect
to the pledge of such revenues. The municipality shall have the power to
issue renewal notes, to issue bonds to pay notes and whenever  it  deems
refunding  expedient,  to refund any bonds by the issuance of new bonds,
whether the bonds to be refunded have or have not matured, and to  issue
bonds  partly  to refund bonds then outstanding and partly for any other
purposes.
  (g) The amount of any indebtedness contracted under this section shall
be excluded in ascertaining the power of the municipality  OR  A  SCHOOL
DISTRICT  to  contract  indebtedness  within the provisions of the state
constitution or the local finance law relating thereto.
  (i) The municipality may [only] contract indebtedness pursuant to this
section for the following objects [and] OR purposes, EACH OF WHICH SHALL
BE A PUBLIC USE AND A PUBLIC PURPOSE:
  (i) acquisition AND ASSEMBLAGE of land INCLUDING ENVIRONMENTAL REMEDI-
ATION AND  BROWNFIELD  REDEVELOPMENT  AUTHORIZED  IN  THE  ENVIRONMENTAL
CONSERVATION LAW;
  (ii)  demolition and removal of buildings, structures and improvements
and site preparation;
  (iii) installation, construction or reconstruction of  streets,  walk-
ways,  docks,  drainage,  parking  facilities, flood control facilities,
water and sewer systems and other [public] utilities,  parks  and  play-
grounds;
  (iv)  other public improvements or services integral to the redevelop-
ment plan authorized by or for which a period of probable usefulness has
been established by section  11.00  of  the  local  finance  law.  [Such
objects]  OBJECTS  and purposes REFERRED TO IN THIS SUBDIVISION shall be
deemed to have the period of probable usefulness as  provided  GENERALLY
for such objects and purposes by such section.
  S 11. Paragraph (i) of subdivision (d) of section 970-o of the general
municipal  law,  as  added  by  chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, is amended  to
read as follows:
  (i)  pledging all or a part of the taxes allocated pursuant to section
nine hundred [sixty-p] SEVENTY-P of this article or  the  proceeds  from
the  sale  of property acquired with the proceeds of such notes or bonds
to secure the payment of such notes or bonds or of  any  issue  thereof,
subject to such agreements with bondholders or noteholders as may exist;
  S  12. Section 970-p of the general municipal law, as added by chapter
916 of the laws of 1984 and as renumbered by chapter 686 of the laws  of
1986, is amended to read as follows:
  S 970-p. Allocation of taxes. (a) Any redevelopment plan may contain a
provision  that real property taxes levied upon taxable real property in

S. 6259--C                         39

the project area each year by or for the  benefit  of  the  municipality
[or], municipalities OR SCHOOL DISTRICTS after the effective date of the
resolution  approving  the  redevelopment  plan,  shall  be  divided  as
follows:
  (i)  that  portion  of  the  real  property taxes not in excess of the
amount which would be produced by applying the rate upon which  the  tax
is levied each year by or for each municipality AND EACH SCHOOL DISTRICT
to  the  total sum of the assessed value of the taxable real property in
the project area as shown upon the assessment roll  used  in  connection
with  the taxation of such property by such municipality AND SUCH SCHOOL
DISTRICT, last adopted prior to the effective  date  of  the  resolution
approving  such  plan, shall be allocated to and when collected shall be
paid  into  the  funds  of  the  respective  municipalities  AND  SCHOOL
DISTRICTS as real property taxes collected by or for said municipalities
adopting AND SCHOOL DISTRICTS APPROVING the redevelopment plan;
  (ii)  that  portion  of  the  real  property taxes levied each year in
excess of the portion allocated and paid pursuant to  paragraph  (i)  of
this  subdivision shall be allocated to and when collected shall be paid
into the fund or funds established for such purposes to pay the  princi-
pal  and interest on indebtedness incurred by such municipality pursuant
to section nine hundred [sixty-o] SEVENTY-O of this article or,  if  the
redevelopment  plan so provides, the amount allocated and paid in excess
of interest and principal and necessary reserves  may  be  expended  for
amounts of money to be paid in lieu of taxes. Unless and until the total
assessed valuation of the taxable property in a project area exceeds the
total  assessed  value of the taxable real property in such project area
as shown by the last assessment roll referred to  in  paragraph  (i)  of
this  subdivision,  all  of the real property taxes levied and collected
upon the taxable real property in such project area shall be  paid  into
the  funds  of the respective municipalities AND SCHOOL DISTRICTS.  When
such indebtedness, if any and interest  thereon,  have  been  paid,  all
moneys  thereafter  received  from  real property taxes upon the taxable
real property in such project area shall be paid into the funds  of  the
respective municipalities AND SCHOOL DISTRICTS as real property taxes on
all other real property are paid;
  (iii)  whenever  the  total  amount  of  real property taxes allocated
pursuant to paragraph (ii) of this subdivision exceeds the amounts allo-
cated and paid for interest and principal and  necessary  reserves,  and
for  amounts  to be paid in lieu of taxes, the amount of taxes in excess
of such amounts shall be paid into the funds of the  respective  munici-
palities  AND  SCHOOL  DISTRICTS as taxes on all other real property are
paid;
  (iv) the allocation of taxes authorized  by  this  section  (1)  shall
apply  to taxable years beginning after the effective date of the resol-
ution approving the redevelopment plan.
  (b) Whenever real property in any redevelopment project has been rede-
veloped and thereafter is leased by the municipality to  any  person  or
persons or whenever the agency leases real property in any redevelopment
project  to  any person or persons for redevelopment, the property shall
be assessed and taxed in the same manner as privately owned real proper-
ty and the lease or contract shall provide that  the  lessee  shall  pay
real  property taxes upon the assessed value of the entire real property
and not merely the assessed value of his or her leasehold interest.
  (c) In any municipality OR SCHOOL DISTRICT subject to  the  allocation
of  revenues pursuant to this section the assessed value of taxable real
property located in a project area shall  be  included  on  the  taxable

S. 6259--C                         40

portion  of the assessment roll, provided, however, that notwithstanding
any provision of law to the contrary, the assessed value  determined  in
accordance  with paragraph (ii) of subdivision (a) of this section shall
not  be  included in the taxable value of real property when determining
the tax rate for such municipality OR SCHOOL DISTRICT.
  (d) The rate of tax resulting from the levy  of  real  property  taxes
shall  be  applied to the assessed value of any real property subject to
the allocation provisions of this  section  as  determined  pursuant  to
subdivision  (a) of this section, however, the amount of tax levied as a
result of the application of the tax rate to the  increase  in  assessed
value determined in accordance with paragraph (ii) of subdivision (a) of
this  section shall not be paid into the fund of the municipality OR THE
SCHOOL DISTRICT as real property taxes but shall be  allocated  pursuant
to that paragraph.
  (e)  The  official or officials responsible for the preparation of the
assessment roll or rolls specified in subdivision (a)  of  this  section
shall   provide   to  the  municipality  or  municipalities  AND  SCHOOL
DISTRICTS, in addition to the assessment roll or rolls, such information
as is deemed necessary by the legislative bodies of the municipality  or
municipalities  AND  SCHOOL  DISTRICTS to effectuate the purpose of this
section.
  (f) The allocation of real property taxes authorized by  this  section
shall be permitted only with respect to municipalities [which] THAT have
adopted  AND  SCHOOL  DISTRICTS  THAT HAVE APPROVED a redevelopment plan
providing for such allocation pursuant to section nine hundred [sixty-h]
SEVENTY-H or section nine hundred [sixty-n] SEVENTY-N  of  this  article
and  such  allocation  shall  not apply to special ad valorem levies and
special assessments as defined by subdivisions fourteen and  fifteen  of
section one hundred two of the real property tax law.
  (g)  If, after adoption of a redevelopment plan, the official or offi-
cials responsible for the preparation of the assessment  roll  or  rolls
specified  in  subdivision (a) of this section undertake to revalue real
property for real property tax purposes  by  altering  the  standard  of
assessment  utilized to establish the value of real property for assess-
ment purposes, the assessment of real property within a project area  as
provided  by  paragraph  (i) of subdivision (a) of this section shall be
adjusted in such manner as if such new standard of assessment  had  been
utilized in the preparation of the assessment roll last adopted prior to
adoption of the redevelopment plan.
  (H) IN ESTABLISHING A UNIFORM TAX EXEMPTION POLICY PURSUANT TO SECTION
EIGHT  HUNDRED  SEVENTY-FOUR  OF  THIS CHAPTER, AN AGENCY SHALL NOT TAKE
INTO ACCOUNT THE PORTION OF REAL PROPERTY TAXES MEASURED UNDER PARAGRAPH
(II) OF SUBDIVISION (A) OF THIS SECTION IN COMPUTING A PAYMENT  IN  LIEU
OF TAXES AGREEMENT.
  S 13. This act shall take effect immediately.

                                 PART T

  Section  1.  Subparagraph  (A)  of  paragraph  2  of subsection (t) of
section 606 of the tax law, as amended by section 1 of part N of chapter
85 of the laws of 2002, is amended to read as follows:
  (A) The term "allowable  college  tuition  expenses"  shall  mean  the
amount  of  qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable  year[,].  THE  AMOUNT  OF  QUALIFIED
COLLEGE  TUITION  EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND  TWELVE,  ten

S. 6259--C                         41

thousand  dollars  for each such student, FOR TAXABLE YEARS BEGINNING IN
OR AFTER TWO THOUSAND TWELVE, THIRTEEN THOUSAND  EIGHT  HUNDRED  DOLLARS
FOR EACH SUCH STUDENT;
  S  2.  Paragraph 4 of subsection (t) of section 606 of the tax law, as
added by section 1 of part DD of chapter 63 of  the  laws  of  2000,  is
amended to read as follows:
  (4)  Amount of credit. [If allowable college tuition expenses are less
than five thousand dollars, the amount of the credit provided under this
subsection shall be equal to the applicable percentage of the lesser  of
allowable  college tuition expenses or two hundred dollars. If allowable
college tuition expenses are five thousand dollars or more,  the  amount
of  the  credit  provided  under  this  subsection shall be equal to the
applicable percentage of the allowable college tuition  expenses  multi-
plied  by four percent.] THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING SCHEDULES:
  (A) FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  AND  BEFORE  TWO
THOUSAND TWELVE:
IF ALLOWABLE COLLEGE TUITION
EXPENSES ARE:                        THE TAX CREDIT IS EQUAL TO:
LESS THAN FIVE THOUSAND DOLLARS      THE APPLICABLE PERCENTAGE OF THE
                                     LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO
                                     HUNDRED DOLLARS
FIVE THOUSAND DOLLARS OR MORE        THE APPLICABLE PERCENTAGE
                                     OF ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR
                                     PERCENT
  (B) FOR TAXABLE YEARS BEGINNING IN OR AFTER TWO THOUSAND TWELVE:
IF ALLOWABLE COLLEGE TUITION
EXPENSES ARE:                        THE TAX CREDIT IS EQUAL TO:
LESS THAN SIX THOUSAND NINE          THE LESSER OF ALLOWABLE
HUNDRED DOLLARS                      COLLEGE TUITION EXPENSES OR TWO
                                     HUNDRED SEVENTY-FIVE DOLLARS
SIX THOUSAND NINE HUNDRED            THE ALLOWABLE COLLEGE TUITION
DOLLARS OR MORE                      EXPENSES MULTIPLIED BY FOUR PERCENT
  Such  applicable  percentage  shall be twenty-five percent for taxable
years beginning in two thousand one, fifty  percent  for  taxable  years
beginning  in  two  thousand two, seventy-five percent for taxable years
beginning in two thousand three and  one  hundred  percent  for  taxable
years beginning after two thousand three.
  S 3. Subsection (t) of section 606 of the tax law is amended by adding
a new paragraph 4-a to read as follows:
  (4-A)  INFLATION  ADJUSTMENT.  (A)  FOR  TAXABLE YEARS BEGINNING IN OR
AFTER TWO THOUSAND THIRTEEN, THE DOLLAR AMOUNTS IN SUBPARAGRAPH  (A)  OF
PARAGRAPH  TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTIPLIED
BY ONE PLUS THE INFLATION ADJUSTMENT.
  (B) THE INFLATION ADJUSTMENT FOR ANY TAX YEAR SHALL BE THE PERCENTAGE,
IF ANY, BY WHICH THE HIGHER  EDUCATION  PRICE  INDEX  FOR  THE  ACADEMIC
FISCAL  YEAR  ENDING  IN  THE IMMEDIATELY PRECEDING TAX YEAR EXCEEDS THE
HIGHER EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL  YEAR  ENDING  JUNE
TWO  THOUSAND  TWELVE.  FOR  THE  PURPOSES OF THIS PARAGRAPH, THE HIGHER
EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE  INDEX  PUBLISHED
BY THE COMMONFUND INSTITUTE.
  (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPH (A) AND SUBPARAGRAPH
(B)  OF  THIS PARAGRAPH IS NOT A MULTIPLE OF FIVE DOLLARS, SUCH INCREASE
SHALL BE ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.

S. 6259--C                         42

  S 4. This act shall take effect immediately.

                                 PART U

  Section  1.  Paragraph  (a)  of  subdivision  6 of section 18-a of the
public service law, as added by section 4 of part NN of  chapter  59  of
the laws of 2009, is amended to read as follows:
  (a)  Notwithstanding any provision of law to the contrary, and subject
to the exceptions provided for in paragraph (b) of this subdivision, for
the state fiscal year beginning on April first, two  thousand  nine  and
[four]  THREE  state fiscal years thereafter, a temporary annual assess-
ment (hereinafter "temporary state energy and utility service  conserva-
tion assessment") is hereby imposed on public utility companies (includ-
ing  for  the  purposes  of  this  subdivision municipalities other than
municipalities as defined in section  eighty-nine-l  of  this  chapter),
corporations (including for purposes of this subdivision the Long Island
power  authority),  and  persons  subject to the commission's regulation
(hereinafter such public utility companies,  corporations,  and  persons
are referred to collectively as the "utility entities") to encourage the
conservation  of  energy  and  other  resources provided through utility
entities, to be assessed in the manner  provided  in  this  subdivision;
provided,  however, that such assessment shall not be imposed upon tele-
phone corporations as defined in subdivision seventeen of section two of
this article.
  S 2. Section 6 of part NN of chapter 59 of the laws of 2009,  amending
the  public  service law relating to financing operations of the depart-
ment of public service is amended to read as follows:
  S 6. This act shall take effect immediately; provided,  however,  that
subdivision  6  of  section  18-a of the public service law, as added by
section four of this act shall take  effect  April  1,  2009  and  shall
expire  and  be  deemed  repealed  March  31, [2014] 2013; and provided,
further, that if section four of this act shall become law  after  April
1,  2009,  it  shall take effect immediately and shall be deemed to have
been in full force and effect on and after April 1, 2009.
  S 3. Paragraph (g) of subdivision 2 of  section  18-a  of  the  public
service  law,  as  amended  by section 2 of part NN of chapter 59 of the
laws of 2009, is amended to read as follows:
  (g) The total amount which may be charged to any public utility compa-
ny under authority of this subdivision for any state fiscal  year  shall
not  exceed ONE-THIRD OF one per centum of such public utility company's
gross operating revenues derived from intrastate utility  operations  in
the last preceding calendar year, or other twelve month period as deter-
mined  by the chairman; provided, however, that no corporation or person
that is subject to the jurisdiction of the commission only with  respect
to  safety,  or  the  power authority of the state of New York, shall be
subject to the general assessment provided for under this subdivision.
  S 4. This act shall take effect immediately and  shall  be  deemed  to
have  been  in  full  force  and effect on the same date and in the same
manner as part NN of chapter  59  of  the  laws  of  2009  took  effect;
provided that the amendment to paragraph (a) of subdivision 6 of section
18-a of the public service law made by section one of this act shall not
affect  the expiration and repeal of such subdivision 6 and shall expire
and be deemed repealed therewith;  and  provided  further  that  section
three of this act shall take effect April 1, 2013.

                                 PART V

S. 6259--C                         43

  Section 1.  Paragraph (a) of subdivision 1 of section 195 of the labor
law,  as  amended by chapter 564 of the laws of 2010, is amended to read
as follows:
  (a)  provide  his  or  her employees, in writing in English and in the
language identified by each employee as the  primary  language  of  such
employee,  at  the  time  of hiring, [and on or before February first of
each subsequent year of the employee's employment with the employer,]  a
notice  containing  the  following information: the rate or rates of pay
and basis thereof, whether paid by the hour, shift, day,  week,  salary,
piece,  commission, or other; allowances, if any, claimed as part of the
minimum wage, including tip, meal, or lodging  allowances;  the  regular
pay  day  designated  by  the  employer  in  accordance with section one
hundred ninety-one of this article; the name of the employer; any "doing
business as" names used by the employer; the  physical  address  of  the
employer's  main  office  or  principal place of business, and a mailing
address if different; the telephone number of the  employer;  plus  such
other information as the commissioner deems material and necessary. Each
time  the  employer  provides  such  notice to an employee, the employer
shall obtain from the employee a signed and dated  written  acknowledge-
ment, in English and in the primary language of the employee, of receipt
of  this  notice, which the employer shall preserve and maintain for six
years. Such acknowledgement shall include an affirmation by the employee
that the employee accurately identified his or her primary  language  to
the  employer,  and  that  the  notice  provided by the employer to such
employee pursuant to this subdivision was in the language so  identified
or  otherwise complied with paragraph (c) of this subdivision, and shall
conform to any additional requirements established by  the  commissioner
with  regard  to  content and form. For all employees who are not exempt
from overtime compensation as established in the commissioner's  minimum
wage  orders  or otherwise provided by New York state law or regulation,
the notice must state the regular hourly rate and overtime rate of pay;
  S 2. This act shall take effect immediately.

                                 PART W

  Section 1. Short title. This act shall be known and may  be  cited  as
the "honesty in permit processing act".
  S  2.  The  executive  law is amended by adding a new section 164-e to
read as follows:
  S 164-E. LICENSE AND PERMIT APPLICATION PROCESSING; ANNUAL REPORTS. 1.
FOR THE PURPOSES OF THIS SECTION:
  (A) "PERMIT" SHALL MEAN ANY PERMIT, LICENSE, CERTIFICATION,  REGISTRA-
TION  OR  APPROVAL  ISSUED  BY A STATE AGENCY, WHICH IS REQUIRED BY LAW,
RULE OR REGULATION.
  (B) "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, BOARD,  BUREAU,  COMMIS-
SION, DIVISION, AUTHORITY, OFFICE, COUNCIL OR AGENCY OF THE STATE.
  2.  EVERY STATE AGENCY, WHICH PROCESSES AND ISSUES ONE HUNDRED OR MORE
PERMITS DURING A CALENDAR YEAR, SHALL, ON OR BEFORE  FEBRUARY  FIFTEENTH
EACH  YEAR,  ISSUE  AND  PUBLISH  A REPORT ON ITS PERMIT PROCESSING TIME
PERIODS DURING THE PRECEDING CALENDAR YEAR, WHICH SHALL INCLUDE, BUT NOT
BE LIMITED TO:
  (A) THE AVERAGE TIME IT TOOK TO PROCESS APPLICATIONS FOR EACH SPECIFIC
TYPE OF PERMIT FROM THE RECEIPT OF THE APPLICATION  THEREFOR  UNTIL  THE
ISSUANCE OR DENIAL OF SUCH PERMIT; AND
  (B)  THE  SHORTEST  AND  LONGEST PERIODS OF TIME IT TOOK TO PROCESS AN
APPLICATION FOR EACH SPECIFIC TYPE OF PERMIT.

S. 6259--C                         44

  3. THE REPORT REQUIRED BY SUBDIVISION TWO OF  THIS  SECTION  SHALL  BE
SUBMITTED  TO  THE  GOVERNOR  AND  THE LEGISLATURE, AND BE PUBLISHED AND
DISTRIBUTED, IN BOTH WRITTEN AND ELECTRONIC FORMS,  FOR  ACCESS  BY  THE
PUBLIC. EACH STATE AGENCY SHALL POST, ON ITS INTERNET HOMEPAGE, THE MOST
RECENT REPORT IT HAS ISSUED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  4.  THE  INFORMATION  COMPILED  PURSUANT  TO  SUBDIVISION  TWO OF THIS
SECTION, FOR EACH SPECIFIC PERMIT SHALL BE PRINTED ON THE COVER PAGE  OF
THE APPLICATION FOR SUCH PERMIT.
  5.  EACH  STATE AGENCY SHALL ANNUALLY PROCESS APPLICATIONS FOR PERMITS
WITHIN A TIME PERIOD WHICH IS EQUAL TO OR LESS THAN ONE HUNDRED  THIRTY-
FOUR  PERCENT OF THE AVERAGE TIME PERIOD FOR PROCESSING APPLICATIONS FOR
THAT TYPE OF PERMIT DURING THE PRECEDING CALENDAR YEAR.  IN ANY INSTANCE
IN WHICH A STATE AGENCY FAILS TO PROCESS AN APPLICATION WITHIN SUCH TIME
PERIOD, SUCH AGENCY SHALL IMMEDIATELY REFUND TO THE PERMIT APPLICANT ALL
CHARGES AND FEES IMPOSED AS A CONDITION OF SUBMITTING SUCH PERMIT APPLI-
CATION.
  S 3. This act shall take effect on the first of April next  succeeding
the date on which it shall have become a law.

                                 PART X

  Section 1. Paragraph (a) of subdivision 12-G of section 210 of the tax
law,  as  amended  by section 1-a of part A of chapter 63 of the laws of
2005, is amended to read as follows:
  (a) A taxpayer that is a qualified emerging technology company  pursu-
ant  to the provisions of section thirty-one hundred two-e [(and specif-
ically for the activities referenced in paragraph (b) of subdivision one
of such section thirty-one hundred two-e)]  of  the  public  authorities
law,  and  that  meets  the eligibility requirements in paragraph (b) of
this subdivision, shall be allowed a credit against the tax  imposed  by
this  article.  The  amount  of  credit shall be equal to the sum of the
amounts specified in paragraphs (c), (d), and (e)  of  this  subdivision
subject to the limitations in paragraph (f) of this subdivision.
  S  2. Paragraph (h) of subdivision 12-G of section 210 of the tax law,
as amended by section 1-a of part A of chapter 63 of the laws  of  2005,
is amended to read as follows:
  (h)  The credit allowed under this subdivision shall not be applicable
for taxable years beginning on or  after  January  first,  two  thousand
[twelve] THIRTEEN.
  S  3. Paragraph 1 of subsection (nn) of section 606 of the tax law, as
amended by section 1-a of part A of chapter 63 of the laws of  2005,  is
amended to read as follows:
  (1)  A taxpayer that is a qualified emerging technology company pursu-
ant to the provisions of section thirty-one hundred two-e [(and  specif-
ically for the activities referenced in paragraph (b) of subdivision one
of  such  section  thirty-one  hundred two-e)] of the public authorities
law, and that meets the eligibility requirements  in  paragraph  two  of
this  subsection,  shall  be allowed a credit against the tax imposed by
this article. The amount of credit shall be equal to  the  sum  (or  pro
rata share of the sum in the case of a partnership) of the amounts spec-
ified in paragraphs three, four, and five of this subsection, subject to
the limitations in paragraph six of this subsection.
  S  4. Paragraph 8 of subsection (nn) of section 606 of the tax law, as
amended by section 1-a of part A of chapter 63 of the laws of  2005,  is
amended to read as follows:

S. 6259--C                         45

  (8)  The  credit allowed under this subsection shall not be applicable
for taxable years beginning on or  after  January  first,  two  thousand
[twelve] THIRTEEN.
  S  5.  This act shall take effect immediately, provided, however, that
sections one and three of this act shall apply to tax years beginning on
or after January 1, 2006.

