S T A T E   O F   N E W   Y O R K
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                                  6204

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              March 9, 2011
                               ___________

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

AN ACT to enact the "emergency municipal services act"; to amend the tax
  law,  in  relation  to  enacting  the  municipal  service  support and
  enhancement tax

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "emergency municipal services act".
  S 2. The tax law is amended by adding a new  article  16  to  read  as
follows:
                                ARTICLE 16
              MUNICIPAL SERVICE SUPPORT AND ENHANCEMENT TAX
SECTION 350. DEFINITIONS.
        351. PERSONS SUBJECT TO TAX; IMPOSITION OF TAX.
        352. ALLOCATION TO THE LARGE CITY.
        353. ACCOUNTING PERIODS AND METHODS.
        354. WITHHOLDING OF TAX ON WAGES.
        355. INFORMATION STATEMENT FOR EMPLOYEE.
        356. CREDIT FOR TAX WITHHELD.
        357. EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES.
        358. EMPLOYER'S LIABILITY FOR WITHHELD TAXES.
        359. EMPLOYER'S FAILURE TO WITHHOLD.
        360. RETURNS AND PAYMENT OF TAX.
        361. COMBINED RETURNS, EMPLOYER'S RETURNS, AND PAYMENTS.
        362. EFFECT  OF  INVALIDITY  IN PART; INCONSISTENCIES WITH OTHER
              LAWS.
        363. DEPOSIT AND DISPOSITION OF REVENUES.
  S 350. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN AND INCLUDE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00994-01-1

              

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  (A) "ADMINISTRATOR"  SHALL  MEAN  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE.
  (B)  "LARGE  CITY"  SHALL  MEAN  ANY  CITY  HAVING A POPULATION OF ONE
MILLION OR MORE.
  (C) "PAYROLL PERIOD" AND "EMPLOYER" SHALL MEAN  THE  SAME  AS  PAYROLL
PERIOD  AND  EMPLOYER  AS  DEFINED IN SUBSECTIONS (B) AND (D) OF SECTION
THIRTY-FOUR HUNDRED ONE OF THE INTERNAL  REVENUE  CODE,  AND  "EMPLOYEE"
SHALL  ALSO INCLUDE ALL THOSE INCLUDED AS EMPLOYEES IN SUBSECTION (C) OF
SUCH SECTION OF SUCH CODE.
  (D) "WAGES" SHALL MEAN WAGES AS DEFINED IN SUBSECTION (A)  OF  SECTION
THIRTY-FOUR  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, EXCEPT THAT (1)
WAGES SHALL NOT INCLUDE PAYMENTS FOR ACTIVE SERVICE AS A MEMBER  OF  THE
ARMED  FORCES  OF THE UNITED STATES; AND (2) WAGES SHALL INCLUDE (A) THE
AMOUNT OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO  A  RETIREMENT  SYSTEM  OR
PENSION  FUND  PICKED  UP  BY  THE EMPLOYER PURSUANT TO SUBDIVISION F OF
SECTION FIVE HUNDRED SEVENTEEN OR SUBDIVISION D OF SECTION  SIX  HUNDRED
