S T A T E   O F   N E W   Y O R K
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                                  6920

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 25, 2013
                               ___________

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

AN  ACT  to  amend  the general city law and the tax law, in relation to
  imposing the earnings tax on nonresidents; and to amend the real prop-
  erty tax law, in relation to a real property tax credit

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

  Section  1.    The general city law is amended by adding a new article
2-E to read as follows:
                                ARTICLE 2-E
                    CITY EARNINGS TAX ON NONRESIDENTS
SECTION 25-M. AUTHORIZATION TO IMPOSE TAX.
        25-N. ADMINISTRATIVE PROVISIONS.
        25-O. DEPOSIT AND DISPOSITION OF REVENUES.
  S 25-M.  AUTHORIZATION TO IMPOSE TAX.  IN ADDITION TO ANY OTHER TAXES,
NOW AUTHORIZED BY LAW, ANY CITY HAVING A POPULATION OF  ONE  MILLION  OR
MORE  IS  HEREBY  AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS
IMPOSING A TAX ON THE EARNINGS OF NONRESIDENTS OF SUCH CITY TO BE ADMIN-
ISTERED IN THE MANNER PROVIDED FOR IN THIS ARTICLE BY THE  ADMINISTRATOR
AS DEFINED IN SECTION ONE OF THE MODEL LOCAL LAW HEREINAFTER SET FORTH.
  THE  TAX  AUTHORIZED  BY  THIS ARTICLE MAY BE IMPOSED ONLY IF THE CITY
IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE ALSO IMPOSES A  TAX  ON  THE
PERSONAL  INCOME  OF ITS RESIDENTS.   THE RATES OF SUCH TAX SHALL BE THE
RATES CONTAINED IN EITHER SECTION TWO OR TWO-A OF THE  MODEL  LOCAL  LAW
AND  SUCH  RATES  MAY  BE REDUCED AND INCREASED, PROVIDED THAT THE RATES
SHALL NOT BE FIXED HIGHER THAN THOSE CONTAINED IN SECTION TWO-A OF  SUCH
MODEL LOCAL LAW.
  THE  TERMS  OF  SUCH  LOCAL LAW SHALL BE SUBSTANTIALLY THE SAME AS THE
FOLLOWING MODEL LOCAL LAW EXCEPT THAT THE APPENDIX AND THE SUPPLEMENT TO
THE APPENDIX IN SUCH LOCAL  LAW  MAY  BE  AMENDED  FOR  THE  PURPOSE  OF
CONFORMING  IT  WITH  THE  UNITED  STATES INTERNAL REVENUE CODE OR OTHER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10450-02-3
              

A. 6920                             2

FEDERAL LAWS RELATING TO TAXATION AS PRESENTLY IN EFFECT OR AS THEY  MAY
BE AMENDED.
                      EARNINGS TAX ON NONRESIDENTS
  SEC.  1.   MEANING OF TERMS.--AS USED IN THIS LOCAL LAW, THE FOLLOWING
TERMS SHALL MEAN AND INCLUDE:  (A)  "ADMINISTRATOR"  MEANS  THE  FINANCE
ADMINISTRATOR  OR OTHER FISCAL OFFICER OF THE CITY CHARGED WITH ADMINIS-
TRATION OF THE TAX ON EARNINGS OF NONRESIDENTS  IMPOSED  BY  THIS  LOCAL
LAW, EXCEPT WITH RESPECT TO TAXES IMPOSED FOR ANY TAXABLE YEAR BEGINNING
ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX, SUCH TERM SHALL
MEAN STATE TAX COMMISSION.
  (B) "CITY" MEANS THE CITY IMPOSING THE TAX.
  (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 SHALL NOT INCLUDE, IN THE CASE  OF
A  NONRESIDENT INDIVIDUAL OR PARTNER OF A PARTNERSHIP DOING AN INSURANCE
BUSINESS AS A MEMBER OF THE NEW YORK  INSURANCE  EXCHANGE  DESCRIBED  IN
SECTION  SIX  THOUSAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY ITEM OF
INCOME, GAIN, LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS SUCH  INDIVID-
UAL'S  DISTRIBUTIVE OR PRO RATA SHARE FOR FEDERAL INCOME TAX PURPOSES OR
WHICH SUCH INDIVIDUAL IS REQUIRED TO TAKE INTO  ACCOUNT  SEPARATELY  FOR
FEDERAL  INCOME  TAX PURPOSES AND (2) WAGES SHALL INCLUDE (I) 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 TITLE THIRTEEN OF THE ADMINISTRATIVE
CODE OF THE CITY OF NEW YORK OR SUBDIVISION NINETEEN OF SECTION  TWENTY-
FIVE HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW, (II) 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, (III)
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
(IV)  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

A. 6920                             3

(2) THE DEDUCTIONS ALLOWED BY SECTIONS SIX  HUNDRED  FIFTY-ONE  AND  SIX
HUNDRED  SIXTY-ONE  OF  SAID  CODE  TO  THE  EXTENT  THAT THEY REPRESENT
DISTRIBUTIONS OR PAYMENTS TO A RESIDENT OF THE 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 DETER-
MINING  NET  EARNINGS FROM SELF-EMPLOYMENT TAXABLE UNDER THIS LOCAL LAW.
PROVIDED HOWEVER, IN THE CASE OF A NONRESIDENT INDIVIDUAL OR PARTNER  OF
A PARTNERSHIP DOING AN INSURANCE BUSINESS DESCRIBED IN SECTION SIX THOU-
SAND  TWO  HUNDRED  ONE  OF THE INSURANCE LAW, ANY ITEM OF INCOME, GAIN,
LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS THE  INDIVIDUAL'S  DISTRIBU-
TIVE  OR  PRO  RATA  SHARE  FOR FEDERAL INCOME TAX PURPOSES OR WHICH THE
INDIVIDUAL IS REQUIRED TO  TAKE  INTO  ACCOUNT  SEPARATELY  FOR  FEDERAL
INCOME  TAX  PURPOSES  SHALL  NOT BE CONSIDERED TO BE "NET EARNINGS FROM
SELF-EMPLOYMENT".
  (F) "TAXABLE YEAR" SHALL MEAN THE TAXPAYER'S TAXABLE YEAR FOR  FEDERAL
INCOME TAX PURPOSES.
  (G) RESIDENT INDIVIDUAL.--A RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL:
  (1)  WHO  IS  DOMICILED IN THE CITY, UNLESS (A) HE OR SHE MAINTAINS NO
PERMANENT PLACE OF ABODE IN THE CITY, MAINTAINS  A  PERMANENT  PLACE  OF
ABODE  ELSEWHERE,  AND SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS
OF THE TAXABLE YEAR IN THE 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 CITY FOR MORE THAN NINETY DAYS  AND  DOES  NOT
MAINTAIN  A  PERMANENT  PLACE  OF  ABODE IN THE 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 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 CITY BUT MAINTAINS A PERMANENT PLACE
OF ABODE IN THE CITY AND SPENDS IN THE AGGREGATE MORE THAN  ONE  HUNDRED
EIGHTY-THREE  DAYS OF THE TAXABLE YEAR IN THE CITY, UNLESS SUCH INDIVID-
UAL IS IN ACTIVE SERVICE IN THE ARMED FORCES OF THE UNITED STATES.
  (H) NONRESIDENT INDIVIDUAL.--A NONRESIDENT INDIVIDUAL MEANS  AN  INDI-
VIDUAL WHO IS NOT A RESIDENT.
  (I)  RESIDENT ESTATE OR TRUST.--A RESIDENT ESTATE OR TRUST MEANS:  (1)
THE ESTATE OF A DECEDENT WHO AT HIS OR HER DEATH WAS  DOMICILED  IN  THE
CITY,
  (2)  A  TRUST,  OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS-
FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH  WAS  DOMICILED  IN
THE CITY, OR
  (3) A TRUST, OR PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
  (A)  A  PERSON  DOMICILED  IN  THE  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 CITY AT THE TIME SUCH TRUST, OR PORTION
OF A TRUST, BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN  SUCH  PROPERTY