                                 PART Y

  Section 1. Subdivision (e) of section 15 of the tax law, as separately
amended by section 19 of part W of chapter 56 and section 13 of  part  R
of chapter 57 of the laws of 2010, is amended to read as follows:
  (e)  Eligible  real  property  taxes. The term "eligible real property
taxes" means taxes imposed on real property which is owned by  the  QEZE
and  located  in an empire zone with respect to which the QEZE is certi-
fied pursuant to  article  eighteen-B  of  the  general  municipal  law,
provided  such taxes are paid by the QEZE which is the owner of the real
property or are paid by a tenant which either  (i)  does  not  meet  the
eligibility  requirements under section fourteen of this article to be a
QEZE or (ii) cannot treat such payment as eligible real  property  taxes
pursuant  to  this  paragraph  and  such taxes become a lien on the real
property during a taxable year in which the owner of the  real  property
is  both certified pursuant to article eighteen-B of the general munici-
pal law and a qualified empire zone enterprise.   For purposes  of  this
subdivision, the term "tax" means a charge imposed upon real property by
or  on  behalf  of  a county, city, town, village or school district for
municipal or school district  purposes,  provided  that  the  charge  is
levied  for  the general public welfare by the proper taxing authorities
at a like rate against all property in the  territory  over  which  such
authorities  have jurisdiction, and provided that where taxes are levied
pursuant to article eighteen or article nineteen of  the  real  property
tax  law,  the  property must have been taxed at the rate determined for
the class in which it is contained, as provided by such article eighteen
or nineteen, whichever is applicable. The term "tax" does not include  a
charge  for local benefits, including any portion of that charge that is
properly allocated to the costs attributable to maintenance or interest,
when (1) the property subject to the charge is limited to  the  property
that benefits from the charge, or (2) the amount of the charge is deter-
mined  by  the  benefit to the property assessed, or (3) the improvement
for which the charge is assessed tends to increase the  property  value.
In  addition, "eligible real property taxes" shall include taxes paid by
a QEZE which is a lessee of real property if  the  following  conditions
are  satisfied:    (1)  the taxes must be paid by the lessee pursuant to
explicit requirements in a written lease executed or amended on or after
June first, two thousand five, (2) such taxes become a lien on the  real
property  during a taxable year in which the lessee of the real property
is both certified pursuant to article eighteen-B of the general  munici-
pal  law  and a qualified empire zone enterprise, and (3) the lessee has
made direct payment of such  taxes  to  the  taxing  authority  and  has
received  a receipt for such payment of taxes from the taxing authority.
In addition, the term "eligible real property taxes"  includes  payments
in  lieu of taxes made by the QEZE to the state, a municipal corporation
or a public benefit corporation pursuant to a written agreement  entered
into  between  the  QEZE and the state, municipal corporation, or public
benefit corporation.   IN ADDITION, THE  TERM  "ELIGIBLE  REAL  PROPERTY
TAXES"  SHALL  INCLUDE PAYMENTS IN LIEU OF TAXES MADE BY A QEZE, WHERE A

S. 6259--C                         46

QEZE IS NOT THE OWNER OF THE LAND AND NOT A PARTY TO THE PAYMENT IN LIEU
OF TAXES AGREEMENT, UNDER THE FOLLOWING CONDITIONS: (A) THE PAYMENTS  IN
LIEU  OF  TAXES  MUST  BE  PAID  EITHER: (I) BY THE LESSEE TO THE LESSOR
PURSUANT  TO  REQUIREMENTS  IN  A WRITTEN LEASE; OR (II) DIRECTLY TO THE
COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT BY THE QEZE TO SATISFY  A
PAYMENT  IN  LIEU OF TAXES AGREEMENT TO WHICH THE LESSOR IS A PARTY; AND
(B) NO OTHER TAXPAYER HAS BEEN GRANTED CREDITS UNDER  THIS  SECTION  FOR
THE  SAME REAL PROPERTY TAXES PAID. Provided, however, a payment in lieu
of taxes made by the QEZE pursuant to a written  agreement  executed  or
amended  on  or after January first, two thousand one, shall not consti-
tute eligible real property taxes in any taxable year to the extent that
such payment exceeds the product of (A) the greater of (i) the basis for
federal income tax purposes, calculated without regard to  depreciation,
determined as of the effective date of the QEZE's certification pursuant
to  article  eighteen-B  of  the general municipal law of real property,
including buildings and structural components of buildings, owned by the
QEZE and located in empire zones with  respect  to  which  the  QEZE  is
certified  pursuant  to such article eighteen-B of the general municipal
law, and provided that if such basis  is  further  adjusted  or  reduced
pursuant  to  any  provision  of the internal revenue code, the QEZE may
petition the department and the department of  economic  development  to
disregard  such reduction or adjustment for the purpose of this subdivi-
sion or (ii) the basis for federal income  tax  purposes  of  such  real
property  described in clause (i) of this subparagraph, calculated with-
out regard to depreciation, on the last day of  the  taxable  year,  and
provided  that  if such basis is further adjusted or reduced pursuant to
any provision of the internal revenue code, the QEZE  may  petition  the
department,  the  department  of  economic development and the office of
real property services to disregard such reduction or adjustment for the
purpose of this subdivision; and (B) the estimated effective full  value
tax  rate  within  the county in which such property is located, as most
recently calculated by the commissioner. The commissioner shall annually
calculate estimated effective full value tax rates  within  each  county
for  this  purpose  based upon the most current information available to
him or her in  relation  to  county,  city,  town,  village  and  school
district taxes.
  S  2.  The  provisions  of this act shall only apply to taxpayers that
claimed the credit under section 15 of the tax  law  for  any  tax  year
beginning  after  January  1,  2006  and before January 1, 2011 and were
subsequently denied the credit in any of those tax years.
  S 3. This act shall take effect immediately and  shall  apply  to  tax
years  beginning  on  or  after  January 1, 2006 but shall not alter any
taxpayer's benefit period.

                                 PART Z

  Section 1. Subparagraph (B)  of  paragraph  1  of  subsection  (b)  of
section  605  of  the  tax  law, as amended by chapter 28 of the laws of
1987, is amended to read as follows:
  (B) who is not domiciled in this state but maintains a permanent place
of abode in this state and spends in the aggregate more than one hundred
eighty-three days of the taxable year in this state, unless  such  indi-
vidual  is  in  active service in the armed forces of the United States.
FOR PURPOSES OF THIS SUBPARAGRAPH, A PERMANENT PLACE OF ABODE SHALL  NOT
INCLUDE  A DWELLING THAT IS OWNED, LEASED, OR MAINTAINED BY THE INDIVID-
UAL OR THE INDIVIDUAL'S SPOUSE WHERE SUCH DWELLING IS NOT  USED  AS  THE

S. 6259--C                         47

INDIVIDUAL'S  PRINCIPAL  RESIDENCE AND THE INDIVIDUAL STAYS OVERNIGHT AT
SUCH DWELLING FOR NO MORE THAN NINETY DAYS DURING THE TAXABLE YEAR.
  S 2. This act shall take effect immediately and shall be applicable to
all open tax years.

                                 PART AA

  Section 1. The civil practice law and rules is amended by adding a new
section 5519-a to read as follows:
  S  5519-A.  STAY  OF ENFORCEMENT FOR TOBACCO PRODUCT MASTER SETTLEMENT
AGREEMENT PARTICIPATING  OR  NON-PARTICIPATING  MANUFACTURERS  OR  THEIR
SUCCESSORS OR AFFILIATES. (A) IN CIVIL LITIGATION UNDER ANY LEGAL THEORY
INVOLVING  A  PARTICIPATING MANUFACTURER OR A NON-PARTICIPATING MANUFAC-
TURER, AS THOSE TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR
ANY OF THEIR SUCCESSORS OR AFFILIATES, THE UNDERTAKING  REQUIRED  DURING
THE  PENDENCY  OF  ALL APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE
COURTS IN ORDER TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER  GRANTING
LEGAL,  EQUITABLE  OR OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE
REVIEW, INCLUDING REVIEW BY THE UNITED STATES SUPREME  COURT,  SHALL  BE
SET  PURSUANT  TO  THE  APPLICABLE  PROVISIONS  OF  LAW  OR COURT RULES;
PROVIDED, HOWEVER THAT THE TOTAL UNDERTAKING REQUIRED OF ALL  APPELLANTS
COLLECTIVELY SHALL NOT EXCEED ONE HUNDRED MILLION DOLLARS, REGARDLESS OF
THE VALUE OF THE JUDGMENT APPEALED.
  (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
UPON  PROOF  BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE, THAT AN
APPELLANT IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY  BUSINESS
TO  AVOID  PAYMENT  OF  A JUDGMENT, A COURT MAY REQUIRE THE APPELLANT TO
POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have  become a law, and shall apply to any cause of action pending on or
filed on or after such effective date.

                                 PART BB

  Section 1. Short title. This act shall be known and may  be  cited  as
the "economic development liaison act".
  S  2.  The  tax law is amended by adding a new section 3014 to read as
follows:
  S 3014. OFFICE OF NEW YORK IS OPEN FOR BUSINESS. (A)  THERE  SHALL  BE
ESTABLISHED  IN  THE  DEPARTMENT AN OFFICE TO BE KNOWN AS THE "OFFICE OF
NEW YORK IS OPEN FOR BUSINESS". SUCH OFFICE SHALL BE  UNDER  THE  SUPER-
VISION  AND  DIRECTION OF AN OFFICIAL KNOWN AS THE "ECONOMIC DEVELOPMENT
LIAISON". THE ECONOMIC DEVELOPMENT LIAISON SHALL  BE  APPOINTED  BY  THE
GOVERNOR  BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. THE ECONOMIC
DEVELOPMENT LIAISON SHALL REPORT DIRECTLY TO THE COMMISSIONER OF ECONOM-
IC DEVELOPMENT. THE ECONOMIC DEVELOPMENT LIAISON SHALL DEVOTE HIS OR HER
ENTIRE TIME TO THE DUTIES OF SUCH OFFICE.
  (B) NO PERSON SHALL BE APPOINTED AS AN  ECONOMIC  DEVELOPMENT  LIAISON
UNLESS  AT  THE TIME OF SUCH PERSON'S APPOINTMENT SUCH PERSON IS A RESI-
DENT OF THE STATE AND IS KNOWLEDGEABLE ON THE SUBJECT OF TAXATION AND IS
SKILLFUL IN MATTERS PERTAINING THERETO. ONCE  APPOINTED  AND  CONFIRMED,
THE  ECONOMIC  DEVELOPMENT  LIAISON  SHALL CONTINUE IN OFFICE UNTIL SUCH
PERSON'S TERM  EXPIRES  AND  UNTIL  SUCH  PERSON'S  SUCCESSOR  HAS  BEEN
APPOINTED AND HAS QUALIFIED. THE TERM OF OFFICE SHALL BE FOUR YEARS.
  (C)  ANY  ECONOMIC  DEVELOPMENT LIAISON MAY BE REMOVED BY THE GOVERNOR
FOR CAUSE AFTER AN OPPORTUNITY TO BE HEARD. A STATEMENT OF THE CAUSE  OF

S. 6259--C                         48

SUCH  PERSON'S  REMOVAL SHALL BE FILED BY THE GOVERNOR IN  THE OFFICE OF
THE SECRETARY OF STATE.
  (D)  IN  THE  EVENT  OF  A  VACANCY  CAUSED BY THE DEATH, RESIGNATION,
REMOVAL OR DISABILITY OF THE ECONOMIC DEVELOPMENT LIAISON,  THE  VACANCY
SHALL  BE  FILLED  BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF
THE SENATE FOR THE UNEXPIRED TERM.
  (E)(1) THE OFFICE OF NEW YORK IS OPEN  FOR  BUSINESS  SHALL  HAVE  THE
FOLLOWING FUNCTIONS, POWERS AND DUTIES:
  (I) TO ASSIST BUSINESS TAXPAYERS, WHO ARE APPLYING FOR ECONOMIC DEVEL-
OPMENT TAX CREDITS, IN RESOLVING PROBLEMS WITH THE DEPARTMENT;
  (II)  TO  IDENTIFY  AREAS  IN  WHICH BUSINESS TAXPAYERS, WHO APPLY FOR
ECONOMIC DEVELOPMENT TAX CREDITS, ARE HAVING PROBLEMS  IN  DEALING  WITH
THE DEPARTMENT;
  (III)  TO PROPOSE SOLUTIONS, INCLUDING ADMINISTRATIVE CHANGES TO PRAC-
TICES AND PROCEDURES OF THE DEPARTMENT PERTAINING TO  ECONOMIC  DEVELOP-
MENT TAX CREDITS;
  (IV)  TO RECOMMEND LEGISLATIVE ACTION AS MAY BE APPROPRIATE TO RESOLVE
PROBLEMS ENCOUNTERED BY BUSINESS TAXPAYERS APPLYING ECONOMIC DEVELOPMENT
TAX CREDITS;
  (V) TO PRESERVE AND PROMOTE THE RIGHTS OF THE TAXPAYER;
  (VI) TO PROMOTE OPEN AND DIRECT COMMUNICATIONS  BETWEEN  TAXATION  AND
FINANCE AND ECONOMIC DEVELOPMENT; AND
  (VII) TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE FOR THE
PERFORMANCE OF ITS DUTIES.
  (2)  THE  ECONOMIC DEVELOPMENT LIAISON SHALL  PREPARE AN ANNUAL REPORT
AS TO THE ACTIVITIES OF THE ECONOMIC DEVELOPMENT  LIAISON.  SUCH  REPORT
SHALL  BE  SUBMITTED  TO  THE  GOVERNOR,  THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY AND THE COMMISSIONER NO  LATER  THAN
THE  THIRTY-FIRST  DAY  OF  DECEMBER COMMENCING IN THE YEAR TWO THOUSAND
TWELVE AND EVERY YEAR THEREAFTER. ANY SUCH REPORT SHALL CONTAIN FULL AND
SUBSTANTIVE ANALYSIS, IN ADDITION TO STATISTICAL INFORMATION, AND SHALL:
  (I) IDENTIFY THE INITIATIVES  THE  ECONOMIC  DEVELOPMENT  LIAISON  HAS
TAKEN  ON  IMPROVING  BUSINESS  TAXPAYER  SERVICES  AND THE DEPARTMENT'S
RESPONSIVENESS;
  (II) CONTAIN A SUMMARY OF AT LEAST FIFTEEN OF THE MOST  SERIOUS  PROB-
LEMS  ENCOUNTERED BY TAXPAYERS, INCLUDING A DESCRIPTION OF THE NATURE OF
SUCH PROBLEMS;
  (III) CONTAIN AN INVENTORY OF THE ITEMS DESCRIBED IN SUBPARAGRAPHS (I)
AND (II) OF THIS PARAGRAPH FOR WHICH  ACTION  HAS  BEEN  TAKEN  AND  THE
RESULT  OF  SUCH  ACTION;  AN  INVENTORY  FOR WHICH ACTION REMAINS TO BE
COMPLETED; AND AN INVENTORY FOR WHICH NO ACTION HAS BEEN TAKEN  AND  THE
REASONS FOR THE INACTION;
  (IV)  CONTAIN  RECOMMENDATIONS FOR SUCH ADMINISTRATIVE AND LEGISLATIVE
ACTION AS MAY BE APPROPRIATE TO RESOLVE PROBLEMS ENCOUNTERED BY  TAXPAY-
ERS; AND
  (V) INCLUDE SUCH OTHER INFORMATION AS THE ECONOMIC DEVELOPMENT LIAISON
MAY DEEM ADVISABLE.
  (F)  NOTWITHSTANDING  ANY PROVISION OF THIS CHAPTER, THE OFFICE OF NEW
YORK IS OPEN FOR BUSINESS, THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT  AND
THE DEPARTMENT OF TAXATION AND FINANCE SHALL BE ALLOWED AND ARE DIRECTED
TO  SHARE  AND EXCHANGE INFORMATION REGARDING BUSINESS ECONOMIC DEVELOP-
MENT CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS  ARTICLE,
INCLUDING  INFORMATION  CONTAINED  IN OR DERIVED FROM CREDIT CLAIM FORMS
SUBMITTED TO THE DEPARTMENT OF TAXATION AND FINANCE.
  S 3. Subdivisions 1, 3 and 4 of section 170 of the tax  law,  subdivi-
sions 1 and 3 as amended by chapter 282 of the laws of 1986 and subdivi-

S. 6259--C                         49

sion  4  as  amended  by chapter 283 of the laws of 1986, are amended to
read as follows:
  1.  The  existing  department  of taxation and finance and its present
functions are continued. The head of  the  department  of  taxation  and
finance shall be the commissioner of taxation and finance who shall have
sole  charge of the administration of such department except with regard
to the administration of the division of tax appeals which shall be  the
sole  charge  of the tax appeals tribunal authorized by article forty of
this chapter AND THE OFFICE OF NEW YORK IS OPEN FOR BUSINESS  AUTHORIZED
BY  SECTION  THREE  THOUSAND FOURTEEN OF THIS CHAPTER.  The commissioner
[of taxation and finance] shall be appointed by the governor by and with
the advice and consent of the senate and shall hold  office  as  commis-
sioner [of taxation and finance] until the end of the term of the gover-
nor  by whom he was appointed and until his successor has been appointed
and has qualified.
  3. The commissioner [of taxation and finance] may establish such addi-
tional divisions and bureaus as he may deem necessary.  He  may  appoint
the  heads of such divisions and bureaus and fix their duties and he may
consolidate, alter or abolish any divisions or bureaus, except that such
commissioner shall have no such authority or power with  regard  to  the
division of tax appeals AND THE OFFICE OF NEW YORK IS OPEN FOR BUSINESS.
  4.  The  commissioner [of taxation and finance] may appoint and remove
such officers, assistants and other employees as he may  deem  necessary
for the exercise of the powers and duties of the department, all of whom
shall  be  in  the classified civil service unless otherwise provided by
law; and he may prescribe their duties, and fix their compensation with-
in the amounts appropriated therefor. The commissioner [of taxation  and
finance]  may  transfer  officers  or  employees from their positions to
other positions in the department, or abolish or consolidate such  posi-
tions.  He  shall  have  all  powers  necessary  to  perform  the duties
conferred upon him regarding the state  lottery  authorized  by  article
thirty-four  of this chapter. However, the commissioner [of taxation and
finance] shall have no power to appoint or remove any personnel  of  the
division  of  tax appeals OR OF THE OFFICE OF NEW YORK IS OPEN FOR BUSI-
NESS nor shall such commissioner have any power or authority with regard
to the operation and administration of such division OR OFFICE including
any power or authority over such division's OR  OFFICE'S  budget.    The
commissioner shall furnish to the director of the division of the budget
the  itemized  estimates  of  the financial needs of the division of tax
appeals AND THE OFFICE OF NEW YORK IS OPEN FOR BUSINESS prepared by  the
tax  appeals  tribunal  AND THE OFFICE OF NEW YORK IS OPEN FOR BUSINESS.
Such itemized estimates may not be revised or altered in any  manner  by
the commissioner.
  S 4. This act shall take effect immediately.

                                 PART CC

  Section 1. Paragraph 1 of subsection (e) of section 7709 of the insur-
ance  law,  as  added  by chapter 802 of the laws of 1985, is amended to
read as follows:
  (1) The total assessment against all member insurers for  all  impair-
ments and insolvencies, less the amount of refunds (not including inter-
est)  to  member  insurers  pursuant  to subsection (f) of this section,
shall not exceed five hundred SEVENTY-FIVE million dollars.
  S 2. This act shall take effect immediately.

S. 6259--C                         50

                                 PART DD

  Section  1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 39 to read as follows:
  (39) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  ELEVEN  THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENEFITS
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-
IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
INCOME PURSUANT TO PARAGRAPH FIVE  OF  SUBSECTION  (A)  OF  SECTION  ONE
HUNDRED  THIRTY-TWO  OF THE INTERNAL REVENUE CODE HAD THE FLUSH SENTENCE
OF PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO  OF
THE  INTERNAL  REVENUE CODE THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST,
TWO THOUSAND ELEVEN CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN; PROVIDED, HOWEVER, THAT IF SUBPARAGRAPH  (A)  OF  PARA-
GRAPH  TWO  OF  SUBSECTION  (F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE
INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
IN EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR  AMOUNT
IN  EFFECT  UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO FOR THE SAME MONTH, THE FLUSH SENTENCE OF
PARAGRAPH TWO THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO  THOUSAND
ELEVEN  SHALL  BE DEEMED TO PROVIDE THAT THE DOLLAR AMOUNT IN EFFECT FOR
SUBPARAGRAPH (B) SHALL BE APPLIED AS IF THE DOLLAR AMOUNT  THEREIN  WERE
THE  SAME  AS  THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUBPARA-
GRAPH (A). NOTWITHSTANDING THE FOREGOING, IF,  PURSUANT  TO  THIS  PARA-
GRAPH,  THE  AMOUNT THAT WOULD BE IN EFFECT FOR ANY MONTH UNDER SUBPARA-
GRAPH (A) OR (B) OF PARAGRAPH TWO  OF  SUBSECTION  (F)  OF  SECTION  ONE
HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IS LESS THAN ONE HUNDRED
SEVENTY-FIVE  DOLLARS,  SUBPARAGRAPHS (A) AND (B) SHALL BE APPLIED AS IF
THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH UNDER SUCH SUBPARAGRAPHS  WAS
ONE HUNDRED SEVENTY-FIVE DOLLARS.
  S 2. This act shall take effect immediately.

                                 PART EE

  Section  1.  Subparagraph  (A)  of  paragraph  1 of subsection (oo) of
section 606 of the tax law, as amended by chapter 472  of  the  laws  of
2010, is amended to read as follows:
  (A)  For  taxable years beginning on or after January first, two thou-
sand ten and before January first,  two  thousand  fifteen,  a  taxpayer
shall  be  allowed  a  credit  as  hereinafter provided, against the tax
imposed by this article, in an amount equal to one  hundred  percent  of
the  amount  of  credit allowed the taxpayer with respect to a certified
historic structure under subsection (a) (2) of section 47 of the federal
internal revenue code with respect to  a  certified  historic  structure
located within the state. Provided, however, the credit shall not exceed
[five]  TWELVE  million dollars. For taxable years beginning on or after
January first, two thousand fifteen, a taxpayer shall be allowed a cred-
it as hereinafter provided, against the tax imposed by this article,  in
an  amount  equal  to thirty percent of the amount of credit allowed the
taxpayer with respect to a certified historic structure under subsection
(a)(2) of section 47 of the federal internal revenue code  with  respect
to  a  certified  historic structure located within the state; provided,
however, the credit shall not exceed one hundred thousand dollars.
  S 2. Subparagraph (A) of paragraph 1 of subdivision 40 of section  210
of  the  tax  law,  as  amended  by  chapter 472 of the laws of 2010, is
amended to read as follows:

S. 6259--C                         51

  (A) For taxable years beginning on or after January first,  two  thou-
sand  ten  and  before  January  first, two thousand fifteen, a taxpayer
shall be allowed a credit  as  hereinafter  provided,  against  the  tax
imposed  by  this  article, in an amount equal to one hundred percent of
the  amount  of  credit allowed the taxpayer with respect to a certified
historic structure under subsection (a) (2) of section 47 of the federal
internal revenue code with respect to  a  certified  historic  structure
located within the state. Provided, however, the credit shall not exceed
[five]  TWELVE  million dollars. For taxable years beginning on or after
January first, two thousand fifteen, a taxpayer shall be allowed a cred-
it as hereinafter provided, against the tax imposed by this article,  in
an  amount  equal  to thirty percent of the amount of credit allowed the
taxpayer with respect to a certified historic structure under subsection
(a)(2) of section 47 of the federal internal revenue code  with  respect
to  a  certified  historic structure located within the state. Provided,
however, the credit shall not exceed one hundred thousand dollars.
  S 3. Subparagraph (A) of paragraph 1 of subsection (u) of section 1456
of the tax law, as added by chapter 472 of the laws of 2010, is  amended
to read as follows:
  (A)  For  taxable years beginning on or after January first, two thou-
sand ten and before January first,  two  thousand  fifteen,  a  taxpayer
shall  be  allowed  a  credit  as  hereinafter provided, against the tax
imposed by this article, in an amount equal to one  hundred  percent  of
the  amount  of  credit allowed the taxpayer with respect to a certified
historic structure under subsection (a)(2) of section 47 of the  federal
internal  revenue  code  with  respect to a certified historic structure
located within the state. Provided, however, the credit shall not exceed
[five] TWELVE million dollars. For taxable years beginning on  or  after
January first, two thousand fifteen, a taxpayer shall be allowed a cred-
it  as hereinafter provided, against the tax imposed by this article, in
an amount equal to thirty percent of the amount of  credit  allowed  the
taxpayer with respect to a certified historic structure under subsection
(a)(2)  of  section 47 of the federal internal revenue code with respect
to a certified historic structure located within  the  state.  Provided,
however, the credit shall not exceed one hundred thousand dollars.
  S  4.  Subparagraph (A) of paragraph (1) of subdivision (y) of section
1511 of the tax law, as added by chapter 472 of the  laws  of  2010,  is
amended to read as follows:
  (A)  For  taxable years beginning on or after January first, two thou-
sand ten and before January first,  two  thousand  fifteen,  a  taxpayer
shall  be  allowed  a  credit  as  hereinafter provided, against the tax
imposed by this article, in an amount equal to one  hundred  percent  of
the  amount  of  credit allowed the taxpayer with respect to a certified
historic structure under subsection (a)(2) of section 47 of the  federal
internal  revenue  code  with  respect to a certified historic structure
located within the state. Provided, however, the credit shall not exceed
[five] TWELVE million dollars. For taxable years beginning on  or  after
January first, two thousand fifteen, a taxpayer shall be allowed a cred-
it  as hereinafter provided, against the tax imposed by this article, in
an amount equal to thirty percent of the amount of  credit  allowed  the
taxpayer with respect to a certified historic structure under subsection
(a)(2)  of  section 47 of the federal internal revenue code with respect
to a certified historic structure located within  the  state.  Provided,
however, the credit shall not exceed one hundred thousand dollars.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2012.

S. 6259--C                         52

                                 PART FF

  Section  1.  Paragraph 1 of subdivision (a) of section 1115 of the tax
law, as amended by section 1 of part O of chapter  63  of  the  laws  of
2000, is amended to read as follows:
  (1)  Food,  food products, beverages, dietary foods and health supple-
ments, sold for human  consumption  but  not  including  (i)  candy  and
confectionery, (ii) fruit drinks which contain less than seventy percent
of  natural  fruit juice, (iii) soft drinks, sodas and beverages such as
are ordinarily dispensed at soda fountains or  in  connection  therewith
(other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
ic  beverages,  all  of  which  shall be subject to the retail sales and
compensating use taxes, whether or not the item is sold in liquid  form.
The  food  and  drink excluded from the exemption provided by this para-
graph under subparagraphs (i), (ii) and (iii) of this paragraph shall be
exempt under this paragraph  when  sold  for  [seventy-five  cents]  ONE
DOLLAR  AND FIFTY CENTS or less through any vending machine activated by
the use of coin, currency, credit card or debit card. With the exception
of the provision in  this  paragraph  providing  for  an  exemption  for
certain food or drink sold for [seventy-five cents] ONE DOLLAR AND FIFTY
CENTS  or  less  through  vending  machines,  nothing  herein  shall  be
construed as exempting food or drink from the tax imposed under subdivi-
sion (d) of section eleven hundred five OF THIS ARTICLE.
  S 2. This act shall take effect January 1, 2013.

                                 PART GG

  Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of  the
tax law, paragraph 3 as amended and paragraph 4 as added by section 1 of
part  B of chapter 56 of the laws of 2011, are amended and two new para-
graphs 5 and 6 are added to read as follows:
  (3) an interstate agency or public corporation created pursuant to  an
agreement or compact with another state or the Dominion of Canada; [or]
  (4)  [Any]  ANY  eligible educational institution. An "eligible educa-
tional institution" shall mean any public school district,  a  board  of
cooperative  educational  services,  a  public  elementary  or secondary
school, a school approved pursuant to article eighty-five or eighty-nine
of the education law to serve students with disabilities of school  age,
or  a nonpublic elementary or secondary school that provides instruction
in grade one or above[.];
  (5) ANY PUBLIC OR FREE ASSOCIATION LIBRARY AS DEFINED  IN  SUBDIVISION
TWO  OF  SECTION TWO HUNDRED FIFTY-THREE OF THE EDUCATION LAW OR LIBRARY
SYSTEM AS DEFINED IN SECTION TWO HUNDRED SEVENTY-TWO  OF  THE  EDUCATION
LAW; OR
  (6) ANY TOWN OR VILLAGE.
  S  2.  This  act  shall  take  effect on the same date and in the same
manner as section 1 of part B of chapter 56 of the laws  of  2011  takes
effect.