THIRTEEN  OF THE RETIREMENT AND SOCIAL SECURITY LAW OR SECTION 13-225.1,
13-327.1, 13-125.1, 13-125.2 OR 13-521.1 OF THE ADMINISTRATIVE  CODE  OF
THE  CITY  OF  NEW  YORK  OR SUBDIVISION NINETEEN OF SECTION TWENTY-FIVE
HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW, (B) THE  AMOUNT  DEDUCTED  OR
DEFERRED  FROM  AN  EMPLOYEE'S  SALARY UNDER A FLEXIBLE BENEFITS PROGRAM
ESTABLISHED PURSUANT TO SECTION TWENTY-THREE OF  THE  GENERAL  MUNICIPAL
LAW  OR  SECTION TWELVE HUNDRED TEN-A OF THE PUBLIC AUTHORITIES LAW, (C)
THE AMOUNT BY WHICH AN EMPLOYEE'S SALARY  IS  REDUCED  PURSUANT  TO  THE
PROVISIONS  OF  SUBDIVISION  B  OF SECTION 12-126.1 AND SUBDIVISION B OF
SECTION 12-126.2 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND
(D) THE AMOUNT OF MEMBER  OR  EMPLOYEE  CONTRIBUTIONS  TO  A  RETIREMENT
SYSTEM  OR PENSION FUND PICKED UP OR PAID BY THE EMPLOYER FOR MEMBERS OF
THE MANHATTAN AND BRONX SURFACE TRANSPORTATION  AUTHORITY  PENSION  PLAN
AND  TREATED  AS EMPLOYER CONTRIBUTIONS IN DETERMINING INCOME TAX TREAT-
MENT UNDER SECTION 414(H) OF THE INTERNAL REVENUE CODE.
  (E) "NET EARNINGS FROM SELF-EMPLOYMENT" SHALL MEAN  THE  SAME  AS  NET
EARNINGS  FROM  SELF-EMPLOYMENT  AS DEFINED IN SUBSECTION (A) OF SECTION
FOURTEEN HUNDRED TWO OF THE  INTERNAL  REVENUE  CODE,  EXCEPT  THAT  THE
DEDUCTION  FOR  WAGES AND SALARIES PAID OR INCURRED FOR THE TAXABLE YEAR
WHICH IS NOT ALLOWED PURSUANT TO SECTION TWO HUNDRED  EIGHTY-C  OF  SUCH
CODE  SHALL  BE  ALLOWED,  AND  EXCEPT  THAT AN ESTATE OR TRUST SHALL BE
DEEMED TO HAVE NET EARNINGS FROM SELF-EMPLOYMENT DETERMINED IN THE  SAME
MANNER AS IF IT WERE AN INDIVIDUAL SUBJECT TO THE TAX ON SELF-EMPLOYMENT
INCOME  IMPOSED  BY SECTION FOURTEEN HUNDRED ONE OF THE INTERNAL REVENUE
CODE DIMINISHED BY (1) THE AMOUNT OF ANY DEDUCTION ALLOWED BY SUBSECTION
(C) OF SECTION SIX HUNDRED FORTY-TWO OF THE INTERNAL  REVENUE  CODE  AND
(2)  THE  DEDUCTIONS  ALLOWED  BY SECTIONS SIX HUNDRED FIFTY-ONE AND SIX
HUNDRED SIXTY-ONE OF  SUCH  CODE  TO  THE  EXTENT  THAT  THEY  REPRESENT
DISTRIBUTIONS  OR  PAYMENTS  TO  A  RESIDENT OF THE LARGE CITY. HOWEVER,
"TRADE OR BUSINESS" AS  USED  IN  SUBSECTION  (A)  OF  SECTION  FOURTEEN
HUNDRED  TWO  OF  SUCH  CODE SHALL MEAN THE SAME AS TRADE OR BUSINESS AS
DEFINED IN SUBSECTION (C) OF SECTION FOURTEEN HUNDRED TWO OF SUCH  CODE,
EXCEPT  THAT  PARAGRAPHS  (4),  (5) AND (6) OF SUCH SUBSECTION SHALL NOT
APPLY IN DETERMINING NET EARNINGS  FROM  SELF-EMPLOYMENT  TAXABLE  UNDER
THIS ARTICLE.
  (F)  "TAXABLE YEAR" SHALL MEAN THE TAXPAYER'S TAXABLE YEAR FOR FEDERAL
INCOME TAX PURPOSES.
  (G) "RESIDENT INDIVIDUAL". A RESIDENT INDIVIDUAL SHALL MEAN  AN  INDI-
VIDUAL:

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  (1) WHO IS DOMICILED IN THE LARGE CITY, UNLESS (A) HE OR SHE MAINTAINS
NO  PERMANENT  PLACE  OF  ABODE IN THE LARGE CITY, MAINTAINS A PERMANENT
PLACE OF ABODE ELSEWHERE, AND SPENDS IN  THE  AGGREGATE  NOT  MORE  THAN
THIRTY DAYS OF THE TAXABLE YEAR IN THE LARGE CITY, OR (B) (I) WITHIN ANY
PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS PRESENT
IN  A FOREIGN COUNTRY OR COUNTRIES FOR AT LEAST FOUR HUNDRED FIFTY DAYS,
AND (II) DURING SUCH PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS
HE OR SHE IS NOT PRESENT IN THE LARGE CITY FOR MORE THAN NINETY DAYS AND
DOES NOT MAINTAIN A PERMANENT PLACE OF ABODE IN THE LARGE CITY AT  WHICH
HIS  OR  HER  SPOUSE  (UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR
CHILDREN ARE PRESENT FOR MORE THAN NINETY DAYS,  AND  (III)  DURING  ANY
PERIOD  OF LESS THAN TWELVE MONTHS, WHICH WOULD BE TREATED AS A SEPARATE
TAXABLE PERIOD BASED ON A CHANGE OF RESIDENT STATUS, AND WHICH PERIOD IS
CONTAINED WITHIN SUCH PERIOD OF  FIVE  HUNDRED  FORTY-EIGHT  CONSECUTIVE
DAYS,  HE OR SHE IS PRESENT IN THE LARGE CITY FOR A NUMBER OF DAYS WHICH
DOES NOT EXCEED AN AMOUNT WHICH BEARS THE SAME RATIO TO  NINETY  AS  THE
NUMBER OF DAYS CONTAINED IN SUCH PERIOD OF LESS THAN TWELVE MONTHS BEARS
TO FIVE HUNDRED FORTY-EIGHT, OR
  (2)  WHO  IS NOT DOMICILED IN THE LARGE CITY BUT MAINTAINS A PERMANENT
PLACE OF ABODE IN THE LARGE CITY AND SPENDS IN THE AGGREGATE  MORE  THAN
ONE  HUNDRED  EIGHTY-THREE  DAYS  OF THE TAXABLE YEAR IN THE LARGE CITY,
UNLESS SUCH INDIVIDUAL IS IN ACTIVE SERVICE IN THE ARMED FORCES  OF  THE
UNITED STATES.
  (H)  "NONRESIDENT  INDIVIDUAL". A NONRESIDENT INDIVIDUAL SHALL MEAN AN
INDIVIDUAL WHO IS NOT A RESIDENT.
  (I) "RESIDENT ESTATE OR TRUST". A RESIDENT ESTATE OR TRUST SHALL MEAN:
  (1) THE ESTATE OF A DECEDENT WHO AT HIS DEATH  WAS  DOMICILED  IN  THE
LARGE CITY,
  (2) A TRUST, OR PORTION OF A TRUST, CONSISTING OF PROPERTY TRANSFERRED
BY  WILL OF A DECEDENT WHO AT HIS DEATH WAS DOMICILED IN THE LARGE CITY,
OR
  (3) A TRUST, OR PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF: (A)
A PERSON DOMICILED IN THE LARGE CITY  AT  THE  TIME  SUCH  PROPERTY  WAS
TRANSFERRED  TO  THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST WAS THEN
IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSEQUENTLY BECOME
IRREVOCABLE; OR
  (B) A PERSON DOMICILED IN THE LARGE CITY AT THE TIME  SUCH  TRUST,  OR
PORTION  OF  A  TRUST, BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH
PROPERTY WAS TRANSFERRED TO THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREV-
OCABLE. FOR THE PURPOSES OF THE FOREGOING, A TRUST OR PORTION OF A TRUST
IS REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR  AT
ANY  FUTURE  TIME,  TO REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTI-
TUTES SUCH TRUST OR PORTION OF A TRUST, AND A  TRUST  OR  PORTION  OF  A
TRUST  BECOMES  IRREVOCABLE  WHEN THE POSSIBILITY THAT SUCH POWER MAY BE
EXERCISED HAS BEEN TERMINATED.
  (J) "NONRESIDENT ESTATE OR TRUST". A NONRESIDENT ESTATE OR TRUST SHALL
MEAN AN ESTATE OR TRUST WHICH IS NOT A RESIDENT.
  (K) UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED, ANY TERM  USED  IN
THIS  ARTICLE  SHALL  HAVE THE SAME MEANING AS WHEN USED IN A COMPARABLE
CONTEXT IN THE LAWS OF THE UNITED STATES RELATING TO FEDERAL  TAXES  BUT
SUCH  MEANING  SHALL  BE  SUBJECT  TO  THE  EXCEPTIONS  OR MODIFICATIONS
PRESCRIBED IN OR PURSUANT TO FORMER ARTICLE TWO-E OF  THE  GENERAL  CITY
LAW  AS  SUCH ARTICLE PROVIDED IMMEDIATELY PRIOR TO ITS REPEAL OR BY THE
LAWS OF THIS STATE. ANY REFERENCE IN THIS ARTICLE TO THE INTERNAL REVEN-
UE CODE, THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX OR  TO
THE  LAWS OF THE UNITED STATES SHALL MEAN THE PROVISIONS OF THE INTERNAL