A. 6920                             4

WAS  TRANSFERRED  TO  THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREVOCABLE.
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 CONSTITUTES
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 EXER-
CISED HAS BEEN TERMINATED.
  (J) NONRESIDENT ESTATE OR TRUST.--A NONRESIDENT ESTATE OR TRUST  MEANS
AN ESTATE OR TRUST WHICH IS NOT A RESIDENT.
  (K)  UNLESS  A DIFFERENT MEANING IS CLEARLY REQUIRED, ANY TERM USED IN
THIS LOCAL LAW 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 THE LAWS OF THIS STATE. ANY REFERENCE IN
THIS LOCAL LAW TO THE INTERNAL REVENUE 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 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 LOCAL LAW 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 LOCAL LAW
AS ENACTS THIS LOCAL LAW. (THE QUOTATION OF THE AFORESAID  LAWS  OF  THE
UNITED  STATES  IS INTENDED TO MAKE THEM A PART OF THIS LOCAL LAW 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 LOCAL LAW.)
  (L) 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" MEANS A DOMESTIC LIMITED LIABIL-
ITY COMPANY OR A  FOREIGN  LIMITED  LIABILITY  COMPANY,  AS  DEFINED  IN
SECTION  ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, A LIMITED
LIABILITY 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.
  SEC. 2.  PERSONS SUBJECT TO TAX.--(A)   IMPOSITION OF TAX.--A  TAX  IS
HEREBY  IMPOSED  FOR  EACH  TAXABLE  YEAR ENDING ON OR AFTER JULY FIRST,
NINETEEN HUNDRED SIXTY-SIX ON THE WAGES EARNED, AND  NET  EARNINGS  FROM
SELF-EMPLOYMENT,  WITHIN  THE  CITY,  OF  EVERY  NONRESIDENT INDIVIDUAL,
ESTATE AND TRUST WHICH SHALL COMPRISE:
  (1)  A TAX AT THE RATE OF ONE-FOURTH OF ONE PERCENT ON ALL WAGES.
  (2)  A TAX AT THE RATE OF THREE-EIGHTHS OF  ONE  PERCENT  ON  ALL  NET
EARNINGS FROM SELF-EMPLOYMENT.
  (B)   EXCLUSION.--(1)   IN COMPUTING THE AMOUNT OF WAGES AND NET EARN-
INGS FROM SELF-EMPLOYMENT TAXABLE UNDER SUBSECTION (A), THERE  SHALL  BE
ALLOWED  AN  EXCLUSION  AGAINST THE TOTAL OF WAGES AND NET EARNINGS FROM
SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
  TOTAL OF WAGES AND NET EARNINGS
  FROM SELF-EMPLOYMENT                 EXCLUSION ALLOWABLE
                   NOT OVER $10,000               $3,000
  OVER $10,000 BUT NOT OVER $20,000               $2,000