                                 PART HH

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (uu) to read as follows:
  (UU) TAX CREDIT FOR VICTIMS OF HURRICANE IRENE AND TROPICAL STORM LEE.
(1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT FOR  TAXA-

S. 6259--C                         53

BLE  YEAR  TWO  THOUSAND TWELVE, TO BE COMPUTED AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  AMOUNT  OF CREDIT. (A) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
THE AMOUNT OF SCHOOL TAXES PAID FOR THE TWO THOUSAND ELEVEN-TWO THOUSAND
TWELVE SCHOOL YEAR AND THE AMOUNT OF ANY CITY, VILLAGE, TOWN AND  COUNTY
TAXES PAID IN TAXABLE YEAR TWO THOUSAND TWELVE WITH RESPECT TO ANY PROP-
ERTY WHICH RECEIVED SUBSTANTIAL DAMAGE AS A RESULT OF HURRICANE IRENE OR
TROPICAL STORM LEE IN TWO THOUSAND ELEVEN.
  (B)  FOR  PURPOSES  OF  THIS SUBSECTION, THE TERM "SUBSTANTIAL DAMAGE"
MEANS DAMAGE OF ANY ORIGIN SUSTAINED BY A STRUCTURE WHEREBY THE COST  OF
RESTORING  THE  STRUCTURE TO ITS BEFORE DAMAGED CONDITION WOULD EQUAL OR
EXCEED FIFTY PERCENT OF THE MARKET VALUE OF  THE  STRUCTURE  BEFORE  THE
DAMAGE OCCURRED.
  (3)  ELIGIBILITY.  (A)  THE  CREDIT  SHALL  ONLY  BE ALLOWED WHERE THE
AFFECTED PROPERTY IS LOCATED  IN  A  COUNTY  IN  THIS  STATE  WHICH  WAS
DECLARED  A FEDERAL DISASTER AREA AND IS ELIGIBLE TO RECEIVE FEDERAL AID
OR ASSISTANCE FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS  A  RESULT
OF HURRICANE IRENE OR TROPICAL STORM LEE IN TWO THOUSAND ELEVEN.
  (B)  THE  CREDIT  UNDER  THIS  SUBSECTION SHALL ONLY BE ALLOWED IF THE
PROPERTY IS CONSIDERED THE TAXPAYER'S PRIMARY RESIDENCE.
  (4) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER  THIS
SUBSECTION  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, THAT NO INTEREST SHALL BE PAID THEREON.
  S 2. This act shall take effect immediately.

                                 PART II

  Section  1.  Subdivisions 2, 3, 4, 5 and 6 of section 4 of chapter 912
of the laws of 1920 relating to the regulation of boxing,  sparring  and
wrestling, subdivisions 2 and 6 as amended by chapter 437 of the laws of
2002  and subdivisions 3, 4 and 5 as added by chapter 603 of the laws of
1981, are amended to read as follows:
  2. The advisory board shall have power and it shall be the duty of the
board to prepare and submit to the commission for  approval  regulations
and  standards  for  the physical examination of professional boxers AND
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS  including,  without  limita-
tion,  pre-fight  and/or post-fight examinations and periodic comprehen-
sive examinations. The board shall continue  to  serve  in  an  advisory
capacity  to  the commission and from time to time prepare and submit to
the commission for approval, such additional regulations  and  standards
of  examination as in their judgment will safeguard the physical welfare
of professional boxers licensed by the commission.  The  advisory  board
shall  recommend  to  the  commission  from  time to time such qualified
physicians, for the  purpose  of  conducting  physical  examinations  of
professional  boxers  AND PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS and
other services as the rules of the commission shall provide;  and  shall
recommend  to the commission a schedule of fees to be paid to physicians
for such examinations and other services as required by this act.
  3. The advisory board  shall  develop  appropriate  medical  education
programs  for all commission personnel involved in the conduct of boxing
and sparring matches or exhibitions  OR  PROFESSIONAL  COMBATIVE  SPORTS
MATCHES OR EXHIBITIONS so that such personnel can recognize and act upon
evidence of potential or actual adverse medical indications in a partic-
ipant prior to or during the course of a match OR EXHIBITION.

S. 6259--C                         54

  4.  The advisory board shall review the credentials and performance of
each commission physician on an annual basis as  a  condition  of  reap-
pointment  of  each  such  physician,  including  each  such physician's
comprehension of the medical literature on boxing OR PROFESSIONAL COMBA-
TIVE SPORTS referred to in subdivision five of this section.
  5.  The advisory board shall recommend to the commission a compilation
of medical publications on the medical aspects of boxing OR PROFESSIONAL
COMBATIVE SPORTS which shall be maintained by the commission and be made
available for review to all commission personnel involved in the conduct
of any boxing or sparring match or exhibition OR PROFESSIONAL  COMBATIVE
SPORTS MATCH OR EXHIBITION.
  6. The advisory board shall also advise the commission on any study of
equipment, procedures or personnel which will, in their opinion, promote
the  safety  of  boxing  participants  AND PROFESSIONAL COMBATIVE SPORTS
PARTICIPANTS.
  S 2. Section 5-a of chapter 912 of the laws of 1920  relating  to  the
regulation  of boxing, sparring and wrestling, as added by chapter 14 of
the laws of 1997, is amended to read as follows:
  S 5-a. Combative sports. 1. DEFINITIONS. AS USED IN THIS SECTION:
  (A) "BOARD" MEANS MEDICAL ADVISORY BOARD  AS  ESTABLISHED  IN  SECTION
FOUR OF THIS ACT.
  (B)  A  "combative sport" shall mean any professional match or exhibi-
tion other than boxing, sparring, wrestling or martial arts wherein  the
contestants deliver, or are not forbidden by the applicable rules there-
of from delivering kicks, punches or blows of any kind to the body of an
opponent  or  opponents.  For  the  purposes  of  this section, the term
"martial arts" shall include any professional match or exhibition  OF  A
SINGLE  DISCIPLINE sanctioned by AN ORGANIZATION APPROVED BY THE COMMIS-
SION, INCLUDING, BUT NOT LIMITED TO, any of the following organizations:
U.S. Judo Association, U.S. Judo, Inc., U.S. Judo Federation,  U.S.  Tae
Kwon  Do  Union,  North American Sport Karate Association, U.S.A. Karate
Foundation, U.S. Karate, Inc., World  Karate  Association,  Professional
Karate  Association,  Karate  International, International Kenpo Associ-
ation, or World Wide Kenpo Association. The  commission  [is  authorized
to]  SHALL  promulgate  regulations  which  would establish a process to
allow for the inclusion or removal of martial  arts  organizations  from
the above list. Such process shall include but not be limited to consid-
eration  of  the  following  factors:    [(a)] (1) is the organization's
primary purpose to provide instruction in self defense techniques; [(b)]
(2) does the organization require  the  use  of  hand,  feet  and  groin
protection during any competition or bout; and [(c)] (3) does the organ-
ization  have  an  established  set  of rules that require the immediate
termination of any competition or bout when any participant has received
severe punishment or is in danger of suffering serious physical injury.
  (C) "COMMISSION" MEANS THE STATE ATHLETIC COMMISSION AS  PROVIDED  FOR
IN  SECTION  ONE OF THIS CHAPTER OR AN AGENT OF THE COMMISSION ACTING ON
ITS BEHALF.
  (D) "MIXED MARTIAL  ARTS"  MEANS  ANY  PROFESSIONAL  COMBATIVE  SPORTS
COMPETITION  WHEREIN THE RULES OF SUCH COMPETITION SUBJECT TO THE APPLI-
CABLE LIMITATIONS AS SET FORTH BY THE COMMISSION AUTHORIZE  PROFESSIONAL
COMBATIVE  SPORTS MATCHES OR EXHIBITIONS BETWEEN VARIOUS FIGHTING DISCI-
PLINES, INCLUDING THE UTILIZATION OF PERMITTED MARTIAL ARTS  TECHNIQUES,
INCLUDING  STRIKING,  KICKING  AND  GRAPPLING.  NO  NON-PROFESSIONAL  OR
AMATEUR BOUT, EXHIBITION OR PARTICIPANT  SHALL  BE  AUTHORIZED  BY  THIS
SECTION.

S. 6259--C                         55

  (E) "PROFESSIONAL COMBATIVE SPORTS PARTICIPANT" OR "PARTICIPANT" SHALL
MEAN A COMBATIVE SPORTS FIGHTER WHO COMPETES FOR A MONEY PRIZE OR TEACH-
ES  OR  PURSUES  OR  ASSISTS  IN THE PRACTICE OF MIXED MARTIAL ARTS AS A
MEANS OF OBTAINING A LIVELIHOOD  OR  PECUNIARY  GAIN,  AND  ANY  CONTEST
CONFORMING TO THE RULES, REGULATIONS AND REQUIREMENTS OF THIS SECTION.
  (F) "PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION" SHALL MEAN ANY
MATCH  OR  EXHIBITION  THAT  MUST  BE  APPROVED  BY THE COMMISSION WHERE
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS RECEIVE CONSIDERATION OF  ANY
VALUE OR AN ADMISSION IS CHARGED.
  1-A.  COMMISSION REVIEW. THE COMMISSION SHALL REVIEW EACH MARTIAL ARTS
SANCTIONING ORGANIZATION, INCLUDING THOSE LISTED IN SUBDIVISION  ONE  OF
THIS  SECTION,  AT  LEAST  BIENNIALLY, OR SOONER IF DETERMINED NECESSARY
BASED UPON THE PERIODIC COMPLIANCE CHECKS OR COMPLAINTS TO  THE  COMMIS-
SION,  TO  DETERMINE  CONTINUATION  OF  THE  COMMISSION'S  APPROVAL. THE
COMMISSION SHALL CONTINUE APPROVAL OR SHALL SUSPEND OR  REVOKE  APPROVAL
BASED  UPON COMPLIANCE OF THE ORGANIZATION WITH THE APPROVED SANCTIONING
STANDARDS AND ITS ABILITY TO  SUPERVISE  MATCHES  IN  THE  STATE.    THE
COMMISSION  SHALL  ACT UPON ANY APPLICATION FOR INCLUSION IN THE LIST IN
PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION WITHIN  SIXTY  DAYS  OF
THE DATE SUCH APPLICATION IS MADE TO THE COMMISSION.
  1-B.  MIXED  MARTIAL ARTS COMPETITION. THE COMMISSION SHALL PROMULGATE
RULES AND REGULATIONS TO ALLOW FOR MIXED MARTIAL ARTS COMPETITIONS TO BE
CONDUCTED, HELD, OR GIVEN WITHIN THE STATE OF NEW YORK AND  SHALL  ALLOW
FOR  LICENSES TO BE APPROVED BY THE COMMISSION FOR SUCH MATCHES OR EXHI-
BITIONS. THE COMMISSION IS AUTHORIZED  TO  PROMULGATE  RULES  AND  REGU-
LATIONS  TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION. SUCH RULES AND
REGULATIONS SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE  ADOPTION  OF
UNIFIED RULES OF MIXED MARTIAL ARTS, A LICENSING PROCESS FOR MATCHES AND
EXHIBITIONS,  A  FEE SCHEDULE FOR SUCH LICENSES, PROCEDURES TO ALLOW FOR
THE PARTICIPATION, PROMOTION, AND ADVANCEMENT OF SUCH EVENTS, THE HEALTH
AND SAFETY OF PARTICIPANTS, AND THE BEST INTERESTS OF MIXED MARTIAL ARTS
AND THE ADOPTION OF RULES AND REGULATIONS FOR LICENSING  AND  REGULATION
OF  ANY AND ALL GYMS, CLUBS, TRAINING CAMPS AND OTHER ORGANIZATIONS THAT
MAINTAIN TRAINING FACILITIES PROVIDING CONTACT SPARRING FOR PERSONS  WHO
PREPARE FOR PARTICIPATION IN SUCH PROFESSIONAL COMBATIVE SPORTS OR EXHI-
BITIONS, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION.
  (B)  THE  COMMISSION  IS  AUTHORIZED  AND DIRECTED TO REQUIRE THAT ALL
SITES WHEREIN PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED  SHALL  COMPLY
WITH  STATE  AND  APPLICABLE  LOCAL SANITARY CODES APPROPRIATE TO SCHOOL
ATHLETIC FACILITIES.
  2. [No combative sport shall be conducted, held or  given  within  the
state of New York, and no licenses may be approved by the commission for
such matches or exhibitions.
  3.  (a)  A  person  who knowingly advances or profits from a combative
sport activity shall be guilty of a class A misdemeanor,  and  shall  be
guilty of a class E felony if he or she has been convicted in the previ-
ous five years of violating this subdivision.
  (b)  A  person  advances a combative sport activity when, acting other
than as a spectator, he or she engages in conduct which materially  aids
any combative sport. Such conduct includes but is not limited to conduct
directed  toward  the creation, establishment or performance of a comba-
tive sport, toward the acquisition or maintenance of premises, parapher-
nalia, equipment or  apparatus  therefor,  toward  the  solicitation  or
inducement of persons to attend or participate therein, toward the actu-
al  conduct of the performance thereof, toward the arrangement of any of
its financial or promotional phases, or toward  any  other  phase  of  a

S. 6259--C                         56

combative  sport.  One  advances a combative sport activity when, having
substantial proprietary or other  authoritative  control  over  premises
being  used  with his or her knowledge for purposes of a combative sport
activity, he or she permits such to occur or continue or makes no effort
to prevent its occurrence or continuation.
  (c)  A  person  profits from a combative sport activity when he or she
accepts or receives money or other property with intent  to  participate
in  the proceeds of a combative sport activity, or pursuant to an agree-
ment or understanding with any person whereby he or she participates  or
is to participate in the proceeds of a combative sport activity.
  (d)  Any  person  who  knowingly  advances or profits from a combative
sport activity shall also be subject to a civil penalty  not  to  exceed
for the first violation ten thousand dollars or twice the amount of gain
derived  therefrom  whichever  is greater, or for a subsequent violation
twenty thousand dollars or twice the amount of  gain  derived  therefrom
whichever  is  greater.  The  attorney  general  is  hereby empowered to
commence judicial proceedings to recover such penalties  and  to  obtain
injunctive  relief  to  enforce the provisions of this section.] PROFES-
SIONAL COMBATIVE SPORTS MATCHES AND EXHIBITIONS AUTHORIZED. NO COMBATIVE
SPORTS MATCH OR EXHIBITION SHALL BE CONDUCTED, HELD OR GIVEN WITHIN  THE
STATE  EXCEPT  IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND THE
RULES AND REGULATIONS PROMULGATED BY THE  COMMISSION  PURSUANT  THERETO.
THE COMMISSION SHALL DIRECT A REPRESENTATIVE TO BE PRESENT AT EACH PLACE
WHERE COMBATIVE SPORTS ARE TO BE HELD PURSUANT TO THE PROVISIONS OF THIS
SECTION.  SUCH  REPRESENTATIVE  SHALL  ASCERTAIN  THE  EXACT  CONDITIONS
SURROUNDING SUCH MATCH OR EXHIBITION AND MAKE A WRITTEN  REPORT  OF  THE
SAME IN THE MANNER AND FORM PRESCRIBED BY THE COMMISSION. SUCH COMBATIVE
SPORTS  MATCHES OR EXHIBITIONS MAY BE HELD IN ANY BUILDING FOR WHICH THE
COMMISSION IN ITS DISCRETION MAY ISSUE A LICENSE. WHERE  SUCH  MATCH  OR
EXHIBITION IS AUTHORIZED TO BE HELD IN A STATE OR CITY OWNED ARMORY, THE
PROVISION  OF THE MILITARY LAW IN RESPECT THERETO MUST BE COMPLIED WITH,
BUT NO SUCH MATCH OR EXHIBITION SHALL BE HELD IN A BUILDING WHOLLY  USED
FOR RELIGIOUS SERVICES.
  3. JURISDICTION OF COMMISSION. (A) THE COMMISSION SHALL HAVE AND HERE-
BY  IS VESTED WITH THE SOLE DIRECTION, MANAGEMENT, CONTROL AND JURISDIC-
TION OVER ALL PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS TO BE
CONDUCTED, HELD OR GIVEN WITHIN THE STATE  OF  NEW  YORK  AND  OVER  ALL
LICENSES TO ANY AND ALL PERSONS WHO PARTICIPATE IN SUCH COMBATIVE SPORTS
MATCHES  OR EXHIBITIONS AND OVER ANY AND ALL GYMS, CLUBS, TRAINING CAMPS
AND OTHER ORGANIZATIONS  THAT  MAINTAIN  TRAINING  FACILITIES  PROVIDING
CONTACT  SPARRING  FOR  PERSONS  WHO  PREPARE  FOR PARTICIPATION IN SUCH
PROFESSIONAL  COMBATIVE  SPORTS  OR  EXHIBITIONS,  EXCEPT  AS  OTHERWISE
PROVIDED IN THIS SECTION.
  (B)  THE  COMMISSION  IS  AUTHORIZED  AND DIRECTED TO REQUIRE THAT ALL
SITES WHEREIN PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED  SHALL  COMPLY
WITH  STATE  AND  APPLICABLE  LOCAL SANITARY CODES APPROPRIATE TO SCHOOL
ATHLETIC FACILITIES.
  4. ENTITIES  REQUIRED  TO  PROCURE  LICENSES;  PROFESSIONAL  COMBATIVE
SPORTS PARTICIPANTS DEFINED. EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION
SIX OF THIS SECTION, ALL CORPORATIONS, PERSONS, LIMITED LIABILITY COMPA-
NIES,  REFEREES,  JUDGES, CORPORATION TREASURERS, PROFESSIONAL COMBATIVE
SPORTS PARTICIPANTS,  THEIR  MANAGERS,  PROMOTERS,  TRAINERS  AND  CHIEF
SECONDS SHALL BE LICENSED BY THE COMMISSION, AND NO SUCH ENTITY SHALL BE
PERMITTED  TO PARTICIPATE, EITHER DIRECTLY OR INDIRECTLY, IN ANY PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION,  OR  THE  HOLDING  THEREOF,
UNLESS  SUCH ENTITY SHALL HAVE FIRST PROCURED A LICENSE FROM THE COMMIS-

S. 6259--C                         57

SION. THE COMMISSION SHALL ESTABLISH BY RULE  AND  REGULATION  LICENSING
STANDARDS  FOR REFEREES, JUDGES, MANAGERS, PROMOTERS, TRAINERS AND CHIEF
SECONDS.  ANY MATCH OR EXHIBITION CONFORMING TO THE  RULES,  REGULATIONS
AND  REQUIREMENTS  OF  THIS SECTION SHALL BE DEEMED TO BE A PROFESSIONAL
COMBATIVE SPORTS MATCH OR EXHIBITION.
  5. LICENSE TO ENTITIES. (A) THE COMMISSION  MAY,  IN  ITS  DISCRETION,
ISSUE A LICENSE TO CONDUCT OR HOLD PROFESSIONAL COMBATIVE SPORTS MATCHES
OR  EXHIBITIONS, SUBJECT TO THE PROVISIONS HEREOF, TO ANY PERSON, CORPO-
RATION OR LIMITED LIABILITY COMPANY DULY INCORPORATED OR FORMED, HEREIN-
AFTER REFERRED TO AS "ENTITY".
  (B) A PROSPECTIVE LICENSEE MUST SUBMIT TO THE COMMISSION PROOF THAT IT
CAN FURNISH SUITABLE PREMISES IN WHICH SUCH MATCH OR EXHIBITION IS TO BE
HELD.
  (C) UPON WRITTEN APPLICATION AND THE PAYMENT OF A FEE OF FIVE  HUNDRED
DOLLARS  WHICH  MUST ACCOMPANY THE APPLICATION, THE COMMISSION MAY GRANT
TO ANY ENTITY HOLDING A LICENSE ISSUED HEREUNDER, THE PRIVILEGE OF HOLD-
ING SUCH A MATCH OR EXHIBITION ON A SPECIFIED DATE IN OTHER PREMISES, OR
IN ANOTHER LOCATION, THAN THE PREMISES OF LOCATION  PREVIOUSLY  APPROVED
BY THE COMMISSION, SUBJECT HOWEVER TO APPROVAL OF THE COMMISSION AND THE
RULES AND REGULATIONS OF THE COMMISSION.
  (D)  ALL  PENALTIES  IMPOSED  AND COLLECTED BY THE COMMISSION FROM ANY
ENTITY LICENSED UNDER THE PROVISIONS OF THIS ACT, WHICH FINES AND PENAL-
TIES ARE IMPOSED AND COLLECTED UNDER THE AUTHORITY HEREBY  VESTED  SHALL
WITHIN  THIRTY  DAYS AFTER THE RECEIPT THEREOF BY THE COMMISSION BE PAID
BY THEM INTO THE STATE TREASURY.
  6. TEMPORARY WORKING PERMITS FOR PROFESSIONAL COMBATIVE SPORTS PARTIC-
IPANTS, MANAGERS, TRAINERS AND CHIEF SECONDS. THE COMMISSION  MAY  ISSUE
TEMPORARY WORKING PERMITS TO PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS,
THEIR  MANAGERS,  TRAINERS AND CHIEF SECONDS. A TEMPORARY WORKING PERMIT
SHALL AUTHORIZE THE EMPLOYMENT OF THE HOLDER OF SUCH PERMIT TO ENGAGE IN
A SINGLE MATCH OR EXHIBITION AT A SPECIFIED TIME AND PLACE. A  TEMPORARY
WORKING  PERMIT  MAY  BE ISSUED IF IN THE JUDGMENT OF THE COMMISSION THE
PARTICIPATION OF THE HOLDER THEREOF IN A PROFESSIONAL  COMBATIVE  SPORTS
MATCH  OR EXHIBITION WILL BE CONSISTENT WITH THE PURPOSES AND PROVISIONS
OF THIS SECTION, THE BEST INTERESTS OF COMBATIVE SPORTS  GENERALLY,  AND
THE  PUBLIC  INTEREST,  CONVENIENCE  OR  NECESSITY.  THE  COMMISSION MAY
REQUIRE THAT PROFESSIONAL COMBATIVE  SPORTS  PARTICIPANTS  APPLYING  FOR
TEMPORARY  WORKING  PERMITS UNDERGO A PHYSICAL EXAMINATION, NEUROLOGICAL
OR NEUROPSYCHOLOGICAL TEST OR PROCEDURE, INCLUDING  COMPUTED  TOMOGRAPHY
OR  MEDICALLY  EQUIVALENT  PROCEDURE. THE FEE FOR SUCH TEMPORARY WORKING
PERMIT SHALL BE TWENTY DOLLARS.
  7. LICENSE FEES; TERM OF LICENSES;  RENEWALS.  EACH  APPLICANT  FOR  A
PROMOTER  LICENSE  SHALL,  BEFORE A LICENSE IS ISSUED BY THE COMMISSION,
PAY TO THE COMMISSION, AN ANNUAL LICENSE FEE  AS  FOLLOWS:    WHERE  THE
SEATING  CAPACITY  IS  NOT  MORE  THAN  TWO  THOUSAND FIVE HUNDRED, FIVE
HUNDRED DOLLARS; WHERE THE SEATING CAPACITY IS MORE  THAN  TWO  THOUSAND
FIVE  HUNDRED  BUT  NOT  MORE  THAN FIVE THOUSAND, ONE THOUSAND DOLLARS;
WHERE THE SEATING CAPACITY IS MORE THAN FIVE THOUSAND BUT NOT MORE  THAN
FIFTEEN  THOUSAND,  ONE THOUSAND FIVE HUNDRED DOLLARS; WHERE THE SEATING
CAPACITY IS MORE THAN FIFTEEN THOUSAND BUT  NOT  MORE  THAN  TWENTY-FIVE
THOUSAND,  TWO THOUSAND FIVE HUNDRED DOLLARS; WHERE THE SEATING CAPACITY
IS MORE THAN TWENTY-FIVE THOUSAND, THREE THOUSAND FIVE HUNDRED  DOLLARS;
REFEREE,  ONE HUNDRED DOLLARS; JUDGES, ONE HUNDRED DOLLARS; PROFESSIONAL
COMBATIVE SPORTS PARTICIPANTS, FIFTY DOLLARS; MANAGERS,  FIFTY  DOLLARS;
TRAINERS,  FIFTY DOLLARS; AND CHIEF SECONDS, FORTY DOLLARS. EACH LICENSE
OR RENEWAL THEREOF ISSUED PURSUANT TO THIS SUBDIVISION ON OR AFTER OCTO-