A. 6204                             4

REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX (UNLESS A REFERENCE  TO  THE
INTERNAL   REVENUE  CODE  OF  NINETEEN  HUNDRED  FIFTY-FOUR  IS  CLEARLY
INTENDED), AND AMENDMENTS THERETO, AND OTHER PROVISIONS OF THE  LAWS  OF
THE UNITED STATES RELATING TO FEDERAL TAXES, AS THE SAME ARE INCLUDED IN
THIS  ARTICLE  AS  AN  APPENDIX  AND  SUPPLEMENT  TO  THE APPENDIX OR AS
INCLUDED BY REFERENCE TO AN APPENDIX AND SUPPLEMENT TO THE APPENDIX OF A
TITLE ENACTED BY THE SAME ARTICLE AS ENACTS THIS ARTICLE. (THE QUOTATION
OF THE AFORESAID LAWS OF THE UNITED STATES IS INTENDED TO  MAKE  THEM  A
PART  OF  THIS  ARTICLE  AND TO AVOID CONSTITUTIONAL UNCERTAINTIES WHICH
MIGHT RESULT IF SUCH LAWS WERE MERELY  INCORPORATED  BY  REFERENCE.  THE
QUOTATION  OF A PROVISION OF THE FEDERAL INTERNAL REVENUE CODE OR OF ANY
OTHER LAW OF THE UNITED STATES SHALL NOT NECESSARILY  MEAN  THAT  IT  IS
APPLICABLE TO OR HAS RELEVANCE TO THIS ARTICLE.)
  (1)  THE  TERM "PARTNERSHIP" SHALL INCLUDE, UNLESS A DIFFERENT MEANING
IS CLEARLY REQUIRED, A SUBCHAPTER K LIMITED LIABILITY COMPANY. THE  TERM
"SUBCHAPTER  K LIMITED LIABILITY COMPANY" SHALL MEAN A LIMITED LIABILITY
COMPANY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES. THE
TERM "LIMITED LIABILITY COMPANY" SHALL MEAN A DOMESTIC LIMITED LIABILITY
COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY, AS  DEFINED  IN  SECTION
ONE  HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, A LIMITED LIABIL-
ITY INVESTMENT COMPANY FORMED PURSUANT TO SECTION FIVE HUNDRED SEVEN  OF
THE BANKING LAW, OR A LIMITED LIABILITY TRUST COMPANY FORMED PURSUANT TO
SECTION ONE HUNDRED TWO-A OF THE BANKING LAW.
  (M)  THE  TERM  "LARGE CITY INCOME" SHALL MEAN THE SUM OF WAGES EARNED
WITHIN A LARGE CITY PLUS NET EARNINGS FROM  SELF-EMPLOYMENT  WITHIN  THE
LARGE CITY.
  S  351.  PERSONS  SUBJECT  TO  TAX; IMPOSITION OF TAX. A TAX IS HEREBY
IMPOSED ON THE LARGE CITY INCOME OF EVERY RESIDENT AND NONRESIDENT INDI-
VIDUAL, ESTATE, AND TRUST DURING THE PERIOD OF JANUARY FIRST, TWO  THOU-
SAND  ELEVEN  THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN. SUCH
TAX SHALL BE IMPOSED AT THE RATE OF ONE AND ONE-FOURTH PERCENT OF  LARGE
CITY INCOME IN EXCESS OF FIFTY THOUSAND DOLLARS.
  S 352. ALLOCATION TO THE LARGE CITY. (A) GENERAL. IF NET EARNINGS FROM
SELF-EMPLOYMENT  ARE  DERIVED  FROM SERVICES PERFORMED, OR FROM SOURCES,
WITHIN AND WITHOUT THE LARGE CITY, THERE SHALL BE ALLOCATED TO THE LARGE
CITY A FAIR AND EQUITABLE PORTION OF SUCH EARNINGS.
  (B) ALLOCATION OF NET EARNINGS  FROM  SELF-EMPLOYMENT.  (1)  PLACE  OF
BUSINESS.  IF  A  TAXPAYER  HAS NO REGULAR PLACE OF BUSINESS OUTSIDE THE
LARGE CITY, ALL OF HIS OR HER NET EARNINGS FROM SELF-EMPLOYMENT SHALL BE
ALLOCATED TO THE LARGE CITY.
  (2) ALLOCATION BY TAXPAYER'S BOOKS. THE PORTION OF NET  EARNINGS  FROM
SELF-EMPLOYMENT  ALLOCABLE  TO THE LARGE CITY MAY BE DETERMINED FROM THE
BOOKS AND RECORDS OF A TAXPAYER'S TRADE OR BUSINESS, IF THE METHODS USED
IN KEEPING SUCH BOOKS AND THE  ACCURACY  THEREOF  ARE  APPROVED  BY  THE
ADMINISTRATOR  AS  FAIRLY  AND  EQUITABLY  REFLECTING  NET EARNINGS FROM
SELF-EMPLOYMENT WITHIN THE LARGE CITY.
  (3) ALLOCATION BY FORMULA. IF PARAGRAPH TWO OF THIS  SUBDIVISION  DOES
NOT APPLY TO THE TAXPAYER, THE PORTION OF NET EARNINGS FROM SELF-EMPLOY-
MENT  ALLOCABLE TO THE LARGE CITY SHALL BE DETERMINED BY MULTIPLYING (A)
NET EARNINGS FROM SELF-EMPLOYMENT WITHIN AND WITHOUT THE LARGE CITY,  BY
(B) THE AVERAGE OF THE FOLLOWING THREE PERCENTAGES:
  (I)  PROPERTY  PERCENTAGE. THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
AVERAGE OF THE VALUE, AT THE BEGINNING AND END OF THE TAXABLE  YEAR,  OF
REAL AND TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM
SELF-EMPLOYMENT AND LOCATED WITHIN THE LARGE CITY, BY (B) THE AVERAGE OF
THE VALUE, AT THE BEGINNING AND END OF THE TAXABLE YEAR, OF ALL REAL AND

