Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Apr 13, 2016 |
signed chap.60 |
Apr 01, 2016 |
delivered to governor |
Mar 31, 2016 |
returned to senate passed assembly message of necessity - 3 day message motion to postpone lost ordered to third reading rules cal.25 substituted for a9009c |
Mar 31, 2016 |
substituted by s6409c rules report cal.25 reported reported referred to rules print number 9009c |
Mar 31, 2016 |
amend (t) and recommit to ways and means |
Mar 11, 2016 |
print number 9009b |
Mar 11, 2016 |
amend (t) and recommit to ways and means |
Feb 16, 2016 |
print number 9009a |
Feb 16, 2016 |
amend (t) and recommit to ways and means |
Jan 14, 2016 |
referred to ways and means |
Assembly Bill A9009C
Signed By Governor2015-2016 Legislative Session
Enacts into law major components of legislation which are necessary to implement the state fiscal plan of the 2016-2017 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status Via S6409 - Signed by Governor
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
-
-
-
-
Floor Vote: Mar 31, 2016
aye (62)- Addabbo Jr.
- Akshar
- Amedore
- Avella
- Bonacic
- Boyle
- Breslin
- Carlucci
- Comrie
- Croci
- DeFrancisco
- Diaz
- Dilan
- Espaillat
- Farley
- Felder
- Flanagan
- Funke
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Hassell-Thompson
- Hoylman-Sigal
- Kennedy
- Klein
- Krueger
- LaValle
- Lanza
- Larkin
- Latimer
- Little
- Marcellino
- Marchione
- Martins
- Montgomery
- Murphy
- Nozzolio
- O'Mara
- Ortt
- Panepinto
- Parker
- Peralta
- Perkins
- Persaud
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Sanders Jr.
- Savino
- Serino
- Serrano
- Seward
- Squadron
- Stavisky
- Stewart-Cousins
- Valesky
- Venditto
- Young
-
Mar 31, 2016 - Finance Committee Vote
S640931Aye0Nay6Aye with Reservations0Absent0Excused0Abstained -
-
Bill Amendments
2015-A9009 - Details
- See Senate Version of this Bill:
- S6409
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2015-A9009 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year; amends the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit (Part A); intentionally omitted (Part B); intentionally omitted (Part C)
2015-A9009 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 6409 A. 9009 S E N A T E - A S S E M B L Y January 14, 2016 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit, and to repeal subdivision 5 of section 520 of the real property tax law relating thereto (Part A); to amend the real property tax law, in relation to the maximum amount of tax savings allowable under the STAR program (Part B); to amend the real property tax law in relation to making the income verification program mandatory (Part C); to amend the real property tax law, in relation to allowing applications for exemptions to be filed after the taxable status date in certain cases (Part D); to amend the tax law and the administrative code of the city of New York, in relation to establish- ing a new school tax reduction credit for residents of a city with a population over one million (Part E); to amend the real property tax law, in relation to authorizing the commissioner of taxation and finance to make direct payments of STAR tax savings to property owners in certain cases (Part F); to amend the tax law, in relation to making permanent, provisions relating to mandatory electronic filing of tax documents, improving sales tax compliance and updating tax preparer penalties; to amend chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness there- of; and to repeal certain provisions of the tax law and the adminis- trative code of the city of New York relating thereto (Part G); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part H); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part I); to amend the tax law, in relation to extending the empire state commercial production tax credit (Part J); to amend chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-01-6 S. 6409 2 A. 9009 provide transportation to people with disabilities, in relation to extending the expiration of such provision (Part K); to amend part I of chapter 58 of the laws of 2006, amending the tax law relating to providing an enhanced earned income tax credit, in relation to making the enhanced earned income tax credit permanent (Part L); to amend part N of chapter 61 of the laws of 2005 amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to permanently extending the disclosure and penalty provisions for transactions that present the potential for tax avoidance (Part M); to amend the tax law, in relation to extending the clean heating fuel credit for three years and updating the credit to reflect new minimum biodiesel fuel thresh- olds (Part N); to amend the economic development law and the tax law, in relation to extending the excelsior jobs program for five years (Part O); to amend the tax law and the administrative code of the City of New York in relation to making corrections to the corporate tax reform provisions (Part P); to amend the tax law and the administra- tive code of the city of New York, in relation to the time for filing reports (Part Q); to amend the tax law, in relation to the business income base rate and expanding the small business subtraction modifi- cation (Part R); to amend the education law and the tax law, in relation to enacting the "parental choice in education act" (Part S); to amend the tax law, in relation to establishing a tax credit for New York state thruway tolls (Part T); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part U); to amend the tax law, in relation to exempting from alcoholic beverage tax certain alcoholic beverages furnished at no charge by certain licensees to customers or prospec- tive customers at a tasting held in accordance with the alcoholic beverage control law, and to expand the beer production credit to include wine, liquor and cider (Part V); to amend the tax law, in relation to authorizing jeopardy assessments on cigarette and tobacco product taxes assessed under article 20 thereof (Part W); to amend the tax law and the administrative code of the city of New York, in relation to allowing room remarketers to purchase occupancies from hotel operators exempt from sales tax under certain circumstances (Part X); to amend the tax law, in relation to charitable contrib- utions and charitable activities being considered in determining domi- cile for estate tax purposes (Part Y); to amend the state finance law, in relation to creating the aviation purpose account and ensuring that the funds deposited in the aviation purpose account are used for airport improvement projects; to amend the tax law, in relation to provide for the distribution of revenues under section 301-e of such law; to exempt sales of fuel sold for use in commercial aircraft and general aviation aircraft from the prepayment of sales tax imposed pursuant to the authority of section 1102(a) (1) (ii) of such law; and to exclude sales of fuel sold for use in commercial aircraft and general aviation aircraft from the operation of sales and use taxes imposed pursuant to the authority of section 1210(a) of such law (Part Z); to amend the racing, pari-mutuel wagering and breeding law, in relation to equine lab testing provider restrictions removal (Part AA); to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to reducing purse amounts paid from the VLT program and to increasing racing regulatory fee (Part BB); to amend S. 6409 3 A. 9009 the racing, pari-mutuel wagering and breeding law, in relation to the timing of harness track reimbursements and other technical amendments (Part CC); to amend the tax law, in relation to the payment of vendors' fees (Part DD); to amend the tax law, in relation to vendor fees at vendor tracks (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provision thereof; and to amend the racing, pari-mutuel and breeding law, in relation to extending certain provisions thereof (Part FF); to amend the tax law, in relation to capital awards to vendor tracks (Part GG); and to amend the state finance law, in relation to allocations from the commercial gaming revenue fund; and to amend the tax law, in relation to commissions payable to certain vendor racetracks (Part HH) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year. Each component is wholly contained within a Part identified as Parts A through HH. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Paragraph (a) of subdivision 6 of section 425 of the real property tax law, as amended by chapter 6 of the laws of 2010, and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (a) Generally. All owners of the property who primarily reside thereon AND WHO ARE NOT SUBJECT TO THE PROVISIONS OF SUBDIVISION SIXTEEN OF THIS SECTION must jointly file an application for exemption with the assessor on or before the appropriate taxable status date. Such application may be filed by mail if it is enclosed in a postpaid envelope properly addressed to the appropriate assessor, deposited in a post office or official depository under the exclusive care of the United States postal service, and postmarked by the United States postal service on or before the applicable taxable status date. Each such application shall be made on a form prescribed by the commissioner, which shall require the appli- cant or applicants to agree to notify the assessor if their primary residence changes while their property is receiving the exemption. The assessor may request that proof of residency be submitted with the S. 6409 4 A. 9009 application. If the applicant requests a receipt from the assessor as proof of submission of the application, the assessor shall provide such receipt. If such request is made by other than personal request, the applicant shall provide the assessor with a self-addressed postpaid envelope in which to mail the receipt. S 2. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: 16. TRANSITION TO PERSONAL INCOME TAX CREDIT. (A) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, NO APPLICATION FOR AN EXEMPTION UNDER THIS SECTION MAY BE FILED OR APPROVED UNLESS AT LEAST ONE OF THE APPLICANTS HELD TITLE TO THE PROPERTY ON THE TAXABLE STATUS DATE OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND THE PROPERTY WAS GRANTED AN EXEMPTION PURSUANT TO THIS SECTION ON THAT ASSESSMENT ROLL. IN THE EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLICANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT, IN LIEU OF A STAR EXEMPTION, THE APPLICANT MAY CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE APPLI- CANT MAY CONTACT THE DEPARTMENT OF TAXATION AND FINANCE FOR FURTHER INFORMATION. THE COMMISSIONER SHALL PROVIDE A FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICATION. NO STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. (B) IF THE OWNERS OF A PARCEL THAT IS RECEIVING THE STAR EXEMPTION AUTHORIZED BY THIS SECTION WANT TO CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN LIEU OF SUCH EXEMPTION, THEY ALL MUST RENOUNCE THAT EXEMPTION IN THE MANNER PROVIDED BY SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAPTER, AND MUST PAY ANY REQUIRED TAXES, INTEREST AND PENALTIES, ON OR BEFORE DECEM- BER THIRTY-FIRST OF THE TAXABLE YEAR FOR WHICH THEY WANT TO CLAIM THE CREDIT. ANY SUCH RENUNCIATION SHALL BE IRREVOCABLE. (C) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL APPLICATIONS FOR STAR EXEMPTIONS BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, INCLUDING THOSE SUBMITTED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION. IF ANY APPLICATION WAS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION THAT IS NOT APPROVABLE HEREUNDER, SUCH APPROVAL SHALL BE DEEMED VOID, AND THE ASSESSOR SHALL PROVIDE THE APPLICANT WITH THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION. S 3. Subdivision 2 of section 496 of the real property tax law, as added by section 3 of part N of chapter 58 of the laws of 2011, is amended to read as follows: 2. An application to renounce an exemption shall be made on a form prescribed by the commissioner and shall be filed with the county direc- tor of real property tax services no later than ten years after the levy of taxes upon the assessment roll on which the renounced exemption appears. The county director, after consulting with the assessor as appropriate, shall compute the total amount owed on account of the renounced exemption as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll. Interest shall then be added to each such product at the rate prescribed by section nine S. 6409 5 A. 9009 hundred twenty-four-a of this chapter or such other law as may be appli- cable for each month or portion thereon since the levy of taxes upon such assessment roll. (b) The sum of the calculations made pursuant to paragraph (a) of this subdivision with respect to all of the assessment rolls in question shall be determined. (c) A processing fee of five hundred dollars shall be added to the sum determined pursuant to paragraph (b) of this subdivision, UNLESS THE PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION ARE APPLICABLE. (D) IF THE APPLICANT IS RENOUNCING A STAR EXEMPTION IN ORDER TO QUALI- FY FOR THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, AND NO OTHER EXEMPTIONS ARE BEING RENOUNCED ON THE SAME APPLICATION, NO PROCESSING FEE SHALL BE APPLICABLE. S 4. Subdivision 3 of section 520 of the real property tax law, as added by chapter 635 of the laws of 1978, is amended to read as follows: 3. For purposes of any fiscal year or years during which title to such property is transferred, such property shall be deemed to have been omitted and the assessed value thereof shall be entered on the assess- ment roll to be used for the next tax levy by or for each municipal corporation in which such property is located in the same manner as provided by title three of article five of this chapter with respect to a parcel omitted from the assessment roll of the previous year. A pro rata tax shall be extended against the property for the unexpired portion of each fiscal year. Such real property shall be taxed at the tax rate or tax rates for the fiscal year during which the transfer occurred. The amount of tax or taxes levied pursuant to this subdivi- sion shall be deducted from the aggregate amount of taxes to be levied for the fiscal year immediately succeeding the fiscal year during which the transfer occurred; PROVIDED, HOWEVER, THAT WHERE THE PROPERTY IS RECEIVING A SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, THE PORTION OF THE TAX OR TAXES LEVIED THAT EQUALS THE RECOVERED STAR TAX SAVINGS SHALL BE APPLIED TO REDUCE THE AMOUNT OF AID PAYABLE TO THE SCHOOL DISTRICT UNDER SUBDI- VISION THREE OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. S 5. Subdivision 5 of section 520 of the real property tax law is REPEALED. S 6. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX RELIEF (STAR) CREDIT. (1) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION: (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE, WHO MAINTAINED HIS OR HER PRIMARY RESIDENCE IN THIS STATE ON DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, WHO WAS AN OWNER OF THAT PROPERTY ON THAT DATE, WHO CANNOT RECEIVE THE STAR EXEMPTION ON THAT PROPERTY EITHER BECAUSE (I) HE OR SHE IS PRECLUDED FROM FILING AN APPLICATION FOR THE STAR EXEMPTION ON THAT PROPERTY PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, OR BECAUSE (II) HE OR SHE HAS IRREVOCABLY RENOUNCED HIS OR HER CLAIM TO SUCH EXEMPTION IN CONJUNCTION WITH ALL OTHER OWNERS PURSUANT TO PARAGRAPH (B) OF SUCH SUBDIVISION, AND WHO IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE. (B) "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON AS OF DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMA- RILY THEREON AS OF SUCH DATE; PROVIDED THAT THE INCOME TO BE SO COMBINED S. 6409 6 A. 9009 SHALL BE THE "ADJUSTED GROSS INCOME" FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME TAX PURPOSES, OR THAT WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED, REDUCED BY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY. (C) "ASSOCIATED FISCAL YEAR" MEANS THE SCHOOL DISTRICT FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE CITY FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR. (D) "OWNER" MEANS: (I) A PERSON WHO OWNS A PARCEL IN FEE SIMPLE ABSOLUTE OR AS A TENANT IN COMMON, A JOINT TENANT OR A TENANT BY THE ENTIRETY, (II) AN OWNER OF A PRESENT INTEREST IN A PARCEL UNDER A LIFE ESTATE, (III) A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF SALE, (IV) A BENEFICIAL OWNER UNDER A TRUST, (V) A TENANT-STOCKHOLDER OF A COOPERATIVE APARTMENT CORPORATION WHO RESIDES IN A PORTION OF REAL PROPERTY OWNED BY SUCH COOPERATIVE APART- MENT CORPORATION, TO THE EXTENT REPRESENTED BY HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION AS DETERMINED BY ITS OR THEIR PROPORTIONAL RELATIONSHIP TO THE TOTAL OUTSTANDING STOCK OF THE CORPO- RATION, INCLUDING THAT OWNED BY THE CORPORATION, (VI) A RESIDENT OF A FARM DWELLING THAT IS OWNED EITHER BY A CORPO- RATION OF WHICH THE RESIDENT IS A SHAREHOLDER, A PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, OR BY A LIMITED LIABILITY COMPANY OF WHICH THE RESIDENT IS AN OWNER, OR (VII) A RESIDENT OF A DWELLING, OTHER THAN A FARM DWELLING, THAT IS OWNED BY A LIMITED PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, PROVIDED THAT THE LIMITED PARTNERSHIP THAT HOLDS TITLE TO THE PROPERTY DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, THAT THE LIMITED PARTNERSHIP WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES, AND THAT THE PARTNER OR PARTNERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF THE REAL PROPERTY TAXES AND OTHER COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP. (E) "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR; OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. IN NO CASE SHALL THE TERM "QUALIFYING TAXES" BE CONSTRUED TO INCLUDE PENALTIES OR INTEREST. (F) "STAR EXEMPTION" MEANS THE SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (G) "STAR TAX SAVINGS" MEANS THE TAX SAVING ATTRIBUTABLE TO THE STAR EXEMPTION WITHIN A PORTION OF A SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THE REAL PROPERTY TAX LAW. (H) "STAR TAX SAVINGS FIGURE" MEANS THE AVERAGE OF THE STAR TAX SAVINGS IN THE VARIOUS PORTIONS OF A SCHOOL DISTRICT IN THE ASSOCIATED FISCAL YEAR, AS DETERMINED BY THE COMMISSIONER. TWO STAR TAX SAVINGS FIGURES SHALL BE DETERMINED FOR EACH SCHOOL DISTRICT, ONE RELATING TO THE BASIC STAR EXEMPTION, AND THE OTHER RELATING TO THE ENHANCED STAR EXEMPTION. S. 6409 7 A. 9009 (2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED- IT AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER- EST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST. (3) DETERMINATION OF BASIC STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, A BASIC STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER IF THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO FIVE HUNDRED THOUSAND DOLLARS. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH BASIC STAR CREDIT SHALL BE THE LESSER OF: (I) THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR (II) THE TAXPAYER'S QUALIFYING TAXES. (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (4) DETERMINATION OF ENHANCED STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, AN ENHANCED STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER WHERE BOTH OF THE FOLLOWING CONDITIONS ARE SATISFIED: (I) ALL OF THE OWNERS OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE ARE AT LEAST SIXTY-FIVE YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE OR BY SIBLINGS, AT LEAST ONE OF THE OWNERS IS AT LEAST SIXTY-FIVE YEARS OF AGE AS OF THAT DATE. THE TERMS "SIBLINGS" AS USED HEREIN SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, THE CREDIT, ONCE ALLOWED, SHALL NOT BE DISALLOWED BECAUSE OF THE DEATH OF THE OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR. (II) THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO THE INCOME STANDARD FOR THE TAXABLE YEAR ESTABLISHED BY THE COMMISSIONER FOR THE CORRESPONDING "INCOME TAX YEAR" PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH (I) OF PARA- GRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW FOR PURPOSES OF THE ENHANCED STAR EXEMPTION. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH CREDIT SHALL BE THE LESSER OF: (I) THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR (II) THE TAXPAYER'S QUALIFYING TAXES. S. 6409 8 A. 9009 (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (5) DISQUALIFICATION. A TAXPAYER SHALL NOT QUALIFY FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IF THE PARCEL THAT SERVES AS THE TAXPAY- ER'S PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION ON THE ASSESSMENT ROLL UPON WHICH SCHOOL DISTRICT TAXES FOR THE ASSOCIATED FISCAL YEAR WHERE LEVIED. PROVIDED, HOWEVER, THAT THE TAXPAYER MAY REMOVE THIS DISQUALIFICATION BY RENOUNCING THE EXEMPTION AND MAKING ANY REQUIRED PAYMENTS BY DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR, AS PROVIDED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (6) SPECIAL CASES. (A) IN THE CASE OF PROPERTY CONSISTING OF A COOPER- ATIVE APARTMENT CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO SIXTY PERCENT OF THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR SIXTY PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, WHICHEVER IS APPLICABLE. PROVIDED, HOWEVER, THAT IN THE CASE OF A COOPERATIVE APARTMENT CORPO- RATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO TWENTY PERCENT OF SUCH FIGURE. (B) IN THE CASE OF PROPERTY CONSISTING OF A MOBILE HOME THAT IS DESCRIBED IN PARAGRAPH (1) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO SUCH MOBILE HOME SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR TWENTY-FIVE PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, WHICHEVER IS APPLICABLE. (C) IN THE CASE OF A PRIMARY RESIDENCE THAT IS LOCATED IN TWO OR MORE SCHOOL DISTRICTS, THE APPLICABLE BASIC OR ENHANCED STAR TAX SAVINGS FIGURE SHALL BE DETERMINED AS FOLLOWS: (I) DETERMINE THE SUM OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR BY EACH OF THE SCHOOL DISTRICTS IN WHICH THE RESIDENCE IS LOCATED; (II) FOR EACH SUCH SCHOOL DISTRICT, DIVIDE THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE BY THAT SCHOOL DISTRICT FOR THE ASSOCIATED FISCAL YEAR BY THE SUM DETERMINED IN CLAUSE (I) OF THIS SUBPARAGRAPH. EXPRESS THE RESULT AS A PERCENTAGE WITH TWO DECIMAL PLACES; (III) FOR EACH SUCH SCHOOL DISTRICT, MULTIPLY THE PERCENTAGE DETER- MINED IN CLAUSE (II) OF THIS SUBPARAGRAPH BY THE BASIC OR ENHANCED STAR TAX SAVINGS FIGURE, WHICHEVER IS APPLICABLE; AND (IV) ADD THE PRODUCTS DETERMINED IN CLAUSE (III) OF THIS SUBPARAGRAPH. (7) DISCLOSURE OF INCOMES. WHERE THE COMMISSIONER HAS DENIED A TAXPAY- ER'S CLAIM FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IN WHOLE OR IN PART ON THE GROUNDS THAT THE AFFILIATED INCOME OF THE PARCEL IN QUESTION S. 6409 9 A. 9009 EXCEEDS THE APPLICABLE LIMIT, THE COMMISSIONER SHALL HAVE THE AUTHORITY TO REVEAL TO THAT TAXPAYER THE NAMES AND INCOMES OF THE OTHER TAXPAYERS WHOSE INCOMES WERE INCLUDED IN THE COMPUTATION OF SUCH AFFILIATED INCOME. (8) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION: AFFILIATED INCOME, THE TOTAL SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY- TWO OF THE EDUCATION LAW, THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR, THE QUALI- FYING TAXES PAID BY THE TAXPAYER, THE NAMES AND TAXPAYER IDENTIFICATION NUMBERS OF ALL OWNERS OF THE PROPERTY AND SPOUSES WHO PRIMARILY RESIDE ON THE PROPERTY, THE PARCEL IDENTIFICATION NUMBER AND ALL OTHER INFORMA- TION THAT MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT. (9) RETURNS. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE YEARS FROM THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSUANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN SUCH FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHO SHALL MAKE AVAILABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS. (10) ADMINISTRATION. THE PROVISIONS OF THIS ARTICLE, INCLUDING THE PROVISIONS OF SECTIONS SIX HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, AND SIX HUNDRED FIFTY-NINE OF THIS ARTICLE AND THE PROVISIONS OF PART SIX OF THIS ARTICLE RELATING TO PROCEDURE AND ADMINISTRATION, INCLUDING THE JUDICIAL REVIEW OF THE DECISIONS OF THE COMMISSIONER, EXCEPT SO MUCH OF SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE THAT PERMITS A CLAIM FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR IN PARA- GRAPH NINE OF THIS SUBSECTION AND EXCEPT SECTIONS SIX HUNDRED FIFTY-SEV- EN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF THIS ARTICLE, SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN INCORPORATED IN FULL INTO THIS SUBSECTION AND HAD EXPRESSLY REFERRED TO THE CREDIT ALLOWED OR RETURNS FILED UNDER THIS SUBSECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO THIS SUBSECTION. AS USED IN SUCH SECTIONS AND SUCH PART, THE TERM "TAXPAYER" SHALL INCLUDE A QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE, WHERE A QUALIFIED TAXPAYER HAS PROTESTED THE DENIAL OF A CLAIM FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO FILE A PETITION FOR REDETERMINATION OF A DEFICIENCY OR FOR REFUND HAS NOT EXPIRED, HE OR SHE SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET BY THE COMMISSIONER, RECEIVE SUCH INFORMATION (A) THAT IS CONTAINED IN ANY RETURN FILED UNDER THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, AND (B) THAT THE COMMISSIONER FINDS IS RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH CLAIM WAS PROPERLY DENIED. (11) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDER- AL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS SUBSECTION. S. 6409 10 A. 9009 S 7. The opening paragraph of subparagraph (a) of paragraph 2 of subsection (n-1) of section 606 of the tax law, as added by section 1 of subpart B of part C of chapter 20 of the laws of 2015, is amended to read as follows: To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving EITHER the STAR exemption authorized by section four hundred twenty-five of the real property tax law OR THE SCHOOL TAX RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION, and (iii) had qualified gross income no greater than two hundred seven- ty-five thousand dollars. Provided, however, that no credit shall be allowed if any of the following apply: S 8. This act shall take effect immediately, provided, however, that sections six and seven of this act shall apply to taxable years begin- ning on or after January 1, 2016. PART B Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of section 1306-a of the real property tax law, as amended by section 6 of part N of chapter 58 of the laws of 2011, is amended to read as follows: (i) The tax savings for each parcel receiving the exemption authorized by section four hundred twenty-five of this chapter shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption, provided however, that [beginning with] FOR the two thousand eleven-two thousand twelve THROUGH TWO THOUSAND FIFTEEN-TWO THOUSAND SIXTEEN school [year] YEARS, the tax savings applicable to any "portion" (which as used herein shall mean that part of an assessing unit located within a school district) shall not exceed the tax savings applicable to that portion in the prior school year multiplied by one hundred two percent, with the result rounded to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN- NING WITH THE TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN SCHOOL YEAR, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibility of the commissioner to calculate tax savings limitations for purposes of this subdivision. S 2. This act shall take effect immediately. PART C Section 1. Subparagraphs (iv), (v) and (vi) of paragraph (b) of subdi- vision 4 of section 425 of the real property tax law, subparagraph (iv) as amended by chapter 451 of the laws of 2015, subparagraph (v) as amended by section 10 of part W of chapter 56 of the laws of 2010, subparagraph (vi) as amended by section 3 of part E of chapter 83 of the laws of 2002, and clause E of subparagraph (vi) as further amended by section 1 of part W of chapter 56 of the laws of 2010, are amended to read as follows: (iv) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] SEVENTEEN, the application form shall indicate that the owners of the property and any owners' spouses residing on the premises [may] MUST ENROLL IN THE STAR INCOME VERIFICATION PROGRAM ADMINISTERED BY THE DEPARTMENT IN ORDER FOR S. 6409 11 A. 9009 THE PROPERTY TO BE ELIGIBLE FOR AN ENHANCED EXEMPTION PURSUANT TO THIS SUBDIVISION. TO ENROLL THEREIN, THEY MUST authorize the assessor to have their income eligibility verified annually thereafter by the [state] department [of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer iden- tification numbers in order to facilitate matching with records of the department. Thereafter, their income eligibility shall be verified annu- ally by the department and the assessor shall not request income documentation from them, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those require- ments, OR UNLESS ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR AND DID NOT DO SO. All APPLICANTS FOR THE ENHANCED STAR EXEMPTION AND ALL assessing units shall be required to participate in this program. (v) (A) Except in the case of a city with a population of one million or more, the assessor shall forward to the department, in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. After receiving the department's response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confiden- tial and shall not be subject to disclosure under article six of the public officers law. (B) In the case of a city of one million or more, the assessor shall forward to the department [of taxation and finance], in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. The department shall advise the assessor of its findings in the manner provided by the agreement executed pursuant to section one hundred seventy-one-o of the tax law. After receiving such response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confidential and shall not be subject to disclosure under article six of the public officers law. (vi) Notwithstanding the provisions of subparagraphs (iv) and (v) of this paragraph, which establish a STAR income verification program, income documentation must be submitted to the assessor in connection with each of the following: (A) Initial applications for the enhanced STAR exemption; (B) Renewal applications [submitted by a person or persons who have not elected to participate in the STAR income verification program] WHERE ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR AND DID NOT DO SO; S. 6409 12 A. 9009 (C) Applications that would allow an enhanced exemption to resume after having been discontinued; (D) Applications submitted by a person or persons who had previously qualified for the enhanced exemption but not in the assessing unit in question; and (E) Applications with respect to which the department [of taxation and finance] has advised the assessor [through the commissioner] that it is unable to determine whether a participant or participants in the STAR income verification program satisfy the income eligibility requirements. S 2. This act shall take effect immediately and shall apply to the administration of the enhanced STAR exemption authorized by subdivision 4 of section 425 of the real property tax law beginning with final assessment rolls to be completed in 2017. PART D Section 1. Subdivision 6 of section 425 of the real property tax law is amended by adding a new paragraph (a-2) to read as follows: (A-2) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A RENEWAL APPLICATION FOR THE "ENHANCED" STAR EXEMPTION AUTHORIZED BY SUBDIVISION FOUR OF THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT- ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE COMMISSIONER SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO SUCH OWNER AND THE ASSESSOR. IF THE DETERMINATION STATES THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA- TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING- LY. S 2. Section 467 of the real property tax law is amended by adding a new subdivision 8-a to read as follows: 8-A. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT A LOCAL LAW PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION IS FURTHER AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL APPLICA- TION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. S. 6409 13 A. 9009 SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF HE OR SHE IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI- NATION STATES THAT THE ASSESSOR HAS GRANTED THE EXEMPTION, HE OR SHE SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI- CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY. S 3. This act shall take effect on the sixtieth day after it shall have become a law. PART E Section 1. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU- LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU- SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A RESI- DENT INDIVIDUAL OF THE STATE WHO IS A RESIDENT OF A CITY WITH A POPULATION OVER ONE MILLION, AS PROVIDED BELOW. THE CREDIT SHALL BE ALLOWED AGAINST THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, 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 WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO CREDIT SHALL BE GRANTED TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (2) THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED BASED UPON THE TAXPAYER'S INCOME AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. FOR THE PURPOSES OF THIS PARAGRAPH, ANY TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITH INCOME OF MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A CREDIT. (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. (B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS. (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA- BLE YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT, THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE. S 2. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax law, paragraph 1 as amended by section 3 of part A of chapter 56 of the S. 6409 14 A. 9009 laws of 1998, paragraph 2 as amended by section 1 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 4 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven, AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this subsection, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For the purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of this chapter.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 3. Paragraphs 1 and 2 of subsection (c) of section 11-1706 of the administrative code of the city of New York, paragraph 1 as amended by section 6 of part A of chapter 56 of the laws of 1998, paragraph 2 as S. 6409 15 A. 9009 amended by section 2 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this [subdivision] SUBSECTION, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of the tax law.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. PART F S. 6409 16 A. 9009 Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: (16) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER FINDS THAT A PROPERTY OWNER WAS ELIGIBLE FOR THE STAR EXEMPTION AUTHORIZED BY THIS SECTION ON AN ASSESSMENT ROLL, BUT THE EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE PROPERTY OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY OWNER OR HIS OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION AND FINANCE IS AUTHORIZED TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF THE STAR EXEMPTION HAD BEEN TAKEN INTO ACCOUNT IN THE CALCULATION OF THAT TAXPAYER'S SCHOOL TAX BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER- TY OWNER NOR HIS OR HER AGENT SHALL BE ENTITLED TO A REFUND OF THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE ERROR. S 2. This act shall take effect immediately. PART G Section 1. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. S 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 1 of part H of chapter 59 of the laws of 2013, is amended to read as follows: S 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2016], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of S. 6409 17 A. 9009 taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2017 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2016]. S 6. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY. -- (1) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPARER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYA- BLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH (1) OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. S 7. Subsection (u) of section 685 of the tax law is amended by adding two new paragraphs (1) and (2) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. ANY INDIVIDUAL WHO IS A TAX RETURN PREPARER BUT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER, WHO IS REQUIRED PURSUANT TO PARA- GRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND AND WHO FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASON- ABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT S. 6409 18 A. 9009 EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALEN- DAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALEN- DAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE IS NOT SO INCLUDED, THE PERSON WHO IS THE TAX RETURN PREPARER BUT IT NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEV- ER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARA- GRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDEN- TIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. S 8. This act shall take effect immediately; provided, however, that section seven of this act shall apply to taxable years commencing on and after January 1, 2016. PART H Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part P of chapter 59 of the laws of 2014, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [sixty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [seventy-two] EIGHTY million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 3. Subdivision 4 of section 22 of the public housing law as amended by section two of this act is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S. 6409 19 A. 9009 S 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty-eight] NINETY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2017; section three of this act shall take effect April 1, 2018; section four of this act shall take effect April 1, 2019 and section five of this act shall take effect April 1, 2020. PART I Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S. 6409 20 A. 9009 S 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any S. 6409 21 A. 9009 week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 4. This act shall take effect immediately. PART J Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) A taxpayer which is a qualified commercial production company, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predominantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thousand [seventeen] NINETEEN. S 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Expiration of credit. The credit allowed under this subdivision shall not be applicable to taxable years beginning on or after [December thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN. S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as amended by section 4 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) Allowance of credit. A taxpayer that is eligible pursuant to the provisions of section twenty-eight of this chapter shall be allowed a credit to be computed as provided in such section against the tax imposed by this article. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thou- sand [seventeen] NINETEEN. S 4. This act shall take effect immediately. PART K Section 1. Section 5 of chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disabilities, is amended to read as follows: S 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; [and] provided further that this act shall apply to all tax years commencing on or after January 1, 2011; AND PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL REMAIN IN EFFECT UNTIL DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL BE DEEMED REPEALED. S 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year S. 6409 22 A. 9009 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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. THE TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. S 3. This act shall take effect immediately. PART L Section 1. Section 2 of part I of chapter 58 of the laws of 2006, relating to providing an enhanced earned income tax credit, as amended by section 1 of part G of chapter 59 of the laws of 2014, is amended to read as follows: S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 [and before January 1, 2017]. S 2. This act shall take effect immediately. PART M Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part B of chapter 61 of the laws of 2011, is amended to read as follows: S 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2015; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. S. 6409 23 A. 9009 S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2015; provided, however that notwithstanding the provisions of article 5 of the general construction law, the provisions of section 25, paragraph 11 of subsection (c) of section 683, subsections (p), (p-1), (x), (y), (z), (aa) and (bb) of section 685, paragraph 11 of subsection (c) of section 1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085 of the tax law, and section 11 of Part N of chapter 61 of the laws of 2005, are hereby revived and shall continue in full force and effect as such provisions existed on July 1, 2015. PART N Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as amended by chapter 193 of the laws of 2012, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thousand seven and on or after January first, two thousand eight and before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S 3. This act shall take effect immediately. PART O Section 1. Section 359 of the economic development law, as amended by section 3 of part C of chapter 68 of the laws of 2013, is amended to read as follows: S 359. Cap on tax credit. The total amount of tax credits listed on certificates of tax credit issued by the commissioner for any taxable year may not exceed the limitations set forth in this section. One-half of any amount of tax credits not awarded for a particular taxable year IN YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR may be used by the commissioner to award tax credits in another taxable year. Credit components in the aggregate With respect to taxable S. 6409 24 A. 9009 shall not exceed: years beginning in: $ 50 million 2011 $ 100 million 2012 $ 150 million 2013 $ 200 million 2014 $ 250 million 2015 $ 200 million 2016 $ 200 million 2017 $ 200 million 2018 $ 200 million 2019 $ 200 million 2020 $ 200 million 2021 $ 150 million 2022 $ 100 million 2023 $ 50 million 2024 Twenty-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision four of section three hundred fifty-three of this article and seventy-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision three of section three hundred fifty-three of this article. Provided, however, if by September thirtieth of a calendar year, the department has not allocated the full amount of credits available in that year to either: (i) businesses accepted into the program under subdivision four of section three hundred fifty-three of this article or (ii) businesses accepted into the program under subdivision three of section three hundred fifty-three of this article, the commissioner may allocate any remaining tax credits to businesses referenced in [para- graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided, however, that under no circumstances may the AGGREGATE statutory cap FOR ALL PROGRAM YEARS be exceeded. ONE HUNDRED PERCENT OF THE UNAWARDED AMOUNTS REMAINING AT THE END OF TWO THOUSAND TWENTY-FOUR MAY BE ALLO- CATED IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT LIMITATION ON ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED- ITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. S 2. Subdivision 5 of section 354 of the economic development law, as amended by section 2 of part C of chapter 68 of the laws of 2013, is amended to read as follows: 5. A participant may claim tax benefits commencing in the first taxa- ble year that the business enterprise receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later. A participant may claim such benefits for the next nine consecutive taxable years, provided that the participant demonstrates to the department that it continues to satisfy the eligi- bility criteria specified in section three hundred fifty-three of this article and subdivision two of this section in each of those taxable years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. If, in any given year, a participant who has satisfied the eligibility criteria specified in section three hundred fifty-three of this article realizes job creation less than the estimated amount, the credit shall be reduced by the proportion of actual job creation to the estimated amount, S. 6409 25 A. 9009 provided the proportion is at least seventy-five percent of the jobs estimated. S 3. Subdivision (b) of section 31 of the tax law, as added by section 7 of part G of chapter 61 of the laws of 2011, is amended to read as follows: (b) To be eligible for the excelsior jobs program credit, the taxpayer shall have been issued a "certificate of tax credit" by the department of economic development pursuant to subdivision four of section three hundred fifty-four of the economic development law, which certificate shall set forth the amount of each credit component that may be claimed for the taxable year. A taxpayer may claim such credit for ten consec- utive taxable years commencing in the first taxable year that the taxpayer receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later, PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. The taxpayer shall be allowed to claim only the amount listed on the certificate of tax credit for that taxable year. Such certificate must be attached to the taxpay- er's return. No cost or expense paid or incurred by the taxpayer shall be the basis for more than one component of this credit or any other tax credit, except as provided in section three hundred fifty-five of the economic development law. S 4. This act shall take effect immediately. PART P Section 1. Subdivision (c) of section 24 of the tax law, as added by section 1 of part P of chapter 60 of the laws of 2004, is amended to read as follows: (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) article 9-A: section [210] 210-B: subdivision [36] 20. (2) article 22: section 606: subsection (gg). S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, are amended to read as follows: (a) A taxpayer that is an eligible employer or an owner of an eligible employer as defined in subdivision (b) of this section shall be eligible for a credit against the tax imposed under article nine, nine-A, twen- ty-two, [thirty-two] or thirty-three of this article, pursuant to the provisions referenced in subdivision (e) of this section. (2) Article 9-A: Section [210] 210-B, subdivision [46] 40. (4) [Article 32: Section 1456, subsection (z). (5)] Article 33: Section 1511, subdivision (cc). S 3. Paragraph (e) of subdivision 1 of section 209 of the tax law, as added by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (e) At the end of each year, the commissioner shall review the cumula- tive percentage change in the consumer price index. The commissioner shall adjust the receipt thresholds set forth in this subdivision if the consumer price index has changed by ten percent or more since January first, two thousand fifteen, or since the date that the thresholds were last adjusted under this subdivision. The thresholds shall be adjusted to reflect that cumulative percentage change in the consumer price index. The adjusted thresholds shall be rounded to the nearest one thou- sand dollars. As used in this paragraph, "consumer price index" means S. 6409 26 A. 9009 the consumer price index for all urban consumers (CPI-U) available [form] FROM the bureau of labor statistics of the United States depart- ment of labor. Any adjustment shall apply to tax periods that begin after the adjustment is made. S 4. The opening paragraph of paragraph (a) of subdivision 5 of section 210-A of the tax law, as amended by section 23 of part T of chapter 59 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal revenue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision five of section two hundred eight of this article shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 5. Paragraph (c) of subdivision 7 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Average number of individuals employed full-time. For the purposes of this subdivision, average number of individuals employed full-time shall be computed by adding the number of such individuals employed by the taxpayer at the end of each quarter during each taxable year or other applicable period and dividing the sum so obtained by the number of such quarters occurring within such taxable year or other applicable period; provided however, except that in computing base year employment, there shall be excluded therefrom any employee with respect to whom a credit provided for under subdivision [six of this section is] NINETEEN OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed for the taxable year. S 6. Paragraph (a) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Application of credit. A taxpayer shall be allowed a credit, to be credited against the tax imposed by this article, equal to the amount of the special additional mortgage recording tax paid by the taxpayer S. 6409 27 A. 9009 pursuant to the provisions of subdivision one-a of section two hundred fifty-three of this chapter [or] ON mortgages recorded. Provided, howev- er, no credit shall be allowed with respect to a mortgage of real prop- erty principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the metropolitan commuter transportation area. Provided further, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in the county of Erie. S 7. Subdivision 45 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 45. Order of credits. [(a)] Credits allowable under this article which cannot be carried over and which are not refundable shall be deducted first. [The credit allowable under subdivision six of this section shall be deducted immediately after the deduction of all credits allowable under this article which cannot be carried over and which are not refundable, whether or not a portion of such credit is refundable.] Credits allowable under this article which can be carried over, and carryovers of such credits, shall be deducted next [after the deduction of the credit allowable under subdivision six of this section], and among such credits, those whose carryover is of limited duration shall be deducted before those whose carryover is of unlimited duration. Cred- its allowable under this article which are refundable [(other than the credit allowable under subdivision six of this section)] shall be deducted last. S 8. Paragraph (a) of subdivision 3 of section 210-C of the tax law, as added by section 18 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Subject to the provisions of paragraph (c) of subdivision two of this section, a taxpayer may elect to treat as its combined group all corporations that meet the ownership requirements described in paragraph (a) of subdivision two of this section (such corporations collectively referred to in this subdivision as the "commonly owned group"). If that election is made, the commonly owned group shall calculate the combined business income, combined capital, and fixed dollar minimum bases of all members of the group in accordance with [paragraph] SUBDIVISION four of this [subdivision] SECTION, whether or not that business income or busi- ness capital is from a single unitary business. S 9. Paragraph I of subdivision 1 of section 11-604 of the administra- tive code of the city of New York, as added by chapter 491 of the laws of 2007, is amended to read as follows: I. Notwithstanding any provision of this subdivision to the contrary, for taxable years beginning on or after January first, two thousand seven for any corporation that: (a) has a business allocation percentage for the taxable year, as determined under paragraph (a) of subdivision three of this section, of one hundred percent; (b) has no investment capital or income at any time during the taxable year; (c) has no subsidiary capital or income at any time during the taxable year; and S. 6409 28 A. 9009 (d) has gross income, as defined in section sixty-one of the internal revenue code, less than two hundred fifty thousand dollars for the taxa- ble year: the tax imposed by subdivision one of section 11-603 of this subchap- ter shall be the greater of the tax on entire net income computed under clause one of subparagraph (a) of paragraph E of this subdivision and the fixed dollar minimum tax specified in clause four of subparagraph (a) of paragraph E of this subdivision. For purposes of this paragraph, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, any corporation for which an election under subsection (a) of section six hundred sixty of the tax law is not in effect for the taxable year may elect to treat as entire net income the sum of: (i) entire net income as determined under section two hundred eight of the tax law; and (ii) any deductions taken for the taxable year in computing federal taxable income for New York city taxes paid or accrued under this chap- ter. S 10. Subdivision 2 of section 11-651 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 2. Each reference in THE TAX LAW OR this code to subchapters two or three of this chapter, or any of the provisions thereof, shall be deemed a reference also to this subchapter, and any of the applicable provisions thereof, where appropriate and with all necessary modifica- tions. S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) The term "investment capital" means investments in stocks that: (i) satisfy the definition of a capital asset under section 1221 of the internal revenue code at all times the taxpayer owned such stocks during the taxable year; (ii) are held by the taxpayer for investment for more than one year; (iii) the dispositions of which are, or would be, treated by the taxpayer as generating long-term capital gains or losses under the internal revenue code; (iv) for stocks acquired on or after January first, two thousand fifteen, at any time after the close of the day in which they are acquired, have never been held for sale to customers in the regular course of business; and (v) before the close of the day on which the stock was acquired, are clearly identified in the taxpayer's records as stock held for investment in the same manner as required under section 1236(a)(1) of the internal revenue code for the stock of a dealer in securities to be eligible for capital gain treatment (whether or not the taxpayer is a dealer of securities subject to section 1236), provided, however, that for stock acquired prior to October first, two thousand fifteen that was not subject to section 1236(a) of the internal revenue code, such identification in the taxpayer's records must occur before October first, two thousand fifteen. Stock in a corporation that is conducting a unitary business with the taxpayer, stock in a corpo- ration that is included in a combined report with the taxpayer pursuant to the commonly owned group election in subdivision three of section 11-654.3 of this subchapter, and stock [used] ISSUED by the taxpayer shall not constitute investment capital. For purposes of this subdivi- sion, if the taxpayer owns or controls, directly or indirectly, less than twenty percent of the voting power of the stock of a corporation, S. 6409 29 A. 9009 that corporation will be presumed to be conducting a business that is not unitary with the business of the taxpayer. S 12. Subparagraph 2 of paragraph (a) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (2) The amount determined in this subparagraph is the product of (i) the excess of (A) the tax computed under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, without allowance of any credits allowed by this section, over (B) the tax so computed, determined as if the corporation had no such distributive share or guar- anteed payments with respect to the unincorporated business, and (ii) a fraction, the numerator of which is four and the denominator of which is eight and eighty-five one hundredths, [provided however,] EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA- GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denomina- tor shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year; [and,] provided[, however,] that the amounts computed in subclauses (A) and (B) of clause (i) of this subparagraph shall be computed with the following modifications: (A) such amounts shall be computed without taking into account any carryforward or carryback by the partner of a net operating loss or a prior net operation loss conversion subtraction; (B) if, prior to taking into account any distributive share or guaran- teed payments from any unincorporated business or any net operating loss carryforward or carryback, the entire net income of the partner is less than zero, such entire net income shall be treated as zero; and (C) if such partner's net total distributive share of income, gain, loss and deductions of, and guaranteed payments from, any unincorporated business is less than zero, such net total shall be treated as zero. The amount determined in this subparagraph shall not be less than zero. S 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (1) Notwithstanding anything to the contrary in paragraph (a) of this subdivision, in the case of a corporation that, before the application of this subdivision or any other credit allowed by this section, is liable for the tax on business income under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, the credit or the sum of the credits that may be taken by such corporation for a taxa- ble year under this subdivision with respect to an unincorporated busi- ness or unincorporated businesses in which it is a partner shall not exceed the tax so computed, without allowance of any credits allowed by this section, multiplied by a fraction the numerator of which is four and the denominator of which is eight and eighty-five one-hundredths [provided, however], EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denominator shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year. If the credit allowed under this subdivision or the sum of such credits exceeds the product of such tax and such fraction, the amount of the excess may be carried S. 6409 30 A. 9009 forward, in order, to each of the seven immediately succeeding taxable years and, to the extent not previously taken, shall be allowed as a credit in each of such years. In applying the provisions of the preced- ing sentence, the credit determined for the taxable year under paragraph (a) of this subdivision shall be taken before taking any credit carry- forward pursuant to this paragraph and the credit carryforward attribut- able to the earliest taxable year shall be taken before taking a credit carryforward attributable to a subsequent taxable year. S 14. Subparagraph 8 of paragraph (a) of subdivision 21 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (8) The credit allowed under this subdivision shall only be allowed for taxable years beginning before January first, two thousand [sixteen] NINETEEN. S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin- istrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (c) Receipts from sales of tangible personal property and electricity that are traded as commodities as the term "commodity" is defined in section four hundred seventy-five of the internal revenue code, shall be included in the receipts fraction in accordance with clause [(i)] (IX) of subparagraph two of paragraph (a) of subdivision five of this section. S 16. The opening paragraph of paragraph (a) of subdivision 5 of section 11-654.2 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal reven- ue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision [4] FOUR of section 11-652 of this subchapter shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION FIVE-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S. 6409 31 A. 9009 S 17. This act shall take effect immediately; provided however that sections one, two, three, four, five, six, seven and eight of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect, and sections nine, ten, eleven, twelve, thirteen, fourteen, fifteen and sixteen of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part D of chapter 60 of the laws of 2015, took effect. PART Q Section 1. Subdivision 5 of section 183-a of the tax law, as amended by section 61 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. The report covering the tax surcharge which must be calculated pursuant to this section based upon the tax reportable on the report due by March fifteenth of any year under section one hundred eighty-three of this article, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR UNDER SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, shall be filed on or before March fifteenth of the year next succeeding such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE YEAR NEXT SUCCEEDING SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. An extension pursuant to section one hundred ninety- three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form as said commis- sioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this arti- cle, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer's report for the preceding year, if such preceding year consisted of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpay- er, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to section one hundred eighty-three of this article are applicable to the tax surcharge imposed by this section except for section one hundred ninety-two of this arti- cle. S 2. Subdivision 4 of section 186-a of the tax law, as amended by chapter 536 of the laws of 1998, is amended to read as follows: 4. Every utility subject to tax hereunder shall file, on or before March fifteenth of each year, a return for the year ended on the preced- ing December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the S. 6409 32 A. 9009 purposes of this subdivision, to have commenced on June first, nineteen hundred seventy-six, AND SHALL FILE, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR- TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, including any period for which the tax imposed hereby or by any amendment hereof is effective, each of which returns shall state the gross income or gross operating income for the period covered by each such return. Returns shall be filed with the commissioner of taxation and finance on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any utility to file an annual return, which shall contain any data spec- ified by the commissioner, regardless of whether the utility is subject to tax under this section; and the commissioner may require a landlord selling to a tenant gas, electric, steam, water or refrigeration or furnishing gas, electric, steam, water or refrigerator service, where the same has been subjected to tax under this section on the sale to such landlord, to file, on or before the fifteenth day of March of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an information return for the year ended on the preceding December thir- ty-first, covering such year in such form and containing such data as the commissioner may specify. Every return shall have annexed thereto a certification by the head of the utility making the same, or of the owner or of a co-partner thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 3. Subdivision 6 of section 186-e of the tax law, as added by chap- ter 2 of the laws of 1995, is amended to read as follows: 6. Returns. Every provider of telecommunication services subject to tax under this section shall file, on or before March fifteenth of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, a return for the year ended on the preceding December thirty-first, and pay the tax due, which return shall state the gross receipts for the period covered by each such return and the resale exclusions during such period. Returns shall be filed with the commissioner on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any provider of telecommuni- cation services to file an annual return, which shall contain any data specified by the commissioner, regardless of whether such provider is subject to tax under this section. Every return shall have annexed ther- eto a certification by the head of the provider of telecommunication services making the same, or of the owner or of a partner or member thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 4. Subdivision 1 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred S. 6409 33 A. 9009 eighty-three or one hundred eighty-five of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMIS- SIONER of its condition at the close of its business on the preceding December thirty-first, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year. S 5. Subdivision 1 of section 192 of the tax law, as amended by section 26 of part S of chapter 59 of the laws of 2014, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMISSIONER of its condition at the close of its business on the preceding December thirty-first, stat- ing the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year. S 6. Subdivision 2 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 2. Transportation and transmission corporations. Every transportation or transmission corporation, joint-stock company or association liable to pay an additional franchise tax under section one hundred eighty-four of this chapter, shall also, on or before March fifteenth of each year, make a written report to the [tax commission] COMMISSIONER of the amount of its gross earnings subject to the tax imposed by said section for the year ended on the preceding December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE COMMISSIONER OF THE AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. Any such corporation, joint-stock company or association which ceases to be subject to the tax imposed by section one hundred eighty-four of this chapter by reason of a liquidation, dissolution, merger or consolidation with any other corporation, or any other cause, shall, on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require, make a written report to the [tax commission] COMMIS- SIONER of the amount of its gross earnings subject to the tax imposed by section one hundred eighty-four of this chapter for any period for which no report was theretofore filed. Any corporation, joint-stock company or association subject to a tax upon dividends under said section one hundred eighty-four of this chapter shall also include in its report under this subdivision required to be filed a statement of the author- S. 6409 34 A. 9009 ized capital of the company, the amount of capital stock issued, and the amount of dividends of every nature paid during the year ended on the preceding December thirty-first. As to tax payers subject to such tax upon dividends under said section one hundred eighty-four of this chap- ter, the year ended on December thirty-first, nineteen hundred seventy- six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six. S 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, as amended by section 1 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) For taxable years beginning on or after January first, nineteen hundred seventy-seven, every taxpayer subject to tax under section one hundred eighty-two, one hundred eighty-two-a, former section one hundred eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article, must pay in each year an amount equal to (i) twenty-five percent of the tax imposed under each of such sections for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax imposed under any of these sections for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. If the preceding year's tax under section one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section one hundred eighty-four-a or one hundred eighty-six-c of this article, respectively, the taxpayer must also pay in each such year an amount equal to (i) twenty-five percent of the tax surcharge imposed under such section for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed under that section for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. The amount or amounts must be paid with the return or report required to be filed with respect to the tax or tax surcharge for the preceding taxable year or with an application for extension of the time for filing the return or report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in this state in a corporate or organized capacity, or of maintaining an office in this state, or of deriving receipts from activity in this state, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a franchise tax, upon the basis of its business income base, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report which shall be filed, except as here- inafter provided, on or before the fifteenth day of March next succeed- ing the close of each such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS S. 6409 35 A. 9009 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, or, in the case of a corporation which reports on the basis of a fiscal year, with- in two and one-half months after the close of such fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided. S 9. Subdivision 1 of section 211 of the tax law, as amended by chap- ter 436 of the laws of 1974, the opening paragraph as amended by chapter 190 of the laws of 1990 and the second undesignated paragraph as amended by chapter 542 of the laws of 1985, is amended to read as follows: 1. Every taxpayer[, as well as every foreign corporation having an employee, including any officer, within the state,] shall annually on or before March fifteenth, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a report in a form prescribed by [it] THE COMMISSIONER (except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF ITS FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and except, also, that a corporation which is a DISC shall transmit its report on or before the fifteenth day of the ninth month following the close of its calendar or fiscal year), setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a report on the date of such cessation or at such other time as the [tax commission] COMMISSIONER may require covering each year or period for which no report was theretofore filed. In the case of a termination year of an S corporation, the S short year and the C short year shall be treated as separate short taxable years, provided, however, the due date of the report for the S short year shall be the same as the due date of the report for the C short year. Every taxpayer shall also transmit such other reports and such facts and information as the [tax commission] COMMISSIONER may require in the administration of this article. The [tax commission] COMMISSIONER may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, such taxpayer files with the [tax commission] COMMISSIONER an application for extension in such form as [said commis- sion] THE COMMISSIONER may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 10. Subdivision (a) of section 213-b of the tax law, as amended by section 2 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR S. 6409 36 A. 9009 TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV- ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. If the preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twen- ty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars. S 11. Subdivision (f) of section 213-b of the tax law, as amended by chapter 613 of the laws of 1976, is amended to read as follows: (f) The preceding year's tax defined.-- As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section two hundred nine of this chapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section two hundred thirteen of this chapter as the tax imposed upon the taxpayer for such calendar or fiscal year. S 12. Paragraph 1 of subsection (c) of section 658 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Partnerships. Every partnership having a resident partner or having any income derived from New York sources, determined in accord- ance with the applicable rules of section six hundred thirty-one as in the case of a nonresident individual, shall make a return for the taxa- ble year setting forth all items of income, gain, loss and deduction and such other pertinent information as the commissioner may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due date for the return of a partnership consisting entirely of nonresident aliens shall be the date prescribed for the filing of its federal partnership return for the taxable year. For purposes of this paragraph, "taxable year" means a year or a period which would be a taxable year of the partner- ship if it were subject to tax under this article. S. 6409 37 A. 9009 S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658 of the tax law, as amended by section 18 of part U of chapter 61 of the laws of 2011, is amended to read as follows: (A) Every subchapter K limited liability company, every limited liability company that is a disregarded entity for federal income tax purposes, and every partnership which has any income derived from New York sources, determined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall[, within sixty days after the last day of the taxable year,] ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee. The amount of the filing fee is the amount set forth in subparagraph (B) of this paragraph. The minimum filing fee is twenty-five dollars for taxable years beginning in two thousand eight and thereafter. Limited liability companies that are disregarded entities for federal income tax purposes must pay a filing fee of twenty-five dollars for taxable years beginning on or after January first, two thousand eight. S 14. Subsection (i) of section 1087 of the tax law, as added by chap- ter 188 of the laws of 1964, is amended to read as follows: (i) Prepaid tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment (including any amount paid by the taxpayer as estimated tax for a taxable year) shall be deemed to have been paid by it on the fifteenth day of the third month following the close of the taxable year the income of which is the basis for tax under article nine-a, [nine-b or nine-c,] or on the last day prescribed in article nine for the filing of a final return for such taxable year, or portion thereof, determined in all cases without regard to any extension of time granted the taxpayer, FOR TAXABLE YEARS BEGIN- NING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE NINE-A, OR ON THE LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR SUCH TAXABLE YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 15. Paragraph 3 of subdivision (a) of section 1514 of the tax law, as amended by section 89 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (3) Such amount or amounts described in paragraphs one and two of this subdivision shall be paid with the return required to be filed with respect to such tax or tax surcharge for such preceding taxable year or with an application for extension of the time for filing such return, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 16. Subdivision (f) of section 1514 of the tax law, as amended by section 26 of part H3 of chapter 62 of the laws of 2003, is amended to read as follows: (f) The preceding year's tax defined. As used in this section, "the preceding year's tax" means, for taxpayers subject to tax under subdivi- sion (b) of section fifteen hundred ten of this article, the taxes imposed upon the taxpayer by sections fifteen hundred one and fifteen hundred ten of this article from the preceding taxable year or as other- wise determined by subdivision (b) of section fifteen hundred five of this article, and for taxpayers subject to tax under section fifteen S. 6409 38 A. 9009 hundred two-a of this article, the tax imposed upon the taxpayer by such section fifteen hundred two-a of this article from the preceding year, or for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the return required to be filed for such preceding taxable year, the amount properly estimated pursuant to paragraph one of subdivision (b) of section fifteen hundred sixteen of this article as the tax imposed upon the taxpayer for such taxable year. S 17. Subdivision (a) of section 1515 of the tax law, as added by section 649 of the laws of 1974 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows: (a) Every taxpayer and every other foreign and alien insurance corpo- ration having an employee, including any officer, in this state or having an agent or representative in this state, shall annually, on or before the fifteenth day of the third month following the close of its taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a return in a form prescribed by [it] THE COMMISSIONER setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a return on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require covering each year or period for which no return was theretofore filed. A copy of each return required under this subdivision shall also be transmitted to the superintendent of financial services at or before the times specified for filing such returns with the [tax commission] COMMISSIONER. S 18. Subdivisions (a) and (b) of section 11-514 of the administrative code of the city of New York, subdivision (a) as amended by chapter 183 of the laws of 2009, are amended to read as follows: (a) General. [On or before the fifteenth day of the fourth month following the close of a taxable year, an] AN unincorporated business income tax return shall be made and filed, and the balance of any tax shown on the face of such return, not previously paid as installments of estimated tax, shall be paid, ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN: (1) by or for every unincorporated business, for taxable years begin- ning after nineteen hundred eighty-six but before nineteen hundred nine- ty-seven, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ten thousand dollars, or having any amount of unincorporated business taxable income; (2) by or for every partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unin- corporated business gross income, determined for purposes of this subdi- vision without any deduction for the cost of goods sold or services performed, of more than twenty-five thousand dollars, or having unincor- porated business taxable income of more than fifteen thousand dollars; S. 6409 39 A. 9009 (3) by or for every unincorporated business other than a partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unincorporated business gross income, deter- mined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than seventy-five thousand dollars, or having unincorporated business taxable income of more than thirty-five thousand dollars; and (4) by or for every unincorporated business, for taxable years begin- ning after two thousand eight, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ninety-five thousand dollars. (b) Decedents. The return for any deceased individual shall be made and filed by his or her executor, administrator, or other person charged with his or her property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, the fifteenth day of the fourth month following the close of the twelve- month period [which] THAT began with the first day of such fractional part of the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF THE YEAR. S 19. Subdivision (i) of section 11-527 of the administrative code of the city of New York is amended to read as follows: (i) Prepaid tax. For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment and any amount paid by the taxpayer as estimated tax for a taxable year shall be deemed to have been paid by the taxpayer, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth month following the close of his or her taxable year with respect to which such amount constitutes a credit or payment, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA- BLE YEAR WITH RESPECT TO WHICH SUCH AMOUNT CONSTITUTES A CREDIT OR PAYMENT. S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) For the privilege of doing business, or of employing capital, or of owning or leasing property in the city in a corporate or organized capacity, or of maintaining an office in the city, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a tax, upon the basis of its business income, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report [which] THAT shall be filed, except as hereinafter provided, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before the fifteenth day of March next succeeding the close of each such CALEN- DAR year, or, in the case of a taxpayer [which] THAT reports on the basis of a fiscal year, within two and one-half months after the close of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN S. 6409 40 A. 9009 THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR, and shall be paid as hereinafter provided. S 21. Subdivision 1 of section 11-655 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. Every corporation having an officer, agent or representative within the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the commissioner of finance a report, in a form prescribed by the commissioner of finance [(except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year)], setting forth such information as the commissioner of finance may prescribe, [and every] EXCEPT THAT A CORPORATION THAT REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND, FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR. EVERY taxpayer [which] THAT ceases to do business in the city or to be subject to the tax imposed by this subchapter shall transmit to the commissioner of finance a report on the date of such cessation or at such other time as the commissioner of finance may require covering each year or period for which no report was theretofore filed. Every taxpayer shall also transmit such other reports and such facts and information as the commissioner of finance may require in the administration of this subchapter. The commissioner of finance may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, whichever is applicable, such taxpayer files with the commissioner of finance an application for extension in such form as the commissioner of finance may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 22. Subdivision 1 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU- SAND SIXTEEN, EVERY taxpayer subject to the tax imposed by section 11-653 of this subchapter shall pay with the report required to be filed for the preceding privilege period, if any, or with an application for extension of the time and filing such report, an amount equal to twen- ty-five per centum of the preceding year's tax if such preceding year's tax exceeded one thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR. S 23. Subdivision 6 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 6. As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section 11-653 of this subchapter for the S. 6409 41 A. 9009 preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section 11-657 of this subchapter as the tax imposed upon the taxpayer for such calendar or fiscal year. S 24. This act shall take effect immediately provided, however, that section five of this act shall take effect on the same date and in the same manner as section 26 of part S of chapter 59 of the laws of 2014, takes effect, and that section five of this act shall apply to taxable years beginning on or after January 1, 2018 and that section thirteen of this act shall apply to taxable years beginning on or after January 1, 2016. PART R Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 12 of part A of chap- ter 59 of the laws of 2014, is amended to read as follows: (iv) (A) for taxable years beginning before January first, two thou- sand sixteen, if the business income base is not more than two hundred ninety thousand dollars the amount shall be six and one-half percent of the business income base; if the business income base is more than two hundred ninety thousand dollars but not over three hundred ninety thou- sand dollars the amount shall be the sum of (1) eighteen thousand eight hundred fifty dollars, (2) seven and one-tenth percent of the excess of the business income base over two hundred ninety thousand dollars but not over three hundred ninety thousand dollars and (3) four and thirty- five hundredths percent of the excess of the business income base over three hundred fifty thousand dollars but not over three hundred ninety thousand dollars; (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS; S 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters S. 6409 42 A. 9009 percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars; OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPO- RATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME AND/OR NET FARM INCOME FROM ITS OWNERSHIP INTERESTS IN LIMITED LIABILITY COMPANIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART S Section 1. This act shall be known and may be cited as the "parental choice in education act". S 2. The education law is amended by adding a new article 25 to read as follows: ARTICLE 25 EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT SECTION 1209. SHORT TITLE. 