S. 6259--C                         58

BER FIRST SHALL BE EFFECTIVE FOR A LICENSE YEAR EXPIRING ON THE  THIRTI-
ETH  DAY  OF  SEPTEMBER  FOLLOWING  THE DATE OF ITS ISSUANCE. THE ANNUAL
LICENSE FEE PRESCRIBED BY THIS SUBDIVISION SHALL BE THE LICENSE FEE  DUE
AND  PAYABLE  THEREFOR AND SHALL BE PAID IN ADVANCE AT THE TIME APPLICA-
TION IS MADE THEREFOR, AND EACH SUCH LICENSE MAY BE RENEWED FOR  PERIODS
OF  ONE  YEAR  UPON  THE PAYMENT OF THE ANNUAL LICENSE FEE PRESCRIBED BY
THIS SUBDIVISION. WITHIN THREE YEARS FROM THE DATE OF PAYMENT  AND  UPON
THE  AUDIT OF THE COMPTROLLER, THE COMMISSION MAY REFUND ANY FEE, UNFOR-
FEITED POSTED GUARANTEE OR TAX PAID PURSUANT TO THIS SECTION, FOR  WHICH
NO  LICENSE  IS  ISSUED OR NO SERVICE RENDERED OR REFUND THAT PORTION OF
THE PAYMENT THAT IS IN EXCESS OF THE AMOUNT PRESCRIBED BY STATUTE.
  8. APPLICATION FOR LICENSE; FINGERPRINTS. (A) EVERY APPLICATION FOR  A
LICENSE SHALL BE IN WRITING, SHALL BE ADDRESSED TO THE COMMISSION, SHALL
BE  SUBSCRIBED  BY  THE APPLICANT, AND AFFIRMED BY HIM AS TRUE UNDER THE
PENALTIES OF PERJURY, AND SHALL SET FORTH SUCH FACTS AS  THE  PROVISIONS
HEREOF AND THE RULES AND REGULATIONS OF THE COMMISSION MAY REQUIRE.
  (B)  WHEN AN APPLICATION IS MADE FOR A LICENSE UNDER THIS SECTION, THE
COMMISSION MAY CAUSE THE FINGERPRINTS OF  SUCH  APPLICANT,  OR  IF  SUCH
APPLICANT  BE  A CORPORATION, OF THE OFFICERS OF SUCH CORPORATION, OR IF
SUCH APPLICANT BE A LIMITED  LIABILITY  COMPANY,  THE  MANAGER  OF  SUCH
LIMITED  LIABILITY COMPANY TO BE TAKEN IN DUPLICATE. THE APPLICANT SHALL
BE RESPONSIBLE FOR THE COST OF HAVING HIS FINGERPRINTS TAKEN.   IF  SUCH
FINGERPRINTS ARE TAKEN, ONE COPY SHALL BE TRANSMITTED TO THE DIVISION OF
CRIMINAL  JUSTICE  SERVICES IN ACCORDANCE WITH THE RULES AND REGULATIONS
OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND  ONE  SHALL  REMAIN  ON
FILE  IN  THE  OFFICE  OF  THE  COMMISSION.  NO  SUCH FINGERPRINT MAY BE
INSPECTED BY ANY PERSON, OTHER THAN A PEACE OFFICER, EXCEPT ON ORDER  OF
A JUDGE OR JUSTICE OF A COURT OF RECORD.  THE DIVISION IS HEREBY AUTHOR-
IZED  TO TRANSMIT CRIMINAL HISTORY INFORMATION TO THE COMMISSION FOR THE
PURPOSES OF THIS PARAGRAPH.  THE INFORMATION OBTAINED BY ANY SUCH  FING-
ERPRINT  EXAMINATION  SHALL BE FOR THE GUIDANCE OF THE COMMISSION IN THE
EXERCISE OF ITS DISCRETION IN GRANTING OR WITHHOLDING THE LICENSE.   THE
COMMISSION SHALL PROVIDE SUCH APPLICANT WITH A COPY OF HIS OR HER CRIMI-
NAL   HISTORY   RECORD,   IF  ANY,  TOGETHER  WITH  A  COPY  OF  ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW, AND INFORM SUCH APPLICANT  OF  HIS
OR  HER  RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED
IN SUCH RECORD PURSUANT TO REGULATIONS AND PROCEDURES ESTABLISHED BY THE
DIVISION OF CRIMINAL JUSTICE  SERVICES.  ALL  DETERMINATIONS  TO  ISSUE,
RENEW,  SUSPEND  OR  REVOKE  A  LICENSE SHALL BE MADE IN ACCORDANCE WITH
SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF  THE  EXECUTIVE
LAW AND ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW.
  9.  STANDARDS  FOR THE ISSUANCE OF LICENSES. (A) IF IN THE JUDGMENT OF
THE COMMISSION THE FINANCIAL RESPONSIBILITY, EXPERIENCE,  CHARACTER  AND
GENERAL  FITNESS  OF AN APPLICANT, INCLUDING IN THE CASE OF CORPORATIONS
ITS OFFICERS AND STOCKHOLDERS, ARE SUCH THAT THE PARTICIPATION  OF  SUCH
APPLICANT  WILL  BE  CONSISTENT  WITH  THE  BEST  INTERESTS OF COMBATIVE
SPORTS, THE PURPOSES OF THIS SECTION INCLUDING  THE  SAFETY  OF  PROFES-
SIONAL  COMBATIVE  SPORTS  PARTICIPANTS,  AND  IN  THE  PUBLIC INTEREST,
CONVENIENCE OR NECESSITY,  THE  COMMISSION  SHALL  GRANT  A  LICENSE  IN
ACCORDANCE WITH THE PROVISIONS CONTAINED IN THIS SUBDIVISION.
  (B)  ANY  PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANT  APPLYING FOR A
LICENSE OR RENEWAL OF A LICENSE UNDER THIS SUBDIVISION SHALL  UNDERGO  A
COMPREHENSIVE  PHYSICAL  EXAMINATION INCLUDING CLINICAL NEUROLOGICAL AND
NEUROPSYCHOLOGICAL EXAMINATIONS BY A PHYSICIAN APPROVED BY  THE  COMMIS-
SION.  IF,  AT  THE TIME OF SUCH EXAMINATION, THERE IS ANY INDICATION OF
BRAIN INJURY, OR FOR ANY OTHER REASON THE PHYSICIAN DEEMS  IT  APPROPRI-

S. 6259--C                         59

ATE,  THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT SHALL BE REQUIRED TO
UNDERGO FURTHER NEUROLOGICAL AND NEUROPSYCHOLOGICAL  EXAMINATIONS  BY  A
NEUROLOGIST  INCLUDING,  BUT  NOT  LIMITED  TO, A COMPUTED TOMOGRAPHY OR
MEDICALLY EQUIVALENT PROCEDURE. THE COMMISSION SHALL NOT ISSUE A LICENSE
TO  A  PROFESSIONAL COMBATIVE SPORTS PARTICIPANT UNTIL SUCH EXAMINATIONS
ARE COMPLETED AND REVIEWED BY THE COMMISSION. THE RESULTS  OF  ALL  SUCH
EXAMINATIONS  HEREIN  REQUIRED  SHALL  BECOME A PART OF THE PROFESSIONAL
COMBATIVE SPORTS PARTICIPANT'S PERMANENT MEDICAL RECORD AS MAINTAINED BY
THE COMMISSION. THE COST OF ALL SUCH EXAMINATIONS  CALLED  FOR  IN  THIS
SUBDIVISION  SHALL  BE  ASSUMED  BY  THE  STATE IF SUCH EXAMINATIONS ARE
PERFORMED BY A PHYSICIAN OR NEUROLOGIST APPROVED BY THE COMMISSION.
  (C) ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED UNDER  THIS
CHAPTER SHALL, AS A CONDITION OF LICENSURE, WAIVE RIGHT OF CONFIDENTIAL-
ITY  OF  MEDICAL RECORDS RELATING TO TREATMENT OF ANY PHYSICAL CONDITION
WHICH RELATES TO HIS ABILITY TO FIGHT. ALL MEDICAL REPORTS SUBMITTED TO,
AND ALL MEDICAL RECORDS OF THE MEDICAL ADVISORY BOARD OR THE  COMMISSION
RELATIVE  TO  THE  PHYSICAL EXAMINATION OR CONDITION OF COMBATIVE SPORTS
PARTICIPANTS SHALL BE CONSIDERED CONFIDENTIAL,  AND  SHALL  BE  OPEN  TO
EXAMINATION  ONLY TO THE COMMISSION OR ITS AUTHORIZED REPRESENTATIVE, TO
THE LICENSED PARTICIPANT, MANAGER OR CHIEF SECOND UPON WRITTEN  APPLICA-
TION  TO EXAMINE SAID RECORDS, OR UPON THE ORDER OF A COURT OF COMPETENT
JURISDICTION IN AN APPROPRIATE CASE.
  10. FINANCIAL INTEREST IN PROFESSIONAL COMBATIVE  SPORTS  PARTICIPANTS
PROHIBITED.  NO  ENTITY  SHALL  HAVE, EITHER DIRECTLY OR INDIRECTLY, ANY
FINANCIAL  INTEREST  IN  A  PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANT
COMPETING  ON  PREMISES  OWNED OR LEASED BY THE ENTITY, OR IN WHICH SUCH
ENTITY IS OTHERWISE INTERESTED EXCEPT PURSUANT TO THE  SPECIFIC  WRITTEN
AUTHORIZATION OF THE COMMISSION.
  11. PAYMENTS NOT TO BE MADE BEFORE CONTESTS. NO PROFESSIONAL COMBATIVE
SPORTS  PARTICIPANT  SHALL  BE PAID FOR SERVICES BEFORE THE CONTEST, AND
SHOULD IT BE DETERMINED BY THE COMMISSION THAT SUCH PARTICIPANT DID  NOT
GIVE  AN  HONEST EXHIBITION OF HIS SKILL, SUCH SERVICE SHALL NOT BE PAID
FOR.
  12. SHAM OR COLLUSIVE EVENTS. (A) ANY  PERSON,  INCLUDING  ANY  CORPO-
RATION AND THE OFFICERS THEREOF, ANY PHYSICIAN, LIMITED LIABILITY COMPA-
NY,  REFEREE, JUDGE, PROFESSIONAL COMBATIVE SPORTS PARTICIPANT, MANAGER,
TRAINER OR CHIEF SECOND, WHO SHALL PROMOTE, CONDUCT, GIVE OR PARTICIPATE
IN ANY SHAM OR COLLUSIVE PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHIBI-
TION, SHALL BE DEPRIVED OF HIS LICENSE BY THE COMMISSION.
  (B)  NO  LICENSED ENTITY SHALL KNOWINGLY ENGAGE IN A COURSE OF CONDUCT
IN WHICH  PROFESSIONAL  COMBATIVE  SPORTS  MATCHES  OR  EXHIBITIONS  ARE
ARRANGED  WHERE ONE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT HAS SKILLS
OR EXPERIENCE SIGNIFICANTLY IN EXCESS OF THE OTHER  PROFESSIONAL  COMBA-
TIVE SPORTS PARTICIPANT SO THAT A MISMATCH RESULTS WITH THE POTENTIAL OF
PHYSICAL  HARM TO THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT. IF SUCH
ACTION OCCURS, THE COMMISSION MAY  EXERCISE  ITS  POWERS  TO  DISCIPLINE
UNDER  SUBDIVISIONS THIRTEEN AND FOURTEEN OF THIS SECTION, PROVIDED THAT
NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE THE COMMISSION TO  INTERVENE
OR  PROHIBIT  A PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION SOLELY
ON THE BASIS OF THE DIFFERENCE BETWEEN RESPECTIVE PARTICIPANT'S  MARTIAL
ARTS DISCIPLINES.
  13. IMPOSITION OF PENALTIES FOR VIOLATIONS. ANY ENTITY, LICENSED UNDER
THE PROVISIONS OF THIS SECTION, THAT SHALL KNOWINGLY VIOLATE ANY RULE OR
ORDER OF THE COMMISSION OR ANY PROVISION OF THIS SECTION, IN ADDITION TO
ANY  OTHER PENALTY BY LAW PRESCRIBED, SHALL BE LIABLE TO A CIVIL PENALTY
NOT EXCEEDING FIVE THOUSAND DOLLARS TO BE IMPOSED BY THE COMMISSION,  TO

S. 6259--C                         60

BE  SUED  FOR  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
STATE OF NEW YORK IF DIRECTED BY  THE  COMMISSION.  THE  AMOUNT  OF  THE
PENALTY  COLLECTED BY THE COMMISSION OR RECOVERED IN ANY SUCH ACTION, OR
PAID  TO THE COMMISSION UPON A COMPROMISE AS HEREINAFTER PROVIDED, SHALL
BE TRANSMITTED BY THE DEPARTMENT OF STATE INTO THE  STATE  TREASURY  AND
CREDITED  TO  THE  GENERAL  FUND.  THE  COMMISSION, FOR CAUSE SHOWN, MAY
EXTEND THE TIME FOR THE PAYMENT OF SUCH PENALTY AND, BY COMPROMISE,  MAY
ACCEPT  LESS  THAN  THE  AMOUNT OF SUCH PENALTY AS IMPOSED IN SETTLEMENT
THEREOF.
  14. REVOCATION OR SUSPENSION OF LICENSES. (A) ANY LICENSE ISSUED UNDER
THE PROVISIONS OF THIS SECTION  MAY  BE  REVOKED  OR  SUSPENDED  BY  THE
COMMISSION  FOR THE REASON THEREIN STATED, THAT THE LICENSEE HAS, IN THE
JUDGMENT OF THE COMMISSION, BEEN GUILTY OF AN  ACT  DETRIMENTAL  TO  THE
INTERESTS  OF  COMBATIVE  SPORTS  GENERALLY  OR  TO THE PUBLIC INTEREST,
CONVENIENCE OR NECESSITY.
  (B) WITHOUT OTHERWISE LIMITING THE DISCRETION  OF  THE  COMMISSION  AS
PROVIDED IN THIS SECTION, THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE
OR  REFUSE TO RENEW OR ISSUE A LICENSE, IF IT SHALL FIND THAT THE APPLI-
CANT OR PARTICIPANT: (1) HAS BEEN CONVICTED OF A CRIME IN ANY  JURISDIC-
TION;  (2)  IS  ASSOCIATING  OR  CONSORTING  WITH  ANY PERSON WHO HAS OR
PERSONS WHO HAVE BEEN CONVICTED OF A CRIME OR CRIMES IN ANY JURISDICTION
OR JURISDICTIONS; (3) HAS BEEN GUILTY  OF  OR  ATTEMPTED  ANY  FRAUD  OR
MISREPRESENTATION  IN CONNECTION WITH COMBATIVE SPORTS; (4) HAS VIOLATED
OR ATTEMPTED TO VIOLATE ANY LAW WITH RESPECT TO COMBATIVE SPORTS IN  ANY
JURISDICTION  OR  ANY  RULE,  REGULATION  OR ORDER OF THE COMMISSION, OR
SHALL HAVE VIOLATED ANY RULE OF COMBATIVE SPORTS WHICH SHALL  HAVE  BEEN
APPROVED  OR ADOPTED BY THE COMMISSION, OR HAS BEEN GUILTY OF OR ENGAGED
IN SIMILAR, RELATED OR LIKE PRACTICES; OR (5) HAS NOT ACTED IN THE  BEST
INTEREST  OF  MIXED  MARTIAL ARTS.   ALL DETERMINATIONS TO ISSUE, RENEW,
SUSPEND OR REVOKE A LICENSE SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE TWENTY-THREE-A OF THE CORRECTION LAW AS APPLICABLE.
  (C) NO SUCH PARTICIPANT MAY, UNDER  ANY    CIRCUMSTANCES,  COMPETE  OR
APPEAR  IN  A  PROFESSIONAL  COMBATIVE SPORTS MATCH OR EXHIBITION WITHIN
NINETY DAYS OF HAVING SUFFERED A KNOCKOUT OR TECHNICAL KNOCKOUT  IN  ANY
SUCH MATCH OR EXHIBITION WITHOUT CLEARANCE BY THE BOARD, OR WITHIN NINE-
TY  DAYS  OF  BEING RENDERED UNCONSCIOUS IN ANY SUCH MATCH OR EXHIBITION
WHERE THERE IS EVIDENCE OF HEAD TRAUMA AS DETERMINED  BY  THE  ATTENDING
COMMISSION  PHYSICIAN  AND  SHALL  UNDERGO SUCH EXAMINATIONS AS REQUIRED
UNDER PARAGRAPH (B) OF SUBDIVISION TWENTY OF THIS SECTION.  THE  PROFES-
SIONAL  COMBATIVE  SPORTS PARTICIPANT SHALL BE CONSIDERED SUSPENDED FROM
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS BY  THE  COMMISSION
AND  SHALL  FORFEIT HIS LICENSE TO THE COMMISSION DURING SUCH PERIOD AND
SUCH LICENSE SHALL NOT BE RETURNED TO THE PARTICIPANT UNTIL THE  PARTIC-
IPANT HAS MET ALL REQUIREMENTS, MEDICAL AND OTHERWISE, FOR REINSTATEMENT
OF  SUCH  LICENSE. ALL SUCH SUSPENSIONS SHALL BE RECORDED IN THE PARTIC-
IPANT'S LICENSE BY A COMMISSION OFFICIAL.
  (D) THE COMMISSION MAY AT ANY TIME SUSPEND, REVOKE OR DENY  A  PARTIC-
IPANT'S  LICENSE  OR TEMPORARY WORKING PERMIT FOR MEDICAL REASONS AT THE
RECOMMENDATION OF THE BOARD.
  (E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  IF  ANY  OTHER  STATE
SHALL REVOKE A LICENSEE'S LICENSE TO COMPETE OR APPEAR IN A PROFESSIONAL
COMBATIVE  SPORTS  MATCH  OR EXHIBITION IN THAT STATE BASED ON A KNOWING
AND INTENTIONAL ENGAGEMENT IN ANY PROHIBITED PRACTICES  OF  SUCH  STATE,
THE  COMMISSION  MAY ACT TO REVOKE ANY LICENSE TO COMPETE OR APPEAR IN A

S. 6259--C                         61

PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION ISSUED TO SUCH  LICEN-
SEE PURSUANT TO THE PROVISIONS OF THIS SECTION.
  (F)  THE  COMMISSION  MAY SUSPEND ANY LICENSE IT HAS ISSUED BY A DATED
NOTICE TO THAT EFFECT TO THE SUSPENDED LICENSEE, MAILED OR DELIVERED  TO
THE  LICENSEE, AND SPECIFYING THE EFFECTIVE DATE AND TERM OF THE SUSPEN-
SION, PROVIDED HOWEVER THAT THE COMMISSION REPRESENTATIVE IN CHARGE OF A
CONTEST OR EXHIBITION MAY THEN AND THERE TEMPORARILY SUSPEND ANY LICENSE
ISSUED BY THE COMMISSION WITHOUT SUCH NOTICE. IN THE EVENT OF  A  TEMPO-
RARY  SUSPENSION, THE COMMISSION SHALL MAIL OR DELIVER THE NOTICE TO THE
SUSPENDED LICENSEE  WITHIN  THREE  BUSINESS  DAYS  AFTER  THE  TEMPORARY
SUSPENSION.  IN  EITHER  CASE SUCH SUSPENSION MAY BE WITHOUT ANY ADVANCE
HEARING. UPON THE RECEIPT OF SUCH NOTICE OF  SUSPENSION,  THE  SUSPENDED
LICENSEE  MAY  APPLY  TO  THE  COMMISSION FOR A HEARING ON THE MATTER TO
DETERMINE WHETHER SUCH SUSPENSION SHOULD BE RESCINDED. SUCH  APPLICATION
FOR  A HEARING MUST BE IN WRITING AND MUST BE RECEIVED BY THE COMMISSION
WITHIN THIRTY DAYS AFTER THE DATE OF NOTICE OF SUSPENSION.  THE  COMMIS-
SION SHALL HAVE THE AUTHORITY TO REVOKE ANY LICENSE ISSUED BY IT. BEFORE
ANY  LICENSE IS SO REVOKED, THE LICENSEE WILL BE OFFERED THE OPPORTUNITY
AT A HEARING HELD BY OR ON BEHALF OF THE COMMISSION TO  SHOW  CAUSE  WHY
THE LICENSE SHOULD NOT BE REVOKED. THE COMMISSION SHALL OFFER THE OPPOR-
TUNITY  FOR  A  HEARING  TO  AN  AFFECTED PERSON BEFORE TAKING ANY FINAL
ACTION NEGATIVELY AFFECTING SUCH PERSON'S INDIVIDUAL PRIVILEGES OR PROP-
ERTY GRANTED BY A LICENSE DULY ISSUED BY THE COMMISSION  OR  A  CONTRACT
APPROVED  BY AND FILED WITH THE COMMISSION. IN ALL SUCH HEARINGS, LICEN-
SEES AND OTHER WITNESSES SHALL TESTIFY UNDER OATH OR AFFIRMATION,  WHICH
MAY  BE ADMINISTERED BY ANY COMMISSIONER OR AUTHORIZED REPRESENTATIVE OF
THE COMMISSION ACTUALLY PRESENT. THE COMMISSION SHALL BE THE SOLE  JUDGE
OF  THE  RELEVANCY  AND  COMPETENCY OF TESTIMONY AND OTHER EVIDENCE, THE
CREDIBILITY OF WITNESSES, AND THE SUFFICIENCY OF EVIDENCE. HEARINGS  MAY
BE  CONDUCTED  BY REPRESENTATIVES OF THE COMMISSION IN THE DISCRETION OF
THE COMMISSION. IN SUCH CASES, THE COMMISSION REPRESENTATIVES CONDUCTING
THE HEARING SHALL SUBMIT FINDINGS OF FACT  AND  RECOMMENDATIONS  TO  THE
COMMISSION, WHICH SHALL NOT BE BINDING ON THE COMMISSION.
  15.  ADVERTISING MATTER TO STATE ADMISSION PRICE. IT SHALL BE THE DUTY
OF EVERY ENTITY PROMOTING OR CONDUCTING A PROFESSIONAL COMBATIVE  SPORTS
MATCH  OR  EXHIBITION SUBJECT TO THE PROVISIONS OF THIS SECTION TO CAUSE
TO BE INSERTED IN EACH SHOW CARD, BILL, POSTER, NEWSPAPER  ADVERTISEMENT
OF  ANY  PROFESSIONAL  COMBATIVE SPORTS MATCH OR EXHIBITION GIVEN BY IT,
THE PRICE OF ADMISSION THERETO. VIOLATION  OF  THE  PROVISIONS  OF  THIS
SUBDIVISION SHALL SUBJECT THE ENTITY TO A FINE OF ONE HUNDRED DOLLARS.
  16.  TICKETS  TO  INDICATE PURCHASE PRICE. ALL TICKETS OF ADMISSION TO
ANY SUCH COMBATIVE SPORTS MATCH OR EXHIBITION SHALL BE CONTROLLED BY THE
PROVISIONS OF ARTICLE TWENTY-FIVE OF THE ARTS AND CULTURAL AFFAIRS  LAW.
IT SHALL BE UNLAWFUL FOR ANY ENTITY TO ADMIT TO SUCH MATCH OR EXHIBITION
A  NUMBER OF PEOPLE GREATER THAN THE SEATING CAPACITY OF THE PLACE WHERE
SUCH MATCH OR EXHIBITION IS HELD. VIOLATION OF THIS SUBDIVISION SHALL BE
A MISDEMEANOR AND SHALL BE PUNISHABLE AS  SUCH  AND  IN  ADDITION  SHALL
INCUR FORFEITURE OF LICENSE.
  17.  EQUIPMENT  OF BUILDINGS FOR MATCHES OR EXHIBITIONS. ALL BUILDINGS
OR STRUCTURES USED OR INTENDED TO BE USED FOR  HOLDING  OR  GIVING  SUCH
PROFESSIONAL  COMBATIVE  SPORTS MATCHES OR EXHIBITIONS SHALL BE PROPERLY
VENTILATED AND PROVIDED WITH FIRE EXITS AND FIRE  ESCAPES,  AND  IN  ALL
MANNER  CONFORM  TO  THE  LAWS, ORDINANCES AND REGULATIONS PERTAINING TO
BUILDINGS IN THE CITY, TOWN OR VILLAGE WHERE SITUATED.
  18. AGE OF PARTICIPANTS AND SPECTATORS.  NO PERSON UNDER  THE  AGE  OF
EIGHTEEN  YEARS  SHALL  PARTICIPATE IN ANY PROFESSIONAL COMBATIVE SPORTS

