S T A T E   O F   N E W   Y O R K
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                                  5209

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2015
                               ___________

Introduced  by  M. of A. KOLB, OAKS, GOODELL, RAIA, PALMESANO, LUPINACCI
  -- Multi-Sponsored by -- M. of A. DiPIETRO -- 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 eliminating
  the corporate franchise and personal income tax on manufacturers (Part
  C); 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;  to
  repeal  article  21  and subdivision (b) of section 524 of the tax law
  relating to highway use tax; 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 42  to  read
as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07915-02-5

              

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  S  42.  HIRE-NY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE  EQUAL  TO  THE
PRODUCT  OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW EMPLOYEE.
THE CREDIT SHALL NOT BE MORE THAN FIVE  THOUSAND  DOLLARS  FOR  ANY  NEW
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 FIFTEEN
AND TWO THOUSAND SIXTEEN 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) 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 FIFTEEN.
  (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.
  (D) 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.
  (E)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. HIRE-NY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER  WILL  BE
ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO 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 AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO  HUNDRED  TEN  OF THIS ARTICLE.   HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 3.  Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:

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  (CCC) HIRE-NY TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT,  TO
THE  EXTENT ALLOWED UNDER SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (2)  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, THAT NO INTEREST SHALL 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 (xli) to read as
follows:
(XLI) HIRE-NY TAX CREDIT             AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (CCC)               SUBDIVISION FORTY-NINE OF SECTION
                                     TWO HUNDRED TEN-B
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.

                                 PART B

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (ddd) to read as follows:
  (DDD)  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 TERMS:
  (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 UNITED STATES.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL BE TREATED AS AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.

                                 PART C

  Section  1.  Paragraph  (b) of subdivision 1 of section 210 of the tax
law, as amended by section 12 of part A of chapter 59  of  the  laws  of
2014, is amended to read as follows:
  (b) Capital base. (1) The amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
capital, or the portion thereof allocated within the state as hereinaft-
er  provided for taxable years beginning before January first, two thou-
sand sixteen. However, in the case of a cooperative housing  corporation
as  defined  in  the internal revenue code, the applicable rate shall be
.04 percent until taxable years beginning on or after January first, two
thousand twenty. The rate of tax for subsequent tax years  shall  be  as
follows:  .125  percent  for taxable years beginning on or after January
first, two thousand sixteen  and  before  January  first,  two  thousand
seventeen;  .100 percent for taxable years beginning on or after January
first, two thousand seventeen and before  January  first,  two  thousand
eighteen;  .075  percent for taxable years beginning on or after January

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first, two thousand eighteen and  before  January  first,  two  thousand
nineteen;  .050  percent for taxable years beginning on or after January
first, two thousand nineteen and  before  January  first,  two  thousand
twenty;  .025  percent  for  taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand  twen-
ty-one;  and zero percent for years beginning on or after January first,
two thousand twenty-one. The rate  of  tax  for  a  qualified  New  York
manufacturer for tax years [subsequent to taxable years] beginning on or
after January first, two thousand fifteen [and before January first, two
thousand sixteen] shall be [.106] ZERO percent [for taxable years begin-
ning  on or after January first, two thousand sixteen and before January
first, two thousand seventeen, .085 percent for taxable years  beginning
on  or  after  January  first, two thousand seventeen and before January
first, two thousand eighteen; .056 percent for taxable  years  beginning
on  or  after  January  first,  two thousand eighteen and before January
first, two thousand nineteen; .038 percent for taxable  years  beginning
on  or  after  January  first,  two thousand nineteen and before January
first, thousand twenty; .019 percent for taxable years beginning  on  or
after  January  first, two thousand twenty and before January first, two
thousand twenty-one; and zero percent for years beginning  on  or  after
January  first,  two  thousand  twenty-one. 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  five
million dollars].
  S  2. Paragraph (d) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of part A of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (d)  Fixed dollar minimum. (1) The amount prescribed by this paragraph
for New York S corporations will be determined in  accordance  with  the
following table:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   25
 more than $100,000 but not over $250,000             $   50
 more than $250,000 but not over $500,000             $  175
 more than $500,000 but not over $1,000,000           $  300
 more than $1,000,000 but not over $5,000,000         $1,000
 more than $5,000,000 but not over $25,000,000        $3,000
 Over $25,000,000                                     $4,500