A. 6920                             5

  OVER $20,000 BUT NOT OVER $30,000               $1,000
  OVER $30,000                                      NONE
  (2)    THE EXCLUSION ALLOWABLE SHALL BE APPLIED PRO RATA AGAINST WAGES
AND NET EARNINGS FROM SELF-EMPLOYMENT.
  (3)  FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE  EXCLUSION  ALLOW-
ABLE SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
  (C)    LIMITATION.--IN NO EVENT SHALL A TAXPAYER BE SUBJECT TO THE TAX
UNDER THIS LOCAL LAW IN AN AMOUNT  GREATER  THAN  HE  OR  SHE  WOULD  BE
REQUIRED  TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT TO
A TAX ON PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED  BY  THE  CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW.
  SEC.   2-A. PERSONS SUBJECT TO TAX.--(A) IMPOSITION OF TAX.--(1) A TAX
IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ENDING ON OR AFTER  JULY  FIRST,
NINETEEN HUNDRED SIXTY-SIX AND ON OR BEFORE DECEMBER THIRTY-FIRST, NINE-
TEEN  HUNDRED SEVENTY AND FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER
THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE, ON THE WAGES EARNED, AND NET
EARNINGS FROM SELF-EMPLOYMENT, WITHIN THE  CITY,  OF  EVERY  NONRESIDENT
INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
  (I) A TAX AT THE RATE OF ONE-FOURTH OF ONE PERCENT ON ALL WAGES.
  (II)  A  TAX  AT  THE  RATE OF THREE-EIGHTHS OF ONE PERCENT ON ALL NET
EARNINGS FROM SELF-EMPLOYMENT.
  (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY  FIRST,  NINE-
TEEN  HUNDRED SEVENTY-ONE AND ENDING ON OR BEFORE DECEMBER THIRTY-FIRST,
NINETEEN HUNDRED NINETY-NINE, A TAX  IS  HEREBY  IMPOSED  ON  THE  WAGES
EARNED, AND NET EARNINGS FROM SELF-EMPLOYMENT, WITHIN THE CITY, OF EVERY
NONRESIDENT INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
  (I)  A  TAX AT THE RATE OF FORTY-FIVE HUNDREDTHS OF ONE PERCENT ON ALL
WAGES.
  (II) A TAX AT THE RATE OF SIXTY-FIVE HUNDREDTHS OF ONE PERCENT ON  ALL
NET EARNINGS FROM SELF-EMPLOYMENT.
  (3)  FOR  EACH  TAXABLE YEAR BEGINNING IN NINETEEN HUNDRED SEVENTY AND
ENDING IN NINETEEN HUNDRED SEVENTY-ONE, TWO  TENTATIVE  TAXES  SHALL  BE
COMPUTED,  THE  FIRST  AS  PROVIDED  IN  PARAGRAPH (1) AND THE SECOND AS
PROVIDED IN PARAGRAPH (2), AND THE TAX FOR EACH SUCH YEAR SHALL  BE  THE
SUM OF THAT PROPORTION OF EACH TENTATIVE TAX WHICH THE NUMBER OF DAYS IN
NINETEEN  HUNDRED  SEVENTY  AND  THE  NUMBER OF DAYS IN NINETEEN HUNDRED
SEVENTY-ONE, RESPECTIVELY, BEARS TO THE NUMBER OF  DAYS  IN  THE  ENTIRE
TAXABLE YEAR.
  (4)  FOR  EACH  TAXABLE YEAR BEGINNING IN NINETEEN HUNDRED NINETY-NINE
AND ENDING IN TWO THOUSAND, TWO TENTATIVE TAXES SHALL BE  COMPUTED,  THE
FIRST  AS  PROVIDED IN PARAGRAPH (2) AND THE SECOND AS PROVIDED IN PARA-
GRAPH (1), AND THE TAX FOR EACH SUCH YEAR  SHALL  BE  THE  SUM  OF  THAT
PROPORTION  OF  EACH  TENTATIVE TAX WHICH THE NUMBER OF DAYS IN NINETEEN
HUNDRED NINETY-NINE AND THE NUMBER OF DAYS IN TWO THOUSAND,  RESPECTIVE-
LY, BEARS TO THE NUMBER OF DAYS IN THE ENTIRE TAXABLE YEAR.
  (B)  EXCLUSION.--(1) IN COMPUTING THE AMOUNT OF WAGES AND NET EARNINGS
FROM SELF-EMPLOYMENT  TAXABLE  UNDER  SUBSECTION  (A),  THERE  SHALL  BE
ALLOWED  AN  EXCLUSION  AGAINST THE TOTAL OF WAGES AND NET EARNINGS FROM
SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
  TOTAL OF WAGES AND NET EARNINGS
  FROM SELF-EMPLOYMENT             EXCLUSION ALLOWABLE
                  NOT OVER $10,000           $3,000
  OVER $10,000 BUT NOT OVER $20,000           $2,000
  OVER $20,000 BUT NOT OVER $30,000           $1,000
  OVER                      $30,000           NONE

A. 6920                             6

  (2) THE EXCLUSION ALLOWABLE SHALL BE APPLIED PRO  RATA  AGAINST  WAGES
AND NET EARNINGS FROM SELF-EMPLOYMENT.
  (3) FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE EXCLUSION ALLOWABLE
SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
  (C)  LIMITATION.--IN  NO  EVENT SHALL A TAXPAYER BE SUBJECT TO THE TAX
UNDER THIS LOCAL LAW IN AN AMOUNT  GREATER  THAN  HE  OR  SHE  WOULD  BE
REQUIRED  TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT TO
A TAX ON PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED  BY  THE  CITY
PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW OR THE TAX LAW.
  SEC. 3.  TAXABLE YEARS TO WHICH TAX IMPOSED BY THIS LOCAL LAW APPLIES;
TAX  FOR  TAXABLE  YEARS BEGINNING PRIOR TO AND ENDING AFTER JULY FIRST,
NINETEEN HUNDRED SIXTY-SIX.--(A)   GENERAL.-- THE TAX  IMPOSED  BY  THIS
LOCAL  LAW IS IMPOSED FOR EACH TAXABLE YEAR BEGINNING WITH TAXABLE YEARS
ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.
  (B)  ALTERNATE METHODS FOR DETERMINING TAX FOR TAXABLE YEARS ENDING ON
OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.-- (1) THE TAX  FOR  ANY
TAXABLE  YEAR  ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX
AND ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, SHALL  BE
THE  SAME  PART  OF THE TAX WHICH WOULD HAVE BEEN IMPOSED HAD THIS LOCAL
LAW BEEN IN EFFECT FOR THE ENTIRE TAXABLE YEAR AS THE NUMBER  OF  MONTHS
(OR  MAJOR  PORTIONS  THEREOF)  OF THE TAXABLE YEAR OCCURRING AFTER JULY
FIRST, NINETEEN HUNDRED SIXTY-SIX IS OF THE NUMBER OF MONTHS  (OR  MAJOR
PORTIONS THEREOF) IN THE TAXABLE YEAR.
  (2)  (I)    IN  LIEU OF THE METHOD OF COMPUTATION OF TAX PRESCRIBED IN
PARAGRAPH (1), IF THE TAXPAYER MAINTAINS ADEQUATE RECORDS FOR ANY  TAXA-
BLE  YEAR  ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX AND
ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, THE  TAX  FOR
SUCH  TAXABLE  YEAR, AT THE ELECTION OF THE TAXPAYER, MAY BE COMPUTED ON
THE BASIS OF THE WAGES WHICH THE TAXPAYER WOULD HAVE REPORTED HAD HE  OR
SHE  FILED A FEDERAL INCOME TAX RETURN FOR A TAXABLE YEAR BEGINNING JULY
FIRST, NINETEEN HUNDRED SIXTY-SIX AND ENDING  WITH  THE  CLOSE  OF  SUCH
TAXABLE  YEAR  ENDING  ON  OR  BEFORE  JUNE  THIRTIETH, NINETEEN HUNDRED
SIXTY-SEVEN, AND THE NET EARNINGS FROM SELF-EMPLOYMENT WHICH THE TAXPAY-
ER WOULD HAVE REPORTED FOR FEDERAL INCOME TAX PURPOSES  HAD  HE  OR  SHE
FILED  A  SELF-EMPLOYMENT  TAX  RETURN FOR A TAXABLE YEAR BEGINNING JULY
FIRST, NINETEEN HUNDRED SIXTY-SIX AND ENDING  WITH  THE  CLOSE  OF  SUCH
TAXABLE  YEAR  ENDING  ON  OR  BEFORE  JUNE  THIRTIETH, NINETEEN HUNDRED
SIXTY-SEVEN.
  (II) FOR PURPOSES OF THIS PARAGRAPH, THE  EXCLUSIONS  ALLOWABLE  UNDER
SECTION TWO SHALL BE REDUCED BY A FRACTION THE NUMERATOR OF WHICH IS THE
NUMBER  OF MONTHS (OR MAJOR PORTIONS THEREOF) OF THE TAXABLE YEAR OCCUR-
RING BEFORE JULY FIRST, NINETEEN HUNDRED SIXTY-SIX AND  THE  DENOMINATOR
OF  WHICH  IS  THE  NUMBER  OF MONTHS (OR MAJOR PORTIONS THEREOF) IN THE
TAXABLE YEAR.  EXCEPT AS PROVIDED IN THIS PARAGRAPH, THE  TAX  FOR  SUCH
PERIOD ENDING ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN,
SHALL  BE COMPUTED IN ACCORDANCE WITH THE OTHER PROVISIONS OF THIS LOCAL
LAW.
  SEC. 4.  ALLOCATION TO THE CITY.--(A)  GENERAL.-- IF NET EARNINGS FROM
SELF-EMPLOYMENT ARE DERIVED FROM SERVICES PERFORMED,  OR  FROM  SOURCES,
WITHIN AND WITHOUT THE CITY, THERE SHALL BE ALLOCATED TO THE 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
CITY  ALL OF HIS OR HER NET EARNINGS FROM SELF-EMPLOYMENT SHALL BE ALLO-
CATED TO THE CITY.