S. 6259--C                         62

MATCH OR EXHIBITION, AND NO PERSON UNDER SIXTEEN YEARS OF AGE  SHALL  BE
PERMITTED  TO  ATTEND  AS  A SPECTATOR; PROVIDED, HOWEVER, THAT A PERSON
UNDER THE AGE OF SIXTEEN SHALL BE PERMITTED TO ATTEND AS A SPECTATOR  IF
ACCOMPANIED BY A PARENT OR GUARDIAN.
  19.  REGULATION  OF  CONDUCT OF MATCHES OR EXHIBITIONS. (A) EXCEPT FOR
CHAMPIONSHIP MATCHES, WHICH SHALL NOT  BE  MORE  THAN  FIVE  ROUNDS,  NO
COMBATIVE  SPORTS MATCH OR EXHIBITION SHALL BE MORE THAN THREE ROUNDS IN
LENGTH.  NO PARTICIPANT SHALL BE ALLOWED TO  PARTICIPATE  IN  MORE  THAN
THREE  MATCHES  OR  EXHIBITIONS  OR  COMPETE FOR MORE THAN SIXTY MINUTES
WITHIN SEVENTY-TWO CONSECUTIVE HOURS.  NO PARTICIPANT SHALL  BE  ALLOWED
TO  COMPETE IN ANY SUCH MATCH OR EXHIBITION WITHOUT WEARING A MOUTHGUARD
AND A PROTECTIVE GROIN CUP.  AT EACH PROFESSIONAL COMBATIVE SPORTS MATCH
OR EXHIBITION, THERE SHALL BE IN ATTENDANCE A DULY LICENSED REFEREE  WHO
SHALL  DIRECT  AND  CONTROL  THE  SAME. BEFORE STARTING SUCH CONTEST THE
REFEREE SHALL ASCERTAIN FROM EACH PARTICIPANT THE NAME OF HIS MANAGER OR
CHIEF SECOND, AND SHALL HOLD SUCH MANAGER OR  CHIEF  SECOND  RESPONSIBLE
FOR  THE  CONDUCT  OF  HIS  ASSISTANT SECONDS DURING THE PROGRESS OF THE
MATCH OR EXHIBITION.   THE  COMMISSION  SHALL  HAVE  THE  POWER  IN  ITS
DISCRETION TO DECLARE FORFEITED ANY PRIZE, REMUNERATION OR PURSE, OR ANY
PART THEREOF, BELONGING TO THE PARTICIPANTS OR ONE OF THEM, OR THE SHARE
THEREOF  OF ANY MANAGER OR CHIEF SECOND IF IN ITS JUDGMENT, SUCH PARTIC-
IPANT OR PARTICIPANTS ARE NOT HONESTLY COMPETING OR THE  PARTICIPANT  OR
MANAGER  OR  CHIEF  SECOND  OF  A  PARTICIPANT,  AS THE CASE MAY BE, HAS
COMMITTED AN ACT IN THE PREMISES IN VIOLATION  OF  ANY  RULE,  ORDER  OR
REGULATION  OF  THE  COMMISSION.  THE  AMOUNT SO FORFEITED SHALL BE PAID
WITHIN FORTY-EIGHT HOURS TO THE  COMMISSION.  THERE  SHALL  ALSO  BE  IN
ATTENDANCE,  THREE  DULY LICENSED JUDGES WHO SHALL AT THE TERMINATION OF
EACH SUCH COMBATIVE SPORTS MATCH OR EXHIBITION  RENDER  THEIR  DECISION.
THE WINNER OF SUCH MATCH OR EXHIBITION SHALL BE DETERMINED IN ACCORDANCE
WITH  A SCORING SYSTEM PRESCRIBED BY THE COMMISSION.  PROVIDED, HOWEVER,
THAT A PARTICIPANT MAY TERMINATE THE CONTEST BY SIGNALLING TO THE REFER-
EE THAT SUCH PARTICIPANT SUBMITS TO THE OPPONENT.
  (B) THE COMMISSION MAY BY RULE, REGULATION OR ORDER, REQUIRE THE PRES-
ENCE OF ANY MEDICAL EQUIPMENT AND PERSONNEL AT EACH PROFESSIONAL  COMBA-
TIVE  SPORTS  MATCH  OR EXHIBITION AS IS NECESSARY OR BENEFICIAL FOR THE
SAFETY AND PROTECTION OF THE CONTESTANTS; AND MAY ALSO REQUIRE THE PRES-
ENCE OF AN AMBULANCE OR OTHER APPARATUS AT THE SITE OF ANY SUCH MATCH OR
EXHIBITION OR THE PROMULGATION OF AN  EMERGENCY  MEDICAL  PLAN  IN  LIEU
THEREOF.
  (C) THE COMMISSION SHALL PRESCRIBE BY RULE OR REGULATION THE RESPONSI-
BILITIES  OF  MANAGERS,  TRAINERS AND CHIEF SECONDS PRIOR TO, DURING AND
AFTER A COMBATIVE SPORTS MATCH OR EXHIBITION IN  ORDER  TO  PROMOTE  THE
SAFETY OF THE PARTICIPANTS AT ALL TIMES.
  (D)  THE  COMMISSION  SHALL  REQUIRE  BY  RULE  OR REGULATION THAT ANY
PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED  UNDER  THIS  SECTION
PRESENT  TO A DESIGNATED COMMISSION OFFICIAL, BEFORE EACH MATCH OR EXHI-
BITION IN WHICH HE FIGHTS IN THIS STATE, A LICENSE WHICH  SHALL  INCLUDE
BUT  NOT  BE LIMITED TO THE FOLLOWING INFORMATION: (1) THE PARTICIPANT'S
NAME, PHOTOGRAPH, SOCIAL SECURITY NUMBER, DATE OF BIRTH, AND OTHER IDEN-
TIFYING INFORMATION; (2) THE PARTICIPANT'S  PRIOR  MATCH  OR  EXHIBITION
HISTORY  INCLUDING  THE DATES, LOCATION, AND DECISION OF SUCH MATCHES OR
EXHIBITIONS; AND (3) THE PARTICIPANT'S MEDICAL HISTORY, RELATING TO  ANY
PHYSICAL CONDITION, MEDICAL TEST OR PROCEDURE WHICH RELATES TO HIS ABIL-
ITY TO FIGHT, AND A RECORD OF ALL MEDICAL SUSPENSIONS.
  20. EXAMINATION BY PHYSICIAN; COST. (A) ALL PARTICIPANTS MUST BE EXAM-
INED  BY  A  PHYSICIAN  DESIGNATED BY THE COMMISSION BEFORE ENTERING THE

S. 6259--C                         63

RING AND EACH SUCH PHYSICIAN SHALL IMMEDIATELY FILE WITH THE  COMMISSION
A  WRITTEN REPORT OF SUCH EXAMINATION. THE COST OF ANY SUCH EXAMINATION,
AS PRESCRIBED BY A SCHEDULE OF FEES ESTABLISHED BY THE COMMISSION, SHALL
BE  PAID BY THE ENTITY CONDUCTING THE MATCH OR EXHIBITION TO THE COMMIS-
SION, WHICH SHALL THEN PAY THE FEE COVERING SUCH COST TO  THE  EXAMINING
PHYSICIAN, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
  (B)  ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED OR PERMIT-
TED UNDER THIS SECTION RENDERED UNCONSCIOUS OR SUFFERING HEAD TRAUMA  AS
DETERMINED  BY  THE ATTENDING PHYSICIAN SHALL BE IMMEDIATELY EXAMINED BY
THE ATTENDING COMMISSION PHYSICIAN AND  SHALL  BE  REQUIRED  TO  UNDERGO
NEUROLOGICAL   AND  NEUROPSYCHOLOGICAL  EXAMINATIONS  BY  A  NEUROLOGIST
INCLUDING BUT NOT LIMITED TO A COMPUTED TOMOGRAPHY OR  MEDICALLY  EQUIV-
ALENT  PROCEDURE.  ANY  PARTICIPANT  SO  INJURED SHALL NOT APPEAR IN ANY
MATCH OR EXHIBITION UNTIL RESULTS OF SUCH EXAMINATIONS ARE  REVIEWED  BY
THE  COMMISSION.  THE  RESULTS  OF ALL SUCH EXAMINATIONS HEREIN REQUIRED
SHALL BECOME A PART OF THE PARTICIPANT'S PERMANENT  MEDICAL  RECORDS  AS
MAINTAINED  BY  THE  COMMISSION  AND  SHALL BE USED BY THE COMMISSION TO
DETERMINE WHETHER A PARTICIPANT SHALL BE  PERMITTED  TO  APPEAR  IN  ANY
FUTURE  PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION.  THE COSTS OF
ALL SUCH EXAMINATIONS CALLED FOR IN THIS PARAGRAPH SHALL BE  ASSUMED  BY
THE ENTITY OR PROMOTER IF SUCH EXAMINATIONS ARE PERFORMED BY A PHYSICIAN
APPROVED BY THE COMMISSION.
  (C)  THE  COMMISSION  MAY  AT ANY TIME REQUIRE A LICENSED OR PERMITTED
PARTICIPANT TO UNDERGO A PHYSICAL EXAMINATION, INCLUDING ANY  NEUROLOGI-
CAL OR NEUROPSYCHOLOGICAL TEST OR PROCEDURE. THE COST OF SUCH EXAM SHALL
BE ASSUMED BY THE STATE.
  21.  PHYSICIAN  TO  BE IN ATTENDANCE; POWERS OF SUCH PHYSICIAN. (A) IT
SHALL BE THE DUTY OF EVERY ENTITY LICENSED TO CONDUCT A COMBATIVE SPORTS
MATCH OR EXHIBITION, TO HAVE IN ATTENDANCE AT EVERY MATCH OR  EXHIBITION
AT  LEAST  ONE PHYSICIAN DESIGNATED BY THE COMMISSION AS THE RULES SHALL
PROVIDE. THE COMMISSION MAY ESTABLISH A SCHEDULE OF FEES TO BE  PAID  BY
THE  LICENSEE  TO  COVER THE COST OF SUCH ATTENDANCE. SUCH FEES SHALL BE
PAID TO THE COMMISSION, WHICH SHALL THEN PAY SUCH FEES TO THE PHYSICIANS
ENTITLED THERETO, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
  (B) THE PHYSICIAN SHALL TERMINATE ANY  PROFESSIONAL  COMBATIVE  SPORTS
MATCH  OR EXHIBITION IF IN THE OPINION OF SUCH PHYSICIAN ANY PARTICIPANT
HAS RECEIVED SEVERE PUNISHMENT OR IS IN DANGER OF SERIOUS PHYSICAL INJU-
RY. IN THE EVENT OF ANY SERIOUS PHYSICAL INJURY,  SUCH  PHYSICIAN  SHALL
IMMEDIATELY  RENDER ANY EMERGENCY TREATMENT NECESSARY, RECOMMEND FURTHER
TREATMENT OR HOSPITALIZATION IF REQUIRED, AND FULLY  REPORT  THE  ENTIRE
MATTER  TO  THE  COMMISSION  WITHIN  TWENTY-FOUR HOURS AND IF NECESSARY,
SUBSEQUENTLY THEREAFTER.  SUCH  PHYSICIAN  MAY  ALSO  REQUIRE  THAT  THE
INJURED  PARTICIPANT  AND HIS MANAGER OR CHIEF SECOND REMAIN IN THE RING
OR ON THE PREMISES OR REPORT TO A HOSPITAL AFTER THE  CONTEST  FOR  SUCH
PERIOD OF TIME AS SUCH PHYSICIAN DEEMS ADVISABLE.
  (C)  SUCH  PHYSICIAN  MAY  ENTER THE RING AT ANY TIME DURING A PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION AND MAY TERMINATE THE  MATCH
OR  EXHIBITION IF IN HIS OPINION THE SAME IS NECESSARY TO PREVENT SEVERE
PUNISHMENT OR SERIOUS PHYSICAL INJURY TO A PARTICIPANT.
  22. BOND. BEFORE A LICENSE SHALL BE GRANTED TO AN ENTITY TO CONDUCT  A
PROFESSIONAL  COMBATIVE  SPORTS MATCH OR EXHIBITION, THE APPLICANT SHALL
EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN AMOUNT TO  BE  DETER-
MINED  BY  THE  COMMISSION, TO BE APPROVED AS TO FORM AND SUFFICIENCY OF
SURETIES THEREON  BY  THE  COMPTROLLER,  CONDITIONED  FOR  THE  FAITHFUL
PERFORMANCE  BY  SUCH  ENTITY  OF THE PROVISIONS OF THIS SECTION AND THE
RULES AND REGULATIONS  OF  THE  COMMISSION,  AND  UPON  THE  FILING  AND

S. 6259--C                         64

APPROVAL  OF  SUCH  BOND THE COMPTROLLER SHALL ISSUE TO SUCH APPLICANT A
CERTIFICATE OF SUCH FILING AND APPROVAL, WHICH SHALL BE BY  SUCH  APPLI-
CANT  FILED  IN  THE  OFFICE  OF THE COMMISSION WITH ITS APPLICATION FOR
LICENSE,  AND  NO  SUCH  LICENSE  SHALL BE ISSUED UNTIL SUCH CERTIFICATE
SHALL BE FILED. IN CASE OF DEFAULT IN SUCH PERFORMANCE,  THE  COMMISSION
MAY IMPOSE UPON THE DELINQUENT A PENALTY IN THE SUM OF NOT MORE THAN ONE
THOUSAND  DOLLARS FOR EACH OFFENSE, WHICH MAY BE RECOVERED BY THE ATTOR-
NEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW  YORK  IN  THE
SAME  MANNER  AS  OTHER  PENALTIES  ARE  RECOVERED BY LAW; ANY AMOUNT SO
RECOVERED SHALL BE PAID INTO THE TREASURY.
  23. BOND FOR PURSES, SALARIES AND OTHER EXPENSES. IN ADDITION  TO  THE
BOND  REQUIRED BY SUBDIVISION TWENTY-TWO OF THIS SECTION, EACH APPLICANT
FOR A LICENSE TO CONDUCT PROFESSIONAL COMBATIVE SPORTS MATCHES OR  EXHI-
BITIONS  SHALL EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN AMOUNT
TO BE DETERMINED BY THE COMMISSION TO BE APPROVED AS TO FORM AND  SUFFI-
CIENCY OF SURETIES THEREON BY THE COMPTROLLER, CONDITIONED FOR AND GUAR-
ANTEEING  THE  PAYMENT  OF  PROFESSIONAL  COMBATIVE SPORTS PARTICIPANTS'
PURSES, SALARIES OF CLUB EMPLOYEES LICENSED BY THE COMMISSION,  AND  THE
LEGITIMATE EXPENSES OF PRINTING TICKETS AND ALL ADVERTISING MATERIAL.
  24.  DUTY  TO  PROVIDE  INSURANCE  FOR LICENSED PROFESSIONAL COMBATIVE
SPORTS PARTICIPANTS.   (A) ALL ENTITIES  HAVING  LICENSES  AS  PROMOTERS
SHALL  CONTINUOUSLY  PROVIDE  INSURANCE  FOR  THE PROTECTION OF LICENSED
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS,  APPEARING  IN  PROFESSIONAL
COMBATIVE  SPORTS MATCHES OR EXHIBITIONS.  SUCH INSURANCE COVERAGE SHALL
PROVIDE FOR REIMBURSEMENT TO THE LICENSED ATHLETE FOR MEDICAL,  SURGICAL
AND  HOSPITAL  CARE,  WITH A MINIMUM LIMIT OF FIFTY THOUSAND DOLLARS FOR
INJURIES SUSTAINED WHILE PARTICIPATING IN ANY PROGRAM OPERATED UNDER THE
CONTROL OF SUCH LICENSED PROMOTER AND FOR A PAYMENT OF ONE HUNDRED THOU-
SAND DOLLARS TO THE ESTATE OF ANY DECEASED ATHLETE WHERE SUCH  DEATH  IS
OCCASIONED  BY INJURIES RECEIVED DURING THE COURSE OF A MATCH OR EXHIBI-
TION IN WHICH SUCH LICENSED ATHLETE PARTICIPATED UNDER THE PROMOTION  OR
CONTROL OF ANY LICENSED PROMOTER.  THE COMMISSION MAY FROM TIME TO TIME,
IN ITS DISCRETION, INCREASE THE AMOUNT OF SUCH MINIMUM LIMITS.
  (B)  THE  FAILURE  TO PAY PREMIUMS ON SUCH INSURANCE AS IS REQUIRED BY
PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CAUSE FOR THE  SUSPENSION  OR
THE REVOCATION OF THE LICENSE OF SUCH DEFAULTING PROMOTER.
  25. NOTICE OF CONTEST; COLLECTION OF TAX. (A) EVERY ENTITY HOLDING ANY
PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION FOR WHICH AN ADMISSION
FEE  IS  CHARGED  OR  RECEIVED, SHALL NOTIFY THE ATHLETIC COMMISSION TEN
DAYS IN ADVANCE OF THE HOLDING OF SUCH CONTEST. ALL TICKETS OF ADMISSION
TO ANY SUCH MATCH OR EXHIBITION SHALL BE PROCURED FROM  A  PRINTER  DULY
AUTHORIZED  BY  THE  STATE ATHLETIC COMMISSION TO PRINT SUCH TICKETS AND
SHALL BEAR CLEARLY UPON THE FACE THEREOF THE PURCHASE PRICE AND LOCATION
OF SAME. AN ENTITY FAILING TO FULLY COMPLY WITH THIS  SECTION  SHALL  BE
SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS TO BE COLLECTED BY AND PAID
TO  THE  DEPARTMENT OF STATE. AN ENTITY IS PROHIBITED FROM OPERATING ANY
MATCHES OR EXHIBITIONS UNTIL ALL PENALTIES DUE PURSUANT TO THIS SUBDIVI-
SION AND TAXES, INTEREST AND PENALTIES DUE PURSUANT TO ARTICLE  NINETEEN
OF THE TAX LAW HAVE BEEN PAID.
  (B) PURSUANT TO DIRECTION BY THE COMMISSIONER OF TAXATION AND FINANCE,
EMPLOYEES  OR OFFICERS OF THE ATHLETIC COMMISSION SHALL ACT AS AGENTS OF
THE COMMISSIONER OF TAXATION AND FINANCE TO COLLECT THE TAX  IMPOSED  BY
ARTICLE  NINETEEN  OF THE TAX LAW. THE ATHLETIC COMMISSION SHALL PROVIDE
THE COMMISSIONER OF TAXATION AND FINANCE WITH SUCH INFORMATION AND TECH-
NICAL ASSISTANCE AS MAY BE NECESSARY FOR THE  PROPER  ADMINISTRATION  OF
SUCH TAX.

S. 6259--C                         65

  26.  REGULATION  OF  JUDGES. (A) JUDGES FOR ANY PROFESSIONAL COMBATIVE
SPORTS MATCH OR EXHIBITION UNDER  THE  JURISDICTION  OF  THE  COMMISSION
SHALL  BE  SELECTED  BY THE COMMISSION FROM A LIST OF QUALIFIED LICENSED
JUDGES MAINTAINED BY THE COMMISSION.
  (B)  ANY  PROFESSIONAL  COMBATIVE  SPORT PARTICIPANT, MANAGER OR CHIEF
SECOND MAY PROTEST THE ASSIGNMENT OF A JUDGE TO A PROFESSIONAL COMBATIVE
SPORTS MATCH OR EXHIBITION AND  THE  PROTESTING  PROFESSIONAL  COMBATIVE
SPORTS  PARTICIPANT, MANAGER OR CHIEF SECOND MAY BE HEARD BY THE COMMIS-
SION OR ITS DESIGNEE IF SUCH  PROTEST  IS  TIMELY.  IF  THE  PROTEST  IS
UNTIMELY IT SHALL BE SUMMARILY REJECTED.
  (C)  EACH  PERSON  SEEKING TO BE LICENSED AS A JUDGE BY THE COMMISSION
SHALL BE REQUIRED TO SUBMIT TO OR PROVIDE PROOF OF  AN  EYE  EXAMINATION
AND  ANNUALLY  THEREAFTER  ON  THE  ANNIVERSARY  OF  THE ISSUANCE OF THE
LICENSE. EACH PERSON SEEKING TO BE A PROFESSIONAL COMBATIVE SPORTS JUDGE
IN THE STATE SHALL BE CERTIFIED AS HAVING COMPLETED A  TRAINING  PROGRAM
AS  APPROVED  BY THE COMMISSION AND SHALL HAVE PASSED A WRITTEN EXAMINA-
TION APPROVED BY THE COMMISSION COVERING ASPECTS OF PROFESSIONAL  COMBA-
TIVE  SPORTS  INCLUDING, BUT NOT LIMITED TO, THE RULES OF THE SPORT, THE
LAW OF THE STATE RELATING TO THE COMMISSION, AND BASIC  FIRST  AID.  THE
COMMISSION  SHALL ESTABLISH CONTINUING EDUCATION PROGRAMS TO KEEP LICEN-
SEES CURRENT ON AREAS OF REQUIRED KNOWLEDGE.
  (D) EACH PERSON SEEKING A  LICENSE  TO  BE  A  PROFESSIONAL  COMBATIVE
SPORTS  JUDGE  IN  THIS  STATE SHALL BE REQUIRED TO FILL OUT A FINANCIAL
QUESTIONNAIRE CERTIFYING UNDER PENALTY OF PERJURY FULL DISCLOSURE OF THE
JUDGE'S FINANCIAL SITUATION ON A QUESTIONNAIRE TO BE PROMULGATED BY  THE
COMMISSION. SUCH QUESTIONNAIRE SHALL BE IN A FORM AND MANNER APPROVED BY
THE  COMMISSION  AND  SHALL PROVIDE INFORMATION AS TO AREAS OF ACTUAL OR
POTENTIAL  CONFLICTS  OF  INTEREST  AS  WELL  AS  APPEARANCES  OF   SUCH
CONFLICTS,  INCLUDING FINANCIAL RESPONSIBILITY. WITHIN FORTY-EIGHT HOURS
OF ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION, EACH COMBATIVE
SPORTS JUDGE SHALL FILE  WITH  THE  COMMISSION  A  FINANCIAL  DISCLOSURE
STATEMENT  IN SUCH FORM AND MANNER AS SHALL BE ACCEPTABLE TO THE COMMIS-
SION.
  (E) ONLY A PERSON LICENSED BY THE COMMISSION MAY JUDGE A  PROFESSIONAL
COMBATIVE SPORTS MATCH OR EXHIBITION.
  27. TRAINING FACILITIES. (A) THE COMMISSION MAY, IN ITS DISCRETION AND
IN  ACCORDANCE WITH REGULATIONS ADOPTED BY THE COMMISSION TO PROTECT THE
HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS IN TRAIN-
ING, ISSUE A LICENSE TO OPERATE A TRAINING  FACILITY  PROVIDING  CONTACT
SPARRING MAINTAINED EITHER EXCLUSIVELY OR IN PART FOR THE USE OF PROFES-
SIONAL  COMBATIVE  SPORT PARTICIPANTS. THE REGULATIONS OF THE COMMISSION
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING SUBJECTS TO  PROTECT
THE HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS:
  (1) REQUIREMENTS FOR FIRST AID MATERIALS TO BE STORED IN AN ACCESSIBLE
LOCATION  ON  THE  PREMISES  AND  FOR  THE PRESENCE ON THE PREMISES OF A
PERSON TRAINED AND CERTIFIED IN THE USE OF SUCH MATERIALS AND PROCEDURES
FOR CARDIO-PULMONARY RESUSCITATION AT ALL TIMES DURING WHICH THE FACILI-
TY IS OPEN FOR TRAINING PURPOSES;
  (2) PROMINENT POSTING ADJACENT TO AN ACCESSIBLE TELEPHONE OF THE TELE-
PHONE NUMBER FOR EMERGENCY MEDICAL SERVICES AT THE NEAREST HOSPITAL;
  (3) CLEAN AND SANITARY BATHROOMS, SHOWER ROOMS, LOCKER ROOMS AND  FOOD
SERVING AND STORAGE AREAS;
  (4)  ADEQUATE  VENTILATION  AND  LIGHTING  OF  ACCESSIBLE AREAS OF THE
TRAINING FACILITY;

S. 6259--C                         66

  (5) ESTABLISHMENT OF A POLICY CONCERNING THE RESTRICTION OF SMOKING IN
TRAINING AREAS, INCLUDING PROVISIONS FOR ITS ENFORCEMENT BY THE FACILITY
OPERATOR;
  (6) COMPLIANCE WITH STATE AND LOCAL FIRE ORDINANCES;
  (7) INSPECTION AND APPROVAL OF RINGS AS REQUIRED BY SUBDIVISION THIRTY
OF THIS SECTION; AND
  (8)  ESTABLISHMENT  OF  A  POLICY  FOR  POSTING ALL COMMISSION LICENSE
SUSPENSIONS AND LICENSE REVOCATIONS RECEIVED FROM THE COMMISSION INCLUD-
ING PROVISIONS FOR ENFORCEMENT OF SUCH SUSPENSIONS  AND  REVOCATIONS  BY
THE FACILITY OPERATOR.
  (B)  A  PROSPECTIVE LICENSEE SHALL SUBMIT TO THE COMMISSION PROOF THAT
IT CAN FURNISH SUITABLE FACILITIES  IN  WHICH  THE  TRAINING  IS  TO  BE
CONDUCTED,  INCLUDING  THE  MAKING OF SUCH TRAINING FACILITIES AVAILABLE
FOR INSPECTION BY THE COMMISSION AT ANY TIME DURING WHICH TRAINING IS IN
PROGRESS.
  28. TEMPORARY TRAINING FACILITIES.  ANY  TRAINING  FACILITY  PROVIDING
CONTACT SPARRING ESTABLISHED AND MAINTAINED ON A TEMPORARY BASIS FOR THE
PURPOSE  OF  PREPARING  A PROFESSIONAL COMBATIVE SPORT PARTICIPANT FOR A
SPECIFIC  PROFESSIONAL  COMBATIVE  SPORTS  MATCH  OR  EXHIBITION  TO  BE
CONDUCTED,  HELD  OR  GIVEN WITHIN THE STATE OF NEW YORK SHALL BE EXEMPT
FROM THIS ACT INSOFAR AS IT CONCERNS THE LICENSING  OF  SUCH  FACILITIES
IF,  IN THE JUDGMENT OF THE COMMISSION, ESTABLISHMENT AND MAINTENANCE OF
SUCH FACILITY WILL BE CONSISTENT WITH THE  PURPOSES  AND  PROVISIONS  OF
THIS CHAPTER, THE BEST INTERESTS OF PROFESSIONAL COMBATIVE SPORTS GENER-
ALLY, AND THE PUBLIC INTEREST, CONVENIENCE OR NECESSITY.
  29.  WEIGHTS;  CLASSES AND RULES. THE WEIGHTS AND CLASSES OF COMBATIVE
SPORT PARTICIPANTS AND THE RULES AND REGULATIONS OF PROFESSIONAL  COMBA-
TIVE SPORTS SHALL BE PRESCRIBED BY THE COMMISSION.
  30.  RINGS  OR FIGHTING AREAS.  NO PROFESSIONAL COMBATIVE SPORTS MATCH
OR EXHIBITION OR TRAINING ACTIVITY SHALL BE PERMITTED  IN  ANY  RING  OR
FIGHTING  AREA  UNLESS SUCH RING OR FIGHTING AREA HAS BEEN INSPECTED AND
APPROVED BY THE COMMISSION.  THE  COMMISSION  SHALL  PRESCRIBE  STANDARD
ACCEPTABLE SIZE AND QUALITY REQUIREMENTS FOR RINGS OR FIGHTING AREAS AND
APPURTENANCES THERETO.
  31.  MISDEMEANOR. ANY ENTITY WHO INTENTIONALLY, DIRECTLY OR INDIRECTLY
CONDUCTS, HOLDS OR GIVES A PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHI-
BITION  OR  PARTICIPATES EITHER DIRECTLY OR INDIRECTLY IN ANY SUCH MATCH
OR EXHIBITION AS A REFEREE, JUDGE, CORPORATION  TREASURER,  PROFESSIONAL
COMBATIVE  SPORTS  PARTICIPANT,  MANAGER,  PROMOTER,  TRAINER  OR  CHIEF
SECOND, WITHOUT FIRST HAVING PROCURED AN APPROPRIATE LICENSE  OR  PERMIT
AS PRESCRIBED IN THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
  S  3.  Section  6  of  chapter 912 of the laws of 1920 relating to the
regulation of boxing, sparring and wrestling, as amended by chapter  437
of the laws of 2002 and subdivision 1 as designated and subdivision 2 as
added by chapter 673 of the laws of 2003, is amended to read as follows:
  S  6.  Jurisdiction  of  commission.  1. The commission shall have and
hereby is vested with the sole direction, management, control and juris-
diction over all such boxing and  sparring  matches  or  exhibitions  OR
PROFESSIONAL  COMBATIVE  SPORTS  MATCHES OR EXHIBITIONS to be conducted,
held or given within the state of New York and over all licenses to  any
and  all  persons  who participate in such boxing or sparring matches or
exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS  and
over  any  and  all  gyms, clubs, training camps and other organizations
that maintain training facilities providing contact sparring for persons
who prepare for participation in such  boxing  or  sparring  matches  or
exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS, and

S. 6259--C                         67

over the promotion of professional wrestling exhibitions OR PROFESSIONAL
COMBATIVE  SPORTS  MATCHES  OR EXHIBITIONS to the extent provided for in
sections 5, 9, 19, 20, 28-a, 28-b and 33 of this act, except  as  other-
wise provided in this act.
  2. The commission is authorized and directed to require that all sites
wherein  boxing,  sparring  and  wrestling  matches  and  exhibitions OR
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS are conducted shall
comply with state and applicable local  sanitary  codes  appropriate  to
school athletic facilities.
  S  4.  Subdivision  1  of  section  451  of the tax law, as amended by
section 1 of part F of chapter 407 of the laws of 1999,  is  amended  to
read as follows:
  1.  "Gross  receipts  from  ticket  sales"  shall mean the total gross
receipts of every person from the sale of tickets to any professional or
amateur boxing, sparring or wrestling match or exhibition OR ANY PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION  held  in  this  state,  and
without  any  deduction  whatsoever for commissions, brokerage, distrib-
ution fees, advertising or any other expenses, charges  and  recoupments
in respect thereto.
  S  5. Section 452 of the tax law, as amended by section 2 of part F of
chapter 407 of the laws of 1999, is amended to read as follows:
  S 452. Imposition of tax. 1. On  and  after  October  first,  nineteen
hundred  ninety-nine, a tax is hereby imposed and shall be paid upon the
gross receipts of every  person  holding  any  professional  or  amateur
boxing,  sparring  or  wrestling match or exhibition in this state. Such
tax shall be imposed on such gross receipts, exclusive  of  any  federal
taxes, as follows:
  (a)  three percent of gross receipts from ticket sales, except that in
no event shall the tax imposed by this  [subdivision]  PARAGRAPH  exceed
fifty thousand dollars for any match or exhibition;
  (b)  three  percent of gross receipts from broadcasting rights, except
that in no event shall the tax imposed by this  [subdivision]  PARAGRAPH
exceed fifty thousand dollars for any match or exhibition.
  2. ON AND AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A TAX IS HERE-
BY  IMPOSED  AND  SHALL  BE PAID UPON THE GROSS RECEIPTS OF EVERY PERSON
HOLDING ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHIBITION  IN  THIS
STATE.  SUCH  TAX  SHALL BE IMPOSED ON SUCH GROSS RECEIPTS, EXCLUSIVE OF
ANY FEDERAL TAXES, AS FOLLOWS:
  (A) EIGHT AND ONE-HALF PERCENT OF GROSS RECEIPTS  FROM  TICKET  SALES;
AND
  (B)  THREE  PERCENT OF GROSS RECEIPTS FROM BROADCASTING RIGHTS, EXCEPT
THAT IN NO EVENT SHALL THE TAX IMPOSED BY THIS  PARAGRAPH  EXCEED  FIFTY
THOUSAND DOLLARS FOR ANY MATCH OR EXHIBITION.
  S  6.  This  act shall take effect on the ninetieth day after it shall
have become a law, and shall expire and be deemed repealed 3 years after
it shall take effect; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule  or  regulation  necessary
for  the  implementation of this act on its effective date is authorized
and directed to be made and completed on or before such effective date.