1210. DEFINITIONS. 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1215. REPORTING AND RECORDKEEPING. 1216. JOINT ANNUAL REPORT. 1217. COMMISSIONER; POWERS. S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT". S 1210. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: S. 6409 43 A. 9009 1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAY- ER. 2. "CONTRIBUTION" MEANS A DONATION PAID BY CASH, CHECK, ELECTRONIC FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD THAT IS MADE BY A TAXPAYER DURING THE TAXABLE YEAR. 3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC OR SIMILAR PROGRAM OF A PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM OR ACADEMIC PROGRAM OF THE PUBLIC SCHOOL, OR PROVIDES A PRE-KINDERGARTEN PROGRAM TO A PUBLIC SCHOOL. FOR PURPOSES OF THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS AND OTHER ACTIVITIES OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI- LY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND VISUAL ARTS; MATH- EMATICS, SOCIAL STUDIES, TECHNOLOGY AND SCIENTIFIC ACHIEVEMENT; (B) INSTRUCTION OR PROGRAMMING TO MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILITIES, INCLUDING TUTORING OR COUN- SELING; OR (C) THE USE OF SPECIALIZED INSTRUCTIONAL MATERIALS, INSTRUC- TORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL. 4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS AN ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALEN- DAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH YEAR FOR SCHOLARSHIPS; (C) PROVIDES MORE THAN FIFTY PERCENT OF ITS SCHO- LARSHIPS DURING A CALENDAR YEAR TO ELIGIBLE PUPILS WHO RESIDE IN A HOUSEHOLD THAT HAS AN INCOME NOT TO EXCEED ONE HUNDRED FIFTY PERCENT OF THE INCOME QUALIFICATION REQUIRED FOR THE REDUCED PRICE SCHOOL LUNCHES UNDER THE NATIONAL SCHOOL LUNCH ACT, PROVIDED HOWEVER FOR THE PURPOSES OF AN EDUCATIONAL SCHOLARSHIP ORGANIZATION FULFILLING SUCH REQUIREMENT, AN EDUCATIONAL SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH ANOTHER EDUCATIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY REPORT THEIR SCHOLARSHIP INFORMATION TO MEET SUCH REQUIREMENT; (D) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGAN- IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; (E) PROVIDES SCHOLARSHIPS TO ELIGIBLE PUPILS FOR USE AT NOT FEWER THAN THREE QUALIFIED SCHOOLS; AND (F) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. 5. "ELIGIBLE PUPIL" MEANS A CHILD WHO IS: (A) A RESIDENT OF THIS STATE; (B) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED IN A PRE-KINDERGARTEN PROGRAM; (C) ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL; AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSEHOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD, NOT TO EXCEED THREE HUNDRED THOUSAND DOLLARS. 6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) IS ESTABLISHED FOR THE PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT LOCATED IN THIS STATE; (C) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE S. 6409 44 A. 9009 PUBLIC SCHOOL OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS BEEN ESTABLISHED TO SUPPORT; (D) DEPOSITS AND HOLDS QUALI- FIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (E) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTI- CLE. 7. "NON-PUBLIC SCHOOL" MEANS ANY NOT-FOR-PROFIT PRE-KINDERGARTEN PROGRAM, ELEMENTARY, OR SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL LOCATED IN THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT PROVIDES INSTRUCTION AT ONE OR MORE LOCATIONS TO AN ELIGIBLE PUPIL IN ACCORDANCE WITH SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER. 8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL DISTRICT OR A PUBLIC SCHOOL IN THIS STATE, PROVIDED THAT SUCH PUBLIC SCHOOL DISTRICT OR PUBLIC SCHOOL: (A) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (B) IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. 9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT INCLUDE A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAP- TER. 10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY A TAXPAYER TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND OR ORGANIZATION. A CONTRIBUTION DOES NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPECIFIED STUDENT. 11. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NON-PUBLIC SCHOOL LOCATED IN THIS STATE. 12. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS ANY OTHER EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT, PARENTS, LEGAL GUARDIAN, OR LEGAL GUARDIANS FOR SUCH ELIGIBLE PUPIL'S TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OF A DISTRICT OF WHICH SUCH PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP OR TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER, BUT ONLY IF THE SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION. 13. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR S. 6409 45 A. 9009 IN CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE; (C) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (D) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. SUCH TERM INCLUDES A PRE-KINDERGARTEN PROGRAM OR NOT-FOR-PROFIT ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM PROJECT OR INITIATIVE FOR USE IN A PUBLIC SCHOOL. S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. ALL PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT FOR QUALI- FIED CONTRIBUTIONS IN ACCORDANCE WITH SECTION FORTY-TWO OF THE TAX LAW, PROVIDED, HOWEVER, THAT SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF EITHER: (A) SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA- RATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; OR (B) THE COMMISSIONER HAS REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE. 2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA- TIONS AND LOCAL EDUCATION FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND RECEIVING APPROVAL PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE. S 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA- TION AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMIS- SIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT SUCH APPLICATION SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVE- MENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) A LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; AND (C) FOR AN EDUCATIONAL SCHOLARSHIP ORGANIZATION, SUBMISSION OF CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS. S 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1. IN GENER- AL. THE COMMISSIONER SHALL REVIEW EACH APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. THE COMMISSIONER SHALL PUBLISH CRITERIA USED TO DETERMINE SELECTION AND ESTABLISH AN APPEALS PROCESS FOR APPLICATIONS THAT ARE NOT APPROVED. 2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED OF THE COMMISSIONER'S DETERMINATION WITHIN FIVE BUSINESS DAYS OF THE DETERMINATION. S 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A FINDING THAT SUCH ORGANIZATION, FUND, SCHOOL OR SCHOOL DISTRICT HAS VIOLATED THIS ARTICLE OR SECTION FORTY-TWO OF THE TAX LAW. THESE S. 6409 46 A. 9009 VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING: (A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR SECTION FORTY-TWO OF THE TAX LAW; (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS; (C) THE FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, THE DEPARTMENT, OR THE DEPARTMENT OF TAXATION AND FINANCE WHEN REQUESTED; OR (D) THE FAIL- URE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NON-ISSUANCE OF CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT REVOCATION IS WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISRE- GARD FOR THE LAW. WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSIONER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ESTAB- LISH AN APPEALS PROCESS FOR DETERMINATIONS REVOKING APPROVALS. S 1215. REPORTING AND RECORDKEEPING. 1. REPORTING. EACH EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI- FIED CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER AND THE DEPARTMENT OF TAXATION AND FINANCE BY JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE. 2. RECORDKEEPING. EACH EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT SHALL MAINTAIN RECORDS INCLUDING: (A) NOTIFICATIONS RECEIVED FROM THE DEPART- MENT OF TAXATION AND FINANCE; (B) NOTIFICATIONS MADE TO THE DEPARTMENT OF TAXATION AND FINANCE; (C) COPIES OF QUALIFIED CONTRIBUTIONS RECEIVED; (D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIBUTIONS; (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT; (F) ANNUAL FINANCIAL STATEMENTS; (G) IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND LOCAL EDUCATION FUNDS, THE APPLICATION SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER; AND (H) ANY OTHER INFORMATION PRESCRIBED BY THE COMMISSIONER. SUCH RECORDS SHALL BE MAINTAINED BY THE ENTITY OR ORGANIZATION FOR FIVE YEARS. S 1216. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF MAY FOR EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER, JOINTLY, SHALL SUBMIT A WRITTEN REPORT AS PROVIDED IN SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW. S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION. THE COMMISSIONER SHALL MAKE ANY FORMS REQUIRED TO BE FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE. S 3. The education law is amended by adding a new section 1503-a to read as follows: S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND DONATIONS. 1. THE TRUSTEES OR BOARDS OF EDUCATION OF ALL SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS OF A GENERAL LAW ARE HEREBY S. 6409 47 A. 9009 AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS, DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME. 2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER GENERAL OR SPECIAL LAW TO THE CONTRARY, THE RECEIPT OF SUCH GIFTS, DONATIONS AND CONTRIBUTIONS MADE PURSUANT TO ARTICLE TWENTY-FIVE OF THIS CHAPTER, AND ANY INCOME DERIVED THEREFROM, SHALL BE DISREGARDED FOR THE PURPOSES OF ALL APPORTIONMENTS, COMPUTATIONS, AND DETERMINATIONS OF STATE AID. S 4. The tax law is amended by adding a new section 42 to read as follows: S 42. EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME MEANINGS AS PROVIDED IN SECTION TWELVE HUNDRED TEN OF THE EDUCATION LAW: "AUTHORIZED CONTRIBUTION", "CONTRIBUTION", "EDUCATIONAL PROGRAM", "EDUCATIONAL SCHOLARSHIP ORGANIZATION", "ELIGIBLE PUPIL", "LOCAL EDUCA- TION FUND", "NON-PUBLIC SCHOOL", "PUBLIC EDUCATION ENTITY", "PUBLIC SCHOOL", "QUALIFIED CONTRIBUTION", "QUALIFIED SCHOOL", "SCHOLARSHIP", AND "SCHOOL IMPROVEMENT ORGANIZATION". (B) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED AN EDUCATION SCHO- LARSHIP AND PROGRAM TAX CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (1) OF THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR. (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER OF SEVENTY-FIVE PER CENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS OR ONE MILLION DOLLARS. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED ONE MILLION DOLLARS. (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING ON THE SIXTEENTH DAY OF JANUARY OF EACH YEAR, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO THIS SECTION. ADDITIONALLY, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED, ALONG WITH THE DATE OF SUCH REVOCATION. (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA- TION, THE TAXPAYER SHALL APPLY TO THE DEPARTMENT FOR A CONTRIBUTION AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT MAY ALLOW TAXPAYERS TO MAKE MULTIPLE APPLICATIONS ON THE SAME FORM, PROVIDED THAT EACH CONTRIBUTION LISTED ON SUCH APPLICATION SHALL BE TREATED AS A SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA- TION. (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1. ISSUANCE OF CERTIF- ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF- S. 6409 48 A. 9009 ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF JANUARY AND ENDS ON THE FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES, BUT SHALL NOT ISSUE ANY SUCH CERTIFICATES. COMMENCING AFTER THE SIXTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN RECEIVED DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, PHASE ONE OF THE APPLICATIONS SHALL BE ALLOCATED IN TWO STEPS. IN STEP ONE, THE CREDIT CAP SHALL BE DIVIDED BY THE NUMBER OF APPLICATIONS TO DETERMINE A BASE ALLOCATION. EACH APPLICA- TION REQUESTING THE BASE ALLOCATION OR LESS SHALL BE APPROVED. IN STEP TWO, THE REMAINING FUNDS SHALL BE CALCULATED AND ALLOCATED AMONG THE OTHER APPLICATIONS ON A DOLLAR PRO RATA BASIS. IF THE CREDIT CAP IS NOT EXCEEDED, PHASE TWO COMMENCES ON JANUARY SIXTEENTH AND ENDS ON NOVEMBER FIRST, DURING WHICH PERIOD THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST-SERVED BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLICATION FOR SUCH CERTIFICATE; PROVIDED, HOWEVER, THAT IF ON ANY DAY THE DEPARTMENT RECEIVES APPLICATIONS REQUESTING CONTRIBUTION AUTHORIZATION CERTIFICATES FOR CONTRIBUTIONS THAT IN THE AGGREGATE EXCEED THE AMOUNT OF THE REMAIN- ING AVAILABLE CREDIT ON SUCH DAY, THE AUTHORIZED CONTRIBUTION AMOUNT LISTED IN EACH CONTRIBUTION AUTHORIZATION CERTIFICATE SHALL BE THE TAXPAYER'S PRO-RATA SHARE OF THE REMAINING AVAILABLE CREDIT. FOR PURPOSES OF DETERMINING A TAXPAYER'S PRO-RATA SHARE OF REMAINING AVAIL- ABLE CREDIT, THE COMMISSIONER SHALL MULTIPLY THE AMOUNT OF REMAINING AVAILABLE CREDIT BY A FRACTION, THE NUMERATOR OF WHICH EQUALS THE TOTAL CONTRIBUTION AMOUNT LISTED ON THE TAXPAYER'S APPLICATION AND THE DENOMI- NATOR OF WHICH EQUALS THE AGGREGATE AMOUNT OF CONTRIBUTIONS LISTED ON THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES RECEIVED ON SUCH DAY. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN THE FIFTH DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN TWENTY DAYS OF RECEIPT OF SUCH APPLICATIONS. PROVIDED, HOWEVER, THAT NO CONTRIBUTION AUTHORI- ZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE ISSUED UNTIL ALL OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE HAVE BEEN ISSUED. 2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION AUTHORIZATION CERTIFICATE SHALL STATE: (I) THE DATE SUCH CERTIFICATION WAS ISSUED; (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN NOVEMBER THIRTIETH OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIF- ICATE WAS ISSUED; (III) THE TAXPAYER'S NAME AND ADDRESS; (IV) THE AMOUNT OF AUTHORIZED CONTRIBUTIONS; (V) THE CONTRIBUTION AUTHORIZATION CERTIF- ICATE'S CERTIFICATE NUMBER; (VI) THE NAME AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION; AND (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. 3. NOTIFICATION OF THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE. UPON ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE, THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA- TION FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATE TO A TAXPAYER. SUCH NOTIFICATION SHALL INCLUDE: (I) THE TAXPAYER'S NAME S. 6409 49 A. 9009 AND ADDRESS; (II) THE DATE SUCH CERTIFICATE WAS ISSUED; (III) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST BE MADE BY THE TAXPAYER; (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION; (V) CONTRIBUTION AUTHORIZATION CERTIFICATE; AND (VI) ANY OTHER INFORMA- TION THAT THE COMMISSIONER DEEMS NECESSARY. (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR ANY CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS BEEN APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA- TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS RECEIVED NOTICE FROM THE DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT AUTHORIZATION CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION. 2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER NO LATER THAN THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE MADE, SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY- ER'S CONTRIBUTION AUTHORIZATION CERTIFICATE, THE TAXPAYER SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION. 3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT SHALL STATE: (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; (II) THE TAXPAYER'S NAME AND ADDRESS; (III) THE DATE FOR EACH CONTRIBUTION; (IV) THE AMOUNT OF EACH CONTRIBUTION AND THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER; (V) THE TOTAL AMOUNT OF CONTRIBUTIONS; AND (VI) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. 4. NOTIFICATION TO THE DEPARTMENT OF THE ISSUANCE OF A CERTIFICATE OF RECEIPT. UPON THE ISSUANCE OF A CERTIFICATE OF RECEIPT, THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF THIS SECTION REGARDING THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION DATE FOR SUCH AUTHORIZED CONTRIBUTION, PROVIDE NOTIFICATION TO THE DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB- UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, S. 6409 50 A. 9009 LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF DISCOVERY OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN- IZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO COMPLY WITH THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM FUND OR ORGANIZA- TION. SUCH ENTITY, PROGRAM FUND OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM FUND OR ORGANIZATION. UPON THE EXPIRATION OF THE PERIOD FOR COMPLIANCE SET FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTI- TY, PROGRAM FUND OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION. (H) CREDIT CAP. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN AND ALL FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, AND LOCAL EDUCA- TION FUNDS SHALL BE TWENTY MILLION DOLLARS. THE MAXIMUM PERMITTED CRED- ITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN AND ALL FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SHALL BE FIFTY MILLION DOLLARS. (I) ADDITIONS TO THE CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE OF A CERTIFICATE OF RECEIPT SHALL BE ADDED TO THE CAP PRESCRIBED IN SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR. (J) OTHER REQUIREMENTS; MISCELLANEOUS. RECORD KEEPING. EACH TAXPAYER SHALL, FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT PROVIDE FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN RECORDS OF THE FOLLOWING INFORMATION: (I) CONTRIBUTION AUTHORIZATION CERTIFICATES OBTAINED PURSUANT TO SUBDIVISION (F) OF THIS SECTION, AND (II) CERTIFICATES OF RECEIPT OBTAINED PURSUANT TO SUBDIVISION (G) OF THIS SECTION. (K) JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF MAY FOR EACH CALENDAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES NINE-A AND TWENTY-TWO OF THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLICATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY (III) THE GEOGRAPH- ICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF (A) THE APPLICA- TIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES, AND (B) THE PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING GEOGRAPHICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF THE NUMBER OF ELIGIBLE PUPILS THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF S. 6409 51 A. 9009 QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOL- ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT AND THE COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT OF EDUCATION SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA- TION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE DEPARTMENT OF EDUCATION OR THE COMMISSIONER OF EDUCATION. (1) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 51; AND 2. ARTICLE 22: SECTION 606, SUBSECTION (CCC). S 5. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE TO THE EXTENT SUCH CONTRIBUTIONS ARE USED AS THE BASIS OF THE CALCU- LATION OF THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT ALLOWED UNDER SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. S 6. Section 210-B of the tax law is amended by adding a new subdivi- sion 51 to read as follows: 51. EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL 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 SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. IF THE AMOUNT OF CREDIT ALLOW- ABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 7. 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) EDUCATION SCHOLARSHIP AMOUNT OF CREDIT UNDER AND PROGRAM TAX CREDIT UNDER SUBDIVISION FIFTY-ONE OF SECTION SUBSECTION (CCC) TWO HUNDRED TEN-B S 8. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. ALLOWANCE OF CRED- IT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS ALLOWED FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S. 6409 52 A. 9009 S 9. Subsection (c) of section 615 of the tax law is amended by adding a new paragraph 9 to read as follows: (9) WITH RESPECT TO A TAXPAYER WHO HAS CLAIMED THE EDUCATION SCHOLAR- SHIP AND PROGRAM TAX CREDIT FOR QUALIFIED CONTRIBUTIONS PURSUANT TO SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAY- ER'S NEW YORK ITEMIZED DEDUCTION SHALL BE REDUCED BY ANY CHARITABLE CONTRIBUTION DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS. S 10. Section 606 of the tax law is amended by adding a new subsection (v) to read a follows: (V) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, NOT TO EXCEED TWO HUNDRED DOLLARS, THAT IS EQUAL TO THE AMOUNT PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUC- TIONAL MATERIALS AND SUPPLIES WITH RESPECT TO CLASSROOM BASED INSTRUC- TION IN A PUBLIC OR NON-PUBLIC ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE, INCLUDING A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW, PROVIDED, HOWEVER, THE TAXPAYER MUST BE A TEACHER OR INSTRUCTOR AT SUCH SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING THE TAXABLE YEAR. FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE DESIGNATED FOR CLASSROOM USE. (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. (3) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY UNDER THIS SUBSECTION SHALL BE TEN MILLION DOLLARS. IN ORDER TO CLAIM A CREDIT UNDER THIS SUBSECTION, A TAXPAYER SHALL BE REQUIRED TO APPLY TO THE DEPARTMENT FOR APPROVAL DURING THE TAXABLE YEAR. THE TAXPAYER SHALL BE REQUIRED TO SUBMIT DOCUMENTATION DEMONSTRATING THAT THE TAXPAYER IS A TEACHER OR INSTRUCTOR AS REQUIRED UNDER THIS SUBSECTION AND THAT THE TAXPAYER PURCHASED MATERIALS AND SUPPLIES. THE DEPARTMENT SHALL REVIEW THE APPLICATION AND PROVIDE A TAXPAYER WITH A CERTIFICATE THAT SPECIFIES HOW MUCH CREDIT THE TAXPAYER IS ENTITLED TO CLAIM. IF REQUIRED BY THE COMMISSIONER, THE TAXPAYER MUST SUBMIT THAT CERTIFICATE WITH HIS OR HER TAX RETURN. THE COMMISSIONER SHALL ALLOCATE THE CREDITS ON A FIRST COME FIRST SERVED BASIS AND PRESCRIBE THE NECESSARY PROCEDURES FOR REVIEWING THE APPLICATIONS AND PRODUCING THE CERTIFICATES. S 11. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CERTAIN EXPENSES OF ELIGIBLE EDUCATORS PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF SUBSECTION (A) OF SECTION SIXTY-TWO OF THE INTERNAL REVENUE CODE TO THE EXTENT SUCH EXPENSES ARE USED AS THE BASIS OF THE CALCULATION OF THE CREDIT ALLOWED UNDER SUBSECTION (V) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 12. Section 606 of the tax law is amended by adding a new subsection (w) to read as follows: (W) FAMILY CHOICE EDUCATION CREDIT. (1) GENERAL. A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH FOUR OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR QUALI- FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES. (2) DEFINITIONS. FOR THE PURPOSES OF THIS CREDIT: S. 6409 53 A. 9009 (A) THE TERM "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE TAXPAYER WITH RESPECT TO WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR. (B) THE TERM "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTEND- ANCE OF AN ELIGIBLE STUDENT AT A PUBLIC SCHOOL OR A NON-PUBLIC SCHOOL, AS DEFINED IN SECTION FORTY-TWO OF THIS CHAPTER. PROVIDED, HOWEVER, TUITION PAYMENTS MADE PURSUANT TO THE RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL AID SHALL BE EXCLUDED FROM THE DEFINITION OF "QUALIFIED PRIMA- RY OR SECONDARY EDUCATION TUITION EXPENSES". (3) ELIGIBILITY. TO BE ELIGIBLE FOR THIS CREDIT, THE NEW YORK ADJUSTED GROSS INCOME OF THE TAXPAYER FOR THE TAXABLE YEAR, OR IN THE CASE OF A MARRIED COUPLE FILING A JOINT RETURN, THE NEW YORK ADJUSTED GROSS INCOME OF THE MARRIED COUPLE FOR THE TAXABLE YEAR, MAY NOT EXCEED SIXTY THOU- SAND DOLLARS. (4) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE LESSER OF FIVE HUNDRED DOLLARS PER ELIGIBLE STUDENT OR THE ACTUAL AMOUNT OF QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER PER ELIGIBLE STUDENT DURING THE TAXABLE YEAR. (5) REFUNDABILITY. 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 CREDIT- ED 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 13. Severability. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. S 14. This act shall take effect immediately and shall apply to taxa- ble years beginning on or after January 1, 2017. PART T Section 1. The tax law is amended by adding a new section 187-t to read as follows: S 187-T. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE ALLOWED IN AN AMOUNT THAT WILL REDUCE THE TAX TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW: S. 6409 54 A. 9009 (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSI- NESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN PARAGRAPH (A) OF THIS SUBDI- VISION. (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 49 to read as follows: 49. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (A) A TAXPAYER THAT OPER- ATES A MOTOR VEHICLE, OR A FARM VEHICLE IN CONNECTION WITH FARM OPER- ATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREIN- AFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDI- VISION 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, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOW- ING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (2) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. S. 6409 55 A. 9009 SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (3) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (4) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (C)(1) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (2) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (3) A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH ONE OR TWO OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CREDIT UNDER BOTH SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH IN THE SAME TAXA- BLE YEAR. (4) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH. (D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE, OR A FARM VEHICLE IN CONNECTION WITH FARM OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRU- WAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAY- ER'S TAX FOR SUCH YEAR, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S. 6409 56 A. 9009 (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (B) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (C) "E-ZPASS INDIVIDUAL ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN AN INDIVIDUAL'S NAME. (D) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (E) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS INDIVIDUAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID AT LEAST FIFTY DOLLARS IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. (B) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMER- CIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (C) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (D) A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH (A), (B) OR (C) OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CRED- IT UNDER MORE THAN ONE SUBPARAGRAPH OF THIS PARAGRAPH IN THE SAME TAXA- BLE YEAR. (E) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. S. 6409 57 A. 9009 (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPTS RECORDS CREATED AND MAINTAINED BY THE ENTITY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT OF TAXATION AND FINANCE FOR THIS PURPOSE. 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) NEW YORK STATE AMOUNT OF CREDIT UNDER THRUWAY TOLLS TAX CREDIT SUBDIVISION FORTY-NINE OF UNDER SUBSECTION (CCC) SECTION TWO HUNDRED TEN-B S 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE, OR TWO HUNDRED FIFTY DOLLARS IF SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE IS APPLICABLE. 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 THAT TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY. (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3) (A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. S. 6409 58 A. 9009 (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 6. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. S 7. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 8. Paragraph 2 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (W) to read as follows: (W) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION (DD) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS ARTICLE. S 9. This act shall take effect immediately. PART U Section 1. Section 19 of Part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part V of chapter 59 of the laws of 2014, is amended to read as follows: S 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2016] 2021 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. S 2. This act shall take effect immediately. PART V Section 1. Section 37 of the tax law, as added by chapter 109 of the laws of 2012, subdivision (c) as amended by section 52 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S 37. [Beer] ALCOHOLIC BEVERAGE production credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chap- ter, that is registered as a distributor under article eighteen of this chapter, and that produces sixty million or fewer gallons of beer OR CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT HUNDRED THOU- S. 6409 59 A. 9009 SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall be allowed a credit against such taxes in the amount specified in subdi- vision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. Provided, however, that no credit shall be allowed for any beer, CIDER, WINE OR LIQUOR produced in excess of fifteen million five hundred thousand gallons in the taxable year. If the taxpayer is a partner in a partnership or shareholder of a New York S corporation, then the cap imposed by the preceding sentence shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed that cap. (b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state [on or after April first, two thousand twelve] shall be determined as follows: (1) for the first five hundred thousand gallons of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year, the credit shall equal fourteen cents per gallon; and (2) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year in excess of five hundred thousand gallons, the credit shall equal four and one-half cents per gallon. (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article 9-A: Section 210-B, subdivision 39. (2) Article 22: Section 606, subsections (i) and (uu). S 2. Subdivision 39 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 39. [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in para- graph (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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpay- ment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. S 3. Subdivision 3 of section 420 of the tax law, as amended by chap- ter 94 of the laws of 1934, is amended to read as follows: 3. "Alcoholic beverages" mean and include CIDERS, AS DEFINED BY THE ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors. S 4. Section 424 of the tax law is amended by adding a new subdivision 6 to read as follows: 6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE TO A CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING. S 5. Clause (xxxiv) of subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law, as amended by section 68 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S. 6409 60 A. 9009 (xxxiv) [Beer] ALCOHOLIC BEVERAGE Amount of credit production credit under under subdivision thirty-nine of subsection (uu) section two hundred ten-B S 6. Subsection (uu) of section 606 of the tax law, as added by chap- ter 109 of the laws of 2012, is amended to read as follows: (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an 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 7. Subdivision 13 of section 1118 of the tax law, as added by section 2 of part U of chapter 59 of the laws of 2015, is amended to read as follows: (13) In respect to the use of the following items at a tasting held by a licensed [brewery, farm brewery, cider producer, farm cidery, distil- lery or farm distillery] PRODUCER OF ALCOHOLIC BEVERAGES in accordance with the alcoholic beverage control law: (i) the alcoholic beverage or beverages authorized by the alcoholic beverage control law to be furnished at no charge to a customer or prospective customer at such tasting for consumption at such tasting; and (ii) bottles, corks, caps and labels used to package such alcoholic beverages. S 8. This act shall take effect immediately, provided, however, that: sections one, two, five and six of this act shall apply to taxable years beginning on or after January 1, 2016; sections three and four of this act shall apply to taxable periods beginning on or after April 1, 2016; and section seven of this act shall apply to uses occurring on and after June 1, 2016. PART W Section 1. The tax law is amended by adding a new section 478-a to read as follows: S 478-A. JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER- MINE THE AMOUNT OF SUCH TAX AND ASSESS THE SAME, TOGETHER WITH ALL INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE- FOR PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN HIS OR HER RETURN IS REQUIRED TO BE FILED. THE AMOUNT SO DETERMINED SHALL BECOME DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS NOTICE THEREOF IS GIVEN TO HIM OR HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH DETERMINATION EXCEPT TO THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE FINDS THAT JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY JEOPARDY ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSION- ER, CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THERE- ON, OR ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE ADMINISTRATIVE LAW JUDGE OR THE TAX APPEALS TRIBUNAL OR BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES AS S. 6409 61 A. 9009 PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE ASSESSMENT OR ANY SUCH REDUCTION THEREOF BECOMES FINAL AND NOT SUBJECT TO FURTHER REVIEW. IF SUCH A BOND IS FILED AND THEREAFTER A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IS COMMENCED AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, DEPOSIT OF THE TAXES, PENALTIES AND INTEREST ASSESSED SHALL NOT BE REQUIRED AS A CONDITION PRECEDENT TO THE COMMENCEMENT OF SUCH PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED, UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION TO THE DETERMINATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN EXCEPTION IS TIMELY FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE OF ITS DECISION TO THE PERSON AGAINST WHOM THE ASSESSMENT IS MADE; PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS BEEN DULY NOTIFIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE COMMISSIONER DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTE- NANCE WILL GREATLY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE. S 2. This act shall take effect immediately. PART X Section 1. Paragraph 2 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (2) Except as provided in subdivision (r) of section eleven hundred eleven of this part, when occupancy is provided, for a single consider- ation, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this article, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, the entire consideration shall be treated as rent subject to tax under para- graph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated separately from the price of such property, services, amusement charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such rent is reasonable in relation to the value of such property, services, amusement charges or other items, only such separately stated rent will be subject to tax under paragraph one of this subdivision. S 2. Section 1115 of the tax law is amended by adding a new subdivi- sion (kk) to read as follows: (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A ROOM REMARKETER FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS- SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL BE ADMINISTERED BY THE COMMISSIONER IN CONFORMITY WITH THE RULES FOR EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE. S. 6409 62 A. 9009 S 3. Paragraph 4 of subdivision a of section 11-2502 of the adminis- trative code of the city of New York, as amended by section 4 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (4) (i) When occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this chapter, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVI- SION 1 OF THIS SECTION, the entire consideration shall be treated as rent subject to tax under paragraph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated sepa- rately from the price of such property, services, amusement charges or other items on any sales slip, invoice, receipt, or other statement given the occupant and such rent is reasonable in relation to the value of such property, services, amusement charges, or other items, only such separately stated rent will be subject to tax under this subdivision. (ii) In regard to the collection of tax on occupancies by remarketers, when occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, whether or not such other items are taxable, the rent portion of the consideration for such sale shall be computed as follows: the total consideration for the sale multiplied by a fraction, the numerator of which shall be the consider- ation paid to the hotel for the occupancy and the denominator of which shall be the consideration paid to the hotel for the occupancy plus the consideration paid to the providers of the other items being sold, or by any other reasonable method pursuant to which the rent portion of consideration would be no less than the computation of rent portion of consideration under subparagraph (i) of this paragraph. Nothing herein shall be construed to subject to tax or exempt from tax any service or property or amusement charge or other items otherwise subject to tax or exempt from tax under this chapter. S 4. Section 11-2502 of the administrative code of the city of New York is amended by adding a new subdivision 1 to read as follows: 1. AN OCCUPANCY THAT AN OPERATOR CONVEYS OR FURNISHES TO A ROOM REMARKETER THAT THE ROOM REMARKETER INTENDS TO CONVEY OR FURNISH, DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS SECTION, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE. THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO THE COMMIS- SIONER OF FINANCE UPON REQUEST. S 5. This act shall take effect immediately and apply to rent paid for occupancies on or after June 1, 2016. PART Y Section 1. The section heading of section 951-a of the tax law, as added by chapter 190 of the laws of 1990, is amended to read as follows: [Definitions] GENERAL PROVISIONS AND DEFINITIONS. S 2. Section 951-a of the tax law is amended by adding a new subsection (f) to read as follows: (F) TAX TREATMENT OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI- CILE. NOTWITHSTANDING ANY OTHER PROVISION OF ANY OTHER LAW TO THE CONTRARY, THE MAKING OF A FINANCIAL CONTRIBUTION, GIFT, BEQUEST, DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN ANY AMOUNT OR THE DONATION OR LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING, GIVING OR DONATION OF UNCOMPENSATED TIME, OR ANY COMBINATION OF THE S. 6409 63 A. 9009 FOREGOING, CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, OR TO A NOT-FOR-PROFIT ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION ONE HUNDRED SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE TIME OF HIS OR HER DEATH. S 3. This act shall take effect immediately. PART Z Section 1. Subdivision 2 of section 89-b of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: 2. The dedicated highway and bridge trust fund shall consist of [two] THREE accounts: (a) the special obligation reserve and payment account; [and] (b) the highway and bridge capital account; AND (C) THE AVIATION PURPOSE ACCOUNT. Moneys in each account shall be kept separate and not commingled with any other moneys in the custody of the comptroller. S 2. Section 89-b of the state finance law is amended by adding a new subdivision 4-a to read as follows: 4-A. (A) THE AVIATION PURPOSE ACCOUNT SHALL CONSIST OF ALL MONEYS REQUIRED TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW AND ANY OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT OR SOURCE. (B) MONEYS IN THE AVIATION PURPOSE ACCOUNT SHALL BE UTILIZED FOR AIRPORTS AND AVIATION FACILITIES AND EQUIPMENT AND RELATED PROJECTS, INCLUDING BUT NOT LIMITED TO THE ACQUISITION OF REAL OR TANGIBLE PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER- VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL- ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT- ED BY FEDERAL LAW. S 3. Section 312 of the tax law, as amended by section 32 of part K of chapter 61 of the laws of 2011, is amended to read as follows: S 312. Deposit and disposition of revenue.-- (a) Except as otherwise provided, of all taxes, interest and penalties collected or received on or after April first, two thousand one, from the taxes imposed by [sections] SECTION three hundred one-a [and three hundred one-e] of this article, (i) initially eighty and three-tenths percent shall be deposit- ed, as prescribed by subdivision (d) of section three hundred one-j of this article and (ii) nineteen and seven-tenths percent shall be depos- ited in such mass transportation operating assistance fund to the credit of the metropolitan mass transportation operating assistance account and the public transportation systems operating assistance account thereof in the manner provided by subdivision eleven of section one hundred eighty-two-a of this chapter. Provided, further that on or before the twenty-fifth day of each month commencing with April, two thousand one, the comptroller shall deduct the amount of six hundred twenty-five thou- sand dollars prior to any deposit or disposition of the taxes, interest, and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall deposit such amount in the dedicated fund accounts pursuant to subdivision (d) of section three hundred one-j of this article. Provided, further, that commencing January fifteenth, nineteen hundred ninety-one, and on or before the tenth day of March and the fifteenth day of June and Septem- ber of such year, the commissioner shall, based on information supplied by taxpayers and other appropriate sources, estimate the amount of the S. 6409 64 A. 9009 utility credit authorized by section three hundred one-d of this article which has been accrued to reduce tax liability under section one hundred eighty-six-a of this chapter during the period covered by such estimate and certify to the state comptroller such estimated amount. The comp- troller shall forthwith, after receiving such certificate, deduct the amount of such credit so certified by the commissioner prior to any deposit or disposition of the taxes, interest and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall pay such amount so certified and deducted into the state treasury to the credit of the general fund. Also, subse- quently, during the fiscal year when the commissioner becomes aware of changes or modifications with respect to actual credit usage, the commissioner shall, as soon as practicable, issue a certification setting forth the amount of any required adjustment to the amount of actual credit usage previously certified. After receiving the certif- icate of the commissioner with respect to actual credit usage or modifi- cation of the same, the comptroller shall forthwith adjust general fund receipts and the revenues to be deposited or disposed of under this article to reflect the difference so certified by the commissioner. The commissioner shall not be liable for any overestimate or underestimate of the amount of the utility credit which has been accrued to reduce tax liability under such section one hundred eighty-six-a. Nor shall the commissioner be liable for any inaccuracy in any certificate with respect to the amount of such credit actually used or any required adjustment with respect to actual credit usage, but the commissioner shall as soon as practicable after discovery of any error adjust the next certification under this section to reflect any such error. Prior to making deposits as provided in this section, the comptroller shall retain such amount as the commissioner may determine to be neces- sary, subject to the approval of the director of the budget, for reason- able costs of the department in administering and collecting the taxes deposited pursuant to this section and for refunds and reimbursements with respect to such taxes, out of which the comptroller shall pay any refunds or reimbursements of such taxes to which taxpayers shall be entitled. (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E OF THIS ARTICLE SHALL BE DEPOSITED IN THE AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as amended by chapter 261 of the laws of 1988, is amended to read as follows: (1) Every distributor of motor fuel shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the author- ity of article twenty-nine of this chapter, a tax on each gallon of motor fuel (i) which he imports or causes to be imported into this state for use, distribution, storage or sale in the state or produces, refines, manufactures or compounds in this state or (ii) if the tax has not been imposed prior to its sale in this state, which he sells (which acts shall in regard to motor fuel hereinafter in this article be encom- passed by the phrase "imported, manufactured or sold"), except when imported, manufactured or sold under circumstances which preclude the collection of such tax by reason of the United States constitution and of the laws of the United States enacted pursuant thereto or when S. 6409 65 A. 9009 imported or manufactured by an organization described in paragraph one or two of subdivision (a) of section eleven hundred sixteen of this article or a hospital included in the organizations described in para- graph four of such subdivision for its own use and consumption and except kero-jet fuel when imported by an airline for use in its airplanes, AND EXCEPT AVIATION GASOLINE SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 5. Subparagraph (i) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; AND ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT; and, unless such city, county or school district elects other- wise, shall omit the provision for credit or refund contained in clause six of subdivision (a) or subdivision (d) of section eleven hundred nineteen of this chapter. S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision (a) of section 1210 of tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, are amended and a new subparagraph (xiv) is added to read as follows: (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of section eleven hundred fifteen of this chapter; AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. Any reference in this chapter or in any local law, ordinance or resolution enacted pursuant to the authority of this arti- cle to former subdivisions (n) or (p) of this section shall be deemed to be a reference to clauses (xii) or (xiii) of this paragraph, respective- ly, and any such local law, ordinance or resolution that provides the exemptions provided in such former subdivisions (n) and/or (p) shall be deemed instead to provide the exemptions provided in clauses (xii) and/or (xiii) of this paragraph. S 7. Notwithstanding any law to the contrary, the comptroller is here- by authorized and directed to transfer from the general fund for deposit into the mass transportation operating assistance fund, pursuant to section 88-a of the state finance law and the dedicated mass transporta- tion trust fund, pursuant to section 89-c of the state finance law, upon request of the director of the budget, on or before March 31 of each year, an amount equal to the amount of revenue received by the commis- sioner of taxation and finance during the state fiscal year from petro- leum business taxes imposed pursuant to the authority of section 301-e of the tax law that would have otherwise been directed to such funds S. 6409 66 A. 9009 pursuant to section 312 of the tax law as such section was in effect on the day before this act became a law. S 8. Sections one, two and seven of this act shall take effect April 1, 2017; provided however that sections three, four, five and six of this act shall take effect December 1, 2017; and provided further that if section 19 of part W1 of chapter 109 of the laws of 2006 shall have not expired on or before such date then section four of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2006 takes effect. PART AA Section 1. Subdivision 2 of section 228 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, the opening paragraph as amended by chapter 236 of the laws of 2015, is amended to read as follows: 2. The New York state gaming commission shall, as a condition of racing, require any franchised corporation and every other corporation subject to its jurisdiction to withhold one percent of all purses, except that for the franchised corporation, starting on September first, two thousand seven and continuing through August thirty-first, two thou- sand sixteen, two percent of all purses shall be withheld, and, in the case of the franchised corporation, to pay such sum to the horsemen's organization or its successor that was first entitled to receive payments pursuant to this section in accordance with rules of the commission adopted effective November third, nineteen hundred eighty- three representing at least fifty-one percent of the owners and trainers [utilizing] USING the facilities of such franchised corporation, on the condition that such horsemen's organization shall expend [as much as is necessary, but not to exceed] one-half of one percent of such total sum[,] TO CONDUCT EQUINE DRUG TESTING RESEARCH AND to acquire and main- tain the equipment required to [establish a program at a state college within this state with an approved equine science program to] test for the presence of DRUGS, INCLUDING BUT NOT LIMITED TO steroids, in horses AT A SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, provided further that the qualified organization shall also, in an amount to be determined by its board of directors, annually include in its expenditures for benevolence programs, funds to support an organization providing services necessary to backstretch employees, and, in the case of every other corporation, to pay such one percent sum of purses to the horsemen's organization or its successor that was first entitled to receive payments pursuant to this section in accordance with rules of the commission adopted effective May twenty-third, nineteen hundred eighty-six representing at least fifty-one percent of the owners and trainers [utilizing] USING the facilities of such corporation. In either case, any other horsemen's organization may apply to the [board] COMMISSION to be approved as the qualified organization to receive payment of the one percent of all purses by submitting to the [board] COMMISSION proof of both, that (i) it represents more than fifty-one percent of all the owners and trainers [utilizing] USING the same facilities and (ii) the horsemen's organization previously approved as qualified by the [board] COMMISSION does not represent fifty-one percent of all the owners and trainers [utilizing] USING the same facil- ities. If the [board] COMMISSION is satisfied that the documentation submitted with the application of any other horsemen's organization is S. 6409 67 A. 9009 conclusive with respect to items (i) and (ii) of this paragraph, it may approve the applicant as the qualified recipient organization. In the best interests of racing, upon receipt of such an application, the [board] COMMISSION may direct the payments to the previously quali- fied horsemen's organization to continue uninterrupted, or it may direct the payments to be withheld and placed in interest-bearing accounts for a period not to exceed ninety days, during which time the [board] COMMISSION shall review and approve or disapprove the application. Funds held in such manner shall be paid to the organization approved by the [board] COMMISSION. In no event shall the [board] COMMISSION accept more than one such application in any calendar year from the same horsemen's organization. The funds authorized to be paid by the [board] COMMISSION are to be used exclusively for the benefit of those horsemen racing in New York state through the administrative purposes of such qualified organiza- tion, benevolent activities on behalf of backstretch employees, and for the promotion of equine research. S 2. Section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 60 of the laws of 1993, subdivision 1 as amended by chapter 15 of the laws of 2010, and subdivision 2 as amended by chap- ter 18 of the laws of 2008, is amended to read as follows: S 902. Equine drug testing and expenses. 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a [state college within this state with an approved equine science program] SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wager- ing board] GAMING COMMISSION shall promulgate any rules and regulations necessary to implement the provisions of this section, including admin- istrative penalties of loss of purse money, fines, or denial, suspen- sion[,] or revocation of a license for racing drugged horses. 2. Notwithstanding any inconsistent provision of law, all costs and expenses of the [state racing and wagering board] GAMING COMMISSION for equine drug testing and research shall be paid from an appropriation from the state treasury, on the certification of the [chairman] CHAIR of the [state racing and wagering board] GAMING COMMISSION, upon the audit and warrant of the comptroller and pursuant to a plan developed by the [state racing and wagering board] GAMING COMMISSION as approved by the director of the budget. S 3. This act shall take effect immediately; provided, however, section two of this act shall take effect upon expiration of an existing contract with a New York state college within the state with an approved equine science program, pursuant to section 902 of the racing, pari-mu- tuel wagering and breeding law; provided that the gaming commission shall notify the legislative bill drafting commission upon the occur- rence of the enactment of the legislation provided for in section two of this act in order that the commission may maintain an accurate and time- ly effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART BB Section 1. Subdivision 1 of section 236 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: S. 6409 68 A. 9009 1. Every corporation authorized under this chapter to conduct pari-mu- tuel betting at a race meeting on races run thereat, except as provided in section two hundred thirty-eight of this article with respect to the franchised corporation, shall distribute all sums deposited in any pari- mutuel pool to the holders of winning tickets therein, providing such tickets be presented for payment before April first of the year follow- ing the year of their purchase, less an amount [which] THAT shall be established and retained by such racing corporation of between fourteen to twenty [per centum] PERCENT of the total deposits in pools resulting from regular on-track bets and less sixteen to twenty-two [per centum] PERCENT of the total deposits in pools resulting from multiple on-track bets and less twenty to thirty [per centum] PERCENT of the total depos- its in pools resulting from exotic on-track bets and less twenty to thirty-six [per centum] PERCENT of the total pools resulting from super exotic on-track bets, plus the breaks. The retention rate to be estab- lished is subject to the prior approval of the [racing and wagering board] GAMING COMMISSION. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter and breaks are hereby defined as [the odd cents over any multiple of ten, or for exotic bets over any multiple of fifty, or for super exotic bets, over any multiple of one hundred, calculated on the basis of one dollar, other- wise payable to a patron provided, however, that effective after October fifteenth, nineteen hundred ninety-four breaks are hereby defined as] the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. Of the amount so retained there shall be paid by such corpo- ration to the department of taxation and finance as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meeting held by such corporation, which tax is hereby levied, the following percentages of the total pool, plus fifty- five [per centum] PERCENT of the breaks; the applicable rates for regu- lar and multiple bets shall be one and one-half [per centum] PERCENT; the applicable rates for exotic bets shall be six and three-quarter [per centum] PERCENT and the applicable rate for super exotic bets shall be seven and three-quarter [per centum] PERCENT. Effective on and after September first, nineteen hundred ninety-four, the applicable tax rate shall be one [per centum] PERCENT of all wagers, provided that, an amount equal to one-half the difference between the taxation rate for on-track regular, multiple and exotic bets as of December thirty-first, nineteen hundred ninety-three and the rates on such on-track wagers as herein provided shall be used exclusively for purses. Provided, however, that for any twelve-month period beginning on April first in nineteen hundred ninety and any year thereafter, each of the applicable rates set forth above shall be increased by one-quarter of one [per centum] PERCENT on all on-track bets of any such racing corporation that did not expend an amount equal to at least one-half of one [per centum] PERCENT of its on-track bets during the immediately preceding calendar year for enhancements consisting of capital improvements as defined by section two hundred thirty-seven of this article, repairs to its physical plant, S. 6409 69 A. 9009 structures, and equipment used in its racing or wagering operations as certified by the [state racing and wagering board] GAMING COMMISSION to the commissioner of taxation and finance no later than eighty days after the close of such calendar year, and five special events at each track in each calendar year, not otherwise conducted in the ordinary course of business, the purpose of which shall be to encourage, attract and promote track attendance and encourage new and continued patronage, which events shall be [approved by the racing and wagering board] SUBJECT TO THE PRIOR APPROVAL OF THE GAMING COMMISSION for purposes of this subdivision. In the determination of the amounts expended for such enhancements, the [board] GAMING COMMISSION may consider the immediately preceding [twelve month] TWELVE-MONTH calendar period or the average of the two immediately preceding [twelve month] TWELVE-MONTH calendar peri- ods. Provided further, however, that of the portion of the increased amounts retained by such corporation above those amounts retained in nineteen hundred eighty-four, an amount of such increase shall be distributed to purses in the same proportion as commissions and purses were distributed during nineteen hundred eighty-four as certified by the [board] GAMING COMMISSION. Such corporation in the second zone shall receive a credit against the daily tax imposed by this subdivision in an amount equal to FOUR-TENTHS OF one [per centum] PERCENT of total daily pools resulting from the simulcast of such corporation's races to licensed facilities operated by regional off-track betting corporations in accordance with section one thousand eight of this chapter, provided however, that sixty [per centum] PERCENT of the amount of such credit shall be used exclusively to increase purses for overnight races conducted by such corporation; and, provided further, that in no event shall such total daily credit exceed FOUR-TENTHS OF one [per centum] PERCENT of the total daily pool of such corporation. [Provided, however, that on and after September first, nineteen hundred ninety-four such credit shall be four-tenths percent of total daily pools resulting from such simulcasting and that in no event shall such total daily credit equal four-tenths percent of the total daily pool of such corporation.] Such corporation shall pay to the New York state thoroughbred breeding and development fund one-half of one [per centum] PERCENT of the total daily on-track pari-mutuel pools from regular, multiple and exotic bets, and three [per centum] PERCENT of super exotic bets. The corporation shall receive credit as a reduction of the tax by the state for the privilege of conducting pari-mutuel betting for the amounts, except amounts paid from super exotic betting pools, paid to the New York state thoroughbred breeding and development fund after January first, nineteen hundred seventy-eight. Such corporation shall distribute to purses an amount equal to fifty [per centum] PERCENT of any compensation it receives from simulcasting or from wagering conducted outside the United States. Such corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari- mutuel pools of such corporation. S 2. Paragraph (d) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (d) (I) The pari-mutuel tax rate authorized by paragraph (a) of this subdivision shall be effective so long as a franchised corporation noti- fies the [racing and wagering board] GAMING COMMISSION by August fifteenth of each year that such pari-mutuel tax rate is effective of S. 6409 70 A. 9009 its intent to conduct a race meeting at Aqueduct racetrack during the months of December, January, February, March and April. For purposes of this paragraph such race meeting shall consist of not less than ninety- five days of racing. Not later than May first of each year that such pari-mutuel tax rate is effective, the [racing and wagering board] GAMING COMMISSION shall determine whether a race meeting at Aqueduct racetrack consisted of the number of days as required by this paragraph. In determining the number of race days, cancellation of a race day because of an act of God[, which] THAT the [racing and wagering board] GAMING COMMISSION approves or because of weather conditions that are unsafe or hazardous which the [racing and wagering board] GAMING COMMIS- SION approves shall not be construed as a failure to conduct a race day. Additionally, cancellation of a race day because of circumstances beyond the control of such franchised corporation for which the [racing and wagering board] GAMING COMMISSION gives approval shall not be construed as a failure to conduct a race day. If the [racing and wagering board] GAMING COMMISSION determines that the number of days of racing as required by this paragraph have not occurred then the pari-mutuel tax rate in paragraph (a) of this subdivision shall revert to the pari-mutu- el tax rates in effect prior to January first, nineteen hundred ninety- five. (II) Such franchised corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari-mutuel pools of such franchised corporation. S 3. Paragraph d of subdivision 1 of section 318 of the racing, pari- mutuel wagering and breeding law, as amended by section 3 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. Every harness racing association or corporation shall pay to the [board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily on-track pari-mutuel pools of such association or corporation. S 4. The opening paragraph and the opening paragraph of subdivision 1 of section 527 of the racing, pari-mutuel wagering and breeding law, the opening paragraph as amended by chapter 18 of the laws of 2008 and the opening paragraph of subdivision 1 as amended by chapter 300 of the laws of 2015, are amended to read as follows: Each regional corporation conducting off-track betting shall distrib- ute all sums deposited in any pari-mutuel pool through such corporation to the holders of winning tickets therein, providing such tickets be presented for payment prior to April first of the year following the year of their purchase, less an amount [which] THAT it shall retain at the same rate established by the track accepting wagers from each such regional corporation. The disposition of the retained commission from pools resulting from regular, multiple or exotic bets, as the case may be, whether placed on races run within a region or outside a region, conducted by racing corporations, harness racing associations or corporations, quarter horse racing associations or corporations or races run outside the state shall be governed by the tables in paragraphs a and b of this subdivision. The rate denominated "state tax" shall represent the rate of a reasonable tax imposed upon the retained commission for the privilege of conducting off-track pari-mutuel betting, which tax is hereby levied and shall be payable in the manner set forth in this section. Each off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] S. 6409 71 A. 9009 SIX-TENTHS of one percent of the total daily pools of such corporation. Each corporation shall also pay twenty [per centum] PERCENT of the breaks derived from bets on harness races and fifty [per centum] PERCENT of the breaks derived from bets on all other races to the agriculture and New York State horse breeding and development fund and to the thoroughbred breeding and development fund, the total of such payments to be apportioned fifty [per centum] PERCENT to each such fund. For the purposes of this section, the New York city, Suffolk, Nassau, and the Catskill regions shall constitute a single region and any thoroughbred track located within the Capital District region shall be deemed to be within such single region. A "regional meeting" shall refer to either harness or thoroughbred meetings, or both, except that a franchised corporation shall not be a regional track for the purpose of receiving distributions from bets on thoroughbred races conducted by a thorough- bred track in the Catskill region conducting a mixed meeting. With the exception of a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Tioga or Saratoga county after January first, two thousand five, racing corporations first licensed to conduct pari-mutuel racing after January first, nineteen hundred eighty-six or a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Genesee County after January first, two thousand five, and quarter horse tracks shall not be "regional tracks"; if there is more than one harness track within a region, such tracks shall evenly divide payments made pursuant to the tables in paragraphs a and b of this subdivision when neither track is running. In the event a track elects to reduce its retained percentage from any or all of its pari-mutuel pools, the payments to the track holding the race and the regional track required by paragraphs a and b of this subdivision shall be reduced in proportion to such reduction. Nothing in this section shall be construed to authorize the conduct of off-track betting contrary to the provisions of section five hundred twenty-three of this article. S 5. Paragraph a of subdivision 1 of section 904 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, are amended to read as follows: a. The applicable state tax provided for in paragraphs a and b of subdivision one of section five hundred twenty-seven of this chapter shall be one-half [per centum] PERCENT for regular, multiple and exotic bets. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 6. Paragraph g of subdivision 3 of section 1007 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: g. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 7. Paragraph b of subdivision 3 of section 1008 of the racing, pari- mutuel wagering and breeding law, as amended by section 7 of part B of chapter 59 of the laws of 2005, is amended to read as follows: b. Of the sums received by the sending track, fifty percent shall be distributed to purses in addition to moneys distributed pursuant to S. 6409 72 A. 9009 section five hundred twenty-seven of this chapter. The off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S 8. Paragraph d of subdivision 4 of section 1009 of the racing, pari- mutuel wagering and breeding law, as amended by section 8 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. The operator shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S 9. Subparagraph (iv) of paragraph i of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (iv) Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 10. Paragraph e of subdivision 3 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: e. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 11. Clause (B) of subparagraph 2 of paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (B) Any harness racing or association or corporation or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 12. Paragraph b of subdivision 2 of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: b. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 13. Paragraph 2 of subdivision b of section 1612 of the tax law, as amended by section 1 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: 2. As consideration for the operation of a video lottery gaming facil- ity, the division, shall cause the investment in the racing industry of a portion of the vendor fee received pursuant to paragraph one of this subdivision in the manner set forth in this subdivision. With the exception of Aqueduct racetrack or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, each such track shall dedicate a portion of its vendor fees, received pursu- ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, for the purpose of enhancing purs- S. 6409 73 A. 9009 es at such track, in an amount equal to eight and three-quarters percent of the total revenue wagered at the vendor track after [pay out] PAYOUT for prizes. One AND SIX-TENTHS percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to the gaming commission to be used exclusively to promote and ensure equine health and safety in New York. Any portion of such funding to the gaming commission unused during a fiscal year shall be returned to the video lottery gaming operators on a pro rata basis in accordance with the amounts originally contributed by each operator and shall be used for the purpose of enhancing purses at such track. One and one-half percent of the gross purse enhancement amount at a thoroughbred track, as required by this subdivision, shall be paid to an account established pursuant to section two hundred twenty-one-a of the racing, pari-mutuel wagering and breeding law to be used exclusively to provide health insurance for jockeys. In addition, with the exception of Aqueduct race- track or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, one and one-quarter percent of total revenue wagered at the vendor track after [pay out] PAYOUT for prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, shall be distributed to the appropriate breeding fund for the manner of racing conducted by such track. Provided, further, that nothing in this paragraph shall prevent each track from entering into an agreement, not to exceed five years, with the organization authorized to represent its horsemen to increase or decrease the portion of its vendor fee dedicated to enhancing purses at such track during the years of participation by such track, or to race fewer dates than required herein. S 14. Paragraph 1 of subdivision f of section 1612 of the tax law, as amended by section 2 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: 1. [Six] SEVEN and one-half percent of the total wagered after payout of prizes for the [first year of] operation of video lottery gaming at Aqueduct racetrack, [seven percent of the total wagered after payout of prizes for the second year of operation, and seven and one-half percent of the total wagered after payout of prizes for the third year of opera- tion and thereafter,] for the purpose of enhancing purses at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course. One AND SIX-TENTHS percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to the gaming commission to be used exclusively to promote and ensure equine health and safety in New York. Any portion of such funding to the gaming commission unused during a fiscal year shall be returned on a pro rata basis in accordance with the amounts originally contributed and shall be used for the purpose of enhancing purses at such tracks. One and one-half percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to an account established pursuant to section two hundred twenty-one-a of the racing, pari-mutuel wagering and breeding law to be used exclu- sively to provide health insurance for jockeys. S 15. This act shall take effect immediately. PART CC S. 6409 74 A. 9009 Section 1. Section 308 of the racing, pari-mutuel wagering and breed- ing law, as amended by section 1 of part Y of chapter 58 of the laws of 2012, is amended to read as follows: S 308. Officials at harness horse race meetings. 1. At all harness race meetings licensed by the [state racing and wagering board] GAMING COMMISSION in accordance with the provisions of sections two hundred twenty-two through seven hundred five of this chapter qualified judges and starters shall be designated by the [state racing and wagering board] GAMING COMMISSION. Such officials shall enforce the rules and regulations of the [state racing and wagering board] GAMING COMMISSION and shall render regular written reports of the activities and conduct of such race meetings to the [state racing and wagering board] GAMING COMMISSION. 2. The licensed racing corporations shall reimburse the [state racing and wagering board] GAMING COMMISSION for the per diem cost to the [board] COMMISSION to employ one associate judge and the starter to serve at harness race meetings. The [board] COMMISSION shall notify EACH such licensed racing [corporations] CORPORATION of the per diem cost of the associate judge and the starter [prior to the beginning] AT THE TRACK OF SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END of each month. Payment of the reimbursement required by this section shall be made to the [board] COMMISSION by each entity required to make such payments [on the last business day of each month] WITHIN THIRTY DAYS OF SUCH NOTIFICATION BY THE COMMISSION and shall cover all the costs incurred during that month. A penalty of five percent of payment due, and interest at the rate of one percent per month calculated from such [last day of each month] DATE THAT PAYMENT IS DUE to the date of the payment of the per diem cost shall be payable in case any per diem cost imposed by this subdivision is not paid when due. The [board] COMMISSION shall promulgate rules and regulations to ensure the proper reimbursement of such costs. 3. The [board] COMMISSION shall pay into the racing regulation account, as defined in section ninety-nine-i of the state finance law, under the joint custody of the comptroller and the [board] COMMISSION, the total amount of the reimbursements collected pursuant to this section. With the approval of the director of the budget, monies [utilized] USED to pay the costs and expenses of the operations of the [board] COMMISSION shall be paid out of such account on the audit and warrant of the comptroller on vouchers, certified and approved by the director of the division of the budget or his or her duly designated official. 4. Any associate judge and starter whose per diem costs are reimbursed by a licensed racing corporation shall remain employees of the [state racing and wagering board] GAMING COMMISSION and shall retain all the rights and privileges of their current civil service jurisdictional classification and status and collective bargaining unit representation. S 2. This act shall take effect immediately. PART DD Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law is amended by adding a new clause (G-2) to read as follows: (G-2) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND S. 6409 75 A. 9009 BREEDING LAW AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK RETAINED BY THE COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES; AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO THE VENDOR TRACK PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN SENECA OR WAYNE COUNTIES PURSUANT TO SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA OR WAYNE COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF- ICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION SET FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON THE CALCU- LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART EE Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part WW of chapter 59 of the laws of 2015, is amended to read as follows: (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- agraph, when a vendor track, is located in Sullivan county and within sixty miles from any gaming facility in a contiguous state such vendor fee shall, for a period of [eight] NINE years commencing April first, two thousand eight, be at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, after which time such rate shall be as for all tracks in clause (C) of this subparagraph. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART FF Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- S. 6409 76 A. 9009 cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [sixteen] SEVENTEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [sixteen] SEVENTEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [sixteen] SEVENTEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that S. 6409 77 A. 9009 would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. S 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [sixteen] SEVENTEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [sixteen] SEVENTEEN. This section shall super- sede all inconsistent provisions of this chapter. S 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: S 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S. 6409 78 A. 9009 Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [fifteen] SIXTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. S 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2016] 2017; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. S 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2016] 2017; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. S 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the S. 6409 79 A. 9009 total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such payment shall be seven-tenths of one per centum of such pools. S 10. This act shall take effect immediately. PART GG Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part MM of chapter 59 of the laws of 2015, is amended to read as follows: (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of this subparagraph, the track operator of a vendor track shall be eligi- ble for a vendor's capital award of up to four percent of the total S. 6409 80 A. 9009 revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which shall be used exclusively for capital project investments to improve the facilities of the vendor track which promote or encourage increased attendance at the video lottery gaming facility including, but not limited to hotels, other lodging facilities, enter- tainment facilities, retail facilities, dining facilities, events arenas, parking garages and other improvements that enhance facility amenities; provided that such capital investments shall be approved by the division, in consultation with the state racing and wagering board, and that such vendor track demonstrates that such capital expenditures will increase patronage at such vendor track's facilities and increase the amount of revenue generated to support state education programs. The annual amount of such vendor's capital awards that a vendor track shall be eligible to receive shall be limited to two million five hundred thousand dollars, except for Aqueduct racetrack, for which there shall be no vendor's capital awards. Except for tracks having less than one thousand one hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, each track operator shall be required to co-invest an amount of capital expenditure equal to its cumulative vendor's capital award. For all tracks, except for Aqueduct racetrack, the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand [sixteen] SEVENTEEN. Any amount attributable to a capital expenditure approved prior to April first, two thousand [sixteen]SEVENTEEN and completed before April first, two thousand [eigh- teen] NINETEEN; or approved prior to April first, two thousand [twenty] TWENTY-ONE and completed before April first, two thousand [twenty-two] TWENTY-THREE for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligi- ble to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the division prior to April first, two thousand [sixteen] SEVENTEEN and completed prior to April first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumu- lative capital award during the five year period ending April first, two thousand [sixteen] SEVENTEEN, the vendor shall continue to receive the capital award after April first, two thousand [sixteen] SEVENTEEN until such approved capital expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph be eligible for a vendor's capital award under this section. Any opera- tor of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with generally accepted accounting principles, shall reim- burse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand [sixteen] SEVENTEEN shall be deposited into the state lottery fund for education aid; and S 2. This act shall take effect immediately. PART HH Section 1. Paragraph b of subdivision 3 of section 97-nnnn of the state finance law, as added by chapter 174 of the laws of 2013, is amended to read as follows: S. 6409 81 A. 9009 b. ten percent of the moneys in such fund, AS ATTRIBUTABLE TO A SPECIFIC LICENSED GAMING FACILITY, shall be appropriated or transferred from the commercial gaming revenue fund equally between the host munici- pality and host county OF SUCH FACILITY. S 2. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by chapter 174 of the laws of 2013, is amended to read as follows: (G) Notwithstanding any provision to the contrary, when a vendor track is located within regions one, two, or five of development zone two as defined by section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law, such vendor track shall receive an additional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, WHICH PERCENTAGE SHALL BE ONE HUNDRED, less [ten percent] THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained by the commission for operation, administration, and procurement purposes; and [payment of] the vendor's fee, marketing allowance[,] and capital award paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax rate paid on all gross gaming revenue paid by a gaming facility within the same region pursuant to section thirteen hundred fifty-one of the racing, pari-mutuel wagering and breeding law, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME REGION IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. The additional commission SET FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through HH of this act shall be as specifically set forth in the last section of such Parts.
