S T A T E   O F   N E W   Y O R K
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                                  4565

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2013
                               ___________

Introduced by M. of A. KOLB, OAKS, GOODELL, RAIA, PALMESANO -- read once
  and referred to the Committee on Ways and Means

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

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

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

                                 PART A

  Section 1. The tax law is amended by adding a new section 38  to  read
as follows:
  S  38.  HIRE-NY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05913-01-3
              

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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 FOURTEEN
AND  TWO  THOUSAND  FIFTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
INSURANCE BENEFITS AT THE TIME OF HIRE,  AN  ADDITIONAL  THREE  THOUSAND
DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
  (C)  VETERAN ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND FOURTEEN AND
TWO THOUSAND FIFTEEN IF A NEW EMPLOYEE IS ALSO A VETERAN, AN  ADDITIONAL
TWO  THOUSAND  DOLLAR  CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF
EMPLOYMENT.
  (D) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND THIRTEEN.
  (3)  "BASE  EMPLOYMENT"  SHALL  MEAN  THE  AVERAGE NUMBER OF FULL TIME
EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS  SERVED  ON
ACTIVE  DUTY  IN THE UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/OR RESERVES THEREOF, AND/OR  THE  ARMY  NATIONAL  GUARD,  AIR
NATIONAL  GUARD,  NEW  YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH  SERVICE  BY
HONORABLE  DISCHARGE,  OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
  (E) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH  A  CREDIT  WAS
EARNED  LEAVES  THE  PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
EMPLOYMENT ABOVE BASE EMPLOYMENT  BUT  AT  OR  BELOW  CREDIT  EMPLOYMENT
LEVEL,  THE  CREDIT  ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO  THE  NEXT  FULL  MONTH)  THE
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
  (F)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASES IN EMPLOYMENT.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46.  HIRE-NY  TAX  CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT  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

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

                                 PART B

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

                                 PART C

  Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
section 210 of the tax law, as 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

A. 4565                             4

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

A. 4565                             5

THIS PARAGRAPH FOR A TAXPAYER WHICH IS A QUALIFIED NEW YORK MANUFACTURER
SHALL BE COMPUTED AT THE RATE OF .075 PERCENT OF  THE  TAXPAYER'S  TOTAL
BUSINESS AND INVESTMENT CAPITAL, OR THE PORTION THEREOF ALLOCATED WITHIN
THE  STATE  AS  HEREINAFTER  PROVIDED.  In  no  event  shall  the amount
prescribed by this paragraph exceed three hundred fifty thousand dollars
for qualified New York manufacturers and for  all  other  taxpayers  ten
million  dollars  for taxable years beginning on or after January first,
two thousand eight but before January first, two thousand eleven and one
million dollars for taxable years beginning on or after  January  first,
two thousand eleven.
  S 3. Clause (B) of subparagraph (ii) of paragraph (c) of subdivision 1
of  section  210  of  the  tax law, as amended by section 2 of part C of
chapter 56 of the laws of 2011, is amended to read as follows:
  (B) For taxable years beginning on or after January first,  two  thou-
sand twelve [and before January first, two thousand fifteen], the amount
prescribed  by  this  paragraph  for  [an eligible] A qualified New York
manufacturer shall be computed at the rate  of  seventy-five  hundredths
(.75)  percent  of  the  taxpayer's  minimum  taxable  income  base. For
purposes of  this  clause,  the  term  "[eligible]  qualified  New  York
manufacturer"  shall  have  the  same meaning as in subparagraph (vi) of
paragraph (a) of this subdivision.
  S 4. Subparagraph 5 of paragraph (d) of subdivision 1 of  section  210
of  the  tax  law,  as added by section 3 of part C of chapter 56 of the
laws of 2011, is amended to read as follows:
  (5) For taxable years beginning on or after January first,  two  thou-
sand  twelve  [and  before  January  first,  two  thousand fifteen], the
amounts prescribed in subparagraphs one and four of  this  paragraph  as
the  fixed  dollar  minimum  tax  for [an eligible] A qualified New York
manufacturer shall be one-half of the amounts stated in  those  subpara-
graphs.   For purposes of this subparagraph, the term "[eligible] quali-
fied New York manufacturer" shall have the same meaning as  in  subpara-
graph (vi) of paragraph (a) of this subdivision.
  S 5. This act shall take effect immediately.