A. 6920                             7

  (2)  ALLOCATION BY TAXPAYER'S BOOKS.-- THE  PORTION  OF  NET  EARNINGS
FROM  SELF-EMPLOYMENT  ALLOCABLE  TO THE 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 CITY.
  (3)  ALLOCATION BY FORMULA.-- IF PARAGRAPH (2) DOES NOT APPLY  TO  THE
TAXPAYER,  THE PORTION OF NET EARNINGS FROM SELF-EMPLOYMENT ALLOCABLE TO
THE CITY SHALL BE DETERMINED BY MULTIPLYING (A) NET EARNINGS FROM  SELF-
EMPLOYMENT  WITHIN  AND  WITHOUT  THE  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 CITY, BY (B) THE AVERAGE OF THE
VALUE, AT THE BEGINNING AND END OF THE TAXABLE YEAR,  OF  ALL  REAL  AND
TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM SELF-EM-
PLOYMENT  AND  LOCATED  BOTH  WITHIN  AND  WITHOUT  THE 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  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-EMPLOYMENT
DERIVED FROM A TRADE OR BUSINESS CARRIED ON BOTH WITHIN AND WITHOUT  THE
CITY.
  (III)    GROSS INCOME PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING
(A) THE GROSS SALES OR CHARGES FOR SERVICES PERFORMED BY OR  THROUGH  AN
AGENCY  LOCATED  WITHIN THE CITY, BY (B) THE TOTAL OF ALL GROSS SALES OR
CHARGES FOR SERVICES PERFORMED WITHIN AND WITHOUT THE CITY.   THE  SALES
OR  CHARGES  TO BE ALLOCATED TO THE CITY SHALL INCLUDE ALL SALES NEGOTI-
ATED 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 AGEN-
CIES OF THE TRADE OR BUSINESS FROM WHICH  A  TAXPAYER  IS  DERIVING  NET
EARNINGS FROM SELF-EMPLOYMENT, SITUATED WITHIN THE CITY.
  (C)  OTHER  ALLOCATION  METHODS.--  THE  PORTION  OF NET EARNINGS FROM
SELF-EMPLOYMENT ALLOCABLE TO THE 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 SUBSECTION (B).
  (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 SUBSECTION (B) OR (C), BUT SHALL BE CONSIDERED AS ENTIRELY DERIVED
FROM OR CONNECTED WITH THE PLACE IN WHICH SUCH PROPERTY IS LOCATED.
  SEC. 5.  ACCOUNTING PERIODS AND METHODS.--(A)  ACCOUNTING PERIODS.-- A
TAXPAYER'S TAXABLE YEAR UNDER THIS LOCAL LAW 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 LOCAL LAW SHALL BE SIMILARLY CHANGED.    IF  A  TAXABLE
PERIOD OF LESS THAN TWELVE MONTHS RESULTS FROM A CHANGE OF TAXABLE YEAR,

A. 6920                             8

THE  EXCLUSION  ALLOWABLE  UNDER SECTION TWO OR TWO-A  OF THIS LOCAL LAW
SHALL BE PRORATED UNDER REGULATIONS OF THE ADMINISTRATOR.
  (C)  ACCOUNTING METHODS.--A TAXPAYER'S METHOD OF ACCOUNTING UNDER THIS
SECTION 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  CITY  SHALL  BE COMPUTED UNDER SUCH METHOD AS IN THE OPINION OF THE
ADMINISTRATOR CLEARLY REFLECTS NET EARNINGS FROM SELF-EMPLOYMENT  WITHIN
THE 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 LOCAL LAW SHALL BE SIMILARLY CHANGED.
  (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  REGU-
LATIONS OF THE ADMINISTRATOR.
  SEC. 6.  WITHHOLDING OF TAX ON WAGES.--GENERAL.--ON OR AFTER THE FIRST
PAYROLL  PERIOD  BEGINNING FORTY-FIVE DAYS AFTER THE DATE THIS LOCAL LAW
BECOMES EFFECTIVE EVERY EMPLOYER MAINTAINING AN  OFFICE  OR  TRANSACTING
BUSINESS WITHIN THIS STATE AND MAKING PAYMENT OF ANY WAGES TAXABLE UNDER
THIS  LOCAL  LAW  SHALL  DEDUCT  AND  WITHHOLD  FROM SUCH WAGES FOR EACH
PAYROLL PERIOD A TAX COMPUTED IN SUCH MANNER AS TO  RESULT,  SO  FAR  AS
PRACTICABLE, IN WITHHOLDING FROM THE EMPLOYEE'S WAGES DURING EACH CALEN-
DAR  YEAR AN AMOUNT SUBSTANTIALLY EQUIVALENT TO THE TAX REASONABLY ESTI-
MATED TO BE DUE FROM THE EMPLOYEE UNDER THIS LOCAL LAW.   THE METHOD  OF
DETERMINING THE AMOUNT TO BE WITHHELD SHALL BE PRESCRIBED BY REGULATIONS
OF THE ADMINISTRATOR.
  SEC.  7. WITHHOLDING OF TAX ON WAGES FOR TAXABLE PERIODS COMMENCING ON
OR AFTER JANUARY FIRST, NINETEEN  HUNDRED  SEVENTY-SIX.--THE  PROVISIONS
CONTAINED  IN  SECTIONS SIX, EIGHT, NINE, TEN, ELEVEN AND TWELVE OF THIS
LOCAL LAW SHALL NOT BE APPLICABLE TO TAXES IMPOSED FOR  TAXABLE  PERIODS
COMMENCING  ON  OR  AFTER  JANUARY  FIRST,  NINETEEN HUNDRED SEVENTY-SIX
PROVIDED HOWEVER, WITH RESPECT TO SUCH PERIODS, THE PROVISIONS CONTAINED
IN PART FIVE OF ARTICLE TWENTY-TWO OF THE TAX LAW  SHALL  BE  APPLICABLE
WITH  THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN INCORPO-
RATED IN FULL  IN  THIS  SECTION  EXCEPT  WHERE  INCONSISTENT  WITH  THE
PROVISIONS  OF  THIS  ARTICLE,  EXCEPT  THAT THE TERM "AGGREGATE AMOUNT"
CONTAINED IN PARAGRAPHS ONE, TWO AND THREE OF SUBSECTION (A) OF  SECTION
SIX  HUNDRED SEVENTY-FOUR OF THE TAX LAW SHALL MEAN THE AGGREGATE OF THE
AGGREGATE AMOUNTS OF NEW YORK STATE PERSONAL INCOME TAX,  CITY  EARNINGS
TAX ON NONRESIDENTS AND CITY PERSONAL INCOME TAX ON RESIDENTS AUTHORIZED
PURSUANT  TO  ARTICLE  THIRTY OF THE TAX LAW REQUIRED TO BE DEDUCTED AND
WITHHELD AND PROVIDED, HOWEVER, THAT THE PROVISIONS OF  SUCH  PARAGRAPHS
SHALL  NOT BE APPLICABLE TO EMPLOYER'S RETURNS REQUIRED TO BE FILED WITH
RESPECT TO TAXES REQUIRED TO BE DEDUCTED AND WITHHELD DURING THE  CALEN-