2015-A9009A - Details
- See Senate Version of this Bill:
- S6409
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2015-A9009A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year; amends the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit (Part A); intentionally omitted (Part B); intentionally omitted (Part C)
2015-A9009A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 6409--A A. 9009--A S E N A T E - A S S E M B L Y January 14, 2016 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit, and to repeal subdivision 5 of section 520 of the real property tax law relating thereto (Part A); to amend the real property tax law, in relation to the maximum amount of tax savings allowable under the STAR program (Part B); to amend the real property tax law in relation to making the income verification program mandatory (Part C); to amend the real property tax law, in relation to allowing applications for exemptions to be filed after the taxable status date in certain cases (Part D); to amend the tax law and the administrative code of the city of New York, in relation to establish- ing a new school tax reduction credit for residents of a city with a population over one million (Part E); to amend the real property tax law, in relation to authorizing the commissioner of taxation and finance to make direct payments of STAR tax savings to property owners in certain cases (Part F); to amend the tax law, in relation to making permanent, provisions relating to mandatory electronic filing of tax documents, improving sales tax compliance and updating tax preparer penalties; to amend chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness there- of; and to repeal certain provisions of the tax law and the adminis- trative code of the city of New York relating thereto (Part G); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part H); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part I); to amend EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-02-6 S. 6409--A 2 A. 9009--A the tax law, in relation to extending the empire state commercial production tax credit (Part J); to amend chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disabilities, in relation to extending the expiration of such provision (Part K); to amend part I of chapter 58 of the laws of 2006, amending the tax law relating to providing an enhanced earned income tax credit, in relation to making the enhanced earned income tax credit permanent (Part L); to amend part N of chapter 61 of the laws of 2005 amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to permanently extending the disclosure and penalty provisions for transactions that present the potential for tax avoidance (Part M); to amend the tax law, in relation to extending the clean heating fuel credit for three years and updating the credit to reflect new minimum biodiesel fuel thresh- olds (Part N); to amend the economic development law and the tax law, in relation to extending the excelsior jobs program for five years (Part O); to amend the tax law and the administrative code of the City of New York in relation to making corrections to the corporate tax reform provisions (Part P); to amend the tax law and the administra- tive code of the city of New York, in relation to the time for filing reports (Part Q); to amend the tax law and the administrative code of the city of New York, in relation to the business income base rate and expanding the small business subtraction modification (Part R); to amend the education law and the tax law, in relation to enacting the "parental choice in education act" (Part S); to amend the tax law, in relation to establishing a tax credit for New York state thruway tolls (Part T); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part U); to amend the tax law, in relation to exempting from alcoholic beverage tax certain alcoholic beverages furnished at no charge by certain licensees to customers or prospective customers at a tasting held in accordance with the alcoholic beverage control law, and to expand the beer production credit to include wine, liquor and cider (Part V); to amend the tax law, in relation to authorizing jeopardy assessments on cigarette and tobacco product taxes assessed under article 20 thereof (Part W); to amend the tax law and the admin- istrative code of the city of New York, in relation to allowing room remarketers to purchase occupancies from hotel operators exempt from sales tax under certain circumstances (Part X); to amend the tax law, in relation to charitable contributions and charitable activities being considered in determining domicile for estate tax purposes (Part Y); to amend the state finance law, in relation to creating the aviation purpose account and ensuring that the funds deposited in the aviation purpose account are used for airport improvement projects; to amend the tax law, in relation to provide for the distribution of revenues under section 301-e of such law; to exempt sales of fuel sold for use in commercial aircraft and general aviation aircraft from the prepayment of sales tax imposed pursuant to the authority of section 1102(a) (1) (ii) of such law; and to exclude sales of fuel sold for use in commercial aircraft and general aviation aircraft from the operation of sales and use taxes imposed pursuant to the authority of section 1210(a) of such law (Part Z); to amend the racing, pari-mutuel wagering and breeding law, in relation to equine lab testing provider S. 6409--A 3 A. 9009--A restrictions removal (Part AA); to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to reducing purse amounts paid from the VLT program and to increasing racing regu- latory fee (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the timing of harness track reimburse- ments and other technical amendments (Part CC); to amend the tax law, in relation to the payment of vendors' fees (Part DD); to amend the tax law, in relation to vendor fees at vendor tracks (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simul- cast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mu- tuel wagering and breeding law and other laws relating to simulcast- ing; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provision thereof; and to amend the racing, pari-mu- tuel and breeding law, in relation to extending certain provisions thereof (Part FF); to amend the tax law, in relation to capital awards to vendor tracks (Part GG); and to amend the state finance law, in relation to allocations from the commercial gaming revenue fund; to amend the tax law, in relation to commissions payable to certain vendor racetracks (Part HH); to amend the tax law, in relation to further clarifying disclosure procedures regarding medical marihuana (Part II); to amend the real property tax law, in relation to STAR recoupment program (Part JJ); and to amend the tax law and the state finance law, in relation to the fees associated with a certificate of registration and decal imposed by article 21 of the tax law for certain vehicles operating on public highways in New York state (Part KK) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year. Each component is wholly contained within a Part identified as Parts A through KK. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Paragraph (a) of subdivision 6 of section 425 of the real property tax law, as amended by chapter 6 of the laws of 2010, and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (a) Generally. All owners of the property who primarily reside thereon AND WHO ARE NOT SUBJECT TO THE PROVISIONS OF SUBDIVISION SIXTEEN OF THIS S. 6409--A 4 A. 9009--A SECTION must jointly file an application for exemption with the assessor on or before the appropriate taxable status date. Such application may be filed by mail if it is enclosed in a postpaid envelope properly addressed to the appropriate assessor, deposited in a post office or official depository under the exclusive care of the United States postal service, and postmarked by the United States postal service on or before the applicable taxable status date. Each such application shall be made on a form prescribed by the commissioner, which shall require the appli- cant or applicants to agree to notify the assessor if their primary residence changes while their property is receiving the exemption. The assessor may request that proof of residency be submitted with the application. If the applicant requests a receipt from the assessor as proof of submission of the application, the assessor shall provide such receipt. If such request is made by other than personal request, the applicant shall provide the assessor with a self-addressed postpaid envelope in which to mail the receipt. S 2. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: 16. TRANSITION TO PERSONAL INCOME TAX CREDIT. (A) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, NO APPLICATION FOR AN EXEMPTION UNDER THIS SECTION MAY BE FILED OR APPROVED UNLESS AT LEAST ONE OF THE APPLICANTS HELD TITLE TO THE PROPERTY ON THE TAXABLE STATUS DATE OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND THE PROPERTY WAS GRANTED AN EXEMPTION PURSUANT TO THIS SECTION ON THAT ASSESSMENT ROLL. IN THE EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLICANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT, IN LIEU OF A STAR EXEMPTION, THE APPLICANT MAY CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE APPLI- CANT MAY CONTACT THE DEPARTMENT OF TAXATION AND FINANCE FOR FURTHER INFORMATION. THE COMMISSIONER SHALL PROVIDE A FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICATION. NO STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. (B) IF THE OWNERS OF A PARCEL THAT IS RECEIVING THE STAR EXEMPTION AUTHORIZED BY THIS SECTION WANT TO CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN LIEU OF SUCH EXEMPTION, THEY ALL MUST RENOUNCE THAT EXEMPTION IN THE MANNER PROVIDED BY SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAPTER, AND MUST PAY ANY REQUIRED TAXES, INTEREST AND PENALTIES, ON OR BEFORE DECEM- BER THIRTY-FIRST OF THE TAXABLE YEAR FOR WHICH THEY WANT TO CLAIM THE CREDIT. ANY SUCH RENUNCIATION SHALL BE IRREVOCABLE. (C) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL APPLICATIONS FOR STAR EXEMPTIONS BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, INCLUDING THOSE SUBMITTED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION. IF ANY APPLICATION WAS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION THAT IS NOT APPROVABLE HEREUNDER, SUCH APPROVAL SHALL BE DEEMED VOID, AND THE ASSESSOR SHALL PROVIDE THE APPLICANT WITH THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION. S 3. Subdivision 2 of section 496 of the real property tax law, as added by section 3 of part N of chapter 58 of the laws of 2011, is amended to read as follows: S. 6409--A 5 A. 9009--A 2. An application to renounce an exemption shall be made on a form prescribed by the commissioner and shall be filed with the county direc- tor of real property tax services no later than ten years after the levy of taxes upon the assessment roll on which the renounced exemption appears. The county director, after consulting with the assessor as appropriate, shall compute the total amount owed on account of the renounced exemption as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be appli- cable for each month or portion thereon since the levy of taxes upon such assessment roll. (b) The sum of the calculations made pursuant to paragraph (a) of this subdivision with respect to all of the assessment rolls in question shall be determined. (c) A processing fee of five hundred dollars shall be added to the sum determined pursuant to paragraph (b) of this subdivision, UNLESS THE PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION ARE APPLICABLE. (D) IF THE APPLICANT IS RENOUNCING A STAR EXEMPTION IN ORDER TO QUALI- FY FOR THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, AND NO OTHER EXEMPTIONS ARE BEING RENOUNCED ON THE SAME APPLICATION, NO PROCESSING FEE SHALL BE APPLICABLE. S 4. Subdivision 3 of section 520 of the real property tax law, as added by chapter 635 of the laws of 1978, is amended to read as follows: 3. For purposes of any fiscal year or years during which title to such property is transferred, such property shall be deemed to have been omitted and the assessed value thereof shall be entered on the assess- ment roll to be used for the next tax levy by or for each municipal corporation in which such property is located in the same manner as provided by title three of article five of this chapter with respect to a parcel omitted from the assessment roll of the previous year. A pro rata tax shall be extended against the property for the unexpired portion of each fiscal year. Such real property shall be taxed at the tax rate or tax rates for the fiscal year during which the transfer occurred. The amount of tax or taxes levied pursuant to this subdivi- sion shall be deducted from the aggregate amount of taxes to be levied for the fiscal year immediately succeeding the fiscal year during which the transfer occurred; PROVIDED, HOWEVER, THAT WHERE THE PROPERTY IS RECEIVING A SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, THE PORTION OF THE TAX OR TAXES LEVIED THAT EQUALS THE RECOVERED STAR TAX SAVINGS SHALL BE APPLIED TO REDUCE THE AMOUNT OF AID PAYABLE TO THE SCHOOL DISTRICT UNDER SUBDI- VISION THREE OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. S 5. Subdivision 5 of section 520 of the real property tax law is REPEALED. S 6. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX RELIEF (STAR) CREDIT. (1) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION: (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE, WHO MAINTAINED HIS OR HER PRIMARY RESIDENCE IN THIS STATE ON DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, WHO WAS AN OWNER OF THAT PROPERTY ON THAT DATE, WHO CANNOT RECEIVE THE STAR EXEMPTION ON THAT PROPERTY EITHER S. 6409--A 6 A. 9009--A BECAUSE (I) HE OR SHE IS PRECLUDED FROM FILING AN APPLICATION FOR THE STAR EXEMPTION ON THAT PROPERTY PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, OR BECAUSE (II) HE OR SHE HAS IRREVOCABLY RENOUNCED HIS OR HER CLAIM TO SUCH EXEMPTION IN CONJUNCTION WITH ALL OTHER OWNERS PURSUANT TO PARAGRAPH (B) OF SUCH SUBDIVISION, AND WHO IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE. (B) "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON AS OF DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMA- RILY THEREON AS OF SUCH DATE; PROVIDED THAT THE INCOME TO BE SO COMBINED SHALL BE THE "ADJUSTED GROSS INCOME" FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME TAX PURPOSES, OR THAT WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED, REDUCED BY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY. (C) "ASSOCIATED FISCAL YEAR" MEANS THE SCHOOL DISTRICT FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE CITY FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR. (D) "OWNER" MEANS: (I) A PERSON WHO OWNS A PARCEL IN FEE SIMPLE ABSOLUTE OR AS A TENANT IN COMMON, A JOINT TENANT OR A TENANT BY THE ENTIRETY, (II) AN OWNER OF A PRESENT INTEREST IN A PARCEL UNDER A LIFE ESTATE, (III) A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF SALE, (IV) A BENEFICIAL OWNER UNDER A TRUST, (V) A TENANT-STOCKHOLDER OF A COOPERATIVE APARTMENT CORPORATION WHO RESIDES IN A PORTION OF REAL PROPERTY OWNED BY SUCH COOPERATIVE APART- MENT CORPORATION, TO THE EXTENT REPRESENTED BY HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION AS DETERMINED BY ITS OR THEIR PROPORTIONAL RELATIONSHIP TO THE TOTAL OUTSTANDING STOCK OF THE CORPO- RATION, INCLUDING THAT OWNED BY THE CORPORATION, (VI) A RESIDENT OF A FARM DWELLING THAT IS OWNED EITHER BY A CORPO- RATION OF WHICH THE RESIDENT IS A SHAREHOLDER, A PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, OR BY A LIMITED LIABILITY COMPANY OF WHICH THE RESIDENT IS AN OWNER, OR (VII) A RESIDENT OF A DWELLING, OTHER THAN A FARM DWELLING, THAT IS OWNED BY A LIMITED PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, PROVIDED THAT THE LIMITED PARTNERSHIP THAT HOLDS TITLE TO THE PROPERTY DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, THAT THE LIMITED PARTNERSHIP WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES, AND THAT THE PARTNER OR PARTNERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF THE REAL PROPERTY TAXES AND OTHER COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP. (E) "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR; OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. IN NO CASE SHALL THE TERM "QUALIFYING TAXES" BE CONSTRUED TO INCLUDE PENALTIES OR INTEREST. S. 6409--A 7 A. 9009--A (F) "STAR EXEMPTION" MEANS THE SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (G) "STAR TAX SAVINGS" MEANS THE TAX SAVING ATTRIBUTABLE TO THE STAR EXEMPTION WITHIN A PORTION OF A SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THE REAL PROPERTY TAX LAW. (H) "STAR TAX SAVINGS FIGURE" MEANS THE AVERAGE OF THE STAR TAX SAVINGS IN THE VARIOUS PORTIONS OF A SCHOOL DISTRICT IN THE ASSOCIATED FISCAL YEAR, AS DETERMINED BY THE COMMISSIONER. TWO STAR TAX SAVINGS FIGURES SHALL BE DETERMINED FOR EACH SCHOOL DISTRICT, ONE RELATING TO THE BASIC STAR EXEMPTION, AND THE OTHER RELATING TO THE ENHANCED STAR EXEMPTION. (2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED- IT AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER- EST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST. (3) DETERMINATION OF BASIC STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, A BASIC STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER IF THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO FIVE HUNDRED THOUSAND DOLLARS. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH BASIC STAR CREDIT SHALL BE THE LESSER OF: (I) THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR (II) THE TAXPAYER'S QUALIFYING TAXES. (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (4) DETERMINATION OF ENHANCED STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, AN ENHANCED STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER WHERE BOTH OF THE FOLLOWING CONDITIONS ARE SATISFIED: (I) ALL OF THE OWNERS OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE ARE AT LEAST SIXTY-FIVE YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE OR BY SIBLINGS, AT LEAST ONE OF THE OWNERS IS AT LEAST SIXTY-FIVE YEARS OF AGE AS OF THAT DATE. THE TERMS "SIBLINGS" AS USED HEREIN SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, THE CREDIT, ONCE ALLOWED, SHALL NOT BE DISALLOWED BECAUSE OF THE DEATH OF S. 6409--A 8 A. 9009--A THE OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR. (II) THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO THE INCOME STANDARD FOR THE TAXABLE YEAR ESTABLISHED BY THE COMMISSIONER FOR THE CORRESPONDING "INCOME TAX YEAR" PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH (I) OF PARA- GRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW FOR PURPOSES OF THE ENHANCED STAR EXEMPTION. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH CREDIT SHALL BE THE LESSER OF: (I) THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR (II) THE TAXPAYER'S QUALIFYING TAXES. (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (5) DISQUALIFICATION. A TAXPAYER SHALL NOT QUALIFY FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IF THE PARCEL THAT SERVES AS THE TAXPAY- ER'S PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION ON THE ASSESSMENT ROLL UPON WHICH SCHOOL DISTRICT TAXES FOR THE ASSOCIATED FISCAL YEAR WHERE LEVIED. PROVIDED, HOWEVER, THAT THE TAXPAYER MAY REMOVE THIS DISQUALIFICATION BY RENOUNCING THE EXEMPTION AND MAKING ANY REQUIRED PAYMENTS BY DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR, AS PROVIDED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (6) SPECIAL CASES. (A) IN THE CASE OF PROPERTY CONSISTING OF A COOPER- ATIVE APARTMENT CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO SIXTY PERCENT OF THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR SIXTY PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, WHICHEVER IS APPLICABLE. PROVIDED, HOWEVER, THAT IN THE CASE OF A COOPERATIVE APARTMENT CORPO- RATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO TWENTY PERCENT OF SUCH FIGURE. (B) IN THE CASE OF PROPERTY CONSISTING OF A MOBILE HOME THAT IS DESCRIBED IN PARAGRAPH (1) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO SUCH MOBILE HOME SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR TWENTY-FIVE PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, WHICHEVER IS APPLICABLE. (C) IN THE CASE OF A PRIMARY RESIDENCE THAT IS LOCATED IN TWO OR MORE SCHOOL DISTRICTS, THE APPLICABLE BASIC OR ENHANCED STAR TAX SAVINGS FIGURE SHALL BE DETERMINED AS FOLLOWS: (I) DETERMINE THE SUM OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR BY EACH OF THE SCHOOL DISTRICTS IN WHICH THE RESIDENCE IS LOCATED; S. 6409--A 9 A. 9009--A (II) FOR EACH SUCH SCHOOL DISTRICT, DIVIDE THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE BY THAT SCHOOL DISTRICT FOR THE ASSOCIATED FISCAL YEAR BY THE SUM DETERMINED IN CLAUSE (I) OF THIS SUBPARAGRAPH. EXPRESS THE RESULT AS A PERCENTAGE WITH TWO DECIMAL PLACES; (III) FOR EACH SUCH SCHOOL DISTRICT, MULTIPLY THE PERCENTAGE DETER- MINED IN CLAUSE (II) OF THIS SUBPARAGRAPH BY THE BASIC OR ENHANCED STAR TAX SAVINGS FIGURE, WHICHEVER IS APPLICABLE; AND (IV) ADD THE PRODUCTS DETERMINED IN CLAUSE (III) OF THIS SUBPARAGRAPH. (7) DISCLOSURE OF INCOMES. WHERE THE COMMISSIONER HAS DENIED A TAXPAY- ER'S CLAIM FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IN WHOLE OR IN PART ON THE GROUNDS THAT THE AFFILIATED INCOME OF THE PARCEL IN QUESTION EXCEEDS THE APPLICABLE LIMIT, THE COMMISSIONER SHALL HAVE THE AUTHORITY TO REVEAL TO THAT TAXPAYER THE NAMES AND INCOMES OF THE OTHER TAXPAYERS WHOSE INCOMES WERE INCLUDED IN THE COMPUTATION OF SUCH AFFILIATED INCOME. (8) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION: AFFILIATED INCOME, THE TOTAL SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY- TWO OF THE EDUCATION LAW, THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR, THE QUALI- FYING TAXES PAID BY THE TAXPAYER, THE NAMES AND TAXPAYER IDENTIFICATION NUMBERS OF ALL OWNERS OF THE PROPERTY AND SPOUSES WHO PRIMARILY RESIDE ON THE PROPERTY, THE PARCEL IDENTIFICATION NUMBER AND ALL OTHER INFORMA- TION THAT MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT. (9) RETURNS. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE YEARS FROM THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSUANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN SUCH FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHO SHALL MAKE AVAILABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS. (10) ADMINISTRATION. THE PROVISIONS OF THIS ARTICLE, INCLUDING THE PROVISIONS OF SECTIONS SIX HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, AND SIX HUNDRED FIFTY-NINE OF THIS ARTICLE AND THE PROVISIONS OF PART SIX OF THIS ARTICLE RELATING TO PROCEDURE AND ADMINISTRATION, INCLUDING THE JUDICIAL REVIEW OF THE DECISIONS OF THE COMMISSIONER, EXCEPT SO MUCH OF SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE THAT PERMITS A CLAIM FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR IN PARA- GRAPH NINE OF THIS SUBSECTION AND EXCEPT SECTIONS SIX HUNDRED FIFTY-SEV- EN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF THIS ARTICLE, SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN INCORPORATED IN FULL INTO THIS SUBSECTION AND HAD EXPRESSLY REFERRED TO THE CREDIT ALLOWED OR RETURNS FILED UNDER THIS SUBSECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO THIS SUBSECTION. AS USED IN SUCH SECTIONS AND SUCH PART, THE TERM "TAXPAYER" SHALL INCLUDE A QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE, WHERE A QUALIFIED TAXPAYER HAS PROTESTED THE DENIAL OF A CLAIM FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO FILE A PETITION FOR REDETERMINATION OF A DEFICIENCY OR FOR REFUND HAS NOT EXPIRED, HE OR SHE S. 6409--A 10 A. 9009--A SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET BY THE COMMISSIONER, RECEIVE SUCH INFORMATION (A) THAT IS CONTAINED IN ANY RETURN FILED UNDER THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, AND (B) THAT THE COMMISSIONER FINDS IS RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH CLAIM WAS PROPERLY DENIED. (11) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDER- AL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS SUBSECTION. S 7. The opening paragraph of subparagraph (a) of paragraph 2 of subsection (n-1) of section 606 of the tax law, as added by section 1 of subpart B of part C of chapter 20 of the laws of 2015, is amended to read as follows: To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving EITHER the STAR exemption authorized by section four hundred twenty-five of the real property tax law OR THE SCHOOL TAX RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION, and (iii) had qualified gross income no greater than two hundred seven- ty-five thousand dollars. Provided, however, that no credit shall be allowed if any of the following apply: S 8. This act shall take effect immediately, provided, however, that sections six and seven of this act shall apply to taxable years begin- ning on or after January 1, 2016. PART B Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of section 1306-a of the real property tax law, as amended by section 6 of part N of chapter 58 of the laws of 2011, is amended to read as follows: (i) The tax savings for each parcel receiving the exemption authorized by section four hundred twenty-five of this chapter shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption, provided however, that [beginning with] FOR the two thousand eleven-two thousand twelve THROUGH TWO THOUSAND FIFTEEN-TWO THOUSAND SIXTEEN school [year] YEARS, the tax savings applicable to any "portion" (which as used herein shall mean that part of an assessing unit located within a school district) shall not exceed the tax savings applicable to that portion in the prior school year multiplied by one hundred two percent, with the result rounded to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN- NING WITH THE TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN SCHOOL YEAR, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibility of the commissioner to calculate tax savings limitations for purposes of this subdivision. S 2. This act shall take effect immediately. PART C S. 6409--A 11 A. 9009--A Section 1. Subparagraphs (iv), (v) and (vi) of paragraph (b) of subdi- vision 4 of section 425 of the real property tax law, subparagraph (iv) as amended by chapter 451 of the laws of 2015, subparagraph (v) as amended by section 10 of part W of chapter 56 of the laws of 2010, subparagraph (vi) as amended by section 3 of part (E) of chapter 83 of the laws of 2002, and clause (E) of subparagraph (vi) as further amended by section 1 of part W of chapter 56 of the laws of 2010, are amended to read as follows: (iv) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] SEVENTEEN, the application form shall indicate that the owners of the property and any owners' spouses residing on the premises [may] MUST ENROLL IN THE STAR INCOME VERIFICATION PROGRAM ADMINISTERED BY THE DEPARTMENT IN ORDER FOR THE PROPERTY TO BE ELIGIBLE FOR AN ENHANCED EXEMPTION PURSUANT TO THIS SUBDIVISION. TO ENROLL THEREIN, THEY MUST authorize the assessor to have their income eligibility verified annually thereafter by the [state] department [of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer iden- tification numbers in order to facilitate matching with records of the department. Thereafter, their income eligibility shall be verified annu- ally by the department and the assessor shall not request income documentation from them, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those require- ments, OR UNLESS ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR AND DID NOT DO SO. All APPLICANTS FOR THE ENHANCED STAR EXEMPTION AND ALL assessing units shall be required to participate in this program. (v) (A) Except in the case of a city with a population of one million or more, the assessor shall forward to the department, in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. After receiving the department's response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confiden- tial and shall not be subject to disclosure under article six of the public officers law. (B) In the case of a city of one million or more, the assessor shall forward to the department [of taxation and finance], in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. The department shall advise the assessor of its findings in the manner provided by the agreement executed pursuant to section one hundred seventy-one-o of the tax law. After receiving such response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be S. 6409--A 12 A. 9009--A confidential and shall not be subject to disclosure under article six of the public officers law. (vi) Notwithstanding the provisions of subparagraphs (iv) and (v) of this paragraph, which establish a STAR income verification program, income documentation must be submitted to the assessor in connection with each of the following: (A) Initial applications for the enhanced STAR exemption; (B) Renewal applications [submitted by a person or persons who have not elected to participate in the STAR income verification program] WHERE ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR AND DID NOT DO SO; (C) Applications that would allow an enhanced exemption to resume after having been discontinued; (D) Applications submitted by a person or persons who had previously qualified for the enhanced exemption but not in the assessing unit in question; and (E) Applications with respect to which the department [of taxation and finance] has advised the assessor [through the commissioner] that it is unable to determine whether a participant or participants in the STAR income verification program satisfy the income eligibility requirements. S 2. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law, as amended by chapter 570 of the laws of 1998, is amended to read as follows: (c) Senior citizens exemption. When property is eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this article, it shall also be deemed to be eligible for the enhanced exemption authorized by this section for certain senior citizens, provided, where applicable, that the age requirement established by a municipal corporation pursuant to subdivision five of section four hundred sixty-seven of this article is satisfied, and no separate appli- cation need be filed therefor. PROVIDED HOWEVER, THAT BEGINNING WITH FINAL ASSESSMENT ROLLS COMPLETED IN TWO THOUSAND SEVENTEEN, SUCH PROPER- TY SHALL NOT BE ELIGIBLE FOR SUCH ENHANCED EXEMPTION UNLESS THE OWNERS AND ANY OWNERS' SPOUSES RESIDING THEREON HAVE ENROLLED IN THE INCOME VERIFICATION PROGRAM ESTABLISHED BY SUBDIVISION FOUR OF THIS SECTION. S 3. This act shall take effect immediately and shall apply to the administration of the enhanced STAR exemption authorized by subdivision 4 of section 425 of the real property tax law beginning with final assessment rolls to be completed in 2017. PART D Section 1. Subdivision 6 of section 425 of the real property tax law is amended by adding a new paragraph (a-2) to read as follows: (A-2) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A RENEWAL APPLICATION FOR THE "ENHANCED" STAR EXEMPTION AUTHORIZED BY SUBDIVISION FOUR OF THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT- S. 6409--A 13 A. 9009--A ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE COMMISSIONER SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO SUCH OWNER AND THE ASSESSOR. IF THE DETERMINATION STATES THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA- TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING- LY. S 2. Section 467 of the real property tax law is amended by adding a new subdivision 8-a to read as follows: 8-A. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT A LOCAL LAW PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION IS FURTHER AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL APPLICA- TION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF HE OR SHE IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI- NATION STATES THAT THE ASSESSOR HAS GRANTED THE EXEMPTION, HE OR SHE SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI- CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY. S 3. This act shall take effect on the sixtieth day after it shall have become a law. PART E Section 1. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU- LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU- SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A RESI- DENT INDIVIDUAL OF THE STATE WHO IS A RESIDENT OF A CITY WITH A POPULATION OVER ONE MILLION, AS PROVIDED BELOW. THE CREDIT SHALL BE ALLOWED AGAINST THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE S. 6409--A 14 A. 9009--A CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, 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 WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO CREDIT SHALL BE GRANTED TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (2) THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED BASED UPON THE TAXPAYER'S INCOME AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. FOR THE PURPOSES OF THIS PARAGRAPH, ANY TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITH INCOME OF MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A CREDIT. (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. (B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS. (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA- BLE YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT, THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE. S 2. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax law, paragraph 1 as amended by section 3 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 1 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 4 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven, AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this subsection, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For the purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by S. 6409--A 15 A. 9009--A applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of this chapter.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 3. Paragraphs 1 and 2 of subsection (c) of section 11-1706 of the administrative code of the city of New York, paragraph 1 as amended by section 6 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 2 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this [subdivision] SUBSECTION, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax S. 6409--A 16 A. 9009--A year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of the tax law.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. PART F Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: (16) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER FINDS THAT A PROPERTY OWNER WAS ELIGIBLE FOR THE STAR EXEMPTION AUTHORIZED BY THIS SECTION ON AN ASSESSMENT ROLL, BUT THE EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE PROPERTY OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY OWNER OR HIS OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION AND FINANCE IS AUTHORIZED TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF THE STAR EXEMPTION HAD BEEN TAKEN INTO ACCOUNT IN THE CALCULATION OF THAT TAXPAYER'S SCHOOL TAX BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER- TY OWNER NOR HIS OR HER AGENT SHALL BE ENTITLED TO A REFUND OF THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE ERROR. S 2. This act shall take effect immediately. PART G Section 1. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. S 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. S. 6409--A 17 A. 9009--A S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 1 of part H of chapter 59 of the laws of 2013, is amended to read as follows: S 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2016], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2017 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2016]. S 6. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY. -- (1) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPARER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND S. 6409--A 18 A. 9009--A AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYA- BLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH (1) OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. S 7. Subsection (u) of section 685 of the tax law is amended by adding two new paragraphs (1) and (2) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. ANY INDIVIDUAL WHO IS A TAX RETURN PREPARER BUT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER, WHO IS REQUIRED PURSUANT TO PARA- GRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND AND WHO FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASON- ABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALEN- DAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALEN- DAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE IS NOT SO INCLUDED, THE PERSON WHO IS THE TAX RETURN PREPARER BUT IT NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEV- ER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARA- GRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDEN- TIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. S 8. This act shall take effect immediately; provided, however, that section seven of this act shall apply to taxable years commencing on and after January 1, 2016. PART H S. 6409--A 19 A. 9009--A Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part P of chapter 59 of the laws of 2014, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [sixty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [seventy-two] EIGHTY million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 3. Subdivision 4 of section 22 of the public housing law as amended by section two of this act is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty-eight] NINETY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2017; section three of this act shall take effect April 1, 2018; section four of this act shall take effect April 1, 2019 and section five of this act shall take effect April 1, 2020. PART I S. 6409--A 20 A. 9009--A Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any S. 6409--A 21 A. 9009--A week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 4. This act shall take effect immediately. PART J Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) A taxpayer which is a qualified commercial production company, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predominantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thousand [seventeen] NINETEEN. S 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Expiration of credit. The credit allowed under this subdivision shall not be applicable to taxable years beginning on or after [December thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN. S. 6409--A 22 A. 9009--A S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as amended by section 4 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) Allowance of credit. A taxpayer that is eligible pursuant to the provisions of section twenty-eight of this chapter shall be allowed a credit to be computed as provided in such section against the tax imposed by this article. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thou- sand [seventeen] NINETEEN. S 4. This act shall take effect immediately. PART K Section 1. Section 5 of chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disabilities, is amended to read as follows: S 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; [and] provided further that this act shall apply to all tax years commencing on or after January 1, 2011; AND PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL REMAIN IN EFFECT UNTIL DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL BE DEEMED REPEALED. S 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year 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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. THE TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. S 3. This act shall take effect immediately. PART L Section 1. Section 2 of part I of chapter 58 of the laws of 2006, relating to providing an enhanced earned income tax credit, as amended by section 1 of part G of chapter 59 of the laws of 2014, is amended to read as follows: S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 [and before January 1, 2017]. S 2. This act shall take effect immediately. PART M Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- S. 6409--A 23 A. 9009--A mation and relating to the voluntary compliance initiative, as amended by section 1 of part B of chapter 61 of the laws of 2011, is amended to read as follows: S 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2015; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2015; provided, however that notwithstanding the provisions of article 5 of the general construction law, the provisions of section 25, paragraph 11 of subsection (c) of section 683, subsections (p), (p-1), (x), (y), (z), (aa) and (bb) of section 685, paragraph 11 of subsection (c) of section 1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085 of the tax law, and section 11 of Part N of chapter 61 of the laws of 2005, are hereby revived and shall continue in full force and effect as such provisions existed on July 1, 2015. PART N Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S. 6409--A 24 A. 9009--A S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as amended by chapter 193 of the laws of 2012, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thousand seven and on or after January first, two thousand eight and before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S 3. This act shall take effect immediately. PART O Section 1. Section 359 of the economic development law, as amended by section 3 of part C of chapter 68 of the laws of 2013, is amended to read as follows: S 359. Cap on tax credit. The total amount of tax credits listed on certificates of tax credit issued by the commissioner for any taxable year may not exceed the limitations set forth in this section. One-half of any amount of tax credits not awarded for a particular taxable year IN YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR may be used by the commissioner to award tax credits in another taxable year. Credit components in the aggregate With respect to taxable shall not exceed: years beginning in: $ 50 million 2011 $ 100 million 2012 $ 150 million 2013 $ 200 million 2014 $ 250 million 2015 $ 200 million 2016 $ 200 million 2017 $ 200 million 2018 $ 200 million 2019 $ 200 million 2020 $ 200 million 2021 $ 150 million 2022 $ 100 million 2023 $ 50 million 2024 Twenty-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision four of section three hundred fifty-three of this article and seventy-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision three of section three hundred fifty-three of this article. Provided, however, if by September thirtieth of a calendar year, the department has not allocated the full amount of credits available in that year to either: (i) businesses accepted into the program under subdivision four of section three hundred fifty-three of this article or S. 6409--A 25 A. 9009--A (ii) businesses accepted into the program under subdivision three of section three hundred fifty-three of this article, the commissioner may allocate any remaining tax credits to businesses referenced in [para- graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided, however, that under no circumstances may the AGGREGATE statutory cap FOR ALL PROGRAM YEARS be exceeded. ONE HUNDRED PERCENT OF THE UNAWARDED AMOUNTS REMAINING AT THE END OF TWO THOUSAND TWENTY-FOUR MAY BE ALLO- CATED IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT LIMITATION ON ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED- ITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. S 2. Subdivision 5 of section 354 of the economic development law, as amended by section 2 of part C of chapter 68 of the laws of 2013, is amended to read as follows: 5. A participant may claim tax benefits commencing in the first taxa- ble year that the business enterprise receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later. A participant may claim such benefits for the next nine consecutive taxable years, provided that the participant demonstrates to the department that it continues to satisfy the eligi- bility criteria specified in section three hundred fifty-three of this article and subdivision two of this section in each of those taxable years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. If, in any given year, a participant who has satisfied the eligibility criteria specified in section three hundred fifty-three of this article realizes job creation less than the estimated amount, the credit shall be reduced by the proportion of actual job creation to the estimated amount, provided the proportion is at least seventy-five percent of the jobs estimated. S 3. Subdivision (b) of section 31 of the tax law, as added by section 7 of part G of chapter 61 of the laws of 2011, is amended to read as follows: (b) To be eligible for the excelsior jobs program credit, the taxpayer shall have been issued a "certificate of tax credit" by the department of economic development pursuant to subdivision four of section three hundred fifty-four of the economic development law, which certificate shall set forth the amount of each credit component that may be claimed for the taxable year. A taxpayer may claim such credit for ten consec- utive taxable years commencing in the first taxable year that the taxpayer receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later, PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. The taxpayer shall be allowed to claim only the amount listed on the certificate of tax credit for that taxable year. Such certificate must be attached to the taxpay- er's return. No cost or expense paid or incurred by the taxpayer shall be the basis for more than one component of this credit or any other tax credit, except as provided in section three hundred fifty-five of the economic development law. S 4. This act shall take effect immediately. PART P S. 6409--A 26 A. 9009--A Section 1. Subdivision (c) of section 24 of the tax law, as added by section 1 of part P of chapter 60 of the laws of 2004, is amended to read as follows: (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) article 9-A: section [210] 210-B: subdivision [36] 20. (2) article 22: section 606: subsection (gg). S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, are amended to read as follows: (a) A taxpayer that is an eligible employer or an owner of an eligible employer as defined in subdivision (b) of this section shall be eligible for a credit against the tax imposed under article nine, nine-A, twen- ty-two, [thirty-two] or thirty-three of this article, pursuant to the provisions referenced in subdivision (e) of this section. (2) Article 9-A: Section [210] 210-B, subdivision [46] 40. (4) [Article 32: Section 1456, subsection (z). (5)] Article 33: Section 1511, subdivision (cc). S 3. Paragraph (e) of subdivision 1 of section 209 of the tax law, as added by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (e) At the end of each year, the commissioner shall review the cumula- tive percentage change in the consumer price index. The commissioner shall adjust the receipt thresholds set forth in this subdivision if the consumer price index has changed by ten percent or more since January first, two thousand fifteen, or since the date that the thresholds were last adjusted under this subdivision. The thresholds shall be adjusted to reflect that cumulative percentage change in the consumer price index. The adjusted thresholds shall be rounded to the nearest one thou- sand dollars. As used in this paragraph, "consumer price index" means the consumer price index for all urban consumers (CPI-U) available [form] FROM the bureau of labor statistics of the United States depart- ment of labor. Any adjustment shall apply to tax periods that begin after the adjustment is made. S 4. The opening paragraph of paragraph (a) of subdivision 5 of section 210-A of the tax law, as amended by section 23 of part T of chapter 59 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal revenue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision five of S. 6409--A 27 A. 9009--A section two hundred eight of this article shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 5. Paragraph (c) of subdivision 7 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Average number of individuals employed full-time. For the purposes of this subdivision, average number of individuals employed full-time shall be computed by adding the number of such individuals employed by the taxpayer at the end of each quarter during each taxable year or other applicable period and dividing the sum so obtained by the number of such quarters occurring within such taxable year or other applicable period; provided however, except that in computing base year employment, there shall be excluded therefrom any employee with respect to whom a credit provided for under subdivision [six of this section is] NINETEEN OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed for the taxable year. S 6. Paragraph (a) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Application of credit. A taxpayer shall be allowed a credit, to be credited against the tax imposed by this article, equal to the amount of the special additional mortgage recording tax paid by the taxpayer pursuant to the provisions of subdivision one-a of section two hundred fifty-three of this chapter [or] ON mortgages recorded. Provided, howev- er, no credit shall be allowed with respect to a mortgage of real prop- erty principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the metropolitan commuter transportation area. Provided further, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in the county of Erie. S 7. Subdivision 45 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 45. Order of credits. [(a)] Credits allowable under this article which cannot be carried over and which are not refundable shall be deducted first. [The credit allowable under subdivision six of this section shall be deducted immediately after the deduction of all credits allowable under this article which cannot be carried over and which are not refundable, whether or not a portion of such credit is refundable.] Credits allowable under this article which can be carried over, and carryovers of such credits, shall be deducted next [after the deduction of the credit allowable under subdivision six of this section], and among such credits, those whose carryover is of limited duration shall S. 6409--A 28 A. 9009--A be deducted before those whose carryover is of unlimited duration. Cred- its allowable under this article which are refundable [(other than the credit allowable under subdivision six of this section)] shall be deducted last. S 8. Paragraph (a) of subdivision 3 of section 210-C of the tax law, as added by section 18 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Subject to the provisions of paragraph (c) of subdivision two of this section, a taxpayer may elect to treat as its combined group all corporations that meet the ownership requirements described in paragraph (a) of subdivision two of this section (such corporations collectively referred to in this subdivision as the "commonly owned group"). If that election is made, the commonly owned group shall calculate the combined business income, combined capital, and fixed dollar minimum bases of all members of the group in accordance with [paragraph] SUBDIVISION four of this [subdivision] SECTION, whether or not that business income or busi- ness capital is from a single unitary business. S 9. Paragraph I of subdivision 1 of section 11-604 of the administra- tive code of the city of New York, as added by chapter 491 of the laws of 2007, is amended to read as follows: I. Notwithstanding any provision of this subdivision to the contrary, for taxable years beginning on or after January first, two thousand seven for any corporation that: (a) has a business allocation percentage for the taxable year, as determined under paragraph (a) of subdivision three of this section, of one hundred percent; (b) has no investment capital or income at any time during the taxable year; (c) has no subsidiary capital or income at any time during the taxable year; and (d) has gross income, as defined in section sixty-one of the internal revenue code, less than two hundred fifty thousand dollars for the taxa- ble year: the tax imposed by subdivision one of section 11-603 of this subchap- ter shall be the greater of the tax on entire net income computed under clause one of subparagraph (a) of paragraph E of this subdivision and the fixed dollar minimum tax specified in clause four of subparagraph (a) of paragraph E of this subdivision. For purposes of this paragraph, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, any corporation for which an election under subsection (a) of section six hundred sixty of the tax law is not in effect for the taxable year may elect to treat as entire net income the sum of: (i) entire net income as determined under section two hundred eight of the tax law; and (ii) any deductions taken for the taxable year in computing federal taxable income for New York city taxes paid or accrued under this chap- ter. S 10. Subdivision 2 of section 11-651 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 2. Each reference in THE TAX LAW OR this code to subchapters two or three of this chapter, or any of the provisions thereof, shall be deemed a reference also to this subchapter, and any of the applicable provisions thereof, where appropriate and with all necessary modifica- tions. S. 6409--A 29 A. 9009--A S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) The term "investment capital" means investments in stocks that: (i) satisfy the definition of a capital asset under section 1221 of the internal revenue code at all times the taxpayer owned such stocks during the taxable year; (ii) are held by the taxpayer for investment for more than one year; (iii) the dispositions of which are, or would be, treated by the taxpayer as generating long-term capital gains or losses under the internal revenue code; (iv) for stocks acquired on or after January first, two thousand fifteen, at any time after the close of the day in which they are acquired, have never been held for sale to customers in the regular course of business; and (v) before the close of the day on which the stock was acquired, are clearly identified in the taxpayer's records as stock held for investment in the same manner as required under section 1236(a)(1) of the internal revenue code for the stock of a dealer in securities to be eligible for capital gain treatment (whether or not the taxpayer is a dealer of securities subject to section 1236), provided, however, that for stock acquired prior to October first, two thousand fifteen that was not subject to section 1236(a) of the internal revenue code, such identification in the taxpayer's records must occur before October first, two thousand fifteen. Stock in a corporation that is conducting a unitary business with the taxpayer, stock in a corpo- ration that is included in a combined report with the taxpayer pursuant to the commonly owned group election in subdivision three of section 11-654.3 of this subchapter, and stock [used] ISSUED by the taxpayer shall not constitute investment capital. For purposes of this subdivi- sion, if the taxpayer owns or controls, directly or indirectly, less than twenty percent of the voting power of the stock of a corporation, that corporation will be presumed to be conducting a business that is not unitary with the business of the taxpayer. S 12. Subparagraph 2 of paragraph (a) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (2) The amount determined in this subparagraph is the product of (i) the excess of (A) the tax computed under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, without allowance of any credits allowed by this section, over (B) the tax so computed, determined as if the corporation had no such distributive share or guar- anteed payments with respect to the unincorporated business, and (ii) a fraction, the numerator of which is four and the denominator of which is eight and eighty-five one hundredths, [provided however,] EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA- GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denomina- tor shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year; [and,] provided[, however,] that the amounts computed in subclauses (A) and (B) of clause (i) of this subparagraph shall be computed with the following modifications: (A) such amounts shall be computed without taking into account any carryforward or carryback by the partner of a net operating loss or a prior net operation loss conversion subtraction; (B) if, prior to taking into account any distributive share or guaran- teed payments from any unincorporated business or any net operating loss S. 6409--A 30 A. 9009--A carryforward or carryback, the entire net income of the partner is less than zero, such entire net income shall be treated as zero; and (C) if such partner's net total distributive share of income, gain, loss and deductions of, and guaranteed payments from, any unincorporated business is less than zero, such net total shall be treated as zero. The amount determined in this subparagraph shall not be less than zero. S 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (1) Notwithstanding anything to the contrary in paragraph (a) of this subdivision, in the case of a corporation that, before the application of this subdivision or any other credit allowed by this section, is liable for the tax on business income under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, the credit or the sum of the credits that may be taken by such corporation for a taxa- ble year under this subdivision with respect to an unincorporated busi- ness or unincorporated businesses in which it is a partner shall not exceed the tax so computed, without allowance of any credits allowed by this section, multiplied by a fraction the numerator of which is four and the denominator of which is eight and eighty-five one-hundredths [provided, however], EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denominator shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year. If the credit allowed under this subdivision or the sum of such credits exceeds the product of such tax and such fraction, the amount of the excess may be carried forward, in order, to each of the seven immediately succeeding taxable years and, to the extent not previously taken, shall be allowed as a credit in each of such years. In applying the provisions of the preced- ing sentence, the credit determined for the taxable year under paragraph (a) of this subdivision shall be taken before taking any credit carry- forward pursuant to this paragraph and the credit carryforward attribut- able to the earliest taxable year shall be taken before taking a credit carryforward attributable to a subsequent taxable year. S 14. Subparagraph 8 of paragraph (a) of subdivision 21 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (8) The credit allowed under this subdivision shall only be allowed for taxable years beginning before January first, two thousand [sixteen] NINETEEN. S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin- istrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (c) Receipts from sales of tangible personal property and electricity that are traded as commodities as the term "commodity" is defined in section four hundred seventy-five of the internal revenue code, shall be included in the receipts fraction in accordance with clause [(i)] (IX) of subparagraph two of paragraph (a) of subdivision five of this section. S 16. The opening paragraph of paragraph (a) of subdivision 5 of section 11-654.2 of the administrative code of the city of New York, as S. 6409--A 31 A. 9009--A added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal reven- ue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision [4] FOUR of section 11-652 of this subchapter shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION FIVE-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 17. This act shall take effect immediately; provided however that sections one, two, three, four, five, six, seven and eight of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect, and sections nine, ten, eleven, twelve, thirteen, fourteen, fifteen and sixteen of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part D of chapter 60 of the laws of 2015, took effect. PART Q Section 1. Subdivision 5 of section 183-a of the tax law, as amended by section 61 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. The report covering the tax surcharge which must be calculated pursuant to this section based upon the tax reportable on the report due by March fifteenth of any year under section one hundred eighty-three of this article, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR UNDER SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, shall be filed on or before March fifteenth of the year next succeeding such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE YEAR NEXT SUCCEEDING SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. An extension pursuant to section one hundred ninety- S. 6409--A 32 A. 9009--A three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form as said commis- sioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this arti- cle, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer's report for the preceding year, if such preceding year consisted of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpay- er, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to section one hundred eighty-three of this article are applicable to the tax surcharge imposed by this section except for section one hundred ninety-two of this arti- cle. S 2. Subdivision 4 of section 186-a of the tax law, as amended by chapter 536 of the laws of 1998, is amended to read as follows: 4. Every utility subject to tax hereunder shall file, on or before March fifteenth of each year, a return for the year ended on the preced- ing December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on June first, nineteen hundred seventy-six, AND SHALL FILE, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR- TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, including any period for which the tax imposed hereby or by any amendment hereof is effective, each of which returns shall state the gross income or gross operating income for the period covered by each such return. Returns shall be filed with the commissioner of taxation and finance on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any utility to file an annual return, which shall contain any data spec- ified by the commissioner, regardless of whether the utility is subject to tax under this section; and the commissioner may require a landlord selling to a tenant gas, electric, steam, water or refrigeration or furnishing gas, electric, steam, water or refrigerator service, where the same has been subjected to tax under this section on the sale to such landlord, to file, on or before the fifteenth day of March of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an information return for the year ended on the preceding December thir- ty-first, covering such year in such form and containing such data as the commissioner may specify. Every return shall have annexed thereto a certification by the head of the utility making the same, or of the S. 6409--A 33 A. 9009--A owner or of a co-partner thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 3. Subdivision 6 of section 186-e of the tax law, as added by chap- ter 2 of the laws of 1995, is amended to read as follows: 6. Returns. Every provider of telecommunication services subject to tax under this section shall file, on or before March fifteenth of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, a return for the year ended on the preceding December thirty-first, and pay the tax due, which return shall state the gross receipts for the period covered by each such return and the resale exclusions during such period. Returns shall be filed with the commissioner on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any provider of telecommuni- cation services to file an annual return, which shall contain any data specified by the commissioner, regardless of whether such provider is subject to tax under this section. Every return shall have annexed ther- eto a certification by the head of the provider of telecommunication services making the same, or of the owner or of a partner or member thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 4. Subdivision 1 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three or one hundred eighty-five of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMIS- SIONER of its condition at the close of its business on the preceding December thirty-first, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year. S 5. Subdivision 1 of section 192 of the tax law, as amended by section 26 of part S of chapter 59 of the laws of 2014, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMISSIONER of its condition at the close of its business on the preceding December thirty-first, stat- ing the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such S. 6409--A 34 A. 9009--A corporation, and the capital employed by it in this state during such year. S 6. Subdivision 2 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 2. Transportation and transmission corporations. Every transportation or transmission corporation, joint-stock company or association liable to pay an additional franchise tax under section one hundred eighty-four of this chapter, shall also, on or before March fifteenth of each year, make a written report to the [tax commission] COMMISSIONER of the amount of its gross earnings subject to the tax imposed by said section for the year ended on the preceding December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE COMMISSIONER OF THE AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. Any such corporation, joint-stock company or association which ceases to be subject to the tax imposed by section one hundred eighty-four of this chapter by reason of a liquidation, dissolution, merger or consolidation with any other corporation, or any other cause, shall, on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require, make a written report to the [tax commission] COMMIS- SIONER of the amount of its gross earnings subject to the tax imposed by section one hundred eighty-four of this chapter for any period for which no report was theretofore filed. Any corporation, joint-stock company or association subject to a tax upon dividends under said section one hundred eighty-four of this chapter shall also include in its report under this subdivision required to be filed a statement of the author- ized capital of the company, the amount of capital stock issued, and the amount of dividends of every nature paid during the year ended on the preceding December thirty-first. As to tax payers subject to such tax upon dividends under said section one hundred eighty-four of this chap- ter, the year ended on December thirty-first, nineteen hundred seventy- six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six. S 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, as amended by section 1 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) For taxable years beginning on or after January first, nineteen hundred seventy-seven, every taxpayer subject to tax under section one hundred eighty-two, one hundred eighty-two-a, former section one hundred eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article, must pay in each year an amount equal to (i) twenty-five percent of the tax imposed under each of such sections for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax imposed under any of these sections for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. If the preceding year's tax under section one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section one hundred eighty-four-a or one hundred eighty-six-c of this article, S. 6409--A 35 A. 9009--A respectively, the taxpayer must also pay in each such year an amount equal to (i) twenty-five percent of the tax surcharge imposed under such section for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed under that section for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. The amount or amounts must be paid with the return or report required to be filed with respect to the tax or tax surcharge for the preceding taxable year or with an application for extension of the time for filing the return or report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in this state in a corporate or organized capacity, or of maintaining an office in this state, or of deriving receipts from activity in this state, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a franchise tax, upon the basis of its business income base, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report which shall be filed, except as here- inafter provided, on or before the fifteenth day of March next succeed- ing the close of each such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, or, in the case of a corporation which reports on the basis of a fiscal year, with- in two and one-half months after the close of such fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided. S 9. Subdivision 1 of section 211 of the tax law, as amended by chap- ter 436 of the laws of 1974, the opening paragraph as amended by chapter 190 of the laws of 1990 and the second undesignated paragraph as amended by chapter 542 of the laws of 1985, is amended to read as follows: 1. Every taxpayer[, as well as every foreign corporation having an employee, including any officer, within the state,] shall annually on or before March fifteenth, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a report in a form prescribed by [it] THE COMMISSIONER (except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF ITS FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and except, also, that a corporation which is a DISC shall transmit its report on or before the fifteenth day of the S. 6409--A 36 A. 9009--A ninth month following the close of its calendar or fiscal year), setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a report on the date of such cessation or at such other time as the [tax commission] COMMISSIONER may require covering each year or period for which no report was theretofore filed. In the case of a termination year of an S corporation, the S short year and the C short year shall be treated as separate short taxable years, provided, however, the due date of the report for the S short year shall be the same as the due date of the report for the C short year. Every taxpayer shall also transmit such other reports and such facts and information as the [tax commission] COMMISSIONER may require in the administration of this article. The [tax commission] COMMISSIONER may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, such taxpayer files with the [tax commission] COMMISSIONER an application for extension in such form as [said commis- sion] THE COMMISSIONER may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 10. Subdivision (a) of section 213-b of the tax law, as amended by section 2 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV- ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. If the preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twen- ty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars. S 11. Subdivision (f) of section 213-b of the tax law, as amended by chapter 613 of the laws of 1976, is amended to read as follows: S. 6409--A 37 A. 9009--A (f) The preceding year's tax defined.-- As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section two hundred nine of this chapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section two hundred thirteen of this chapter as the tax imposed upon the taxpayer for such calendar or fiscal year. S 12. Paragraph 1 of subsection (c) of section 658 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Partnerships. Every partnership having a resident partner or having any income derived from New York sources, determined in accord- ance with the applicable rules of section six hundred thirty-one as in the case of a nonresident individual, shall make a return for the taxa- ble year setting forth all items of income, gain, loss and deduction and such other pertinent information as the commissioner may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due date for the return of a partnership consisting entirely of nonresident aliens shall be the date prescribed for the filing of its federal partnership return for the taxable year. For purposes of this paragraph, "taxable year" means a year or a period which would be a taxable year of the partner- ship if it were subject to tax under this article. S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658 of the tax law, as amended by section 18 of part U of chapter 61 of the laws of 2011, is amended to read as follows: (A) Every subchapter K limited liability company, every limited liability company that is a disregarded entity for federal income tax purposes, and every partnership which has any income derived from New York sources, determined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall[, within sixty days after the last day of the taxable year,] ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee. The amount of the filing fee is the amount set forth in subparagraph (B) of this paragraph. The minimum filing fee is twenty-five dollars for taxable years beginning in two thousand eight and thereafter. Limited liability companies that are disregarded entities for federal income tax purposes must pay a filing fee of twenty-five dollars for taxable years beginning on or after January first, two thousand eight. S 14. Subsection (i) of section 1087 of the tax law, as added by chap- ter 188 of the laws of 1964, is amended to read as follows: (i) Prepaid tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment (including any amount paid by the taxpayer as estimated tax for a taxable year) shall be deemed to have been paid by it on the fifteenth day of the third month following the close of the taxable year the income of which is the basis for tax under article nine-a, [nine-b or nine-c,] or on the last day prescribed in article nine for the filing of a final return for such S. 6409--A 38 A. 9009--A taxable year, or portion thereof, determined in all cases without regard to any extension of time granted the taxpayer, FOR TAXABLE YEARS BEGIN- NING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE NINE-A, OR ON THE LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR SUCH TAXABLE YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 15. Paragraph 3 of subdivision (a) of section 1514 of the tax law, as amended by section 89 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (3) Such amount or amounts described in paragraphs one and two of this subdivision shall be paid with the return required to be filed with respect to such tax or tax surcharge for such preceding taxable year or with an application for extension of the time for filing such return, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 16. Subdivision (f) of section 1514 of the tax law, as amended by section 26 of part H3 of chapter 62 of the laws of 2003, is amended to read as follows: (f) The preceding year's tax defined. As used in this section, "the preceding year's tax" means, for taxpayers subject to tax under subdivi- sion (b) of section fifteen hundred ten of this article, the taxes imposed upon the taxpayer by sections fifteen hundred one and fifteen hundred ten of this article from the preceding taxable year or as other- wise determined by subdivision (b) of section fifteen hundred five of this article, and for taxpayers subject to tax under section fifteen hundred two-a of this article, the tax imposed upon the taxpayer by such section fifteen hundred two-a of this article from the preceding year, or for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the return required to be filed for such preceding taxable year, the amount properly estimated pursuant to paragraph one of subdivision (b) of section fifteen hundred sixteen of this article as the tax imposed upon the taxpayer for such taxable year. S 17. Subdivision (a) of section 1515 of the tax law, as added by section 649 of the laws of 1974 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows: (a) Every taxpayer and every other foreign and alien insurance corpo- ration having an employee, including any officer, in this state or having an agent or representative in this state, shall annually, on or before the fifteenth day of the third month following the close of its taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a return in a form prescribed by [it] THE COMMISSIONER setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a return on the date of such cessation or at such other time as the [tax commission] COMMISSION- S. 6409--A 39 A. 9009--A ER may require covering each year or period for which no return was theretofore filed. A copy of each return required under this subdivision shall also be transmitted to the superintendent of financial services at or before the times specified for filing such returns with the [tax commission] COMMISSIONER. S 18. Subdivisions (a) and (b) of section 11-514 of the administrative code of the city of New York, subdivision (a) as amended by chapter 183 of the laws of 2009, are amended to read as follows: (a) General. [On or before the fifteenth day of the fourth month following the close of a taxable year, an] AN unincorporated business income tax return shall be made and filed, and the balance of any tax shown on the face of such return, not previously paid as installments of estimated tax, shall be paid, ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN: (1) by or for every unincorporated business, for taxable years begin- ning after nineteen hundred eighty-six but before nineteen hundred nine- ty-seven, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ten thousand dollars, or having any amount of unincorporated business taxable income; (2) by or for every partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unin- corporated business gross income, determined for purposes of this subdi- vision without any deduction for the cost of goods sold or services performed, of more than twenty-five thousand dollars, or having unincor- porated business taxable income of more than fifteen thousand dollars; (3) by or for every unincorporated business other than a partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unincorporated business gross income, deter- mined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than seventy-five thousand dollars, or having unincorporated business taxable income of more than thirty-five thousand dollars; and (4) by or for every unincorporated business, for taxable years begin- ning after two thousand eight, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ninety-five thousand dollars. (b) Decedents. The return for any deceased individual shall be made and filed by his or her executor, administrator, or other person charged with his or her property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, the fifteenth day of the fourth month following the close of the twelve- month period [which] THAT began with the first day of such fractional part of the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF THE YEAR. S 19. Subdivision (i) of section 11-527 of the administrative code of the city of New York is amended to read as follows: S. 6409--A 40 A. 9009--A (i) Prepaid tax. For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment and any amount paid by the taxpayer as estimated tax for a taxable year shall be deemed to have been paid by the taxpayer, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth month following the close of his or her taxable year with respect to which such amount constitutes a credit or payment, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA- BLE YEAR WITH RESPECT TO WHICH SUCH AMOUNT CONSTITUTES A CREDIT OR PAYMENT. S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) For the privilege of doing business, or of employing capital, or of owning or leasing property in the city in a corporate or organized capacity, or of maintaining an office in the city, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a tax, upon the basis of its business income, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report [which] THAT shall be filed, except as hereinafter provided, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before the fifteenth day of March next succeeding the close of each such CALEN- DAR year, or, in the case of a taxpayer [which] THAT reports on the basis of a fiscal year, within two and one-half months after the close of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR, and shall be paid as hereinafter provided. S 21. Subdivision 1 of section 11-655 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. Every corporation having an officer, agent or representative within the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the commissioner of finance a report, in a form prescribed by the commissioner of finance [(except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year)], setting forth such information as the commissioner of finance may prescribe, [and every] EXCEPT THAT A CORPORATION THAT REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND, FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR. EVERY taxpayer [which] THAT ceases to do business in the city or to be subject to the tax imposed by this subchapter shall transmit to the commissioner of finance a report on the date of such cessation or at such other time as the commissioner of finance may require covering each year or period for which no report was theretofore filed. Every taxpayer S. 6409--A 41 A. 9009--A shall also transmit such other reports and such facts and information as the commissioner of finance may require in the administration of this subchapter. The commissioner of finance may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, whichever is applicable, such taxpayer files with the commissioner of finance an application for extension in such form as the commissioner of finance may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 22. Subdivision 1 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU- SAND SIXTEEN, EVERY taxpayer subject to the tax imposed by section 11-653 of this subchapter shall pay with the report required to be filed for the preceding privilege period, if any, or with an application for extension of the time and filing such report, an amount equal to twen- ty-five per centum of the preceding year's tax if such preceding year's tax exceeded one thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR. S 23. Subdivision 6 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 6. As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section 11-653 of this subchapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section 11-657 of this subchapter as the tax imposed upon the taxpayer for such calendar or fiscal year. S 24. This act shall take effect immediately provided, however, that section five of this act shall take effect on the same date and in the same manner as section 26 of part S of chapter 59 of the laws of 2014, takes effect, and that section five of this act shall apply to taxable years beginning on or after January 1, 2018 and that section thirteen of this act shall apply to taxable years beginning on or after January 1, 2016. PART R Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 12 of part A of chap- ter 59 of the laws of 2014, is amended to read as follows: (iv) (A) for taxable years beginning before January first, two thou- sand sixteen, if the business income base is not more than two hundred ninety thousand dollars the amount shall be six and one-half percent of the business income base; if the business income base is more than two S. 6409--A 42 A. 9009--A hundred ninety thousand dollars but not over three hundred ninety thou- sand dollars the amount shall be the sum of (1) eighteen thousand eight hundred fifty dollars, (2) seven and one-tenth percent of the excess of the business income base over two hundred ninety thousand dollars but not over three hundred ninety thousand dollars and (3) four and thirty- five hundredths percent of the excess of the business income base over three hundred fifty thousand dollars but not over three hundred ninety thousand dollars; (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS; S 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars, OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. S. 6409--A 43 A. 9009--A (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (35) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars; OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF ARTICLE TWENTY-TWO OF THE TAX LAW, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF ARTI- CLE NINE-A OF THE TAX LAW FOR THE TAXABLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART S Section 1. This act shall be known and may be cited as the "parental choice in education act". S. 6409--A 44 A. 9009--A S 2. The education law is amended by adding a new article 25 to read as follows: ARTICLE 25 EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT SECTION 1209. SHORT TITLE. 1210. DEFINITIONS. 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1215. REPORTING AND RECORDKEEPING. 1216. JOINT ANNUAL REPORT. 1217. COMMISSIONER; POWERS. S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT". S 1210. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAY- ER. 2. "CONTRIBUTION" MEANS A DONATION PAID BY CASH, CHECK, ELECTRONIC FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD THAT IS MADE BY A TAXPAYER DURING THE TAXABLE YEAR. 3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC OR SIMILAR PROGRAM OF A PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM OR ACADEMIC PROGRAM OF THE PUBLIC SCHOOL, OR PROVIDES A PRE-KINDERGARTEN PROGRAM TO A PUBLIC SCHOOL. FOR PURPOSES OF THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS AND OTHER ACTIVITIES OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI- LY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND VISUAL ARTS; MATH- EMATICS, SOCIAL STUDIES, TECHNOLOGY AND SCIENTIFIC ACHIEVEMENT; (B) INSTRUCTION OR PROGRAMMING TO MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILITIES, INCLUDING TUTORING OR COUN- SELING; OR (C) THE USE OF SPECIALIZED INSTRUCTIONAL MATERIALS, INSTRUC- TORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL. 4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS AN ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALEN- DAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH YEAR FOR SCHOLARSHIPS; (C) PROVIDES MORE THAN FIFTY PERCENT OF ITS SCHO- LARSHIPS DURING A CALENDAR YEAR TO ELIGIBLE PUPILS WHO RESIDE IN A HOUSEHOLD THAT HAS AN INCOME NOT TO EXCEED ONE HUNDRED FIFTY PERCENT OF THE INCOME QUALIFICATION REQUIRED FOR THE REDUCED PRICE SCHOOL LUNCHES UNDER THE NATIONAL SCHOOL LUNCH ACT, PROVIDED HOWEVER FOR THE PURPOSES OF AN EDUCATIONAL SCHOLARSHIP ORGANIZATION FULFILLING SUCH REQUIREMENT, AN EDUCATIONAL SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH ANOTHER EDUCATIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY REPORT THEIR SCHOLARSHIP INFORMATION TO MEET SUCH REQUIREMENT; (D) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGAN- IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; (E) PROVIDES SCHOLARSHIPS TO ELIGIBLE S. 6409--A 45 A. 9009--A PUPILS FOR USE AT NOT FEWER THAN THREE QUALIFIED SCHOOLS; AND (F) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. 5. "ELIGIBLE PUPIL" MEANS A CHILD WHO IS: (A) A RESIDENT OF THIS STATE; (B) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED IN A PRE-KINDERGARTEN PROGRAM; (C) ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL; AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSEHOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD, NOT TO EXCEED THREE HUNDRED THOUSAND DOLLARS. 6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) IS ESTABLISHED FOR THE PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT LOCATED IN THIS STATE; (C) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS BEEN ESTABLISHED TO SUPPORT; (D) DEPOSITS AND HOLDS QUALI- FIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (E) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTI- CLE. 7. "NON-PUBLIC SCHOOL" MEANS ANY NOT-FOR-PROFIT PRE-KINDERGARTEN PROGRAM, ELEMENTARY, OR SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL LOCATED IN THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT PROVIDES INSTRUCTION AT ONE OR MORE LOCATIONS TO AN ELIGIBLE PUPIL IN ACCORDANCE WITH SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER. 8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL DISTRICT OR A PUBLIC SCHOOL IN THIS STATE, PROVIDED THAT SUCH PUBLIC SCHOOL DISTRICT OR PUBLIC SCHOOL: (A) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (B) IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. 9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT INCLUDE A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAP- TER. 10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY A TAXPAYER TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND OR ORGANIZATION. A CONTRIBUTION DOES NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPECIFIED STUDENT. 11. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NON-PUBLIC SCHOOL LOCATED IN THIS STATE. 12. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT S. 6409--A 46 A. 9009--A NOT TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS ANY OTHER EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT, PARENTS, LEGAL GUARDIAN, OR LEGAL GUARDIANS FOR SUCH ELIGIBLE PUPIL'S TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OF A DISTRICT OF WHICH SUCH PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP OR TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER, BUT ONLY IF THE SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION. 13. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY THAT: (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR IN CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE; (C) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND (D) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. SUCH TERM INCLUDES A PRE-KINDERGARTEN PROGRAM OR NOT-FOR-PROFIT ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM PROJECT OR INITIATIVE FOR USE IN A PUBLIC SCHOOL. S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. ALL PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT FOR QUALI- FIED CONTRIBUTIONS IN ACCORDANCE WITH SECTION FORTY-TWO OF THE TAX LAW, PROVIDED, HOWEVER, THAT SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF EITHER: (A) SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA- RATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; OR (B) THE COMMISSIONER HAS REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE. 2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA- TIONS AND LOCAL EDUCATION FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND RECEIVING APPROVAL PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE. S 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA- TION AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMIS- SIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT SUCH APPLICATION SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVE- MENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL S. 6409--A 47 A. 9009--A REVENUE CODE; (B) A LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; AND (C) FOR AN EDUCATIONAL SCHOLARSHIP ORGANIZATION, SUBMISSION OF CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS. S 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1. IN GENER- AL. THE COMMISSIONER SHALL REVIEW EACH APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. THE COMMISSIONER SHALL PUBLISH CRITERIA USED TO DETERMINE SELECTION AND ESTABLISH AN APPEALS PROCESS FOR APPLICATIONS THAT ARE NOT APPROVED. 2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED OF THE COMMISSIONER'S DETERMINATION WITHIN FIVE BUSINESS DAYS OF THE DETERMINATION. S 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A FINDING THAT SUCH ORGANIZATION, FUND, SCHOOL OR SCHOOL DISTRICT HAS VIOLATED THIS ARTICLE OR SECTION FORTY-TWO OF THE TAX LAW. THESE VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING: (A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR SECTION FORTY-TWO OF THE TAX LAW; (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS; (C) THE FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, THE DEPARTMENT, OR THE DEPARTMENT OF TAXATION AND FINANCE WHEN REQUESTED; OR (D) THE FAIL- URE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NON-ISSUANCE OF CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT REVOCATION IS WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISRE- GARD FOR THE LAW. WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSIONER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ESTAB- LISH AN APPEALS PROCESS FOR DETERMINATIONS REVOKING APPROVALS. S 1215. REPORTING AND RECORDKEEPING. 1. REPORTING. EACH EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI- FIED CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER AND THE DEPARTMENT OF TAXATION AND FINANCE BY JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE. 2. RECORDKEEPING. EACH EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT SHALL MAINTAIN RECORDS INCLUDING: (A) NOTIFICATIONS RECEIVED FROM THE DEPART- MENT OF TAXATION AND FINANCE; (B) NOTIFICATIONS MADE TO THE DEPARTMENT OF TAXATION AND FINANCE; (C) COPIES OF QUALIFIED CONTRIBUTIONS RECEIVED; (D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIBUTIONS; (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT; (F) ANNUAL FINANCIAL STATEMENTS; (G) IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND LOCAL EDUCATION FUNDS, THE APPLICATION SUBMITTED S. 6409--A 48 A. 9009--A PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER; AND (H) ANY OTHER INFORMATION PRESCRIBED BY THE COMMISSIONER. SUCH RECORDS SHALL BE MAINTAINED BY THE ENTITY OR ORGANIZATION FOR FIVE YEARS. S 1216. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF MAY FOR EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER, JOINTLY, SHALL SUBMIT A WRITTEN REPORT AS PROVIDED IN SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW. S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION. THE COMMISSIONER SHALL MAKE ANY FORMS REQUIRED TO BE FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE. S 3. The education law is amended by adding a new section 1503-a to read as follows: S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND DONATIONS. 