Provided  further,  the amount prescribed by this paragraph for a quali-
fied New York manufacturer, as defined in subparagraph (vi) of paragraph
(a) of this subdivision, and a  qualified  emerging  technology  company
under  paragraph  (c)  of  subdivision one of section thirty-one hundred
two-e of the public authorities law regardless of the ten million dollar
limitation expressed in subparagraph one of such paragraph (c)  will  be
determined in accordance with the following tables:
For  tax  years beginning on or after January 1, 2014 and before January
1, 2015:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   23
 more than $100,000 but not over $250,000             $   68
 more than $250,000 but not over $500,000             $  159
 more than $500,000 but not over $1,000,000           $  454
 more than $1,000,000 but not over $5,000,000         $1,362

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 more than $5,000,000 but not over $25,000,000        $3,178
 Over $25,000,000                                     $4,500

For  tax years beginning on or after January 1, 2015 [and before January
1, 2016]:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   [22
 more than $100,000 but not over $250,000             $   66
 more than $250,000 but not over $500,000             $  153
 more than $500,000 but not over $1,000,000           $  439
 more than $1,000,000 but not over $5,000,000         $1,316
 more than $5,000,000 but not over $25,000,000        $3,070
 Over $25,000,000                                     $4,385

For tax years beginning on or after January 1, 2016 and  before  January
1, 2018:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   21
 more than $100,000 but not over $250,000             $   63
 more than $250,000 but not over $500,000             $  148
 more than $500,000 but not over $1,000,000           $  423
 more than $1,000,000 but not over $5,000,000         $1,269
 more than $5,000,000 but not over $25,000,000        $2,961
 Over $25,000,000                                     $4,230

For tax years beginning on or after January 1, 2018:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   19
 more than $100,000 but not over $250,000             $   56
 more than $250,000 but not over $500,000             $  131
 more than $500,000 but not over $1,000,000           $  375
 more than $1,000,000 but not over $5,000,000         $1,125
 more than $5,000,000 but not over $25,000,000        $2,625
 Over $25,000,000                                     $3,750] 0

Otherwise  the amount prescribed by this paragraph will be determined in
accordance with the following table:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   25
 more than $100,000 but not over $250,000             $   75
 more than $250,000 but not over $500,000             $  175
 more than $500,000 but not over $1,000,000           $  500
 more than $1,000,000 but not over $5,000,000         $1,500
 more than $5,000,000 but not over $25,000,000        $3,500
 more than $25,000,000
 but not over $50,000,000                             $5,000
 more than $50,000,000 but not over $100,000,000      $10,000
 more than $100,000,000 but not over $250,000,000     $20,000
 more than $250,000,000 but not over $500,000,000     $50,000
 more than $500,000,000 but not over $1,000,000,000   $100,000
 Over $1,000,000,000                                  $200,000

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For purposes of this paragraph,  New  York  receipts  are  the  receipts
included  in  the numerator of the apportionment factor determined under
section two hundred ten-A for the taxable year.
  (2)  If the taxable year is less than twelve months, the amount of New
York receipts is determined by dividing the amount of the  receipts  for
the  taxable year by the number of months in the taxable year and multi-
plying the result by twelve. In the case of a termination year of a  New
York S corporation, the sum of the tax computed under this paragraph for
the  S  short  year  and for the C short year shall not be less than the
amount computed under this paragraph as if the corporation  were  a  New
York C corporation for the entire taxable year.
  S  3.  Subsection  (i)  of  section  601  of the tax law is relettered
subsection (j) and a new subsection (i) is added to read as follows:
  (I) MANUFACTURERS. NOTWITHSTANDING THIS OR ANY OTHER SECTION  OF  THIS
ARTICLE,  A  PERSON'S  LIABILITY  FOR  TAX  UNDER  THIS SECTION, IF SUCH
PERSON'S PRIMARY ACTIVITY IS IN HIS OR HER ROLE AS A MANUFACTURER, SHALL
BE ZERO FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN. FOR PURPOSES OF THIS SECTION A PERSON SHALL BE  CLASSIFIED
AS A MANUFACTURER IF, HE OR SHE IS PRINCIPALLY ENGAGED IN THE PRODUCTION
OF  GOODS  BY  MANUFACTURING,  PROCESSING, ASSEMBLING, REFINING, MINING,
EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,  FLORICULTURE,  VITICUL-
TURE  OR  COMMERCIAL FISHING. IN ADDITION, FOR PURPOSES OF COMPUTING THE
CAPITAL BASE IN A COMBINED REPORT,  THE  GROUP  SHALL  BE  CONSIDERED  A
MANUFACTURER  FOR  PURPOSES  OF THIS ARTICLE, ONLY IF THE COMBINED GROUP
DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED  IN  THE  ACTIVITIES  SET
FORTH  IN  THIS  SUBSECTION, OR ANY COMBINATION THEREOF. FOR PURPOSES OF
THIS SUBSECTION, A TAXPAYER IS "PRINCIPALLY ENGAGED"  IN  THE  DESCRIBED
ACTIVITY  IF,  DURING  THE  TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE
GROSS RECEIPTS OF THE TAXPAYER ARE DERIVED FROM RECEIPTS FROM ACTIVITIES
COVERED BY THIS SUBSECTION.
  S 4. This act shall take effect immediately.