                                 PART D

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

A. 4565                             6

  S 3. Paragraph (e) of subdivision 7 of section 38 of the highway  law,
as amended by chapter 196 of the laws of 1981 and as relettered by chap-
ter 153 of the laws of 1984, is amended to read as follows:
  (e)  No  such  certificate  approving or authorizing the first partial
payment or any final payment to  a  foreign  contractor  shall  be  made
unless  such  contractor shall furnish satisfactory proof that all taxes
due the state tax commission by such contractor, under the provisions of
or pursuant to a law enacted pursuant to the authority of article  nine,
[nine-a]  NINE-A, [twelve-a] TWELVE-A, [sixteen, sixteen-a, twenty-one,]
twenty-two, [twenty-three,] twenty-eight, twenty-nine or thirty  of  the
tax  law  [or article two-E of the general city law] have been paid. The
certificate of the state tax commission to  the  effect  that  all  such
taxes have been paid shall be, for purpose of this paragraph, conclusive
proof  of  the  payment  of such taxes. The term "foreign contractor" as
used in this subdivision means, in the case of an individual,  a  person
who  is  not a resident of this state, in the case of a partnership, one
having one or more partners not a resident of this  state,  and  in  the
case of a corporation, one not organized under the laws of this state.
  S  4.  Paragraph (c) of subdivision 1 and subdivision 9 of section 385
of the public authorities law, paragraph (c) of subdivision 1 as amended
by chapter 129 of the laws of 1995, subdivision 9 as added by chapter 56
of the laws of 1993, are amended to read as follows:
  (c) Such obligations shall be issued or incurred with the approval  of
the  director  of  the  budget  and  shall be special obligations of the
authority secured by and payable solely out of amounts  appropriated  by
the  legislature  as authorized pursuant to section eighty-nine-b of the
state finance law without recourse against any other assets, revenues or
funds of or other payments due to the authority. Upon payments  of  such
appropriated  amounts  from  the  fund  established  pursuant to section
eighty-nine-b of the state finance law to the account of the  authority,
such  funds  may  be pledged by the authority to secure its bonds, notes
and other obligations authorized by paragraph (b)  of  this  subdivision
and  shall be held free and clear of any claim by any person arising out
of or in connection with articles twelve-A[,] AND thirteen-A [and  twen-
ty-one] of the tax law. Without limiting the generality of the foregoing
and  without limiting the rights and duties of the commissioner of taxa-
tion and finance under articles twelve-A[,] AND thirteen-A [and  twenty-
one]  of  the  tax  law, no taxpayer, or any other person, including the
state, shall have any right or claim against the authority or any of its
bondholders to any moneys appropriated and transferred  from  the  dedi-
cated highway and bridge trust fund established by section eighty-nine-b
of  the state finance law for or in respect of a refund, rebate, credit,
reimbursement or other repayment of taxes paid under  such  articles  of
the tax law.
  9.  Nothing  contained in this section shall be deemed to restrict the
right of the state to amend, repeal, modify or otherwise alter  statutes
imposing  or  relating to any taxes or fees, including the taxes imposed
pursuant to section two  hundred  eighty-four[,  articles]  AND  ARTICLE
thirteen-A  [and  twenty-one] of the tax law and fees imposed by section
four hundred one of the vehicle and traffic law. The authority shall not
include within any resolution, contract or agreement with holders of the
bonds, notes and other obligations issued under this title any provision
which provides that a default occurs as a result of the state exercising
its right to amend, repeal, modify or otherwise alter any such taxes and
fees.