1. THE TRUSTEES OR BOARDS OF EDUCATION OF ALL SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS OF A GENERAL LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS, DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME. 2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER GENERAL OR SPECIAL LAW TO THE CONTRARY, THE RECEIPT OF SUCH GIFTS, DONATIONS AND CONTRIBUTIONS MADE PURSUANT TO ARTICLE TWENTY-FIVE OF THIS CHAPTER, AND ANY INCOME DERIVED THEREFROM, SHALL BE DISREGARDED FOR THE PURPOSES OF ALL APPORTIONMENTS, COMPUTATIONS, AND DETERMINATIONS OF STATE AID. S 4. The tax law is amended by adding a new section 42 to read as follows: S 42. EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME MEANINGS AS PROVIDED IN SECTION TWELVE HUNDRED TEN OF THE EDUCATION LAW: "AUTHORIZED CONTRIBUTION", "CONTRIBUTION", "EDUCATIONAL PROGRAM", "EDUCATIONAL SCHOLARSHIP ORGANIZATION", "ELIGIBLE PUPIL", "LOCAL EDUCA- TION FUND", "NON-PUBLIC SCHOOL", "PUBLIC EDUCATION ENTITY", "PUBLIC SCHOOL", "QUALIFIED CONTRIBUTION", "QUALIFIED SCHOOL", "SCHOLARSHIP", AND "SCHOOL IMPROVEMENT ORGANIZATION". (B) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED AN EDUCATION SCHO- LARSHIP AND PROGRAM TAX CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (1) OF THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR. (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER OF SEVENTY-FIVE PER CENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS OR ONE MILLION DOLLARS. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED ONE MILLION DOLLARS. (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING ON THE SIXTEENTH DAY OF JANUARY OF EACH YEAR, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO THIS SECTION. ADDITIONALLY, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION S. 6409--A 49 A. 9009--A LAW. THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED, ALONG WITH THE DATE OF SUCH REVOCATION. (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA- TION, THE TAXPAYER SHALL APPLY TO THE DEPARTMENT FOR A CONTRIBUTION AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT MAY ALLOW TAXPAYERS TO MAKE MULTIPLE APPLICATIONS ON THE SAME FORM, PROVIDED THAT EACH CONTRIBUTION LISTED ON SUCH APPLICATION SHALL BE TREATED AS A SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA- TION. (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1. ISSUANCE OF CERTIF- ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF- ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF JANUARY AND ENDS ON THE FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES, BUT SHALL NOT ISSUE ANY SUCH CERTIFICATES. COMMENCING AFTER THE SIXTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN RECEIVED DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, PHASE ONE OF THE APPLICATIONS SHALL BE ALLOCATED IN TWO STEPS. IN STEP ONE, THE CREDIT CAP SHALL BE DIVIDED BY THE NUMBER OF APPLICATIONS TO DETERMINE A BASE ALLOCATION. EACH APPLICA- TION REQUESTING THE BASE ALLOCATION OR LESS SHALL BE APPROVED. IN STEP TWO, THE REMAINING FUNDS SHALL BE CALCULATED AND ALLOCATED AMONG THE OTHER APPLICATIONS ON A DOLLAR PRO-RATA BASIS. IF THE CREDIT CAP IS NOT EXCEEDED, PHASE TWO COMMENCES ON JANUARY SIXTEENTH AND ENDS ON NOVEMBER FIRST, DURING WHICH PERIOD THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST-SERVED BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLICATION FOR SUCH CERTIFICATE; PROVIDED, HOWEVER, THAT IF ON ANY DAY THE DEPARTMENT RECEIVES APPLICATIONS REQUESTING CONTRIBUTION AUTHORIZATION CERTIFICATES FOR CONTRIBUTIONS THAT IN THE AGGREGATE EXCEED THE AMOUNT OF THE REMAIN- ING AVAILABLE CREDIT ON SUCH DAY, THE AUTHORIZED CONTRIBUTION AMOUNT LISTED IN EACH CONTRIBUTION AUTHORIZATION CERTIFICATE SHALL BE THE TAXPAYER'S PRO-RATA SHARE OF THE REMAINING AVAILABLE CREDIT. FOR PURPOSES OF DETERMINING A TAXPAYER'S PRO-RATA SHARE OF REMAINING AVAIL- ABLE CREDIT, THE COMMISSIONER SHALL MULTIPLY THE AMOUNT OF REMAINING AVAILABLE CREDIT BY A FRACTION, THE NUMERATOR OF WHICH EQUALS THE TOTAL CONTRIBUTION AMOUNT LISTED ON THE TAXPAYER'S APPLICATION AND THE DENOMI- NATOR OF WHICH EQUALS THE AGGREGATE AMOUNT OF CONTRIBUTIONS LISTED ON THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES RECEIVED ON SUCH DAY. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN THE FIFTH DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN TWENTY DAYS OF RECEIPT OF SUCH APPLICATIONS. PROVIDED, HOWEVER, THAT NO CONTRIBUTION AUTHORI- ZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE ISSUED UNTIL ALL OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE HAVE BEEN ISSUED. S. 6409--A 50 A. 9009--A 2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION AUTHORIZATION CERTIFICATE SHALL STATE: (I) THE DATE SUCH CERTIFICATION WAS ISSUED; (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN NOVEMBER THIRTIETH OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIF- ICATE WAS ISSUED; (III) THE TAXPAYER'S NAME AND ADDRESS; (IV) THE AMOUNT OF AUTHORIZED CONTRIBUTIONS; (V) THE CONTRIBUTION AUTHORIZATION CERTIF- ICATE'S CERTIFICATE NUMBER; (VI) THE NAME AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION; AND (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. 3. NOTIFICATION OF THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE. UPON ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE, THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA- TION FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATE TO A TAXPAYER. SUCH NOTIFICATION SHALL INCLUDE: (I) THE TAXPAYER'S NAME AND ADDRESS; (II) THE DATE SUCH CERTIFICATE WAS ISSUED; (III) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST BE MADE BY THE TAXPAYER; (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION; (V) CONTRIBUTION AUTHORIZATION CERTIFICATE; AND (VI) ANY OTHER INFORMA- TION THAT THE COMMISSIONER DEEMS NECESSARY. (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR ANY CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS BEEN APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA- TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS RECEIVED NOTICE FROM THE DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT AUTHORIZATION CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION. 2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER NO LATER THAN THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE MADE, SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY- ER'S CONTRIBUTION AUTHORIZATION CERTIFICATE, THE TAXPAYER SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION. 3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT SHALL STATE: (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; (II) THE TAXPAYER'S NAME AND ADDRESS; (III) THE DATE FOR EACH CONTRIBUTION; (IV) THE AMOUNT OF EACH CONTRIBUTION AND THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER; (V) THE S. 6409--A 51 A. 9009--A TOTAL AMOUNT OF CONTRIBUTIONS; AND (VI) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. 4. NOTIFICATION TO THE DEPARTMENT OF THE ISSUANCE OF A CERTIFICATE OF RECEIPT. UPON THE ISSUANCE OF A CERTIFICATE OF RECEIPT, THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF THIS SECTION REGARDING THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION DATE FOR SUCH AUTHORIZED CONTRIBUTION, PROVIDE NOTIFICATION TO THE DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB- UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF DISCOVERY OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN- IZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO COMPLY WITH THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM FUND OR ORGANIZA- TION. SUCH ENTITY, PROGRAM FUND OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM FUND OR ORGANIZATION. UPON THE EXPIRATION OF THE PERIOD FOR COMPLIANCE SET FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTI- TY, PROGRAM FUND OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION. (H) CREDIT CAP. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN AND ALL FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, AND LOCAL EDUCA- TION FUNDS SHALL BE TWENTY MILLION DOLLARS. THE MAXIMUM PERMITTED CRED- ITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN AND ALL FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SHALL BE FIFTY MILLION DOLLARS. (I) ADDITIONS TO THE CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE OF A CERTIFICATE OF RECEIPT SHALL BE ADDED TO THE CAP PRESCRIBED IN SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR. (J) OTHER REQUIREMENTS; MISCELLANEOUS. RECORD KEEPING. EACH TAXPAYER SHALL, FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT PROVIDE FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN RECORDS OF THE FOLLOWING INFORMATION: (I) CONTRIBUTION AUTHORIZATION CERTIFICATES OBTAINED PURSUANT TO SUBDIVISION (F) OF THIS SECTION, AND (II) CERTIFICATES OF RECEIPT OBTAINED PURSUANT TO SUBDIVISION (G) OF THIS SECTION. S. 6409--A 52 A. 9009--A (K) JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF MAY FOR EACH CALENDAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES NINE-A AND TWENTY-TWO OF THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLICATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY (III) THE GEOGRAPH- ICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF (A) THE APPLICA- TIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES, AND (B) THE PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING GEOGRAPHICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF THE NUMBER OF ELIGIBLE PUPILS THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOL- ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT AND THE COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT OF EDUCATION SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA- TION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE DEPARTMENT OF EDUCATION OR THE COMMISSIONER OF EDUCATION. (1) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 51; AND 2. ARTICLE 22: SECTION 606, SUBSECTION (CCC). S 5. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE TO THE EXTENT SUCH CONTRIBUTIONS ARE USED AS THE BASIS OF THE CALCU- LATION OF THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT ALLOWED UNDER SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. S 6. Section 210-B of the tax law is amended by adding a new subdivi- sion 51 to read as follows: 51. EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL 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 SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. IF THE AMOUNT OF CREDIT ALLOW- ABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE S. 6409--A 53 A. 9009--A CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 7. 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) EDUCATION SCHOLARSHIP AMOUNT OF CREDIT UNDER AND PROGRAM TAX CREDIT UNDER SUBDIVISION FIFTY-ONE OF SECTION SUBSECTION (CCC) TWO HUNDRED TEN-B S 8. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. ALLOWANCE OF CRED- IT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS ALLOWED FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 9. Subsection (c) of section 615 of the tax law is amended by adding a new paragraph 9 to read as follows: (9) WITH RESPECT TO A TAXPAYER WHO HAS CLAIMED THE EDUCATION SCHOLAR- SHIP AND PROGRAM TAX CREDIT FOR QUALIFIED CONTRIBUTIONS PURSUANT TO SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAY- ER'S NEW YORK ITEMIZED DEDUCTION SHALL BE REDUCED BY ANY CHARITABLE CONTRIBUTION DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS. S 10. Section 606 of the tax law is amended by adding a new subsection (v) to read a follows: (V) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, NOT TO EXCEED TWO HUNDRED DOLLARS, THAT IS EQUAL TO THE AMOUNT PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUC- TIONAL MATERIALS AND SUPPLIES WITH RESPECT TO CLASSROOM BASED INSTRUC- TION IN A PUBLIC OR NON-PUBLIC ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE, INCLUDING A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW, PROVIDED, HOWEVER, THE TAXPAYER MUST BE A TEACHER OR INSTRUCTOR AT SUCH SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING THE TAXABLE YEAR. FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE DESIGNATED FOR CLASSROOM USE. (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. (3) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY UNDER THIS SUBSECTION SHALL BE TEN MILLION DOLLARS. IN ORDER TO CLAIM A CREDIT UNDER THIS SUBSECTION, A TAXPAYER SHALL BE REQUIRED TO APPLY TO THE DEPARTMENT FOR APPROVAL DURING THE TAXABLE YEAR. THE TAXPAYER SHALL BE REQUIRED TO SUBMIT DOCUMENTATION DEMONSTRATING THAT THE TAXPAYER IS A TEACHER OR INSTRUCTOR AS REQUIRED UNDER THIS SUBSECTION AND THAT THE TAXPAYER PURCHASED MATERIALS AND SUPPLIES. THE DEPARTMENT SHALL REVIEW THE APPLICATION AND PROVIDE A TAXPAYER WITH A CERTIFICATE THAT SPECIFIES HOW MUCH CREDIT THE TAXPAYER IS ENTITLED TO CLAIM. IF REQUIRED BY THE COMMISSIONER, THE TAXPAYER MUST SUBMIT THAT CERTIFICATE WITH HIS OR HER TAX RETURN. THE COMMISSIONER SHALL ALLOCATE THE CREDITS ON A FIRST COME S. 6409--A 54 A. 9009--A FIRST SERVED BASIS AND PRESCRIBE THE NECESSARY PROCEDURES FOR REVIEWING THE APPLICATIONS AND PRODUCING THE CERTIFICATES. S 11. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CERTAIN EXPENSES OF ELIGIBLE EDUCATORS PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF SUBSECTION (A) OF SECTION SIXTY-TWO OF THE INTERNAL REVENUE CODE TO THE EXTENT SUCH EXPENSES ARE USED AS THE BASIS OF THE CALCULATION OF THE CREDIT ALLOWED UNDER SUBSECTION (V) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 12. Section 606 of the tax law is amended by adding a new subsection (w) to read as follows: (W) FAMILY CHOICE EDUCATION CREDIT. (1) GENERAL. A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH FOUR OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR QUALI- FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES. (2) DEFINITIONS. FOR THE PURPOSES OF THIS CREDIT: (A) THE TERM "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE TAXPAYER WITH RESPECT TO WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR. (B) THE TERM "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTEND- ANCE OF AN ELIGIBLE STUDENT AT A PUBLIC SCHOOL OR A NON-PUBLIC SCHOOL, AS DEFINED IN SECTION FORTY-TWO OF THIS CHAPTER. PROVIDED, HOWEVER, TUITION PAYMENTS MADE PURSUANT TO THE RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL AID SHALL BE EXCLUDED FROM THE DEFINITION OF "QUALIFIED PRIMA- RY OR SECONDARY EDUCATION TUITION EXPENSES". (3) ELIGIBILITY. TO BE ELIGIBLE FOR THIS CREDIT, THE NEW YORK ADJUSTED GROSS INCOME OF THE TAXPAYER FOR THE TAXABLE YEAR, OR IN THE CASE OF A MARRIED COUPLE FILING A JOINT RETURN, THE NEW YORK ADJUSTED GROSS INCOME OF THE MARRIED COUPLE FOR THE TAXABLE YEAR, MAY NOT EXCEED SIXTY THOU- SAND DOLLARS. (4) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE LESSER OF FIVE HUNDRED DOLLARS PER ELIGIBLE STUDENT OR THE ACTUAL AMOUNT OF QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER PER ELIGIBLE STUDENT DURING THE TAXABLE YEAR. (5) REFUNDABILITY. 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 CREDIT- ED 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 13. Severability. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. S 14. This act shall take effect immediately and shall apply to taxa- ble years beginning on or after January 1, 2017. PART T Section 1. The tax law is amended by adding a new section 187-t to read as follows: S 187-T. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE THRUWAY, AND PAYS NEW S. 6409--A 55 A. 9009--A YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE ALLOWED IN AN AMOUNT THAT WILL REDUCE THE TAX TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW: (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSI- NESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN PARAGRAPH (A) OF THIS SUBDI- VISION. (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 49 to read as follows: 49. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (A) A TAXPAYER THAT OPER- ATES A MOTOR VEHICLE, OR A FARM VEHICLE IN CONNECTION WITH FARM OPER- ATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREIN- AFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDI- VISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR S. 6409--A 56 A. 9009--A REDUCES THE TAX TO SUCH AMOUNT, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOW- ING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (2) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (3) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (4) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (C)(1) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (2) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (3) A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH ONE OR TWO OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CREDIT UNDER BOTH SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH IN THE SAME TAXA- BLE YEAR. (4) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH. (D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- S. 6409--A 57 A. 9009--A TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE, OR A FARM VEHICLE IN CONNECTION WITH FARM OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRU- WAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAY- ER'S TAX FOR SUCH YEAR, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (B) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (C) "E-ZPASS INDIVIDUAL ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN AN INDIVIDUAL'S NAME. (D) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (E) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS INDIVIDUAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID AT LEAST FIFTY DOLLARS IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. (B) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMER- CIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (C) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE S. 6409--A 58 A. 9009--A IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (D) A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH (A), (B) OR (C) OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CRED- IT UNDER MORE THAN ONE SUBPARAGRAPH OF THIS PARAGRAPH IN THE SAME TAXA- BLE YEAR. (E) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPTS RECORDS CREATED AND MAINTAINED BY THE ENTITY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT OF TAXATION AND FINANCE FOR THIS PURPOSE. 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) NEW YORK STATE AMOUNT OF CREDIT UNDER THRUWAY TOLLS TAX CREDIT SUBDIVISION FORTY-NINE OF UNDER SUBSECTION (CCC) SECTION TWO HUNDRED TEN-B S 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE, OR TWO HUNDRED FIFTY DOLLARS IF SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE IS APPLICABLE. 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 THAT TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY. (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3) (A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY S. 6409--A 59 A. 9009--A PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR. (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF NEW YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 6. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. S 7. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 8. Paragraph 2 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (W) to read as follows: (W) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION (DD) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS ARTICLE. S 9. This act shall take effect immediately. PART U Section 1. Section 19 of Part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part V of chapter 59 of the laws of 2014, is amended to read as follows: S 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2016] 2021 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through S. 6409--A 60 A. 9009--A sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. S 2. This act shall take effect immediately. PART V Section 1. Section 37 of the tax law, as added by chapter 109 of the laws of 2012, subdivision (c) as amended by section 52 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S 37. [Beer] ALCOHOLIC BEVERAGE production credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chap- ter, that is registered as a distributor under article eighteen of this chapter, and that produces sixty million or fewer gallons of beer OR CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT HUNDRED THOU- SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall be allowed a credit against such taxes in the amount specified in subdi- vision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. Provided, however, that no credit shall be allowed for any beer, CIDER, WINE OR LIQUOR produced in excess of fifteen million five hundred thousand gallons in the taxable year. If the taxpayer is a partner in a partnership or shareholder of a New York S corporation, then the cap imposed by the preceding sentence shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed that cap. (b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state [on or after April first, two thousand twelve] shall be determined as follows: (1) for the first five hundred thousand gallons of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year, the credit shall equal fourteen cents per gallon; and (2) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year in excess of five hundred thousand gallons, the credit shall equal four and one-half cents per gallon. (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article 9-A: Section 210-B, subdivision 39. (2) Article 22: Section 606, subsections (i) and (uu). S 2. Subdivision 39 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 39. [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in para- graph (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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpay- ment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. S. 6409--A 61 A. 9009--A S 3. Subdivision 3 of section 420 of the tax law, as amended by chap- ter 94 of the laws of 1934, is amended to read as follows: 3. "Alcoholic beverages" mean and include CIDERS, AS DEFINED BY THE ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors. S 4. Section 424 of the tax law is amended by adding a new subdivision 6 to read as follows: 6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE TO A CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING. S 5. Clause (xxxiv) of subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law, as amended by section 68 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (xxxiv) [Beer] ALCOHOLIC BEVERAGE Amount of credit production credit under under subdivision thirty-nine of subsection (uu) section two hundred ten-B S 6. Subsection (uu) of section 606 of the tax law, as added by chap- ter 109 of the laws of 2012, is amended to read as follows: (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an 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 7. Subdivision 13 of section 1118 of the tax law, as added by section 2 of part U of chapter 59 of the laws of 2015, is amended to read as follows: (13) In respect to the use of the following items at a tasting held by a licensed [brewery, farm brewery, cider producer, farm cidery, distil- lery or farm distillery] PRODUCER OF ALCOHOLIC BEVERAGES in accordance with the alcoholic beverage control law: (i) the alcoholic beverage or beverages authorized by the alcoholic beverage control law to be furnished at no charge to a customer or prospective customer at such tasting for consumption at such tasting; and (ii) bottles, corks, caps and labels used to package such alcoholic beverages. S 8. This act shall take effect immediately, provided, however, that: sections one, two, five and six of this act shall apply to taxable years beginning on or after January 1, 2016; sections three and four of this act shall apply to taxable periods beginning on or after April 1, 2016; and section seven of this act shall apply to uses occurring on and after June 1, 2016. PART W Section 1. The tax law is amended by adding a new section 478-a to read as follows: S 478-A. JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER- MINE THE AMOUNT OF SUCH TAX AND ASSESS THE SAME, TOGETHER WITH ALL INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE- FOR PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN HIS OR HER RETURN IS REQUIRED TO BE FILED. THE AMOUNT SO DETERMINED SHALL BECOME DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST S. 6409--A 62 A. 9009--A WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS NOTICE THEREOF IS GIVEN TO HIM OR HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH DETERMINATION EXCEPT TO THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE FINDS THAT JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY JEOPARDY ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSION- ER, CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THERE- ON, OR ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE ADMINISTRATIVE LAW JUDGE OR THE TAX APPEALS TRIBUNAL OR BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE ASSESSMENT OR ANY SUCH REDUCTION THEREOF BECOMES FINAL AND NOT SUBJECT TO FURTHER REVIEW. IF SUCH A BOND IS FILED AND THEREAFTER A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IS COMMENCED AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, DEPOSIT OF THE TAXES, PENALTIES AND INTEREST ASSESSED SHALL NOT BE REQUIRED AS A CONDITION PRECEDENT TO THE COMMENCEMENT OF SUCH PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED, UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION TO THE DETERMINATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN EXCEPTION IS TIMELY FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE OF ITS DECISION TO THE PERSON AGAINST WHOM THE ASSESSMENT IS MADE; PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS BEEN DULY NOTIFIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE COMMISSIONER DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTE- NANCE WILL GREATLY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE. S 2. This act shall take effect immediately. PART X Section 1. Paragraph 2 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (2) Except as provided in subdivision (r) of section eleven hundred eleven of this part, when occupancy is provided, for a single consider- ation, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this article, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, the entire consideration shall be treated as rent subject to tax under para- graph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated separately from the price of such property, services, amusement charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such rent is reasonable in relation to the value of such property, services, amusement charges or other items, only such separately stated rent will be subject to tax under paragraph one of this subdivision. S. 6409--A 63 A. 9009--A S 2. Section 1115 of the tax law is amended by adding a new subdivi- sion (kk) to read as follows: (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A ROOM REMARKETER FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS- SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL BE ADMINISTERED BY THE COMMISSIONER IN CONFORMITY WITH THE RULES FOR EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE. S 3. Paragraph 4 of subdivision a of section 11-2502 of the adminis- trative code of the city of New York, as amended by section 4 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (4) (i) When occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this chapter, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVI- SION 1 OF THIS SECTION, the entire consideration shall be treated as rent subject to tax under paragraph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated sepa- rately from the price of such property, services, amusement charges or other items on any sales slip, invoice, receipt, or other statement given the occupant and such rent is reasonable in relation to the value of such property, services, amusement charges, or other items, only such separately stated rent will be subject to tax under this subdivision. (ii) In regard to the collection of tax on occupancies by remarketers, when occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, whether or not such other items are taxable, the rent portion of the consideration for such sale shall be computed as follows: the total consideration for the sale multiplied by a fraction, the numerator of which shall be the consider- ation paid to the hotel for the occupancy and the denominator of which shall be the consideration paid to the hotel for the occupancy plus the consideration paid to the providers of the other items being sold, or by any other reasonable method pursuant to which the rent portion of consideration would be no less than the computation of rent portion of consideration under subparagraph (i) of this paragraph. Nothing herein shall be construed to subject to tax or exempt from tax any service or property or amusement charge or other items otherwise subject to tax or exempt from tax under this chapter. S 4. Section 11-2502 of the administrative code of the city of New York is amended by adding a new subdivision 1 to read as follows: 1. AN OCCUPANCY THAT AN OPERATOR CONVEYS OR FURNISHES TO A ROOM REMARKETER THAT THE ROOM REMARKETER INTENDS TO CONVEY OR FURNISH, DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS SECTION, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE. THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO THE COMMIS- SIONER OF FINANCE UPON REQUEST. S 5. This act shall take effect immediately and apply to rent paid for occupancies on or after June 1, 2016. S. 6409--A 64 A. 9009--A PART Y Section 1. The section heading of section 951-a of the tax law, as added by chapter 190 of the laws of 1990, is amended to read as follows: [Definitions] GENERAL PROVISIONS AND DEFINITIONS. S 2. Section 951-a of the tax law is amended by adding a new subsection (f) to read as follows: (F) TAX TREATMENT OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI- CILE. NOTWITHSTANDING ANY OTHER PROVISION OF ANY OTHER LAW TO THE CONTRARY, THE MAKING OF A FINANCIAL CONTRIBUTION, GIFT, BEQUEST, DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN ANY AMOUNT OR THE DONATION OR LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING, GIVING OR DONATION OF UNCOMPENSATED TIME, OR ANY COMBINATION OF THE FOREGOING, CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, OR TO A NOT-FOR-PROFIT ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION ONE HUNDRED SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE TIME OF HIS OR HER DEATH. S 3. This act shall take effect immediately. PART Z Section 1. Subdivision 2 of section 89-b of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: 2. The dedicated highway and bridge trust fund shall consist of [two] THREE accounts: (a) the special obligation reserve and payment account; [and] (b) the highway and bridge capital account; AND (C) THE AVIATION PURPOSE ACCOUNT. Moneys in each account shall be kept separate and not commingled with any other moneys in the custody of the comptroller. S 2. Section 89-b of the state finance law is amended by adding a new subdivision 4-a to read as follows: 4-A. (A) THE AVIATION PURPOSE ACCOUNT SHALL CONSIST OF ALL MONEYS REQUIRED TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW AND ANY OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT OR SOURCE. (B) MONEYS IN THE AVIATION PURPOSE ACCOUNT SHALL BE UTILIZED FOR AIRPORTS AND AVIATION FACILITIES AND EQUIPMENT AND RELATED PROJECTS, INCLUDING BUT NOT LIMITED TO THE ACQUISITION OF REAL OR TANGIBLE PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER- VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL- ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT- ED BY FEDERAL LAW. S 3. Section 312 of the tax law, as amended by section 32 of part K of chapter 61 of the laws of 2011, is amended to read as follows: S 312. Deposit and disposition of revenue.-- (a) Except as otherwise provided, of all taxes, interest and penalties collected or received on or after April first, two thousand one, from the taxes imposed by [sections] SECTION three hundred one-a [and three hundred one-e] of this article, (i) initially eighty and three-tenths percent shall be deposit- ed, as prescribed by subdivision (d) of section three hundred one-j of this article and (ii) nineteen and seven-tenths percent shall be depos- ited in such mass transportation operating assistance fund to the credit of the metropolitan mass transportation operating assistance account and the public transportation systems operating assistance account thereof S. 6409--A 65 A. 9009--A in the manner provided by subdivision eleven of section one hundred eighty-two-a of this chapter. Provided, further that on or before the twenty-fifth day of each month commencing with April, two thousand one, the comptroller shall deduct the amount of six hundred twenty-five thou- sand dollars prior to any deposit or disposition of the taxes, interest, and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall deposit such amount in the dedicated fund accounts pursuant to subdivision (d) of section three hundred one-j of this article. Provided, further, that commencing January fifteenth, nineteen hundred ninety-one, and on or before the tenth day of March and the fifteenth day of June and Septem- ber of such year, the commissioner shall, based on information supplied by taxpayers and other appropriate sources, estimate the amount of the utility credit authorized by section three hundred one-d of this article which has been accrued to reduce tax liability under section one hundred eighty-six-a of this chapter during the period covered by such estimate and certify to the state comptroller such estimated amount. The comp- troller shall forthwith, after receiving such certificate, deduct the amount of such credit so certified by the commissioner prior to any deposit or disposition of the taxes, interest and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall pay such amount so certified and deducted into the state treasury to the credit of the general fund. Also, subse- quently, during the fiscal year when the commissioner becomes aware of changes or modifications with respect to actual credit usage, the commissioner shall, as soon as practicable, issue a certification setting forth the amount of any required adjustment to the amount of actual credit usage previously certified. After receiving the certif- icate of the commissioner with respect to actual credit usage or modifi- cation of the same, the comptroller shall forthwith adjust general fund receipts and the revenues to be deposited or disposed of under this article to reflect the difference so certified by the commissioner. The commissioner shall not be liable for any overestimate or underestimate of the amount of the utility credit which has been accrued to reduce tax liability under such section one hundred eighty-six-a. Nor shall the commissioner be liable for any inaccuracy in any certificate with respect to the amount of such credit actually used or any required adjustment with respect to actual credit usage, but the commissioner shall as soon as practicable after discovery of any error adjust the next certification under this section to reflect any such error. Prior to making deposits as provided in this section, the comptroller shall retain such amount as the commissioner may determine to be neces- sary, subject to the approval of the director of the budget, for reason- able costs of the department in administering and collecting the taxes deposited pursuant to this section and for refunds and reimbursements with respect to such taxes, out of which the comptroller shall pay any refunds or reimbursements of such taxes to which taxpayers shall be entitled. (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E OF THIS ARTICLE SHALL BE DEPOSITED IN THE AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. S. 6409--A 66 A. 9009--A S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as amended by chapter 261 of the laws of 1988, is amended to read as follows: (1) Every distributor of motor fuel shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the author- ity of article twenty-nine of this chapter, a tax on each gallon of motor fuel (i) which he imports or causes to be imported into this state for use, distribution, storage or sale in the state or produces, refines, manufactures or compounds in this state or (ii) if the tax has not been imposed prior to its sale in this state, which he sells (which acts shall in regard to motor fuel hereinafter in this article be encom- passed by the phrase "imported, manufactured or sold"), except when imported, manufactured or sold under circumstances which preclude the collection of such tax by reason of the United States constitution and of the laws of the United States enacted pursuant thereto or when imported or manufactured by an organization described in paragraph one or two of subdivision (a) of section eleven hundred sixteen of this article or a hospital included in the organizations described in para- graph four of such subdivision for its own use and consumption and except kero-jet fuel when imported by an airline for use in its airplanes, AND EXCEPT AVIATION GASOLINE SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 5. Subparagraph (i) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; AND ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT; and, unless such city, county or school district elects other- wise, shall omit the provision for credit or refund contained in clause six of subdivision (a) or subdivision (d) of section eleven hundred nineteen of this chapter. S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision (a) of section 1210 of tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, are amended and a new subparagraph (xiv) is added to read as follows: (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of section eleven hundred fifteen of this chapter; AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. Any reference in this chapter or in any local law, ordinance or resolution enacted pursuant to the authority of this arti- cle to former subdivisions (n) or (p) of this section shall be deemed to S. 6409--A 67 A. 9009--A be a reference to clauses (xii) or (xiii) of this paragraph, respective- ly, and any such local law, ordinance or resolution that provides the exemptions provided in such former subdivisions (n) and/or (p) shall be deemed instead to provide the exemptions provided in clauses (xii) and/or (xiii) of this paragraph. S 7. Notwithstanding any law to the contrary, the comptroller is here- by authorized and directed to transfer from the general fund for deposit into the mass transportation operating assistance fund, pursuant to section 88-a of the state finance law and the dedicated mass transporta- tion trust fund, pursuant to section 89-c of the state finance law, upon request of the director of the budget, on or before March 31 of each year, an amount equal to the amount of revenue received by the commis- sioner of taxation and finance during the state fiscal year from petro- leum business taxes imposed pursuant to the authority of section 301-e of the tax law that would have otherwise been directed to such funds pursuant to section 312 of the tax law as such section was in effect on the day before this act became a law. S 8. Sections one, two and seven of this act shall take effect April 1, 2017; provided however that sections three, four, five and six of this act shall take effect December 1, 2017; and provided further that if section 19 of part W1 of chapter 109 of the laws of 2006 shall have not expired on or before such date then section four of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2006 takes effect. PART AA Section 1. Subdivision 2 of section 228 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, the opening paragraph as amended by chapter 236 of the laws of 2015, is amended to read as follows: 2. The New York state gaming commission shall, as a condition of racing, require any franchised corporation and every other corporation subject to its jurisdiction to withhold one percent of all purses, except that for the franchised corporation, starting on September first, two thousand seven and continuing through August thirty-first, two thou- sand sixteen, two percent of all purses shall be withheld, and, in the case of the franchised corporation, to pay such sum to the horsemen's organization or its successor that was first entitled to receive payments pursuant to this section in accordance with rules of the commission adopted effective November third, nineteen hundred eighty- three representing at least fifty-one percent of the owners and trainers [utilizing] USING the facilities of such franchised corporation, on the condition that such horsemen's organization shall expend [as much as is necessary, but not to exceed] one-half of one percent of such total sum[,] TO CONDUCT EQUINE DRUG TESTING RESEARCH AND to acquire and main- tain the equipment required to [establish a program at a state college within this state with an approved equine science program to] test for the presence of DRUGS, INCLUDING BUT NOT LIMITED TO steroids, in horses AT A SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, provided further that the qualified organization shall also, in an amount to be determined by its board of directors, annually include in its expenditures for benevolence programs, funds to support an organization providing services necessary to backstretch employees, and, in the case of every other corporation, to pay such one percent sum of purses to the horsemen's organization or its successor that was first S. 6409--A 68 A. 9009--A entitled to receive payments pursuant to this section in accordance with rules of the commission adopted effective May twenty-third, nineteen hundred eighty-six representing at least fifty-one percent of the owners and trainers [utilizing] USING the facilities of such corporation. In either case, any other horsemen's organization may apply to the [board] COMMISSION to be approved as the qualified organization to receive payment of the one percent of all purses by submitting to the [board] COMMISSION proof of both, that (i) it represents more than fifty-one percent of all the owners and trainers [utilizing] USING the same facilities and (ii) the horsemen's organization previously approved as qualified by the [board] COMMISSION does not represent fifty-one percent of all the owners and trainers [utilizing] USING the same facil- ities. If the [board] COMMISSION is satisfied that the documentation submitted with the application of any other horsemen's organization is conclusive with respect to items (i) and (ii) of this paragraph, it may approve the applicant as the qualified recipient organization. In the best interests of racing, upon receipt of such an application, the [board] COMMISSION may direct the payments to the previously quali- fied horsemen's organization to continue uninterrupted, or it may direct the payments to be withheld and placed in interest-bearing accounts for a period not to exceed ninety days, during which time the [board] COMMISSION shall review and approve or disapprove the application. Funds held in such manner shall be paid to the organization approved by the [board] COMMISSION. In no event shall the [board] COMMISSION accept more than one such application in any calendar year from the same horsemen's organization. The funds authorized to be paid by the [board] COMMISSION are to be used exclusively for the benefit of those horsemen racing in New York state through the administrative purposes of such qualified organiza- tion, benevolent activities on behalf of backstretch employees, and for the promotion of equine research. S 2. Section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 60 of the laws of 1993, subdivision 1 as amended by chapter 15 of the laws of 2010, and subdivision 2 as amended by chap- ter 18 of the laws of 2008, is amended to read as follows: S 902. Equine drug testing and expenses. 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a [state college within this state with an approved equine science program] SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wager- ing board] GAMING COMMISSION shall promulgate any rules and regulations necessary to implement the provisions of this section, including admin- istrative penalties of loss of purse money, fines, or denial, suspen- sion[,] or revocation of a license for racing drugged horses. 2. Notwithstanding any inconsistent provision of law, all costs and expenses of the [state racing and wagering board] GAMING COMMISSION for equine drug testing and research shall be paid from an appropriation from the state treasury, on the certification of the [chairman] CHAIR of the [state racing and wagering board] GAMING COMMISSION, upon the audit and warrant of the comptroller and pursuant to a plan developed by the [state racing and wagering board] GAMING COMMISSION as approved by the director of the budget. S 3. This act shall take effect immediately; provided, however, section two of this act shall take effect upon expiration of an existing contract with a New York state college within the state with an approved S. 6409--A 69 A. 9009--A equine science program, pursuant to section 902 of the racing, pari-mu- tuel wagering and breeding law; provided that the gaming commission shall notify the legislative bill drafting commission upon the occur- rence of the enactment of the legislation provided for in section two of this act in order that the commission may maintain an accurate and time- ly effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART BB Section 1. Subdivision 1 of section 236 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: 1. Every corporation authorized under this chapter to conduct pari-mu- tuel betting at a race meeting on races run thereat, except as provided in section two hundred thirty-eight of this article with respect to the franchised corporation, shall distribute all sums deposited in any pari- mutuel pool to the holders of winning tickets therein, providing such tickets be presented for payment before April first of the year follow- ing the year of their purchase, less an amount [which] THAT shall be established and retained by such racing corporation of between fourteen to twenty [per centum] PERCENT of the total deposits in pools resulting from regular on-track bets and less sixteen to twenty-two [per centum] PERCENT of the total deposits in pools resulting from multiple on-track bets and less twenty to thirty [per centum] PERCENT of the total depos- its in pools resulting from exotic on-track bets and less twenty to thirty-six [per centum] PERCENT of the total pools resulting from super exotic on-track bets, plus the breaks. The retention rate to be estab- lished is subject to the prior approval of the [racing and wagering board] GAMING COMMISSION. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter and breaks are hereby defined as [the odd cents over any multiple of ten, or for exotic bets over any multiple of fifty, or for super exotic bets, over any multiple of one hundred, calculated on the basis of one dollar, other- wise payable to a patron provided, however, that effective after October fifteenth, nineteen hundred ninety-four breaks are hereby defined as] the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. Of the amount so retained there shall be paid by such corpo- ration to the department of taxation and finance as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meeting held by such corporation, which tax is hereby levied, the following percentages of the total pool, plus fifty- five [per centum] PERCENT of the breaks; the applicable rates for regu- lar and multiple bets shall be one and one-half [per centum] PERCENT; the applicable rates for exotic bets shall be six and three-quarter [per centum] PERCENT and the applicable rate for super exotic bets shall be seven and three-quarter [per centum] PERCENT. Effective on and after S. 6409--A 70 A. 9009--A September first, nineteen hundred ninety-four, the applicable tax rate shall be one [per centum] PERCENT of all wagers, provided that, an amount equal to one-half the difference between the taxation rate for on-track regular, multiple and exotic bets as of December thirty-first, nineteen hundred ninety-three and the rates on such on-track wagers as herein provided shall be used exclusively for purses. Provided, however, that for any twelve-month period beginning on April first in nineteen hundred ninety and any year thereafter, each of the applicable rates set forth above shall be increased by one-quarter of one [per centum] PERCENT on all on-track bets of any such racing corporation that did not expend an amount equal to at least one-half of one [per centum] PERCENT of its on-track bets during the immediately preceding calendar year for enhancements consisting of capital improvements as defined by section two hundred thirty-seven of this article, repairs to its physical plant, structures, and equipment used in its racing or wagering operations as certified by the [state racing and wagering board] GAMING COMMISSION to the commissioner of taxation and finance no later than eighty days after the close of such calendar year, and five special events at each track in each calendar year, not otherwise conducted in the ordinary course of business, the purpose of which shall be to encourage, attract and promote track attendance and encourage new and continued patronage, which events shall be [approved by the racing and wagering board] SUBJECT TO THE PRIOR APPROVAL OF THE GAMING COMMISSION for purposes of this subdivision. In the determination of the amounts expended for such enhancements, the [board] GAMING COMMISSION may consider the immediately preceding [twelve month] TWELVE-MONTH calendar period or the average of the two immediately preceding [twelve month] TWELVE-MONTH calendar peri- ods. Provided further, however, that of the portion of the increased amounts retained by such corporation above those amounts retained in nineteen hundred eighty-four, an amount of such increase shall be distributed to purses in the same proportion as commissions and purses were distributed during nineteen hundred eighty-four as certified by the [board] GAMING COMMISSION. Such corporation in the second zone shall receive a credit against the daily tax imposed by this subdivision in an amount equal to FOUR-TENTHS OF one [per centum] PERCENT of total daily pools resulting from the simulcast of such corporation's races to licensed facilities operated by regional off-track betting corporations in accordance with section one thousand eight of this chapter, provided however, that sixty [per centum] PERCENT of the amount of such credit shall be used exclusively to increase purses for overnight races conducted by such corporation; and, provided further, that in no event shall such total daily credit exceed FOUR-TENTHS OF one [per centum] PERCENT of the total daily pool of such corporation. [Provided, however, that on and after September first, nineteen hundred ninety-four such credit shall be four-tenths percent of total daily pools resulting from such simulcasting and that in no event shall such total daily credit equal four-tenths percent of the total daily pool of such corporation.] Such corporation shall pay to the New York state thoroughbred breeding and development fund one-half of one [per centum] PERCENT of the total daily on-track pari-mutuel pools from regular, multiple and exotic bets, and three [per centum] PERCENT of super exotic bets. The corporation shall receive credit as a reduction of the tax by the state for the privilege of conducting pari-mutuel betting for the amounts, except amounts paid from super exotic betting pools, paid to the New York state thoroughbred breeding and development fund after January first, nineteen hundred seventy-eight. S. 6409--A 71 A. 9009--A Such corporation shall distribute to purses an amount equal to fifty [per centum] PERCENT of any compensation it receives from simulcasting or from wagering conducted outside the United States. Such corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari- mutuel pools of such corporation. S 2. Paragraph (d) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (d) (I) The pari-mutuel tax rate authorized by paragraph (a) of this subdivision shall be effective so long as a franchised corporation noti- fies the [racing and wagering board] GAMING COMMISSION by August fifteenth of each year that such pari-mutuel tax rate is effective of its intent to conduct a race meeting at Aqueduct racetrack during the months of December, January, February, March and April. For purposes of this paragraph such race meeting shall consist of not less than ninety- five days of racing. Not later than May first of each year that such pari-mutuel tax rate is effective, the [racing and wagering board] GAMING COMMISSION shall determine whether a race meeting at Aqueduct racetrack consisted of the number of days as required by this paragraph. In determining the number of race days, cancellation of a race day because of an act of God[, which] THAT the [racing and wagering board] GAMING COMMISSION approves or because of weather conditions that are unsafe or hazardous which the [racing and wagering board] GAMING COMMIS- SION approves shall not be construed as a failure to conduct a race day. Additionally, cancellation of a race day because of circumstances beyond the control of such franchised corporation for which the [racing and wagering board] GAMING COMMISSION gives approval shall not be construed as a failure to conduct a race day. If the [racing and wagering board] GAMING COMMISSION determines that the number of days of racing as required by this paragraph have not occurred then the pari-mutuel tax rate in paragraph (a) of this subdivision shall revert to the pari-mutu- el tax rates in effect prior to January first, nineteen hundred ninety- five. (II) Such franchised corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari-mutuel pools of such franchised corporation. S 3. Paragraph d of subdivision 1 of section 318 of the racing, pari- mutuel wagering and breeding law, as amended by section 3 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. Every harness racing association or corporation shall pay to the [board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily on-track pari-mutuel pools of such association or corporation. S 4. The opening paragraph and the opening paragraph of subdivision 1 of section 527 of the racing, pari-mutuel wagering and breeding law, the opening paragraph as amended by chapter 18 of the laws of 2008 and the opening paragraph of subdivision 1 as amended by chapter 300 of the laws of 2015, are amended to read as follows: Each regional corporation conducting off-track betting shall distrib- ute all sums deposited in any pari-mutuel pool through such corporation to the holders of winning tickets therein, providing such tickets be presented for payment prior to April first of the year following the year of their purchase, less an amount [which] THAT it shall retain at S. 6409--A 72 A. 9009--A the same rate established by the track accepting wagers from each such regional corporation. The disposition of the retained commission from pools resulting from regular, multiple or exotic bets, as the case may be, whether placed on races run within a region or outside a region, conducted by racing corporations, harness racing associations or corporations, quarter horse racing associations or corporations or races run outside the state shall be governed by the tables in paragraphs a and b of this subdivision. The rate denominated "state tax" shall represent the rate of a reasonable tax imposed upon the retained commission for the privilege of conducting off-track pari-mutuel betting, which tax is hereby levied and shall be payable in the manner set forth in this section. Each off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools of such corporation. Each corporation shall also pay twenty [per centum] PERCENT of the breaks derived from bets on harness races and fifty [per centum] PERCENT of the breaks derived from bets on all other races to the agriculture and New York State horse breeding and development fund and to the thoroughbred breeding and development fund, the total of such payments to be apportioned fifty [per centum] PERCENT to each such fund. For the purposes of this section, the New York city, Suffolk, Nassau, and the Catskill regions shall constitute a single region and any thoroughbred track located within the Capital District region shall be deemed to be within such single region. A "regional meeting" shall refer to either harness or thoroughbred meetings, or both, except that a franchised corporation shall not be a regional track for the purpose of receiving distributions from bets on thoroughbred races conducted by a thorough- bred track in the Catskill region conducting a mixed meeting. With the exception of a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Tioga or Saratoga county after January first, two thousand five, racing corporations first licensed to conduct pari-mutuel racing after January first, nineteen hundred eighty-six or a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Genesee County after January first, two thousand five, and quarter horse tracks shall not be "regional tracks"; if there is more than one harness track within a region, such tracks shall evenly divide payments made pursuant to the tables in paragraphs a and b of this subdivision when neither track is running. In the event a track elects to reduce its retained percentage from any or all of its pari-mutuel pools, the payments to the track holding the race and the regional track required by paragraphs a and b of this subdivision shall be reduced in proportion to such reduction. Nothing in this section shall be construed to authorize the conduct of off-track betting contrary to the provisions of section five hundred twenty-three of this article. S 5. Paragraph a of subdivision 1 of section 904 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, are amended to read as follows: a. The applicable state tax provided for in paragraphs a and b of subdivision one of section five hundred twenty-seven of this chapter shall be one-half [per centum] PERCENT for regular, multiple and exotic bets. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which S. 6409--A 73 A. 9009--A fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 6. Paragraph g of subdivision 3 of section 1007 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: g. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 7. Paragraph b of subdivision 3 of section 1008 of the racing, pari- mutuel wagering and breeding law, as amended by section 7 of part B of chapter 59 of the laws of 2005, is amended to read as follows: b. Of the sums received by the sending track, fifty percent shall be distributed to purses in addition to moneys distributed pursuant to section five hundred twenty-seven of this chapter. The off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S 8. Paragraph d of subdivision 4 of section 1009 of the racing, pari- mutuel wagering and breeding law, as amended by section 8 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. The operator shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S 9. Subparagraph (iv) of paragraph i of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (iv) Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 10. Paragraph e of subdivision 3 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: e. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 11. Clause (B) of subparagraph 2 of paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (B) Any harness racing or association or corporation or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 12. Paragraph b of subdivision 2 of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: b. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is S. 6409--A 74 A. 9009--A hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 13. Paragraph 2 of subdivision b of section 1612 of the tax law, as amended by section 1 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: 2. As consideration for the operation of a video lottery gaming facil- ity, the division, shall cause the investment in the racing industry of a portion of the vendor fee received pursuant to paragraph one of this subdivision in the manner set forth in this subdivision. With the exception of Aqueduct racetrack or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, each such track shall dedicate a portion of its vendor fees, received pursu- ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, for the purpose of enhancing purs- es at such track, in an amount equal to eight and three-quarters percent of the total revenue wagered at the vendor track after [pay out] PAYOUT for prizes. One AND SIX-TENTHS percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to the gaming commission to be used exclusively to promote and ensure equine health and safety in New York. Any portion of such funding to the gaming commission unused during a fiscal year shall be returned to the video lottery gaming operators on a pro rata basis in accordance with the amounts originally contributed by each operator and shall be used for the purpose of enhancing purses at such track. One and one-half percent of the gross purse enhancement amount at a thoroughbred track, as required by this subdivision, shall be paid to an account established pursuant to section two hundred twenty-one-a of the racing, pari-mutuel wagering and breeding law to be used exclusively to provide health insurance for jockeys. In addition, with the exception of Aqueduct race- track or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, one and one-quarter percent of total revenue wagered at the vendor track after [pay out] PAYOUT for prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, shall be distributed to the appropriate breeding fund for the manner of racing conducted by such track. Provided, further, that nothing in this paragraph shall prevent each track from entering into an agreement, not to exceed five years, with the organization authorized to represent its horsemen to increase or decrease the portion of its vendor fee dedicated to enhancing purses at such track during the years of participation by such track, or to race fewer dates than required herein. S 14. Paragraph 1 of subdivision f of section 1612 of the tax law, as amended by section 2 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: 1. [Six] SEVEN and one-half percent of the total wagered after payout of prizes for the [first year of] operation of video lottery gaming at Aqueduct racetrack, [seven percent of the total wagered after payout of prizes for the second year of operation, and seven and one-half percent of the total wagered after payout of prizes for the third year of opera- tion and thereafter,] for the purpose of enhancing purses at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course. One AND SIX-TENTHS percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to the gaming commission to be used S. 6409--A 75 A. 9009--A exclusively to promote and ensure equine health and safety in New York. Any portion of such funding to the gaming commission unused during a fiscal year shall be returned on a pro rata basis in accordance with the amounts originally contributed and shall be used for the purpose of enhancing purses at such tracks. One and one-half percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to an account established pursuant to section two hundred twenty-one-a of the racing, pari-mutuel wagering and breeding law to be used exclu- sively to provide health insurance for jockeys. S 15. This act shall take effect immediately. PART CC Section 1. Section 308 of the racing, pari-mutuel wagering and breed- ing law, as amended by section 1 of part Y of chapter 58 of the laws of 2012, is amended to read as follows: S 308. Officials at harness horse race meetings. 1. At all harness race meetings licensed by the [state racing and wagering board] GAMING COMMISSION in accordance with the provisions of sections two hundred twenty-two through seven hundred five of this chapter qualified judges and starters shall be designated by the [state racing and wagering board] GAMING COMMISSION. Such officials shall enforce the rules and regulations of the [state racing and wagering board] GAMING COMMISSION and shall render regular written reports of the activities and conduct of such race meetings to the [state racing and wagering board] GAMING COMMISSION. 2. The licensed racing corporations shall reimburse the [state racing and wagering board] GAMING COMMISSION for the per diem cost to the [board] COMMISSION to employ one associate judge and the starter to serve at harness race meetings. The [board] COMMISSION shall notify EACH such licensed racing [corporations] CORPORATION of the per diem cost of the associate judge and the starter [prior to the beginning] AT THE TRACK OF SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END of each month. Payment of the reimbursement required by this section shall be made to the [board] COMMISSION by each entity required to make such payments [on the last business day of each month] WITHIN THIRTY DAYS OF SUCH NOTIFICATION BY THE COMMISSION and shall cover all the costs incurred during that month. A penalty of five percent of payment due, and interest at the rate of one percent per month calculated from such [last day of each month] DATE THAT PAYMENT IS DUE to the date of the payment of the per diem cost shall be payable in case any per diem cost imposed by this subdivision is not paid when due. The [board] COMMISSION shall promulgate rules and regulations to ensure the proper reimbursement of such costs. 3. The [board] COMMISSION shall pay into the racing regulation account, as defined in section ninety-nine-i of the state finance law, under the joint custody of the comptroller and the [board] COMMISSION, the total amount of the reimbursements collected pursuant to this section. With the approval of the director of the budget, monies [utilized] USED to pay the costs and expenses of the operations of the [board] COMMISSION shall be paid out of such account on the audit and warrant of the comptroller on vouchers, certified and approved by the director of the division of the budget or his or her duly designated official. 4. Any associate judge and starter whose per diem costs are reimbursed by a licensed racing corporation shall remain employees of the [state S. 6409--A 76 A. 9009--A racing and wagering board] GAMING COMMISSION and shall retain all the rights and privileges of their current civil service jurisdictional classification and status and collective bargaining unit representation. S 2. This act shall take effect immediately. PART DD Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law is amended by adding a new clause (G-2) to read as follows: (G-2) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK RETAINED BY THE COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES; AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO THE VENDOR TRACK PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN SENECA OR WAYNE COUNTIES PURSUANT TO SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA OR WAYNE COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF- ICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION SET FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON THE CALCU- LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART EE Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part WW of chapter 59 of the laws of 2015, is amended to read as follows: (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- agraph, when a vendor track, is located in Sullivan county and within sixty miles from any gaming facility in a contiguous state such vendor fee shall, for a period of [eight] NINE years commencing April first, two thousand eight, be at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, after which time such rate shall be as for all tracks in clause (C) of this subparagraph. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART FF Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 S. 6409--A 77 A. 9009--A of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [sixteen] SEVENTEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [sixteen] SEVENTEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. S. 6409--A 78 A. 9009--A S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [sixteen] SEVENTEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. S 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [sixteen] SEVENTEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [sixteen] SEVENTEEN. This section shall super- sede all inconsistent provisions of this chapter. S 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in S. 6409--A 79 A. 9009--A accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: S 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [fifteen] SIXTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. S 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2016] 2017; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. S 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2016] 2017; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- S. 6409--A 80 A. 9009--A two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. S 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- S. 6409--A 81 A. 9009--A ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such payment shall be seven-tenths of one per centum of such pools. S 10. This act shall take effect immediately. PART GG Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part MM of chapter 59 of the laws of 2015, is amended to read as follows: (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of this subparagraph, the track operator of a vendor track shall be eligi- ble for a vendor's capital award of up to four percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which shall be used exclusively for capital project investments to improve the facilities of the vendor track which promote or encourage increased attendance at the video lottery gaming facility including, but not limited to hotels, other lodging facilities, enter- tainment facilities, retail facilities, dining facilities, events arenas, parking garages and other improvements that enhance facility amenities; provided that such capital investments shall be approved by the division, in consultation with the state racing and wagering board, and that such vendor track demonstrates that such capital expenditures will increase patronage at such vendor track's facilities and increase the amount of revenue generated to support state education programs. The annual amount of such vendor's capital awards that a vendor track shall be eligible to receive shall be limited to two million five hundred thousand dollars, except for Aqueduct racetrack, for which there shall be no vendor's capital awards. Except for tracks having less than one thousand one hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, each track operator shall be required to co-invest an amount of capital expenditure equal to its cumulative vendor's capital award. For all tracks, except for Aqueduct racetrack, the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand [sixteen] SEVENTEEN. Any amount attributable to a capital expenditure approved prior to April first, two thousand [sixteen]SEVENTEEN and completed before April first, two thousand [eigh- teen] NINETEEN; or approved prior to April first, two thousand [twenty] TWENTY-ONE and completed before April first, two thousand [twenty-two] TWENTY-THREE for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligi- ble to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the division prior to April first, two thousand [sixteen] SEVENTEEN and completed prior to April first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumu- lative capital award during the five year period ending April first, two thousand [sixteen] SEVENTEEN, the vendor shall continue to receive the capital award after April first, two thousand [sixteen] SEVENTEEN until such approved capital expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph be eligible for a vendor's capital award under this section. Any opera- S. 6409--A 82 A. 9009--A tor of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with generally accepted accounting principles, shall reim- burse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand [sixteen] SEVENTEEN shall be deposited into the state lottery fund for education aid; and S 2. This act shall take effect immediately. PART HH Section 1. Paragraph b of subdivision 3 of section 97-nnnn of the state finance law, as added by chapter 174 of the laws of 2013, is amended to read as follows: b. ten percent of the moneys in such fund, AS ATTRIBUTABLE TO A SPECIFIC LICENSED GAMING FACILITY, shall be appropriated or transferred from the commercial gaming revenue fund equally between the host munici- pality and host county OF SUCH FACILITY. S 2. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by chapter 174 of the laws of 2013, is amended to read as follows: (G) Notwithstanding any provision to the contrary, when a vendor track is located within regions one, two, or five of development zone two as defined by section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law, such vendor track shall receive an additional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, WHICH PERCENTAGE SHALL BE ONE HUNDRED, less [ten percent] THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained by the commission for operation, administration, and procurement purposes; and [payment of] the vendor's fee, marketing allowance[,] and capital award paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax rate paid on all gross gaming revenue paid by a gaming facility within the same region pursuant to section thirteen hundred fifty-one of the racing, pari-mutuel wagering and breeding law, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME REGION IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. The additional commission SET FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART II Section 1. Subdivision 1 of section 491 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: 1. Except in accordance with proper judicial order or as in this section or otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the department, or any officer or person who, pursuant to this section, is permitted to inspect any return or report or to whom a copy, an abstract or a portion of any S. 6409--A 83 A. 9009--A return or report is furnished, or to whom any information contained in any return or report is furnished, or any person engaged or retained by such department on an independent contract basis or any person who in any manner may acquire knowledge of the contents of a return or report filed pursuant to this article to divulge or make known in any manner the contents or any other information relating to the business of a distributor, owner or other person contained in any return or report required under this article. The officers charged with the custody of such returns or reports shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the state, the state department of health, or the commissioner in an action or proceeding under the provisions of this chapter or on behalf of the state or the commissioner in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the commissioner is a party or a claimant or on behalf of any party to any action or proceeding under the provisions of this article, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical marihuana on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, in any of which events the court may require the production of, and may admit in evidence so much of said returns or reports or of the facts shown there- by as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the commissioner, in his or her discretion, from allowing the inspection or delivery of a certified copy of any return or report filed under this article or of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the state department of health; or by or to the attorney general or other legal representatives of the state when an action shall have been recommended or commenced pursuant to this chapter in which such returns or reports or the facts shown thereby are directly involved; or the inspection of the returns or reports required under this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organ- ization, or a duly authorized representative of such registered organ- ization, a certified copy of any return or report filed by such regis- tered organization pursuant to this article, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns or reports and the items thereof. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINIS- TRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL THE REGISTERED ORGANIZATIONS MAKING SALES OF, OR MANUFACTURING, MEDICAL MARIHUANA IN A SPECIFIED COUNTY, WHETHER THE NUMBER OF SUCH REGISTERED ORGANIZATIONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITH- STANDING THE PROVISIONS OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE AN ALLOCATION, FOLLOWING APPROPRIATION BY THE LEGISLATURE, PURSUANT TO THIS ARTICLE AND SECTION EIGHTY-NINE-H OF THE STATE FINANCE LAW, OR THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH OFFICER OR SUCH REPRESENTATIVE WITH INFORMATION CONCERNING S. 6409--A 84 A. 9009--A AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE. S 2. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 491 of the tax law made by section one of this act shall be deemed to have been in full force and effect on and after January 1, 2016, and shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART JJ Section 1. Subdivision 15 of section 425 of the real property tax law, as added by section 1 of part E of chapter 59 of the laws of 2015, is amended to read as follows: 15. Recoupment of exemptions by commissioner. (a) Generally. If the commissioner should determine, based upon data collected under the STAR registration program, that property improperly received the basic STAR exemption [on] IN THE CURRENT SCHOOL YEAR OR one or more of the three preceding [assessment rolls] SCHOOL YEARS, the commissioner shall treat the exemption as an improperly granted exemption and proceed in the manner provided by this subdivision; provided that final assessment rolls that were filed prior to April first, two thousand eleven shall not be subject to the provisions of this subdivision. (b) Procedure. The tax savings attributable to each such improperly granted exemption shall be collected from the owners whose property improperly received the exemption for the applicable year, together with interest as specified in this subdivision, by utilizing any of the procedures for collection, levy, and lien of personal income tax set forth in article twenty-two of the tax law, any other relevant proce- dures referenced within the provisions of that article, and any other law as may be applicable, so far as practicable when recouping the exemption amount pursuant to this subdivision, except that: (i) IN ORDER FOR THE RECOUPMENT PROCEDURE TO BE CONSIDERED TIMELY, THE NOTICE REQUIRED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH MUST BE MAILED NO LATER THAN THREE YEARS AFTER THE CONCLUSION OF THE SCHOOL YEAR FOR WHICH THE EXEMPTION IN QUESTION WAS GRANTED, OR IN THE CASE OF AN EXEMPTION THAT WAS GRANTED FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR, NO LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN; (II) prior to directing that an improperly granted exemption be recouped pursuant to this subdivision, the commissioner shall provide the owners with notice and an opportunity to show the commissioner that the exemption was properly granted. If the owners fail to respond to such notice within forty-five days from the mailing thereof, or if their response does not show to the commissioner's satisfaction that the eligibility requirements were in fact satisfied, the commissioner shall proceed with the recoupment of the improperly granted exemption in accordance with the provisions of this subdivision; and [(ii)] (III) notwithstanding the provisions of paragraph (b) of subdi- vision six of this section, neither an assessor nor a board of assess- ment review has the authority to consider an objection to the recoupment of an exemption pursuant to this subdivision, nor may such an action be reviewed in a proceeding to review an assessment pursuant to title one or one-A of article seven of this chapter. Such an action may only be challenged before the department. If an owner is dissatisfied with the department's final determination, the owner may appeal that determi- nation to the board in a form and manner to be prescribed by the commis- sioner. Such appeal shall be filed within forty-five days from the issu- S. 6409--A 85 A. 9009--A ance of the department's final determination. If dissatisfied with the board's determination, the owner may seek judicial review thereof pursu- ant to article seventy-eight of the civil practice law and rules. The owner shall otherwise have no right to challenge such final determi- nation in a court action, administrative proceeding, including but not limited to an administrative proceeding pursuant to article forty of the tax law, or any other form of legal recourse against the commissioner, the department, the board, the assessor, or any other person, state agency, or local government. (c) The amount to be recouped for each improperly received exemption shall have interest added at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereof since the levy of school taxes upon such assessment roll. (d) In the event that a revocation of prior exemption pursuant to subdivision twelve of this section or a voluntary renunciation of the STAR exemption pursuant to section four hundred ninety-six of this [chapter] ARTICLE has occurred, the provisions of this subdivision shall not be applicable to the exemptions so revoked or voluntarily renounced. S 2. This act shall take effect immediately. PART KK Section 1. Paragraphs a and b of subdivision 1 of section 502 of the tax law, paragraph a as amended by section 1 of part E of chapter 60 of the laws of 2007, and paragraph b as amended by section 1 of part T-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. Each carrier shall apply to the commissioner for a certificate of registration for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state. Application shall be made upon a form prescribed by such commissioner and shall set forth the gross and unloaded weight of each motor vehicle, license plate informa- tion for each motor vehicle and such other information as the commis- sioner may require. Such weights shall be subject to audit and approval by the commissioner. [The application shall be accompanied by a fee of fifteen dollars for each motor vehicle listed in the application.] The commissioner shall issue [without further charge] a certificate of registration for each motor vehicle or a consolidated certificate of registration for all or any portion of such vehicles of such carrier which shall contain such information and be in such form as the commis- sioner shall prescribe. In the case of the loss, mutilation or destruction of a certificate of registration, the commissioner shall issue a duplicate thereof [upon payment of a fee of two dollars]. Any such certificate of registration shall not be transferable, except as hereinafter provided, and shall be valid until revoked, suspended or surrendered. Such certificate of registration shall be maintained in the carrier's regular place of business. In the event of an increase in the gross or unloaded weight of any motor vehicle subject to this article, application for a corrected certificate of registration shall be made upon a form prescribed by such commissioner setting forth the previous gross or unloaded weight, the new gross or unloaded weight and such other information as the commissioner may require. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, application may be made for a corrected certificate of registration in a similar manner, provided that any such application on the basis of a decrease in the gross or unloaded weight of any motor S. 6409--A 86 A. 9009--A vehicle may be made only during the month of January. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, an application to cancel a certificate of registration on the basis of such decrease may be made during any month. The corrected gross or unloaded weight shall be subject to audit and approval by the commissioner. In the event of a change to the license plate information of any motor vehicle subject to this article, an application for a corrected certificate of registration shall be made upon a form prescribed by the commissioner setting forth the previous license plate information, the new license plate information and such other informa- tion as the commissioner may require. Upon surrendering the certificate of registration previously issued, the commissioner shall[, without further charge,] issue a corrected certificate of registration. b. Every automotive fuel carrier shall apply to the commissioner for a special certificate of registration, in place of the certificate of registration described in paragraph a of this subdivision, for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state to transport automotive fuel. Provided, however, a special certificate of registration shall not be required under this paragraph for a tractor or other self-propelled device which, except with respect to the fuel in the ordinary fuel tank intended for its propulsion, transports automotive fuel solely by means of a trailer, dolly or other device drawn by such tractor or other self-propelled device if a certificate of registration prescribed by paragraph a of this subdivision has been issued for the self-propelled device. Applica- tion shall be made upon an application form prescribed by the commis- sioner. [The application shall be accompanied by a fee of fifteen dollars for each trailer, semi-trailer, dolly or other device listed in the application.] The commissioner shall issue [without further charge] such special certificate of registration for each motor vehicle listed in the application or a consolidated certificate of registration for all or any portion of such vehicles of such carrier. All of the provisions of this article with respect to certificates of registration shall be applicable to the special certificates of registration issued to automo- tive fuel carriers under this paragraph as if those provisions had been set forth in full in this paragraph and expressly referred to the special certificates of registration required by this paragraph except to the extent that any such provision is either inconsistent with a provision of this paragraph or not relevant to the certificates of registration required by this paragraph. Any certificate of registration shall not be transferable, and shall be valid until revoked, suspended or surrendered. Such special certificate of registration shall be main- tained in the carrier's regular place of business. Nothing contained in this paragraph shall in any way exempt an automotive fuel carrier from payment of the taxes imposed pursuant to this article. S 2. Paragraphs a and b of subdivision 6 of section 502 of the tax law, as added by section 1 of part K-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. The commissioner may require the use of decals as evidence that a carrier has a valid certificate of registration for each motor vehicle operated or to be operated on the public highways of this state as required by paragraph a of subdivision one of this section. If the commissioner requires the use of decals, the commissioner shall issue for each motor vehicle with a valid certificate of registration a decal that shall be of a size and design and containing such information as the commissioner prescribes. [The fee for any decal issued pursuant to S. 6409--A 87 A. 9009--A this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a decal, the commissioner shall issue a new decal upon proof of the facts [and payment of four dollars]. The decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued as closely as practical to the registration or license plates and at all times be visible and legible. No decal is transferable. A decal shall be valid until it expires or is revoked, suspended, or surren- dered. b. The commissioner may require the use of special decals as evidence that an automotive fuel carrier has a valid special certificate of registration for each motor vehicle operated or to be operated on the public highways of this state to transport automotive fuel as required by paragraph b of subdivision one of this section. If the commissioner requires the use of special decals, the commissioner shall issue for each motor vehicle with a valid special certificate of registration a special decal that shall be distinctively colored and of a size and design and containing such information as the commissioner prescribes. [The fee for any special decal issued pursuant to this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a special decal, the commissioner shall issue a new special decal upon proof of the facts [and payment of four dollars]. The special decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued pursuant to the rules and regulations prescribed by the commissioner to enable the easy identification of the automotive fuel carrier certificate of registration number and at all times be visible and legible. No special decal is transferable and shall be valid until it expires or is revoked, suspended, or surrendered. S 3. The tax law is amended by adding a new section 502-a to read as follows: S 502-A. CERTIFICATE OF REGISTRATION AND DECAL FEES. THE APPLICATION FOR A CERTIFICATE OF REGISTRATION AND DECAL DESCRIBED IN PARAGRAPH A OF SUBDIVISION ONE AND PARAGRAPH A OF SUBDIVISION SIX OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE, OR A SPECIAL CERTIFICATE OF REGISTRATION AND SPECIAL DECAL AS DESCRIBED IN PARAGRAPH B OF SUBDIVISION ONE AND PARAGRAPH B OF SUBDIVISION SIX OF SUCH SECTION, SHALL BE ACCOMPANIED BY A FEE OF ONE DOLLAR AND FIFTY CENTS. IN THE CASE OF THE LOSS, MUTILA- TION OR DESTRUCTION OF ANY SUCH DOCUMENTS, THE COMMISSIONER SHALL ISSUE A DUPLICATE SET THEREOF UPON PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY CENTS. PROVIDED, HOWEVER, THERE SHALL BE NO ADDITIONAL CHARGE FOR THE ISSUANCE OF A CORRECTED CERTIFICATE OF REGISTRATION PURSUANT TO PARA- GRAPH A OF SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE. S 4. Subdivision 8 of section 509 of the tax law, as separately amended by section 3 of part K-1 and section 2 of part T-1 of chapter 57 of the laws of 2009, is amended to read as follows: 8. To issue replacement certificates of registration or decals at such times as the commissioner may deem necessary for the proper and effi- cient enforcement of the provisions of this article, but not more often than once every year and to require the surrender of the then outstand- ing certificates of registration and decals. All of the provisions of this article with respect to certificates of registration and decals shall be applicable to replacement certificates of registration and decals issued hereunder, except that the replacement certificate of registration or decal shall be issued upon payment of a fee of [fifteen dollars] ONE DOLLAR AND FIFTY CENTS for each motor vehicle and for any trailer, semi-trailer, dolly or other device drawn thereby for which a S. 6409--A 88 A. 9009--A certificate of registration or decal is required to be issued under this article; S 5. Section 515 of the tax law, as added by chapter 329 of the laws of 1991, is amended to read as follows: S 515. Disposition of revenues. All taxes, interest, penalties and fees collected or received pursuant to this article shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, and to the credit of the comptroller on account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. Such an account may be established in one or more of such depositories and such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the revenues so deposited, the comptroller shall retain in his hands such amount as the commissioner of taxation and finance may deter- mine to be necessary for refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under the provisions of this article, out of which amount the comptroller shall pay any refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under such provisions. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the last day of each month, pay the balance of the revenue so deposited during such month into the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. NOTWITHSTANDING THE FOREGOING OR ANY OTHER LAW TO THE CONTRARY, THE COMPTROLLER SHALL DEPOSIT ALL MONIES COLLECTED ON ACCOUNT OF THE REGIS- TRATION FEES IMPOSED PURSUANT TO SECTION FIVE HUNDRED TWO-A AND SUBDIVI- SION EIGHT OF SECTION FIVE HUNDRED NINE OF THIS ARTICLE INTO THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-NINE-Y OF THE STATE FINANCE LAW. THE MONIES DEPOSITED IN SUCH ACCOUNT SHALL BE AVAILABLE TO THE COMMISSIONER FOR THE COSTS OF ISSUING THE CERTIFICATES OF REGISTRATION AND HIGHWAY USE TAX DECALS REQUIRED BY THIS ARTICLE AND FOR ANY OTHER COSTS OF ADMINISTERING THE PROVISIONS OF SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THIS ARTICLE. ANY MONEYS NOT USED IN A GIVEN YEAR SHALL BE RETURNED TO SUCH ACCOUNT AND BE ADDED TO THE TOTAL FUNDS AVAILABLE FOR DISBURSEMENT IN THE SUCCEEDING YEAR. S 6. The state finance law is amended by adding a new section 99-y to read as follows: S 99-Y. HIGHWAY USE TAX ADMINISTRATION ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL ACCOUNT TO BE KNOWN AS THE "HIGHWAY USE TAX ADMINISTRATION ACCOUNT". 2. THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT SHALL CONSIST OF ALL MONIES COLLECTED FROM THE HIGHWAY USE TAX REGISTRATION AND DECAL FEES COLLECTED PURSUANT TO SECTIONS FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND ANY OTHER MONIES DEPOSITED INTO THE ACCOUNT PURSUANT TO LAW. 3. MONIES OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE, SHALL BE USED FOR THE COSTS OF THE COMMISSIONER OF TAXATION AND FINANCE IN ADMINISTERING SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND EXPENDED FOR THE PURPOSES SET FORTH IN SECTION FIVE HUNDRED FIFTEEN OF THE TAX LAW. S 7. This act shall take effect immediately. S. 6409--A 89 A. 9009--A S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through KK of this act shall be as specifically set forth in the last section of such Parts.