A. 6920                             9

DAR  YEAR  NINETEEN  HUNDRED  SEVENTY-SIX,  BUT  SUCH  RETURNS  SHALL BE
REQUIRED TO BE FILED WITH THE COMMISSIONER OF TAXATION  AND  FINANCE  AT
THE  TIMES  AND  IN THE MANNER PROVIDED FOR IN SUBSECTION (A) OF SECTION
TEN  OF  THIS  LOCAL  LAW,  EXCEPT  THE  TERM  "ADMINISTRATOR"  IN  SUCH
SUBSECTION SHALL BE READ AS "COMMISSIONER OF TAXATION AND FINANCE."
  SEC.  8. INFORMATION STATEMENT FOR EMPLOYEE.--EVERY EMPLOYER  REQUIRED
TO  DEDUCT  AND  WITHHOLD  TAX UNDER THIS LOCAL LAW FROM THE WAGES OF AN
EMPLOYEE, 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  CITY,  THE  AMOUNT
DEDUCTED AND WITHHELD AS TAX, AND SUCH OTHER INFORMATION AS THE ADMINIS-
TRATOR MAY PRESCRIBE.
  SEC. 9.  CREDIT FOR TAX WITHHELD.--WAGES UPON WHICH TAX IS REQUIRED TO
BE  WITHHELD  SHALL BE TAXABLE UNDER THIS LOCAL LAW AS IF NO WITHHOLDING
WERE REQUIRED, BUT ANY AMOUNT OF  TAX  ACTUALLY  DEDUCTED  AND  WITHHELD
UNDER  THIS  LOCAL LAW 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.
  SEC. 10.  EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES.--(A) GENER-
AL.--ON  OR  AFTER  THE  FIRST  PAYROLL PERIOD BEGINNING FORTY-FIVE DAYS
AFTER THE EFFECTIVE DATE OF THIS LOCAL LAW, EVERY EMPLOYER  REQUIRED  TO
DEDUCT  AND  WITHHOLD  TAX UNDER THIS LOCAL LAW SHALL, FOR EACH CALENDAR
MONTH, ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING  THE  CLOSE
OF  SUCH  CALENDAR  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  SUCCEEDING  YEAR.    WHERE  THE  AGGREGATE  AMOUNT
REQUIRED  TO  BE  DEDUCTED AND WITHHELD BY ANY EMPLOYER UNDER THIS LOCAL
LAW AND UNDER ANY LOCAL LAW 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 IS LESS THAN  TWENTY-FIVE  DOLLARS  IN  A  CALENDAR
MONTH  AND THE AGGREGATE OF SUCH TAXES FOR THE SEMI-ANNUAL PERIOD 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  THIR-
TY-FIRST  FOR  THE SEMI-ANNUAL PERIOD ENDING ON JUNE THIRTIETH AND ON OR
BEFORE JANUARY THIRTY-FIRST FOR THE SEMI-ANNUAL PERIOD ENDING ON  DECEM-
BER  THIRTY-FIRST.    THE  ADMINISTRATOR MAY, IF HE OR SHE BELIEVES SUCH
ACTION NECESSARY FOR THE PROTECTION OF THE REVENUES, REQUIRE ANY EMPLOY-
ER TO MAKE A RETURN AND PAY TO HIM THE TAX DEDUCTED AND WITHHELD AT  ANY
TIME,  OR  FROM  TIME  TO  TIME.    WHERE THE AMOUNT OF WAGES PAID BY AN
EMPLOYER IS NOT SUFFICIENT UNDER THIS LOCAL LAW AND UNDER ANY LOCAL  LAW
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