                                 PART D

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

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

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1986,  subdivision  twenty-sixth as amended by chapter 61 of the laws of
1989 and paragraph a of subdivision twenty-sixth as amended by section 1
of subpart D of part V-1 of chapter 57 of the laws of 2009, are  amended
to read as follows:
  Twentieth.  Have  authority,  of  his  own  motion, to abate any small
unpaid balance of an assessment of tax,  or  any  liability  in  respect
thereof, under articles twelve-A, eighteen, OR twenty [or twenty-one] of
this  chapter,  if  such  commissioner  determines  under  uniform rules
prescribed by him that the administration and collection costs  involved
would  not  warrant  collection of the amount due. He may also abate, of
his own motion, the unpaid portion of the  assessment  of  any  of  such
taxes,  or  any  liability  in  respect  thereof,  which is excessive in
amount, or is assessed after the expiration of the period of  limitation
properly applicable thereto, or is erroneously or illegally assessed. No
claim  for  abatement  under  this subdivision shall be filed for any of
such taxes.
  Twenty-sixth.  a. Set the overpayment and underpayment rates of inter-
est for purposes of articles twelve-A, eighteen, AND twenty  [and  twen-
ty-one]  of this chapter. Such rates shall be the overpayment and under-
payment rates of interest set pursuant to subsection (e) of section  one
thousand ninety-six of this chapter, but the underpayment rate shall not
be less than seven and one-half percent per annum. Any such rates set by
such  commissioner  shall  apply to taxes, or any portion thereof, which
remain or become due or overpaid (other  than  overpayments  under  such
article  twenty  and  not including reimbursements, if any, under any of
such articles) on or after the date on which such rates become effective
and shall apply only with respect to interest computed or computable for
periods or portions of periods occurring in the period during which such
rates are in effect. In computing the amount of any interest required to
be paid under such articles by such commissioner or by the taxpayer,  or
any  other  amount  determined  by reference to such amount of interest,
such interest and such amount shall be compounded daily.
  b. Cross-reference. For  provisions  relating  to  the  power  of  the
commissioner of taxation and finance to abate small amounts of interest,
see subdivision twentieth of this section.
  S  7.  Subdivision  1  of  section 171-a of the tax law, as amended by
chapter 90 of the laws of 2014, 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-B,  [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-three and thirty-three-A of this chapter shall be deposited daily
in  one  account  with  such  responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of  the
comptroller.  Such  an account may be established in one or more of such
depositories. Such deposits shall be kept separate and  apart  from  all
other  money in the possession of the comptroller. The comptroller shall
require adequate security from  all  such  depositories.  Of  the  total