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  S 5. Subparagraph 11 of paragraph j of subdivision 1 of section 54  of
the state finance law is REPEALED.
  S 6. Subdivisions twentieth and twenty-sixth of section 171 of the tax
law,  subdivision  twentieth  as  amended  by chapter 282 of the laws of
1986, subdivision twenty-sixth as amended by chapter 61 of the  laws  of
1989 and paragraph a of subdivision twenty-sixth as amended by section 1
of  subpart D of part V-1 of chapter 57 of the laws of 2009, are amended
to read as follows:
  Twentieth. Have authority, of his  own  motion,  to  abate  any  small
unpaid  balance  of  an  assessment  of tax, or any liability in respect
thereof, under articles twelve-A, eighteen, OR twenty [or twenty-one] of
this chapter,  if  such  commissioner  determines  under  uniform  rules
prescribed  by him that the administration and collection costs involved
would not warrant collection of the amount due. He may  also  abate,  of
his  own  motion,  the  unpaid  portion of the assessment of any of such
taxes, or any liability  in  respect  thereof,  which  is  excessive  in
amount,  or is assessed after the expiration of the period of limitation
properly applicable thereto, or is erroneously or illegally assessed. No
claim for abatement under this subdivision shall be  filed  for  any  of
such taxes.
  Twenty-sixth.  a. Set the overpayment and underpayment rates of inter-
est  for  purposes of articles twelve-A, eighteen, AND twenty [and twen-
ty-one] of this chapter. Such rates shall be the overpayment and  under-
payment  rates of interest set pursuant to subsection (e) of section one
thousand ninety-six of this chapter, but the underpayment rate shall not
be less than seven and one-half percent per annum. Any such rates set by
such commissioner shall apply to taxes, or any  portion  thereof,  which
remain  or  become  due  or overpaid (other than overpayments under such
article twenty and not including reimbursements, if any,  under  any  of
such articles) on or after the date on which such rates become effective
and shall apply only with respect to interest computed or computable for
periods or portions of periods occurring in the period during which such
rates are in effect. In computing the amount of any interest required to
be  paid under such articles by such commissioner or by the taxpayer, or
any other amount determined by reference to  such  amount  of  interest,
such interest and such amount shall be compounded daily.
  b.  Cross-reference.  For  provisions  relating  to  the  power of the
commissioner of taxation and finance to abate small amounts of interest,
see subdivision twentieth of this section.
  S 7. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
section  1  of  part  R of chapter 60 of the laws of 2004, is amended to
read as follows:
  1. All taxes, interest, penalties and fees collected  or  received  by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A (except as otherwise provided in section  two  hundred  eighty-
four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except  as otherwise provided in section four hundred eighty-two there-
of), [twenty-one,] twenty-two,  twenty-six,  twenty-six-B,  twenty-eight
(except  as  otherwise  provided in section eleven hundred two or eleven
hundred three thereof), twenty-eight-A, thirty-one (except as  otherwise
provided  in  section  fourteen hundred twenty-one thereof), thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in one account with such responsible  banks,  banking  houses  or  trust