                                 PART JJ

  Section 1. The opening paragraph of paragraph 7 of subdivision (a)  of
section 11 of the tax law, as amended by section 19 of part A of chapter
63 of the laws of 2005, is amended to read as follows:

S. 6259--C                         68

  "Qualified business" - A QUALIFIED SEED FUND OR an independently owned
and  operated  business that meets all of the following conditions as of
the time of the first investment in the business:
  S  2. Paragraph 10 of subdivision (a) of section 11 of the tax law, as
amended by section 19 of part A of chapter 63 of the laws  of  2005,  is
amended to read as follows:
  (10)  "Qualified  investment"  - the investment of cash by a certified
capital company in a qualified business for the purchase  of  any  debt,
equity  or  hybrid  security,  of  any  nature and description whatever,
including a debt instrument or security which has the characteristics of
debt but which provides for conversion into  equity  or  equity  partic-
ipation  instruments  such  as options or warrants, provided however, in
the case of certified capital programs three, four  [and],  five[,]  AND
SIX  that  any  such debt instrument have a maturity of at least twenty-
four months from the date such debt is incurred;  and  further  provided
that a certified capital company, after the investment and assuming full
conversion  and  exercise of any equity participation instruments, shall
not own more than fifty percent of the voting equity  of  the  qualified
business,  except in the case of a follow-on investment where a specific
exemption is granted by the department under subparagraph (D)  of  para-
graph one of subdivision (c) of this section OR AN INVESTMENT IN A QUAL-
IFIED  SEED  FUND  BY A PROGRAM SIX CERTIFIED CAPITAL COMPANY.  Further-
more, except in the case of  a  follow-on  investment,  if  a  certified
capital company owns more than fifteen percent of the equity in a compa-
ny  or  has  a  seat  on  the board of directors of such company, then a
certified capital company cannot  invest  in  such  company  unless  the
following conditions are met: (i) at least one other investor who is not
an  affiliate  of the certified capital company participates in the same
round of investment on the same terms and conditions  as  the  certified
capital  company;  and (ii) the certified capital company and its affil-
iates invest no more than fifty percent of the total investment made  in
that round of investment.
  S 3. Subdivision (a) of section 11 of the tax law is amended by adding
two new paragraphs 17 and 18 to read as follows:
  (17)  "QUALIFIED  SEED  FUND" - IS ANY FUND THAT HAS BEEN CERTIFIED BY
THE SUPERINTENDENT AS SUCH BY RULE OR REGULATION. THE SUPERINTENDENT MAY
CERTIFY PARTNERSHIPS, CORPORATIONS, TRUSTS, OR LIMITED LIABILITY  COMPA-
NIES  ORGANIZED  ON  A  FOR-PROFIT BASIS, OR NOT-FOR-PROFIT FUNDS, WHICH
SUBMIT AN APPLICATION TO BE DESIGNATED AS A QUALIFIED SEED FUND OPERATOR
IF SUCH APPLICANT IS LOCATED, HEADQUARTERED AND LICENSED  OR  REGISTERED
TO  CONDUCT  BUSINESS  IN  NEW YORK. QUALIFIED SEED FUNDS SHALL BE UNDER
EXPERIENCED PROFESSIONAL MANAGEMENT FAMILIAR WITH SEED  CAPITAL  INVEST-
MENT,  APPROPRIATE  BUSINESS  PRACTICES AND TECHNOLOGY-ORIENTED PRODUCTS
AND SERVICES, AND FORMED FOR THE PURPOSE OF PROVIDING PRIVATE EQUITY  TO
TECHNOLOGY-BASED COMPANIES IN THEIR FORMATIVE STAGES AND INVEST IN QUAL-
IFIED  ENTERPRISES  LOCATED  WITHIN NEW YORK STATE. QUALIFIED SEED FUNDS
MUST DEMONSTRATE (A) CAPACITY TO PERFORM DUE DILIGENCE IN MAKING INVEST-
MENT DECISIONS AND TO PROVIDE MANAGEMENT EXPERTISE AND OTHER VALUE-ADDED
SERVICES;  (B)  FINANCIAL  RESOURCES  FOR  IDENTIFYING   AND   INVESTING
SEED-STAGE  COMPANIES;  AND  (C) ABILITY TO EVALUATE EMERGING TECHNOLOGY
COMMERCIALIZATION.
  (18) "MATCH" - A CASH INVESTMENT IN OR LOAN TO  A  QUALIFIED  BUSINESS
MADE  NO MORE THAN THREE MONTHS BEFORE OR SIX MONTHS AFTER AN INVESTMENT
OF CERTIFIED CAPITAL BY A CERTIFIED CAPITAL COMPANY PROGRAM SIX IN  SUCH
QUALIFIED  BUSINESS,  OTHER THAN AN INVESTMENT MADE WITH CERTIFIED CAPI-
TAL. THE TERM SHALL ALSO INCLUDE CASH INVESTED IN OR LENT TO A QUALIFIED

S. 6259--C                         69

BUSINESS BY A CERTIFIED CAPITAL COMPANY THAT HAS  INVESTED  ONE  HUNDRED
PERCENT OF ITS CERTIFIED CAPITAL IN QUALIFIED BUSINESSES.
  S  4.  Paragraph 9 of subdivision (b) of section 11 of the tax law, as
amended by section 19 of part A of chapter 63 of the laws  of  2005,  is
amended to read as follows:
  (9)  The superintendent shall start accepting applications to become a
certified capital company in certified capital company  program  two  by
November  first, nineteen hundred ninety-nine, and shall start accepting
applications to become a certified capital company in certified  capital
company  program  three  by  August first, two thousand, and shall begin
accepting applications to become a certified capital company  in  certi-
fied  capital  company  program  four  by the later of August first, two
thousand four or not more than sixty days after the  effective  date  of
section  one of part D of chapter fifty-nine of the laws of two thousand
four and shall begin accepting applications to become a certified  capi-
tal  company  in  certified capital company program five by the later of
July first, two thousand five or not more  than  sixty  days  after  the
effective  date  of  the  chapter of the laws of two thousand five which
amended this paragraph, AND SHALL BEGIN ACCEPTING APPLICATIONS TO BECOME
A CERTIFIED CAPITAL COMPANY IN PROGRAM SIX BY JULY FIRST,  TWO  THOUSAND
TWELVE OR NOT MORE THAN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THE CHAP-
TER OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED THIS PARAGRAPH.
  S  5. Subparagraph (A) of paragraph 1 of subdivision (c) of section 11
of the tax law, as amended by section 19 of part A of chapter 63 of  the
laws of 2005, is amended to read as follows:
  (A)  Within  two years after the starting date of a specific certified
capital company program of a certified capital company, at  least  twen-
ty-five  percent  of  its  certified capital allocable to such certified
capital company program must be placed in qualified investments  AND  IN
THE  CASE  OF PROGRAM SIX, AT LEAST TEN PERCENT OF ITS CERTIFIED CAPITAL
MUST HAVE BEEN PLACED IN QUALIFIED SEED FUNDS. ALL QUALIFIED INVESTMENTS
MADE IN QUALIFIED SEED FUNDS UNDER PROGRAM SIX SHALL COUNT  TOWARDS  THE
TWENTY-FIVE PERCENT INVESTMENT REQUIREMENT OF THIS SUBPARAGRAPH.
  S  6. Subparagraph (C) of paragraph 1 of subdivision (c) of section 11
of the tax law, as amended by section 19 of part A of chapter 63 of  the
laws of 2005, is amended to read as follows:
  (C)  Within four years after the starting date of a specific certified
capital company program of a certified capital company, at  least  fifty
percent  of  its  certified  capital allocable to such certified capital
company program must be placed in qualified investments, at least  fifty
percent of which must have been placed in early stage businesses, except
that  in  the  case of program four and any subsequent program, at least
twenty-five percent of which must have been placed in early stage  busi-
nesses  and  an  additional  twenty-five percent of which must have been
placed in start-up businesses, and except that in the case of  qualified
investments  made in qualified businesses located in empire zones estab-
lished pursuant to article eighteen-B of the general municipal law under
the provisions of certified capital company program three, program  four
and program five from allocations of certified capital made specifically
for  such targeted investments in such zones, the requirement for quali-
fied investments in early stage and start-up businesses shall not apply.
AN INVESTMENT IN A QUALIFIED SEED FUND SHALL COUNT TOWARDS THE  REQUIRE-
MENT  UNDER  PROGRAM  SIX FOR QUALIFIED INVESTMENTS IN EARLY STAGE BUSI-
NESSES.

S. 6259--C                         70

  S 7. Subparagraph (D) of paragraph 1 of subdivision (c) of section  11
of  the tax law, as amended by section 19 of part A of chapter 63 of the
laws of 2005, is amended to read as follows:
  (D)  A  certified capital company, at least fifteen working days prior
to making a proposed investment in a specific business, shall certify in
writing to the superintendent that (i) the business in which it proposes
to invest meets the definition of a qualified business as set  forth  in
subdivision  (a)  of this section or, in the case of a follow-on invest-
ment, that such business continues to meet the requirements set forth in
subparagraphs (A) and (C) of paragraph seven of subdivision (a) of  this
section  and,  in  either case, an explanation of its determination that
the business meets such requirements, [and] (ii) with respect to  certi-
fied  capital  company  program  three,  program  four and program five,
whether or not such business is located in an  empire  zone  established
pursuant  to  article  eighteen-B  of the general municipal law or in an
underserved area outside an empire zone AND (III) WITH RESPECT TO CERTI-
FIED CAPITAL COMPANY PROGRAM SIX, WHETHER OR NOT SUCH INVESTMENT IS IN A
QUALIFIED SEED FUND.   The certification  to  the  superintendent  shall
include a sworn statement from the business in which the certified capi-
tal  company  proposes  to  invest,  which  statement shall evidence the
intention of the business to maintain its headquarters in New  York  and
conduct  its  primary business operations in the state of New York after
its receipt of the investment by the certified capital company.  If  the
superintendent determines that the business does not meet the definition
of a qualified business, or, in the case of a follow-on investment, that
such  business does not meet the requirements set forth in subparagraphs
(A) and (C) of paragraph seven of subdivision (a) of this section,  then
it  shall,  within the fifteen working day period prior to the making of
the proposed investment, notify the certified  capital  company  of  its
determination  and  provide  an  explanation thereof, provided, however,
that the department may, upon written request  of  a  certified  capital
company  and  at the discretion of the department, grant, in writing, an
exemption to the percentage limitations of paragraph ten of  subdivision
(a) of this section.
  S  8. Subparagraph (F) of paragraph 1 of subdivision (c) of section 11
of the tax law, as amended by section 19 of part A of chapter 63 of  the
laws of 2005, is amended to read as follows:
  (F)  If  within ten years after the starting date of certified capital
company program four [or], program  five  OR  PROGRAM  SIX,  and  within
twelve  years  after  the  starting  date  of  certified capital company
programs one, two, and three, one hundred percent of the certified capi-
tal allocable to a certified capital  company  participating  in  [such]
program  ONE,  TWO, THREE, FOUR OR FIVE has not been placed in qualified
investments AND, WITH RESPECT TO PROGRAM SIX, ONE HUNDRED PERCENT OF THE
CERTIFIED CAPITAL HAS NOT BEEN PLACED IN QUALIFIED INVESTMENTS WITH  TEN
PERCENT OF SUCH AMOUNT BEING PLACED IN QUALIFIED SEED FUNDS, the specif-
ic  certified  capital  company  shall no longer be permitted to receive
management fees; provided that such restriction shall not apply (i) with
respect to certified capital company programs one, two,  and  three,  to
any  certified  capital  company  that has not, prior to October thirty-
first, two thousand four, received, as opposed to accrued,  any  manage-
ment  fees,  or  (ii)  with  respect  to  any  certified capital company
program, to a certified capital company in which at least fifty  percent
of  the voting stock, capital, membership interests, or other beneficial
ownership interests, as the case may be, are owned by an entity that  is
managed, directly or indirectly, by a non-profit corporation.

S. 6259--C                         71

  S  9.   Paragraph 1 of subdivision (c) of section 11 of the tax law is
amended by adding a new subparagraph (G) to read as follows:
  (G)  IF  WITHIN  ONE  YEAR  OF  THE STARTING DATE OF CERTIFIED CAPITAL
COMPANY PROGRAM SIX, THE CERTIFIED CAPITAL COMPANY HAS  NOT  ACHIEVED  A
MATCH OF AT LEAST ONE HUNDRED PERCENT OF THE AMOUNT OF QUALIFIED INVEST-
MENTS  MADE BY SUCH CERTIFIED CAPITAL COMPANY WITH PROGRAM SIX CERTIFIED
CAPITAL AS OF SUCH DATE, THE SPECIFIC CERTIFIED  CAPITAL  COMPANY  SHALL
NOT  BE  PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT HAS ACHIEVED SUCH
MATCH. IF WITHIN THREE YEARS OF THE STARTING DATE OF  CERTIFIED  CAPITAL
COMPANY  PROGRAM  SIX,  THE CERTIFIED CAPITAL COMPANY HAS NOT ACHIEVED A
MATCH OF AT LEAST ONE HUNDRED PERCENT OF THE AMOUNT OF QUALIFIED INVEST-
MENTS MADE BY SUCH CERTIFIED CAPITAL COMPANY WITH PROGRAM SIX  CERTIFIED
CAPITAL  COMPANY AS OF SUCH DATE, THE SPECIFIC CERTIFIED CAPITAL COMPANY
SHALL NOT BE PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT HAS  ACHIEVED
SUCH MATCH. IF WITHIN FIVE YEARS OF THE STARTING DATE OF CERTIFIED CAPI-
TAL  COMPANY PROGRAM SIX, THE CERTIFIED CAPITAL COMPANY HAS NOT ACHIEVED
A MATCH OF AT LEAST ONE HUNDRED  PERCENT  OF  THE  AMOUNT  OF  QUALIFIED
INVESTMENTS  MADE  BY  SUCH  CERTIFIED  CAPITAL COMPANY WITH PROGRAM SIX
CERTIFIED CAPITAL COMPANY AS OF SUCH DATE, THE SPECIFIC CERTIFIED  CAPI-
TAL  COMPANY  SHALL NOT BE PERMITTED TO RECEIVE MANAGEMENT FEES UNTIL IT
HAS ACHIEVED SUCH MATCH.
  S 10.  Subparagraph (A) of paragraph 6 of subdivision (c)  of  section
11  of  the tax law, as amended by section 19 of part A of chapter 63 of
the laws of 2005, is amended to read as follows:
  (A) As soon as practicable after the receipt of certified  capital  or
an  irrevocable  funding  commitment  subject  only to the receipt of an
allocation pursuant to subdivision (h) of this section, (i) the name  of
each  certified  investor from which the certified capital was received,
including such certified investor's insurance tax identification number;
(ii) the amount of each certified  investor's  investment  of  certified
capital; and (iii) the date on which the certified capital was received.
Provided,  however,  that  requests  for  allocation of tax credits with
respect to certified capital company program two  by  certified  capital
companies  on  behalf of their certified investors which are received by
the superintendent on or before  March  first,  two  thousand  shall  be
treated  as  having  been  received on March first, two thousand for tax
credits to be utilized in two thousand one, and if  satisfactory,  shall
be  given  equal  priority  for  allocation, and provided, however, that
requests for allocation of tax credits with respect to certified capital
company program three by certified capital companies on behalf of  their
certified  investors  which  are  received  by  the superintendent on or
before December first, two thousand shall  be  treated  as  having  been
received  on December first, two thousand for tax credits to be utilized
in two thousand two, and if satisfactory, shall be given equal  priority
for  allocation,  and provided, however, that requests for allocation of
tax credits with respect to certified capital company  program  four  by
certified capital companies on behalf of their certified investors which
are  received  by  the  superintendent  on or before December first, two
thousand four shall be treated  as  having  been  received  on  December
first,  two thousand four for tax credits to be utilized in two thousand
six, and if satisfactory, shall be given equal priority for  allocation,
and  provided, however, that requests for allocation of tax credits with
respect to certified capital company program five by  certified  capital
companies  on  behalf of their certified investors which are received by
the superintendent on or before the later of  (i)  November  first,  two
thousand  five  and (ii) the one hundred twentieth day after the date on

S. 6259--C                         72

which the superintendent began accepting applications for  certification
in  connection  with  certified capital company program five pursuant to
paragraph nine of subdivision (b) of this section shall  be  treated  as
having  been  received on such later date for tax credits to be utilized
in two thousand seven, and if satisfactory, shall be given equal priori-
ty for allocation, AND PROVIDED, HOWEVER, THAT REQUESTS  FOR  ALLOCATION
OF  TAX CREDITS WITH RESPECT TO CERTIFIED CAPITAL COMPANY PROGRAM SIX BY
CERTIFIED CAPITAL COMPANIES ON BEHALF OF THEIR CERTIFIED INVESTORS WHICH
ARE RECEIVED BY THE SUPERINTENDENT ON OR BEFORE THE LATER OF (I)  NOVEM-
BER  FIRST,  TWO  THOUSAND ELEVEN AND (II) THE ONE HUNDRED TWENTIETH DAY
AFTER THE DATE ON WHICH THE SUPERINTENDENT BEGAN ACCEPTING  APPLICATIONS
FOR  CERTIFICATION  IN  CONNECTION  WITH  CERTIFIED  CAPITAL PROGRAM SIX
PURSUANT TO PARAGRAPH NINE OF SUBDIVISION (B) OF THIS SECTION  SHALL  BE
TREATED AS HAVING BEEN RECEIVED ON SUCH LATER DATE FOR TAX CREDITS TO BE
UTILIZED  IN  TWO  THOUSAND FIFTEEN, AND IF SATISFACTORY, SHALL BE GIVEN
EQUAL PRIORITY FOR ALLOCATION.
  S 11. Subparagraph (B) of paragraph 6 of subdivision (c) of section 11
of the tax law, as amended by section 19 of part A of chapter 63 of  the
laws of 2005, is amended to read as follows:
  (B)  On  an  annual  basis,  on or before January thirty-first of each
year, (i) the amount of the certified capital company's certified  capi-
tal  at  the  end of the immediately preceding year; (ii) whether or not
the certified capital company has invested more than fifteen percent  of
its  total  certified  capital  in any one business; (iii) all qualified
investments that the certified capital company made during the  previous
calendar year, including the number of employees of each qualified busi-
ness in which it has made investments at the time of such investment and
as  of  December first of the preceding calendar year. For any qualified
business where the certified capital company no longer  has  an  invest-
ment, the certified capital company shall provide employment figures for
such  company  as  of the last day before the investment was terminated.
Such report shall provide a separate accounting by each certified  capi-
tal company program; [and] (iv) all qualified investments made in empire
zones  and underserved areas outside such empire zones as required under
certified capital  company  program  three,  certified  capital  company
program  four  and  certified capital company program five; AND (V) WITH
RESPECT TO CERTIFIED CAPITAL COMPANY PROGRAM SIX, ALL QUALIFIED  INVEST-
MENTS MADE IN UNDERSERVED AREAS, ALL QUALIFIED INVESTMENTS MADE IN QUAL-
IFIED  SEED FUNDS, INCLUDING THE NUMBER OF EMPLOYEES OF EACH BUSINESS IN
WHICH A QUALIFIED SEED FUND HAS MADE INVESTMENTS AT  THE  TIME  OF  SUCH
INVESTMENT  AND  AS OF DECEMBER FIRST OF THE PRECEDING CALENDAR YEAR AND
THE MATCH ACHIEVED BY THE CERTIFIED CAPITAL COMPANY.   FOR ANY  BUSINESS
WHERE THE QUALIFIED SEED FUND NO LONGER HAS AN INVESTMENT, THE CERTIFIED
CAPITAL  COMPANY SHALL PROVIDE EMPLOYMENT FIGURES FOR SUCH COMPANY AS OF
THE LAST DAY BEFORE THE INVESTMENT WAS TERMINATED.
  S 12. Paragraph 1 of subdivision (d) of section 11 of the tax law,  as
amended  by  section  19 of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
  (1) A certified capital company may make  qualified  distributions  at
any  time.  In  order for a certified capital company to make a distrib-
ution other than a  qualified  distribution  from  a  certified  capital
company program, to its equity holders, either (A) the aggregate cumula-
tive  amount of all qualified investments for such program must equal or
exceed one hundred percent of its certified capital  allocable  to  such
certified  capital  company program AND WITH RESPECT TO PROGRAM SIX, THE
CERTIFIED CAPITAL COMPANY MUST HAVE ACHIEVED A MATCH OF AT LEAST  NINETY