A. 5209                             9

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 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. 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
article,  (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 seven-
ty-one-e of this article, (iii) and except further that, notwithstanding
any law, the comptroller shall credit to the revenue arrearage  account,
pursuant  to  section ninety-one-a of the state finance law, that amount
of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
thereon, which is certified to the comptroller by  the  commissioner  as
the  amount  to  be credited against a past-due legally enforceable 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, pursuant to
section ninety-one-c of the state finance law, any such amount  credita-
ble  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,  twenty-
two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
interest thereon that is certified to the comptroller by the commission-
er as the amount to be credited against city of  New  York  tax  warrant
judgment  debt  pursuant  to  section  one hundred seventy-one-l 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 arti-
cle twenty-two of this chapter and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
one  hundred seventy-one-l of this article and which is certified 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. 5209                            10

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  7-a.  Subdivision  1 of section 171-a of the tax law, as amended by
section 54 of part A of chapter 59 of the laws of 2014,  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-three
and  thirty-three-A  of  this  chapter  shall  be deposited daily in one
account with such responsible banks, banking houses or  trust  companies
as  may  be  designated  by  the comptroller, to the credit of the comp-
troller. 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 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.  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
article, (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

A. 5209                            11

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 seven-
ty-one-e of this article, (iii) and except further that, notwithstanding
any law, the comptroller shall credit to the revenue arrearage  account,
pursuant  to  section ninety-one-a of the state finance law, that amount
of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
thereon, which is certified to the comptroller by  the  commissioner  as
the  amount  to  be credited against a past-due legally enforceable 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, pursuant to
section ninety-one-c of the state finance law, any such amount  credita-
ble  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,  twenty-
two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
interest thereon that is certified to the comptroller by the commission-
er as the amount to be credited against city of  New  York  tax  warrant
judgment  debt  pursuant  to  section  one hundred seventy-one-l 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 arti-
cle twenty-two of this chapter and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
one  hundred seventy-one-l of this article and which is certified 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

A. 5209                            12

commissioner promulgated under this article [or such article twenty-one]
shall constitute sufficient cause for the denial, suspension or  revoca-
tion  of a license. In addition, if the commissioner enters into a coop-
erative  agreement  with  other  jurisdictions  pursuant to section five
hundred twenty-eight of this  article,  the  commissioner  may  deny  an
application  for license where a license previously issued to the appli-
cant is under suspension or revocation by any member jurisdiction and  a
license  may  be  revoked  or  suspended for failure to comply with such
agreement. A denial, revocation or suspension  of  a  license  shall  be
final  unless  the applicant or licensee shall, within thirty days after
the giving of notice of such denial, revocation or suspension,  petition
the  division  of  tax  appeals for a hearing in accordance with article
forty of this chapter. If the commissioner  enters  into  a  cooperative
agreement  pursuant to such section five hundred twenty-eight, notice of
a hearing shall be given and a hearing held within any time restrictions
prescribed in such agreement.
  (d) Trip permits. In lieu of the license and  decal  provided  for  in
subdivision  (a)  of  this  section,  any carrier, except as hereinafter
limited, may apply to the commissioner for a trip permit for any  quali-
fied  motor  vehicle to be operated by him OR HER on the public highways
of this state. Application for the trip permit shall be made on  a  form
prescribed by the commissioner and shall contain such information as the
commissioner  shall  require.  The application shall be accompanied by a
fee of twenty-five dollars for each qualified motor vehicle.  Each  trip
permit shall be valid for a period of seventy-two hours from the time of
its  issuance. The issuance of a trip permit for a qualified motor vehi-
cle shall exempt the carrier from the requirement of filing returns  and
payment  of  the taxes imposed by this article and section three hundred
one-h of this chapter on the operation of such qualified  motor  vehicle
for  the effective period of the permit but no refund application may be
filed on account of trip permit applications. [Provided,  however,  that
in order for any person liable for the tax to claim such exemption, such
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