A. 6204                             5

TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM SELF-EM-
PLOYMENT  AND  LOCATED  BOTH WITHIN AND WITHOUT THE LARGE CITY. FOR THIS
PURPOSE, REAL PROPERTY SHALL INCLUDE REAL  PROPERTY,  WHETHER  OWNED  OR
RENTED.
  (II)  PAYROLL  PERCENTAGE. THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
TOTAL WAGES, SALARIES, AND OTHER PERSONAL SERVICE COMPENSATION  PAID  OR
INCURRED DURING THE TAXABLE YEAR TO EMPLOYEES IN CONNECTION WITH THE NET
EARNINGS  FROM  SELF-EMPLOYMENT DERIVED FROM A TRADE OR BUSINESS CARRIED
ON WITHIN THE LARGE CITY, BY (B) THE TOTAL OF ALL WAGES,  SALARIES,  AND
OTHER  PERSONAL SERVICE COMPENSATION PAID OR INCURRED DURING THE TAXABLE
YEAR TO EMPLOYEES IN CONNECTION WITH THE NET EARNINGS FROM  SELF-EMPLOY-
MENT DERIVED FROM A TRADE OR BUSINESS CARRIED ON BOTH WITHIN AND WITHOUT
THE LARGE CITY.
  (III) GROSS INCOME PERCENTAGE. THE PERCENTAGE COMPUTED BY DIVIDING (A)
THE GROSS SALES OR CHARGES FOR SERVICES PERFORMED BY OR THROUGH AN AGEN-
CY LOCATED WITHIN THE LARGE CITY, BY (B) THE TOTAL OF ALL GROSS SALES OR
CHARGES  FOR  SERVICES  PERFORMED WITHIN AND WITHOUT THE LARGE CITY. THE
SALES OR CHARGES TO BE ALLOCATED TO THE LARGE  CITY  SHALL  INCLUDE  ALL
SALES  NEGOTIATED OR CONSUMMATED, AND CHARGES FOR SERVICES PERFORMED, BY
AN EMPLOYEE, AGENT, AGENCY, OR INDEPENDENT CONTRACTOR  CHIEFLY  SITUATED
AT,  CONNECTED  BY CONTRACT OR OTHERWISE WITH, OR SENT OUT FROM, OFFICES
OR OTHER AGENCIES OF THE TRADE OR BUSINESS  FROM  WHICH  A  TAXPAYER  IS
DERIVING  NET  EARNINGS  FROM SELF-EMPLOYMENT, SITUATED WITHIN THE LARGE
CITY.
  (C) OTHER  ALLOCATION  METHODS.  THE  PORTION  OF  NET  EARNINGS  FROM
SELF-EMPLOYMENT  ALLOCABLE  TO  THE  LARGE  CITY  SHALL BE DETERMINED IN
ACCORDANCE WITH RULES AND REGULATIONS OF THE ADMINISTRATOR IF  IT  SHALL
APPEAR  TO  THE ADMINISTRATOR THAT THE NET EARNINGS FROM SELF-EMPLOYMENT
ARE NOT FAIRLY AND EQUITABLY REFLECTED UNDER THE PROVISIONS OF  SUBDIVI-
SION (B) OF THIS SECTION.
  (D)  SPECIAL  RULES  FOR  REAL  ESTATE. INCOME AND DEDUCTIONS FROM THE
RENTAL OF REAL PROPERTY AND GAIN AND LOSS FROM THE  SALE,  EXCHANGE,  OR
OTHER  DISPOSITION  OF  REAL PROPERTY SHALL NOT BE SUBJECT TO ALLOCATION
UNDER SUBDIVISION (B) OR (C) OF THIS SECTION, BUT SHALL BE CONSIDERED AS
ENTIRELY DERIVED FROM OR CONNECTED WITH THE PLACE IN WHICH SUCH PROPERTY
IS LOCATED.
  S 353. ACCOUNTING PERIODS  AND  METHODS.  (A)  ACCOUNTING  PERIODS.  A
TAXPAYER'S  TAXABLE  YEAR UNDER THIS ARTICLE SHALL BE THE SAME AS HIS OR
HER TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
  (B) CHANGE OF ACCOUNTING PERIODS. IF  A  TAXPAYER'S  TAXABLE  YEAR  IS
CHANGED  FOR  FEDERAL  INCOME  TAX PURPOSES, HIS OR HER TAXABLE YEAR FOR
PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED. IF A TAXABLE PERIOD
OF LESS THAN TWELVE MONTHS RESULTS FROM A CHANGE OF  TAXABLE  YEAR,  THE
EXCLUSION  ALLOWABLE  UNDER SECTION TWO OR TWO-A OF FORMER SECTION TWEN-
TY-FIVE-M OF THE GENERAL CITY LAW SHALL BE PRORATED UNDER REGULATIONS OF
THE ADMINISTRATOR.
  (C) ACCOUNTING METHODS. A TAXPAYER'S METHOD OF ACCOUNTING  UNDER  THIS
ARTICLE SHALL BE THE SAME AS HIS OR HER METHOD OF ACCOUNTING FOR FEDERAL
INCOME  TAX  PURPOSES.  IN  THE  ABSENCE OF ANY METHOD OF ACCOUNTING FOR
FEDERAL INCOME TAX PURPOSES, NET EARNINGS  FROM  SELF-EMPLOYMENT  WITHIN
THE  LARGE CITY SHALL BE COMPUTED UNDER SUCH METHOD AS IN THE OPINION OF
THE ADMINISTRATOR CLEARLY REFLECTS  NET  EARNINGS  FROM  SELF-EMPLOYMENT
WITHIN THE LARGE CITY.
  (D)  CHANGE  OF  ACCOUNTING    METHODS.  (1) IF A TAXPAYER'S METHOD OF
ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, HIS OR HER METHOD
OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED.