S. 6259--C                         73

PERCENT  OF  THE  CERTIFIED  CAPITAL ALLOCABLE TO SUCH CERTIFIED CAPITAL
COMPANY, or (B) it must have received written authorization to make such
distribution from the superintendent.  In no event, however,  shall  any
such distribution to its equity holders, other than a qualified distrib-
ution,  be  made by a certified capital company from a certified capital
company program unless an amount equal cumulatively to at  least  ninety
percent  of  its certified capital of such program is invested in compa-
nies that conduct their principal business operations in New York state.
  S 13. Paragraph 5 of subdivision (e) of section 11 of the tax law,  as
amended  by  section  19 of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
  (5) Once a certified capital company has invested  an  amount  cumula-
tively  equal  to  one  hundred  percent  of  its certified capital with
respect to a particular certified capital company program  in  qualified
investments  and  has met all other requirements under this subdivision,
INCLUDING THE REQUIREMENT THAT A PROGRAM SIX CERTIFIED  CAPITAL  COMPANY
INVEST  TEN PERCENT OF ITS CERTIFIED CAPITAL IN QUALIFIED SEED FUNDS AND
ACHIEVE A MATCH OF AT LEAST NINETY  PERCENT  OF  THE  CERTIFIED  CAPITAL
ALLOCABLE  TO  SUCH  CERTIFIED  CAPITAL  COMPANY,  the certified capital
company shall no longer be subject to regulation by  the  superintendent
and shall no longer be subject to the requirements of subdivision (c) of
this  section  with  respect  to such program. Upon receiving documented
certification by a certified capital company that it has invested,  WITH
RESPECT  TO  PROGRAMS ONE, TWO, THREE, FOUR AND FIVE, an amount equal to
one hundred percent of  its  certified  capital  AND,  WITH  RESPECT  TO
PROGRAM  SIX,  AN  AMOUNT  EQUAL TO ONE HUNDRED PERCENT OF ITS CERTIFIED
CAPITAL WITH TEN PERCENT OF SUCH CERTIFIED CAPITAL INVESTED IN QUALIFIED
SEED FUNDS AND, WITH RESPECT TO PROGRAM SIX,  ACHIEVED  A  MATCH  OF  AT
LEAST  NINETY  PERCENT OF THE CERTIFIED CAPITAL ALLOCABLE TO SUCH CERTI-
FIED CAPITAL COMPANY, the department shall have  sixty  days  to  notify
such  certified capital company that it has or has not met such require-
ment with a reason for such determination if it has not, in the judgment
of the department, met such requirement.  If  the  department  does  not
provide  such  notification  within  sixty  days,  the certified capital
company shall then be deemed to have met such requirement.
  S 14. Subdivision (h) of section 11 of  the  tax  law  is  amended  by
adding a new paragraph 6 to read as follows:
  (6)  CERTIFIED  CAPITAL  COMPANY  PROGRAM SIX. THE AGGREGATE AMOUNT OF
CERTIFIED CAPITAL FOR WHICH TAXPAYERS MAY BE ALLOCATED AND  ALLOWED  TAX
CREDITS  PURSUANT  TO  THIS  PARAGRAPH  AND  SUBDIVISION  (K) OF SECTION
FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER MAY NOT EXCEED ONE HUNDRED  FIFTY
MILLION  DOLLARS FOR CALENDAR YEAR TWO THOUSAND FIFTEEN, WHICH CERTIFIED
CAPITAL MAY BE INVESTED IN  CERTIFIED  CAPITAL  COMPANIES  BEGINNING  IN
CALENDAR YEAR TWO THOUSAND ELEVEN.
  DURING  ANY  CALENDAR  YEAR  IN WHICH THE LIMITATION DESCRIBED IN THIS
PARAGRAPH WILL LIMIT THE AMOUNT OF CERTIFIED CAPITAL, CERTIFIED  CAPITAL
WILL  BE ALLOCATED IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING OF
INFORMATION DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH SIX  OF  SUBDIVI-
SION  (C) OF THIS SECTION. THE SUPERINTENDENT SHALL ADVISE ANY CERTIFIED
CAPITAL COMPANY IN WRITING, WITHIN FIFTEEN  DAYS  AFTER  RECEIVING  SUCH
FILING, WHETHER THE LIMITATIONS OF THIS PARAGRAPH THEN IN EFFECT WILL BE
APPLICABLE WITH RESPECT TO THE INVESTMENTS AND CREDITS DESCRIBED IN SUCH
FILING WITH THE SUPERINTENDENT.
  CERTIFIED CAPITAL MAY BE RAISED BY EACH CERTIFIED CAPITAL COMPANY WITH
RESPECT  TO CERTIFIED CAPITAL COMPANY PROGRAM SIX AT ANY TIME SUBSEQUENT
TO ITS CERTIFICATION DATE, AND CREDITS SHALL BE ALLOCATED TO AND IRREVO-

S. 6259--C                         74

CABLY VESTED BY THE STATE IN CERTIFIED INVESTORS AT  THE  TIME  OF  EACH
SUCH  INVESTMENT  AS  PROVIDED  IN THIS PARAGRAPH, ALTHOUGH SUCH CREDITS
SHALL NOT BE FIRST ALLOWED OR INCURRED FOR STATE TAX PURPOSES, UNTIL, AT
THE  EARLIEST,  TAX YEARS BEGINNING IN TWO THOUSAND FIFTEEN. IN ORDER TO
SATISFY THE REQUIREMENTS OF PARAGRAPH FIVE OF SUBDIVISION  (E)  OF  THIS
SECTION,  A  CERTIFIED  CAPITAL  COMPANY MUST HAVE MADE, ON A CUMULATIVE
BASIS, (A) AN AMOUNT OF QUALIFIED INVESTMENTS  IN  QUALIFIED  BUSINESSES
LOCATED  IN UNDERSERVED AREAS EQUAL TO AT LEAST TWO-THIRDS OF THE CERTI-
FIED CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY  WITH  RESPECT  TO
CERTIFIED  CAPITAL  COMPANY  PROGRAM  SIX,  (B) QUALIFIED INVESTMENTS IN
QUALIFIED SEED FUNDS IN AN AMOUNT EQUAL TO AT LEAST TEN PERCENT  OF  THE
CERTIFIED  CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY WITH RESPECT
TO CERTIFIED CAPITAL COMPANY PROGRAM SIX AND (C)  QUALIFIED  INVESTMENTS
IN  QUALIFIED  BUSINESSES  THAT ARE INVOLVED IN COMMERCE FOR THE PRIMARY
PURPOSE OF DEVELOPING AND MANUFACTURING PRODUCTS AND SYSTEMS COVERED  BY
THE  ACTIVITIES SET FORTH IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW AND HAVE A  RATIO
OF  RESEARCH  AND  DEVELOPMENT EXPENDITURES TO NET SALES WHICH EQUALS OR
EXCEEDS SIX PERCENT DURING THE FISCAL  YEAR  IMMEDIATELY  PRECEDING  THE
QUALIFIED INVESTMENT IN AN AMOUNT EQUAL TO AT LEAST THIRTY-THREE PERCENT
OF  THE  CERTIFIED CAPITAL RAISED BY SUCH CERTIFIED CAPITAL COMPANY WITH
RESPECT TO PROGRAM SIX; PROVIDED, HOWEVER, THAT  ALL  QUALIFIED  INVEST-
MENTS  IN QUALIFIED SEED FUNDS SHALL COUNT TOWARD THE AMOUNT REQUIRED BY
SUBPARAGRAPH (C) OF THIS PARAGRAPH.
  S 15. Subdivision (i) of section 11 of the  tax  law,  as  amended  by
section  19  of  part A of chapter 63 of the laws of 2005, is amended to
read as follows:
  (i) Maximum certified capital. The maximum amount of certified capital
per certified capital company program invested in one or more  certified
capital  companies allowed in any one year to any one certified investor
shall not exceed ten  million  dollars  for  certified  capital  company
programs  one and three, [and] eight million dollars for certified capi-
tal company programs two, four and five,  AND  FIFTEEN  MILLION  DOLLARS
FROM  CERTIFIED  CAPITAL  COMPANY  PROGRAM  SIX for such year, provided,
however, that if the aggregate amount  of  certified  capital  for  such
year,  as  set  forth  in  subdivision (h) of this section, has not been
reached sixty days prior to the end of the year to which such  aggregate
amount  applies, the provisions of this subdivision shall cease to apply
for the remainder of such year. In addition, the aggregate amount of tax
credits allowed in any taxable year to any affiliated group of taxpayers
in relation to certified capital may not  exceed  such  maximum  amount,
whether  or not such taxpayers file a combined return pursuant to subdi-
vision (f) of section fifteen  hundred  fifteen  of  this  chapter.  For
purposes  of  the  preceding sentence, the term "affiliated group" shall
have the same meaning as described  in  section  1504  of  the  internal
revenue code, except that the references to "at least eighty percent" in
such section 1504 shall be read as "more than fifty percent".
  S  16.  Subdivision  (j)  of  section 11 of the tax law, as amended by
section 19 of part A of chapter 63 of the laws of 2005,  is  amended  to
read as follows:
  (j)  Reports.  The  superintendent  shall  report to the governor, the
temporary president of the senate, and the speaker of the  assembly,  on
or  before  June  first of each year beginning in the year two thousand,
the number of certified capital companies holding certified capital; the
amount of certified capital invested in each certified capital  company;
the  cumulative  amount that each certified capital company has invested

S. 6259--C                         75

as of January first of the year two thousand and  the  cumulative  total
each year thereafter; the cumulative amount that the investments of each
certified capital company have leveraged in terms of capital invested by
other  sources  of  capital  in qualified businesses at the same time or
subsequent to investments made by a certified capital  company  in  such
businesses;  the  total amount of tax credits granted under this section
each year that credits have been awarded under this section and subdivi-
sion (k) of section fifteen hundred eleven of this chapter; the perform-
ance of each certified capital company with regard to  the  requirements
for  recertification  set  forth in subdivision (c) of this section; the
classification of companies in which each certified capital company  has
invested  according  to industrial sector and size of company; the total
gross number of jobs created by investments made by each certified capi-
tal company using certified capital and the number of jobs retained; the
location of companies  in  which  each  certified  capital  company  has
invested  in  a  manner  to  indicate  if the requirements for qualified
investments in qualified businesses located in empire zones  established
pursuant  to  article  eighteen-B of the general municipal law set forth
for programs three, four and five and in underserved areas outside  such
empire  zones  have  been met; the total gross number of jobs created in
empire zones established pursuant to article eighteen-B of  the  general
municipal law and in underserved areas outside such empire zones made by
each  certified  capital  company  using  certified capital in certified
capital company programs three, four and five,  reported  by  geographic
location of each empire zone and underserved area and the number of jobs
retained;  and those certified capital companies that have been decerti-
fied, or have had their certifications revoked,  including  the  reasons
for  decertification  or  revocation; THE LOCATION OF COMPANIES IN WHICH
EACH CERTIFIED CAPITAL COMPANY HAS INVESTED IN A MANNER TO  INDICATE  IF
THE  REQUIREMENTS  FOR  QUALIFIED  INVESTMENTS  IN  QUALIFIED BUSINESSES
LOCATED IN UNDERSERVED AREAS AS SET FORTH  IN  PROGRAM  SIX;  THE  TOTAL
GROSS  NUMBER OF JOBS CREATED IN UNDERSERVED AREAS USING CERTIFIED CAPI-
TAL IN CERTIFIED CAPITAL COMPANY PROGRAM SIX  AND  THE  NUMBER  OF  JOBS
RETAINED;  THE  AMOUNT OF QUALIFIED INVESTMENTS MADE INTO QUALIFIED SEED
FUNDS FOR PROGRAM SIX CERTIFIED CAPITAL COMPANIES; THE CLASSIFICATION OF
COMPANIES IN WHICH EACH QUALIFIED SEED FUND HAS  INVESTED  ACCORDING  TO
INDUSTRIAL  SECTOR  AND  SIZE OF COMPANY; THE TOTAL GROSS NUMBER OF JOBS
CREATED BY INVESTMENTS MADE BY EACH QUALIFIED SEED FUND USING THE NUMBER
OF JOBS RETAINED.
  S 17.  Paragraph 2 of subdivision (k) of section 1511 of the tax  law,
as amended by section 2 of part S of chapter 407 of the laws of 1999, is
amended to read as follows:
  (2) Ten percent of such credit shall be allowed in the taxable year to
which  such  investment  is allocated pursuant to PARAGRAPHS ONE THROUGH
FIVE OF subdivision (h) of section eleven of this chapter and in each of
the nine following taxable years. TWENTY-FIVE  PERCENT  OF  SUCH  CREDIT
SHALL  BE  ALLOWED IN THE TAXABLE YEAR TO WHICH SUCH INVESTMENT IS ALLO-
CATED PURSUANT TO PARAGRAPH SIX OF SUBDIVISION (H) OF SECTION ELEVEN  OF
THIS  CHAPTER AND IN EACH OF THE THREE FOLLOWING TAXABLE YEARS. In addi-
tion, in any taxable year subsequent  to  the  taxable  year  for  which
[such]  ANY investment is so allocated UNDER SUBDIVISION (H), any amount
carried forward under paragraphs three and four of this subdivision  may
be carried forward indefinitely until such credits are utilized.
  S  18. Section 84 of part A of chapter 62 of the laws of 2011 relating
to constituting chapter 18-A of the consolidated laws relating to finan-
cial services is REPEALED.

S. 6259--C                         76

  S 19. This act shall take effect immediately.

                                 PART KK

  Section  1.    Subparagraph  (A)  of  paragraph  1 of subdivision a of
section 1612 of the tax law, as amended by chapter 147 of  the  laws  of
2010, is amended to read as follows:
  (A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
  (i)  [if the licensee holds a license issued pursuant to the alcoholic
beverage control law to sell alcoholic beverages for consumption on  the
premises, then not less than twenty-five percent of the gross sales must
result from sales of food;
  (ii)]  if  the licensee does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for  consump-
tion  on  the  premises,  then  the  premises must have a minimum square
footage greater than two thousand five hundred square feet;
  [(iii)] (II)  notwithstanding  the  foregoing  provisions,  television
equipment  that  automatically displays the results of such drawings may
be installed and used without regard to the percentage of food sales  or
the square footage if such premises are used as:
  (I) a commercial bowling establishment, or
  (II)  a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;
  S 2. This act shall take effect immediately.

                                 PART LL

  Section 1.  Paragraph 6 of subdivision (b) of section 21  of  the  tax
law,  as  amended  by  section 1 of part H of chapter 577 of the laws of
2004, subparagraph (B) and the closing paragraph as amended by section 1
of part G of chapter 62 of the laws of  2006,  is  amended  to  read  as
follows:
  (6) Environmental zones (EN-Zones). An "environmental zone" shall mean
an  area designated as such by the commissioner of economic development.
Such areas so designated are areas which are  census  tracts  and  block
numbering  areas  which,  as  of  the [two thousand] MOST RECENT census,
satisfy either of the following criteria:
  (A) areas that have both:
  (i) a poverty rate of at least twenty percent for the  year  to  which
the data relate; and
  (ii)  an  unemployment  rate of at least one and one-quarter times the
statewide unemployment rate for the year to which the data relate, or;
  (B) areas that have a poverty rate of at least two times  the  poverty
rate for the county in which the areas are located for the year to which
the  data relate [provided, however, that a qualified site shall only be
deemed to be located in an environmental zone  under  this  subparagraph
(B)  if such site was the subject of a brownfield site cleanup agreement
pursuant to section 27-1409 of the environmental conservation  law  that
was entered into prior to September first, two thousand ten].
  Such  designation  shall  be made and a list of all such environmental
zones shall be established by the commissioner of  economic  development
no later than December thirty-first, two thousand [four provided, howev-
er, that a qualified site shall only be deemed to be located in an envi-
ronmental zone under subparagraph (B) of this paragraph if such site was
the  subject  of a brownfield site cleanup agreement pursuant to section

S. 6259--C                         77

27-1409 of the environmental conservation  law  that  was  entered  into
prior to September first, two thousand ten] TWELVE.
  S  2.  Paragraph 5 of subdivision (a) of section 22 of the tax law, as
amended by section 4 of part H of chapter  577  of  the  laws  of  2004,
subparagraph  (B)  and  the closing paragraph as amended by section 2 of
part G of chapter 62 of the laws of 2006, is amended to read as follows:
  (5) Environmental zones (EN-Zones). An "environmental zone" shall mean
an area designated as such by the commissioner of economic  development.
Such  areas  so  designated  are areas which are census tracts and block
numbering areas which, as of the  [two  thousand]  MOST  RECENT  census,
satisfy either of the following criteria:
  (A) areas that have both:
  (i)  a  poverty  rate of at least twenty percent for the year to which
the data relate;
  (ii) an unemployment rate of at least one and  one-quarter  times  the
statewide unemployment rate for the year to which the data relate, or;
  (B)  areas  that have a poverty rate of at least two times the poverty
rate for the county in which the areas are located for the year to which
the data relate[, provided, however, that a qualified site shall only be
deemed to be located in an environmental zone  under  this  subparagraph
(B)  if such site was the subject of a brownfield site cleanup agreement
pursuant to section 27-1409 of the environmental conservation  law  that
was entered into prior to September first, two thousand ten].
  Such  designation  shall  be made and a list of all such environmental
zones shall be established by the commissioner of  economic  development
no later than December thirty-first, two thousand [four provided, howev-
er, that a qualified site shall only be deemed to be located in an envi-
ronmental zone under subparagraph (B) of this paragraph if such site was
the  subject  of a brownfield site cleanup agreement pursuant to section
27-1409 of the environmental conservation  law  that  was  entered  into
prior to September first, two thousand ten] TWELVE.
  S  3.  Subdivision  (a)  of  section  23 of the tax law, as amended by
section 10 of part H of chapter 577 of the laws of 2004, is  amended  to
read as follows:
  (a)  Allowance  of  credit.  General.  A taxpayer subject to tax under
article nine, nine-A, twenty-two, thirty-two  or  thirty-three  of  this
chapter  shall  be  allowed  a  credit against such tax, pursuant to the
provisions referenced in subdivision (e) of this section. The amount  of
such  credit  shall  be  equal to the lesser of [thirty] NINETY thousand
dollars or fifty percent of the premiums paid on or after  the  date  of
the  brownfield  site cleanup agreement executed by the taxpayer and the
department of environmental conservation pursuant to section 27-1409  of
the  environmental  conservation  law  by the taxpayer for environmental
remediation insurance issued with respect to a qualified site.
  S 4. Section 31 of part H of chapter 1 of the laws  of  2003  amending
the  tax  law  relating  to  brownfield  redevelopment  tax  credits, is
REPEALED.
  S 5. This act shall take effect immediately.

                                 PART MM

  Section 1.  The tax law is amended by adding a new section 608 to read
as follows:
  S 608. LIMIT UPON THE PERSONAL INCOME TAX LEVY BY  THE  STATE  OF  NEW
YORK.

S. 6259--C                         78

  1.  UNLESS  OTHERWISE  PROVIDED  BY LAW, THE AMOUNT OF PERSONAL INCOME
TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF THE STATE OF NEW YORK  SHALL
NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN USED IN THIS SECTION:
  (A)  "ALLOWABLE  LEVY  GROWTH  FACTOR" FOR ALL FISCAL YEARS THAT BEGIN
AFTER TWO THOUSAND TWELVE SHALL BE  THE  HIGHER  OF:  (I)  ONE  AND  TWO
ONE-HUNDREDTHS;  OR  (II) THE SUM OF NINETY-NINE ONE-HUNDREDTHS PLUS THE
INFLATION FACTOR.
  (B) "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX  LEVY  FOR
THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF  ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
  (D) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE  OF  THE
NATIONAL  CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL  YEAR  MINUS  THE  AVERAGE  OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF  THE  PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  (E) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE STATE IMMEDIATELY
PRECEDING THE COMING FISCAL YEAR.
  (F) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY OR ON BEHALF OF THE STATE PURSUANT TO THIS SECTION FOR  FISCAL  YEARS
BEGINNING AFTER TWO THOUSAND TWELVE.
  (G)  "TAX"  OR  "TAXES"  MEANS  PERSONAL  INCOME TAXES LEVIED BY OR ON
BEHALF OF THE STATE.
  3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS  SECTION,
BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS AFTER TWO THOUSAND TWELVE,
THE STATE SHALL NOT ADOPT A BUDGET THAT REQUIRES  A  TAX  LEVY  THAT  IS
GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR.
  (B)  THE  STATE  SHALL  CALCULATE THE TAX LEVY LIMIT APPLICABLE TO THE
COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
  (I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR  THE  PRIOR  FISCAL
YEAR.
  (II) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (III) ADD THE AVAILABLE CARRYOVER, IF ANY.
  4.  IN  THE  EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT BY MORE THAN ONE  PERCENT  OF  THE  TAX  LEVY
LIMIT,  THE STATE SHALL REBATE THE TOTAL AMOUNT THAT THE ACTUAL TAX LEVY
EXCEEDS THE TAX LEVY LIMIT SO THAT  EACH  INDIVIDUAL  FILER  RECEIVES  A
REBATE  OF  EQUAL AMOUNT ROUNDED DOWN TO THE NEAREST CENT, PROVIDED THAT
NO INDIVIDUAL SHALL RECEIVE A REBATE OF A GREATER AMOUNT THAN THE INCOME
TAXES PAID DURING THE SAME FISCAL YEAR.  THESE REBATES SHALL  BE  MAILED
IN THE FORM OF CHECKS PAYABLE TO THE FILING INDIVIDUAL NO LATER THAN THE
FIRST OF SEPTEMBER FOLLOWING THE END OF EACH FISCAL YEAR.
  5.  IN  THE  EVENT THE STATE'S ACTUAL TAX LEVY FOR A GIVEN FISCAL YEAR
EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT TO  THIS  SECTION  BY
LESS  THAN  ONE PERCENT OF THE TAX LEVY LIMIT, THE STATE SHALL PLACE THE
EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE  WITH  SUCH  REQUIRE-
MENTS  AS  THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH FUNDS

S. 6259--C                         79

AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR  THE  ENSUING
FISCAL YEAR.
  S  2.  This  act  shall  take  effect on the first day of January next
succeeding the approval and ratification by the people  of  a  constitu-
tional amendment to limit state spending.

                                 PART NN

  Section  1.  Subparagraph  (vi)  of  paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended 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 eligible
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 manufacturing,
processing, assembling, refining, mining, extracting, farming,  agricul-
ture,  horticulture,  floriculture,  viticulture  or commercial fishing.
However, the generation and distribution of  electricity,  the  distrib-
ution  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) 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), OR (B)  A  TAXPAYER  OR  A  COMBINED  GROUP  THAT
EMPLOYS  IN  NEW YORK DURING THE TAXABLE YEAR AT LEAST TWO THOUSAND FIVE
HUNDRED EMPLOYEES IN ANY OF THE QUALIFYING ACTIVITIES FOR A MANUFACTURER
DESCRIBED IN THIS SUBPARAGRAPH AND HAS PROPERTY IN  NEW  YORK  WHICH  IS
DESCRIBED IN CLAUSE (A) OF SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVI-
SION  TWELVE  OF  THIS  SECTION, THE ADJUSTED BASIS OF WHICH FOR FEDERAL
INCOME TAX PURPOSES AT THE CLOSE OF THE TAXABLE YEAR  IS  AT  LEAST  TEN
MILLION DOLLARS.  The commissioner shall establish guidelines and crite-
ria  that specify requirements by which a manufacturer may be classified

S. 6259--C                         80

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 crite-
ria, the commissioner shall endeavor that the total annual cost  of  the
lower rates shall not exceed twenty-five million dollars.
  S  2.  Subparagraph 2 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:
  (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
"manufacturer" shall mean a taxpayer which during the  taxable  year  is
principally  engaged  in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming,  agriculture,
horticulture, floriculture, viticulture or commercial fishing. Moreover,
for  purposes  of  computing  the capital base in a combined report, the
combined group shall be considered a "manufacturer" for purposes of this
subparagraph only if the combined group during the taxable year is prin-
cipally engaged in the activities set forth in this subparagraph, or any
combination thereof. A taxpayer or a combined group shall be "principal-
ly engaged" in activities described above if, during the  taxable  year,
more  than  fifty  percent  of  the  gross  receipts  of the taxpayer or
combined group, respectively, are derived from receipts from the sale of
goods produced by such activities. In computing a combined group's gross
receipts, intercorporate receipts shall be eliminated. A "qualified  New
York  manufacturer" is a manufacturer that has property in New York that
is described in clause (A) of  subparagraph  (i)  of  paragraph  (b)  of
subdivision  twelve of this section and either (i) the adjusted basis of
that property for federal income tax purposes at the close of the  taxa-
ble  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) a taxpayer that 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, OR (B) A TAXPAYER OR A COMBINED GROUP THAT EMPLOYS IN
NEW  YORK  DURING  THE  TAXABLE  YEAR AT LEAST TWO THOUSAND FIVE HUNDRED
EMPLOYEES IN  ANY  OF  THE  QUALIFYING  ACTIVITIES  FOR  A  MANUFACTURER
DESCRIBED  IN  THIS  SUBPARAGRAPH  AND HAS PROPERTY IN NEW YORK WHICH IS
DESCRIBED IN CLAUSE (A) OF SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVI-
SION TWELVE OF THIS SECTION, THE ADJUSTED BASIS  OF  WHICH  FOR  FEDERAL
INCOME  TAX  PURPOSES  AT  THE CLOSE OF THE TAXABLE YEAR IS AT LEAST TEN
MILLION DOLLARS.
  S 3. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2012.

                                 PART OO

  Section 1. Subparagraph (C) of  paragraph  1  of  subdivision  (i)  of
section 1136 of the tax law is REPEALED.
  S 2. This act shall take effect immediately.