A. 5209                            13

against  whom  it is assessed shall, within thirty days after the giving
of notice of such determination, petition the division  of  tax  appeals
for  a  hearing,  or  unless  the commissioner on the commissioner's own
motion  shall  redetermine the same; (2) the term "vehicular unit" shall
be read as "qualified motor vehicle"; (3)  if  the  commissioner  enters
into  a  cooperative  agreement  under  this  section,  the reference in
section five hundred fourteen-a of this chapter  to  the  United  States
postmark  shall  include a postmark made by the Canadian postal service;
and (4) if the commissioner enters into a  cooperative  agreement  under
this  section, for purposes of applying subdivision four of section five
hundred fourteen of this chapter, the banks,  banking  houses  or  trust
companies  which  may  be designated by the commissioner may include any
such banks, banking houses or  trust  companies  designated  or  seeking
designation  by  other member jurisdictions. For purposes of determining
the amount of tax due in accordance with section  five  hundred  ten  of
this  chapter  as  incorporated  by  this  subdivision, any return filed
before the last day prescribed for its filing  shall  be  deemed  to  be
filed  on  such  last day. The commissioner is authorized to provide for
the joint administration, in whole or in part, of  the  tax  imposed  by
article twenty-one of this chapter and the tax imposed by this article.
  (b)]   Cooperative   agreements.   Notwithstanding   any  inconsistent
provision of law, the commissioner is authorized to enter into a cooper-
ative agreement with other states, the District of Columbia or provinces
or territories of Canada for the administration of the  tax  imposed  by
this article and similar taxes imposed by other member jurisdictions and
for  the  reporting  and  payment  of  tax  to a single base state and a
proportional sharing of revenue of taxes relating to fuel use among  the
jurisdictions where a qualified motor vehicle is operated. The agreement
may  provide  for  determining  the  base  state  for carriers, carriers
records requirements, audit procedures, exchange of information, persons
eligible for tax licensing, defining qualified motor vehicles, determin-
ing if bonding is required and requiring bonds to secure the tax imposed
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

A. 5209                            14

banks,  banking houses, trust companies or similar institutions as agent
of the commissioner and such other member jurisdictions. Pursuant  to  a
written  agreement made with one or more of the appropriate departments,
agencies,  officers  or  instrumentalities  of  other jurisdictions, the
commissioner may let contracts for provision of  such  services  to  the
department  and  to one or more of such entities of other jurisdictions;
provided, that provisions shall be made in all such agreements with  the
participating governmental entities and in all such contracts let by the
commissioner  for  the  assumption  by each of the participating govern-
mental entities of sole responsibility for its  proportionate  share  of
the  costs  under  the  terms  of  such  contract.  The commissioner may
contract for such services jointly with and pursuant to a  contract  let
by  the  appropriate  department,  agency, officer or instrumentality of
another jurisdiction; provided that (1) the commissioner  shall  approve
the  proposed  terms  and  conditions  of  all  such  joint governmental
contracts, (2) the letting of such joint governmental contract shall  be
based  on  invitation  of  competitive  bids  or  proposals, and (3) the
participation by the department in any  such  joint  contract  shall  be
preceded  by  an  evaluation  and finding in writing by the commissioner
that a reasonable potential exists for the saving of costs by the state,
by means of such joint governmental contract.
  [(c)] (B) Rate changes. In the event the rate  of  tax  imposed  under
this article or under section three hundred one-h of this chapter or the
rate  of  surcharge imposed on such tax changes and such change does not
coincide with the beginning of a reporting period, the rates of tax  and
surcharge  for  the reporting period which includes such change shall be
equal to the sum of the respective rates otherwise  applicable  in  each
month  of  the  reporting  period divided by the number of months in the
reporting period.
  [(d)] (C) Construction. In the event the commissioner, pursuant to the
authority of this  article,  enters  into  a  cooperative  agreement  as
provided in this section, the commissioner shall carry out any provision
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-