2015-A9009B - Details
- See Senate Version of this Bill:
- S6409
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2015-A9009B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year; amends the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit (Part A); intentionally omitted (Part B); intentionally omitted (Part C)
2015-A9009B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 9009--B I N A S S E M B L Y January 14, 2016 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT intentionally omitted (Part A); intentionally omitted (Part B); to amend the real property tax law, in relation to making the income verification program mandatory (Part C); to amend the real property tax law, in relation to allowing applications for exemptions to be filed after the taxable status date in certain cases (Part D); to amend the tax law and the administrative code of the city of New York, in relation to establishing a new school tax reduction credit for residents of a city with a population over one million (Part E); to amend the real property tax law, in relation to authorizing the commissioner of taxation and finance to make direct payments of STAR tax savings to property owners in certain cases (Part F); to amend the tax law, in relation to making permanent, provisions relating to mandatory electronic filing of tax documents, improving sales tax compliance and updating tax preparer penalties; to amend chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness thereof; and to repeal certain provisions of the tax law and the administrative code of the city of New York relating thereto (Part G); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part H); to amend the tax law, in relation to extending the hire a veteran credit for an addi- tional two years (Part I); to amend the tax law, in relation to extending the empire state commercial production tax credit (Part J); to amend the tax law, in relation to the credit for companies who provide transportation to individuals with disabilities; and to amend chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disa- bilities, in relation to extending the expiration of such provision (Part K); to amend part I of chapter 58 of the laws of 2006, amending the tax law relating to providing an enhanced earned income tax cred- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-03-6 A. 9009--B 2 it, in relation to making the enhanced earned income tax credit perma- nent (Part L); to amend part N of chapter 61 of the laws of 2005 amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to permanently extending the disclosure and penalty provisions for transactions that present the potential for tax avoid- ance (Part M); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part N); to amend the economic development law and the tax law, in relation to extending the excelsior jobs program for five years (Part O); to amend the tax law and the administrative code of the City of New York, in relation to making corrections to the corporate tax reform provisions (Part P); to amend the tax law and the administrative code of the city of New York, in relation to the time for filing reports (Part Q); to amend the tax law and the administrative code of the city of New York, in relation to the business income base rate and expanding the small business subtraction modification (Part R); intentionally omitted (Part S); to amend the tax law, in relation to establishing a tax credit for New York state thruway tolls for farm vehicles (Part T); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alterna- tive fuels tax exemptions for five years (Part U); to amend the tax law, in relation to exempting from alcoholic beverage tax certain alcoholic beverages furnished at no charge by certain licensees to customers or prospective customers at a tasting held in accordance with the alcoholic beverage control law, and to expand the beer production credit to include wine, liquor and cider (Part V); to amend the tax law, in relation to authorizing jeopardy assessments on ciga- rette and tobacco product taxes assessed under article 20 thereof (Part W); to amend the tax law and the administrative code of the city of New York, in relation to allowing room remarketers to purchase occupancies from hotel operators exempt from sales tax under certain circumstances (Part X); to amend the tax law, in relation to charita- ble contributions and charitable activities being considered in deter- mining domicile for estate tax purposes (Part Y); to amend the state finance law, in relation to creating the aviation purpose account and ensuring that the funds deposited in the aviation purpose account are used for airport improvement projects; to amend the tax law, in relation to provide for the distribution of revenues under section 301-e of such law; to exempt sales of fuel sold for use in commercial aircraft and general aviation aircraft from the prepayment of sales tax imposed pursuant to the authority of section 1102(a) (1) (ii) of such law; and to exclude sales of fuel sold for use in commercial aircraft and general aviation aircraft from the operation of sales and use taxes imposed pursuant to the authority of section 1210(a) of such law (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the timing of harness track reimbursements and other technical amendments (Part CC); to amend the tax law, in relation to the payment of vendors' fees (Part DD); to amend the tax law, in relation to vendor fees at vendor tracks (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out- of-state harness tracks and distributions of wagers; to amend chapter A. 9009--B 3 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel and breeding law, in relation to extending certain provisions thereof (Part FF); to amend the tax law, in relation to capital awards to vendor tracks (Part GG); to amend the state finance law, in relation to allocations from the commercial gaming revenue fund; to amend the tax law, in relation to commissions payable to certain vendor racetracks (Part HH); to amend the tax law, in relation to further clarifying disclosure procedures regarding medical marihuana (Part II); to amend the real property tax law, in relation to STAR recoupment program (Part JJ); to amend the tax law and the state finance law, in relation to the fees associated with a certificate of registration and decal imposed by article 21 of the tax law for certain vehicles operating on public highways in New York state (Part KK); in relation to enacting the empire state appren- ticeship program; to amend the labor law, in relation to establishing the empire state apprenticeship tax credit program and granting the commissioner of the department of labor the power to administer such program; and to amend the tax law, in relation to the empire state apprenticeship tax credit (Subpart A); to amend the labor law, in relation to establishing the empire state apprenticeship grant program for small business and not-for-profit corporations (Subpart B)(Part LL); to amend the tax law, in relation to providing a tax credit for universal visitability; and providing for the repeal of such provisions upon the expiration thereof (Part MM); to amend the tax law, in relation to the earned income credit (Subpart A); and to amend the tax law, in relation to income tax rates; and to repeal certain provisions of such law relating thereto (Subpart B) (Part NN); to amend the tax law, in relation to QEZE tax reduction credits (Part OO); to amend the economic development law and the tax law, in relation to tax credits for upstate reinvestment zones (Part PP); to amend the tax law, in relation to establishing a credit for geothermal energy systems (Part QQ); to amend the tax law, in relation to exempt- ing commercial fuel cell electricity generating systems and electric- ity generated by such equipment from the sales tax imposed by article 28 of the tax law and omitting such exemption from the taxes imposed pursuant to the authority of article 29 of the tax law (Part RR); to amend the tax law, in relation to farm savings accounts (Part SS); to amend the tax law, in relation to the imposition of an occupancy tax in the village of Tuckahoe; and providing for the repeal of such provisions upon expiration thereof (Title A); to amend the tax law, in relation to the imposition of an occupancy tax in the town of North Castle; and providing for the repeal of such provisions upon expira- tion thereof (Title B); to amend the tax law, in relation to the impo- sition of an occupancy tax in the village of Harrison; and providing for the repeal of such provisions upon expiration thereof (Title C); to amend the tax law, in relation to authorizing the town of Green- burgh to adopt a local law to impose a hotel/motel occupancy tax for hotels not located in a village; authorizing specified villages in the towns of Greenburgh and Mount Pleasant to adopt a local law to impose a hotel/motel occupancy tax in such villages; and providing for the repeal of such provisions upon expiration thereof (Title D); to amend the tax law, in relation to the imposition of a hotel and motel tax in A. 9009--B 4 the town of Woodbury; and providing for the repeal of such provisions upon expiration thereof (Title E); to amend the tax law, in relation to the imposition of an occupancy tax in the village of Mamaroneck; and providing for the repeal of such provisions upon expiration there- of (Title F); and to amend the tax law, in relation to authorizing the imposition of an occupancy tax in the village of Port Chester; and providing for the repeal of such provisions upon expiration thereof (Title G) (Subpart A); and to amend the tax law, in relation to the imposition of hotel and motel taxes in towns and villages (Subpart B) (Part TT); to amend the state finance law and chapter 453 of the laws of 2015 amending the state finance law relating to tax check-off funds, in relation to making technical corrections to language relat- ing to report recipients (Part UU); to amend the real property tax law, in relation to farm waste energy systems (Part VV); to amend part U of chapter 55 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by senior citizens, in relation to extending the effectiveness thereof, in relation to extending reimbursements; and to amend section 4 of chapter 129 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by persons with disabilities, in relation to extending the effective- ness thereof (Part WW); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part XX); to amend the racing, pari-mutuel wagering and breeding law, in relation to health insurance for jockeys (Part YY); to amend the tax law and the economic development law, in relation to the creation of the empire state music production credit; and to repeal subdivision 11 of section 352 of the economic development law relating thereto (Part ZZ); and to amend the tax law, in relation to sales and compensating use taxes (Part AAA) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year. Each component is wholly contained within a Part identified as Parts A through AAA. The effective date for each partic- ular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Intentionally Omitted PART B Intentionally Omitted A. 9009--B 5 PART C Section 1. Subparagraphs (iv), (v) and (vi) of paragraph (b) of subdi- vision 4 of section 425 of the real property tax law, subparagraph (iv) as amended by chapter 451 of the laws of 2015, subparagraph (v) as amended by section 10 of part W of chapter 56 of the laws of 2010, subparagraph (vi) as amended by section 3 of part E of chapter 83 of the laws of 2002, and clause (E) of subparagraph (vi) as further amended by section 1 of part W of chapter 56 of the laws of 2010, are amended to read as follows: (iv) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] SEVENTEEN, the application form shall indicate that the owners of the property and any owners' spouses residing on the premises [may] MUST ENROLL IN THE STAR INCOME VERIFICATION PROGRAM ADMINISTERED BY THE DEPARTMENT IN ORDER FOR THE PROPERTY TO BE ELIGIBLE FOR AN ENHANCED EXEMPTION PURSUANT TO THIS SUBDIVISION. TO ENROLL THEREIN, THEY MUST authorize the assessor to have their income eligibility verified annually thereafter by the [state] department [of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer iden- tification numbers in order to facilitate matching with records of the department. Thereafter, their income eligibility shall be verified annu- ally by the department and the assessor shall not request income documentation from them, unless such department advises the assessor that [they do not satisfy the applicable income eligibility require- ments, or that] it is unable to determine whether they satisfy those requirements, OR UNLESS ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICA- BLE INCOME TAX YEAR AND DID NOT DO SO. All APPLICANTS FOR THE ENHANCED STAR EXEMPTION AND ALL assessing units shall be required to participate in this program. ONCE ENROLLED IN THE INCOME VERIFICATION PROGRAM FOR A PROPERTY, APPLICANTS SHALL REMAIN ENROLLED IN THE INCOME VERIFICATION PROGRAM FOR THE PURPOSE OF QUALIFYING FOR THE ENHANCED STAR EXEMPTION IN FUTURE YEARS ON SUCH PROPERTY, EVEN IF THEY DO NOT SATISFY THE APPLICA- BLE INCOME ELIGIBILITY REQUIREMENTS FOR ONE OR MORE YEARS. (v) (A) Except in the case of a city with a population of one million or more, the assessor shall forward to the department, in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. After receiving the department's response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confiden- tial and shall not be subject to disclosure under article six of the public officers law. (B) In the case of a city of one million or more, the assessor shall forward to the department [of taxation and finance], in the time and manner required by the department, information identifying the persons [who have elected to participate in the STAR income verification program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB- LISHED BY THIS PARAGRAPH. The department shall advise the assessor of A. 9009--B 6 its findings in the manner provided by the agreement executed pursuant to section one hundred seventy-one-o of the tax law. After receiving such response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confidential and shall not be subject to disclosure under article six of the public officers law. (vi) Notwithstanding the provisions of subparagraphs (iv) and (v) of this paragraph, which establish a STAR income verification program, income documentation must be submitted to the assessor in connection with each of the following: (A) Initial applications for the enhanced STAR exemption; (B) Renewal applications [submitted by a person or persons who have not elected to participate in the STAR income verification program] WHERE ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR AND DID NOT DO SO; (C) Applications that would allow an enhanced exemption to resume after having been discontinued, UNLESS THE ENHANCED EXEMPTION WAS DISCONTINUED DUE TO THE DEPARTMENT ADVISING THE ASSESSOR THAT THE APPLI- CABLE INCOME ELIGIBILITY REQUIREMENTS HAVE NOT BEEN MET; (D) Applications submitted by a person or persons who had previously qualified for the enhanced exemption but not in the assessing unit in question; and (E) Applications with respect to which the department [of taxation and finance] has advised the assessor [through the commissioner] that it is unable to determine whether a participant or participants in the STAR income verification program satisfy the income eligibility requirements. S 2. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law, as amended by chapter 570 of the laws of 1998, is amended to read as follows: (c) Senior citizens exemption. When property is eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this article, it shall also be deemed to be eligible for the enhanced exemption authorized by this section for certain senior citizens, provided, where applicable, that the age requirement established by a municipal corporation pursuant to subdivision five of section four hundred sixty-seven of this article is satisfied, and no separate appli- cation need be filed therefor. PROVIDED HOWEVER, THAT BEGINNING WITH FINAL ASSESSMENT ROLLS COMPLETED IN TWO THOUSAND SEVENTEEN, SUCH PROPER- TY SHALL NOT BE ELIGIBLE FOR SUCH ENHANCED EXEMPTION UNLESS THE OWNERS AND ANY OWNERS' SPOUSES RESIDING THEREON HAVE ENROLLED IN THE INCOME VERIFICATION PROGRAM ESTABLISHED BY SUBDIVISION FOUR OF THIS SECTION. S 3. This act shall take effect immediately and shall apply to the administration of the enhanced STAR exemption authorized by subdivision 4 of section 425 of the real property tax law beginning with final assessment rolls to be completed in 2017. PART D Section 1. Subdivision 6 of section 425 of the real property tax law is amended by adding a new paragraph (a-2) to read as follows: (A-2) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A RENEWAL APPLICATION FOR THE "ENHANCED" STAR EXEMPTION AUTHORIZED BY SUBDIVISION FOUR OF THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE A. 9009--B 7 TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT- ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE COMMISSIONER SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO SUCH OWNER AND THE ASSESSOR. IF THE DETERMINATION STATES THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA- TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING- LY. S 2. Section 467 of the real property tax law is amended by adding a new subdivision 8-a to read as follows: 8-A. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT A LOCAL LAW PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION IS FURTHER AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL APPLICA- TION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF HE OR SHE IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI- NATION STATES THAT THE ASSESSOR HAS GRANTED THE EXEMPTION, HE OR SHE SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI- CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY. S 3. This act shall take effect on the sixtieth day after it shall have become a law. PART E A. 9009--B 8 Section 1. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU- LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU- SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A RESI- DENT INDIVIDUAL OF THE STATE WHO IS A RESIDENT OF A CITY WITH A POPULATION OVER ONE MILLION, AS PROVIDED BELOW. THE CREDIT SHALL BE ALLOWED AGAINST THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, 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 WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO CREDIT SHALL BE GRANTED TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (2) THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED BASED UPON THE TAXPAYER'S INCOME AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. FOR THE PURPOSES OF THIS PARAGRAPH, ANY TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITH INCOME OF MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A CREDIT. (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. (B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS. (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA- BLE YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT, THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE. S 2. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax law, paragraph 1 as amended by section 3 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 1 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 4 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven, AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this subsection, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For the purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income A. 9009--B 9 of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of this chapter.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 3. Paragraphs 1 and 2 of subsection (c) of section 11-1706 of the administrative code of the city of New York, paragraph 1 as amended by section 6 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 2 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this [subdivision] SUBSECTION, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. A. 9009--B 10 Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of the tax law.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. PART F Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: (16) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER FINDS THAT A PROPERTY OWNER WAS ELIGIBLE FOR THE STAR EXEMPTION AUTHORIZED BY THIS SECTION ON AN ASSESSMENT ROLL, BUT THE EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE PROPERTY OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY OWNER OR HIS OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION AND FINANCE IS AUTHORIZED TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF THE STAR EXEMPTION HAD BEEN TAKEN INTO ACCOUNT IN THE CALCULATION OF THAT TAXPAYER'S SCHOOL TAX BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER- TY OWNER NOR HIS OR HER AGENT SHALL BE ENTITLED TO A REFUND OF THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE ERROR. S 2. This act shall take effect immediately. A. 9009--B 11 PART G Section 1. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. S 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 1 of part H of chapter 59 of the laws of 2013, is amended to read as follows: S 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2016], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2017 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2016]. S 6. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: A. 9009--B 12 (AA) TAX PREPARER PENALTY. -- (1) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPARER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF AN INCOME TAX PREPARER TAKES A POSITION ON ANY RETURN THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYA- BLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH (1) OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. S 7. Subsection (u) of section 685 of the tax law is amended by adding two new paragraphs (1) and (2) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. ANY INDIVIDUAL WHO IS A TAX RETURN PREPARER BUT IS NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER, WHO IS REQUIRED PURSUANT TO PARA- GRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND AND WHO FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASON- ABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALEN- DAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALEN- DAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE IS NOT SO INCLUDED, THE PERSON WHO IS THE TAX RETURN PREPARER BUT IT NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO OF THIS CHAPTER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEV- ER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARA- GRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDEN- TIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, A. 9009--B 13 THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. S 8. This act shall take effect immediately; provided, however, that section seven of this act shall apply to taxable years commencing on and after January 1, 2016. PART H Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part P of chapter 59 of the laws of 2014, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [sixty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [seventy-two] EIGHTY million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 3. Subdivision 4 of section 22 of the public housing law as amended by section two of this act is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty-eight] NINETY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2017; section three A. 9009--B 14 of this act shall take effect April 1, 2018; section four of this act shall take effect April 1, 2019 and section five of this act shall take effect April 1, 2020. PART I Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval A. 9009--B 15 militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 4. This act shall take effect immediately. PART J Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) A taxpayer which is a qualified commercial production company, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predominantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursuant to A. 9009--B 16 this section shall apply to taxable years beginning before January first, two thousand [seventeen] NINETEEN. S 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Expiration of credit. The credit allowed under this subdivision shall not be applicable to taxable years beginning on or after [December thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN. S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as amended by section 4 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) Allowance of credit. A taxpayer that is eligible pursuant to the provisions of section twenty-eight of this chapter shall be allowed a credit to be computed as provided in such section against the tax imposed by this article. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thou- sand [seventeen] NINETEEN. S 4. This act shall take effect immediately. PART K Section 1. Section 5 of chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disabilities, is amended to read as follows: S 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; [and] provided further that this act shall apply to all tax years commencing on or after January 1, 2011; AND PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL REMAIN IN EFFECT UNTIL DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL BE DEEMED REPEALED. S 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year 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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. THE TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. S 3. This act shall take effect immediately. PART L Section 1. Section 2 of part I of chapter 58 of the laws of 2006, relating to providing an enhanced earned income tax credit, as amended by section 1 of part G of chapter 59 of the laws of 2014, is amended to read as follows: A. 9009--B 17 S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 [and before January 1, 2017]. S 2. This act shall take effect immediately. PART M Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part B of chapter 61 of the laws of 2011, is amended to read as follows: S 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2015; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2015; provided, however that notwithstanding the provisions of article 5 of the general construction law, the provisions of section 25, paragraph 11 of subsection (c) of section 683, subsections (p), (p-1), (x), (y), (z), (aa) and (bb) of section 685, paragraph 11 of subsection (c) of section 1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085 of the tax law, and section 11 of Part N of chapter 61 of the laws of 2005, are hereby revived and shall continue in full force and effect as such provisions existed on July 1, 2015. PART N Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot A. 9009--B 18 water production for residential purposes within this state purchased before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as amended by chapter 193 of the laws of 2012, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thousand seven and on or after January first, two thousand eight and before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. S 3. This act shall take effect immediately. PART O Section 1. Section 359 of the economic development law, as amended by section 3 of part C of chapter 68 of the laws of 2013, is amended to read as follows: S 359. Cap on tax credit. The total amount of tax credits listed on certificates of tax credit issued by the commissioner for any taxable year may not exceed the limitations set forth in this section. One-half of any amount of tax credits not awarded for a particular taxable year IN YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR may be used by the commissioner to award tax credits in another taxable year. Credit components in the aggregate With respect to taxable shall not exceed: years beginning in: $ 50 million 2011 $ 100 million 2012 $ 150 million 2013 $ 200 million 2014 $ 250 million 2015 $ 200 million 2016 $ 200 million 2017 $ 200 million 2018 $ 200 million 2019 $ 200 million 2020 $ 200 million 2021 $ 150 million 2022 $ 100 million 2023 $ 50 million 2024 Twenty-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision four of section three hundred fifty-three of this article and seventy-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision three of section three hundred fifty-three of this article. Provided, however, if by September thirtieth of a calendar year, the department has not allocated the full amount of credits available in that year to either: (i) businesses accepted into the program under A. 9009--B 19 subdivision four of section three hundred fifty-three of this article or (ii) businesses accepted into the program under subdivision three of section three hundred fifty-three of this article, the commissioner may allocate any remaining tax credits to businesses referenced in [para- graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided, however, that under no circumstances may the AGGREGATE statutory cap FOR ALL PROGRAM YEARS be exceeded. ONE HUNDRED PERCENT OF THE UNAWARDED AMOUNTS REMAINING AT THE END OF TWO THOUSAND TWENTY-FOUR MAY BE ALLO- CATED IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT LIMITATION ON ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED- ITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. S 2. Subdivision 5 of section 354 of the economic development law, as amended by section 2 of part C of chapter 68 of the laws of 2013, is amended to read as follows: 5. A participant may claim tax benefits commencing in the first taxa- ble year that the business enterprise receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later. A participant may claim such benefits for the next nine consecutive taxable years, provided that the participant demonstrates to the department that it continues to satisfy the eligi- bility criteria specified in section three hundred fifty-three of this article and subdivision two of this section in each of those taxable years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. If, in any given year, a participant who has satisfied the eligibility criteria specified in section three hundred fifty-three of this article realizes job creation less than the estimated amount, the credit shall be reduced by the proportion of actual job creation to the estimated amount, provided the proportion is at least seventy-five percent of the jobs estimated. S 3. Subdivision (b) of section 31 of the tax law, as added by section 7 of part G of chapter 61 of the laws of 2011, is amended to read as follows: (b) To be eligible for the excelsior jobs program credit, the taxpayer shall have been issued a "certificate of tax credit" by the department of economic development pursuant to subdivision four of section three hundred fifty-four of the economic development law, which certificate shall set forth the amount of each credit component that may be claimed for the taxable year. A taxpayer may claim such credit for ten consec- utive taxable years commencing in the first taxable year that the taxpayer receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later, PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY. The taxpayer shall be allowed to claim only the amount listed on the certificate of tax credit for that taxable year. Such certificate must be attached to the taxpay- er's return. No cost or expense paid or incurred by the taxpayer shall be the basis for more than one component of this credit or any other tax credit, except as provided in section three hundred fifty-five of the economic development law. S 4. This act shall take effect immediately. PART P A. 9009--B 20 Section 1. Subdivision (c) of section 24 of the tax law, as added by section 1 of part P of chapter 60 of the laws of 2004, is amended to read as follows: (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) article 9-A: section [210] 210-B: subdivision [36] 20. (2) article 22: section 606: subsection (gg). S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, are amended to read as follows: (a) A taxpayer that is an eligible employer or an owner of an eligible employer as defined in subdivision (b) of this section shall be eligible for a credit against the tax imposed under article nine, nine-A, twen- ty-two, [thirty-two] or thirty-three of this article, pursuant to the provisions referenced in subdivision (e) of this section. (2) Article 9-A: Section [210] 210-B, subdivision [46] 40. (4) [Article 32: Section 1456, subsection (z). (5)] Article 33: Section 1511, subdivision (cc). S 3. Paragraph (e) of subdivision 1 of section 209 of the tax law, as added by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (e) At the end of each year, the commissioner shall review the cumula- tive percentage change in the consumer price index. The commissioner shall adjust the receipt thresholds set forth in this subdivision if the consumer price index has changed by ten percent or more since January first, two thousand fifteen, or since the date that the thresholds were last adjusted under this subdivision. The thresholds shall be adjusted to reflect that cumulative percentage change in the consumer price index. The adjusted thresholds shall be rounded to the nearest one thou- sand dollars. As used in this paragraph, "consumer price index" means the consumer price index for all urban consumers (CPI-U) available [form] FROM the bureau of labor statistics of the United States depart- ment of labor. Any adjustment shall apply to tax periods that begin after the adjustment is made. S 4. The opening paragraph of paragraph (a) of subdivision 5 of section 210-A of the tax law, as amended by section 23 of part T of chapter 59 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal revenue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision five of A. 9009--B 21 section two hundred eight of this article shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 5. Paragraph (c) of subdivision 7 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Average number of individuals employed full-time. For the purposes of this subdivision, average number of individuals employed full-time shall be computed by adding the number of such individuals employed by the taxpayer at the end of each quarter during each taxable year or other applicable period and dividing the sum so obtained by the number of such quarters occurring within such taxable year or other applicable period; provided however, except that in computing base year employment, there shall be excluded therefrom any employee with respect to whom a credit provided for under subdivision [six of this section is] NINETEEN OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed for the taxable year. S 6. Paragraphs (a) and (b) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Application of credit. A taxpayer shall be allowed a credit, to be credited against the tax imposed by this article, equal to the amount of the special additional mortgage recording tax paid by the taxpayer pursuant to the provisions of subdivision one-a of section two hundred fifty-three of this chapter [or] ON mortgages recorded. Provided, howev- er, no credit shall be allowed with respect to a mortgage of real prop- erty principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the metropolitan commuter transportation area. Provided further, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in the county of Erie. (b) Carryover. In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. If, however, the amount of credit allowable under this subdivision for any taxable year, includ- ing any credit carried over from a prior taxable year, reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit not deductible in such taxa- ble year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, IN LIEU OF CARRYING OVER, TO THE FOLLOWING YEAR OR YEARS, THE UNUSED PORTION OF CREDITS ATTRIBUTABLE TO SPECIAL ADDITIONAL MORTGAGE RECORDING TAX WITH A. 9009--B 22 RESPECT TO SUCH MORTGAGES, WHICH IS DUE AND PAID IN ANY OF SUCH TAXABLE YEARS, THE TAXPAYER MAY ELECT TO TREAT SUCH UNUSED PORTION AS AN OVER- PAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER EXCEPT THAT NO INTEREST SHALL BE PAID ON SUCH OVERPAYMENT. S 7. Subdivision 45 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 45. Order of credits. [(a)] Credits allowable under this article which cannot be carried over and which are not refundable shall be deducted first. [The credit allowable under subdivision six of this section shall be deducted immediately after the deduction of all credits allowable under this article which cannot be carried over and which are not refundable, whether or not a portion of such credit is refundable.] Credits allowable under this article which can be carried over, and carryovers of such credits, shall be deducted next [after the deduction of the credit allowable under subdivision six of this section], and among such credits, those whose carryover is of limited duration shall be deducted before those whose carryover is of unlimited duration. Cred- its allowable under this article which are refundable [(other than the credit allowable under subdivision six of this section)] shall be deducted last. S 8. Paragraph (a) of subdivision 3 of section 210-C of the tax law, as added by section 18 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Subject to the provisions of paragraph (c) of subdivision two of this section, a taxpayer may elect to treat as its combined group all corporations that meet the ownership requirements described in paragraph (a) of subdivision two of this section (such corporations collectively referred to in this subdivision as the "commonly owned group"). If that election is made, the commonly owned group shall calculate the combined business income, combined capital, and fixed dollar minimum bases of all members of the group in accordance with [paragraph] SUBDIVISION four of this [subdivision] SECTION, whether or not that business income or busi- ness capital is from a single unitary business. S 9. Paragraph I of subdivision 1 of section 11-604 of the administra- tive code of the city of New York, as added by chapter 491 of the laws of 2007, is amended to read as follows: I. Notwithstanding any provision of this subdivision to the contrary, for taxable years beginning on or after January first, two thousand seven for any corporation that: (a) has a business allocation percentage for the taxable year, as determined under paragraph (a) of subdivision three of this section, of one hundred percent; (b) has no investment capital or income at any time during the taxable year; (c) has no subsidiary capital or income at any time during the taxable year; and (d) has gross income, as defined in section sixty-one of the internal revenue code, less than two hundred fifty thousand dollars for the taxa- ble year: the tax imposed by subdivision one of section 11-603 of this subchap- ter shall be the greater of the tax on entire net income computed under clause one of subparagraph (a) of paragraph E of this subdivision and the fixed dollar minimum tax specified in clause four of subparagraph (a) of paragraph E of this subdivision. A. 9009--B 23 For purposes of this paragraph, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, any corporation for which an election under subsection (a) of section six hundred sixty of the tax law is not in effect for the taxable year may elect to treat as entire net income the sum of: (i) entire net income as determined under section two hundred eight of the tax law; and (ii) any deductions taken for the taxable year in computing federal taxable income for New York city taxes paid or accrued under this chap- ter. S 10. Subdivision 2 of section 11-651 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 2. Each reference in THE TAX LAW OR this code to subchapters two or three of this chapter, or any of the provisions thereof, shall be deemed a reference also to this subchapter, and any of the applicable provisions thereof, where appropriate and with all necessary modifica- tions. S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) The term "investment capital" means investments in stocks that: (i) satisfy the definition of a capital asset under section 1221 of the internal revenue code at all times the taxpayer owned such stocks during the taxable year; (ii) are held by the taxpayer for investment for more than one year; (iii) the dispositions of which are, or would be, treated by the taxpayer as generating long-term capital gains or losses under the internal revenue code; (iv) for stocks acquired on or after January first, two thousand fifteen, at any time after the close of the day in which they are acquired, have never been held for sale to customers in the regular course of business; and (v) before the close of the day on which the stock was acquired, are clearly identified in the taxpayer's records as stock held for investment in the same manner as required under section 1236(a)(1) of the internal revenue code for the stock of a dealer in securities to be eligible for capital gain treatment (whether or not the taxpayer is a dealer of securities subject to section 1236), provided, however, that for stock acquired prior to October first, two thousand fifteen that was not subject to section 1236(a) of the internal revenue code, such identification in the taxpayer's records must occur before October first, two thousand fifteen. Stock in a corporation that is conducting a unitary business with the taxpayer, stock in a corpo- ration that is included in a combined report with the taxpayer pursuant to the commonly owned group election in subdivision three of section 11-654.3 of this subchapter, and stock [used] ISSUED by the taxpayer shall not constitute investment capital. For purposes of this subdivi- sion, if the taxpayer owns or controls, directly or indirectly, less than twenty percent of the voting power of the stock of a corporation, that corporation will be presumed to be conducting a business that is not unitary with the business of the taxpayer. S 12. Subparagraph 2 of paragraph (a) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (2) The amount determined in this subparagraph is the product of (i) the excess of (A) the tax computed under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, without allowance A. 9009--B 24 of any credits allowed by this section, over (B) the tax so computed, determined as if the corporation had no such distributive share or guar- anteed payments with respect to the unincorporated business, and (ii) a fraction, the numerator of which is four and the denominator of which is eight and eighty-five one hundredths, [provided however,] EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA- GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denomina- tor shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year; [and,] provided[, however,] that the amounts computed in subclauses (A) and (B) of clause (i) of this subparagraph shall be computed with the following modifications: (A) such amounts shall be computed without taking into account any carryforward or carryback by the partner of a net operating loss or a prior net operation loss conversion subtraction; (B) if, prior to taking into account any distributive share or guaran- teed payments from any unincorporated business or any net operating loss carryforward or carryback, the entire net income of the partner is less than zero, such entire net income shall be treated as zero; and (C) if such partner's net total distributive share of income, gain, loss and deductions of, and guaranteed payments from, any unincorporated business is less than zero, such net total shall be treated as zero. The amount determined in this subparagraph shall not be less than zero. S 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (1) Notwithstanding anything to the contrary in paragraph (a) of this subdivision, in the case of a corporation that, before the application of this subdivision or any other credit allowed by this section, is liable for the tax on business income under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, the credit or the sum of the credits that may be taken by such corporation for a taxa- ble year under this subdivision with respect to an unincorporated busi- ness or unincorporated businesses in which it is a partner shall not exceed the tax so computed, without allowance of any credits allowed by this section, multiplied by a fraction the numerator of which is four and the denominator of which is eight and eighty-five one-hundredths [provided, however], EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denominator shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year. If the credit allowed under this subdivision or the sum of such credits exceeds the product of such tax and such fraction, the amount of the excess may be carried forward, in order, to each of the seven immediately succeeding taxable years and, to the extent not previously taken, shall be allowed as a credit in each of such years. In applying the provisions of the preced- ing sentence, the credit determined for the taxable year under paragraph (a) of this subdivision shall be taken before taking any credit carry- forward pursuant to this paragraph and the credit carryforward attribut- able to the earliest taxable year shall be taken before taking a credit carryforward attributable to a subsequent taxable year. A. 9009--B 25 S 14. Subparagraph 8 of paragraph (a) of subdivision 21 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (8) The credit allowed under this subdivision shall only be allowed for taxable years beginning before January first, two thousand [sixteen] NINETEEN. S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin- istrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (c) Receipts from sales of tangible personal property and electricity that are traded as commodities as the term "commodity" is defined in section four hundred seventy-five of the internal revenue code, shall be included in the receipts fraction in accordance with clause [(i)] (IX) of subparagraph two of paragraph (a) of subdivision five of this section. S 16. The opening paragraph of paragraph (a) of subdivision 5 of section 11-654.2 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal reven- ue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision [4] FOUR of section 11-652 of this subchapter shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION FIVE-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 17. This act shall take effect immediately; provided however that sections one, two, three, four, five, six, seven and eight of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect, and sections nine, ten, eleven, twelve, thirteen, fourteen, fifteen and sixteen of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part D of chapter 60 of the laws of 2015, took effect. A. 9009--B 26 PART Q Section 1. Subdivision 5 of section 183-a of the tax law, as amended by section 61 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. The report covering the tax surcharge which must be calculated pursuant to this section based upon the tax reportable on the report due by March fifteenth of any year under section one hundred eighty-three of this article, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR UNDER SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, shall be filed on or before March fifteenth of the year next succeeding such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE YEAR NEXT SUCCEEDING SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. An extension pursuant to section one hundred ninety- three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form as said commis- sioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this arti- cle, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer's report for the preceding year, if such preceding year consisted of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpay- er, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to section one hundred eighty-three of this article are applicable to the tax surcharge imposed by this section except for section one hundred ninety-two of this arti- cle. S 2. Subdivision 4 of section 186-a of the tax law, as amended by chapter 536 of the laws of 1998, is amended to read as follows: 4. Every utility subject to tax hereunder shall file, on or before March fifteenth of each year, a return for the year ended on the preced- ing December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on June first, nineteen hundred seventy-six, AND SHALL FILE, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR- TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, including any period for which the tax imposed hereby or by any amendment hereof is effective, each of which returns shall state the gross income or gross operating income for the period covered by each such return. Returns shall be filed with the commissioner of taxation and finance on a form to be furnished by the commissioner for A. 9009--B 27 such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any utility to file an annual return, which shall contain any data spec- ified by the commissioner, regardless of whether the utility is subject to tax under this section; and the commissioner may require a landlord selling to a tenant gas, electric, steam, water or refrigeration or furnishing gas, electric, steam, water or refrigerator service, where the same has been subjected to tax under this section on the sale to such landlord, to file, on or before the fifteenth day of March of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an information return for the year ended on the preceding December thir- ty-first, covering such year in such form and containing such data as the commissioner may specify. Every return shall have annexed thereto a certification by the head of the utility making the same, or of the owner or of a co-partner thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 3. Subdivision 6 of section 186-e of the tax law, as added by chap- ter 2 of the laws of 1995, is amended to read as follows: 6. Returns. Every provider of telecommunication services subject to tax under this section shall file, on or before March fifteenth of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, a return for the year ended on the preceding December thirty-first, and pay the tax due, which return shall state the gross receipts for the period covered by each such return and the resale exclusions during such period. Returns shall be filed with the commissioner on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any provider of telecommuni- cation services to file an annual return, which shall contain any data specified by the commissioner, regardless of whether such provider is subject to tax under this section. Every return shall have annexed ther- eto a certification by the head of the provider of telecommunication services making the same, or of the owner or of a partner or member thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 4. Subdivision 1 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three or one hundred eighty-five of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMIS- SIONER of its condition at the close of its business on the preceding December thirty-first, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire A. 9009--B 28 amount of the capital of such corporation, and the capital employed by it in this state during such year. S 5. Subdivision 1 of section 192 of the tax law, as amended by section 26 of part S of chapter 59 of the laws of 2014, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a written report to the [tax commission] COMMISSIONER of its condition at the close of its business on the preceding December thirty-first, stat- ing the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year. S 6. Subdivision 2 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 2. Transportation and transmission corporations. Every transportation or transmission corporation, joint-stock company or association liable to pay an additional franchise tax under section one hundred eighty-four of this chapter, shall also, on or before March fifteenth of each year, make a written report to the [tax commission] COMMISSIONER of the amount of its gross earnings subject to the tax imposed by said section for the year ended on the preceding December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE COMMISSIONER OF THE AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. Any such corporation, joint-stock company or association which ceases to be subject to the tax imposed by section one hundred eighty-four of this chapter by reason of a liquidation, dissolution, merger or consolidation with any other corporation, or any other cause, shall, on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require, make a written report to the [tax commission] COMMIS- SIONER of the amount of its gross earnings subject to the tax imposed by section one hundred eighty-four of this chapter for any period for which no report was theretofore filed. Any corporation, joint-stock company or association subject to a tax upon dividends under said section one hundred eighty-four of this chapter shall also include in its report under this subdivision required to be filed a statement of the author- ized capital of the company, the amount of capital stock issued, and the amount of dividends of every nature paid during the year ended on the preceding December thirty-first. As to tax payers subject to such tax upon dividends under said section one hundred eighty-four of this chap- ter, the year ended on December thirty-first, nineteen hundred seventy- six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six. A. 9009--B 29 S 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, as amended by section 1 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) For taxable years beginning on or after January first, nineteen hundred seventy-seven, every taxpayer subject to tax under section one hundred eighty-two, one hundred eighty-two-a, former section one hundred eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article, must pay in each year an amount equal to (i) twenty-five percent of the tax imposed under each of such sections for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax imposed under any of these sections for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. If the preceding year's tax under section one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section one hundred eighty-four-a or one hundred eighty-six-c of this article, respectively, the taxpayer must also pay in each such year an amount equal to (i) twenty-five percent of the tax surcharge imposed under such section for the preceding taxable year if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed under that section for the preceding taxable year if the preceding year's tax exceeded one hundred thousand dollars. The amount or amounts must be paid with the return or report required to be filed with respect to the tax or tax surcharge for the preceding taxable year or with an application for extension of the time for filing the return or report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in this state in a corporate or organized capacity, or of maintaining an office in this state, or of deriving receipts from activity in this state, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a franchise tax, upon the basis of its business income base, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report which shall be filed, except as here- inafter provided, on or before the fifteenth day of March next succeed- ing the close of each such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, or, in the case of a corporation which reports on the basis of a fiscal year, with- in two and one-half months after the close of such fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided. A. 9009--B 30 S 9. Subdivision 1 of section 211 of the tax law, as amended by chap- ter 436 of the laws of 1974, the opening paragraph as amended by chapter 190 of the laws of 1990 and the second undesignated paragraph as amended by chapter 542 of the laws of 1985, is amended to read as follows: 1. Every taxpayer[, as well as every foreign corporation having an employee, including any officer, within the state,] shall annually on or before March fifteenth, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a report in a form prescribed by [it] THE COMMISSIONER (except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF ITS FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and except, also, that a corporation which is a DISC shall transmit its report on or before the fifteenth day of the ninth month following the close of its calendar or fiscal year), setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a report on the date of such cessation or at such other time as the [tax commission] COMMISSIONER may require covering each year or period for which no report was theretofore filed. In the case of a termination year of an S corporation, the S short year and the C short year shall be treated as separate short taxable years, provided, however, the due date of the report for the S short year shall be the same as the due date of the report for the C short year. Every taxpayer shall also transmit such other reports and such facts and information as the [tax commission] COMMISSIONER may require in the administration of this article. The [tax commission] COMMISSIONER may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, such taxpayer files with the [tax commission] COMMISSIONER an application for extension in such form as [said commis- sion] THE COMMISSIONER may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 10. Subdivision (a) of section 213-b of the tax law, as amended by section 2 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV- ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's A. 9009--B 31 tax exceeded one hundred thousand dollars. If the preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twen- ty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars. S 11. Subdivision (f) of section 213-b of the tax law, as amended by chapter 613 of the laws of 1976, is amended to read as follows: (f) The preceding year's tax defined.-- As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section two hundred nine of this chapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section two hundred thirteen of this chapter as the tax imposed upon the taxpayer for such calendar or fiscal year. S 12. Paragraph 1 of subsection (c) of section 658 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Partnerships. Every partnership having a resident partner or having any income derived from New York sources, determined in accord- ance with the applicable rules of section six hundred thirty-one as in the case of a nonresident individual, shall make a return for the taxa- ble year setting forth all items of income, gain, loss and deduction and such other pertinent information as the commissioner may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due date for the return of a partnership consisting entirely of nonresident aliens shall be the date prescribed for the filing of its federal partnership return for the taxable year. For purposes of this paragraph, "taxable year" means a year or a period which would be a taxable year of the partner- ship if it were subject to tax under this article. S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658 of the tax law, as amended by section 18 of part U of chapter 61 of the laws of 2011, is amended to read as follows: (A) Every subchapter K limited liability company, every limited liability company that is a disregarded entity for federal income tax purposes, and every partnership which has any income derived from New York sources, determined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall[, within sixty days after the last day of A. 9009--B 32 the taxable year,] ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee. The amount of the filing fee is the amount set forth in subparagraph (B) of this paragraph. The minimum filing fee is twenty-five dollars for taxable years beginning in two thousand eight and thereafter. Limited liability companies that are disregarded entities for federal income tax purposes must pay a filing fee of twenty-five dollars for taxable years beginning on or after January first, two thousand eight. S 14. Subsection (i) of section 1087 of the tax law, as added by chap- ter 188 of the laws of 1964, is amended to read as follows: (i) Prepaid tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment (including any amount paid by the taxpayer as estimated tax for a taxable year) shall be deemed to have been paid by it on the fifteenth day of the third month following the close of the taxable year the income of which is the basis for tax under article nine-a, [nine-b or nine-c,] or on the last day prescribed in article nine for the filing of a final return for such taxable year, or portion thereof, determined in all cases without regard to any extension of time granted the taxpayer, FOR TAXABLE YEARS BEGIN- NING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE NINE-A, OR ON THE LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR SUCH TAXABLE YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 15. Paragraph 3 of subdivision (a) of section 1514 of the tax law, as amended by section 89 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (3) Such amount or amounts described in paragraphs one and two of this subdivision shall be paid with the return required to be filed with respect to such tax or tax surcharge for such preceding taxable year or with an application for extension of the time for filing such return, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 16. Subdivision (f) of section 1514 of the tax law, as amended by section 26 of part H3 of chapter 62 of the laws of 2003, is amended to read as follows: (f) The preceding year's tax defined. As used in this section, "the preceding year's tax" means, for taxpayers subject to tax under subdivi- sion (b) of section fifteen hundred ten of this article, the taxes imposed upon the taxpayer by sections fifteen hundred one and fifteen hundred ten of this article from the preceding taxable year or as other- wise determined by subdivision (b) of section fifteen hundred five of this article, and for taxpayers subject to tax under section fifteen hundred two-a of this article, the tax imposed upon the taxpayer by such section fifteen hundred two-a of this article from the preceding year, or for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION (A) OF THIS SECTION OR an application has been filed for extension of the time for filing the return required to be filed for such preceding taxable year, the amount properly estimated pursuant to paragraph one of subdivision (b) of section fifteen hundred sixteen of this article as the tax imposed upon the taxpayer for such taxable year. A. 9009--B 33 S 17. Subdivision (a) of section 1515 of the tax law, as added by chapter 649 of the laws of 1974 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows: (a) Every taxpayer and every other foreign and alien insurance corpo- ration having an employee, including any officer, in this state or having an agent or representative in this state, shall annually, on or before the fifteenth day of the third month following the close of its taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a return in a form prescribed by [it] THE COMMISSIONER setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a return on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require covering each year or period for which no return was theretofore filed. A copy of each return required under this subdivision shall also be transmitted to the superintendent of financial services at or before the times specified for filing such returns with the [tax commission] COMMISSIONER. S 18. Subdivisions (a) and (b) of section 11-514 of the administrative code of the city of New York, subdivision (a) as amended by chapter 183 of the laws of 2009, are amended to read as follows: (a) General. [On or before the fifteenth day of the fourth month following the close of a taxable year, an] AN unincorporated business income tax return shall be made and filed, and the balance of any tax shown on the face of such return, not previously paid as installments of estimated tax, shall be paid, ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN: (1) by or for every unincorporated business, for taxable years begin- ning after nineteen hundred eighty-six but before nineteen hundred nine- ty-seven, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ten thousand dollars, or having any amount of unincorporated business taxable income; (2) by or for every partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unin- corporated business gross income, determined for purposes of this subdi- vision without any deduction for the cost of goods sold or services performed, of more than twenty-five thousand dollars, or having unincor- porated business taxable income of more than fifteen thousand dollars; (3) by or for every unincorporated business other than a partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unincorporated business gross income, deter- mined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than seventy-five thousand dollars, or having unincorporated business taxable income of more than thirty-five thousand dollars; and (4) by or for every unincorporated business, for taxable years begin- ning after two thousand eight, having unincorporated business gross A. 9009--B 34 income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ninety-five thousand dollars. (b) Decedents. The return for any deceased individual shall be made and filed by his or her executor, administrator, or other person charged with his or her property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, the fifteenth day of the fourth month following the close of the twelve- month period [which] THAT began with the first day of such fractional part of the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF THE YEAR. S 19. Subdivision (i) of section 11-527 of the administrative code of the city of New York is amended to read as follows: (i) Prepaid tax. For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment and any amount paid by the taxpayer as estimated tax for a taxable year shall be deemed to have been paid by the taxpayer, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth month following the close of his or her taxable year with respect to which such amount constitutes a credit or payment, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA- BLE YEAR WITH RESPECT TO WHICH SUCH AMOUNT CONSTITUTES A CREDIT OR PAYMENT. S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) For the privilege of doing business, or of employing capital, or of owning or leasing property in the city in a corporate or organized capacity, or of maintaining an office in the city, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a tax, upon the basis of its business income, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report [which] THAT shall be filed, except as hereinafter provided, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before the fifteenth day of March next succeeding the close of each such CALEN- DAR year, or, in the case of a taxpayer [which] THAT reports on the basis of a fiscal year, within two and one-half months after the close of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR, and shall be paid as hereinafter provided. S 21. Subdivision 1 of section 11-655 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. Every corporation having an officer, agent or representative within the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY A. 9009--B 35 FIRST, TWO THOUSAND SIXTEEN, transmit to the commissioner of finance a report, in a form prescribed by the commissioner of finance [(except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year)], setting forth such information as the commissioner of finance may prescribe, [and every] EXCEPT THAT A CORPORATION THAT REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND, FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR. EVERY taxpayer [which] THAT ceases to do business in the city or to be subject to the tax imposed by this subchapter shall transmit to the commissioner of finance a report on the date of such cessation or at such other time as the commissioner of finance may require covering each year or period for which no report was theretofore filed. Every taxpayer shall also transmit such other reports and such facts and information as the commissioner of finance may require in the administration of this subchapter. The commissioner of finance may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, whichever is applicable, such taxpayer files with the commissioner of finance an application for extension in such form as the commissioner of finance may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 22. Subdivision 1 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU- SAND SIXTEEN, EVERY taxpayer subject to the tax imposed by section 11-653 of this subchapter shall pay with the report required to be filed for the preceding privilege period, if any, or with an application for extension of the time and filing such report, an amount equal to twen- ty-five per centum of the preceding year's tax if such preceding year's tax exceeded one thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR. S 23. Subdivision 6 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 6. As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section 11-653 of this subchapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section 11-657 of this subchapter as the tax imposed upon the taxpayer for such calendar or fiscal year. A. 9009--B 36 S 24. This act shall take effect immediately provided, however, that section five of this act shall take effect on the same date and in the same manner as section 26 of part S of chapter 59 of the laws of 2014, takes effect, and that section five of this act shall apply to taxable years beginning on or after January 1, 2018 and that section thirteen of this act shall apply to taxable years beginning on or after January 1, 2016. PART R Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 12 of part A of chap- ter 59 of the laws of 2014, is amended to read as follows: (iv) (A) for taxable years beginning before January first, two thou- sand sixteen, if the business income base is not more than two hundred ninety thousand dollars the amount shall be six and one-half percent of the business income base; if the business income base is more than two hundred ninety thousand dollars but not over three hundred ninety thou- sand dollars the amount shall be the sum of (1) eighteen thousand eight hundred fifty dollars, (2) seven and one-tenth percent of the excess of the business income base over two hundred ninety thousand dollars but not over three hundred ninety thousand dollars and (3) four and thirty- five hundredths percent of the excess of the business income base over three hundred fifty thousand dollars but not over three hundred ninety thousand dollars; (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS; S 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. A. 9009--B 37 (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars, OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (35) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars; OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) A. 9009--B 38 OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF ARTICLE TWENTY-TWO OF THE TAX LAW, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF ARTI- CLE NINE-A OF THE TAX LAW FOR THE TAXABLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART S Intentionally Omitted PART T Section 1. Intentionally omitted. S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 49 to read as follows: 49. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (A) A TAXPAYER THAT OPER- ATES A FARM VEHICLE IN CONNECTION WITH FARM OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOU- SAND NINETEEN. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT 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, OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (2) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (3) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. A. 9009--B 39 (4) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (C)(1) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (2) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE AMOUNTS OF NEW YORK STATE THRU- WAY TOLLS REFERENCED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH. (D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI- TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE. S 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT OPERATES A FARM VEHICLE IN CONNECTION WITH FARM OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. (2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (B) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS OF (I) THE PLANTING, CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK, ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED- ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING. SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION WITH LUMBERING OPERATIONS CONNECTED WITH BUT ONLY INCIDENTAL TO THE OPERATION OF A FARM. (C) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S NAME. (D) "E-ZPASS COMMERCIAL ACCOUNT" MEANS A POST-PAID E-ZPASS ACCOUNT ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER- PRISE'S NAME. (3)(A) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL A. 9009--B 40 BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR FOR THAT FARM VEHICLE, PROVIDED THE QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH FARM OPERATIONS. (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE AGGREGATED FOR PURPOSES OF APPLYING THE AMOUNTS OF NEW YORK STATE THRU- WAY TOLLS REFERENCED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED THROUGH E-ZPASS TOLL RECEIPTS RECORDS CREATED AND MAINTAINED BY THE ENTITY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND UPON REQUEST BY, THE DEPARTMENT OF TAXATION AND FINANCE FOR THIS PURPOSE. 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) NEW YORK STATE AMOUNT OF CREDIT UNDER THRUWAY TOLLS TAX CREDIT SUBDIVISION FORTY-NINE OF UNDER SUBSECTION (CCC) SECTION TWO HUNDRED TEN-B S 5. Intentionally omitted. S 6. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. S 7. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU- LATION OF ANY CREDIT ALLOWED UNDER SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 8. Intentionally omitted. S 9. This act shall take effect immediately. PART U Section 1. Section 19 of Part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part V of chapter 59 of the laws of 2014, is amended to read as follows: S 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2016] 2021 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through A. 9009--B 41 sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. S 2. This act shall take effect immediately. PART V Section 1. Section 37 of the tax law, as added by chapter 109 of the laws of 2012, subdivision (c) as amended by section 52 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S 37. [Beer] ALCOHOLIC BEVERAGE production credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chap- ter, that is registered as a distributor under article eighteen of this chapter, and that produces sixty million or fewer gallons of beer OR CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT HUNDRED THOU- SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall be allowed a credit against such taxes in the amount specified in subdi- vision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. Provided, however, that no credit shall be allowed for any beer, CIDER, WINE OR LIQUOR produced in excess of fifteen million five hundred thousand gallons in the taxable year. If the taxpayer is a partner in a partnership or shareholder of a New York S corporation, then the cap imposed by the preceding sentence shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed that cap. (b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state [on or after April first, two thousand twelve] shall be determined as follows: (1) for the first five hundred thousand gallons of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year, the credit shall equal fourteen cents per gallon; and (2) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year in excess of five hundred thousand gallons, the credit shall equal four and one-half cents per gallon. (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article 9-A: Section 210-B, subdivision 39. (2) Article 22: Section 606, subsections (i) and (uu). S 2. Subdivision 39 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 39. [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in para- graph (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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpay- ment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. A. 9009--B 42 S 3. Subdivision 3 of section 420 of the tax law, as amended by chap- ter 94 of the laws of 1934, is amended to read as follows: 3. "Alcoholic beverages" mean and include CIDERS, AS DEFINED BY THE ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors. S 4. Section 424 of the tax law is amended by adding a new subdivision 6 to read as follows: 6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE TO A CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING. S 5. Clause (xxxiv) of subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law, as amended by section 68 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (xxxiv) [Beer] ALCOHOLIC BEVERAGE Amount of credit production credit under under subdivision thirty-nine of subsection (uu) section two hundred ten-B S 6. Subsection (uu) of section 606 of the tax law, as added by chap- ter 109 of the laws of 2012, is amended to read as follows: (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an 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 7. Subdivision 13 of section 1118 of the tax law, as added by section 2 of part U of chapter 59 of the laws of 2015, is amended to read as follows: (13) In respect to the use of the following items at a tasting held by a licensed [brewery, farm brewery, cider producer, farm cidery, distil- lery or farm distillery] PRODUCER OF ALCOHOLIC BEVERAGES in accordance with the alcoholic beverage control law: (i) the alcoholic beverage or beverages authorized by the alcoholic beverage control law to be furnished at no charge to a customer or prospective customer at such tasting for consumption at such tasting; and (ii) bottles, corks, caps and labels used to package such alcoholic beverages. S 8. This act shall take effect immediately, provided, however, that: sections one, two, five and six of this act shall apply to taxable years beginning on or after January 1, 2016; sections three and four of this act shall apply to taxable periods beginning on or after April 1, 2016; and section seven of this act shall apply to uses occurring on and after June 1, 2016. PART W Section 1. The tax law is amended by adding a new section 478-a to read as follows: S 478-A. JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER- MINE THE AMOUNT OF SUCH TAX AND ASSESS THE SAME, TOGETHER WITH ALL INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE- FOR PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN HIS OR HER RETURN IS REQUIRED TO BE FILED. THE AMOUNT SO DETERMINED SHALL BECOME DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST A. 9009--B 43 WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS NOTICE THEREOF IS GIVEN TO HIM OR HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH DETERMINATION EXCEPT TO THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE FINDS THAT JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY JEOPARDY ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSION- ER, CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THERE- ON, OR ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE ADMINISTRATIVE LAW JUDGE OR THE TAX APPEALS TRIBUNAL OR BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE ASSESSMENT OR ANY SUCH REDUCTION THEREOF BECOMES FINAL AND NOT SUBJECT TO FURTHER REVIEW. IF SUCH A BOND IS FILED AND THEREAFTER A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IS COMMENCED AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, DEPOSIT OF THE TAXES, PENALTIES AND INTEREST ASSESSED SHALL NOT BE REQUIRED AS A CONDITION PRECEDENT TO THE COMMENCEMENT OF SUCH PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED, UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION TO THE DETERMINATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN EXCEPTION IS TIMELY FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE OF ITS DECISION TO THE PERSON AGAINST WHOM THE ASSESSMENT IS MADE; PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS BEEN DULY NOTIFIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE COMMISSIONER DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTE- NANCE WILL GREATLY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE. S 2. This act shall take effect immediately. PART X Section 1. Paragraph 2 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (2) Except as provided in subdivision (r) of section eleven hundred eleven of this part, when occupancy is provided, for a single consider- ation, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this article, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, the entire consideration shall be treated as rent subject to tax under para- graph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated separately from the price of such property, services, amusement charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such rent is reasonable in relation to the value of such property, services, amusement charges or other items, only such separately stated rent will be subject to tax under paragraph one of this subdivision. A. 9009--B 44 S 2. Section 1115 of the tax law is amended by adding a new subdivi- sion (kk) to read as follows: (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A ROOM REMARKETER FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS- SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL BE ADMINISTERED BY THE COMMISSIONER IN CONFORMITY WITH THE RULES FOR EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE. S 3. Paragraph 4 of subdivision a of section 11-2502 of the adminis- trative code of the city of New York, as amended by section 4 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (4) (i) When occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this chapter, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVI- SION 1 OF THIS SECTION, the entire consideration shall be treated as rent subject to tax under paragraph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated sepa- rately from the price of such property, services, amusement charges or other items on any sales slip, invoice, receipt, or other statement given the occupant and such rent is reasonable in relation to the value of such property, services, amusement charges, or other items, only such separately stated rent will be subject to tax under this subdivision. (ii) In regard to the collection of tax on occupancies by remarketers, when occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, whether or not such other items are taxable, the rent portion of the consideration for such sale shall be computed as follows: the total consideration for the sale multiplied by a fraction, the numerator of which shall be the consider- ation paid to the hotel for the occupancy and the denominator of which shall be the consideration paid to the hotel for the occupancy plus the consideration paid to the providers of the other items being sold, or by any other reasonable method pursuant to which the rent portion of consideration would be no less than the computation of rent portion of consideration under subparagraph (i) of this paragraph. Nothing herein shall be construed to subject to tax or exempt from tax any service or property or amusement charge or other items otherwise subject to tax or exempt from tax under this chapter. S 4. Section 11-2502 of the administrative code of the city of New York is amended by adding a new subdivision 1 to read as follows: 1. AN OCCUPANCY THAT AN OPERATOR CONVEYS OR FURNISHES TO A ROOM REMARKETER THAT THE ROOM REMARKETER INTENDS TO CONVEY OR FURNISH, DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS SECTION, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE. THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO THE COMMIS- SIONER OF FINANCE UPON REQUEST. S 5. This act shall take effect immediately and apply to rent paid for occupancies on or after June 1, 2016. A. 9009--B 45 PART Y Section 1. The section heading of section 951-a of the tax law, as added by chapter 190 of the laws of 1990, is amended to read as follows: [Definitions] GENERAL PROVISIONS AND DEFINITIONS. S 2. Section 951-a of the tax law is amended by adding a new subsection (f) to read as follows: (F) TAX TREATMENT OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI- CILE. NOTWITHSTANDING ANY OTHER PROVISION OF ANY OTHER LAW TO THE CONTRARY, THE MAKING OF A FINANCIAL CONTRIBUTION, GIFT, BEQUEST, DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN ANY AMOUNT OR THE DONATION OR LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING, GIVING OR DONATION OF UNCOMPENSATED TIME, OR ANY COMBINATION OF THE FOREGOING, CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, OR TO A NOT-FOR-PROFIT ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION ONE HUNDRED SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE TIME OF HIS OR HER DEATH. S 3. This act shall take effect immediately. PART Z Section 1. Subdivision 2 of section 89-b of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: 2. The dedicated highway and bridge trust fund shall consist of [two] THREE accounts: (a) the special obligation reserve and payment account; [and] (b) the highway and bridge capital account; AND (C) THE AVIATION PURPOSE ACCOUNT. Moneys in each account shall be kept separate and not commingled with any other moneys in the custody of the comptroller. S 2. Section 89-b of the state finance law is amended by adding a new subdivision 4-a to read as follows: 4-A. (A) THE AVIATION PURPOSE ACCOUNT SHALL CONSIST OF ALL MONEYS REQUIRED TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW AND ANY OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT OR SOURCE. (B) MONEYS IN THE AVIATION PURPOSE ACCOUNT SHALL BE UTILIZED FOR AIRPORTS AND AVIATION FACILITIES AND EQUIPMENT AND RELATED PROJECTS, INCLUDING BUT NOT LIMITED TO THE ACQUISITION OF REAL OR TANGIBLE PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER- VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL- ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT- ED BY FEDERAL LAW. S 3. Section 312 of the tax law, as amended by section 32 of part K of chapter 61 of the laws of 2011, is amended to read as follows: S 312. Deposit and disposition of revenue.