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  (2) IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED, OTHER  THAN  FROM
AN  ACCRUAL  TO  AN INSTALLMENT METHOD, ANY ADDITIONAL TAX WHICH RESULTS
FROM ADJUSTMENTS DETERMINED TO BE NECESSARY  SOLELY  BY  REASON  OF  THE
CHANGE  SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLO-
CATED  AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING
TAXABLE YEARS, BEGINNING AFTER JULY FIRST, NINETEEN  HUNDRED  SIXTY-SIX,
NOT  IN  EXCESS  OF  TWO,  DURING  WHICH THE TAXPAYER USED THE METHOD OF
ACCOUNTING FROM WHICH THE CHANGE IS MADE.
  (3) IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED FROM AN ACCRUAL TO
AN INSTALLMENT METHOD, ANY ADDITIONAL TAX FOR THE YEAR OF SUCH CHANGE OF
METHOD AND FOR ANY SUBSEQUENT YEAR WHICH IS ATTRIBUTABLE TO THE  RECEIPT
OF  INSTALLMENT  PAYMENTS  PROPERLY  ACCRUED  IN  A PRIOR YEAR, SHALL BE
REDUCED BY THE PORTION OF TAX FOR ANY PRIOR TAXABLE YEAR ATTRIBUTABLE TO
THE ACCRUAL OF SUCH INSTALLMENT PAYMENTS, IN ACCORDANCE WITH REGULATIONS
OF THE ADMINISTRATOR.
  S 354. WITHHOLDING OF TAX ON WAGES. ON  OR  AFTER  THE  FIRST  PAYROLL
PERIOD  BEGINNING  FORTY-FIVE  DAYS  AFTER THE DATE THIS ARTICLE BECOMES
EFFECTIVE, EVERY EMPLOYER MAINTAINING AN OFFICE OR TRANSACTING  BUSINESS
WITHIN  THIS  STATE  AND  MAKING PAYMENT OF ANY WAGES TAXABLE UNDER THIS
ARTICLE SHALL DEDUCT AND WITHHOLD FROM SUCH WAGES FOR EACH PAYROLL PERI-
OD A TAX COMPUTED IN SUCH MANNER AS TO RESULT, SO FAR AS PRACTICABLE, IN
WITHHOLDING FROM THE EMPLOYEE'S  WAGES  DURING  EACH  CALENDAR  YEAR  AN
AMOUNT  SUBSTANTIALLY  EQUIVALENT  TO THE TAX REASONABLY ESTIMATED TO BE
DUE FROM THE EMPLOYEE UNDER THIS ARTICLE. THE METHOD OF DETERMINING  THE
AMOUNT TO BE WITHHELD SHALL BE PRESCRIBED BY REGULATIONS OF THE ADMINIS-
TRATOR.
  S  355. INFORMATION STATEMENT FOR EMPLOYEE. EVERY EMPLOYER REQUIRED TO
DEDUCT AND WITHHOLD TAX UNDER THIS ARTICLE FROM THE WAGES OF AN  EMPLOY-
EE,  SHALL FURNISH TO EACH SUCH EMPLOYEE IN RESPECT OF THE WAGES PAID BY
SUCH EMPLOYER TO SUCH EMPLOYEE DURING THE CALENDAR  YEAR  ON  OR  BEFORE
FEBRUARY  FIFTEENTH OF THE SUCCEEDING YEAR, OR, IF HIS OR HER EMPLOYMENT
IS TERMINATED BEFORE THE CLOSE OF SUCH CALENDAR YEAR, WITHIN THIRTY DAYS
FROM THE DATE ON WHICH THE LAST PAYMENT OF THE WAGES IS MADE, A  WRITTEN
STATEMENT AS PRESCRIBED BY THE ADMINISTRATOR SHOWING THE TOTAL AMOUNT OF
WAGES PAID BY THE EMPLOYER TO THE EMPLOYEE, THE AMOUNT OF WAGES PAID FOR
SERVICES  PERFORMED WITHIN THE LARGE CITY, THE AMOUNT DEDUCTED AND WITH-
HELD AS TAX,  AND  SUCH  OTHER  INFORMATION  AS  THE  ADMINISTRATOR  MAY
PRESCRIBE.
  S 356. CREDIT FOR TAX WITHHELD. WAGES UPON WHICH TAX IS REQUIRED TO BE
WITHHELD  SHALL  BE TAXABLE UNDER THIS ARTICLE AS IF NO WITHHOLDING WERE
REQUIRED, BUT ANY AMOUNT OF TAX ACTUALLY  DEDUCTED  AND  WITHHELD  UNDER
THIS  ARTICLE  IN ANY CALENDAR YEAR SHALL BE DEEMED TO HAVE BEEN PAID ON
BEHALF OF THE EMPLOYEE FROM WHOM WITHHELD, AND SUCH  EMPLOYEE  SHALL  BE
CREDITED  WITH HAVING PAID THAT AMOUNT OF TAX IN SUCH CALENDAR YEAR. FOR
A TAXABLE YEAR OF LESS THAN TWELVE MONTHS,  THE  CREDIT  SHALL  BE  MADE
UNDER REGULATIONS OF THE ADMINISTRATOR.
  S  357.  EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES. (A) GENERAL.
ON OR AFTER THE FIRST PAYROLL PERIOD BEGINNING FORTY-FIVE DAYS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE, EVERY EMPLOYER REQUIRED  TO  DEDUCT  AND
WITHHOLD  TAX  UNDER  THIS ARTICLE SHALL, FOR EACH CALENDAR MONTH, ON OR
BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING THE CLOSE OF SUCH CALEN-
DAR MONTH, FILE A WITHHOLDING RETURN AS PRESCRIBED BY THE  ADMINISTRATOR
AND  PAY  OVER  TO THE ADMINISTRATOR, OR TO THE DEPOSITORY DESIGNATED BY
THE ADMINISTRATOR, THE TAXES SO REQUIRED TO BE  DEDUCTED  AND  WITHHELD,
EXCEPT  THAT  FOR THE MONTH OF DECEMBER IN ANY YEAR THE RETURNS SHALL BE
FILED AND THE TAXES PAID  ON  OR  BEFORE  JANUARY  THIRTY-FIRST  OF  THE