A. 5209                            15

ing the license and decal required pursuant to such article or to  carry
or  cause  or  permit  to  be carried upon any qualified motor vehicle a
license or decal which has been suspended or revoked or which was issued
for  a  qualified motor vehicle other than the one on which carried. The
operation of any qualified motor vehicle on any public highway  of  this
state  without carrying thereon the license or decal required under such
article shall be presumptive evidence that a license or  decal  has  not
been obtained for such qualified motor vehicle;
  (B) [Operate, or cause or permit to be operated, on any public highway
any  motor  vehicle  subject  to the provisions of article twenty-one of
this chapter having an actual gross or unloaded weight in excess of  the
gross  or  unloaded  weight set forth on the certificate of registration
issued for such motor vehicle;
  (C)] Fail to deliver or surrender, pursuant to the provisions of arti-
cle [twenty-one or] twenty-one-A of this chapter or any  rule  or  regu-
lation promulgated by the commissioner, a certificate of registration or
license  or  decal  to such commissioner, or any person directed by such
commissioner to take possession thereof;
  [(D)] (C) Fail to keep records of  operations  of  motor  vehicles  or
qualified motor vehicles as the commissioner shall prescribe;
  [(E)] (D) Violate any other provision of article [twenty-one or] twen-
ty-one-A  of  this  chapter or any rule or regulation promulgated there-
under.
  (2) Any person who violates any provision of this subdivision, upon  a
first conviction shall be subject to a fine of not less than one hundred
dollars  or  more  than  two hundred fifty dollars; and upon a second or
subsequent conviction to a fine of  not  less  than  two  hundred  fifty
dollars  or  more  than  five hundred dollars or by imprisonment for not
more than ten days. Except as otherwise provided by law such a violation
shall not be a crime and the  penalty  or  punishment  imposed  therefor
shall  not  be  deemed  for  any  purpose a penal or criminal penalty or
punishment and shall not impose any disability upon or affect or  impair
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-

A. 5209                            16

in  described  upon  a public highway and shall be admissible before any
court in any violation proceeding or criminal proceeding.
  S  11.  Paragraph (c) of subdivision 4-a of section 510 of the vehicle
and traffic law, as added by section 10 of part J of chapter 62  of  the
laws of 2003, is amended to read as follows:
  (c) Upon receipt of notification from a traffic and parking violations
agency  of  the  failure  of a person to appear within sixty days of the
return date or new subsequent adjourned date, pursuant to an  appearance
ticket charging said person with a violation of:
  (i)  any  of  the  provisions  of this chapter except one for parking,
stopping or standing and except those violations described in paragraphs
(a), (b), (d), (e) and (f) of subdivision two of section  three  hundred
seventy-one of the general municipal law;
  (ii)  [section five hundred two or subdivision (a) of section eighteen
hundred fifteen of the tax law;
  (iii)] section fourteen-f (except paragraph (b) of subdivision four of
section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
transportation law; or
  [(iv)]  (III)  any  lawful  ordinance or regulation made by a local or
public authority relating to traffic (except one for  parking,  stopping
or  standing)  or the failure to pay a fine imposed for such a violation
by a traffic and parking violations agency, the commissioner or  his  or
her  agent may suspend the driver's license or privileges of such person
pending receipt of notice from the agency that such person has  appeared
in  response  to  such  appearance  ticket  or  has paid such fine. Such
suspension shall take effect no less than thirty days from the day  upon
which  notice  thereof  is  sent by the commissioner to the person whose
driver's license or privileges  are  to  be  suspended.  Any  suspension
issued  pursuant to this paragraph shall be subject to the provisions of
paragraph (j-1) of subdivision two of section five hundred three of this
[chapter] TITLE.
  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

A. 5209                            17

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

A. 5209                            18

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 89 of part A
of chapter 59 of the laws of 2014, is amended to read as follows:
  S 1825. Violation of secrecy provisions of the  tax  law.--Any  person
who  violates  the  provisions of subdivision (b) of section twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two hundred eleven, subdivision (a) of section three  hundred  fourteen,
subdivision  one  or  two  of section four hundred thirty-seven, section
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, 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 administrative 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 8 of part C of chapter 57 of the laws
of 2014, 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, section three hundred twenty-six, 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  thou-

A. 5209                            19

sand  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, and  sections  ninety-four,  one
hundred  thirty-five,  one hundred forty-four and one hundred forty-five
of the transportation 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 trans-
ferred 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 9 of part C of chapter 57 of the laws
of 2014, 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,  section  three  hundred twenty-six, 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 better-
ments performed pursuant  to  subdivision  twenty-seven  or  subdivision
thirty-five of section ten of the highway law, and sections ninety-four,
one  hundred  thirty-five, one hundred forty-four and one hundred forty-
five of the transportation  law,  (iii)  any  moneys  collected  by  the
department  of  transportation  for services provided pursuant to agree-
ments 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].

A. 5209                            20

  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;
provided further, that the amendments to subdivision 1 of section  171-a
of  the  tax  law, made by section seven of this act shall be subject to
the expiration and reversion of such subdivision, when  upon  such  date
the provisions of section seven-a 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.