A. 6920                            10

FILE AN ANNUAL RETURN ON OR BEFORE FEBRUARY TWENTY-EIGHTH OF THE FOLLOW-
ING 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 LOCAL LAW  IMPOSING  A  TAX  ON  PERSONAL
INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORI-
TY GRANTED BY THE GENERAL CITY LAW.
  (C)    DEPOSIT  IN  TRUST  FOR  CITY.--WHENEVER  ANY EMPLOYER FAILS TO
COLLECT, TRUTHFULLY ACCOUNT FOR, PAY OVER THE TAX, OR  MAKE  RETURNS  OF
THE  TAX  AS  REQUIRED  IN  THIS  SECTION, THE ADMINISTRATOR MAY SERVE A
NOTICE REQUIRING SUCH EMPLOYER TO COLLECT THE TAXES WHICH BECOME COLLEC-
TIBLE AFTER SERVICE OF SUCH NOTICE, TO DEPOSIT  SUCH  TAXES  IN  A  BANK
APPROVED  BY  THE ADMINISTRATOR, IN A SEPARATE ACCOUNT, IN TRUST FOR THE
CITY AND PAYABLE TO THE ADMINISTRATOR, AND TO KEEP THE  AMOUNT  OF  SUCH
TAX  IN  SUCH  ACCOUNT  UNTIL  PAYMENT OVER TO THE ADMINISTRATOR.   SUCH
NOTICE SHALL REMAIN IN EFFECT UNTIL A NOTICE OF CANCELLATION  IS  SERVED
BY THE ADMINISTRATOR.
  SEC.  11.    EMPLOYER'S  LIABILITY FOR WITHHELD TAXES.--EVERY EMPLOYER
REQUIRED TO DEDUCT AND WITHHOLD THE TAX UNDER THIS LOCAL LAW  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.  ANY AMOUNT OF TAX ACTUALLY
DEDUCTED AND WITHHELD UNDER THIS LOCAL LAW SHALL BE HELD TO BE A SPECIAL
FUND IN TRUST FOR THE CITY.
  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 LOCAL LAW.
  SEC.  12.    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,  INTER-
EST  OR  ADDITIONS  TO  THE  TAX OTHERWISE APPLICABLE IN RESPECT OF SUCH
FAILURE TO DEDUCT AND WITHHOLD.
  SEC. 13.  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 LOCAL LAW.  THE ADMINISTRATOR MAY
ALSO PROVIDE BY REGULATION THAT ANY RETURN OTHERWISE REQUIRED TO BE MADE
AND FILED UNDER THIS LOCAL LAW BY ANY NONRESIDENT INDIVIDUAL NEED NOT BE
MADE AND FILED IF SUCH NONRESIDENT INDIVIDUAL HAD,  DURING  THE  TAXABLE
YEAR TO WHICH THE RETURN WOULD RELATE, NO NET EARNINGS FROM SELF-EMPLOY-
MENT WITHIN THE CITY.  ANY REGULATION ALLOWING SUCH WAIVER OF RETURN MAY
PROVIDE  FOR  ADDITIONAL LIMITATIONS ON AND CONDITIONS AND PREREQUISITES
TO THE PRIVILEGE OF NOT FILING A RETURN.
  SEC. 14. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS.--THE STATE
TAX COMMISSION MAY REQUIRE:
  (1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
  (A) A COMBINED RETURN WHICH IN ADDITION TO THE RETURN PROVIDED FOR  IN
A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO INCLUDE RETURNS REQUIRED

A. 6920                            11

TO  BE  FILED  UNDER A LOCAL LAW AUTHORIZED BY ARTICLE THIRTY OF THE TAX
LAW AND UNDER ARTICLE TWENTY-TWO OF THE TAX LAW.
  (B)  A  COMBINED EMPLOYER'S RETURN WHICH IN ADDITION TO THE EMPLOYER'S
RETURN PROVIDED FOR IN A LOCAL LAW AUTHORIZED BY THIS ARTICLE  MAY  ALSO
INCLUDE  EMPLOYER'S  RETURNS  REQUIRED  TO  BE  FILED  UNDER A LOCAL LAW
AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW AND UNDER ARTICLE TWENTY-TWO
OF THE TAX LAW.
  (2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
RESPECT TO THE PAYMENT OF ESTIMATED TAX, THE STATE  TAX  COMMISSION  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 LOCAL LAWS IMPOSED UNDER THE AUTHORITY  OF
THIS  ARTICLE,  ARTICLE  THIRTY  OF  THE  TAX  LAW  AND  PURSUANT TO THE
PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
  SEC. 15.  EFFECT OF INVALIDITY IN  PART;  INCONSISTENCIES  WITH  OTHER
LAWS.--(A)  IF  ANY  CLAUSE,  SENTENCE,  PARAGRAPH, SUBSECTION, SECTION,
PROVISION OR OTHER PORTION OF THIS LOCAL LAW 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 LOCAL LAW
OR THE APPLICATION OF SUCH PORTION HELD INVALID, TO ANY OTHER PERSON  OR
CIRCUMSTANCES,  BUT  SHALL  BE  CONFINED IN ITS OPERATION TO THE CLAUSE,
SENTENCE, PARAGRAPH, SUBSECTION, SECTION,  PROVISION  OR  OTHER  PORTION
THEREOF  DIRECTLY  INVOLVED IN SUCH HOLDING OR TO THE PERSON AND CIRCUM-
STANCES THEREIN INVOLVED.
  (B)   IF ANY PROVISION OF THIS LOCAL  LAW  IS  INCONSISTENT  WITH,  IN
CONFLICT WITH, OR CONTRARY TO ANY OTHER PROVISION OF LAW, SUCH PROVISION
OF THIS LOCAL LAW 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 25-N. ADMINISTRATIVE PROVISIONS. (A) GENERAL. ANY LOCAL LAW  ADOPTED
PURSUANT  TO  THIS  ARTICLE  SHALL ALSO CONTAIN PROVISIONS NECESSARY AND
APPROPRIATE FOR THE COLLECTION AND THE ADMINISTRATION OF THE TAX  HEREIN
AUTHORIZED,  EXCEPT  THAT  WITH RESPECT TO ANY TAXABLE YEAR BEGINNING IN
NINETEEN HUNDRED SEVENTY, UNTIL AND INCLUDING THE  THIRTY-FIRST  DAY  OF
DECEMBER,  NINETEEN  HUNDRED SEVENTY-ONE, ANY LOCAL LAW ADOPTED PURSUANT
TO THIS ARTICLE SHALL CONTAIN THE SAME PROVISIONS AS  ARE  CONTAINED  IN
CHAPTER  NINETEEN OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY
OF NEW YORK, BUT "ADMINISTRATOR" SHALL BE READ "STATE  TAX  COMMISSION";
"ADMINISTRATIVE  AGENCIES  OF THE CITY" SHALL BE READ AS "ADMINISTRATIVE
AGENCIES OF THE STATE"; "DEPOSITORIES OR FINANCIAL AGENTS OF  THE  CITY"
SHALL BE READ AS "DEPOSITORIES OR FINANCIAL AGENTS OF THE STATE"; "OFFI-
CERS  OR  EMPLOYEES  OF  THE DEPARTMENT OF FINANCE OF THE CITY" SHALL BE
READ "OFFICERS OR EMPLOYEES OF THE  STATE  DEPARTMENT  OF  TAXATION  AND
FINANCE"; IN SECTIONS 11-1934, 11-1936, 11-1939, AND 11-1942 (EXCEPT FOR
THE  LAST  SENTENCE  THEREOF) OF CHAPTER NINETEEN OF TITLE ELEVEN OF THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK  "CITY"  SHALL  BE  READ  AS
"STATE";  "CORPORATION COUNSEL OR OTHER APPROPRIATE OFFICER OF THE CITY"
OR "CORPORATION COUNSEL OF THE CITY" SHALL BE READ  AS  "STATE  ATTORNEY
GENERAL";  AND  THE  WORDS  "IT"  OR  "ITS"  SHALL  APPLY INSTEAD OF THE
PRONOUNS USED WHERE THE REFERENCE IS TO STATE TAX COMMISSION.  PROVIDED,
HOWEVER,  WITH  RESPECT TO DECLARATIONS OF ESTIMATED TAX AND PAYMENTS OF
SUCH TAX AND THE WITHHOLDING TAX REQUIREMENTS, UNTIL AND  INCLUDING  THE
THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN HUNDRED SEVENTY-ONE, ANY SUCH
TERMS SHALL BE SO READ WITH RESPECT TO ANY TAXABLE YEAR OR OTHER  PERIOD
BEGINNING IN NINETEEN HUNDRED SEVENTY-ONE.