A. 4565                             8

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

A. 4565                             9

has been credited pursuant to section  one  hundred  seventy-one-c,  one
hundred  seventy-one-d,  one hundred seventy-one-e, one hundred seventy-
one-f or one hundred seventy-one-l of this article and which  is  certi-
fied  to the comptroller by the commissioner as the amount due such non-
obligated spouse pursuant to paragraph six of subsection (b) of  section
six  hundred  fifty-one  of this chapter; and (vi) the comptroller shall
deduct a like amount which the comptroller shall pay into  the  treasury
to  the  credit of the general fund from amounts subsequently payable to
the department of social services, the state university of New York, the
city university of New York, or the  higher  education  services  corpo-
ration,  or  the  revenue  arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c  of  the  state
finance  law, as the case may be, whichever had been credited the amount
originally withheld from such overpayment, and  (vii)  with  respect  to
amounts  originally  withheld  from such overpayment pursuant to section
one hundred seventy-one-l of this article and paid to the  city  of  New
York,  the  comptroller shall collect a like amount from the city of New
York.
  S 8. Subdivisions (c) and (d) of section 522 of the tax law, as  added
by chapter 170 of the laws of 1994, are amended to read as follows:
  (c)  Denial,  suspension  and revocation. The commissioner, for cause,
may deny a license and suspend or revoke any license issued  under  this
section, after an opportunity for a hearing has been afforded the carri-
er;  provided,  however,  that  a  license  may  be  denied or it may be
suspended or revoked for failure to file a return as  required  pursuant
to this article or for nonpayment of moneys due under this article prior
to  a  hearing. A violation of any of the provisions of this article [or
article twenty-one of this chapter] or of any rule or regulation of  the
commissioner promulgated under this article [or such article twenty-one]
shall  constitute sufficient cause for the denial, suspension or revoca-
tion of a license. In addition, if the commissioner enters into a  coop-
erative  agreement  with  other  jurisdictions  pursuant to section five
hundred twenty-eight of this  article,  the  commissioner  may  deny  an
application  for license where a license previously issued to the appli-
cant is under suspension or revocation by any member jurisdiction and  a
license  may  be  revoked  or  suspended for failure to comply with such
agreement. A denial, revocation or suspension  of  a  license  shall  be
final  unless  the applicant or licensee shall, within thirty days after
the giving of notice of such denial, revocation or suspension,  petition
the  division  of  tax  appeals for a hearing in accordance with article
forty of this chapter. If the commissioner  enters  into  a  cooperative
agreement  pursuant to such section five hundred twenty-eight, notice of
a hearing shall be given and a hearing held within any time restrictions
prescribed in such agreement.
  (d) Trip permits. In lieu of the license and  decal  provided  for  in
subdivision  (a)  of  this  section,  any carrier, except as hereinafter
limited, may apply to the commissioner for a trip permit for any  quali-
fied  motor  vehicle to be operated by him OR HER on the public highways
of this state. Application for the trip permit shall be made on  a  form
prescribed by the commissioner and shall contain such information as the
commissioner  shall  require.  The application shall be accompanied by a
fee of twenty-five dollars for each qualified motor vehicle.  Each  trip
permit shall be valid for a period of seventy-two hours from the time of
its  issuance. The issuance of a trip permit for a qualified motor vehi-
cle shall exempt the carrier from the requirement of filing returns  and
payment  of  the taxes imposed by this article and section three hundred

A. 4565                            10

one-h of this chapter on the operation of such qualified  motor  vehicle
for  the effective period of the permit but no refund application may be
filed on account of trip permit applications. [Provided,  however,  that
in order for any person liable for the tax to claim such exemption, such
person  must  retain  a  copy  of the trip permit in his records for the
complete period of time required by section five hundred seven  of  this
chapter.]  A  carrier may not apply for more than ten trip permits under
this section during a single calendar year.
  S 9. Section 528 of the tax law, as added by chapter 170 of  the  laws
of  1994,  subdivision (b) as amended by section 35 of part K of chapter
61 of the laws of 2011, is amended to read as follows:
  S 528. Procedure, administration and disposition  of  revenues.    (a)
[General.  The provisions of subdivision two of section five hundred six
and sections five hundred seven through five  hundred  fifteen  of  this
chapter  (excluding sections five hundred eight, five hundred twelve and
five hundred thirteen) shall apply to the  provisions  of  this  article
with  the  same  force and effect as if the language of such subdivision
and sections had been incorporated in full into  this  article  and  had
expressly  referred  to the tax under this article, except to the extent
that any such provision is either inconsistent with or not  relevant  to
this article or inconsistent with a provision of any agreement which the
commissioner  enters  into  pursuant to subdivision (b) of this section,
with such modification as may be necessary to adapt the language of such
provisions to the  tax  imposed  by  this  article,  provided  that  (1)
notwithstanding  such  section  five hundred ten and subdivision four of
section two thousand six of this chapter, a determination,  as  provided
in  such  section  five hundred ten, relating to the tax imposed by this
article, shall finally and conclusively fix such tax, unless the  person
against  whom  it is assessed shall, within thirty days after the giving
of notice of such determination, petition the division  of  tax  appeals
for  a  hearing,  or  unless  the commissioner on the commissioner's own
motion shall redetermine the same; (2) the term "vehicular  unit"  shall
be  read  as  "qualified  motor vehicle"; (3) if the commissioner enters
into a cooperative  agreement  under  this  section,  the  reference  in
section  five  hundred  fourteen-a  of this chapter to the United States
postmark shall include a postmark made by the Canadian  postal  service;
and  (4)  if  the commissioner enters into a cooperative agreement under
this section, for purposes of applying subdivision four of section  five
hundred  fourteen  of  this  chapter, the banks, banking houses or trust
companies which may be designated by the commissioner  may  include  any
such  banks,  banking  houses  or  trust companies designated or seeking
designation by other member jurisdictions. For purposes  of  determining
the  amount  of  tax  due in accordance with section five hundred ten of
this chapter as incorporated  by  this  subdivision,  any  return  filed
before  the  last  day  prescribed  for its filing shall be deemed to be
filed on such last day. The commissioner is authorized  to  provide  for
the  joint  administration,  in  whole or in part, of the tax imposed by
article twenty-one of this chapter and the tax imposed by this article.
  (b)]  Cooperative   agreements.   Notwithstanding   any   inconsistent
provision of law, the commissioner is authorized to enter into a cooper-
ative agreement with other states, the District of Columbia or provinces
or  territories  of  Canada for the administration of the tax imposed by
this article and similar taxes imposed by other member jurisdictions and
for the reporting and payment of tax  to  a  single  base  state  and  a
proportional  sharing of revenue of taxes relating to fuel use among the
jurisdictions where a qualified motor vehicle is operated. The agreement