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SUCCEEDING  YEAR.  WHERE THE AMOUNT REQUIRED TO BE DEDUCTED AND WITHHELD
BY ANY EMPLOYER UNDER THIS ARTICLE IS LESS THAN TWENTY-FIVE DOLLARS IN A
CALENDAR MONTH AND THE AGGREGATE OF SUCH TAXES FOR THE SEMI-ANNUAL PERI-
OD  ENDING ON JUNE THIRTIETH AND DECEMBER THIRTY-FIRST CAN REASONABLY BE
EXPECTED TO BE LESS THAN ONE HUNDRED FIFTY  DOLLARS,  THE  ADMINISTRATOR
MAY,  BY  REGULATION,  PERMIT  AN EMPLOYER TO FILE A RETURN ON OR BEFORE
JULY THIRTY-FIRST FOR THE SEMI-ANNUAL PERIOD ENDING  ON  JUNE  THIRTIETH
AND  ON OR BEFORE JANUARY THIRTY-FIRST FOR THE SEMI-ANNUAL PERIOD ENDING
ON DECEMBER THIRTY-FIRST. THE ADMINISTRATOR MAY, IF HE OR  SHE  BELIEVES
SUCH  ACTION  NECESSARY  FOR THE PROTECTION OF THE REVENUES, REQUIRE ANY
EMPLOYER TO MAKE A RETURN AND PAY THE TAX DEDUCTED AND WITHHELD  AT  ANY
TIME, OR FROM TIME TO TIME. WHERE THE AMOUNT OF WAGES PAID BY AN EMPLOY-
ER IS NOT SUFFICIENT UNDER THIS ARTICLE AND UNDER ANY ARTICLE IMPOSING A
TAX  ON  PERSONAL  INCOME  OF  RESIDENTS OF THE CITY ADOPTED BY THE CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY  LAW  TO  REQUIRE  THE
WITHHOLDING  OF  TAX  FROM THE WAGES OF ANY OF HIS OR HER EMPLOYEES, THE
ADMINISTRATOR MAY, BY REGULATION, PERMIT SUCH EMPLOYER TO FILE AN ANNUAL
RETURN ON OR BEFORE FEBRUARY TWENTY-EIGHTH  OF  THE  FOLLOWING  CALENDAR
YEAR.
  (B)  COMBINED RETURNS. THE ADMINISTRATOR MAY BY REGULATION PROVIDE FOR
THE FILING OF ONE RETURN WHICH SHALL INCLUDE THE RETURN REQUIRED  TO  BE
FILED  UNDER  THIS SECTION, TOGETHER WITH THE EMPLOYER'S RETURN REQUIRED
TO BE FILED UNDER ANY ARTICLE IMPOSING A TAX ON PERSONAL INCOME OF RESI-
DENTS OF THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORITY  GRANTED  BY
THE GENERAL CITY LAW.
  S  358.  EMPLOYER'S  LIABILITY  FOR  WITHHELD  TAXES.  EVERY  EMPLOYER
REQUIRED TO DEDUCT AND WITHHOLD THE TAX UNDER  THIS  ARTICLE  IS  HEREBY
MADE LIABLE FOR SUCH TAX. FOR PURPOSES OF ASSESSMENT AND COLLECTION, ANY
AMOUNT  REQUIRED  TO BE WITHHELD AND PAID OVER TO THE ADMINISTRATOR, AND
ANY ADDITIONS TO TAX, PENALTIES, AND INTEREST WITH RESPECT THERETO SHALL
BE CONSIDERED THE TAX OF THE EMPLOYER. NO EMPLOYEE SHALL HAVE ANY  RIGHT
OF  ACTION AGAINST HIS OR HER EMPLOYER IN RESPECT TO ANY MONIES DEDUCTED
AND WITHHELD FROM HIS OR HER WAGES AND PAID OVER TO THE ADMINISTRATOR IN
COMPLIANCE OR IN INTENDED COMPLIANCE WITH THIS LAW.
  S 359. EMPLOYER'S FAILURE TO WITHHOLD. IF AN EMPLOYER FAILS TO  DEDUCT
AND  WITHHOLD  THE TAX AS REQUIRED, AND THEREAFTER THE TAX AGAINST WHICH
SUCH TAX MAY BE CREDITED IS PAID, THE TAX SO REQUIRED TO BE DEDUCTED AND
WITHHELD SHALL NOT BE COLLECTED FROM  THE  EMPLOYER,  BUT  THE  EMPLOYER
SHALL  NOT  BE  RELIEVED  FROM LIABILITY FOR ANY PENALTIES, INTEREST, OR
ADDITIONS TO THE TAX OTHERWISE APPLICABLE IN RESPECT OF SUCH FAILURE  TO
DEDUCT AND WITHHOLD.
  S  360.  RETURNS AND PAYMENT OF TAX. ON OR BEFORE THE FIFTEENTH DAY OF
THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR,  EVERY  PERSON
SUBJECT  TO THE TAX SHALL MAKE AND FILE A RETURN, AND ANY BALANCE OF THE
TAX SHOWN DUE ON THE FACE OF SUCH RETURN SHALL BE  PAID  THEREWITH.  THE
ADMINISTRATOR  MAY, BY REGULATION, PROVIDE FOR THE FILING OF RETURNS AND
PAYMENT OF THE TAX AT SUCH OTHER TIMES AS HE OR SHE DEEMS NECESSARY  FOR
THE  PROPER  ENFORCEMENT  OF  THIS  ARTICLE.  THE ADMINISTRATOR MAY ALSO
PROVIDE BY REGULATION THAT ANY RETURN OTHERWISE REQUIRED TO BE MADE  AND
FILED UNDER THIS ARTICLE BY ANY INDIVIDUAL NEED NOT BE MADE AND FILED IF
SUCH  INDIVIDUAL  HAD, DURING THE TAXABLE YEAR TO WHICH THE RETURN WOULD
RELATE, NO NET EARNINGS FROM SELF-EMPLOYMENT WITHIN THE CITY. ANY  REGU-
LATION ALLOWING SUCH WAIVER OF RETURN MAY PROVIDE FOR ADDITIONAL LIMITA-
TIONS ON AND CONDITIONS AND PREREQUISITES TO THE PRIVILEGE OF NOT FILING
A RETURN.