A. 6920                            12

  (B)  METHODS  OF REVIEW.--SUCH LOCAL LAW SHALL ALSO CONTAIN PROVISIONS
SUBSTANTIALLY THE SAME AS THE FOLLOWING:
  (I) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL  BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR ANY
OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE  SEVENTY-EIGHT  OF
THE  CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO THE
SUPREME COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF  SUCH
FINAL  DETERMINATION,  PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL  NOT  BE
INSTITUTED  UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH
SUCH INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL  LAW
OR  REGULATION, SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDERTAK-
ING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN  THIS
STATE  AND  APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES OF THIS
STATE AS TO SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE  OF
THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE
DISMISSED  OR  THE  TAX  CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND
CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT
THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT
TO COVER THE TAXES, INTEREST AND PENALTIES STATED IN SUCH  DETERMINATION
PLUS  THE  COSTS  AND  CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSE-
CUTION OF THE PROCEEDING, IN WHICH EVENT THE  PETITIONER  SHALL  NOT  BE
REQUIRED  TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECE-
DENT TO THE APPLICATION.
  (II) WHERE ANY TAX IMPOSED  HEREUNDER  SHALL  HAVE  BEEN  ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREOF  DULY  MADE  TO  THE PROPER FISCAL OFFICER OR OFFICERS, AND SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH DETERMINATION SHALL BE REVIEWABLE BY  A  PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT  OF  THE  CIVIL PRACTICE LAW AND RULES, PROVIDED, HOWEVER,
THAT SUCH PROCEEDING IS INSTITUTED WITHIN FOUR MONTHS AFTER  THE  GIVING
OF  THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE WAS
NOT PREVIOUSLY MADE, AND THAT AN UNDERTAKING IS FILED  WITH  THE  PROPER
FISCAL  OFFICER  OR  OFFICERS IN SUCH AMOUNT AND WITH SUCH SURETIES AS A
JUSTICE OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT  THAT  IF  SUCH
PROCEEDING  BE  DISMISSED  OR THE TAX CONFIRMED, THE PETITIONER WILL PAY
ALL COSTS AND CHARGES WHICH  MAY  ACCRUE  IN  THE  PROSECUTION  OF  SUCH
PROCEEDING.
  (III)  NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRA-
TION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF THE  RETURN
EXCEPT THAT WHERE NO RETURN HAS BEEN FILED OR, IN THE CASE OF THE FILING
OF  A  WILFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX,
THE TAX MAY BE ASSESSED AT ANY TIME; PROVIDED, HOWEVER, WHERE A TAXPAYER
OMITS FROM HIS OR HER RETURN AN AMOUNT WHICH SHOULD BE PROPERLY INCLUDED
THEREIN WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT  OF  THE
GROSS  INCOME  DERIVED  BY  HIM  OR  HER  FROM ANY TRADE OR BUSINESS, NO
ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF  MORE
THAN  SIX  YEARS  FROM  THE  DATE OF THE FILING OF THE RETURN, EXCEPT AS
OTHERWISE PROVIDED HEREIN.
  (C) BULK SALES.-- SUCH LOCAL LAW MAY CONTAIN A PROVISION SUBSTANTIALLY
THE SAME AS THE FOLLOWING:
  WHENEVER THERE IS MADE A SALE, TRANSFER OR ASSIGNMENT IN BULK  OF  ANY
PART  OR THE WHOLE OF A STOCK OF MERCHANDISE OR OF FIXTURES, OR MERCHAN-
DISE AND OF FIXTURES PERTAINING TO THE CONDUCTING OF THE BUSINESS OF THE
SELLER, TRANSFERRER OR ASSIGNOR, OTHERWISE THAN IN THE  ORDINARY  COURSE
OF TRADE AND IN THE REGULAR PROSECUTION OF SAID BUSINESS, THE PURCHASER,