A. 4565                            11

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

A. 4565                            12

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

A. 4565                            13

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

A. 4565                            14

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

A. 4565                            15

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

A. 4565                            16

  S  1825.  Violation  of secrecy provisions of the tax law.--Any person
who violates the provisions of subdivision (b)  of  section  twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two  hundred  eleven, subdivision (a) of section three hundred fourteen,
subdivision  one  or  two  of section four hundred thirty-seven, section
four hundred eighty-seven, [subdivision  one  or  two  of  section  five
hundred  fourteen,]  subsection (e) of section six hundred ninety-seven,
subsection (a) of section nine hundred ninety-four, subdivision  (a)  of
section  eleven  hundred forty-six, section twelve hundred eighty-seven,
subdivision (a) of section fourteen hundred eighteen, subsection (a)  of
section fourteen hundred sixty-seven, subdivision (a) of section fifteen
hundred  eighteen, subdivision (a) of section fifteen hundred fifty-five
of this chapter, and subdivision (e) of section 11-1797 of the  adminis-
trative code of the city of New York shall be guilty of a misdemeanor.
  S  17.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 2 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
five,  two  hundred  eighty-nine-e,  three  hundred one-j, [five hundred
fifteen] and eleven hundred sixty-seven of the  tax  law,  section  four
hundred  one  of  the vehicle and traffic law, and section thirty-one of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
pursuant to section fifty-two and subdivisions five, eight and twelve of
section eighty-eight of the highway law, subdivision fifteen of  section
three  hundred  eighty-five of the vehicle and traffic law, section [two
of the chapter] NINE OF PART U1 OF CHAPTER SIXTY-TWO of the laws of  two
thousand  three  that amended this paragraph, subdivision (d) of section
three hundred four-a, paragraph one of subdivision (a)  and  subdivision
(d)  of  section  three  hundred five, subdivision six-a of section four
hundred fifteen and subdivision (g) of section twenty-one hundred  twen-
ty-five of the vehicle and traffic law, section fifteen of this chapter,
excepting  moneys  deposited  with  the  state on account of betterments
performed pursuant to subdivision twenty-seven  or  subdivision  thirty-
five  of  section  ten of the highway law, (iii) any moneys collected by
the department of  transportation  for  services  provided  pursuant  to
agreements  entered into in accordance with section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected  therefor  or
credited or transferred thereto from any other fund, account or source.
  S  18.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 3 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
eighty-nine-e,  three  hundred  one-j, [five hundred fifteen] and eleven
hundred sixty-seven of the tax law, section  four  hundred  one  of  the
vehicle  and traffic law, and section thirty-one of chapter fifty-six of
the laws of nineteen hundred  ninety-three,  (ii)  all  fees,  fines  or
penalties  collected  by  the commissioner of transportation pursuant to
section fifty-two and subdivisions five, eight  and  twelve  of  section
eighty-eight  of  the  highway law, subdivision fifteen of section three
hundred eighty-five of the vehicle and traffic law, section  fifteen  of
this  chapter,  excepting  moneys deposited with the state on account of

A. 4565                            17

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