-- (a) Except as otherwise provided, of all taxes, interest and penalties collected or received on or after April first, two thousand one, from the taxes imposed by [sections] SECTION three hundred one-a [and three hundred one-e] of this article, (i) initially eighty and three-tenths percent shall be deposit- ed, as prescribed by subdivision (d) of section three hundred one-j of this article and (ii) nineteen and seven-tenths percent shall be depos- ited in such mass transportation operating assistance fund to the credit of the metropolitan mass transportation operating assistance account and the public transportation systems operating assistance account thereof A. 9009--B 46 in the manner provided by subdivision eleven of section one hundred eighty-two-a of this chapter. Provided, further that on or before the twenty-fifth day of each month commencing with April, two thousand one, the comptroller shall deduct the amount of six hundred twenty-five thou- sand dollars prior to any deposit or disposition of the taxes, interest, and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall deposit such amount in the dedicated fund accounts pursuant to subdivision (d) of section three hundred one-j of this article. Provided, further, that commencing January fifteenth, nineteen hundred ninety-one, and on or before the tenth day of March and the fifteenth day of June and Septem- ber of such year, the commissioner shall, based on information supplied by taxpayers and other appropriate sources, estimate the amount of the utility credit authorized by section three hundred one-d of this article which has been accrued to reduce tax liability under section one hundred eighty-six-a of this chapter during the period covered by such estimate and certify to the state comptroller such estimated amount. The comp- troller shall forthwith, after receiving such certificate, deduct the amount of such credit so certified by the commissioner prior to any deposit or disposition of the taxes, interest and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall pay such amount so certified and deducted into the state treasury to the credit of the general fund. Also, subse- quently, during the fiscal year when the commissioner becomes aware of changes or modifications with respect to actual credit usage, the commissioner shall, as soon as practicable, issue a certification setting forth the amount of any required adjustment to the amount of actual credit usage previously certified. After receiving the certif- icate of the commissioner with respect to actual credit usage or modifi- cation of the same, the comptroller shall forthwith adjust general fund receipts and the revenues to be deposited or disposed of under this article to reflect the difference so certified by the commissioner. The commissioner shall not be liable for any overestimate or underestimate of the amount of the utility credit which has been accrued to reduce tax liability under such section one hundred eighty-six-a. Nor shall the commissioner be liable for any inaccuracy in any certificate with respect to the amount of such credit actually used or any required adjustment with respect to actual credit usage, but the commissioner shall as soon as practicable after discovery of any error adjust the next certification under this section to reflect any such error. Prior to making deposits as provided in this section, the comptroller shall retain such amount as the commissioner may determine to be neces- sary, subject to the approval of the director of the budget, for reason- able costs of the department in administering and collecting the taxes deposited pursuant to this section and for refunds and reimbursements with respect to such taxes, out of which the comptroller shall pay any refunds or reimbursements of such taxes to which taxpayers shall be entitled. (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E OF THIS ARTICLE SHALL BE DEPOSITED IN THE AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. A. 9009--B 47 S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as amended by chapter 261 of the laws of 1988, is amended to read as follows: (1) Every distributor of motor fuel shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the author- ity of article twenty-nine of this chapter, a tax on each gallon of motor fuel (i) which he imports or causes to be imported into this state for use, distribution, storage or sale in the state or produces, refines, manufactures or compounds in this state or (ii) if the tax has not been imposed prior to its sale in this state, which he sells (which acts shall in regard to motor fuel hereinafter in this article be encom- passed by the phrase "imported, manufactured or sold"), except when imported, manufactured or sold under circumstances which preclude the collection of such tax by reason of the United States constitution and of the laws of the United States enacted pursuant thereto or when imported or manufactured by an organization described in paragraph one or two of subdivision (a) of section eleven hundred sixteen of this article or a hospital included in the organizations described in para- graph four of such subdivision for its own use and consumption and except kero-jet fuel when imported by an airline for use in its airplanes, AND EXCEPT AVIATION GASOLINE SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 5. Subparagraph (i) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; AND ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT; and, unless such city, county or school district elects other- wise, shall omit the provision for credit or refund contained in clause six of subdivision (a) or subdivision (d) of section eleven hundred nineteen of this chapter. S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision (a) of section 1210 of tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, are amended and a new subparagraph (xiv) is added to read as follows: (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of section eleven hundred fifteen of this chapter; AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. Any reference in this chapter or in any local law, ordinance or resolution enacted pursuant to the authority of this arti- cle to former subdivisions (n) or (p) of this section shall be deemed to A. 9009--B 48 be a reference to clauses (xii) or (xiii) of this paragraph, respective- ly, and any such local law, ordinance or resolution that provides the exemptions provided in such former subdivisions (n) and/or (p) shall be deemed instead to provide the exemptions provided in clauses (xii) and/or (xiii) of this paragraph. S 7. Notwithstanding any law to the contrary, the comptroller is here- by authorized and directed to transfer from the general fund for deposit into the mass transportation operating assistance fund, pursuant to section 88-a of the state finance law and the dedicated mass transporta- tion trust fund, pursuant to section 89-c of the state finance law, upon request of the director of the budget, on or before March 31 of each year, an amount equal to the amount of revenue received by the commis- sioner of taxation and finance during the state fiscal year from petro- leum business taxes imposed pursuant to the authority of section 301-e of the tax law that would have otherwise been directed to such funds pursuant to section 312 of the tax law as such section was in effect on the day before this act became a law. S 8. This act shall take effect immediately, provided that sections one, two and seven of this act shall take effect April 1, 2017; provided further that sections three, four, five and six of this act shall take effect December 1, 2017; and provided further that if section 19 of part W1 of chapter 109 of the laws of 2006 shall not have expired on or before such date then section four of this act shall take effect on the same date as the reversion of paragraph 1 of subdivision (a) of section 1102 of the tax law, pursuant to such chapter. PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Section 1. Section 308 of the racing, pari-mutuel wagering and breed- ing law, as amended by section 1 of part Y of chapter 58 of the laws of 2012, is amended to read as follows: S 308. Officials at harness horse race meetings. 1. At all harness race meetings licensed by the [state racing and wagering board] GAMING COMMISSION in accordance with the provisions of sections two hundred twenty-two through seven hundred five of this chapter qualified judges and starters shall be designated by the [state racing and wagering board] GAMING COMMISSION. Such officials shall enforce the rules and regulations of the [state racing and wagering board] GAMING COMMISSION and shall render regular written reports of the activities and conduct of such race meetings to the [state racing and wagering board] GAMING COMMISSION. 2. The licensed racing corporations shall reimburse the [state racing and wagering board] GAMING COMMISSION for the per diem cost to the [board] COMMISSION to employ one associate judge and the starter to serve at harness race meetings. The [board] COMMISSION shall notify EACH such licensed racing [corporations] CORPORATION of the per diem cost of the associate judge and the starter [prior to the beginning] AT THE TRACK OF SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END A. 9009--B 49 of each month. Payment of the reimbursement required by this section shall be made to the [board] COMMISSION by each entity required to make such payments [on the last business day of each month] WITHIN THIRTY DAYS OF SUCH NOTIFICATION BY THE COMMISSION and shall cover all the costs incurred during that month. A penalty of five percent of payment due, and interest at the rate of one percent per month calculated from such [last day of each month] DATE THAT PAYMENT IS DUE to the date of the payment of the per diem cost shall be payable in case any per diem cost imposed by this subdivision is not paid when due. The [board] COMMISSION shall promulgate rules and regulations to ensure the proper reimbursement of such costs. 3. The [board] COMMISSION shall pay into the racing regulation account, as defined in section ninety-nine-i of the state finance law, under the joint custody of the comptroller and the [board] COMMISSION, the total amount of the reimbursements collected pursuant to this section. With the approval of the director of the budget, monies [utilized] USED to pay the costs and expenses of the operations of the [board] COMMISSION shall be paid out of such account on the audit and warrant of the comptroller on vouchers, certified and approved by the director of the division of the budget or his or her duly designated official. 4. Any associate judge and starter whose per diem costs are reimbursed by a licensed racing corporation shall remain employees of the [state racing and wagering board] GAMING COMMISSION and shall retain all the rights and privileges of their current civil service jurisdictional classification and status and collective bargaining unit representation. S 2. This act shall take effect immediately. PART DD Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law is amended by adding a new clause (G-2) to read as follows: (G-2) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK RETAINED BY THE COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES; AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO THE VENDOR TRACK PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN SENECA OR WAYNE COUNTIES PURSUANT TO SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA OR WAYNE COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF- ICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION SET FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON THE CALCU- LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR. A. 9009--B 50 S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART EE Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part WW of chapter 59 of the laws of 2015, is amended to read as follows: (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- agraph, when a vendor track, is located in Sullivan county and within sixty miles from any gaming facility in a contiguous state such vendor fee shall, for a period of [eight] NINE years commencing April first, two thousand eight, be at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, after which time such rate shall be as for all tracks in clause (C) of this subparagraph. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART FF Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting A. 9009--B 51 corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [sixteen] SEVENTEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [sixteen] SEVENTEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [sixteen] SEVENTEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. S 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [sixteen] SEVENTEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative A. 9009--B 52 horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [sixteen] SEVENTEEN. This section shall super- sede all inconsistent provisions of this chapter. S 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: S 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [fifteen] SIXTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. S 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: A. 9009--B 53 S 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2016] 2017; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. S 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2016] 2017; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. S 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state A. 9009--B 54 for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such payment shall be seven-tenths of one per centum of such pools. S 10. This act shall take effect immediately. PART GG Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part MM of chapter 59 of the laws of 2015, is amended to read as follows: (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of this subparagraph, the track operator of a vendor track shall be eligi- ble for a vendor's capital award of up to four percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which shall be used exclusively for capital project investments to improve the facilities of the vendor track which promote or encourage increased attendance at the video lottery gaming facility including, but not limited to hotels, other lodging facilities, enter- tainment facilities, retail facilities, dining facilities, events arenas, parking garages and other improvements that enhance facility amenities; provided that such capital investments shall be approved by the division, in consultation with the state racing and wagering board, and that such vendor track demonstrates that such capital expenditures will increase patronage at such vendor track's facilities and increase the amount of revenue generated to support state education programs. The annual amount of such vendor's capital awards that a vendor track shall be eligible to receive shall be limited to two million five hundred thousand dollars, except for Aqueduct racetrack, for which there shall be no vendor's capital awards. Except for tracks having less than one thousand one hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, each track operator shall be required to A. 9009--B 55 co-invest an amount of capital expenditure equal to its cumulative vendor's capital award. For all tracks, except for Aqueduct racetrack, the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand [sixteen] SEVENTEEN. Any amount attributable to a capital expenditure approved prior to April first, two thousand [sixteen] SEVENTEEN and completed before April first, two thousand [eighteen] NINETEEN; or approved prior to April first, two thousand [twenty] TWENTY-ONE and completed before April first, two thousand [twenty-two] TWENTY-THREE for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligible to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the division prior to April first, two thousand [sixteen] SEVENTEEN and completed prior to April first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumulative capital award during the five year period ending April first, two thousand [sixteen] SEVENTEEN, the vendor shall continue to receive the capital award after April first, two thousand [sixteen] SEVENTEEN until such approved capital expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph be eligible for a vendor's capital award under this section. Any operator of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with generally accepted accounting principles, shall reimburse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand [sixteen] SEVENTEEN shall be deposited into the state lottery fund for education aid; and S 2. This act shall take effect immediately. PART HH Section 1. Paragraph b of subdivision 3 of section 97-nnnn of the state finance law, as added by chapter 174 of the laws of 2013, is amended to read as follows: b. ten percent of the moneys in such fund, AS ATTRIBUTABLE TO A SPECIFIC LICENSED GAMING FACILITY, shall be appropriated or transferred from the commercial gaming revenue fund equally between the host munici- pality and host county OF SUCH FACILITY. S 2. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by chapter 174 of the laws of 2013, is amended to read as follows: (G) Notwithstanding any provision to the contrary, when a vendor track is located within regions one, two, or five of development zone two as defined by section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law, such vendor track shall receive an additional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, WHICH PERCENTAGE SHALL BE ONE HUNDRED, less [ten percent] THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained by the commission for operation, administration, and procurement purposes; and [payment of] the vendor's fee, marketing allowance[,] and capital award paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax A. 9009--B 56 rate paid on all gross gaming revenue paid by a gaming facility within the same region pursuant to section thirteen hundred fifty-one of the racing, pari-mutuel wagering and breeding law, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME REGION IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. The additional commission SET FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART II Section 1. Subdivision 1 of section 491 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: 1. Except in accordance with proper judicial order or as in this section or otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the department, or any officer or person who, pursuant to this section, is permitted to inspect any return or report or to whom a copy, an abstract or a portion of any return or report is furnished, or to whom any information contained in any return or report is furnished, or any person engaged or retained by such department on an independent contract basis or any person who in any manner may acquire knowledge of the contents of a return or report filed pursuant to this article to divulge or make known in any manner the contents or any other information relating to the business of a distributor, owner or other person contained in any return or report required under this article. The officers charged with the custody of such returns or reports shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the state, the state department of health, or the commissioner in an action or proceeding under the provisions of this chapter or on behalf of the state or the commissioner in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the commissioner is a party or a claimant or on behalf of any party to any action or proceeding under the provisions of this article, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical marihuana on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, in any of which events the court may require the production of, and may admit in evidence so much of said returns or reports or of the facts shown there- by as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the commissioner, in his or her discretion, from allowing the inspection or delivery of a certified copy of any return or report filed under this article or of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the state department of health; or by or to the attorney general or other legal representatives of the state when an action shall have been recommended or commenced pursuant to this chapter in which such returns or reports or the facts shown thereby are directly involved; or the inspection of the returns or reports required under A. 9009--B 57 this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organ- ization, or a duly authorized representative of such registered organ- ization, a certified copy of any return or report filed by such regis- tered organization pursuant to this article, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns or reports and the items thereof. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINIS- TRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL THE REGISTERED ORGANIZATIONS MAKING SALES OF, OR MANUFACTURING, MEDICAL MARIHUANA IN A SPECIFIED COUNTY, WHETHER THE NUMBER OF SUCH REGISTERED ORGANIZATIONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITH- STANDING THE PROVISIONS OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE AN ALLOCATION, FOLLOWING APPROPRIATION BY THE LEGISLATURE, PURSUANT TO THIS ARTICLE AND SECTION EIGHTY-NINE-H OF THE STATE FINANCE LAW, OR THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH OFFICER OR SUCH REPRESENTATIVE WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE. S 2. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 491 of the tax law made by section one of this act shall be deemed to have been in full force and effect on and after January 1, 2016, and shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART JJ Section 1. Subdivision 15 of section 425 of the real property tax law, as added by section 1 of part E of chapter 59 of the laws of 2015, is amended to read as follows: 15. Recoupment of exemptions by commissioner. (a) Generally. If the commissioner should determine, based upon data collected under the STAR registration program, that property improperly received the basic STAR exemption [on] IN THE CURRENT SCHOOL YEAR OR one or more of the three preceding [assessment rolls] SCHOOL YEARS, the commissioner shall treat the exemption as an improperly granted exemption and proceed in the manner provided by this subdivision; provided that final assessment rolls that were filed prior to April first, two thousand eleven shall not be subject to the provisions of this subdivision. (b) Procedure. The tax savings attributable to each such improperly granted exemption shall be collected from the owners whose property improperly received the exemption for the applicable year, together with interest as specified in this subdivision, by utilizing any of the procedures for collection, levy, and lien of personal income tax set forth in article twenty-two of the tax law, any other relevant proce- dures referenced within the provisions of that article, and any other law as may be applicable, so far as practicable when recouping the exemption amount pursuant to this subdivision, except that: (i) IN ORDER FOR THE RECOUPMENT PROCEDURE TO BE CONSIDERED TIMELY, THE NOTICE REQUIRED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH MUST BE MAILED NO A. 9009--B 58 LATER THAN THREE YEARS AFTER THE CONCLUSION OF THE SCHOOL YEAR FOR WHICH THE EXEMPTION IN QUESTION WAS GRANTED, OR IN THE CASE OF AN EXEMPTION THAT WAS GRANTED FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR, NO LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN; (II) prior to directing that an improperly granted exemption be recouped pursuant to this subdivision, the commissioner shall provide the owners with notice and an opportunity to show the commissioner that the exemption was properly granted. If the owners fail to respond to such notice within forty-five days from the mailing thereof, or if their response does not show to the commissioner's satisfaction that the eligibility requirements were in fact satisfied, the commissioner shall proceed with the recoupment of the improperly granted exemption in accordance with the provisions of this subdivision; and [(ii)] (III) notwithstanding the provisions of paragraph (b) of subdi- vision six of this section, neither an assessor nor a board of assess- ment review has the authority to consider an objection to the recoupment of an exemption pursuant to this subdivision, nor may such an action be reviewed in a proceeding to review an assessment pursuant to title one or one-A of article seven of this chapter. Such an action may only be challenged before the department. If an owner is dissatisfied with the department's final determination, the owner may appeal that determi- nation to the board in a form and manner to be prescribed by the commis- sioner. Such appeal shall be filed within forty-five days from the issu- ance of the department's final determination. If dissatisfied with the board's determination, the owner may seek judicial review thereof pursu- ant to article seventy-eight of the civil practice law and rules. The owner shall otherwise have no right to challenge such final determi- nation in a court action, administrative proceeding, including but not limited to an administrative proceeding pursuant to article forty of the tax law, or any other form of legal recourse against the commissioner, the department, the board, the assessor, or any other person, state agency, or local government. (c) The amount to be recouped for each improperly received exemption shall have interest added at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereof since the levy of school taxes upon such assessment roll. (d) In the event that a revocation of prior exemption pursuant to subdivision twelve of this section or a voluntary renunciation of the STAR exemption pursuant to section four hundred ninety-six of this [chapter] ARTICLE has occurred, the provisions of this subdivision shall not be applicable to the exemptions so revoked or voluntarily renounced. S 2. This act shall take effect immediately. PART KK Section 1. Paragraphs a and b of subdivision 1 of section 502 of the tax law, paragraph a as amended by section 1 of part E of chapter 60 of the laws of 2007, and paragraph b as amended by section 1 of part T-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. Each carrier shall apply to the commissioner for a certificate of registration for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state. Application shall be made upon a form prescribed by such commissioner and shall set forth the gross and unloaded weight of each motor vehicle, license plate informa- tion for each motor vehicle and such other information as the commis- A. 9009--B 59 sioner may require. Such weights shall be subject to audit and approval by the commissioner. [The application shall be accompanied by a fee of fifteen dollars for each motor vehicle listed in the application.] The commissioner shall issue [without further charge] a certificate of registration for each motor vehicle or a consolidated certificate of registration for all or any portion of such vehicles of such carrier which shall contain such information and be in such form as the commis- sioner shall prescribe. In the case of the loss, mutilation or destruction of a certificate of registration, the commissioner shall issue a duplicate thereof [upon payment of a fee of two dollars]. Any such certificate of registration shall not be transferable, except as hereinafter provided, and shall be valid until revoked, suspended or surrendered. Such certificate of registration shall be maintained in the carrier's regular place of business. In the event of an increase in the gross or unloaded weight of any motor vehicle subject to this article, application for a corrected certificate of registration shall be made upon a form prescribed by such commissioner setting forth the previous gross or unloaded weight, the new gross or unloaded weight and such other information as the commissioner may require. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, application may be made for a corrected certificate of registration in a similar manner, provided that any such application on the basis of a decrease in the gross or unloaded weight of any motor vehicle may be made only during the month of January. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, an application to cancel a certificate of registration on the basis of such decrease may be made during any month. The corrected gross or unloaded weight shall be subject to audit and approval by the commissioner. In the event of a change to the license plate information of any motor vehicle subject to this article, an application for a corrected certificate of registration shall be made upon a form prescribed by the commissioner setting forth the previous license plate information, the new license plate information and such other informa- tion as the commissioner may require. Upon surrendering the certificate of registration previously issued, the commissioner shall[, without further charge,] issue a corrected certificate of registration. b. Every automotive fuel carrier shall apply to the commissioner for a special certificate of registration, in place of the certificate of registration described in paragraph a of this subdivision, for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state to transport automotive fuel. Provided, however, a special certificate of registration shall not be required under this paragraph for a tractor or other self-propelled device which, except with respect to the fuel in the ordinary fuel tank intended for its propulsion, transports automotive fuel solely by means of a trailer, dolly or other device drawn by such tractor or other self-propelled device if a certificate of registration prescribed by paragraph a of this subdivision has been issued for the self-propelled device. Applica- tion shall be made upon an application form prescribed by the commis- sioner. [The application shall be accompanied by a fee of fifteen dollars for each trailer, semi-trailer, dolly or other device listed in the application.] The commissioner shall issue [without further charge] such special certificate of registration for each motor vehicle listed in the application or a consolidated certificate of registration for all or any portion of such vehicles of such carrier. All of the provisions of this article with respect to certificates of registration shall be A. 9009--B 60 applicable to the special certificates of registration issued to automo- tive fuel carriers under this paragraph as if those provisions had been set forth in full in this paragraph and expressly referred to the special certificates of registration required by this paragraph except to the extent that any such provision is either inconsistent with a provision of this paragraph or not relevant to the certificates of registration required by this paragraph. Any certificate of registration shall not be transferable, and shall be valid until revoked, suspended or surrendered. Such special certificate of registration shall be main- tained in the carrier's regular place of business. Nothing contained in this paragraph shall in any way exempt an automotive fuel carrier from payment of the taxes imposed pursuant to this article. S 2. Paragraphs a and b of subdivision 6 of section 502 of the tax law, as added by section 1 of part K-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. The commissioner may require the use of decals as evidence that a carrier has a valid certificate of registration for each motor vehicle operated or to be operated on the public highways of this state as required by paragraph a of subdivision one of this section. If the commissioner requires the use of decals, the commissioner shall issue for each motor vehicle with a valid certificate of registration a decal that shall be of a size and design and containing such information as the commissioner prescribes. [The fee for any decal issued pursuant to this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a decal, the commissioner shall issue a new decal upon proof of the facts [and payment of four dollars]. The decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued as closely as practical to the registration or license plates and at all times be visible and legible. No decal is transferable. A decal shall be valid until it expires or is revoked, suspended, or surren- dered. b. The commissioner may require the use of special decals as evidence that an automotive fuel carrier has a valid special certificate of registration for each motor vehicle operated or to be operated on the public highways of this state to transport automotive fuel as required by paragraph b of subdivision one of this section. If the commissioner requires the use of special decals, the commissioner shall issue for each motor vehicle with a valid special certificate of registration a special decal that shall be distinctively colored and of a size and design and containing such information as the commissioner prescribes. [The fee for any special decal issued pursuant to this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a special decal, the commissioner shall issue a new special decal upon proof of the facts [and payment of four dollars]. The special decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued pursuant to the rules and regulations prescribed by the commissioner to enable the easy identification of the automotive fuel carrier certificate of registration number and at all times be visible and legible. No special decal is transferable and shall be valid until it expires or is revoked, suspended, or surrendered. S 3. The tax law is amended by adding a new section 502-a to read as follows: S 502-A. CERTIFICATE OF REGISTRATION AND DECAL FEES. THE APPLICATION FOR A CERTIFICATE OF REGISTRATION AND DECAL DESCRIBED IN PARAGRAPH A OF SUBDIVISION ONE AND PARAGRAPH A OF SUBDIVISION SIX OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE, OR A SPECIAL CERTIFICATE OF REGISTRATION A. 9009--B 61 AND SPECIAL DECAL AS DESCRIBED IN PARAGRAPH B OF SUBDIVISION ONE AND PARAGRAPH B OF SUBDIVISION SIX OF SUCH SECTION, SHALL BE ACCOMPANIED BY A FEE OF ONE DOLLAR AND FIFTY CENTS. IN THE CASE OF THE LOSS, MUTILA- TION OR DESTRUCTION OF ANY SUCH DOCUMENTS, THE COMMISSIONER SHALL ISSUE A DUPLICATE SET THEREOF UPON PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY CENTS. PROVIDED, HOWEVER, THERE SHALL BE NO ADDITIONAL CHARGE FOR THE ISSUANCE OF A CORRECTED CERTIFICATE OF REGISTRATION PURSUANT TO PARA- GRAPH A OF SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE. S 4. Subdivision 8 of section 509 of the tax law, as separately amended by section 3 of part K-1 and section 2 of part T-1 of chapter 57 of the laws of 2009, is amended to read as follows: 8. To issue replacement certificates of registration or decals at such times as the commissioner may deem necessary for the proper and effi- cient enforcement of the provisions of this article, but not more often than once every year and to require the surrender of the then outstand- ing certificates of registration and decals. All of the provisions of this article with respect to certificates of registration and decals shall be applicable to replacement certificates of registration and decals issued hereunder, except that the replacement certificate of registration or decal shall be issued upon payment of a fee of [fifteen dollars] ONE DOLLAR AND FIFTY CENTS for each motor vehicle and for any trailer, semi-trailer, dolly or other device drawn thereby for which a certificate of registration or decal is required to be issued under this article; S 5. Section 515 of the tax law, as added by chapter 329 of the laws of 1991, is amended to read as follows: S 515. Disposition of revenues. All taxes, interest, penalties and fees collected or received pursuant to this article shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, and to the credit of the comptroller on account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. Such an account may be established in one or more of such depositories and such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the revenues so deposited, the comptroller shall retain in his hands such amount as the commissioner of taxation and finance may deter- mine to be necessary for refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under the provisions of this article, out of which amount the comptroller shall pay any refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under such provisions. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the last day of each month, pay the balance of the revenue so deposited during such month into the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. NOTWITHSTANDING THE FOREGOING OR ANY OTHER LAW TO THE CONTRARY, THE COMPTROLLER SHALL DEPOSIT ALL MONIES COLLECTED ON ACCOUNT OF THE REGIS- TRATION FEES IMPOSED PURSUANT TO SECTION FIVE HUNDRED TWO-A AND SUBDIVI- SION EIGHT OF SECTION FIVE HUNDRED NINE OF THIS ARTICLE INTO THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-NINE-Y OF THE STATE FINANCE LAW. THE MONIES DEPOSITED IN SUCH ACCOUNT SHALL BE AVAILABLE TO THE COMMISSIONER FOR THE COSTS OF ISSUING THE CERTIFICATES OF REGISTRATION AND HIGHWAY USE TAX DECALS REQUIRED BY A. 9009--B 62 THIS ARTICLE AND FOR ANY OTHER COSTS OF ADMINISTERING THE PROVISIONS OF SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THIS ARTICLE. ANY MONEYS NOT USED IN A GIVEN YEAR SHALL BE RETURNED TO SUCH ACCOUNT AND BE ADDED TO THE TOTAL FUNDS AVAILABLE FOR DISBURSEMENT IN THE SUCCEEDING YEAR. S 6. The state finance law is amended by adding a new section 99-y to read as follows: S 99-Y. HIGHWAY USE TAX ADMINISTRATION ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL ACCOUNT TO BE KNOWN AS THE "HIGHWAY USE TAX ADMINISTRATION ACCOUNT". 2. THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT SHALL CONSIST OF ALL MONIES COLLECTED FROM THE HIGHWAY USE TAX REGISTRATION AND DECAL FEES COLLECTED PURSUANT TO SECTIONS FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND ANY OTHER MONIES DEPOSITED INTO THE ACCOUNT PURSUANT TO LAW. 3. MONIES OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE, SHALL BE USED FOR THE COSTS OF THE COMMISSIONER OF TAXATION AND FINANCE IN ADMINISTERING SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND EXPENDED FOR THE PURPOSES SET FORTH IN SECTION FIVE HUNDRED FIFTEEN OF THE TAX LAW. S 7. This act shall take effect immediately. PART LL Section 1. This act shall be known and may be cited as the "empire state apprenticeship program". S 2. This act enacts into law components of legislation relating to the empire state apprenticeship program. Each component is wholly contained within a Subpart identified as Subparts A through B. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, 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 Subpart in which it is found. Section four of this act sets forth the general effective date of this act. SUBPART A Section 1. The labor law is amended by adding a new section 25-c to read as follows: S 25-C. POWER TO ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM TO PROVIDE TAX INCEN- TIVES TO QUALIFIED AND CERTIFIED EMPLOYERS FOR EMPLOYING QUALIFIED APPRENTICES PURSUANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED ELEVEN OF THIS CHAPTER. THE COMMISSIONER IS AUTHORIZED TO PROVIDE TAX CREDITS TO BE ALLOCATED UP TO TEN MILLION DOLLARS OF TAX CREDITS ANNUALLY, BEGINNING TAXABLE YEAR TWO THOUSAND SIXTEEN AND ENDING BEFORE TAXABLE YEAR TWO THOUSAND TWENTY. ANY UNUSED ALLOCATION OF THE CREDIT SHALL BE MADE AVAILABLE IN EACH OF THE SUBSEQUENT TAXABLE YEARS FOR ALL ELIGIBLE YEARS OF THE APPRENTICESHIP ALLOWED UNDER SUBDIVISION (C) OF THIS SECTION. A. 9009--B 63 (B) DEFINITIONS. (1) THE TERM "APPRENTICESHIP AGREEMENT" MEANS THE AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER. (2) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS ENTERED INTO A REGISTERED APPRENTICESHIP AGREEMENT. FOR THE PURPOSES OF THIS SECTION A "QUALIFIED EMPLOYER" SHALL NOT INCLUDE AN EMPLOYER THAT IS A CONTRACTOR OR SUBCONTRACTOR WHO IS A PARTNERSHIP, FIRM, CORPORATION, LIMITED LIABILITY COMPANY, ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED BY LAW TO DO BUSINESS WITHIN THE STATE WHO ENGAGES IN CONSTRUCTION AS DEFINED IN THIS SECTION AND WHOSE APPRENTICESHIP AGREEMENT INCLUDES SKILLS RELATED TO THE CONSTRUCTION INDUSTRY. (3) FOR PURPOSES OF THIS SECTION, THE TERM "CONSTRUCTION" MEANS CONSTRUCTING, RECONSTRUCTING, ALTERING, MAINTAINING, MOVING, REHABILI- TATING, REPAIRING, RENOVATING, FABRICATING, SERVICING, OR DEMOLITION OF ANY BUILDING, STRUCTURE, OR IMPROVEMENT, OR COMPONENT, OR RELATING TO THE EXCAVATION OF OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND. (4) THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT HAS BEEN CERTIFIED AS ELIGIBLE BY THE COMMISSIONER TO PARTICIPATE IN THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM ESTABLISHED IN THIS SECTION. (5) THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED IN A FULL TIME POSITION FOR AT LEAST SIX MONTHS OF A TAXABLE YEAR AND WHO HAS ENTERED INTO AN AGREEMENT WITH A QUALIFIED EMPLOYER PURSUANT TO SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER. (6) THE TERM "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION, GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A REGULAR BASIS THROUGHOUT THEIR APPRENTICESHIP UNTIL THE COMPLETION OF THEIR APPRENTICESHIP AND FOR THE YEAR AFTER THEY COMPLETE THEIR APPRENTICESHIP AS THE APPRENTICE SEEKS EMPLOYMENT IN THE FIELD OR INDUSTRY OF THEIR APPRENTICESHIP. THE GOAL OF THE MENTOR IS TO HELP TRAIN THE APPRENTICE IN HIS OR HER TRADE AND TO HELP THE APPRENTICE SUCCESSFULLY COMPLETE THE APPRENTICESHIP AND TO SECURE AND RETAIN EMPLOYMENT. (C) (1) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT AGAINST INCOME TAX FOR EACH QUALIFIED APPRENTICE FOR TAX YEAR EQUAL TO: (A) THE LESSER OF TWO THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE FIRST YEAR OF THE APPRENTICESHIP; (B) THE LESSER OF THREE THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE SECOND YEAR OF THE APPRENTICESHIP; AND (C) THE LESSER OF FOUR THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF THE APPRENTICESHIP. (2) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO AN ENHANCED TAX CREDIT IF THE EMPLOYER CAN SHOW THAT THE APPRENTICE FOR WHICH THE EMPLOYER RECEIVED THE TAX CREDIT PURSUANT TO THIS SUBDIVISION IS BEING TRAINED IN HIS OR HER TRADE BY A MENTOR AS DEFINED IN THIS SECTION. THE ENHANCED CREDIT SHALL BE AN ADDITIONAL FIVE HUNDRED DOLLARS FOR EACH YEAR OF THE APPRENTICESHIP IN ADDITION TO THE BASE TAX CREDIT DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION. (D) TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER THIS SECTION, A QUALIFIED EMPLOYER MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY THE COMMISSIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, BUT NO LATER THAN NOVEMBER THIRTIETH OF EACH YEAR DURING TAXABLE YEARS THE CREDIT IS ALLOCATED. THE QUALIFIED APPRENTICES MUST START THEIR EMPLOYMENT ON OR AFTER JANUARY FIRST BUT NO LATER THAN DECEMBER THIRTY-FIRST, OF THE YEAR FOR WHICH THE QUALIFIED EMPLOYER SEEKS THE TAX CREDIT. (E) AS PART OF SUCH APPLICATION, EACH QUALIFIED EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A. 9009--B 64 A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW. (2) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE. (F) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR QUALIFIED EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUDING CRITERIA FOR CERTIFYING QUALIFIED APPRENTICES. ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY AND ARE CONSISTENT WITH THE PURPOSE OF THIS ARTICLE MAY BE ADOPTED ON AN EMER- GENCY BASIS NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT. THE COMMISSIONER MAY GIVE PREFERENCE TO QUALIFIED EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUS- TRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING THOSE IDENTIFIED BY THE DEPARTMENT, SUCH AS CLEAN ENERGY, HEALTH CARE, ADVANCED MANUFACTURING AND CONSERVATION. (G)(I) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY A QUALIFIED EMPLOYER, THE COMMISSIONER DETERMINES THAT SUCH QUALIFIED EMPLOYER IS ELIGIBLE TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER THIS SECTION, THE COMMISSIONER SHALL ISSUE THE QUALIFIED EMPLOYER A CERTIFICATE WITHIN NINETY DAYS OF APPLICATION OF ELIGIBILITY THAT ESTABLISHES THE QUALIFIED EMPLOYER AS A CERTIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL SPECIFY THE MAXIMUM AMOUNT OF TAX CREDIT THAT THE CERTIFIED EMPLOYER WILL BE ALLOWED TO CLAIM. (II) FOR EACH SUBSEQUENT APPLICATION SUBMITTED BY A QUALIFIED EMPLOYER WHO WAS CERTIFIED BY THE COMMISSIONER IN A PRIOR TAX YEAR, THE COMMIS- SIONER MAY CONSIDER THE FOLLOWING FACTORS WHEN DETERMINING IF THE QUALI- FIED EMPLOYER SHOULD BE RE-CERTIFIED: (A) THE LENGTH OF THE APPRENTICESHIP AGREEMENT THE EMPLOYER HAS ENTERED INTO; (B) HOW MANY APPRENTICES HAVE GRADUATED FROM THE APPRENTICESHIP PROGRAM TO WHICH THE QUALIFIED APPRENTICE EMPLOYED BY THE EMPLOYER BELONGS; (C) HOW MANY APPRENTICES IN THE FIRST, SECOND, THIRD, FOURTH, OR FIFTH YEAR OF AN APPRENTICESHIP PROGRAM THE QUALIFIED EMPLOYER HAS HIRED; AND (D) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT. (H) CERTIFIED EMPLOYERS THAT EMPLOY A QUALIFIED APPRENTICE PURSUANT TO AN APPRENTICESHIP AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS ARTICLE THAT REQUIRES THE APPRENTICE TO BE TAUGHT TRADE OR CRAFT DIVISIONS BY MORE THAN ONE EMPLOYER SHALL BE ELIGIBLE FOR THE CREDIT BASED ON THE TOTAL NUMBER OF HOURS SUCH APPRENTICE IS EMPLOYED BY EACH SUCH EMPLOYER IF THE TOTAL NUMBER OF HOURS EMPLOYED EXCEEDS THE MINIMUM NUMBER OF HOURS REQUIRED TO BE A QUALIFIED APPRENTICESHIP UNDER PARA- GRAPH FIVE OF SUBDIVISION (B) OF THIS SECTION, AS DETERMINED PURSUANT TO REGULATIONS OF THE DEPARTMENT. (I) THE COMMISSIONER SHALL ANNUALLY PUBLISH A REPORT WITHIN ONE HUNDRED EIGHTY DAYS OF THE CLOSE OF THE TAX YEAR. SUCH REPORT MUST CONTAIN THE NAMES AND ADDRESSES OF ANY CERTIFIED EMPLOYER ISSUED A CERTIFICATE OF ELIGIBILITY UNDER THIS SECTION, AND THE MAXIMUM AMOUNT OF EMPIRE STATE APPRENTICESHIP TAX CREDIT ALLOWED TO THE CERTIFIED EMPLOYER AS SPECIFIED ON SUCH CERTIFICATE OF ELIGIBILITY. THE COMMISSIONER SHALL INCLUDE IN SUCH REPORT RECOMMENDATIONS FOR LEGISLATIVE OR OTHER ACTION TO FURTHER THE INTENT AND PURPOSE OF THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM. (J) THE COMMISSIONER SHALL PROMOTE, PUBLISH AND DISSEMINATE INFORMA- TION CONCERNING THE EMPIRE STATE APPRENTICESHIP TAX CREDIT AND OTHER A. 9009--B 65 AVAILABLE FUNDING, PARTICULARLY TARGETING INDUSTRIES AND FIELDS OF BUSI- NESS NOT CURRENTLY TAKING ADVANTAGE OF APPRENTICESHIPS. S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 49 to read as follows: 49. EMPIRE STATE APPRENTICESHIP TAX CREDIT. (A) A TAXPAYER THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH QUALIFIED APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS FOR THE FIRST YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR THE SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE THIRD YEAR OF THE APPRENTICESHIP; (IV) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE- SHIP. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED APPRENTICE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE QUALIFIED APPRENTICE. (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT 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 THE CREDIT ALLOWED UNDER THIS SUBDI- VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT 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, NO INTEREST WILL BE PAID THEREON. (C) THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY- ER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG- NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP, ONLY THE AMOUNT OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED. S 3. Section 606 of the tax law is amended by adding a new subsection (vvv) to read as follows: (VVV) EMPIRE STATE APPRENTICESHIP TAX CREDIT. (1)(A) A TAXPAYER THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH QUALIFIED APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS FOR THE FIRST YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR THE SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE THIRD YEAR OF THE APPRENTICESHIP; (IV) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE- SHIP. (B) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPORATION THAT HAS BEEN A. 9009--B 66 CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION. (C) FOR PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED APPRENTICE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN CLAUSE (I) THROUGH (V) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE QUALI- FIED APPRENTICE. (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC- TIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. (3) THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY- ER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG- NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP, OR A SHAREHOLDER IN A SUBCHAPTER S CORPORATION, ONLY THE AMOUNT OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED. S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows: (XLIII) EMPIRE STATE APPRENTICESHIP AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION SUBDIVISION FORTY-NINE OF (VVV) SECTION TWO HUNDRED TEN-B S 5. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2016. SUBPART B Section 1. The labor law is amended by adding a new article 23-D to read as follows: ARTICLE 23-D EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL BUSINESS AND NOT-FOR-PROFIT CORPORATIONS SECTION 833. EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL BUSI- NESS AND NOT-FOR-PROFIT CORPORATIONS. S 833. EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL BUSINESS AND NOT-FOR-PROFIT CORPORATIONS. 1. THE DEPARTMENT SHALL ESTABLISH A GRANT PROGRAM DESIGNED TO ENCOURAGE THE ADOPTION OF APPRENTICESHIPS ADMINISTERED BY SMALL BUSINESSES AND NOT-FOR-PROFIT CORPORATIONS. THE DEPARTMENT SHALL PROVIDE GRANTS WITHIN AVAILABLE APPROPRIATIONS, ON A COMPETITIVE BASIS, IN RESPONSE TO A REQUEST FOR PROPOSAL FROM ELIGIBLE ENTITIES. THE PROGRAM SHALL PROVIDE ONE TO ONE STATE MATCHING FUNDS TO ELIGIBLE ENTITIES NOT TO EXCEED FIFTY THOUSAND DOLLARS ANNUALLY. AN ELIGIBLE ENTITY SHALL INCLUDE A BUSINESS EMPLOYING AND/OR TRAINING AN A. 9009--B 67 APPRENTICE PURSUANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED ELEVEN OF THIS CHAPTER WHICH IS RESIDENT IN THIS STATE, INDE- PENDENTLY OWNED AND OPERATED, AND EMPLOYS TWENTY-FIVE OR LESS PERSONS, OR A NOT-FOR-PROFIT ORGANIZATION EMPLOYING AND/OR TRAINING AN APPRENTICE PURSUANT TO AN APPRENTICESHIP AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER AND REGISTERED WITH THE DEPARTMENT. AN ELIGIBLE ENTITY SHALL NOT INCLUDE AN EMPLOYER WHO IS A CONTRACTOR OR SUBCONTRACTOR WHO IS A PARTNERSHIP, FIRM, CORPORATION, LIMITED LIABILITY COMPANY, ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED BY LAW TO DO BUSI- NESS WITHIN THE STATE WHO ENGAGES IN CONSTRUCTION. FOR PURPOSES OF THIS SECTION, THE TERM "CONSTRUCTION" MEANS CONSTRUCTING, RECONSTRUCTING, ALTERING, MAINTAINING, MOVING, REHABILITATING, REPAIRING, RENOVATING, FABRICATING, SERVICING, OR DEMOLITION OF ANY BUILDING, STRUCTURE, OR IMPROVEMENT, OR COMPONENT, OR RELATING TO THE EXCAVATION OF OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND. THE DEPARTMENT MAY USE GRANT FUNDS ONLY FOR COSTS RELATED TO APPRENTICESHIP PROGRAMS FOR CAPITAL AND/OR OPERATING EXPENSES, AND TO SUPPORT DEDICATED MENTORS FOR APPRENTICES. THE COMMISSIONER IS DIRECTED TO ESTABLISH GUIDELINES AND AN APPLICATION PROCESS. TOTAL STATEWIDE EXPENDITURES FOR THE GRANT PROGRAM SHALL NOT EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS PER YEAR. 2. THE STATE APPRENTICESHIP AND TRAINING COUNCIL SHALL REVIEW REQUESTS FOR PROPOSALS AND WILL RECOMMEND PROJECT APPLICATIONS DEEMED TO MEET THE INTENT OF THE PROGRAM TO THE DEPARTMENT. 3. THE DEPARTMENT SHALL REPORT ON OR BEFORE OCTOBER FIRST, TWO THOU- SAND SEVENTEEN AND ANNUALLY THEREAFTER TO THE GOVERNOR, TEMPORARY PRESI- DENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, AND CHAIRS OF THE ASSEMBLY COMMITTEE ON LABOR AND THE LEGISLATIVE COMMISSION ON SKILLS DEVELOPMENT AND CAREER EDUCATION ON ACTIVITIES AND PROGRESS OF THE GRANT. SUCH REPORT SHALL CONTAIN THE NAMES, ADDRESSES AND DESCRIPTIONS OF ANY ELIGI- BLE ENTITY ISSUED A GRANT UNDER THIS SECTION, THE AMOUNT OF THE GRANT ALLOWED TO THE EMPLOYER, FOR WHAT PURPOSES, THE NUMBER OF APPRENTICES AND THEIR TRADE OR TRADES, AND WHETHER EACH APPRENTICESHIP IS A NEW JOB CREATED AFTER BEING ISSUED A GRANT PURSUANT TO THIS PROGRAM. S 2. This act shall take effect immediately. S 3. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 4. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through B of this part shall be as specifically set forth in the last section of such Subparts. PART MM Section 1. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) UNIVERSAL VISITABILITY TAX CREDIT. 1. FOR TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, UNTIL DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR A PORTION OF THE A. 9009--B 68 TOTAL PURCHASE PRICE PAID BY SUCH TAXPAYER FOR A PRINCIPAL RESIDENCE ATTRIBUTABLE TO UNIVERSAL VISITABILITY OR THE TOTAL AMOUNT EXPENDED BY A TAXPAYER TO RETROFIT AN EXISTING PRINCIPAL RESIDENCE TO ACHIEVE UNIVERSAL VISITABILITY PROVIDED THAT THE PRINCIPAL RESIDENCE OR THE RETROFITTING OF THE EXISTING PRINCIPAL RESIDENCE IS LOCATED WITHIN THIS STATE AND DESIGNED TO PROVIDE UNIVERSAL VISITABILITY AS DEFINED THROUGH THE ELIGIBILITY REQUIREMENTS ESTABLISHED BY GUIDELINES DEVELOPED BY THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE DEPARTMENT OF STATE. FOR THE PURPOSE OF THIS SUBSECTION, PRINCIPAL RESIDENCE SHALL MEAN SUCH RESIDENCE PURSUANT TO SECTION ONE HUNDRED TWENTY-ONE OF THE INTERNAL REVENUE CODE. 2. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE RESI- DENCE HAS BEEN PURCHASED OR CONSTRUCTED, OR THE RETROFITTING OR RENO- VATION OF THE RESIDENCE OR RESIDENTIAL UNIT HAS BEEN COMPLETED. THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED (I) TWENTY-SEVEN HUNDRED FIFTY DOLLARS FOR THE PURCHASE OF A NEW RESIDENCE, OR (II) FIFTY PERCENT OF THE TOTAL AMOUNT EXPENDED, BUT NOT TO EXCEED TWENTY-SEVEN HUNDRED FIFTY DOLLARS FOR THE RETROFITTING OR RENOVATION OF EACH EXIST- ING RESIDENCE OR UNIT. 3. NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION FOR THE PURCHASE, RETROFITTING OR RENOVATION OF RESIDENTIAL RENTAL PROPERTY. 4. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 5. ELIGIBLE TAXPAYERS SHALL APPLY FOR THE CREDIT BY MAKING APPLICATION TO THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE DEPARTMENT OF STATE. THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE DEPARTMENT OF STATE SHALL ISSUE A CERTIFICATION FOR AN APPROVED APPLICATION TO THE TAXPAYER. THE TAXPAYER SHALL SUBMIT THE CERTIFICATION TOGETHER WITH THEIR PERSONAL INCOME RETURN. 6. (A) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY OF THIS SUBSECTION SHALL BE ONE MILLION DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND SEVENTEEN THROUGH TWO THOUSAND TWENTY-ONE. SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF STATE AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF CREDIT WITH THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR. (B) THE SECRETARY OF STATE, AFTER CONSULTING WITH THE COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST, TWO THOUSAND SIXTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS REQUIRED BY THIS SUBPARAGRAPH. SUCH RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE DUE DAYS FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICA- TIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO SUBSTAN- TIATE TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRI- ATE. NOTWITHSTANDING ANY OTHER PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGULATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH OCTOBER THIRTY-FIRST, TWO THOUSAND SIXTEEN DEADLINE. A. 9009--B 69 7. THE DEPARTMENT OF STATE SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, AN ANNUAL REPORT TO BE SUBMITTED BY FEBRUARY FIRST OF EACH YEAR EVALUATING THE EFFECTIVENESS OF THE UNIVERSAL VISITABILITY TAX CREDIT PROVIDED BY THIS SECTION. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICA- TION FILED WITH THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION FOR UNIVERSAL VISITABILITY CREDITS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE INFORMATION CONTAINED IN THE REPORT SHALL BE PUBLIC INFORMATION. THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS OF CHANGES IN THE CALCULATION OR ADMINISTRATION OF THE CREDIT, AND ANY OTHER RECOM- MENDATION OF THE COMMISSIONER OF THE DEPARTMENT OF STATE OR THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION REGARDING CONTINUING MODIFICA- TION, REPEAL OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT AS THE DIVISION MAY FEEL USEFUL AND APPROPRIATE. S 2. This act shall take effect immediately and shall expire and be deemed repealed December 31, 2021. PART NN Section 1. This act enacts into law major components of legislation relating to income tax. Each component is wholly contained within a Subpart identified as Subparts A through B. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Paragraph 1 of subsection (d) of section 606 of the tax law, as amended by section 1 of part Q of chapter 63 of the laws of 2000, is amended to read as follows: (1) General. A taxpayer shall be allowed a credit as provided herein equal to (i) the applicable percentage of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, (ii) reduced by the credit permitted under subsection (b) of this section. The applicable percentage shall be (i) seven and one-half percent for taxable years beginning in nineteen hundred ninety-four, (ii) ten percent for taxable years beginning in nineteen hundred ninety-five, (iii) twenty percent for taxable years beginning after nineteen hundred ninety-five and before two thousand, (iv) twenty-two and one-half percent for taxable years beginning in two thousand, (v) twenty-five percent for taxable years beginning in two thousand one, (vi) twenty- seven and one-half percent for taxable years beginning in two thousand two, and (vii) thirty percent for taxable years beginning in two thou- sand three, and (VIII) THIRTY-TWO AND ONE-HALF PERCENT FOR THE TAXABLE YEAR BEGINNING IN TWO THOUSAND EIGHTEEN, AND (IX) THIRTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN AND thereafter. Provided, however, that if the reversion event, as defined in this para- graph, occurs, the applicable percentage shall be twenty percent for taxable years ending on or after the date on which the reversion event occurred. The reversion event shall be deemed to have occurred on the A. 9009--B 70 date on which federal action, including but not limited to, administra- tive, statutory or regulatory changes, materially reduces or eliminates New York state's allocation of the federal temporary assistance for needy families block grant, or materially reduces the ability of the state to spend federal temporary assistance for needy families block grant funds for the earned income credit or to apply state general fund spending on the earned income credit toward the temporary assistance for needy families block grant maintenance of effort requirement, and the commissioner of the office of temporary and disability assistance shall certify the date of such event to the commissioner of taxation and finance, the director of the division of the budget, the speaker of the assembly and the temporary president of the senate. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after 2018. SUBPART B Section 1. Paragraph 1 of subsection (a) of section 601 of the tax law, as amended by section 1 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (1) (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING BRACKETS AND DOLLAR AMOUNTS SHALL APPLY, AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAXABLE YEARS TWO THOUSAND THIRTEEN AND THEREAFTER: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $16,000 4% OF TAXABLE INCOME OVER $16,000 BUT NOT OVER $22,000 $640 PLUS 4.5% OF EXCESS OVER $16,000 OVER $22,000 BUT NOT OVER $26,000 $910 PLUS 5.25% OF EXCESS OVER $22,000 OVER $26,000 BUT NOT OVER $40,000 $1,120 PLUS 5.90% OF EXCESS OVER $26,000 OVER $40,000 BUT NOT OVER $150,000 $1,946 PLUS 6.25% OF EXCESS OVER $40,000 OVER $150,000 BUT NOT OVER $300,000 $8,821 PLUS 6.65% OF EXCESS OVER $150,000 OVER $300,000 BUT NOT OVER $1,000,000 $18,796 PLUS 6.85% OF EXCESS OVER $300,000 OVER $1,000,000 BUT NOT OVER $66,746 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 BUT NOT OVER $419,546 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 $885,546 PLUS 9.82% OF EXCESS OVER $10,000,000 (B) For taxable years beginning after two thousand eleven and before two thousand eighteen: If the New York taxable income is: The tax is: Not over $16,000 4% of taxable income Over $16,000 but not over $22,000 $640 plus 4.5% of excess over $16,000 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over $22,000 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over A. 9009--B 71 $26,000 Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess over $40,000 Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess over $150,000 Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess over $300,000 Over $2,000,000 $135,466 plus 8.82% of excess over $2,000,000 [(B) For taxable years beginning after two thousand seventeen, the following brackets and dollar amounts shall apply, as adjusted by the cost of living adjustment prescribed in section six hundred one-a of this part for tax years two thousand thirteen through two thousand seventeen: If the New York taxable income is: The tax is: Not over $16,000 4% of taxable income Over $16,000 but not over $22,000 $640 plus 4.5% of excess over $16,000 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over $22,000 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over $26,000 Over $40,000 $1,946 plus 6.85% of excess over $40,000] S 2. Paragraph 1 of subsection (b) of section 601 of the tax law, as amended by section 2 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (1) (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING BRACKETS AND DOLLAR AMOUNTS SHALL APPLY, AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAXABLE YEARS TWO THOUSAND THIRTEEN AND THEREAFTER: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $12,000 4% OF TAXABLE INCOME OVER $12,000 BUT NOT OVER $16,500 $480 PLUS 4.5% OF EXCESS OVER $12,000 OVER $16,500 BUT NOT OVER $19,500 $683 PLUS 5.25% OF EXCESS OVER $16,500 OVER $19,500 BUT NOT OVER $30,000 $840 PLUS 5.90% OF EXCESS OVER $19,500 OVER $30,000 BUT NOT OVER $100,000 $1,460 PLUS 6.25% OF EXCESS OVER $30,000 OVER $100,000 BUT NOT OVER $250,000 $5,835 PLUS 6.65% OF EXCESS OVER $100,000 OVER $250,000 BUT NOT OVER $1,000,000 $15,810 PLUS 6.85% OF EXCESS OVER $250,000 OVER $1,000,000 BUT NOT OVER $67,185 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 BUT NOT OVER $419,985 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 $885,985 PLUS 9.82% OF EXCESS OVER $10,000,000 A. 9009--B 72 (B) For taxable years beginning after two thousand eleven and before two thousand eighteen: If the New York taxable income is: The tax is: Not over $12,000 4% of taxable income Over $12,000 but not over $16,500 $480 plus 4.5% of excess over $12,000 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over $16,500 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over $19,500 Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess over $30,000 Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess over $100,000 Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess over $250,000 Over $1,500,000 $101,575 plus 8.82% of excess over $1,500,000 [(B) For taxable years beginning after two thousand seventeen, the following brackets and dollars amounts shall apply, as adjusted by the cost of living adjustment prescribed in section six hundred one-a of this part for tax years two thousand thirteen through two thousand seventeen: If the New York taxable income is: The tax is: Not over $12,000 4% of taxable income Over $12,000 but not over $16,500 $480 plus 4.5% of excess over $12,000 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over $16,500 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over $19,500 Over $30,000 $1,460 plus 6.85% of excess over $30,000] S 3. Paragraph 1 of subsection (c) of section 601 of the tax law, as amended by section 3 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (1) (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING BRACKETS AND DOLLAR AMOUNTS SHALL APPLY, AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAXABLE YEARS TWO THOUSAND THIRTEEN AND THEREAFTER: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $8,000 4% OF TAXABLE INCOME OVER $8,000 BUT NOT OVER $11,000 $320 PLUS 4.5% OF EXCESS OVER $8,000 OVER $11,000 BUT NOT OVER $13,000 $455 PLUS 5.25% OF EXCESS OVER $11,000 OVER $13,000 BUT NOT OVER $20,000 $560 PLUS 5.90% OF EXCESS OVER $13,000 OVER $20,000 BUT NOT OVER $75,000 $973 PLUS 6.25% OF EXCESS OVER A. 9009--B 73 $20,000 OVER $75,000 BUT NOT OVER $200,000 $4,411 PLUS 6.65% OF EXCESS OVER $75,000 OVER $200,000 BUT NOT OVER $1,000,000 $12,723 PLUS 6.85% OF EXCESS OVER $200,000 OVER $1,000,000 BUT NOT OVER $67,523 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 BUT NOT OVER $420,323 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 $886,323 PLUS 9.82% OF EXCESS OVER $10,000,000 (B) For taxable years beginning after two thousand eleven and before two thousand eighteen: If the New York taxable income is: The tax is: Not over $8,000 4% of taxable income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over $13,000 Over $20,000 but not over $75,000 $973 plus 6.45% of excess over $20,000 Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess over $75,000 Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess over $200,000 Over $1,000,000 $67,633 plus 8.82% of excess over $1,000,000 [(B) For taxable years beginning after two thousand seventeen, the following brackets and dollars amounts shall apply, as adjusted by the cost of living adjustment prescribed in section six hundred one-a of this part for tax years two thousand thirteen through two thousand seventeen: If the New York taxable income is: The tax is: Not over $8,000 4% of taxable income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over $13,000 Over $20,000 $973 plus 6.85% of excess over $20,000] S 4. Subsection (a) of section 601-a of the tax law, as amended by section 10 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (a) For tax year two thousand thirteen, the commissioner, not later than September first, two thousand twelve, shall multiply the amounts specified in subsection (b) of this section for tax year two thousand twelve by one plus the cost of living adjustment described in subsection A. 9009--B 74 (c) of this section. For tax year two thousand fourteen, the commission- er, not later than September first, two thousand thirteen, shall multi- ply the amounts specified in subsection (b) of this section for tax year two thousand thirteen by one plus the cost of living adjustment. For each succeeding tax year after tax year two thousand fourteen and [before tax year two thousand eighteen] THEREAFTER, the commissioner, not later than September first of such tax year, shall multiply the amounts specified in subsection (b) of this section for such tax year by one plus the cost of living adjustment described in subsection (c) of this section for such tax year. S 5. Subsection (d-2) of section 601 of the tax law is REPEALED and a new subsection (d-2) is added to read as follows: (D-2) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (D) AND (D-1) OF THIS SECTION, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN AND THEREAFTER, THERE IS HEREBY IMPOSED A SUPPLEMENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A), (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAP- TURING THE BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION. (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C), (D), (E) AND (F) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRAC- TIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 6.25 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEV- ER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.65 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFIT IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS A. 9009--B 75 FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THREE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C) AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (F) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C), (D) AND (E) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (G) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA- GRAPHS (A), (B), (C), (D) AND (E) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK A. 9009--B 76 ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED FIFTY THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEV- ER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C) AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (F) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS, THE SUPPLE- MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS A. 9009--B 77 DESCRIBED IN SUBPARAGRAPHS (A), (B), (C), (D) AND (E) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION. THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINA- TOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C) AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND A. 9009--B 78 DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (F) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. S 6. Subsection (f) of section 614 of the tax law, as amended by section 11 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (f) Adjusted standard deduction. For taxable years beginning after two thousand seventeen, the standard deductions set forth in this section shall be the amounts set forth in this section adjusted by the cost of living adjustment prescribed in section six hundred one-a of this part for tax years two thousand thirteen [through two thousand seventeen] AND THEREAFTER. S 7. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by regulations of the commissioner of taxation and finance with due consideration to the effect such withhold- ing tables and methods would have on the receipt and amount of revenue. The commissioner of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2018 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reasonably estimated to be due for such taxable years as a result of the provisions of this act. Any such regulations to implement a change in withholding tables and methods for tax year 2018 shall be adopted and effective as soon as practicable and the commissioner of taxation and finance may adopt such regulations on an emergency basis notwithstanding anything to the contrary in section 202 of the state administrative procedure act. The commissioner of taxation and finance, in carrying out the duties and responsibilities under this section, may accompany such a rule making procedure with a similar procedure with respect to the taxes required to be deducted and withheld by local laws imposing taxes pursu- ant to the authority of articles 30, 30-A and 30-B of the tax law, the provisions of any other law in relation to such a procedure to the contrary notwithstanding. S 8. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through B of this act shall be as specifically set forth in the last section of such Subparts. PART OO A. 9009--B 79 Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax law, as amended by section 34 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (1) General. The tax factor shall be, in the case of article nine-A of this chapter, the amount of tax determined for the taxable year under paragraph (a) of subdivision one of section two hundred ten of such article. The tax factor shall be, in the case of article twenty-two of this chapter, the tax determined for the taxable year under subsections (a) through (d) of section six hundred one of such article. PROVIDED HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT- ABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. The tax factor shall be, in the case of article thirty- three of this chapter, the larger of the amounts of tax determined for the taxable year under paragraphs one and three of subdivision (a) of section fifteen hundred two of such article. S 2. This act shall take effect immediately. PART PP Section 1. The economic development law is amended by adding a new article 23 to read as follows: ARTICLE 23 UPSTATE REINVESTMENT ZONES SECTION 460. POWER TO ADMINISTER THE UPSTATE REINVESTMENT ZONES TAX CREDIT. S 460. POWER TO ADMINISTER THE UPSTATE REINVESTMENT ZONES TAX CREDIT. (A) THE COMMISSIONER IS AUTHORIZED TO ADMINISTER THE UPSTATE REINVEST- MENT ZONES TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO BUSINESSES FOR THE QUALIFIED PURCHASE OF A BUILDING OR BUILDINGS OR QUALIFIED REHA- BILITATION EXPENDITURES IN SUCH ZONE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TEN MILLION DOLLARS OF TAX CREDITS UNDER THIS PROGRAM PER YEAR. THE AMOUNT OF CREDIT SHALL BE TWENTY PERCENT OF THE QUALIFIED PURCHASE AND QUALIFIED REHABILITATION EXPENDITURES OF BUILDINGS AND REHABILITATIONS, AS SUCH AMOUNT IS COMPUTED PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW. (B) DEFINITIONS. (1) THE TERM "UPSTATE REINVESTMENT ZONE" SHALL MEAN AN AREA: (I) THAT, ACCORDING TO THE MOST RECENT AMERICAN COMMUNITY SURVEY BY THE UNITED STATES CENSUS BUREAU, LIES WITHIN A CENSUS TRACT WITH A POVERTY RATE EQUAL TO OR GREATER THAN TWENTY PERCENT OR AN UNEM- PLOYMENT RATE THAT IS EQUAL TO OR GREATER THAN ONE AND ONE-HALF TIMES THE NATIONAL AVERAGE UNEMPLOYMENT RATE AND (II) IS WITHIN THE INCORPO- RATED BOUNDARIES OF A VILLAGE, TOWN OR CITY HAVING A POPULATION OF LESS THAN ONE MILLION. (2) THE TERM "QUALIFIED PURCHASE" SHALL MEAN THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF ACQUISITION COST OF ANY BUILDING FOR WHICH DEPRECIATION IS ALLOWED UNDER SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE AND IS ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D)(2) OF THE INTERNAL REVENUE CODE. (3) THE TERM "QUALIFIED REHABILITATION EXPENDITURES" SHALL MEAN QUALI- FIED EXPENDITURES AS DEFINED IN PARAGRAPH (2) OF SUBSECTION (C) OF SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE OTHER THAN THE QUALI- FIED PURCHASE MADE IN PARAGRAPH TWO OF THIS SUBDIVISION. (C) ALLOCATION OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBDIVISION IN ANY TAXABLE YEAR SHALL BE TEN MILLION DOLLARS. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE A. 9009--B 80 COMMISSIONER AMONG TAXPAYERS IN THE ORDER IN WHICH APPLICATIONS ARE RECEIVED. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR. (2) THE COMMISSIONER SHALL PROMULGATE REGULATIONS BY DECEMBER THIRTY- FIRST, TWO THOUSAND SIXTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS REQUIRED. SUCH RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICA- TIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO SUBSTAN- TIATE TO THE COMMISSIONER THE AMOUNT OF TAX CREDITS ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRI- ATE. NOTWITHSTANDING ANY OTHER PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGULATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN DEADLINE. (D) IN ORDER TO BE ELIGIBLE FOR THE TAX CREDITS, A TAXPAYER MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY THE COMMISSIONER) TO THE COMMISSIONER. THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA FOR A DESIGNATION OF UPSTATE REINVESTMENT ZONES. (E) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY THE TAXPAYER, THE COMMISSIONER DETERMINES THAT SUCH QUALIFIED PURCHASE OF THE BUILDING OR QUALIFIED REHABILITATION EXPENDITURES WERE MADE IN AN UPSTATE REINVEST- MENT ZONE, THEN THE COMMISSIONER SHALL ISSUE THE TAXPAYER A CERTIFICATE OF ELIGIBILITY THAT ESTABLISHES THE TAXPAYER AS A QUALIFIED TAXPAYER. S 2. The tax law is amended by adding a new section 42 to read as follows: S 42. UPSTATE REINVESTMENT ZONES TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY ARTICLES NINE-A AND TWENTY-TWO OF THIS CHAPTER FOR THE DEVELOPMENT TO UPSTATE REINVESTMENT ZONES INCLUDING, BUT NOT LIMITED TO, THE QUALIFIED PURCHASE OF BUILDINGS AND QUALIFIED REHABILITATION EXPEND- ITURES OF BUILDINGS IN SUCH ZONES WHERE AT LEAST FIFTY PERCENT OF THE SQUARE FOOTAGE OF SUCH BUILDINGS, AT THE TIME OF PURCHASE OR REHABILI- TATION, IS VACANT OR OTHERWISE UNUSED. THE AMOUNT OF THE CREDIT SHALL BE TWENTY PERCENT OF THE QUALIFIED PURCHASE AND QUALIFIED REHABILITATION EXPENDITURES OF BUILDINGS AND REHABILITATIONS IN SUCH ZONES WITH SUCH CREDIT SUBJECT TO RESTRICTIONS SET FORTH IN SUBDIVISION (D) OF THIS SECTION. THIS CREDIT WILL NOT BE ALLOWED IF THE QUALIFIED PURCHASE OF BUILDINGS AND QUALIFIED REHABILITATION EXPENDITURES OF BUILDINGS THAT ARE THE BASIS FOR THIS CREDIT ARE INCLUDED IN THE CALCULATION OF ANOTHER CREDIT CLAIMED BY THE TAXPAYER UNDER THIS CHAPTER. (B) FOR THE PURPOSE OF THIS SECTION, THE TERM "QUALIFIED PURCHASE" SHALL MEAN THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF ACQUISITION COST OF ANY BUILDING FOR WHICH DEPRECIATION IS ALLOWED UNDER SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE AND IS ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D)(2) OF THE INTERNAL REVENUE CODE. THE TERM "QUALIFIED REHABILITATION EXPENDITURES" SHALL MEAN QUALIFIED EXPENDITURES AS DEFINED IN PARAGRAPH (2) OF SUBSECTION (C) OF SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE. (C) FOR THE PURPOSE OF THIS SECTION, THE TERM "UPSTATE REINVESTMENT ZONES" SHALL MEAN AN AREA: (I) THAT, ACCORDING TO THE MOST RECENT AMER- ICAN COMMUNITY SURVEY BY THE UNITED STATES CENSUS BUREAU, LIES WITHIN A CENSUS TRACT WITH A POVERTY RATE EQUAL TO OR GREATER THAN TWENTY PERCENT A. 9009--B 81 OR AN UNEMPLOYMENT RATE THAT IS EQUAL TO OR GREATER THAN ONE AND ONE-HALF TIMES THE NATIONAL AVERAGE UNEMPLOYMENT RATE AND (II) IS WITHIN THE INCORPORATED BOUNDARIES OF A VILLAGE, TOWN OR CITY HAVING A POPU- LATION OF LESS THAN ONE MILLION. (D) THE SUM OF ALL TAX CREDITS GRANTED PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS FOR ANY ONE TAXPAYER INCLUDING SUCH PARTY'S AFFILIATES AND RELATED ENTITIES FOR A TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE ANNUAL LIMIT BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS, MEMBERS OR SHAREHOLDERS OF EACH SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED THE FIVE HUNDRED THOUSAND DOLLAR ANNUAL LIMIT. (E) (1) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SECTION, IN ANY TAXABLE YEAR SHALL BE TEN MILLION DOLLARS. SUCH AGGRE- GATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE COMMISSIONER OF ECONOM- IC DEVELOPMENT AMONG TAXPAYERS IN THE ORDER IN WHICH APPLICATIONS ARE RECEIVED. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR. (2) THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL PROMULGATE REGULATIONS BY DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS REQUIRED PURSUANT TO SECTION FOUR HUNDRED SIXTY OF THE ECONOMIC DEVELOPMENT LAW. SUCH RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO SUBSTANTIATE TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRIATE. (F) THE CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR SHALL 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 CHAPTER. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (G) THE TAXPAYER MAY BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL- OPMENT PURSUANT TO SECTION FOUR HUNDRED SIXTY OF THE ECONOMIC DEVELOP- MENT LAW. (H) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9A: SECTION 210-B, SUBDIVISION 51. (2) ARTICLE 22: SECTION 606, SUBSECTION (I), PARAGRAPH (1), SUBPARA- GRAPH (B), CLAUSE (XLI). (3) ARTICLE 22: SECTION 606, SUBSECTION (CCC). S 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 51 to read as follows: 51. UPSTATE REINVESTMENT ZONES TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN A. 9009--B 82 SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. (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 CRED- IT 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-SIX OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. S 4. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) THE AMOUNT OF ANY FEDERAL DEDUCTIONS FOR QUALIFIED PURCHASE AND QUALIFIED EXPENDITURE TO THE EXTENT SUCH DEDUCTIONS ARE USED AS THE BASIS OF THE CALCULATION OF THE UPSTATE REINVESTMENT ZONES TAX CREDIT UNDER SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B OF THIS ARTI- CLE. S 5. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) UPSTATE REINVESTMENT ZONES TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xli) to read as follows: (XLI) UPSTATE REINVESTMENT AMOUNT OF THE CREDIT UNDER ZONES TAX CREDIT UNDER SUBDIVISION FIFTY-ONE OF SECTION SUBSECTION (CCC) TWO HUNDRED TEN-B S 7. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY FEDERAL DEDUCTIONS FOR QUALIFIED PURCHASE AND QUALIFIED EXPENDITURES TO THE EXTENT SUCH DEDUCTIONS ARE USED AS THE BASIS OF THE CALCULATION OF THE UPSTATE REINVESTMENT ZONES TAX CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. S 8. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2017. The commissioner of taxation and finance is authorized to issue regulations and guidance necessary to implement this act on or before such effective date. PART QQ Section 1. Section 606 of the tax law is amended by adding a new subsection (g-3) to read as follows: (G-3) GEOTHERMAL ENERGY SYSTEMS CREDIT. (1) GENERAL. AN INDIVIDUAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI- CLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED GEOTHERMAL ENERGY SYSTEM A. 9009--B 83 EXPENDITURES, EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. THIS CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR A QUALIFIED GEOTHERMAL ENERGY SYSTEM PLACED IN SERVICE ON OR AFTER JANU- ARY FIRST, TWO THOUSAND SIXTEEN. (2) QUALIFIED GEOTHERMAL ENERGY SYSTEMS EXPENDITURES. (A) THE TERM "QUALIFIED GEOTHERMAL ENERGY SYSTEM EXPENDITURES" MEANS EXPENDITURES FOR: (I) THE PURCHASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT WHICH IS INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR HER PRIN- CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; (II) THE LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREEMENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH RESIDEN- TIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE GEOTH- ERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR (III) THE PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IS GENERATED BY GEOTHER- MAL ENERGY SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH IS INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) USED BY THE TAXPAYER AS HIS OR HER PRIN- CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE. (B) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATERI- ALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE PREPARATION, ASSEMBLY AND ORIGINAL INSTALLATION, ARCHITECTURAL AND ENGINEERING SERVICES, AND DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION OF THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT. (C) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES. (D) SUCH QUALIFIED EXPENDITURES FOR THE LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT OR THE PURCHASE OF POWER UNDER AN AGREEMENT DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE YEAR UNDER SUCH AGREEMENT. PROVIDED, HOWEVER, SUCH CREDITS SHALL ONLY BE ALLOWED FOR FOURTEEN YEARS AFTER THE FIRST TAXABLE YEAR IN WHICH SUCH CREDIT IS ALLOWED. PROVIDED FURTHER, HOWEVER, THE TWENTY-FIVE PERCENT LIMITATION IN PARAGRAPH ONE OF THIS SUBSECTION SHALL ONLY APPLY TO THE TOTAL AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN AGREE- MENT REFERENCED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, AND SHALL NOT APPLY TO INDIVIDUAL PAYMENTS MADE DURING A TAXABLE YEAR UNDER SUCH AGREEMENT EXCEPT TO THE EXTENT SUCH LIMITATION ON AN AGGREGATE BASIS HAS BEEN REACHED. (3) GEOTHERMAL ENERGY SYSTEM EQUIPMENT. THE TERM "GEOTHERMAL ENERGY SYSTEM EQUIPMENT" SHALL MEAN A SYSTEM WHOSE ORIGINAL USE BEGINS WITH THE TAXPAYER; WHICH MEETS THE ELIGIBILITY CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT; AND WHICH IS A GROUND COUPLED SOLAR THERMAL SYSTEM THAT UTILIZES THE SOLAR THERMAL ENERGY STORED IN THE GROUND OR IN BODIES OF WATER TO PRODUCE HEAT, AND WHICH IS COMMONLY KNOWN AS OR REFERRED TO AS A GROUND SOURCE HEAT PUMP SYSTEM. (4) MULTIPLE TAXPAYERS. WHERE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PURCHASED AND INSTALLED IN A PRINCIPAL RESIDENCE SHARED BY TWO OR MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE A. 9009--B 84 TOTAL EXPENDITURE FOR SUCH GEOTHERMAL ENERGY SYSTEM EQUIPMENT CONTRIB- UTED BY EACH TAXPAYER. (5) PROPORTIONATE SHARE. WHERE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PURCHASED AND INSTALLED BY A CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUSING CORPORATION, A TAXPAYER WHO IS A MEMBER OF THE CONDOMINIUM MANAGEMENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE COOPERATIVE HOUSING CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION CLAIM A PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE FOR THE PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS PRINCIPAL RESIDENCE. (6) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE INCURRED IN PURCHASING AND INSTALLING GEOTHERMAL ENERGY SYSTEM EQUIP- MENT, THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF SUCH EQUIPMENT AND WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE TAXPAYER, SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES. (7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR HEREIN SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO THOUSAND SIXTEEN, IN WHICH THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE. (8) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2016. PART RR Section 1. Section 1115 of the tax law is amended by adding a new subdivision (kk) to read as follows: (KK) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1) RECEIPTS FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND THE SERVICE OF INSTALLING SUCH SYSTEMS. FOR THE PURPOSES OF THIS SUBDIVISION, "FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT" SHALL MEAN AN ELECTRICITY GENERATING ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL PREMISES THAT UTILIZE A SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL OR LINEAR GENERATOR THAT IS MANUFACTURED, INSTALLED, OPERATED AND LOCATED IN THIS STATE. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-FUEL CELL ENERGY SYSTEM. (2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY ENGAGED IN THE SALE OF FUEL CELL ELECTRICITY GENERATING SYSTEM EQUIPMENT AND/OR ELECTRICITY GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH THE ELECTRICITY IS GENERATED BY COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEM EQUIPMENT THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELECTRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER OF SUCH ELECTRICITY; (C) PLACED IN SERVICE; AND (D) LOCATED IN THIS STATE TO PROVIDE HEATING, COOLING, HOT WATER OR ELECTRICITY TO SUCH PREMISES. S 2. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: A. 9009--B 85 (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes author- ized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), THE COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT EXEMPTION PROVIDED FOR IN SUBDIVISION (KK) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to [either] such residential solar energy systems equipment and electricity exemption, such commercial solar ener- gy systems equipment and electricity exemption, COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT EXEMPTION or such clothing and footwear exemption. (4) Notwithstanding any other provision of law to the contrary, any local law enacted by any city of one million or more that imposes the taxes authorized by this subdivision (i) may omit the exception provided in subparagraph (ii) of paragraph three of subdivision (c) of section eleven hundred five of this chapter for receipts from laundering, dry- cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining; (ii) may impose the tax described in paragraph six of subdivision (c) of section eleven hundred five of this chapter at a rate in addition to the rate prescribed by this section not to exceed two percent in multiples of one-half of one percent; (iii) shall provide that the tax described in paragraph six of subdivision (c) of section eleven hundred five of this chapter does not apply to facilities owned and operated by the city or an agency or instrumentality of the city or a public corporation the A. 9009--B 86 majority of whose members are appointed by the chief executive officer of the city or the legislative body of the city or both of them; (iv) shall not include any tax on receipts from, or the use of, the services described in paragraph seven of subdivision (c) of section eleven hundred five of this chapter; (v) shall provide that, for purposes of the tax described in subdivision (e) of section eleven hundred five of this chapter, "permanent resident" means any occupant of any room or rooms in a hotel for at least one hundred eighty consecutive days with regard to the period of such occupancy; (vi) may omit the exception provided in paragraph one of subdivision (f) of section eleven hundred five of this chapter for charges to a patron for admission to, or use of, facilities for sporting activities in which the patron is to be a participant, such as bowling alleys and swimming pools; (vii) may provide the clothing and footwear exemption in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, and, notwithstanding any provision of subdivision (d) of this section to the contrary, any local law providing for such exemption or repealing such exemption, may go into effect on any one of the following dates: March first, June first, September first or December first; (viii) shall omit the exemption provided in paragraph forty-one of subdivision (a) of section eleven hundred fifteen of this chapter; (ix) shall omit the exemption provided in subdivision (c) of section eleven hundred fifteen of this chapter insofar as it applies to fuel, gas, electricity, refrig- eration and steam, and gas, electric, refrigeration and steam service of whatever nature for use or consumption directly and exclusively in the production of gas, electricity, refrigeration or steam; (x) shall omit, unless such city elects otherwise, the provision for refund or credit contained in clause six of subdivision (a) or in subdivision (d) of section eleven hundred nineteen of this chapter; (xi) shall provide that section eleven hundred five-C of this chapter does not apply to such taxes, and shall tax receipts from every sale, other than sales for resale, of gas service or electric service of whatever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subpara- graph (i) of the opening paragraph of this section; (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of section eleven hundred fifteen of this chapter; AND (XIV) SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER. Any reference in this chapter or in any local law, ordinance or resolution enacted pursuant to the authority of this article to former subdivisions (n) or (p) of this section shall be deemed to be a reference to clauses (xii) [or], (xiii) OR (XIV) of this paragraph, respectively, and any such local law, ordinance or resolution that provides the exemptions provided in such former subdivisions (n) and/or (p) shall be deemed instead to provide the exemptions provided in clauses (xii) [and/or], (xiii) AND/OR (XIV) of this paragraph. S 3. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 4 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: A. 9009--B 87 (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; [and] (C) the exemption provided in paragraph two of subdivision (ii) of section elev- en hundred fifteen of this chapter, unless such county or city elects otherwise; AND (D) THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVI- SION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE. S 4. Subdivision (d) of section 1210 of the tax law, as amended by section 4-a of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (d) A local law, ordinance or resolution imposing any tax pursuant to this section, increasing or decreasing the rate of such tax, repealing or suspending such tax, exempting from such tax the energy sources and services described in paragraph three of subdivision (a) or of subdivi- sion (b) of this section or changing the rate of tax imposed on such energy sources and services or providing for the credit or refund described in clause six of subdivision (a) of section eleven hundred nineteen of this chapter, or electing or repealing the exemption for residential solar equipment and electricity in subdivision (ee) of section eleven hundred fifteen of this article, or the exemption for commercial solar equipment and electricity in subdivision (ii) of section eleven hundred fifteen of this article, OR ELECTING OR REPEALING THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must go into effect only on one of the following dates: March first, June first, September first or December first; provided, that a local law, ordinance or resolution providing for the exemption described in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter or repealing any such exemption or a local law, ordinance or resolution providing for a refund or credit described in subdivision (d) of section eleven hundred nineteen of this chapter or repealing such provision so provided must go into effect only on March first. No such local law, ordinance or resolution shall be effective unless a certified copy of such law, ordinance or resolution is mailed by registered or certified mail to the commissioner at the commissioner's office in Albany at least ninety days prior to the date it is to become effective. However, the commissioner may waive and reduce such ninety-day minimum notice requirement to a mailing of such certified copy by registered or certi- fied mail within a period of not less than thirty days prior to such A. 9009--B 88 effective date if the commissioner deems such action to be consistent with the commissioner's duties under section twelve hundred fifty of this article and the commissioner acts by resolution. Where the restriction provided for in section twelve hundred twenty-three of this article as to the effective date of a tax and the notice requirement provided for therein are applicable and have not been waived, the restriction and notice requirement in section twelve hundred twenty- three of this article shall also apply. S 5. Subdivision (a) of section 1212 of the tax law, as amended by section 6 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any school district which is coterminous with, partly within or wholly within a city having a population of less than one hundred twen- ty-five thousand, is hereby authorized and empowered, by majority vote of the whole number of its school authorities, to impose for school district purposes, within the territorial limits of such school district and without discrimination between residents and nonresidents thereof, the taxes described in subdivision (b) of section eleven hundred five (but excluding the tax on prepaid telephone calling services) and the taxes described in clauses (E) and (H) of subdivision (a) of section eleven hundred ten, including the transitional provisions in subdivision (b) of section eleven hundred six of this chapter, so far as such provisions can be made applicable to the taxes imposed by such school district and with such limitations and special provisions as are set forth in this article, such taxes to be imposed at the rate of one-half, one, one and one-half, two, two and one-half or three percent which rate shall be uniform for all portions and all types of receipts and uses subject to such taxes. In respect to such taxes, all provisions of the resolution imposing them, except as to rate and except as otherwise provided herein, shall be identical with the corresponding provisions in such article twenty-eight of this chapter, including the applicable definition and exemption provisions of such article, so far as the provisions of such article twenty-eight of this chapter can be made applicable to the taxes imposed by such school district and with such limitations and special provisions as are set forth in this article. The taxes described in subdivision (b) of section eleven hundred five (but excluding the tax on prepaid telephone calling service) and clauses (E) and (H) of subdivision (a) of section eleven hundred ten, including the transitional provision in subdivision (b) of such section eleven hundred six of this chapter, may not be imposed by such school district unless the resolution imposes such taxes so as to include all portions and all types of receipts and uses subject to tax under such subdivision (but excluding the tax on prepaid telephone calling service) and clauses. Provided, however, that, where a school district imposes such taxes, such taxes shall omit the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section elev- en hundred five unless such school district elects to provide such provision or, if so elected, to repeal such provision, and shall omit the exemptions provided in paragraph two of subdivision (ee) and para- graph two of subdivision (ii) of section eleven hundred fifteen of this chapter unless such school district elects otherwise, AND SHALL OMIT THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVISION (KK) OF SECTION ELEV- EN HUNDRED FIFTEEN OF THIS CHAPTER UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE. A. 9009--B 89 S 6. Section 1224 of the tax law is amended by adding a new subdivi- sion (c-2) to read as follows: (C-2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW: (1) WHERE A COUNTY CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERAT- ING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SUCH SECTION ELEVEN HUNDRED FIFTEEN, A CITY WITHIN SUCH COUNTY SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE; (2) WHERE A CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SUCH SECTION ELEVEN HUNDRED FIFTEEN, THE COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIP- MENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. S 7. This act shall take effect June 1, 2016; and this act shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law. PART SS Section 1. The tax law is amended by adding a new section 42 to read as follows: S 42. FARM SAVINGS ACCOUNTS. 1. DEFINITIONS. (A) QUALIFIED FARMER. FOR PURPOSES OF THIS SECTION, THE TERM "QUALIFIED FARMER" MEANS, WITH RESPECT TO ANY TAXABLE YEAR, A TAXPAYER WHO, DURING SUCH YEAR, PRIMARILY ENGAGES IN AND DERIVES INCOME FROM A FARM BUSINESS. (B) FARM SAVINGS ACCOUNT. A FARM SAVINGS ACCOUNT MAY BE CREATED BY A TAXPAYER. FOR PURPOSES OF THIS SECTION, THE TERM "FARM SAVINGS ACCOUNT" MEANS A TRUST CREATED OR ORGANIZED IN THE UNITED STATES AS A FARM SAVINGS ACCOUNT EXCLUSIVELY FOR THE PURPOSE OF MAKING QUALIFIED DISTRIB- UTIONS FOR PURPOSES OF FARM SUSTAINABILITY, BUT ONLY IF THE WRITTEN GOVERNING INSTRUMENT CREATING THE TRUST MEETS THE FOLLOWING REQUIRE- MENTS: (I) NO CONTRIBUTION WILL BE ACCEPTED UNLESS IT IS IN CASH; (II) THE TRUSTEE IS A BANK, CREDIT UNION OR OTHER APPROPRIATE INSTITU- TION THAT DEMONSTRATES ADMINISTRATION OF THE TRUST IN A MANNER THAT IS CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION; (III) THE ASSETS OF THE TRUST WILL NOT BE COMMINGLED WITH OTHER PROP- ERTY EXCEPT IN A COMMON TRUST FUND OR COMMON INVESTMENT FUND; (IV) THE INTEREST OF AN INDIVIDUAL IN THE BALANCE IN HIS OR HER ACCOUNT IS NON-FORFEITABLE; AND (V) SUCH ACCOUNT IS A RESIDENT TRUST AS DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE OF THIS CHAPTER. (C) QUALIFIED DISTRIBUTION. THE TERM "QUALIFIED DISTRIBUTION" MEANS ANY AMOUNT PAID FROM A FARM SAVINGS ACCOUNT TO THE ACCOUNT BENEFICIARY EXCLUSIVELY FOR PURPOSES OF FARM SUSTAINABILITY TO THE EXTENT IT IS ALLOWED UNDER THIS SECTION. (D) ACCOUNT BENEFICIARY. THE TERM "ACCOUNT BENEFICIARY" MEANS THE TAXPAYER OR FARM BUSINESS ON WHOSE BEHALF THE FARM SAVINGS ACCOUNT IS ESTABLISHED. A. 9009--B 90 (E) NON-QUALIFIED DISTRIBUTION. THE TERM "NON-QUALIFIED DISTRIBUTION" MEANS ANY DISTRIBUTIONS AND ANY OTHER CONDITIONS SET FORTH IN PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION OTHER THAN THE QUALIFIED DISTRIBUTION. 2. PROGRAM DESCRIPTION. (A) DEDUCTIONS ALLOWED. IN THE CASE OF A QUAL- IFIED FARMER, THERE SHALL BE ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT PAID IN CASH DURING SUCH TAXABLE YEAR BY OR ON BEHALF OF SUCH ACCOUNT BENEFICIARY TO A FARM SAVINGS ACCOUNT OF SUCH BENEFICIARY. (B) CONTRIBUTION REQUIREMENT. THERE SHALL BE A MAXIMUM CONTRIBUTION LIMIT OF ELEVEN THOUSAND DOLLARS PER TAXABLE YEAR AND SUCH AMOUNT SHALL BE LIMITED AT A TAX ENTITY LEVEL. IN ADDITION, SUCH ANNUAL CONTRIBUTIONS MAY NOT EXCEED NEW YORK GROSS FARM INCOME ATTRIBUTABLE TO FARMING DURING THE TAXABLE YEAR. (C) TAX TREATMENT OF ACCOUNTS. A FARM SAVINGS ACCOUNT SHALL BE SUBJECT TO TAXATION UNDER THIS CHAPTER IF SUCH ACCOUNT HAS CEASED TO BE A FARM SAVINGS ACCOUNT. (D) TERMINATION OF ACCOUNTS. IF THE ACCOUNT BENEFICIARY CEASES TO ENGAGE IN FARM BUSINESS, THE FARM SAVINGS ACCOUNT OF SUCH BENEFICIARY SHALL CEASE TO BE SUCH ACCOUNT AND THE BALANCE OF SUCH ACCOUNT SHALL BE TREATED AS (I) DISTRIBUTED TO SUCH BENEFICIARY AND (II) NOT PAID IN A QUALIFIED DISTRIBUTION. (E) TAX TREATMENT OF DISTRIBUTIONS. (I) GENERAL. IN GENERAL, ANY QUAL- IFIED DISTRIBUTIONS FROM A FARM SAVINGS ACCOUNT SHALL BE INCLUDED IN TAXABLE INCOME. (II) ADDITIONAL TAX ON NON-QUALIFIED DISTRIBUTIONS. (1) IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER, ANY NON-QUALIFIED DISTRIBUTION FROM A FARM SAVINGS ACCOUNT SHALL BE SUBJECT TO A FIFTEEN PERCENT SURCHARGE ON THE AMOUNT OF SUCH NON-QUALIFIED DISTRIBUTION. (2) CLAUSE ONE OF THIS SUBPARAGRAPH SHALL NOT APPLY IF THE PAYMENT OR DISTRIBUTION IS MADE AFTER THE ACCOUNT BENEFICIARY BECOMES DISABLED OR DIES. FOR PURPOSES OF THIS CLAUSE "DISABLED" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION 223(D)(1) OF THE SOCIAL SECURITY ACT. (III) ROLLOVER CONTRIBUTIONS. FOR PURPOSES OF THIS SECTION, ANY AMOUNT PAID OR DISTRIBUTED FROM A FARM SAVINGS ACCOUNT TO THE ACCOUNT BENEFICI- ARY SHALL BE TREATED AS A QUALIFIED DISTRIBUTION TO THE EXTENT THE AMOUNT RECEIVED IS PAID INTO A FARM SAVINGS ACCOUNT FOR THE BENEFIT OF SUCH BENEFICIARY NOT LATER THAN THE SIXTIETH DAY AFTER THE DAY ON WHICH THE BENEFICIARY RECEIVES THE PAYMENT OR DISTRIBUTION. (IV) TRANSFER OF ACCOUNT INCIDENT TO DIVORCE. THE TRANSFER OF AN INDI- VIDUAL'S INTEREST IN A FARM SAVINGS ACCOUNT TO AN INDIVIDUAL'S SPOUSE OR FORMER SPOUSE UNDER A DIVORCE OR SEPARATION INSTRUMENT SHALL NOT BE CONSIDERED A TAXABLE TRANSFER MADE BY SUCH INDIVIDUAL NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AND SUCH INTEREST SHALL, AFTER SUCH TRANSFER, BE TREATED AS A FARM SAVINGS ACCOUNT WITH RESPECT TO WHICH SUCH SPOUSE IS THE ACCOUNT BENEFICIARY. (V) TREATMENT AFTER DEATH OF ACCOUNT BENEFICIARY. (1) TREATMENT IF DESIGNATED BENEFICIARY IS SPOUSE. IF THE ACCOUNT BENEFICIARY'S SURVIVING SPOUSE ACQUIRES SUCH BENEFICIARY'S INTEREST IN A FARM SAVINGS ACCOUNT BY REASON OF BEING THE DESIGNATED BENEFICIARY OF SUCH ACCOUNT AT THE DEATH OF THE ACCOUNT BENEFICIARY, SUCH FARM SAVINGS ACCOUNT SHALL BE TREATED AS IF THE SPOUSE WERE THE ACCOUNT BENEFICIARY. (VI) OTHER CASES. IF, BY REASON OF THE DEATH OF THE ACCOUNT BENEFICI- ARY, ANY PERSON ACQUIRES THE ACCOUNT BENEFICIARY'S INTEREST IN A FARM SAVINGS ACCOUNT IN A CASE TO WHICH CLAUSE ONE OF THIS SUBPARAGRAPH DOES NOT APPLY: A. 9009--B 91 (A) SUCH ACCOUNT SHALL CEASE TO BE A FARM SAVINGS ACCOUNT AS OF THE DATE OF DEATH, AND (B) AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THE ASSETS IN SUCH ACCOUNT ON SUCH DATE SHALL BE INCLUDED IN SUCH PERSON'S TAXABLE INCOME FOR THE TAXABLE YEAR WHICH INCLUDES SUCH DATE IF SUCH PERSON IS NOT THE ESTATE OF SUCH BENEFICIARY; OR IF SUCH PERSON IS THE ESTATE OF SUCH BENEFICIARY, IN SUCH BENEFICIARY'S GROSS INCOME FOR THE LAST TAXABLE YEAR OF SUCH BENEFICIARY. S 2. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) ANY QUALIFIED DISTRIBUTIONS AND NON-QUALIFIED DISTRIBUTIONS MADE FROM A FARM SAVINGS ACCOUNT UNDER SECTION FORTY-TWO OF THIS CHAPTER TO THE EXTENT SUCH DISTRIBUTIONS AND NON-DISTRIBUTIONS ARE TAXABLE UNDER SECTION FORTY-TWO OF THIS CHAPTER. S 2-a. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) ANY QUALIFIED DISTRIBUTIONS AND NON-QUALIFIED DISTRIBUTIONS MADE FROM A FARM SAVINGS ACCOUNT UNDER SECTION FORTY-TWO OF THIS CHAPTER TO THE EXTENT SUCH DISTRIBUTIONS AND NON-DISTRIBUTIONS ARE TAXABLE UNDER SECTION FORTY-TWO OF THIS CHAPTER. S 3. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) AN AMOUNT EQUAL TO ANY QUALIFIED CONTRIBUTION TO A FARM SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER. S 4. Subdivision 4 of section 209 of the tax law, as separately amended by section 2 of part FF-1 of chapter 57 of the laws of 2008 and section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 4. Corporations liable to tax under sections one hundred eighty-three to one hundred eighty-five, inclusive, corporations taxable under arti- cle thirty-three of this chapter, any trust company organized under a law of this state all of the stock of which is owned by not less than twenty savings banks organized under a law of this state, a captive REIT or a captive RIC filing a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter, and housing companies organized and operating pursuant to the provisions of article two or article five of the private housing finance law and housing development fund companies organized pursuant to the provisions of article eleven of the private housing finance law, AND A FARM SAVINGS ACCOUNT PROPERLY ESTABLISHED UNDER SECTION FORTY-TWO OF THIS CHAPTER TO THE EXTENT SUCH ACCOUNT MEETS THE CONDITIONS SET FORTH IN SUCH SECTION, shall not be subject to tax under this article. S 5. Subdivision 4 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 4. Corporations liable to tax under sections one hundred eighty-three to one hundred eighty-four-a, inclusive, corporations taxable under article thirty-three of this chapter, any trust company organized under a law of this state all of the stock of which is owned by not less than twenty savings banks organized under a law of this state, a captive REIT or a captive RIC filing a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter, and housing companies organized and operating pursuant to the provisions of article two or article five of the private housing finance law and housing development fund companies organized pursuant to the provisions of article eleven of the private housing finance law, AND A FARM SAVINGS ACCOUNT PROPERLY A. 9009--B 92 ESTABLISHED UNDER SECTION FORTY-TWO OF THIS CHAPTER TO THE EXTENT SUCH ACCOUNT MEETS THE CONDITIONS SET FORTH IN SUCH SECTION, shall not be subject to tax under this article. S 6. Section 601 of the tax law is amended by adding a new subsection (g-1) to read as follows: (G-1) FARM SAVINGS ACCOUNT. A FARM SAVINGS ACCOUNT PROPERLY ESTAB- LISHED UNDER SECTION FORTY-TWO OF THIS CHAPTER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE TO THE EXTENT SUCH ACCOUNT MEETS THE CONDITIONS SET FORTH IN SUCH SECTION. S 7. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2016; provided, however, that section five of this act shall take effect on the same date and in the same manner as section 27 of part S of chapter 59 of the laws of 2014, takes effect. Effective immediately, the commissioner of taxation and finance may add, amend, or repeal any rule or regulation necessary to timely implement the provisions of this act on its effective date. PART TT Section 1. This act enacts into law major components of legislation which are necessary to implement legislation relating to the imposition of hotel and motel occupancy taxes in towns and villages. Each component is wholly contained within a Subpart identified as Subparts A through B. The effective date for each particular provision contained within such Subparts is set forth in the last section of each Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. This act enacts into law major components of legislation which are necessary to implement legislation relating to the imposition of hotel and motel occupancy taxes in certain towns and villages. Each component is wholly contained within a Title identified as Titles A through G. The effective date for each particular provision contained within such Titles is set forth in the last section of such Title. Any provision in any section contained within a Title, including the effec- tive date of the Title, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Title in which it is found. Section three of this subpart sets forth the general effective date of this subpart. TITLE A Section 1. The tax law is amended by adding a new section 1202-z-1 to read as follows: S 1202-Z-1. OCCUPANCY TAX IN THE VILLAGE OF TUCKAHOE. (1) NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE VILLAGE OF TUCKAHOE, IN THE COUNTY OF WESTCHESTER, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH VILLAGE A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS A. 9009--B 93 ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHOR- ITY TO IMPOSE UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE VILLAGE OF TUCKAHOE BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT OF THE VILLAGE OF TUCKAHOE IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTI- TLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE VILLAGE, SPECI- FIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- A. 9009--B 94 PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, 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, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE VILLAGE OF TUCKAHOE AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE VILLAGE. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS A. 9009--B 95 SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed September 1, 2019. TITLE B Section 1. The tax law is amended by adding a new section 1202-z-2 to read as follows: S 1202-Z-2. OCCUPANCY TAX IN THE TOWN OF NORTH CASTLE. (1) NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE TOWN OF NORTH CASTLE, IN THE COUNTY OF WESTCHESTER, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH TOWN A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE TOWN OF NORTH CASTLE BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT OF THE TOWN OF NORTH CASTLE IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTI- TLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE TOWN, SPECIFIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEED- ING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; A. 9009--B 96 B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, 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, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE A. 9009--B 97 AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE TOWN OF NORTH CASTLE AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE TOWN. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed September 1, 2019. TITLE C Section 1. The tax law is amended by adding a new section 1202-z-3 to read as follows: S 1202-Z-3. OCCUPANCY TAX IN THE VILLAGE OF HARRISON. (1) NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE VILLAGE OF HARRISON, IN THE COUNTY OF WESTCHESTER, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH VILLAGE A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHOR- ITY TO IMPOSE UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE VILLAGE OF HARRISON BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT OF THE VILLAGE OF HARRISON IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTI- TLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF A. 9009--B 98 THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE VILLAGE, SPECI- FIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, 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, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND A. 9009--B 99 THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE VILLAGE OF HARRISON AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE VILLAGE. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed September 1, 2019. TITLE D Section 1. The tax law is amended by adding a new section 1202-dd to read as follows: S 1202-DD. HOTEL OR MOTEL TAXES IN THE TOWN OF GREENBURGH AND SPECI- FIED VILLAGES THEREIN AND IN THE TOWN OF MOUNT PLEASANT. (1) NOTWITH- STANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE TOWN OF GREEN- BURGH, WESTCHESTER COUNTY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN THOSE PORTIONS OF SUCH TOWN NOT LOCATED WITHIN A VILLAGE, AND THE VILLAGES OF TARRYTOWN, IRVINGTON, ARDSLEY, ELMSFORD, DOBBS FERRY, HASTINGS-ON-HUDSON AND SLEEPY HOLLOW IN THE TOWNS OF GREENBURGH AND MOUNT PLEASANT, WESTCHESTER COUNTY ARE HEREBY AUTHOR- IZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH VILLAGES A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON PERSONS OCCUPYING ROOMS IN HOTELS OR MOTELS IN SUCH TOWNS OR VILLAGES THEREIN. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF A. 9009--B 100 THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED BY THE COMMISSIONER OF FINANCE OR OTHER FISCAL OFFICER OF THE TOWN OF GREENBURGH OR OF ANY SPECIFIED VILLAGE THEREIN OR IN THE TOWN OF MOUNT PLEASANT, AS THE CASE MAY BE, BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICERS IN ACCORDANCE WITH THE TOWN OR VILLAGE CHARTER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAX IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCU- PIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE HOTEL OR MOTEL ROOM OCCUPIED FOR AND ON ACCOUNT OF THE TOWN OF GREEN- BURGH OR OF ANY SPECIFIED VILLAGE THEREIN OR IN THE TOWN OF MOUNT PLEAS- ANT IMPOSING THE TAX, AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT TO NONPAY- MENT OF THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, AS IF THE TAX WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE COMMISSIONER OF FINANCE OR OTHER FISCAL OFFICERS OF SUCH TOWNS OR VILLAGES, SPECIFIED IN SUCH LOCAL LAW, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA, IMPROVEMENT DISTRICT OR OTHER POLITICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH; AND D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER GIVING OF THE NOTICE OF SUCH A. 9009--B 101 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 UNDERTAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT OF INSURANCE 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 TAXES, INTEREST AND PENALTIES STATED IN SUCH DETER- MINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE- GALLY 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 THIRTY DAYS 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 ACCRUE IN THE PROSECUTION OF SUCH PROCEED- ING. (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) REVENUES RESULTING FROM THE IMPOSITION OF TAX AUTHORIZED BY THIS SECTION SHALL BE PAID INTO THE TREASURY OF THE TOWN OF GREENBURGH OR OF THE SPECIFIED VILLAGE THEREIN OR IN THE TOWN OF MOUNT PLEASANT, AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF SUCH TOWN OR VILLAGE; AND MAY THEREAFTER BE ALLOCATED AT THE DISCRETION OF THE BOARD OF LEGISLATORS OF THE TOWN OF GREENBURGH OR OF THE SPECIFIED VILLAGE THEREIN OR IN THE TOWN OF MOUNT PLEASANT FOR ANY TOWN OR VILLAGE PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. A. 9009--B 102 S 2. This act shall take effect immediately and shall expire and be deemed repealed three years after such date. TITLE E Section 1. The tax law is amended by adding a new section 1202-ee to read as follows: S 1202-EE. HOTEL OR MOTEL TAXES IN THE TOWN OF WOODBURY. (1) NOTWITH- STANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE TOWN OF WOOD- BURY, IN THE COUNTY OF ORANGE, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH TOWN A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON PERSONS OCCUPYING HOTEL OR MOTEL ROOMS IN SUCH TOWN. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" OR "MOTEL" SHALL MEAN AND INCLUDE ANY FACILITY CONSISTING OF RENTABLE UNITS AND PROVIDING LODGING ON AN OVER- NIGHT BASIS AND SHALL INCLUDE THOSE FACILITIES DESIGNATED AND COMMONLY KNOWN AS "BED AND BREAKFAST" AND "TOURIST" FACILITIES. THE RATES OF SUCH TAX SHALL NOT EXCEED FIVE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM, PROVIDED HOWEVER, THAT SUCH TAX SHALL NOT BE APPLICABLE TO A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION THE TERM "PERMANENT RESIDENT" SHALL MEAN A PERSON OCCUPYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST NINETY CONSECUTIVE DAYS. (2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE TOWN OF WOODBURY BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAX IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCU- PIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE HOTEL OR MOTEL ROOM OCCUPIED FOR AND ON ACCOUNT OF THE TOWN OF WOODBURY IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT TO NONPAY- MENT OF THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, AS IF THE TAX WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE TOWN, SPECIFIED IN SUCH LOCAL LAW, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY TRANSACTION, BY OR WITH ANY OF THE FOLLOWING IN ACCORDANCE WITH SECTION TWELVE HUNDRED THIRTY OF THIS CHAPTER: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- A. 9009--B 103 BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. (6) 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 THIRTY DAYS 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 SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDERTAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPER- INTENDENT OF INSURANCE 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 PROSE- CUTION OF SUCH PROCEEDING; OR B. AT THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT TO COVER THE TAXES, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE- GALLY 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 THIRTY DAYS 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. (8) EXCEPT IN THE CASE OF A WILFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE TOWN OF WOODBURY AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE TOWN. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. A. 9009--B 104 (10) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed 3 years after such date. TITLE F Section 1. The tax law is amended by adding a new section 1202-ff to read as follows: S 1202-FF. OCCUPANCY TAX IN THE VILLAGE OF MAMARONECK. (1) NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE VILLAGE OF MAMARONECK, IN THE COUNTY OF WESTCHESTER, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH VILLAGE A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHOR- ITY TO IMPOSE UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE VILLAGE OF MAMARONECK BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFORE TO THE OWNER OF THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT OF THE VILLAGE OF MAMARONECK IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE VILLAGE, SPECIFIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER A. 9009--B 105 STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, 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, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. (7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. A. 9009--B 106 (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE VILLAGE OF MAMARONECK AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE VILLAGE. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed three years after such date. TITLE G Section 1. The tax law is amended by adding a new section 1202-gg to read as follows: S 1202-GG. OCCUPANCY TAX IN THE VILLAGE OF PORT CHESTER. (1) NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE VILLAGE OF PORT CHESTER, IN THE COUNTY OF WESTCHESTER, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH VILLAGE A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND AUTHOR- ITY TO IMPOSE UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL" SHALL MEAN A BUILDING OR PORTION OF IT WHICH IS REGULARLY USED AND KEPT OPEN AS SUCH FOR THE LODGING OF GUESTS. THE TERM "HOTEL" INCLUDES AN APARTMENT HOTEL, A MOTEL OR A BOARDING HOUSE, WHETHER OR NOT MEALS ARE SERVED. THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY OR LONGER BASIS. (2) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL OFFICER OF THE VILLAGE OF PORT CHESTER BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (3) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE FOR THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION OCCUPIED FOR AND ON ACCOUNT OF THE VILLAGE OF PORT CHESTER IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE A. 9009--B 107 PERSON OCCUPYING THE ROOM FOR HIRE IN THE TOURIST HOME, INN, CLUB, HOTEL, MOTEL OR SIMILAR PLACE OF PUBLIC ACCOMMODATION, AS IF THE TAXES WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE VILLAGE, SPECIFIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR SHORTER PERIOD OF TIME. (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FROM TAXA- TION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHIL- DREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPTING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARAGRAPH. D. A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCU- PYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSEC- UTIVE DAYS. (6) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, 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 PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. A. 9009--B 108 (7) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. (8) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE VILLAGE OF PORT CHES- TER AND SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF SUCH VILLAGE. SUCH REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE. (10) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (11) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. S 2. This act shall take effect immediately and shall expire and be deemed repealed three years after such date. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately; provided, however, that the applicable effective date of Titles A through G of this subpart shall be as specifically set forth in the last section of such Titles. SUBPART B Section 1. The tax law is amended by adding a new section 1202-zz to read as follows: S 1202-ZZ. HOTEL AND MOTEL TAXES IMPOSED BY TOWNS AND VILLAGES. (1) NOTWITHSTANDING ANY OTHER PROVISIONS OF ANY LAWS TO THE CONTRARY, ANY TOWNS OR VILLAGES SHALL BE AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING TAX UPON PERSONS OCCUPYING ANY ROOM FOR HIRE IN ANY A. 9009--B 109 HOTEL OR MOTEL UNDER THIS SUBPART, TO THE EXTENT SUCH TOWN OR VILLAGE HAS A PRIOR RIGHT OVER THE OTHER VILLAGE OR TOWN WITHIN ITS TAX JURIS- DICTION. PROVIDED, HOWEVER, SUCH TOWN OR VILLAGE SHALL BE ONLY AUTHOR- IZED AND EMPOWERED TO IMPOSE SUCH TAX BY ENACTING A RESOLUTION IN THE MANNER AND FORM SET FORTH IN SUBDIVISIONS TWO AND THREE OF THIS SECTION AND TO THE EXTENT SUCH TAX IS AUTHORIZED UNDER THIS SECTION. FOR THE PURPOSES OF THIS SECTION, THE TERM "HOTEL OR MOTEL" SHALL MEAN AND INCLUDE ANY FACILITY PROVIDING LODGING ON AN OVERNIGHT BASIS AND SHALL INCLUDE THOSE FACILITIES DESIGNATED AND COMMONLY KNOWN AS "BED AND BREAKFAST", "INN", "HOUSEKEEPING COTTAGES WITH FOUR OR MORE UNITS", AND "TOURIST FACILITIES". (2) SUCH TOWN AND VILLAGE, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO IMPOSE SUCH TAX BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN SUBDIVISION THREE OF THIS SECTION, WHEREUPON SUCH ENACTMENT OF SUCH RESOLUTION SHALL BE DEEMED TO INCORPO- RATE INTO SUCH TOWN OR VILLAGE'S LOCAL LAW, ORDINANCE, OR RESOLUTION AS IF IT HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE GOVERNOR. (3) FORM OF RESOLUTION: BE IT ENACTED BY THE (TOWN OR VILLAGE) OF (INSERT LOCALITY'S NAME) AS FOLLOWS: SECTION ONE: THE (TOWN OR VILLAGE) OF (INSERT LOCALITY'S NAME) HEREBY IMPOSE THE HOTEL TAX UPON PERSON OCCUPYING ANY ROOM FOR HIRE IN ANY HOTEL OR MOTEL TO THE EXTENT SUCH TAX IS AUTHORIZED UNDER SECTION TWELVE HUNDRED TWO-ZZ OF THE TAX LAW. SECTION TWO: THIS RESOLUTION SHALL TAKE EFFECT ON OR AFTER NINETY DAYS FROM THE ENACTING RESOLUTION AND SHALL EXPIRE THREE YEARS FROM THE EFFECTIVE DATE OF SUCH RESOLUTION. (4) A. FOR PURPOSES OF THIS SECTION, "THE PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE THE HOTEL TAX AUTHORIZED UNDER THIS SECTION AND TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER TOWN OR VILLAGE FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT SUCH RIGHT IS EXERCISED. THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. B. IF A VILLAGE, WHICH IS LOCATED WITHIN A TOWN OR TOWNS, HAS ENACTED THE HOTEL TAX AUTHORIZED UNDER THIS SECTION PRIOR TO AN ENACTMENT OF THE HOTEL TAX BY SUCH TOWN OR TOWNS, SUCH TOWN OR TOWNS SHALL BE PRECLUDED TO IMPOSE SUCH TAX WITHIN THE TERRITORY OF SUCH VILLAGE. IF A TOWN HAS ENACTED THE HOTEL TAX AUTHORIZED UNDER THIS SECTION, A VILLAGE WHICH IS, PARTIALLY OR ENTIRELY, LOCATED WITHIN SUCH TOWN SHALL BE PRECLUDED TO IMPOSE THE HOTEL TAX TO THE EXTENT SUCH VILLAGE IS LOCATED WITHIN SUCH TOWN. (5) THE RATE OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE PER DIEM RENTAL RATE FOR EACH ROOM WHETHER SUCH ROOM IS RENTED ON A DAILY BASIS OR FOR A LONGER PERIOD OF TIME. PROVIDED, HOWEVER, THAT SUCH TAX SHALL NOT BE APPLICABLE TO A PERMANENT RESIDENT OF SUCH HOTEL OR MOTEL. FOR THE PURPOSES OF THIS SECTION, THE TERM "PERMANENT RESIDENT" SHALL MEAN A NATURAL PERSON OCCUPYING ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST THIRTY CONSECUTIVE DAYS. (6) SUCH TAX MAY BE COLLECTED AND ADMINISTERED BY THE FINANCE ADMINIS- TRATOR OR OTHER FISCAL OFFICER OF SUCH COUNTY BY SUCH MEANS AND IN SUCH MANNER AS OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW. (7) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCUPIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE THE A. 9009--B 110 HOTEL OR MOTEL ROOM OCCUPIED FOR AND ON ACCOUNT OF SUCH TOWN OR VILLAGE WITHIN THE COUNTY IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTI- TLED TO BE PAID THE RENT OR CHARGE SHALL BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE RENT OR CHARGE SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECT- ING THE TAX FROM THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT TO NONPAYMENT OF THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM AS IF THE TAXES WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE SAME TIME AS THE RENT OR CHARGE; PROVIDED HOWEVER, THAT SUCH FINANCE ADMINISTRATOR OR OTHER FISCAL OFFICERS OF THE COUNTY, SPECIFIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY ACTION OR PROCEED- ING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE. (8) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON ANY OF THE FOLLOWING: A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI- TICAL SUBDIVISION OF THE STATE; B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FOR TAXATION; OR C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA- BLE OR EDUCATION PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHILDREN OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENE- FIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPT- ING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARA- GRAPH. (9) 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 THIRTY DAYS AFTER THE GIVING OF 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 LAWS OR REGULATIONS SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT OF INSURANCE 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, INTERESTS AND PENALTIES STATED IN SUCH DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLICATION. A. 9009--B 111 (10) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND THEREFOR 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 THIRTY DAYS 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 TAXES CONFIRMED, THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING. (11) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME. (12) REVENUES RESULTING FROM THE IMPOSITION OF THE TAX ON HOTELS OR MOTELS LOCATED WITHIN A TOWN OR VILLAGE SHALL BE CREDITED TO AND DEPOS- ITED IN THE GENERAL FUND OF SUCH TOWN OR VILLAGE; AND MAY THEREAFTER BE ALLOCATED AT THE DISCRETION OF THE GOVERNING BOARD OF SUCH TOWN OR VILLAGE. (13) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION OF A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSUANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER LOCAL LAW ADOPTED PURSU- ANT TO THIS SECTION. (14) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY. (15) ANY TOWN OR VILLAGE THAT ENACTS A HOTEL OR MOTEL TAX PURSUANT TO THIS SECTION SHALL SEND A CERTIFIED COPY OF SUCH LAW, ORDINANCE OR RESOLUTION BY REGISTERED MAIL TO THE STATE COMPTROLLER AT ITS OFFICE IN ALBANY ON OR AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (16) AT THE CONCLUSION OF THE TOWN OR VILLAGE'S FISCAL YEAR, THE CHIEF FISCAL OFFICER SHALL SUBMIT A REPORT TO THE COMPTROLLER AT ITS OFFICE IN ALBANY THAT CONTAINS THE AMOUNT OF ANNUAL RECEIPTS RECEIVED PURSUANT TO THIS SECTION. (A) EACH TOWN OR VILLAGE HAVING A POPULATION, AS SHOWN BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS, OF LESS THAN NINETEEN THOUSAND NINE HUNDRED NINETY-NINE, SHALL FILE THEIR RESPECTIVE REPORTS WITH THE COMP- TROLLER WITHIN NINETY DAYS AFTER THE CLOSE OF THE FISCAL YEAR OF SUCH TOWN OR VILLAGE. UPON WRITTEN REQUEST FROM THE CHIEF FISCAL OFFICER OF SUCH A TOWN OR VILLAGE, THE COMPTROLLER MAY EXTEND SUCH NINETY DAY PERI- OD FOR AN ADDITIONAL THIRTY DAYS. (B) EACH TOWN OR VILLAGE HAVING A POPULATION, AS SHOWN BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS, OF TWENTY THOUSAND OR MORE, AND ALL CITIES AND COUNTIES, IRRESPECTIVE OF THEIR POPULATIONS, SHALL FILE THEIR RESPECTIVE REPORTS WITH THE COMPTROLLER WITHIN ONE HUNDRED TWENTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR OF SUCH TOWN OR VILLAGE. A. 9009--B 112 (17) BY AUGUST FIRST OF EACH YEAR, THE STATE COMPTROLLER SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE PUBLIC, IDENTIFYING THE LOCAL GOVERN- MENTS THAT HAVE ENACTED HOTEL AND MOTEL TAXES PURSUANT TO THIS SECTION. THE REPORT SHALL ALSO CONTAIN THE RATE OF SUCH TAX AND THE AMOUNT OF ANNUAL REVENUES COLLECTED BY EACH TOWN OR VILLAGE THAT HAS BEEN REPORTED WITHIN THE PAST YEAR. THE REPORT MAY CONTAIN OTHER INFORMATION DEEMED RELEVANT TO LOCAL HOTEL AND MOTEL TAXES BY THE COMPTROLLER. S 2. This act shall take effect on the ninetieth day after it shall have become a law. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately; provided, however, that the applicable effective date of Subparts A through B of this Part shall be as specifically set forth in the last section of such Subparts. PART UU Section 1. The opening paragraph of paragraph 1-a of subdivision (a) of section 83 of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the commissioner of the department of environmental conservation shall provide a written report to the temporary president of the senate, speaker of the assem- bly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the senate committee on [health] ENVIRON- MENTAL CONSERVATION, chair of the assembly [health] ENVIRONMENTAL CONSERVATION committee, the state comptroller and the public. Such report shall include how the monies of the fund received pursuant to section six hundred twenty-five of the tax law were utilized during the preceding calendar year, and shall include: S 2. The opening paragraph of subdivision 2-a of section 84 of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the chairperson of the New York state Olympic regional development authority shall provide a written report to the temporary president of the senate, speaker of the assembly, chair of the senate finance committee, chair of the assem- bly ways and means committee, chair of the senate committee on [health] CULTURAL AFFAIRS, TOURISM, PARKS AND RECREATION, chair of the assembly [health] TOURISM, PARKS, ARTS AND SPORTS DEVELOPMENT committee, the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 3. The opening paragraph of subdivision 2-a of section 97-mmmm of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the director of the New York state division of veterans' affairs shall provide a written A. 9009--B 113 report to the temporary president of the senate, speaker of the assem- bly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the senate committee on [health] VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS, chair of the assembly [health] VETERANS' AFFAIRS committee, the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 4. The opening paragraph of subdivision 2-a of section 99-v of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the director of the New York state division of veterans' affairs shall provide a written report to the temporary president of the senate, speaker of the assem- bly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the senate committee on [health] VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS, chair of the assembly [health] VETERANS' AFFAIRS committee, the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 5. The opening paragraph of subdivision 2-a of section 92-w of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the director of the division of criminal justice services shall provide a written report to the temporary president of the senate, speaker of the assembly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the senate committee on [health] CODES, chair of the assembly [health] CODES committee, the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 6. The opening paragraph of subdivision 2-a of section 79 of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the chairman of the board of directors of the World Trade Center memorial foundation shall provide a written report to the temporary president of the senate, speaker of the assembly, chair of the senate finance committee, chair of the assembly ways and means committee, [chair of the senate committee on health, chair of the assembly health committee,] the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 7. The opening paragraph of subdivision 2-a of section 99-q of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: On or before the first day of February each year, the state fire administrator shall provide a written report to the temporary president of the senate, speaker of the assembly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the senate committee on [health] LOCAL GOVERNMENT, chair of the assembly [health] LOCAL GOVERNMENT committee, the state comptroller and the public. Such report shall include how the monies of the fund were utilized during the preceding calendar year, and shall include: S 8. Subdivision 2 of section 71-b of the state finance law, as added by chapter 453 of the laws of 2015, is amended to read as follows: 2. The head of the agency or entity administering the expenditure of tax check-off monies shall report annually on the use of such monies to A. 9009--B 114 the temporary president of the senate, speaker of the assembly, chair of the senate finance committee, chair of the assembly ways and means committee, chair of the [senate committee on health, chair of the assem- bly health committee,] APPROPRIATE COMMITTEE IN THE SENATE OR ASSEMBLY, the state comptroller and the public. Such report shall include the amount of money dispersed from the fund and the award process used for such disbursements, recipients of awards from the fund, the amount awarded to each, the purposes for which such awards were granted, and a summary financial plan for such monies which shall include estimates of all receipts and all disbursements for the current and succeeding fiscal years, along with the actual results from the prior fiscal year. S 9. Section 95-e of the state finance law, as added by chapter 301 of the laws of 2004, is amended by adding a new subdivision 2-a to read as follows: 2-A. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSION- ER OF HEALTH SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL INCLUDE HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND SHALL INCLUDE: (I) THE AMOUNT OF MONEY DISBURSED FROM THE FUND AND THE AWARD PROCESS USED FOR SUCH DISBURSEMENTS; (II) RECIPIENTS OF AWARDS FROM THE FUND; (III) THE AMOUNT AWARDED TO EACH; (IV) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI- MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED- ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL YEAR. S 10. Section 14 of chapter 453 of the laws of 2015 amending the state finance law relating to tax check-off funds, is amended to read as follows: S 14. This act shall take effect immediately; provided, however, that the provisions of section thirteen of this act shall apply to funds established on and after such date AND FUNDS FOR WHICH A TAX CHECK-OFF IS A SOURCE OF MONIES IN SUCH FUNDS. S 11. This act shall take effect immediately and shall be deemed to have been in full force and effect on the same date and in the same manner as chapter 453 of the laws of 2015, took effect. PART VV Section 1. Paragraph (e) of subdivision 1, and subdivisions 2 and 9 of section 487 of the real property tax law, paragraph (e) of subdivision 1 as amended by chapter 272 of the laws of 2013, subdivision 2 as amended by chapter 515 of the laws of 2002, subdivision 9 as added by chapter 608 of the laws of 2002 and paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of 2014, are amended to read as follows: (e) "Farm waste electric generating equipment" means equipment that generates electric energy from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming waste and food processing wastes [with a rated capacity of not more than one thousand kilowatts] that is (i) manufactured, installed and operated in accordance with applicable government and industry standards, (ii) A. 9009--B 115 connected to the electric system and operated in conjunction with an electric corporation's transmission and distribution facilities, (iii) operated in compliance with the provisions of section sixty-six-j of the public service law, (iv) fueled at a minimum of ninety percent on an annual basis by biogas produced from the anaerobic digestion of agricul- tural waste such as livestock manure materials, crop residues and food processing wastes, and (v) fueled by biogas generated by anaerobic digestion with at least fifty percent by weight of its feedstock being livestock manure materials on an annual basis. 2. (A) Real property which includes a solar or wind energy system or farm waste energy system approved in accordance with the provisions of this section shall be exempt from taxation to the extent of any increase in the value thereof by reason of the inclusion of such solar or wind energy system or farm waste energy system for a period of fifteen years. When a solar or wind energy system or components thereof or farm waste energy system also serve as part of the building structure, the increase in value which shall be exempt from taxation shall be equal to the assessed value attributable to such system or components multiplied by the ratio of the incremental cost of such system or components to the total cost of such system or components. (B) A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT, EXCEPT A SCHOOL DISTRICT UNDER ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THAT HAS NOT ACTED TO REMOVE THE EXEMPTION UNDER THIS SECTION MAY PASS A LOCAL LAW OR RESOLUTION PROVIDING THAT UPON THE EXPIRATION OF THE FIFTEEN YEAR EXEMPTION FOR FARM WASTE ENERGY SYSTEMS, SUCH SYSTEMS SHALL: (I) REMAIN EXEMPT, PROVIDED THE ELIGIBILITY REQUIREMENTS OF THIS SECTION CONTINUE TO BE MET; OR (II) BE SUBJECT TO A PAYMENT IN LIEU OF A TAX AGREEMENT PURSUANT TO SUBDIVISION NINE OF THIS SECTION. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT, EXCEPT A SCHOOL DISTRICT UNDER ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THAT HAS NOT ACTED TO REMOVE THE EXEMPTION UNDER THIS SECTION AND HAS PASSED A LOCAL LAW OR RESOLUTION EXTENDING THE BENEFIT PERIOD FOR FARM WASTE ENERGY SYSTEMS IN ACCORDANCE WITH SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, SHALL REQUIRE THE OWNER OF A PROPERTY WHICH INCLUDES A FARM WASTE ENERGY SYSTEM WHICH MEETS THE REQUIREMENTS OF SUBDIVISION FOUR OF THIS SECTION, TO ENTER INTO A CONTRACT FOR PAYMENTS IN LIEU OF TAXES. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. If the owner or developer of such a system provides writ- ten notification to a taxing jurisdiction of its intent to construct such a system, then in order to require the owner or developer of such system to enter into a contract for payments in lieu of taxes, such taxing jurisdiction must notify such owner or developer of its intent to require a contract for payments in lieu of taxes within sixty days of receiving the written notification OR, IN THE CASE OF AN OWNER OR DEVEL- OPER OF A FARM WASTE ENERGY SYSTEM, ONE YEAR PRIOR TO THE EXPIRATION OF THE FIFTEEN YEAR EXEMPTION PROVIDED IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION. A. 9009--B 116 (b) The payment in lieu of a tax agreement FOR A SOLAR OR WIND ENERGY SYSTEM shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective. (C) THE PAYMENT IN LIEU OF A TAX AGREEMENT FOR A FARM WASTE ENERGY SYSTEM SHALL COMMENCE AND OPERATE UPON THE EXPIRATION OF THE FIFTEEN YEAR EXEMPTION PROVIDED IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION. S 2. This act shall take effect immediately. PART WW Section 1. Section 4 of part U of chapter 55 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by senior citizens, is amended to read as follows: S 4. This act shall take effect July 1, 2014, and sections one and two of this act shall expire and be deemed repealed [2 years after the effective date thereof] JUNE 30, 2018; provided that the amendment to section 467-b of the real property tax law made by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith. S 2. Section 3 of part U of chapter 55 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by senior citi- zens, is amended to read as follows: S 3. The state shall reimburse the city of New York for the difference between the amount of real property tax revenue abated for the period beginning July 1, 2014 and ending June 30, [2016] 2018 pursuant to the income threshold established by sections one and two of this act and the amount of real property tax revenue that would have been abated for the period beginning July 1, 2014 and ending June 30, [2016] 2018 pursuant to the income thresholds that were in effect immediately prior to the income threshold increases established by sections one and two of this act. Prior to any payment, the city shall provide attestation to the director of the New York state division of the budget and the state comptroller as to the actual amount of real property tax revenue abated pursuant to the income thresholds established by sections one and two of this act for the city fiscal years beginning July 1, 2014 [and], July 1, 2015, JULY 1, 2016 AND JULY 1, 2017 and the actual amount of real prop- erty tax revenue that would have been abated pursuant to the income thresholds that were in effect immediately prior to the income threshold increases established by sections one and two of this act for the city fiscal years beginning July 1, 2014 [and], July 1, 2015, JULY 1, 2016 AND JULY 1, 2017. The information contained within such attestation may be subject to the audit and verification by the state comptroller. S 3. Section 4 of chapter 129 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by persons with disabil- ities, is amended to read as follows: S 4. This act shall take effect July 1, 2014 provided, however, that: (a) the amendments to paragraph b of subdivision 3 of section 467-b of the real property tax law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 17 of chapter 576 of the laws of 1974, as amended, when upon A. 9009--B 117 such date the provisions of section two of this act shall take effect; and (b) nothing contained in this act shall be construed so as to extend the provisions of this act beyond [July 1, 2016] JUNE 30, 2018, when upon such date this act shall expire and the provisions contained in this act shall be deemed repealed. S 4. This act shall take effect immediately. PART XX Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part VV of chapter 59 of the laws of 2015, is amended to read as follows: In order to pay the costs of the insurance required by this section and by the workers' compensation law and to carry out its other powers and duties and to pay for any of its liabilities under section four- teen-a of the workers' compensation law, the New York Jockey Injury Compensation Fund, Inc. shall ascertain the total funding necessary and establish the sums that are to be paid by all owners and trainers licensed or required to be licensed under section two hundred twenty of this article, to obtain the total funding amount required annually. In order to provide that any sum required to be paid by an owner or trainer is equitable, the fund shall establish payment schedules which reflect such factors as are appropriate, including where applicable, the geographic location of the racing corporation at which the owner or trainer participates, the duration of such participation, the amount of any purse earnings, the number of horses involved, or such other factors as the fund shall determine to be fair, equitable and in the best inter- ests of racing. In no event shall the amount deducted from an owner's share of purses exceed two per centum; PROVIDED, HOWEVER, FOR TWO THOU- SAND SIXTEEN THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. MAY USE UP TO TWO MILLION DOLLARS FROM THE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE TO PAY THE ANNUAL COSTS REQUIRED BY THIS SECTION AND THE FUNDS FROM SUCH ACCOUNT SHALL NOT COUNT AGAINST THE TWO PER CENTUM OF PURSES DEDUCTED FROM AN OWNER'S SHARE OF PURSES. The amount deducted from an owner's share of purses shall not exceed one per centum after April first, two thousand seventeen. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required. S 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as added by chapter 18 of the laws of 2008, is amended to read as follows: (a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by the individual horseman. FOR TWO THOUSAND SIXTEEN THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. MAY USE UP TO TWO MILLION DOLLARS FROM THE ACCOUNT ESTABLISHED PURSUANT TO THIS SUBDIVISION TO PAY THE ANNUAL COSTS REQUIRED BY SECTION TWO HUNDRED TWENTY-ONE OF THIS ARTICLE. S 3. This act shall take effect immediately. PART YY A. 9009--B 118 Section 1. Section 221-a of the racing, pari-mutuel wagering and breeding law, as added by section 3 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: S 221-a. Health insurance for jockeys. 1. A franchised corporation shall, as a condition of racing, establish a program to administer the purchase of health insurance for eligible jockeys. Such program shall be funded through the deposit of one and one-half percent of the gross purse enhancement amount from video lottery gaming at a thoroughbred track pursuant to paragraph two of subdivision b and paragraph one of subdivision f of section sixteen hundred twelve of the tax law. The franchised corporation shall establish a segregated account for the receipt of these monies and these monies shall remain separate from any other funds. Any corporation or association licensed pursuant to this article shall pay into such account any amount due within ten days of the receipt of revenue pursuant to section sixteen hundred twelve of the tax law. Any portion of such funding to the account unused during a calendar year, less an amount sufficient to cover anticipated premium liabilities over the next sixty days, shall be returned on a pro rata basis in accordance with the amounts originally contributed and shall be used for the purpose of enhancing purses at such tracks. Provided, however, if a corporation or association licensed pursuant to this article provides an alternative source of funding for this program, an amount equal to this alternative funding, but not in excess of the amount originally contributed during the year from the gross purse enhancement amount from video lottery gaming attributable to such corpo- ration or association, shall be returned to the corporation or associ- ation and used for the purpose of enhancing purses at such track. Provided, further, any such alternative source of funding must be approved by the gaming commission. 2. The franchised corporation shall enter into a memorandum of under- standing with the jockey's organization that represents at least fifty- one percent of eligible active jockeys establishing a plan of operation for the program, provided that such memorandum of understanding shall be approved by the gaming commission UPON A DETERMINATION THAT SUCH MEMO- RANDUM OF UNDERSTANDING MEETS THE STATUTORY REQUIREMENTS OF THIS SECTION AND IS IN THE BEST INTEREST OF RACING and SHALL include, but not be limited to, the following conditions: a. health insurance policies must be purchased on an American health benefit exchange established pursuant to 42 U.S.C. S 18031(b) by the insured; b. health insurance policies eligible to be purchased under the program shall be any policy that is silver level of coverage or lower as defined by 42 U.S.C.S18022(d). Provided, however, the insured may elect to purchase a gold level or platinum level of coverage as defined by 42 U.S.C. S 18022(d) if the insured pays the difference in premiums between such policy and the premium for the silver level policy offered by the same insurer. Such payments shall be paid into the account established in subdivision one of this section and shall be governed by the terms of the memorandum of understanding required by this section; C. NOTWITHSTANDING THE CONDITIONS SET FORTH IN PARAGRAPHS A AND B OF THIS SUBDIVISION, A MEMORANDUM OF UNDERSTANDING WITH THE JOCKEYS ORGAN- IZATION THAT REPRESENTS AT LEAST FIFTY-ONE PERCENT OF THE ELIGIBLE ACTIVE JOCKEYS MAY BE APPROVED BY THE COMMISSION UPON A DETERMINATION THAT SUCH MEMORANDUM OF UNDERSTANDING IS IN THE BEST INTEREST OF RACING THAT CREATES A JOCKEYS HEALTH TRUST TO BE ADMINISTERED BY THE FRANCHISED CORPORATION FOR THE PURPOSE OF OBTAINING JOCKEY HEALTH BENEFITS FROM A A. 9009--B 119 HEALTH INSURANCE PROVIDER THAT COVERS JOCKEYS AND THEIR DEPENDENTS WITH A HEALTH INSURANCE POLICY THAT IS NOT PURCHASED ON AN AMERICAN HEALTH BENEFIT EXCHANGE ESTABLISHED PURSUANT TO 42 U.S.C. S 18031(B) BUT DOES PROVIDE SILVER LEVEL COVERAGE OR LOWER AS DEFINED BY 42 U.S.C. S 18022(D); [c.]D. the payment of premiums PURSUANT TO THIS SECTION shall be made on behalf of eligible jockeys pursuant to paragraph [d] E of this subdi- vision by the franchised corporation from monies in the account estab- lished in subdivision one of this section directly to the health plan selected pursuant to paragraph b OR C of this subdivision; [d.]E. to be eligible to receive health insurance through this program, an individual must meet one of the following requirements: (i) have ridden in at least two hundred fifty races conducted by the franchised corporation during the prior calendar year or in at least one hundred fifty races conducted by any other corporation or association licensed pursuant to this article during the prior calendar year; provided, however, if an individual qualified for coverage in any prior year and fails to meet the qualification due to an injury not resulting in a permanent disability, that individual shall be deemed to have met the qualification; or (ii) have retired from racing on or after January first, two thousand ten after having ridden in at least seventy-five hundred races conducted by any corporation or association licensed pursuant to this article. For the purposes of this section, an individual shall be considered retired from racing if they have ridden in fewer than fifty races at any track in the nation licensed to conduct thoroughbred racing during the calen- dar year; or (iii) have become permanently disabled due to a racing accident while eligible to receive benefits or would become eligible to receive bene- fits in the following year pursuant to subparagraph (i) of this para- graph; provided, however, if an individual fails to meet the qualifica- tion of such subparagraph (i) due to an injury resulting in a permanent disability, that individual shall be deemed to have met the qualifica- tion; and [e.]F. the gaming commission shall have the following powers: (i) to rule on eligibility in the event of a denial of coverage pursu- ant to paragraph [d] E of this subdivision. In the event of a denial of coverage, such individual denied eligibility may appeal to the gaming commission; (ii) to make a determination if an individual would have qualified pursuant to subparagraph (i) of paragraph [d] E of this subdivision in the event that the individual suffers an injury and contends that he or she would have qualified had they not suffered such injury; and (iii) to audit the books and records of the program. S 2. This act shall take effect immediately. PART ZZ Section 1. The tax law is amended by adding a new section 42 to read as follows: S 42. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. (1) A TAXPAYER WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED MUSIC PRODUCTION, OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PART- NERSHIP, WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED MUSIC PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF A. 9009--B 120 THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX TO BE COMPUTED AS PROVIDED HEREIN. (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION COSTS OF ONE OR MORE QUALIFIED MUSIC PRODUCTIONS. (3) ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION INCURRED AND PAID IN THIS STATE BUT OUTSIDE SUCH METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SHALL BE ELIGIBLE FOR A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS IN ADDITION TO THE CREDIT SPECIFIED IN PARAGRAPH TWO OF THIS SUBDIVISION. (4) NO ELIGIBLE PRODUCTION COSTS CLAIMED BY A TAXPAYER AS THE BASIS FOR THE CREDIT UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT PURSUANT TO THIS CHAPTER. (B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SECTION, SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE EMPIRE STATE DEVELOPMENT CORPO- RATION AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION CREDIT WITH SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR. (C) DEFINITIONS. AS USED IN THIS SECTION: (1) "MUSIC PRODUCTION" MEANS THE CREATION OF A SOUND RECORDING AND ANY RELATED MUSIC VIDEO, EITHER OF WHICH IS INTENDED FOR COMMERCIAL RELEASE. A "MUSIC PRODUCTION" DOES NOT INCLUDE RECORDINGS THAT ARE PRIMARILY SPOKEN WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL USE OR ADVERTISING OR PROMOTIONAL PURPOSES. (2) "QUALIFIED MUSIC PRODUCTION" IS A MUSIC PRODUCTION IN WHICH ELIGI- BLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF SEVEN THOUSAND FIVE HUNDRED DOLLARS IF INCURRED AND PAID IN THIS STATE IN THE TWELVE MONTHS PRECEDING THE DATE ON WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF SUCH PRODUCTION COSTS ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT IN THIS STATE, SUCH PRODUCTION COSTS SHALL BE EQUAL TO OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE A QUALIFIED MUSIC PRODUCTION FOR THE PURPOSES OF THIS PARAGRAPH. (3) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION" ARE COSTS INCURRED AND PAID IN THIS STATE FOR TANGIBLE PROPERTY AND SERVICES USED IN THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETERMINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT, INCLUDING, BUT NOT LIMITED TO; (I) STUDIO RENTAL FEES AND RELATED COSTS, (II) INSTRUMENT AND EQUIPMENT RENTAL FEES, (III) PRODUCTION SESSION FEES FOR PROGRAMMERS, ENGINEERS, AND TECHNICIANS, (IV) MIXING AND MASTERING SERVICES, AND (V) LOCAL TRANSPORTATION EXPENDITURES DIRECTLY RELATED TO MUSIC PRODUCTION AND PROVIDED AT OR TO THE SITE OF SUCH MUSIC PRODUCTION. ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE; (I) COSTS FOR TANGIBLE PROPERTY OR SERVICES USED OR PERFORMED OUTSIDE OF THIS STATE, (II) PERFORMANCE FEES FOR ARTISTS, (III) SALARIES OR RELATED COMPENSATION FOR PRODUCERS OR SONG- WRITERS;, (IV) COMPOSER, ARTIST OR PRODUCER RESIDUAL ROYALTIES OR ADVANCES, (V) LICENSING FEES FOR SAMPLES, (VI) INTERPOLATIONS OR OTHER MUSIC CLEARANCE COSTS, (VII) MASTERING OR POST-PRODUCTION EXPENDITURES FOR PROJECTS THAT WERE NOT PRINCIPALLY TRACKED AND RECORDED IN THIS A. 9009--B 121 STATE, OR (VIII) ANY COSTS ASSOCIATED WITH MANUFACTURING, DUPLICATION, PACKAGING, DISTRIBUTION, PROMOTION, MARKETING OR TOURING NOT SPECIF- ICALLY OUTLINED IN THIS SUBPARAGRAPH. WITH RESPECT TO THE PRODUCTION OF A MUSIC VIDEO, ELIGIBLE PRODUCTION COSTS ARE THOSE DEFINED IN PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION TWENTY-FOUR OF THIS ARTICLE. SUCH TOTAL PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE EQUAL TO OR EXCEED SEVENTY-FIVE PERCENT OF TOTAL COST OF AN ELIGIBLE PRODUCTION INCURRED AND PAID WITHIN AND WITHOUT THIS STATE. (D) REPORTING. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT AN ANNUAL REPORT, ON OR BEFORE DECEMBER FIRST OF EACH YEAR, TO THE GOVER- NOR, THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING INFORMATION REGARDING THE PREVIOUS CALENDAR YEAR REGIONALLY, FOR ACTIVITY WITHIN AND WITHOUT THE METROPOLITAN COMMU- TER TRANSPORTATION DISTRICT; THE TOTAL DOLLAR AMOUNT OF CREDITS ALLO- CATED, THE NAME AND ADDRESS OF EACH ELIGIBLE MUSIC PRODUCTION ENTITY ALLOCATED CREDITS UNDER THIS SECTION, AND THE TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH ELIGIBLE MUSIC PRODUCTION ENTITY. THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN THE CALCULATION OR ADMINIS- TRATION OF THE CREDIT, AND ANY OTHER INFORMATION REGARDING THIS CREDIT AS MAY BE USEFUL AND APPROPRIATE. (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FORTY-NINE. (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA- GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLI). (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (CCC). S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 49 to read as follows: 49. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL 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. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON. S 3. 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) EMPIRE STATE MUSIC AMOUNT OF CREDIT PRODUCTION CREDIT UNDER UNDER SUBDIVISION SUBSECTION (CCC) FORTY-NINE OF SECTION TWO HUNDRED TEN-B S 4. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE. A. 9009--B 122 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 5. Subdivision 11 of section 352 of the economic development law is REPEALED. S 6. Subdivisions 1, 3 and 5 of section 353 of the economic develop- ment law, as amended by section 2 of part K of chapter 59 of the laws of 2015, are amended to read as follows: 1. To be a participant in the excelsior jobs program, a business enti- ty shall operate in New York state predominantly: (a) as a financial services data center or a financial services back office operation; (b) in manufacturing; (c) in software development and new media; (d) in scientific research and development; (e) in agriculture; (f) in the creation or expansion of back office operations in the state; (g) in a distribution center; (h) in an industry with significant potential for private-sector economic growth and development in this state as established by the commissioner in regulations promulgated pursuant to this article. In promulgating such regulations the commissioner shall include job and investment criteria; (i) as an entertainment company[; or (j) in music production]. 3. For the purposes of this article, in order to participate in the excelsior jobs program, a business entity operating predominantly in manufacturing must create at least ten net new jobs; a business entity operating predominately in agriculture must create at least five net new jobs; a business entity operating predominantly as a financial service data center or financial services customer back office operation must create at least fifty net new jobs; a business entity operating predomi- nantly in scientific research and development must create at least five net new jobs; a business entity operating predominantly in software development must create at least five net new jobs; a business entity creating or expanding back office operations must create at least fifty net new jobs; [a business entity operating predominately in music production must create at least five net new jobs;] a business entity operating predominantly as an entertainment company must create or obtain at least one hundred net new jobs; or a business entity operating predominantly as a distribution center in the state must create at least seventy-five net new jobs, notwithstanding subdivision five of this section; or a business entity must be a regionally significant project as defined in this article; or 5. A not-for-profit business entity, a business entity whose primary function is the provision of services including personal services, busi- ness services, or the provision of utilities, and a business entity engaged predominantly in the retail or entertainment industry, other than a business operating as an entertainment company as defined in this article [and other than a business entity engaged in music production], and a company engaged in the generation or distribution of electricity, the distribution of natural gas, or the production of steam associated A. 9009--B 123 with the generation of electricity are not eligible to receive the tax credit described in this article. S 7. The state commissioner of economic development, after consulting with the state commissioner of taxation and finance, shall promulgate regulations by October 31, 2016 to establish procedures for the allo- cation of tax credits as required by subdivision (a) of section 42 of the tax law. Such rules and regulations shall include provisions describing the application process, the due dates for such applications, the standards which shall be used to evaluate the applications, the documentation that will be provided to taxpayers substantiate to the New York state department of taxation and finance the amount of tax credits allocated to such taxpayers, under what conditions all or a portion of this tax credit may be revoked, and such other provisions as deemed necessary and appropriate. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regu- lations may be adopted on an emergency basis if necessary to meet such October 31, 2016 deadline. S 8. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. PART AAA Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) SCHOOL BUSES AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED FORTY-TWO OF THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI- CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION. S 2. This act shall take effect on the first day of a quarterly sales tax period, as set forth in subdivision (b) of section 1136 of the tax law, next succeeding April 1, 2016. Provided, however, that the commis- sioner of taxation and finance may take any action necessary for the timely implementation of this act on or before the date on which it shall have become a law. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through AAA of this act shall be as specifically set forth in the last section of such Parts.