A. 6920                            13

TRANSFEREE  OR ASSIGNEE SHALL AT LEAST TEN DAYS BEFORE TAKING POSSESSION
OF SUCH MERCHANDISE, FIXTURES, OR MERCHANDISE AND  FIXTURES,  OR  PAYING
THEREFOR,  NOTIFY  THE  ADMINISTRATOR BY REGISTERED MAIL OF THE PROPOSED
SALE  AND OF THE PRICE, TERMS AND CONDITIONS THEREOF, WHETHER OR NOT THE
SELLER, TRANSFERRER OR ASSIGNOR, HAS REPRESENTED  TO,  OR  INFORMED  THE
PURCHASER, TRANSFEREE OR ASSIGNEE, THAT IT OWES ANY TAX PURSUANT TO THIS
LOCAL  LAW,  WHETHER  OR  NOT  THE PURCHASER, TRANSFEREE OR ASSIGNEE HAS
KNOWLEDGE THAT SUCH TAXES ARE OWING, AND WHETHER OR NOT ANY  SUCH  TAXES
ARE IN FACT OWING.
  WHENEVER  THE PURCHASER, TRANSFEREE OR ASSIGNEE SHALL FAIL TO GIVE THE
NOTICE TO THE ADMINISTRATOR REQUIRED  BY  THE  PRECEDING  PARAGRAPH,  OR
WHENEVER  THE  ADMINISTRATOR  SHALL  INFORM THE PURCHASER, TRANSFEREE OR
ASSIGNEE THAT A POSSIBLE CLAIM FOR SUCH TAX OR TAXES EXISTS, ANY SUMS OF
MONEY, PROPERTY OR CHOSES IN ACTION, OR OTHER CONSIDERATION,  WHICH  THE
PURCHASER,  TRANSFEREE  OR  ASSIGNEE IS REQUIRED TO TRANSFER OVER TO THE
SELLER, TRANSFERRER OR ASSIGNOR SHALL BE SUBJECT  TO  A  FIRST  PRIORITY
RIGHT  AND  LIEN FOR ANY SUCH TAXES THERETOFORE OR THEREAFTER DETERMINED
TO BE DUE FROM THE SELLER, TRANSFERRER OR ASSIGNOR TO THE CITY, AND  THE
PURCHASER,  TRANSFEREE OR ASSIGNEE IS FORBIDDEN TO TRANSFER TO THE SELL-
ER, TRANSFERRER OR ASSIGNOR ANY SUCH SUMS OF MONEY, PROPERTY  OR  CHOSES
IN  ACTION TO THE EXTENT OF THE AMOUNT OF THE CITY'S CLAIM.  FOR FAILURE
TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION THE PURCHASER,  TRANS-
FEREE OR ASSIGNEE, IN ADDITION TO BEING SUBJECT TO LIABILITIES AND REME-
DIES IMPOSED UNDER ANY PROVISIONS OF LAW, SHALL BE PERSONALLY LIABLE FOR
THE  PAYMENT  TO  THE  CITY OF ANY SUCH TAXES, THERETOFORE OR THEREAFTER
DETERMINED TO BE DUE TO THE CITY FROM THE SELLER, TRANSFERRER OR  ASSIG-
NOR  AND  SUCH LIABILITY MAY BE ASSESSED AND ENFORCED IN THE SAME MANNER
AS THE LIABILITY FOR TAX IS IMPOSED UNDER THIS LOCAL LAW.
  (D) DELEGATION OF FUNCTIONS.--THE  LOCAL  LAW  MAY  PROVIDE  THAT  THE
ADMINISTRATOR OF THE TAX IMPOSED, AS DEFINED IN THE LOCAL LAW, MAY DELE-
GATE  HIS  OR HER POWERS AND FUNCTIONS UNDER THE LOCAL LAW TO ONE OF HIS
OR HER DEPUTIES OR TO ANY EMPLOYEE OR EMPLOYEES OF HIS OR HER DEPARTMENT
AND AUTHORIZE BANKS OR TRUST COMPANIES WHICH ARE DEPOSITORIES OR  FINAN-
CIAL  AGENTS  OF  THE  CITY  TO  RECEIVE  AND GIVE A RECEIPT FOR ANY TAX
IMPOSED UNDER THE LOCAL LAW.
  (E) THE PROVISIONS CONTAINED IN SUBSECTIONS  (A),  (B),  (C)  AND  (D)
SHALL  NOT BE APPLICABLE WITH RESPECT TO TAXES IMPOSED FOR TAXABLE PERI-
ODS COMMENCING ON OR AFTER JANUARY FIRST, NINETEEN  HUNDRED  SEVENTY-SIX
BUT,  WITH  RESPECT  TO  THE TAX IMPOSED FOR SUCH PERIODS THE PROVISIONS
CONTAINED IN PART SIX OF ARTICLE TWENTY-TWO OF THE TAX LAW AND  SECTIONS
SIX  HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, SIX HUNDRED SIXTY-TWO
AND THIRTEEN HUNDRED ELEVEN OF THE TAX LAW INCLUDING THE  PROVISIONS  OF
JUDICIAL REVIEW BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE  LAW  AND  RULES  SHALL  BE  APPLICABLE WITH THE SAME FORCE AND
EFFECT AS IF THOSE PROVISIONS HAD BEEN  INCORPORATED  IN  FULL  IN  THIS
SECTION EXCEPT WHERE INCONSISTENT WITH THE PROVISIONS OF THIS LOCAL LAW.
  S 25-O. 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 CITY AND SHALL BE CREDITED TO AND DEPOSITED IN THE
GENERAL FUND OF SUCH CITY AND SHALL BE AVAILABLE  FOR  ANY  LAWFUL  CITY
PURPOSE. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, NINETEEN
HUNDRED  SEVENTY-SIX SUCH REVENUES SHALL BE DEPOSITED AND DISPOSED OF IN
THE SAME MANNER AS REVENUES RESULTING FROM THE IMPOSITION OF  THE  TAXES
AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW.
  S 2. Section 1301 of the tax law is amended by adding a new subsection
(c) to read as follows:

A. 6920                            14

  (C)  THE  TAXES  AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED ONLY IF THE
GENERAL CITY LAW AUTHORIZES THE ADOPTION OF A CITY TAX ON  THE  EARNINGS
OF NONRESIDENTS AND THE CITY IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE
ALSO IMPOSES SUCH TAX ON THE EARNINGS OF NONRESIDENTS.
  S  3.    The  real property tax law is amended by adding a new section
556-a to read as follows:
  S 556-A. CREDIT AGAINST CITY EARNINGS TAXES.  1.  ANY  PERSON  WHO  IS
REQUIRED  TO  PAY  A  CITY EARNINGS TAX PURSUANT TO ARTICLE TWO-E OF THE
GENERAL CITY LAW SHALL BE GIVEN A REAL PROPERTY TAX CREDIT AGAINST  REAL
PROPERTY  TAXATION  AND  SPECIAL AD VALOREM LEVIES IN AN AMOUNT EQUAL TO
THE AMOUNT OF SUCH CITY EARNINGS TAX ACTUALLY PAID BY THE PERSON.
  2. SUCH CREDIT MAY BE TRANSFERRED FROM A TENANT TO AN OWNER IN LIEU OF
ALL, OR A PORTION OF, RENTAL PAYMENTS DUE TO THE OWNER.  THE  OWNER  MAY
THEN  USE SUCH CREDIT TO LOWER HIS OR HER REAL PROPERTY TAX LIABILITY ON
THE RENTAL PROPERTY.
  3. THE COMMISSIONER SHALL ESTABLISH THE PROPER  PROCEDURE  FOR  TRANS-
FERRING  ANY  REAL  PROPERTY CREDITS PURSUANT TO THIS SECTION, AND SHALL
CREATE ALL APPROPRIATE PAPERWORK TO BE SIGNED AND/OR FILED BY THE TENANT
AND PROPERTY OWNER.
  S 4. Separability. If any clause, sentence, paragraph or part of  this
act  shall  be adjudged to be unconstitutional or invalid, such judgment
shall not affect, impair, or  invalidate,  the  remainder  thereof,  but
shall  be  confined in its operation to the clause, sentence, paragraph,
section or part thereof directly involved in controversy in  which  such
judgment shall have been rendered.
  S 5. This act shall take effect immediately.