A. 6204                             8

  S  361. COMBINED RETURNS, EMPLOYER'S RETURNS, AND PAYMENTS. THE ADMIN-
ISTRATOR MAY REQUIRE:
  (A) THE FILING OF ANY OR ALL OF THE FOLLOWING:
  (1)  A COMBINED RETURN WHICH IN ADDITION TO THE RETURN PROVIDED FOR IN
THIS ARTICLE MAY ALSO INCLUDE RETURNS REQUIRED  TO  BE  FILED  UNDER  AN
ARTICLE  AUTHORIZED  BY ARTICLE THIRTY OF THIS CHAPTER AND UNDER ARTICLE
TWENTY-TWO OF THIS CHAPTER.
  (2) A COMBINED EMPLOYER'S RETURN WHICH IN ADDITION TO  THE  EMPLOYER'S
RETURN  PROVIDED  FOR  IN AN ARTICLE AUTHORIZED BY THIS ARTICLE MAY ALSO
INCLUDE EMPLOYER'S RETURNS REQUIRED TO BE FILED UNDER AN ARTICLE AUTHOR-
IZED BY ARTICLE THIRTY OF THIS CHAPTER AND UNDER ARTICLE  TWENTY-TWO  OF
THIS CHAPTER.
  (B) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
RESPECT  TO  THE  PAYMENT  OF  ESTIMATED TAX, THE ADMINISTRATOR MAY ALSO
REQUIRE PAYMENT OF A SINGLE AMOUNT WHICH  SHALL  BE  THE  TOTAL  OF  THE
AMOUNTS  (TOTAL  TAXES  LESS ANY CREDITS OR REFUNDS) REQUIRED TO BE PAID
WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN PAYMENT  OF  ESTIMATED  TAX
PURSUANT TO THE PROVISIONS OF THIS ARTICLE, ARTICLE THIRTY OF THIS CHAP-
TER,  AND PURSUANT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAP-
TER.
  S 362. EFFECT OF INVALIDITY IN PART; INCONSISTENCIES WITH OTHER  LAWS.
(A) IF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION, PROVISION,
OR  OTHER  PORTION  OF  THIS  ARTICLE  OR THE APPLICATION THEREOF TO ANY
PERSON OR CIRCUMSTANCES SHALL BE HELD TO BE INVALID, SUCH HOLDING  SHALL
NOT  AFFECT,  IMPAIR, OR INVALIDATE THE REMAINDER OF THIS ARTICLE OR THE
APPLICATION OF SUCH PORTION HELD INVALID, TO ANY OTHER PERSON OR CIRCUM-
STANCES, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE,
PARAGRAPH, SUBDIVISION, SECTION, PROVISION,  OR  OTHER  PORTION  THEREOF
DIRECTLY  INVOLVED  IN  SUCH  HOLDING OR TO THE PERSON AND CIRCUMSTANCES
THEREIN INVOLVED.
  (B) IF ANY PROVISION OF THIS ARTICLE IS INCONSISTENT WITH, IN CONFLICT
WITH, OR CONTRARY TO ANY OTHER PROVISION OF LAW, SUCH PROVISION OF  THIS
ARTICLE SHALL PREVAIL OVER SUCH OTHER PROVISION AND SUCH OTHER PROVISION
SHALL  BE  DEEMED  TO  HAVE BEEN AMENDED, SUPERSEDED, OR REPEALED TO THE
EXTENT OF SUCH INCONSISTENCY, CONFLICT, OR CONTRARIETY.
  S 363. DEPOSIT AND DISPOSITION OF REVENUES.  REVENUES  RESULTING  FROM
THE  IMPOSITION OF THE TAX AUTHORIZED BY THIS ARTICLE SHALL BE PAID INTO
THE TREASURY OF THE LARGE CITY AND SHALL BE CREDITED TO AND DEPOSITED IN
THE GENERAL FUND OF SUCH CITY AND SHALL BE  AVAILABLE  SPECIFICALLY  FOR
LAW  ENFORCEMENT,  PUBLIC  PROTECTION, PUBLIC SAFETY, AND TRANSPORTATION
EXPENDITURES BY SUCH LARGE CITY; PROVIDED THAT  THE  FIRST  ONE  BILLION
DOLLARS  OF  REVENUE  RECEIVED FOR ANY TAXABLE YEAR SHALL BE PAID TO THE
METROPOLITAN TRANSPORTATION AUTHORITY, CREATED BY SECTION TWELVE HUNDRED
SIXTY-THREE OF THE PUBLIC AUTHORITIES LAW, FOR ITS LAWFUL PURPOSES.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after the first of January in
the year in which this act shall have become a law.