                                 PART PP

S. 6259--C                         81

  Section  1.  Paragraph  1 of subsection (m) of section 1452 of the tax
law, as amended by section 4 of part J of chapter  61  of  the  laws  of
2011, is amended to read as follows:
  (1) Notwithstanding anything to the contrary contained in this section
other  than  subsection  (n)  of this section, a corporation that was in
existence before January first, two thousand eleven and was  subject  to
tax  under  article  nine-A  of  this  chapter for its last taxable year
beginning before January first, two thousand eleven, shall  continue  to
be  taxable  under  such  article  for all taxable years beginning on or
after January first, two thousand eleven and before January  first,  two
thousand thirteen. The preceding sentence shall not apply to any taxable
year during which such corporation is a banking corporation described in
paragraphs  one  through  eight  of  subsection  (a)  of  this  section.
Notwithstanding anything to the contrary contained in this section other
than subsection (n) of this section, a  banking  corporation  or  corpo-
ration  that  was in existence before January first, two thousand eleven
and was subject to tax under this article  for  its  last  taxable  year
beginning  before  January first, two thousand eleven, shall continue to
be taxable under this article for all  taxable  years  beginning  on  or
after  January  first, two thousand eleven and before January first, two
thousand thirteen [or in which] ONLY IF THE  CORPORATION  IS  A  BANKING
CORPORATION  AS  DEFINED IN SUBSECTION (A) OF THIS SECTION OR the corpo-
ration satisfies the requirements for a corporation to elect to be taxa-
ble  under  this  article.  Provided  further,  that  nothing  in   this
subsection  shall  prohibit  a  corporation  that  elected  pursuant  to
subsection (d) of this section to be taxable  under  article  nine-A  of
this  chapter  from  revoking  that  election  in  accordance  with such
subsection (d).
  For purposes of this paragraph, a corporation shall be  considered  to
be  subject  to  tax  under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven  of  this
chapter  for  such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if  such  corpo-
ration was not a taxpayer but was properly included in a combined return
filed  pursuant  to  subsection  (f)  or (g) of section fourteen hundred
sixty-two of this article for such taxable year. A corporation that  was
in existence before January first, two thousand eleven but first becomes
a  taxpayer  in  a taxable year beginning on or after January first, two
thousand eleven and before January first, two thousand  thirteen,  shall
be considered for purposes of this paragraph to have been subject to tax
under article nine-A of this chapter for its last taxable year beginning
before January first, two thousand eleven if such corporation would have
been  subject  to tax under such article for such taxable year if it had
been a taxpayer during such taxable year.  A  corporation  that  was  in
existence  before January first, two thousand eleven but first becomes a
taxpayer in a taxable year beginning on  or  after  January  first,  two
thousand  eleven  and before January first, two thousand thirteen, shall
be considered for purposes of this paragraph to have been subject to tax
under this article for its last taxable year  beginning  before  January
first,  two  thousand eleven if such corporation would have been subject
to tax under this article for such taxable year if it had been a taxpay-
er during such taxable year.
  S 2. Paragraph 1 of subdivision (l) of section 11-640 of the  adminis-
trative  code of the city of New York, as amended by section 5 of part J
of chapter 61 of the laws of 2011, is amended to read as follows:

S. 6259--C                         82

  (1) Notwithstanding anything to the contrary contained in this section
other than subdivision (m) of this section, a corporation  that  was  in
existence  before  January first, two thousand eleven and was subject to
tax under subchapter two of this  chapter  for  its  last  taxable  year
beginning  before  January first, two thousand eleven, shall continue to
be taxable under such subchapter for all taxable years beginning  on  or
after  January  first, two thousand eleven and before January first, two
thousand thirteen. The preceding sentence shall not apply to any taxable
year during which such corporation is a banking corporation described in
paragraphs one  through  eight  of  subdivision  (a)  of  this  section.
Notwithstanding anything to the contrary contained in this section other
than  subdivision  (m)  of this section, a banking corporation or corpo-
ration that was in existence before January first, two  thousand  eleven
and  was  subject to tax under this subchapter for its last taxable year
beginning before January first, two thousand eleven, shall  continue  to
be  taxable  under this subchapter for all taxable years beginning on or
after January first, two thousand eleven and before January  first,  two
thousand  thirteen  [or  in  which] ONLY IF THE CORPORATION IS A BANKING
CORPORATION AS DEFINED IN SUBDIVISION (A) OF THIS SECTION OR the  corpo-
ration satisfies the requirements for a corporation to elect to be taxa-
ble under this subchapter. Provided further, that nothing in this subdi-
vision shall prohibit a corporation that elected pursuant to subdivision
(d)  of  this section to be taxable under subchapter two of this chapter
from revoking that election in accordance with subdivision (d)  of  this
section.  For purposes of this paragraph, a corporation shall be consid-
ered to be subject to tax under subchapter two of  this  chapter  for  a
taxable  year  if  such  corporation was not a taxpayer but was properly
included in a combined report filed  pursuant  to  subdivision  four  of
section  11-605  of this chapter for such taxable year and a corporation
shall be considered to be subject to tax under  this  subchapter  for  a
taxable  year  if  such  corporation was not a taxpayer but was properly
included in a combined report filed pursuant to subdivision (f)  or  (g)
of section 11-646 of this part for such taxable year. A corporation that
was  in  existence  before  January first, two thousand eleven but first
becomes a taxpayer in a taxable  year  beginning  on  or  after  January
first,  two thousand eleven and before January first, two thousand thir-
teen, shall be considered for purposes of this paragraph  to  have  been
subject to tax under subchapter two of this chapter for its last taxable
year  beginning before January first, two thousand eleven if such corpo-
ration would have been subject to tax under  such  subchapter  for  such
taxable  year  if  it  had  been  a taxpayer during such taxable year. A
corporation that was in existence before  January  first,  two  thousand
eleven  but  first  becomes a taxpayer in a taxable year beginning on or
after January first, two thousand eleven and before January  first,  two
thousand thirteen, shall be considered for purposes of this paragraph to
have been subject to tax under this subchapter for its last taxable year
beginning  before January first, two thousand eleven if such corporation
would have been subject to tax under this subchapter  for  such  taxable
year if it had been a taxpayer during such taxable year.
  S 3. This act shall take effect immediately.

                                 PART QQ

  Section  1.  The insurance law is amended by adding a new section 7013
to read as follows:

S. 6259--C                         83

  S 7013. OBLIGATIONS FOR CERTAIN  TAXES.  CAPTIVE  INSURANCE  COMPANIES
LICENSED  PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND OPERATING UNDER
THIS ARTICLE OR THE APPLICABLE PROVISIONS OF  THIS  CHAPTER  AS  OF  THE
EFFECTIVE DATE OF THIS ARTICLE AND CEASING TO OPERATE UNDER SUCH LICENSE
AS OF DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE SHALL BE CONSIDERED AND
TREATED  FOR  TAX  PURPOSES  AS AN ADMITTED LICENSED INSURER. THE SUPER-
INTENDENT SHALL CERTIFY TO THE COMMISSIONER OF TAXATION AND FINANCE THAT
EACH CAPTIVE INSURER WHICH HAS BEEN SO LICENSED AND UNDER THE  JURISDIC-
TION  OF  THE  DEPARTMENT  OF FINANCIAL SERVICES WAS OPERATING AS A DULY
LICENSED INSURER DURING THIS PERIOD, INCLUDING HAVING PAID  ALL  ASSESS-
MENTS AND EXAMINATION FEES, AND ALL PREMIUM AND FRANCHISE TAXES.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the applicable effective date of Parts A through QQ of this act shall be
as specifically set forth in the last section of such Parts.

S6259D (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9059D
Law Section:
Budget Bills
Laws Affected:
Amd Various Laws, generally

S6259D (ACTIVE) - Bill Texts

view summary

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).

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

    S. 6259--D                                            A. 9059--D

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

                            January 17, 2012
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and recommitted to said committee -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee  on  Ways  and  Means -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee --  again  reported  from
  said  committee  with  amendments,  ordered  reprinted  as amended and
  recommitted to said committee -- again reported  from  said  committee
  with  amendments, ordered reprinted as amended and recommitted to said
  committee

AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
  erty tax law relating to oil and  gas  charges,  in  relation  to  the
  effective  date  of  such chapter (Part A); to amend the real property
  tax law and the tax  law,  in  relation  to  the  suspension  of  STAR
  exemptions  and  related benefits of persons who are delinquent in the
  payment of outstanding state tax liabilities (Part  B);  intentionally
  omitted  (Part  C); to amend chapter 109 of the laws of 2006, amending
  the tax law relating to providing exemptions, reimbursements and cred-
  its from various taxes for certain alternative fuels, in  relation  to
  extending  the alternative fuels tax exemptions (Part D); to amend the
  tax law, in relation to making technical amendments to the tax  treat-
  ment  of  diesel  fuel  to  reflect industry practice (Part E); inten-
  tionally omitted (Part F); to amend the tax law and part U of  chapter
  61 of the laws of 2011, amending the real property tax law, the gener-
  al  municipal law, the public officers law, the tax law, the abandoned
  property law, the state finance law and the administrative code of the
  city of New York, relating to establishing  standards  for  electronic

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-06-2

S. 6259--D                          2                         A. 9059--D

  real  property tax administration, allowing the department of taxation
  and finance to use  electronic  communication  means  to  furnish  tax
  notices  and other documents, mandatory electronic filing of tax docu-
  ments, debit cards issued for tax refunds, improving sales tax compli-
  ance  and repealing certain provisions of the tax law and the adminis-
  trative code of the city of New York relating thereto, in relation  to
  the  expiration  thereof  (Part G); intentionally omitted (Part H); to
  amend the tax law, in relation to extending the empire  state  commer-
  cial  production  tax credit; and to amend part V of chapter 62 of the
  laws of 2006 relating to the empire state  commercial  production  tax
  credit,  in  relation  to the effectiveness thereof (Part I); to amend
  the public housing law, in relation to the credit against  income  tax
  for  persons  or entities investing in low-income housing (Part J); to
  amend the tax law, in relation to extending the biofuel production tax
  credit; and to amend part X of chapter 62 of the laws of 2006,  amend-
  ing  the  tax  law  relating  to  providing  tax  credits  for biofuel
  production plants, in relation to the effectiveness thereof (Part  K);
  to  amend  chapter  58  of  the laws of 2006, relating to providing an
  enhanced earned income tax credit, in relation  to  the  effectiveness
  thereof  (Part  L);  intentionally  omitted (Part M); to amend the tax
  law, in relation to tax rates and exclusions  under  the  metropolitan
  commuter  transportation mobility tax for professional employer organ-
  izations and to amend part B of chapter 56 of the laws of 2011  amend-
  ing  the  tax  law  relating to the tax rates and exclusions under the
  metropolitan commuter transportation mobility tax, in relation to  the
  effectiveness  thereof  (Part  N);  to  amend  the racing, pari-mutuel
  wagering and breeding law,  in  relation  to  licenses  for  simulcast
  facilities,  sums  relating  to  track simulcast, simulcast of out-of-
  state thoroughbred races, simulcasting of races  run  by  out-of-state
  harness  tracks  and  distributions of wagers; to amend chapter 281 of
  the laws of 1994 amending the racing, pari-mutuel wagering and  breed-
  ing law and other laws relating to simulcasting and chapter 346 of the
  laws  of  1990  amending the racing, pari-mutuel wagering and breeding
  law and other laws relating to  simulcasting  and  the  imposition  of
  certain taxes, in relation to extending certain provisions thereof; to
  amend  the  racing, pari-mutuel wagering and breeding law, in relation
  to extending certain provisions thereof (Part O);  to  amend  the  tax
  law,  in  relation  to  the distribution of revenue collected from the
  corporate and utilities taxes imposed under sections 183  and  184  of
  the  tax  law;  and  providing  for the repeal of such provisions upon
  expiration thereof (Part P); to amend the tax law and the  administra-
  tive  code  of  the  city of New York, in relation to facilitating the
  compliance of room remarketers with their obligation to collect  sales
  tax on their sales of occupancy (Part Q); to amend the tax law and the
  administrative  code  of  the city of New York, in relation to transi-
  tional provisions relating to the enactment and implementation of  the
  federal  Gramm-Leach-Bliley  act  (Part  R);  to amend the tax law, in
  relation to video lottery gaming (Part S); to amend the labor law  and
  the  tax law, in relation to the deadline for employer applications to
  the New York youth tax credit program (Part T); and to provide for the
  administration of certain funds and accounts related  to  the  2012-13
  budget; authorizing certain payments and transfers; to amend the state
  finance law, in relation to school tax relief fund; to amend the state
  finance law, in relation to issuance of certificates of participation,
  variable  rate  bonds,  payments,  transfers and deposits of funds and
  investment of general funds, bond proceeds, and other funds not  imme-

S. 6259--D                          3                         A. 9059--D

  diately  required; to amend the public authorities law, in relation to
  state environmental infrastructure projects; to amend  chapter  61  of
  the  laws  of  2005,  relating  to providing for the administration of
  certain  funds  and  accounts  related  to  the  2005-2006  budget, in
  relation to  the  Division  of  Military  and  Naval  Affairs  Capital
  Projects;  to  amend  chapter 389 of the laws of 1997, relating to the
  financing of the correctional  facilities  improvement  fund  and  the
  youth facility improvement fund, in relation to the issuance of bonds;
  to  amend  the  private  housing  finance  law, in relation to housing
  program bonds and notes; to amend chapter 329 of  the  laws  of  1991,
  amending  the  state finance law and other laws relating to the estab-
  lishment of the dedicated highway and bridge trust fund,  in  relation
  to  the  issuance  of  bonds;  to amend the public authorities law, in
  relation to courthouse improvements and training facilities, metropol-
  itan transportation authority facilities, peace  bridge  projects  and
  issuance  of  bonds  by the dormitory authority; to amend the New York
  state urban  development  corporation  act,  in  relation  to  funding
  project  costs for the state university of New York college for nanos-
  cale and science engineering and  the  NY-SUNY  2020  challenge  grant
  program;  to amend chapter 57 of the laws of 2008, relating to provid-
  ing for the administration of certain funds and  accounts  related  to
  the  2008-2009  budget,  in  relation to the effectiveness thereof; to
  amend chapter 56 of the laws of 2009, relating to  providing  for  the
  administration  of  certain  funds and accounts related to the 2009-10
  budget, in relation to the effectiveness thereof; to amend chapter  56
  of  the  laws of 2010, relating to providing for the administration of
  certain funds and accounts related to the 2009-10 budget, in  relation
  to the effectiveness thereof; to amend chapter 61 of the laws of 2000,
  amending  the  public  authorities  law  relating  to the metropolitan
  transportation authority, the New York city transit authority, and the
  Triborough bridge and tunnel authority, in relation to  authorizations
  to  issue  bonds and notes; to repeal sections 90-b, 91-g, 92-a, 92-i,
  92-j, 92-m, 92-w, 94-c, 94-d, 96, 97-n,  97-o,  97-cc,  97-ff,  97-ss,
  97-fff, 97-uuu, 97-www, 97-aaaa, 97-bbbb, 99-g, 99-i and subdivision 5
  of section 97-rrr of the state finance law relating thereto; to repeal
  subdivision  5  of section 233-a and subdivision 3-a of section 378 of
  the education law relating thereto; to repeal paragraph f of  subdivi-
  sion  31 of section 1680 of the public authorities law relating to the
  reserve funds of private not-for-profit schools established  with  the
  dormitory  authority;  to  repeal  section 1022 of the private housing
  finance law relating to the rural housing assistance fund;  to  repeal
  section  12  of chapter 1040 of the laws of 1981 relating to penalties
  for violations of the lobbying act; to repeal chapter 50 of  the  laws
  of  1993  relating to making appropriations for the support of govern-
  ment; and providing for the repeal of certain provisions upon  expira-
  tion thereof (Part U)

  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 major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2012-2013
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through U. The effective date for each  particular
provision contained within such Part is set forth in the last section of

S. 6259--D                          4                         A. 9059--D

such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a 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. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas  charges,  as  amended  by
section  1  of  part II of chapter 56 of the laws of 2009, is amended to
read as follows:
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law  as  added  by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act  shall  remain  in  full  force  and
effect  until  March  31,  [2012] 2015, at which time section 593 of the
real property tax law as added by section  one  of  this  act  shall  be
repealed.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2012.

                                 PART B

  Section 1. Subdivision 3 of section 425 of the real property  tax  law
is amended by adding a new paragraph (f) to read as follows:
  (F)  COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S ELIGIBILITY
FOR THE STAR EXEMPTION MUST NOT BE SUSPENDED  PURSUANT  TO  SECTION  ONE
HUNDRED  SEVENTY-ONE-Y  OF  THE  TAX  LAW  DUE TO THE PAST-DUE STATE TAX
LIABILITIES OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY  PROVISION
OF  LAW  TO  THE  CONTRARY,  WHERE  A  PROPERTY'S ELIGIBILITY FOR A STAR
EXEMPTION HAS BEEN SUSPENDED PURSUANT TO  SUCH  SECTION,  THE  FOLLOWING
PROVISIONS SHALL BE APPLICABLE:
  (I)  THE  PROPERTY  SHALL  BE  INELIGIBLE FOR A BASIC OR ENHANCED STAR
EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
ANCE OF NOTICE BY THE DEPARTMENT OF THE SUSPENSION  OF  ITS  ELIGIBILITY
FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
BLE  TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH A
PROPERTY ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR  OTHER
PERSON  HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED TO
IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
  (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
IN THE MANNER PRESCRIBED BY SUCH SECTION.  NEITHER  AN  ASSESSOR  NOR  A
BOARD  OF  ASSESSMENT  REVIEW HAS THE AUTHORITY TO CONSIDER SUCH A CHAL-
LENGE.
  (III) THE PROPERTY SHALL REMAIN  INELIGIBLE  FOR  THE  STAR  EXEMPTION
UNTIL  THE  DEPARTMENT  NOTIFIES THE ASSESSOR THAT THE SUSPENSION OF ITS
ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE
EXEMPTION MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT  THE
ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.

S. 6259--D                          5                         A. 9059--D

  (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
STAR  EXEMPTION  PURSUANT  TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
THIS SECTION, A SUSPENSION OF A  STAR  EXEMPTION  DUE  TO  A  TAXPAYER'S
PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON
THE  COOPERATIVE  APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
BY THAT TAXPAYER.
  S 2. The tax law is amended by adding a new section 171-y to  read  as
follows:
  S  171-Y.  ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES THROUGH THE
SUSPENSION OF ELIGIBILITY FOR STAR EXEMPTIONS. 1.  THE  COMMISSIONER  IS
HEREBY  AUTHORIZED  TO DEVELOP A PROGRAM TO COLLECT DELINQUENT STATE TAX
LIABILITIES FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY  OF
PROPERTIES  FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY OWNERS
HAVE PAST-DUE STATE TAX LIABILITIES. FOR THE PURPOSES OF  THIS  SECTION,
THE  TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT LIMITED
TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
FEE ADMINISTERED BY THE COMMISSIONER THAT IS OWED  BY  A  TAXPAYER;  THE
TERM  "PAST-DUE STATE TAX LIABILITY" OR "PAST-DUE STATE TAX LIABILITIES"
MEANS ANY STATE TAX LIABILITY OR LIABILITIES WHICH HAVE BECOME FIXED AND
FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT  TO  ADMINISTRATIVE
OR  JUDICIAL  REVIEW  AND  FOR  WHICH  THE TAXPAYER HAS NOT MADE PAYMENT
ARRANGEMENTS FOR THAT LIABILITY SATISFACTORY TO  THE  COMMISSIONER;  THE
TERM "TAXPAYER" SHALL MEAN THE INDIVIDUAL RESPONSIBLE FOR THE PAYMENT OF
ANY OF THE PAST-DUE STATE TAX LIABILITIES; AND THE TERM "STAR EXEMPTION"
MEANS  THE  EXEMPTION  FROM REAL PROPERTY TAXATION AUTHORIZED BY SECTION
FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE  ADMINISTRATION
OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
  (A)  THE  CRITERIA  FOR  IDENTIFYING TAXPAYERS WITH PAST-DUE STATE TAX
LIABILITIES, PROVIDED THAT TAXPAYERS WHOSE PAST-DUE  STATE  TAX  LIABIL-
ITIES ARE LESS THAN FORTY-FIVE HUNDRED DOLLARS SHALL BE EXCLUDED.
  (B)  THE  PROCEDURES  BY  WHICH THE DEPARTMENT SHALL DETERMINE WHETHER
PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
  (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
THAT THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL  BE
SUSPENDED  UNLESS  THEY  EITHER SATISFY THEIR PAST-DUE STATE TAX LIABIL-
ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
DATE TO BE SPECIFIED IN THE NOTICE.
  (D) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY  ASSESSORS  OF
PROPERTIES  WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED DUE
TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
  (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
ON A PROSPECTIVE BASIS BY EITHER SATISFYING  THEIR  PAST-DUE  STATE  TAX
LIABILITIES  OR  MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMIS-
SIONER.
  (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
THE SUSPENSION OF A PROPERTY'S ELIGIBILITY FOR THE  STAR  EXEMPTION  HAS
BEEN LIFTED.
  (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
NATE  AND  EXECUTE  THEIR OBLIGATIONS PURSUANT TO THIS SECTION AND PARA-
GRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR  HUNDRED  TWENTY-FIVE  OF
THE REAL PROPERTY TAX LAW.
  (H) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL APPLY THE AMOUNT OF A
TAXPAYER'S  LOST  STAR  BENEFITS AS AN OFFSET AGAINST THE AMOUNT OF THAT
TAXPAYER'S PAST-DUE STATE TAX LIABILITIES.

S. 6259--D                          6                         A. 9059--D

  (I) ANY OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY  TO  CARRY
OUT THE PROVISIONS OF THIS SECTION.
  3.  THE  DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST FORTY-FIVE DAYS
PRIOR TO THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR  OF  THE
SUSPENSION  OF  THE ELIGIBILITY FOR THE STAR EXEMPTION OF PROPERTY WHICH
IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
  (A) SUCH NOTICE SHALL INCLUDE A STATEMENT  THAT  THE  DEPARTMENT  WILL
NOTIFY  THE  ASSESSOR  OF THE SUSPENSION OF THE ELIGIBILITY FOR THE STAR
EXEMPTION OF PROPERTY WHOLLY OR PARTIALLY OWNED BY THE  TAXPAYER  UNLESS
THE  TAXPAYER  FULLY  SATISFIES THE OUTSTANDING STATE TAX LIABILITIES OR
OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
ACCORDANCE WITH LAW. HOWEVER, IN ANY CASE  WHERE  A  TAXPAYER  FAILS  TO
COMPLY  WITH  THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT AS DESCRIBED
HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
IMMEDIATELY NOTIFY THE ASSESSOR OF  THE  SUSPENSION  OF  THE  PROPERTY'S
ELIGIBILITY FOR THE STAR EXEMPTION.
  (B)  SUCH  NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY FOR THE
TAXPAYER TO PAY THE PAST-DUE LIABILITY,  MAKE  PAYMENT  ARRANGEMENTS  OR
OTHERWISE REQUEST ADDITIONAL INFORMATION.
  (C)  SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO PROTEST
THE NOTICE IS LIMITED TO RAISING ISSUES THAT  CONSTITUTE  A  MISTAKE  OF
FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
  (D)  SUCH  NOTICE SHALL ALSO ADVISE THE TAXPAYER HOW THE SUSPENSION OF
THE PROPERTY'S STAR EXEMPTION MAY BE LIFTED.
  (E) SUCH NOTICE MAY  ALSO  INCLUDE  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  4.  IF  THE  TAXPAYER  FAILS  TO SATISFY HIS OR HER PAST-DUE STATE TAX
LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
FIED IN THE NOTICE, THE DEPARTMENT SHALL  NOTIFY  THE  ASSESSOR  OF  THE
SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
  5.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, THE NOTICE ISSUED BY
THE DEPARTMENT PURSUANT TO THIS SECTION FOR THE  PURPOSE  OF  SUSPENDING
THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
BEFORE  THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED IN
THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM  OF  LEGAL  RECOURSE
AGAINST  THE  DEPARTMENT  OR ASSESSOR REGARDING SUCH SUSPENSION. FOR THE
PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT"  IS  LIMITED  TO  CLAIMS
THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
PAST-DUE  STATE  TAX LIABILITIES WERE SATISFIED; OR (III) THE DEPARTMENT
INCORRECTLY FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE  TERMS
OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
PERIOD  FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION.  HOWEVER,
NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX  HUNDRED
FIFTY-FOUR  OF  THIS  CHAPTER  TO  THE EXTENT THAT HE OR SHE IS ELIGIBLE
PURSUANT TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT  THE
ENFORCEMENT  OF  THE  UNDERLYING  TAX LIABILITIES HAS BEEN STAYED BY THE
FILING OF A PETITION PURSUANT TO THE  BANKRUPTCY  CODE  OF  1978  (TITLE
ELEVEN OF THE UNITED STATES CODE).
  6.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE DEPART-
MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
ANY TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE  STAR
EXEMPTION  PURSUANT  TO  THIS  SECTION  AND PARAGRAPH (F) OF SUBDIVISION
THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX  LAW
AND A DESCRIPTION OF SUCH PROPERTY.

S. 6259--D                          7                         A. 9059--D

  7.  ACTIVITIES  TO  COLLECT  STATE  TAX  LIABILITIES UNDERTAKEN BY THE
DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
OR IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO  COLLECT
OR  ENFORCE  PAST-DUE  STATE  TAX LIABILITIES UNDER ANY OTHER APPLICABLE
PROVISION  OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX LIABIL-
ITY INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT  TO
PARAGRAPH  (F)  OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE
OF THE REAL PROPERTY TAX LAW AND THIS SECTION SHALL  BE  APPLIED  AS  AN
OFFSET  AGAINST  THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABIL-
ITY.
  8. NOTWITHSTANDING THE SECRECY PROVISIONS OF THIS CHAPTER, THE COMMIS-
SIONER MAY DISCLOSE TO  ASSESSORS  THE  INFORMATION  DESCRIBED  IN  THIS
SECTION THAT IS NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROP-
ER  IDENTIFICATION OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO
OWNS PROPERTY WITH A STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSU-
ANT TO SUCH SECTION AND PARAGRAPH (F) OF SUBDIVISION  THREE  OF  SECTION
FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  S  3.  This  act  shall take effect immediately and shall apply to the
administration of the STAR exemption authorized by section  425  of  the
real  property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
years.

                                 PART C
                          Intentionally omitted

                                 PART D

  Section 1. Section 19 of part W-1 of chapter 109 of the laws of  2006,
amending  the  tax  law relating to providing exemptions, reimbursements
and credits from various taxes for certain alternative fuels, as amended
by section 2 of part L of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2012] 2014  and  such
repeal  shall  apply  in  accordance  with  the  applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply  to
sales  made,  fuel  compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven  through  eleven  of
this  act,  in  accordance  with  applicable  transitional provisions of
sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
commissioner  of  taxation  and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend  any  rules
or  regulations  and  to  take  any  steps  necessary  to  implement the
provisions of this act; provided further that sections fourteen  through
sixteen  of  this  act  shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART E

  Section 1. Subdivision 14 of section 282 of the tax law, as amended by
section 1 of part K of chapter 61 of the laws of  2011,  is  amended  to
read as follows:

S. 6259--D                          8                         A. 9059--D

  14.  "Diesel  motor  fuel"  shall mean No. 1 Diesel fuel, No. 2 Diesel
fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
late and also motor fuel suitable for use in the operation of an  engine
of  the diesel type, excluding, however, any product specifically desig-
nated  "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
tion of a motor vehicle engine.
  S 2. Paragraph (b) of subdivision 3 of section 282-a of the  tax  law,
as  amended by section 5 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of this section shall not apply to: (i) the sale or use  of  non-highway
Diesel  motor  fuel, but only if all of such fuel is consumed other than
on the public highways of this state (except for the use of  the  public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption  shall in no event apply to a sale of non-highway Diesel motor
fuel which involves a delivery at a filling station or into a repository
which is equipped with a hose or other apparatus by which such fuel  can
be  dispensed into the fuel tank of a motor vehicle (except for delivery
at a farm site which qualifies for the exemption under  subdivision  (g)
of  section  three hundred one-b of this chapter); or (ii) a sale to the
consumer consisting of not more than twenty gallons of water-white kero-
sene to be used and consumed exclusively for heating purposes; or  (iii)
the  sale  to or delivery at a filling station or other retail vendor of
water-white kerosene provided  such  filling  station  or  other  retail
vendor  only  sells  such  water-white  kerosene exclusively for heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet fuel to an airline for use in its airplanes or a use  of  kero-
jet  fu