2015-A9009C (ACTIVE) - Details
- See Senate Version of this Bill:
- S6409
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2015-A9009C (ACTIVE) - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year; amends the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit (Part A); intentionally omitted (Part B); intentionally omitted (Part C)
2015-A9009C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 6409--C A. 9009--C S E N A T E - A S S E M B L Y January 14, 2016 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law and the tax law, in relation to transitioning the school tax relief (STAR) exemption into a personal income tax credit (Part A); intentionally omitted (Part B); intentionally omitted (Part C); to amend the real property tax law, in relation to allowing applications for exemptions to be filed after the taxable status date in certain cases (Part D); to amend the tax law and the administrative code of the city of New York, in relation to establishing a new school tax reduction credit for residents of a city with a population over one million (Part E); to amend the real proper- ty tax law, in relation to authorizing the commissioner of taxation and finance to make direct payments of STAR tax savings to property owners in certain cases (Part F); to amend chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness thereof (Part G); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part H); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part I); to amend the tax law, in relation to extending the empire state commercial production tax credit (Part J); EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-05-6 S. 6409--C 2 A. 9009--C to amend chapter 604 of the laws of 2011, amending the tax law relat- ing to the credit for companies who provide transportation to people with disabilities, in relation to extending the expiration of such provision; and to amend the tax law, in relation to the application of a credit for companies who provide transportation to individuals with disabilities (Part K); to amend part I of chapter 58 of the laws of 2006, amending the tax law relating to providing an enhanced earned income tax credit, in relation to making the enhanced earned income tax credit permanent (Part L); to amend part N of chapter 61 of the laws of 2005 amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initi- ative, in relation to extending the expiration thereof (Part M); to amend the tax law, in relation to extending the clean heating fuel credit for three years and updating the credit to reflect new minimum biodiesel fuel thresholds (Part N); to amend the economic development law and the tax law, in relation to extending the excelsior jobs program for five years (Part O); to amend the tax law and the adminis- trative code of the city of New York, in relation to making corrections to the corporate tax reform provisions (Part P); to amend the tax law and the administrative code of the city of New York, in relation to the time for filing reports (Part Q); intentionally omit- ted (Part R); intentionally omitted (Part S); intentionally omitted (Part T); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part U); to amend the tax law, in relation to exempting from alcoholic beverage tax certain alcoholic beverages furnished at no charge by certain licensees to customers or prospective customers at a tasting held in accordance with the alcoholic beverage control law, and to expand the beer production credit to include wine, liquor and cider (Part V); intentionally omitted (Part W); to amend the tax law and the administrative code of the city of New York, in relation to allowing room remarketers to purchase occupancies from hotel operators exempt from sales tax under certain circumstances (Part X); to amend the tax law, in relation to charitable contributions and charitable activities being considered in determining domicile for estate tax purposes (Part Y); to amend the state finance law, in relation to creating the aviation purpose account and ensuring that the funds deposited in the aviation purpose account are used for airport improvement projects; to amend the tax law, in relation to providing for the distribution of revenues under section 301-e of such law; to exempt sales of fuel sold for use in commercial aircraft and general aviation aircraft from the prepayment of sales tax imposed pursuant to the authority of section 1102 of such law; and to exclude sales of fuel sold for use in commercial aircraft and general aviation aircraft from the operation of sales and use taxes imposed pursuant to the authority of section 1210 of such law (Part Z); intentionally omitted (Part AA); to amend the racing, pari-mutuel wagering and breeding law, in relation to increasing racing regulatory fee (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the timing of harness track reimbursements and other technical amendments (Part CC); to amend the tax law, in relation to the payment of vendors' fees (Part DD); to amend the tax law, in relation to vendor fees at vendor tracks (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast S. 6409--C 3 A. 9009--C facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting, in relation to the effectiveness thereof; to amend chapter 346 of the laws of 1990 amend- ing the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provision thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extend- ing certain provisions thereof (Part FF); to amend the tax law, in relation to capital awards to vendor tracks (Part GG); to amend the state finance law, in relation to allocations from the commercial gaming revenue fund; to amend the tax law, in relation to commissions payable to certain vendor racetracks (Part HH); to amend the tax law, in relation to further clarifying disclosure procedures regarding medical marihuana (Part II); to amend the real property tax law, in relation to STAR recoupment program (Part JJ); to amend the tax law and the state finance law, in relation to the fees associated with a certificate of registration and decal imposed by article 21 of the tax law for certain vehicles operating on public highways in New York state (Part KK); to amend the tax law, in relation to making corrections to the corporate tax reform provisions (Part LL); to amend the tax law, in relation to the real property tax credit for manufac- turers (Part MM); to amend the tax law and the administrative code of the city of new York, in relation to the value of leased real property (Part NN); to amend the racing, pari-mutuel wagering and breeding law, in relation to health insurance for jockeys (Part OO); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part PP); to amend the economic development law and the tax law, in relation to the economic transformation and facility redevelopment program tax credit (Part QQ); to amend the tax law, in relation to creating a farm workforce retention credit (Part RR); to amend the tax law and the racing, pari- mutuel wagering and breeding law, in relation to authorization to operate video lottery terminals and capital awards at certain facili- ties (Part SS); to amend the tax law, in relation to providing a middle income tax cut under the personal income tax; to repeal subpar- agraph (B) of paragraph 1 of subsection (a), subparagraph (B) of para- graph 1 of subsection (b) and subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law relating to the imposi- tion of tax; and to repeal subsection (d-2) of section 601 of the tax law relating to tax table benefit recapture for tax years after two thousand seventeen (Part TT); to amend the tax law, in relation to requiring wholesalers of motor fuel to register and file returns (Part UU); to amend the labor law, in relation to enhancing the urban youth jobs program tax credit by increasing the sum of money allocated to programs four and five (Part VV); and to amend the tax law, in relation to exempting commercial fuel cell electricity generating systems and electricity provided by such sources from the sales tax imposed by article 28 of the tax law and omitting such exemption from the taxes imposed pursuant to the authority of article 29 of the tax law, unless a locality elects otherwise (Part WW) S. 6409--C 4 A. 9009--C THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2016-2017 state fiscal year. Each component is wholly contained within a Part identified as Parts A through WW. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Paragraph (a) of subdivision 6 of section 425 of the real property tax law, as amended by chapter 6 of the laws of 2010, and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (a) Generally. All owners of the property who primarily reside thereon AND WHO ARE NOT SUBJECT TO THE PROVISIONS OF SUBDIVISION SIXTEEN OF THIS SECTION must jointly file an application for exemption with the assessor on or before the appropriate taxable status date. Such application may be filed by mail if it is enclosed in a postpaid envelope properly addressed to the appropriate assessor, deposited in a post office or official depository under the exclusive care of the United States postal service, and postmarked by the United States postal service on or before the applicable taxable status date. Each such application shall be made on a form prescribed by the commissioner, which shall require the appli- cant or applicants to agree to notify the assessor if their primary residence changes while their property is receiving the exemption. The assessor may request that proof of residency be submitted with the application. If the applicant requests a receipt from the assessor as proof of submission of the application, the assessor shall provide such receipt. If such request is made by other than personal request, the applicant shall provide the assessor with a self-addressed postpaid envelope in which to mail the receipt. S 2. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: 16. TRANSITION TO PERSONAL INCOME TAX CREDIT. (A) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, NO APPLICATION FOR AN EXEMPTION UNDER THIS SECTION MAY BE FILED OR APPROVED UNLESS AT LEAST ONE OF THE APPLICANTS HELD TITLE TO THE PROPERTY ON THE TAXABLE STATUS DATE OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND THE PROPERTY WAS GRANTED AN EXEMPTION PURSUANT TO THIS SECTION ON THAT ASSESSMENT ROLL. IN THE EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLICANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT, IN LIEU OF A STAR EXEMPTION, THE APPLICANT MAY CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE APPLI- CANT MAY CONTACT THE DEPARTMENT OF TAXATION AND FINANCE FOR FURTHER S. 6409--C 5 A. 9009--C INFORMATION. THE COMMISSIONER SHALL PROVIDE A FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICATION. NO STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. (B) IF THE OWNERS OF A PARCEL THAT IS RECEIVING THE STAR EXEMPTION AUTHORIZED BY THIS SECTION WANT TO CLAIM THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN LIEU OF SUCH EXEMPTION, THEY ALL MUST RENOUNCE THAT EXEMPTION IN THE MANNER PROVIDED BY SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAPTER, AND MUST PAY ANY REQUIRED TAXES, INTEREST AND PENALTIES, ON OR BEFORE DECEM- BER THIRTY-FIRST OF THE TAXABLE YEAR FOR WHICH THEY WANT TO CLAIM THE CREDIT. ANY SUCH RENUNCIATION SHALL BE IRREVOCABLE. (C) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL APPLICATIONS FOR STAR EXEMPTIONS BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, INCLUDING THOSE SUBMITTED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION. IF ANY APPLICATION WAS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION THAT IS NOT APPROVABLE HEREUNDER, SUCH APPROVAL SHALL BE DEEMED VOID, AND THE ASSESSOR SHALL PROVIDE THE APPLICANT WITH THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION. IF AN APPLI- CATION WAS SUBMITTED PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION BUT IS NOT APPROVABLE HEREUNDER, THE APPLICANT MAY APPLY FOR ADVANCE PAYMENT OF THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THE TWO THOUSAND SIXTEEN TAXABLE YEAR, IF ELIGIBLE, IN THE MANNER PROVIDED BY PARAGRAPH TEN OF SUCH SUBSECTION, NOTWITHSTANDING THE TIME LIMITATIONS CONTAINED IN THAT PARAGRAPH. S 3. Subdivision 2 of section 496 of the real property tax law, as added by section 3 of part N of chapter 58 of the laws of 2011, is amended to read as follows: 2. An application to renounce an exemption shall be made on a form prescribed by the commissioner and shall be filed with the county direc- tor of real property tax services no later than ten years after the levy of taxes upon the assessment roll on which the renounced exemption appears. The county director, after consulting with the assessor as appropriate, shall compute the total amount owed on account of the renounced exemption as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be appli- cable for each month or portion thereon since the levy of taxes upon such assessment roll. (b) The sum of the calculations made pursuant to paragraph (a) of this subdivision with respect to all of the assessment rolls in question shall be determined. (c) A processing fee of five hundred dollars shall be added to the sum determined pursuant to paragraph (b) of this subdivision, UNLESS THE PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION ARE APPLICABLE. (D) IF THE APPLICANT IS RENOUNCING A STAR EXEMPTION IN ORDER TO QUALI- FY FOR THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, AND NO OTHER EXEMPTIONS ARE BEING RENOUNCED ON THE SAME APPLICATION, NO PROCESSING FEE SHALL BE APPLICABLE. S. 6409--C 6 A. 9009--C S 4. Subdivision 3 of section 520 of the real property tax law, as added by chapter 635 of the laws of 1978, is amended to read as follows: 3. For purposes of any fiscal year or years during which title to such property is transferred, such property shall be deemed to have been omitted and the assessed value thereof shall be entered on the assess- ment roll to be used for the next tax levy by or for each municipal corporation in which such property is located in the same manner as provided by title three of article five of this chapter with respect to a parcel omitted from the assessment roll of the previous year. A pro rata tax shall be extended against the property for the unexpired portion of each fiscal year. Such real property shall be taxed at the tax rate or tax rates for the fiscal year during which the transfer occurred. The amount of tax or taxes levied pursuant to this subdivi- sion shall be deducted from the aggregate amount of taxes to be levied for the fiscal year immediately succeeding the fiscal year during which the transfer occurred; PROVIDED, HOWEVER, THAT WHERE THE PROPERTY IS RECEIVING A SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, THE PORTION OF THE TAX OR TAXES LEVIED THAT EQUALS THE RECOVERED STAR TAX SAVINGS SHALL BE APPLIED TO REDUCE THE AMOUNT OF AID PAYABLE TO THE SCHOOL DISTRICT UNDER SUBDI- VISION THREE OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. S 5. Subdivision 6 of section 1306-a of the real property tax law is renumbered subdivision 7 and a new subdivision 6 is added to read as follows: 6. WHEN THE COMMISSIONER DETERMINES, AT LEAST THIRTY DAYS PRIOR TO THE LEVY OF SCHOOL DISTRICT TAXES, THAT AN ADVANCE CREDIT OF THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW WILL BE PROVIDED TO THE OWNERS OF A PARCEL IN THAT SCHOOL DISTRICT, HE OR SHE SHALL SO NOTIFY THE AUTHORITIES OF THE SCHOOL DISTRICT, WHO SHALL CAUSE A STATEMENT TO BE PLACED ON THE TAX BILL FOR THE PARCEL IN SUBSTANTIALLY THE FOLLOWING FORM: "A STAR REIMBURSEMENT CHECK OF $ WILL BE MAILED TO YOU UPON ISSUANCE BY THE NYS TAX DEPARTMENT." THE COMMISSIONER SHALL ADVICE THE SCHOOL DISTRICT AUTHORI- TIES OF THE AMOUNT TO BE ENTERED THEREIN. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IN THE EVENT THAT THE PARCEL IN QUESTION HAD BEEN GRANTED A STAR EXEMPTION ON THE ASSESSMENT ROLL UPON WHICH SCHOOL DISTRICT TAXES ARE TO BE LEVIED, SUCH EXEMPTION SHALL BE DEEMED NULL AND VOID AND SHALL BE DISREGARDED WHEN THE PARCEL'S TAX LIABILITY IS DETER- MINED. S 6. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX RELIEF (STAR) CREDIT. (1) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION: (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE, WHO MAINTAINED HIS OR HER PRIMARY RESIDENCE IN THIS STATE ON DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, WHO WAS AN OWNER OF THAT PROPERTY ON THAT DATE, WHO CANNOT RECEIVE THE STAR EXEMPTION ON THAT PROPERTY EITHER BECAUSE (I) HE OR SHE IS PRECLUDED FROM FILING AN APPLICATION FOR THE STAR EXEMPTION ON THAT PROPERTY PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, OR BECAUSE (II) HE OR SHE HAS IRREVOCABLY RENOUNCED HIS OR HER CLAIM TO SUCH EXEMPTION IN CONJUNCTION WITH ALL OTHER OWNERS PURSUANT TO PARAGRAPH (B) OF SUCH SUBDIVISION, AND WHO IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE. A TAXPAYER WHOSE PRIMARY RESIDENCE RECEIVED A STAR EXEMPTION FOR THE ASSOCIATED FISCAL YEAR THAT COMMENCED S. 6409--C 7 A. 9009--C AFTER THE ACQUISITION OF SUCH RESIDENCE SHALL NOT BE CONSIDERED A QUALI- FIED TAXPAYER FOR PURPOSES OF THIS SUBSECTION. (B) "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON AS OF DECEMBER THIR- TY-FIRST OF THE TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMA- RILY THEREON AS OF SUCH DATE; PROVIDED THAT THE INCOME TO BE SO COMBINED SHALL BE THE "ADJUSTED GROSS INCOME" FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME TAX PURPOSES, OR THAT WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED, REDUCED BY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY. (C) "ASSOCIATED FISCAL YEAR" MEANS THE SCHOOL DISTRICT FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE CITY FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR. (D) "OWNER" MEANS: (I) A PERSON WHO OWNS A PARCEL IN FEE SIMPLE ABSOLUTE OR AS A TENANT IN COMMON, A JOINT TENANT OR A TENANT BY THE ENTIRETY, (II) AN OWNER OF A PRESENT INTEREST IN A PARCEL UNDER A LIFE ESTATE, (III) A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF SALE, (IV) A BENEFICIAL OWNER UNDER A TRUST, (V) A TENANT-STOCKHOLDER OF A COOPERATIVE APARTMENT CORPORATION WHO RESIDES IN A PORTION OF REAL PROPERTY OWNED BY SUCH COOPERATIVE APART- MENT CORPORATION, TO THE EXTENT REPRESENTED BY HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION AS DETERMINED BY ITS OR THEIR PROPORTIONAL RELATIONSHIP TO THE TOTAL OUTSTANDING STOCK OF THE CORPO- RATION, INCLUDING THAT OWNED BY THE CORPORATION, (VI) A RESIDENT OF A FARM DWELLING THAT IS OWNED EITHER BY A CORPO- RATION OF WHICH THE RESIDENT IS A SHAREHOLDER, A PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, OR BY A LIMITED LIABILITY COMPANY OF WHICH THE RESIDENT IS AN OWNER, OR (VII) A RESIDENT OF A DWELLING, OTHER THAN A FARM DWELLING, THAT IS OWNED BY A LIMITED PARTNERSHIP OF WHICH THE RESIDENT IS A PARTNER, PROVIDED THAT THE LIMITED PARTNERSHIP THAT HOLDS TITLE TO THE PROPERTY DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, THAT THE LIMITED PARTNERSHIP WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES, AND THAT THE PARTNER OR PARTNERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF THE REAL PROPERTY TAXES AND OTHER COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP. (E) "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR; OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, THE COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. IN NO CASE SHALL THE TERM "QUALIFYING TAXES" BE CONSTRUED TO INCLUDE PENALTIES OR INTEREST. (F) "STAR EXEMPTION" MEANS THE SCHOOL TAX RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (G) "STAR TAX SAVINGS" MEANS THE TAX SAVINGS ATTRIBUTABLE TO THE STAR EXEMPTION WITHIN A PORTION OF A SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THE REAL PROPERTY TAX LAW. S. 6409--C 8 A. 9009--C (2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED- IT AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER- EST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST. (3) DETERMINATION OF BASIC STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, A BASIC STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER IF THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO FIVE HUNDRED THOUSAND DOLLARS. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH BASIC STAR CREDIT SHALL BE THE LESSER OF: (I) THE BASIC STAR TAX SAVINGS APPLICABLE TO THE TAXPAYER'S PRIMARY RESIDENCE, OR (II) THE TAXPAYER'S QUALIFYING TAXES. (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (4) DETERMINATION OF ENHANCED STAR CREDIT. (A) BEGINNING WITH TAXABLE YEARS AFTER TWO THOUSAND FIFTEEN, AN ENHANCED STAR CREDIT SHALL BE AVAILABLE TO A QUALIFIED TAXPAYER WHERE BOTH OF THE FOLLOWING CONDITIONS ARE SATISFIED: (I) ALL OF THE OWNERS OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE ARE AT LEAST SIXTY-FIVE YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE OR BY SIBLINGS, AT LEAST ONE OF THE OWNERS IS AT LEAST SIXTY-FIVE YEARS OF AGE AS OF THAT DATE. THE TERMS "SIBLINGS" AS USED HEREIN SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, THE CREDIT, ONCE ALLOWED, SHALL NOT BE DISALLOWED BECAUSE OF THE DEATH OF THE OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR. (II) THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO THE INCOME STANDARD FOR THE TAXABLE YEAR ESTABLISHED BY THE COMMISSIONER FOR THE CORRESPONDING "INCOME TAX YEAR" PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH (I) OF PARA- GRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW FOR PURPOSES OF THE ENHANCED STAR EXEMPTION. (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH, SUCH CREDIT SHALL BE THE LESSER OF: (I) THE ENHANCED STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, OR (II) THE TAXPAYER'S QUALIFYING TAXES. S. 6409--C 9 A. 9009--C (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI- TUTED ONLY A PORTION OF THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS. (5) DISQUALIFICATION. A TAXPAYER SHALL NOT QUALIFY FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IF THE PARCEL THAT SERVES AS THE TAXPAY- ER'S PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION ON THE ASSESSMENT ROLL UPON WHICH SCHOOL DISTRICT TAXES FOR THE ASSOCIATED FISCAL YEAR WHERE LEVIED. PROVIDED, HOWEVER, THAT THE TAXPAYER MAY REMOVE THIS DISQUALIFICATION BY RENOUNCING THE EXEMPTION AND MAKING ANY REQUIRED PAYMENTS BY DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR, AS PROVIDED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. (6) SPECIAL CASES. (A) IN THE CASE OF PROPERTY CONSISTING OF A COOPER- ATIVE APARTMENT CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO SIXTY PERCENT OF THE BASIC STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, OR SIXTY PERCENT OF THE ENHANCED STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, WHICHEVER IS APPLICABLE. PROVIDED, HOWEVER, THAT IN THE CASE OF A COOPERATIVE APARTMENT CORPO- RATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF SUBDI- VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL BE EQUAL TO TWENTY PERCENT OF SUCH AMOUNT. (B) IN THE CASE OF PROPERTY CONSISTING OF A MOBILE HOME THAT IS DESCRIBED IN PARAGRAPH (1) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, THE AMOUNT OF THE CREDIT ALLOWABLE WITH RESPECT TO SUCH MOBILE HOME SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE BASIC STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, OR TWENTY-FIVE PERCENT OF THE ENHANCED STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, WHICHEVER IS APPLICABLE. (C) IN THE CASE OF A PRIMARY RESIDENCE THAT IS LOCATED IN TWO OR MORE SCHOOL DISTRICTS, THE APPLICABLE BASIC OR ENHANCED STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION SHALL BE DETERMINED AS FOLLOWS: (I) DETERMINE THE SUM OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR BY EACH OF THE SCHOOL DISTRICTS IN WHICH THE RESIDENCE IS LOCATED; (II) FOR EACH SUCH SCHOOL DISTRICT, DIVIDE THE TOTAL SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE BY THAT SCHOOL DISTRICT FOR THE ASSOCIATED FISCAL YEAR BY THE SUM DETERMINED IN CLAUSE (I) OF THIS SUBPARAGRAPH. EXPRESS THE RESULT AS A PERCENTAGE WITH TWO DECIMAL PLACES; (III) FOR EACH SUCH SCHOOL DISTRICT, MULTIPLY THE PERCENTAGE DETER- MINED IN CLAUSE (II) OF THIS SUBPARAGRAPH BY THE BASIC OR ENHANCED STAR TAX SAVINGS FOR THE SCHOOL DISTRICT PORTION, WHICHEVER IS APPLICABLE; AND (IV) ADD THE PRODUCTS DETERMINED IN CLAUSE (III) OF THIS SUBPARAGRAPH. (7) DISCLOSURE OF INCOMES. WHERE THE COMMISSIONER HAS DENIED A TAXPAY- ER'S CLAIM FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IN WHOLE OR IN S. 6409--C 10 A. 9009--C PART ON THE GROUNDS THAT THE AFFILIATED INCOME OF THE PARCEL IN QUESTION EXCEEDS THE APPLICABLE LIMIT, THE COMMISSIONER SHALL HAVE THE AUTHORITY TO REVEAL TO THAT TAXPAYER THE NAMES AND INCOMES OF THE OTHER TAXPAYERS WHOSE INCOMES WERE INCLUDED IN THE COMPUTATION OF SUCH AFFILIATED INCOME. (8) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION: AFFILIATED INCOME, THE TOTAL SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY- TWO OF THE EDUCATION LAW, THE TOTAL COMBINED CITY AND SCHOOL DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR, THE QUALI- FYING TAXES PAID BY THE TAXPAYER, THE NAMES AND TAXPAYER IDENTIFICATION NUMBERS OF ALL OWNERS OF THE PROPERTY AND SPOUSES WHO PRIMARILY RESIDE ON THE PROPERTY, THE PARCEL IDENTIFICATION NUMBER AND ALL OTHER INFORMA- TION THAT MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT. (9) RETURNS. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE YEARS FROM THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSUANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN SUCH FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHO SHALL MAKE AVAILABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS. (10) ADVANCE PAYMENTS. (A) THE COMMISSIONER SHALL ESTABLISH A MECH- ANISM BY WHICH A QUALIFIED TAXPAYER WHO HAS ACQUIRED A NEW PRIMARY RESI- DENCE BETWEEN JANUARY FIRST AND JULY FIRST OF THE TAXABLE YEAR, INCLU- SIVE, MAY APPLY FOR AN ADVANCE PAYMENT OF THE CREDIT AUTHORIZED BY THIS SECTION, PROVIDED THAT: (I) ANY SUCH APPLICATION MUST BE SUBMITTED TO THE COMMISSIONER BY THE FIRST DAY OF JULY OF THE TAXABLE YEAR, OR SUCH LATER DATE AS MAY BE PRESCRIBED BY THE COMMISSIONER, AND (II) A QUALIFIED TAXPAYER WHO FAILS TO APPLY FOR AN ADVANCE PAYMENT OF SUCH CREDIT IN A TIMELY MANNER MAY REQUEST AND RECEIVE SUCH CREDIT IN THE MANNER OTHERWISE PROVIDED BY THIS SECTION. (B) ON OR BEFORE SEPTEMBER FIFTEENTH OF EACH YEAR, OR AS SOON THERE- AFTER AS PRACTICABLE, THE COMMISSIONER SHALL DETERMINE THE ELIGIBILITY OF TAXPAYERS FOR THIS CREDIT UTILIZING THE INFORMATION AVAILABLE TO HIM OR HER. FOR THOSE TAXPAYERS WHOM THE COMMISSIONER HAS DETERMINED ELIGI- BLE FOR THIS CREDIT, THE COMMISSIONER SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE, FOUR OR SIX OF THIS SUBSECTION, WHICHEVER IS APPLICABLE. SUCH PAYMENT SHALL BE ISSUED BY SEPTEMBER THIR- TIETH OF THE YEAR THE CREDIT IS ALLOWED, OR AS SOON THEREAFTER AS IS PRACTICABLE. A TAXPAYER WHO HAS FAILED TO RECEIVE AN ADVANCE PAYMENT THAT HE OR SHE BELIEVES WAS DUE TO HIM OR HER, OR WHO HAS RECEIVED AN ADVANCE PAYMENT THAT HE OR SHE BELIEVES IS LESS THAN THE AMOUNT THAT WAS DUE TO HIM OR HER, MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY IN A MANNER PRESCRIBED BY THE COMMISSIONER. (C) AN ADVANCE PAYMENT OF CREDIT PROVIDED PURSUANT TO THIS SUBSECTION THAT EXCEEDS THE TAXPAYER'S QUALIFYING TAXES FOR THAT TAXABLE YEAR SHALL BE ADDED BACK AS TAX ON THE INCOME TAX RETURN FOR THAT TAXABLE YEAR. (D) IF THE COMMISSIONER DETERMINES AFTER ISSUING AN ADVANCE PAYMENT THAT IT WAS ISSUED IN AN EXCESSIVE AMOUNT OR TO AN INELIGIBLE OR INCOR- RECT PARTY, THE COMMISSIONER SHALL BE EMPOWERED TO UTILIZE ANY OF THE PROCEDURES FOR COLLECTION, LEVY AND LIEN OF PERSONAL INCOME TAX SET FORTH IN THIS ARTICLE, ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN S. 6409--C 11 A. 9009--C THE PROVISIONS OF THIS ARTICLE, AND ANY OTHER LAW AS MAY BE APPLICABLE, TO RECOUP THE IMPROPERLY ISSUED AMOUNT. (11) ADMINISTRATION. THE PROVISIONS OF THIS ARTICLE, INCLUDING THE PROVISIONS OF SECTIONS SIX HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, AND SIX HUNDRED FIFTY-NINE OF THIS ARTICLE AND THE PROVISIONS OF PART SIX OF THIS ARTICLE RELATING TO PROCEDURE AND ADMINISTRATION, INCLUDING THE JUDICIAL REVIEW OF THE DECISIONS OF THE COMMISSIONER, EXCEPT SO MUCH OF SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE THAT PERMITS A CLAIM FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR IN PARA- GRAPH NINE OF THIS SUBSECTION AND EXCEPT SECTIONS SIX HUNDRED FIFTY-SEV- EN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF THIS ARTICLE, SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN INCORPORATED IN FULL INTO THIS SUBSECTION AND HAD EXPRESSLY REFERRED TO THE CREDIT ALLOWED OR RETURNS FILED UNDER THIS SUBSECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO THIS SUBSECTION. AS USED IN SUCH SECTIONS AND SUCH PART, THE TERM "TAXPAYER" SHALL INCLUDE A QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE, WHERE A QUALIFIED TAXPAYER HAS PROTESTED THE DENIAL OF A CLAIM FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO FILE A PETITION FOR REDETERMINATION OF A DEFICIENCY OR FOR REFUND HAS NOT EXPIRED, HE OR SHE SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET BY THE COMMISSIONER, RECEIVE SUCH INFORMATION (A) THAT IS CONTAINED IN ANY RETURN FILED UNDER THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, AND (B) THAT THE COMMISSIONER FINDS IS RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH CLAIM WAS PROPERLY DENIED. (12) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDER- AL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS SUBSECTION. S 7. The opening paragraph of subparagraph (a) of paragraph 2 of subsection (n-1) of section 606 of the tax law, as added by section 1 of subpart B of part C of chapter 20 of the laws of 2015, is amended to read as follows: To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving EITHER the STAR exemption authorized by section four hundred twenty-five of the real property tax law OR THE SCHOOL TAX RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION, and (iii) had qualified gross income no greater than two hundred seven- ty-five thousand dollars. Provided, however, that no credit shall be allowed if any of the following apply: S 8. This act shall take effect immediately, provided, however, that sections six and seven of this act shall apply to taxable years begin- ning on or after January 1, 2016. PART B Intentionally Omitted S. 6409--C 12 A. 9009--C PART C Intentionally Omitted PART D Section 1. Subdivision 6 of section 425 of the real property tax law is amended by adding a new paragraph (a-2) to read as follows: (A-2) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A RENEWAL APPLICATION FOR THE "ENHANCED" STAR EXEMPTION AUTHORIZED BY SUBDIVISION FOUR OF THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT- ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE COMMISSIONER SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO SUCH OWNER AND THE ASSESSOR. IF THE DETERMINATION STATES THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA- TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING- LY. S 2. Section 467 of the real property tax law is amended by adding a new subdivision 8-a to read as follows: 8-A. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT A LOCAL LAW PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION IS FURTHER AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL APPLICA- TION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON OR BEFORE THE TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF HE OR SHE IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL MAIL NOTICE OF HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI- NATION STATES THAT THE ASSESSOR HAS GRANTED THE EXEMPTION, HE OR SHE SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT S. 6409--C 13 A. 9009--C ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED, THE FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI- CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY. S 3. This act shall take effect on the sixtieth day after it shall have become a law. PART E Section 1. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU- LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU- SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A RESI- DENT INDIVIDUAL OF THE STATE WHO IS A RESIDENT OF A CITY WITH A POPULATION OVER ONE MILLION, AS PROVIDED BELOW. THE CREDIT SHALL BE ALLOWED AGAINST THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, 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 WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO CREDIT SHALL BE GRANTED TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (2) THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED BASED UPON THE TAXPAYER'S INCOME AS DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. FOR THE PURPOSES OF THIS PARAGRAPH, ANY TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITH INCOME OF MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A CREDIT. (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. (B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS. (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA- BLE YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT, THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE. S 2. Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax law, paragraph 1 as amended by section 3 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 1 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 4 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven, AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a S. 6409--C 14 A. 9009--C certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this subsection, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For the purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of this chapter.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 3. Paragraphs 1 and 2 of subsection (c) of section 11-1706 of the administrative code of the city of New York, paragraph 1 as amended by section 6 of part A of chapter 56 of the laws of 1998, paragraph 2 as amended by section 2 of part R of chapter 57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part M of chapter 57 of the laws of 2009, are amended to read as follows: (1) For taxable years beginning after nineteen hundred ninety-seven AND ENDING BEFORE TWO THOUSAND SIXTEEN, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without S. 6409--C 15 A. 9009--C interest, the amount of such excess. For purposes of this [subdivision] SUBSECTION, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereaft- er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou- sand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the near- est multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this [subdivision] SUBSECTION, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter. [For purposes of this paragraph, the "inflation factor" shall be determined in accordance with the provisions set forth in subdivision fifteen of section one hundred seventy-eight of the tax law.] (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 [and after]- 2015 $125 (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 [and after]- 2015 $62.50 S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. PART F Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 16 to read as follows: (16) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER FINDS THAT A PROPERTY OWNER WAS ELIGIBLE FOR THE STAR EXEMPTION AUTHORIZED BY THIS SECTION ON AN ASSESSMENT ROLL, BUT THE EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE PROPERTY OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY OWNER OR HIS OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION AND FINANCE IS AUTHORIZED TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT S. 6409--C 16 A. 9009--C THE STAR EXEMPTION WOULD HAVE YIELDED IF THE STAR EXEMPTION HAD BEEN TAKEN INTO ACCOUNT IN THE CALCULATION OF THAT TAXPAYER'S SCHOOL TAX BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER- TY OWNER NOR HIS OR HER AGENT SHALL BE ENTITLED TO A REFUND OF THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE ERROR. S 2. This act shall take effect immediately. PART G Section 1. Intentionally omitted. S 2. Intentionally omitted. S 3. Intentionally omitted. S 4. Intentionally omitted. S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 1 of part H of chapter 59 of the laws of 2013, is amended to read as follows: S 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law and shall expire and be deemed repealed December 31, [2016] 2019, provided however that the amendments to paragraph 4 of subdivision (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, [2017] 2020 but only if the commission- er of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual S. 6409--C 17 A. 9009--C taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, [2016] 2019. S 6. Intentionally omitted. S 7. Intentionally omitted. S 8. This act shall take effect immediately. PART H Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part P of chapter 59 of the laws of 2014, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [sixty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [seventy-two] EIGHTY million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 3. Subdivision 4 of section 22 of the public housing law as amended by section two of this act is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita- tion provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [eighty-eight] NINETY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. S. 6409--C 18 A. 9009--C S 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2017; section three of this act shall take effect April 1, 2018; section four of this act shall take effect April 1, 2019 and section five of this act shall take effect April 1, 2020. PART I Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army S. 6409--C 19 A. 9009--C national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [seventeen] NINETEEN, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [sixteen] EIGHTEEN; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S 4. This act shall take effect immediately. PART J Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) A taxpayer which is a qualified commercial production company, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predominantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursuant to S. 6409--C 20 A. 9009--C this section shall apply to taxable years beginning before January first, two thousand [seventeen] NINETEEN. S 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Expiration of credit. The credit allowed under this subdivision shall not be applicable to taxable years beginning on or after [December thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN. S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as amended by section 4 of part O of chapter 59 of the laws of 2014, is amended to read as follows: (1) Allowance of credit. A taxpayer that is eligible pursuant to the provisions of section twenty-eight of this chapter shall be allowed a credit to be computed as provided in such section against the tax imposed by this article. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thou- sand [seventeen] NINETEEN. S 4. This act shall take effect immediately. PART K Section 1. Section 5 of chapter 604 of the laws of 2011, amending the tax law relating to the credit for companies who provide transportation to people with disabilities, is amended to read as follows: S 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; [and] provided further that this act shall apply to all tax years commencing on or after January 1, 2011; AND PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL REMAIN IN EFFECT UNTIL DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL BE DEEMED REPEALED. S 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year 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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. THE TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. S 3. This act shall take effect immediately. PART L Section 1. Section 2 of part I of chapter 58 of the laws of 2006, relating to providing an enhanced earned income tax credit, as amended by section 1 of part G of chapter 59 of the laws of 2014, is amended to read as follows: S. 6409--C 21 A. 9009--C S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 [and before January 1, 2017]. S 2. This act shall take effect immediately. PART M Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part B of chapter 61 of the laws of 2011, is amended to read as follows: S 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, [2015] 2019; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2015; provided, however that notwithstanding the provisions of article 5 of the general construction law, the provisions of section 25, paragraph 11 of subsection (c) of section 683, subsections (p), (p-1), (x), (y), (z), (aa) and (bb) of section 685, paragraph 11 of subsection (c) of section 1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085 of the tax law, and section 11 of Part N of chapter 61 of the laws of 2005, are hereby revived and shall continue in full force and effect as such provisions existed on July 1, 2015. PART N Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot S. 6409--C 22 A. 9009--C water production for residential purposes within this state purchased before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as amended by chapter 193 of the laws of 2012, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheat, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thousand seven and on or after January first, two thousand eight and before January first, two thousand [seventeen] TWENTY. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheat, not to exceed twenty cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER, THAT ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER GALLON OF BIOHEAT. S 3. This act shall take effect immediately. PART O Section 1. Section 359 of the economic development law, as amended by section 3 of part C of chapter 68 of the laws of 2013, is amended to read as follows: S 359. Cap on tax credit. The total amount of tax credits listed on certificates of tax credit issued by the commissioner for any taxable year may not exceed the limitations set forth in this section. One-half of any amount of tax credits not awarded for a particular taxable year IN YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR may be used by the commissioner to award tax credits in another taxable year. Credit components in the aggregate With respect to taxable shall not exceed: years beginning in: $ 50 million 2011 $ 100 million 2012 $ 150 million 2013 $ 200 million 2014 $ 250 million 2015 $ [200] 183 million 2016 $ [200] 183 million 2017 $ [200] 183 million 2018 $ [200] 183 million 2019 $ [200] 183 million 2020 $ [200] 183 million 2021 $ [150] 133 million 2022 $ [100] 83 million 2023 $ [50] 36 million 2024 Twenty-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision four of section three S. 6409--C 23 A. 9009--C hundred fifty-three of this article and seventy-five percent of tax credits shall be allocated to businesses accepted into the program under subdivision three of section three hundred fifty-three of this article. Provided, however, if by September thirtieth of a calendar year, the department has not allocated the full amount of credits available in that year to either: (i) businesses accepted into the program under subdivision four of section three hundred fifty-three of this article or (ii) businesses accepted into the program under subdivision three of section three hundred fifty-three of this article, the commissioner may allocate any remaining tax credits to businesses referenced in [para- graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided, however, that under no circumstances may the AGGREGATE statutory cap FOR ALL PROGRAM YEARS be exceeded. ONE HUNDRED PERCENT OF THE UNAWARDED AMOUNTS REMAINING AT THE END OF TWO THOUSAND TWENTY-FOUR MAY BE ALLO- CATED IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT LIMITATION ON ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO THOUSAND ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED- ITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN. S 2. Subdivision 5 of section 354 of the economic development law, as amended by section 2 of part C of chapter 68 of the laws of 2013, is amended to read as follows: 5. A participant may claim tax benefits commencing in the first taxa- ble year that the business enterprise receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later. A participant may claim such benefits for the next nine consecutive taxable years, provided that the participant demonstrates to the department that it continues to satisfy the eligi- bility criteria specified in section three hundred fifty-three of this article and subdivision two of this section in each of those taxable years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN. If, in any given year, a participant who has satisfied the eligibility criteria specified in section three hundred fifty-three of this article realizes job creation less than the estimated amount, the credit shall be reduced by the proportion of actual job creation to the estimated amount, provided the proportion is at least seventy-five percent of the jobs estimated. S 3. Subdivision (b) of section 31 of the tax law, as added by section 7 of part G of chapter 61 of the laws of 2011, is amended to read as follows: (b) To be eligible for the excelsior jobs program credit, the taxpayer shall have been issued a "certificate of tax credit" by the department of economic development pursuant to subdivision four of section three hundred fifty-four of the economic development law, which certificate shall set forth the amount of each credit component that may be claimed for the taxable year. A taxpayer may claim such credit for ten consec- utive taxable years commencing in the first taxable year that the taxpayer receives a certificate of tax credit or the first taxable year listed on its preliminary schedule of benefits, whichever is later, PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN. The taxpayer shall be allowed to claim only the amount listed on the certificate of tax credit for that taxable year. Such certificate must be attached to the taxpayer's return. No cost or expense paid or incurred by the taxpayer shall be the basis for more than one component of this credit or any S. 6409--C 24 A. 9009--C other tax credit, except as provided in section three hundred fifty-five of the economic development law. S 4. This act shall take effect immediately. PART P Section 1. Subdivision (c) of section 24 of the tax law, as added by section 1 of part P of chapter 60 of the laws of 2004, is amended to read as follows: (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) article 9-A: section [210] 210-B: subdivision [36] 20. (2) article 22: section 606: subsection (gg). S 1-a. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 3 of part B of chapter 59 of the laws of 2013, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand nineteen provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this arti- cle in each year starting in two thousand fifteen through two thousand nineteen. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits avail- able from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allo- cation in the empire state film tax credit pursuant to this section, subdivision [thirty-six] TWENTY of section two hundred [ten] TEN-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unallocated film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision [forty-one] THIRTY-TWO of section two hundred [ten] TEN-B and subsection [(gg)] (QQ) of section six hundred six of this chapter. The governor's office for motion picture and television development must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is S. 6409--C 25 A. 9009--C claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, are amended to read as follows: (a) A taxpayer that is an eligible employer or an owner of an eligible employer as defined in subdivision (b) of this section shall be eligible for a credit against the tax imposed under article nine, nine-A, twen- ty-two, [thirty-two] or thirty-three of this article, pursuant to the provisions referenced in subdivision (e) of this section. (2) Article 9-A: Section [210] 210-B, subdivision [46] 40. (4) [Article 32: Section 1456, subsection (z). (5)] Article 33: Section 1511, subdivision (cc). S 3. Paragraph (e) of subdivision 1 of section 209 of the tax law, as added by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (e) At the end of each year, the commissioner shall review the cumula- tive percentage change in the consumer price index. The commissioner shall adjust the receipt thresholds set forth in this subdivision if the consumer price index has changed by ten percent or more since January first, two thousand fifteen, or since the date that the thresholds were last adjusted under this subdivision. The thresholds shall be adjusted to reflect that cumulative percentage change in the consumer price index. The adjusted thresholds shall be rounded to the nearest one thou- sand dollars. As used in this paragraph, "consumer price index" means the consumer price index for all urban consumers (CPI-U) available [form] FROM the bureau of labor statistics of the United States depart- ment of labor. Any adjustment shall apply to tax periods that begin after the adjustment is made. S 4. The opening paragraph of paragraph (a) of subdivision 5 of section 210-A of the tax law, as amended by section 23 of part T of chapter 59 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal revenue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of the clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision five of S. 6409--C 26 A. 9009--C section two hundred eight of this article shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 5. Paragraph (c) of subdivision 7 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) Average number of individuals employed full-time. For the purposes of this subdivision, average number of individuals employed full-time shall be computed by adding the number of such individuals employed by the taxpayer at the end of each quarter during each taxable year or other applicable period and dividing the sum so obtained by the number of such quarters occurring within such taxable year or other applicable period; provided however, except that in computing base year employment, there shall be excluded therefrom any employee with respect to whom a credit provided for under subdivision [six of this section is] NINETEEN OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed for the taxable year. S 6. Paragraph (a) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Application of credit. A taxpayer shall be allowed a credit, to be credited against the tax imposed by this article, equal to the amount of the special additional mortgage recording tax paid by the taxpayer pursuant to the provisions of subdivision one-a of section two hundred fifty-three of this chapter [or] ON mortgages recorded. Provided, howev- er, no credit shall be allowed with respect to a mortgage of real prop- erty principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the metropolitan commuter transportation area. Provided further, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in the county of Erie. S 7. Subdivision 45 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 45. Order of credits. [(a)] Credits allowable under this article which cannot be carried over and which are not refundable shall be deducted first. [The credit allowable under subdivision six of this section shall be deducted immediately after the deduction of all credits allowable under this article which cannot be carried over and which are not refundable, whether or not a portion of such credit is refundable.] Credits allowable under this article which can be carried over, and carryovers of such credits, shall be deducted next [after the deduction of the credit allowable under subdivision six of this section], and among such credits, those whose carryover is of limited duration shall S. 6409--C 27 A. 9009--C be deducted before those whose carryover is of unlimited duration. Cred- its allowable under this article which are refundable [(other than the credit allowable under subdivision six of this section)] shall be deducted last. S 8. Paragraph (a) of subdivision 3 of section 210-C of the tax law, as added by section 18 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) Subject to the provisions of paragraph (c) of subdivision two of this section, a taxpayer may elect to treat as its combined group all corporations that meet the ownership requirements described in paragraph (a) of subdivision two of this section (such corporations collectively referred to in this subdivision as the "commonly owned group"). If that election is made, the commonly owned group shall calculate the combined business income, combined capital, and fixed dollar minimum bases of all members of the group in accordance with [paragraph] SUBDIVISION four of this [subdivision] SECTION, whether or not that business income or busi- ness capital is from a single unitary business. S 9. Paragraph I of subdivision 1 of section 11-604 of the administra- tive code of the city of New York, as added by chapter 491 of the laws of 2007, is amended to read as follows: I. Notwithstanding any provision of this subdivision to the contrary, for taxable years beginning on or after January first, two thousand seven for any corporation that: (a) has a business allocation percentage for the taxable year, as determined under paragraph (a) of subdivision three of this section, of one hundred percent; (b) has no investment capital or income at any time during the taxable year; (c) has no subsidiary capital or income at any time during the taxable year; and (d) has gross income, as defined in section sixty-one of the internal revenue code, less than two hundred fifty thousand dollars for the taxa- ble year: the tax imposed by subdivision one of section 11-603 of this subchap- ter shall be the greater of the tax on entire net income computed under clause one of subparagraph (a) of paragraph E of this subdivision and the fixed dollar minimum tax specified in clause four of subparagraph (a) of paragraph E of this subdivision. For purposes of this paragraph, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, any corporation for which an election under subsection (a) of section six hundred sixty of the tax law is not in effect for the taxable year may elect to treat as entire net income the sum of: (i) entire net income as determined under section two hundred eight of the tax law; and (ii) any deductions taken for the taxable year in computing federal taxable income for New York city taxes paid or accrued under this chap- ter. S 10. Subdivision 2 of section 11-651 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 2. Each reference in THE TAX LAW OR this code to subchapters two or three of this chapter, or any of the provisions thereof, shall be deemed a reference also to this subchapter, and any of the applicable provisions thereof, where appropriate and with all necessary modifica- tions. S. 6409--C 28 A. 9009--C S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) The term "investment capital" means investments in stocks that: (i) satisfy the definition of a capital asset under section 1221 of the internal revenue code at all times the taxpayer owned such stocks during the taxable year; (ii) are held by the taxpayer for investment for more than one year; (iii) the dispositions of which are, or would be, treated by the taxpayer as generating long-term capital gains or losses under the internal revenue code; (iv) for stocks acquired on or after January first, two thousand fifteen, at any time after the close of the day in which they are acquired, have never been held for sale to customers in the regular course of business; and (v) before the close of the day on which the stock was acquired, are clearly identified in the taxpayer's records as stock held for investment in the same manner as required under section 1236(a)(1) of the internal revenue code for the stock of a dealer in securities to be eligible for capital gain treatment (whether or not the taxpayer is a dealer of securities subject to section 1236), provided, however, that for stock acquired prior to October first, two thousand fifteen that was not subject to section 1236(a) of the internal revenue code, such identification in the taxpayer's records must occur before October first, two thousand fifteen. Stock in a corporation that is conducting a unitary business with the taxpayer, stock in a corpo- ration that is included in a combined report with the taxpayer pursuant to the commonly owned group election in subdivision three of section 11-654.3 of this subchapter, and stock [used] ISSUED by the taxpayer shall not constitute investment capital. For purposes of this subdivi- sion, if the taxpayer owns or controls, directly or indirectly, less than twenty percent of the voting power of the stock of a corporation, that corporation will be presumed to be conducting a business that is not unitary with the business of the taxpayer. S 12. Subparagraph 2 of paragraph (a) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (2) The amount determined in this subparagraph is the product of (i) the excess of (A) the tax computed under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, without allowance of any credits allowed by this section, over (B) the tax so computed, determined as if the corporation had no such distributive share or guar- anteed payments with respect to the unincorporated business, and (ii) a fraction, the numerator of which is four and the denominator of which is eight and eighty-five one hundredths, [provided however,] EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA- GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denomina- tor shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year; [and,] provided[, however,] that the amounts computed in subclauses (A) and (B) of clause (i) of this subparagraph shall be computed with the following modifications: (A) such amounts shall be computed without taking into account any carryforward or carryback by the partner of a net operating loss or a prior net operation loss conversion subtraction; (B) if, prior to taking into account any distributive share or guaran- teed payments from any unincorporated business or any net operating loss S. 6409--C 29 A. 9009--C carryforward or carryback, the entire net income of the partner is less than zero, such entire net income shall be treated as zero; and (C) if such partner's net total distributive share of income, gain, loss and deductions of, and guaranteed payments from, any unincorporated business is less than zero, such net total shall be treated as zero. The amount determined in this subparagraph shall not be less than zero. S 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (1) Notwithstanding anything to the contrary in paragraph (a) of this subdivision, in the case of a corporation that, before the application of this subdivision or any other credit allowed by this section, is liable for the tax on business income under clause (i) of subparagraph one of paragraph (e) of subdivision one of this section, the credit or the sum of the credits that may be taken by such corporation for a taxa- ble year under this subdivision with respect to an unincorporated busi- ness or unincorporated businesses in which it is a partner shall not exceed the tax so computed, without allowance of any credits allowed by this section, multiplied by a fraction the numerator of which is four and the denominator of which is eight and eighty-five one-hundredths [provided, however], EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI- VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND in the case of a taxpayer that is subject to paragraph (j) or (k) of subdivision one of this section, such denominator shall be the rate of tax as determined by such paragraph (j) or (k) for the taxable year. If the credit allowed under this subdivision or the sum of such credits exceeds the product of such tax and such fraction, the amount of the excess may be carried forward, in order, to each of the seven immediately succeeding taxable years and, to the extent not previously taken, shall be allowed as a credit in each of such years. In applying the provisions of the preced- ing sentence, the credit determined for the taxable year under paragraph (a) of this subdivision shall be taken before taking any credit carry- forward pursuant to this paragraph and the credit carryforward attribut- able to the earliest taxable year shall be taken before taking a credit carryforward attributable to a subsequent taxable year. S 14. Subparagraph 8 of paragraph (a) of subdivision 21 of section 11-654 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (8) The credit allowed under this subdivision shall only be allowed for taxable years beginning before January first, two thousand [sixteen] NINETEEN. S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin- istrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (c) Receipts from sales of tangible personal property and electricity that are traded as commodities as the term "commodity" is defined in section four hundred seventy-five of the internal revenue code, shall be included in the receipts fraction in accordance with clause [(i)] (IX) of subparagraph two of paragraph (a) of subdivision five of this section. S 16. The opening paragraph of paragraph (a) of subdivision 5 of section 11-654.2 of the administrative code of the city of New York, as S. 6409--C 30 A. 9009--C added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: A financial instrument is a "nonqualified financial instrument" if it is not a qualified financial instrument. A qualified financial instru- ment means a financial instrument that is of a type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph and that has been marked to market in the taxable year by the taxpayer under section 475 or section 1256 of the internal reven- ue code. Further, if the taxpayer has in the taxable year marked to market a financial instrument of the type described in any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two of this paragraph, then any financial instrument within that type described in the above specified clause or clauses that has not been marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code is a qualified financial instrument in the taxable year. Notwithstanding the two preceding sentences, (i) a loan secured by real property shall not be a qualified financial instrument, (ii) if the only loans that are marked to market by the taxpayer under section 475 or section 1256 of the internal revenue code are loans secured by real property, then no loans shall be qualified financial instruments, [and] (iii) stock that is investment capital as defined in paragraph (a) of subdivision [4] FOUR of section 11-652 of this subchapter shall not be a qualified financial instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE SHALL NOT CONSTITUTE A QUALIFIED FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION FIVE-A. If a corporation is included in a combined report, the definition of qualified financial instrument shall be determined on a combined basis. S 17. This act shall take effect immediately; provided however that sections one, one-a, two, three, four, five, six, seven and eight of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect, and sections nine, ten, eleven, twelve, thirteen, fourteen, fifteen and sixteen of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part D of chapter 60 of the laws of 2015, took effect. PART Q Section 1. Subdivision 5 of section 183-a of the tax law, as amended by section 61 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. The report covering the tax surcharge which must be calculated pursuant to this section based upon the tax reportable on the report due by March fifteenth of any year under section one hundred eighty-three of this article, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR UNDER SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, shall be filed on or before March fifteenth of the year next succeeding such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE YEAR NEXT SUCCEEDING SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN. An extension pursuant to section one hundred nine- S. 6409--C 31 A. 9009--C ty-three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form as said commissioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this article, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer's report for the preceding year, if such preceding year consisted of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpay- er, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to section one hundred eighty-three of this article are applicable to the tax surcharge imposed by this section except for section one hundred ninety-two of this arti- cle. S 2. Subdivision 4 of section 186-a of the tax law, as amended by chapter 536 of the laws of 1998, is amended to read as follows: 4. Every utility subject to tax hereunder shall file, on or before March fifteenth of each year, a return for the year ended on the preced- ing December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on June first, nineteen hundred seventy-six, AND SHALL FILE, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR- TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, including any period for which the tax imposed hereby or by any amendment hereof is effective, each of which returns shall state the gross income or gross operating income for the period covered by each such return. Returns shall be filed with the commissioner of taxation and finance on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any utility to file an annual return, which shall contain any data spec- ified by the commissioner, regardless of whether the utility is subject to tax under this section; and the commissioner may require a landlord selling to a tenant gas, electric, steam, water or refrigeration or furnishing gas, electric, steam, water or refrigerator service, where the same has been subjected to tax under this section on the sale to such landlord, to file, on or before the fifteenth day of March of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an information return for the year ended on the preceding December thir- ty-first, covering such year in such form and containing such data as the commissioner may specify. Every return shall have annexed thereto a certification by the head of the utility making the same, or of the S. 6409--C 32 A. 9009--C owner or of a co-partner thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 3. Subdivision 6 of section 186-e of the tax law, as added by chap- ter 2 of the laws of 1995, is amended to read as follows: 6. Returns. Every provider of telecommunication services subject to tax under this section shall file, on or before March fifteenth of each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, a return for the year ended on the preceding December thirty-first, and pay the tax due, which return shall state the gross receipts for the period covered by each such return and the resale exclusions during such period. Returns shall be filed with the commissioner on a form to be furnished by the commissioner for such purpose and shall contain such other data, information or matter as the commissioner may require to be included therein. Notwithstanding the foregoing provisions of this subdivision, the commissioner may require any provider of telecommuni- cation services to file an annual return, which shall contain any data specified by the commissioner, regardless of whether such provider is subject to tax under this section. Every return shall have annexed ther- eto a certification by the head of the provider of telecommunication services making the same, or of the owner or of a partner or member thereof, or of a principal officer of the corporation, if such business be conducted by a corporation, to the effect that the statements contained therein are true. S 4. Subdivision 1 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three or one hundred eighty-five of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, make a written report to the [tax commission] COMMISSIONER of its condition at the close of its business on the preceding December thirty-first, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year. S 5. Subdivision 1 of section 192 of the tax law, as amended by section 26 of part S of chapter 59 of the laws of 2014, is amended to read as follows: 1. Corporations paying franchise tax. Every corporation, association or joint-stock company liable to pay a tax under section one hundred eighty-three of this chapter shall, on or before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, make a written report to the [tax commission] COMMISSIONER of its condition at the close of its business on the preceding December thirty-first, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend paid by it during the year ending with such day, the entire amount of the capital of such S. 6409--C 33 A. 9009--C corporation, and the capital employed by it in this state during such year. S 6. Subdivision 2 of section 192 of the tax law, as amended by chap- ter 96 of the laws of 1976, is amended to read as follows: 2. Transportation and transmission corporations. Every transportation or transmission corporation, joint-stock company or association liable to pay an additional franchise tax under section one hundred eighty-four of this chapter, shall also, on or before March fifteenth of each year, make a written report to the [tax commission] COMMISSIONER of the amount of its gross earnings subject to the tax imposed by said section for the year ended on the preceding December thirty-first, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the year ended on December thirty-first, nineteen hundred seventy-six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE COMMISSIONER OF THE AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. Any such corporation, joint-stock company or association which ceases to be subject to the tax imposed by section one hundred eighty-four of this chapter by reason of a liquidation, dissolution, merger or consolidation with any other corporation, or any other cause, shall, on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require, make a written report to the [tax commission] COMMIS- SIONER of the amount of its gross earnings subject to the tax imposed by section one hundred eighty-four of this chapter for any period for which no report was theretofore filed. Any corporation, joint-stock company or association subject to a tax upon dividends under said section one hundred eighty-four of this chapter shall also include in its report under this subdivision required to be filed a statement of the author- ized capital of the company, the amount of capital stock issued, and the amount of dividends of every nature paid during the year ended on the preceding December thirty-first. As to tax payers subject to such tax upon dividends under said section one hundred eighty-four of this chap- ter, the year ended on December thirty-first, nineteen hundred seventy- six shall be deemed, for the purposes of this subdivision, to have commenced on July first, nineteen hundred seventy-six. S 7. Paragraph (a) of subdivision 1 of section 197-b of the tax law, as amended by section 1 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) For taxable years beginning on or after January first, nineteen hundred seventy-seven, every taxpayer subject to tax under section [one hundred eighty-two, one hundred eighty-two-a, former section one hundred eighty-two-b,] one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article, must pay in each year an amount equal to (i) twenty-five percent of the tax imposed under each of such sections for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax imposed under any of these sections for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one hundred thousand dollars. If the SECOND preceding year's tax under section one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section one hundred eighty-four-a or one hundred S. 6409--C 34 A. 9009--C eighty-six-c of this article, respectively, the taxpayer must also pay in each such year an amount equal to (i) twenty-five percent of the tax surcharge imposed under such section for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed under that section for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one hundred thousand dollars. The amount or amounts must be paid with the return or report required to be filed with respect to the tax or tax surcharge for the preceding taxable year or with an applica- tion for extension of the time for filing the return or report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN. THE AMOUNT OR AMOUNTS THAT MUST BE PAID WITH RESPECT TO THE TAX OR TAX SURCHARGE FOR THE SECOND PRECEDING YEAR MUST BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND SIXTEEN. S 7-a. Subdivision 6 of section 197-b of the tax law, as amended by section 9 of part Y of chapter 63 of the laws of 2000, is amended to read as follows: 6. As used in this section, "the SECOND preceding year's tax" means the tax imposed upon the taxpayer by section [one hundred eighty-two, former section one hundred eighty-two-b,] one hundred eighty-four, one hundred eighty-six-a or one hundred eighty-six-e of this article for the SECOND preceding taxable year. S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in this state in a corporate or organized capacity, or of maintaining an office in this state, or of deriving receipts from activity in this state, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a franchise tax, upon the basis of its business income base, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report which shall be filed, except as here- inafter provided, on or before the fifteenth day of March next succeed- ing the close of each such year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, or, in the case of a corporation which reports on the basis of a fiscal year, with- in two and one-half months after the close of such fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided. S 9. Subdivision 1 of section 211 of the tax law, as amended by chap- ter 436 of the laws of 1974, the opening paragraph as amended by chapter 190 of the laws of 1990 and the second undesignated paragraph as amended by chapter 542 of the laws of 1985, is amended to read as follows: 1. Every taxpayer[, as well as every foreign corporation having an employee, including any officer, within the state,] shall annually on or before March fifteenth, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY S. 6409--C 35 A. 9009--C FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a report in a form prescribed by [it] THE COMMISSIONER (except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF ITS FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, and except, also, that a corporation which is a DISC shall transmit its report on or before the fifteenth day of the ninth month following the close of its calendar or fiscal year), setting forth such information as the [tax commission] COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a report on the date of such cessation or at such other time as the [tax commission] COMMISSIONER may require covering each year or period for which no report was theretofore filed. In the case of a termination year of an S corporation, the S short year and the C short year shall be treated as separate short taxable years, provided, however, the due date of the report for the S short year shall be the same as the due date of the report for the C short year. Every taxpayer shall also transmit such other reports and such facts and information as the [tax commission] COMMISSIONER may require in the administration of this article. The [tax commission] COMMISSIONER may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, such taxpayer files with the [tax commission] COMMISSIONER an application for extension in such form as [said commis- sion] THE COMMISSIONER may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 10. Subdivision (a) of section 213-b of the tax law, as amended by section 2 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV- ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the SECOND preceding year's tax if the SECOND preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the SECOND preceding year's tax if the SECOND preceding year's tax exceeded one hundred thousand dollars. If the SECOND preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the SECOND preceding privilege period, or with an application for extension of the time for filing the report, FOR TAXABLE YEARS S. 6409--C 36 A. 9009--C BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the SECOND preceding year if the SECOND preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the SECOND preceding year if the SECOND preceding year's tax exceeded one hundred thousand dollars. PROVIDED, HOWEVER, THAT EVERY TAXPAYER THAT IS AN S CORPORATION MUST PAY WITH THE REPORT REQUIRED TO BE FILED FOR THE PRECEDING PRIVILEGE PERIOD, OR WITH AN APPLICATION FOR EXTENSION OF THE TIME FOR FILING THE REPORT, AN AMOUNT EQUAL TO (I) TWENTY-FIVE PERCENT OF THE PRECEDING YEAR'S TAX IF THE PRECEDING YEAR'S TAX EXCEEDED ONE THOUSAND DOLLARS BUT WAS EQUAL TO OR LESS THAN ONE HUNDRED THOUSAND DOLLARS, OR (II) FORTY PERCENT OF THE PRECEDING YEAR'S TAX IF THE PRECEDING YEAR'S TAX EXCEEDED ONE HUNDRED THOUSAND DOLLARS. IF THE PRECEDING YEAR'S TAX UNDER SECTION TWO HUNDRED NINE OF THIS ARTICLE EXCEEDED ONE THOUSAND DOLLARS AND SUCH TAXPAYER THAT IS AN S CORPORATION IS SUBJECT TO THE TAX SURCHARGE IMPOSED BY SECTION TWO HUNDRED NINE-B OF THIS ARTICLE, THE TAXPAYER MUST ALSO PAY WITH THE TAX SURCHARGE REPORT REQUIRED TO BE FILED FOR THE PRECEDING PRIVILEGE PERIOD, OR WITH AN APPLICATION FOR EXTENSION OF THE TIME FOR FILING THE REPORT, AN AMOUNT EQUAL TO (I) TWENTY-FIVE PERCENT OF THE TAX SURCHARGE IMPOSED FOR THE PRECEDING YEAR IF THE PRECEDING YEAR'S TAX WAS EQUAL EQUAL TO OR LESS THAN ONE HUNDRED THOUSAND DOLLARS, OR (II) FORTY PERCENT OF THE TAX SURCHARGE IMPOSED FOR THE PRECEDING YEAR IF THE PRECEDING YEAR'S TAX EXCEEDED ONE HUNDRED THOUSAND DOLLARS. S 10-a. The subdivision heading of subdivision (d) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: Application of installments based on the SECOND preceding year's tax.-- S 10-b. The subdivision heading of subdivision (e) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: Interest on certain installments based on the SECOND preceding year's tax.-- S 11. Subdivision (f) of section 213-b of the tax law, as amended by chapter 613 of the laws of 1976, is amended to read as follows: (f) The preceding year's tax AND THE SECOND PRECEDING YEAR'S TAX defined.-- As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section two hundred nine of this [chap- ter] ARTICLE for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount prop- erly estimated pursuant to section two hundred thirteen of this [chap- ter] ARTICLE as the tax imposed upon the taxpayer for such calendar or fiscal year. AS USED IN THIS SECTION, "THE SECOND PRECEDING YEAR'S TAX" MEANS THE TAX IMPOSED UPON THE TAXPAYER BY SECTION TWO HUNDRED NINE OF THIS ARTICLE FOR THE SECOND PRECEDING CALENDAR OR FISCAL YEAR. S 12. Paragraph 1 of subsection (c) of section 658 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Partnerships. Every partnership having a resident partner or having any income derived from New York sources, determined in accord- ance with the applicable rules of section six hundred thirty-one as in S. 6409--C 37 A. 9009--C the case of a nonresident individual, shall make a return for the taxa- ble year setting forth all items of income, gain, loss and deduction and such other pertinent information as the commissioner may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due date for the return of a partnership consisting entirely of nonresident aliens shall be the date prescribed for the filing of its federal partnership return for the taxable year. For purposes of this paragraph, "taxable year" means a year or a period which would be a taxable year of the partner- ship if it were subject to tax under this article. S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658 of the tax law, as amended by section 18 of part U of chapter 61 of the laws of 2011, is amended to read as follows: (A) Every subchapter K limited liability company, every limited liability company that is a disregarded entity for federal income tax purposes, and every partnership which has any income derived from New York sources, determined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall[, within sixty days after the last day of the taxable year,] ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee. The amount of the filing fee is the amount set forth in subparagraph (B) of this paragraph. The minimum filing fee is twenty-five dollars for taxable years beginning in two thousand eight and thereafter. Limited liability companies that are disregarded entities for federal income tax purposes must pay a filing fee of twenty-five dollars for taxable years beginning on or after January first, two thousand eight. S 13-a. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 7 of subpart D of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) If any taxpayer fails to file a declaration of estimated tax under article nine-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such estimated tax, it shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the under- payment rate set by the commissioner pursuant to section one thousand ninety-six of this article, or if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the third month following the close of the taxable year. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of EITHER the preceding year's tax OR THE SECOND PRECEDING YEAR'S TAX, the excess of the amount required to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other installment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety-one percent of the tax shown on the return for the taxable year (or if no return was filed, ninety-one percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety-one percent" each place it appears S. 6409--C 38 A. 9009--C in this subsection, the addition to the tax shall be equal to seventy- five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment other- wise due on or after the termination of existence of the taxpayer. S 14. Subsection (i) of section 1087 of the tax law, as added by chap- ter 188 of the laws of 1964, is amended to read as follows: (i) Prepaid tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment (including any amount paid by the taxpayer as estimated tax for a taxable year) shall be deemed to have been paid by it on the fifteenth day of the third month following the close of the taxable year the income of which is the basis for tax under article nine-a, [nine-b or nine-c,] or on the last day prescribed in article nine for the filing of a final return for such taxable year, or portion thereof, determined in all cases without regard to any extension of time granted the taxpayer, FOR TAXABLE YEARS BEGIN- NING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE NINE-A, OR ON THE LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR SUCH TAXABLE YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 15. Paragraph 1 of subdivision (a) of section 1514 of the tax law, as amended by section 4 of part G-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) Except as otherwise provided in paragraph two of this subdivision, for taxable years beginning on or after January first, nineteen hundred seventy-six, every taxpayer subject to tax under this article must pay in each year an amount equal to (i) twenty-five percent of the tax imposed under this article for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax imposed under this article for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one hundred thousand dollars. If the SECOND preceding year's tax exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section fifteen hundred five-a of this article, the taxpayer must also pay an amount equal to (i) twenty-five percent of the tax surcharge imposed under section fifteen hundred five-a OF THIS ARTICLE for the SECOND preceding taxable year if the SECOND preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the SECOND preceding taxable year if the SECOND preceding year's tax exceeded one hundred thousand dollars. S 15-a. Paragraph 2 of subdivision (a) of section 1514 of the tax law, as added by section 89 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (2) For taxable years beginning on or after January first, nineteen hundred ninety-nine, every taxpayer subject to tax under paragraph one of subdivision (b) of section fifteen hundred ten of this article shall pay in each such year an amount equal to forty percent of the tax imposed under such article for the SECOND preceding taxable year, if such SECOND preceding year's tax exceeded one thousand dollars. If such SECOND preceding year's tax exceeded one thousand dollars and such taxpayer is subject to the tax surcharge imposed by section fifteen hundred five-a of this article, such taxpayer shall also pay an amount S. 6409--C 39 A. 9009--C equal to forty percent of the tax surcharge imposed under section fifteen hundred five-a OF THIS ARTICLE for the SECOND preceding taxable year. S 15-b. Paragraph 3 of subdivision (a) of section 1514 of the tax law, as amended by section 89 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (3) Such amount or amounts described in paragraphs one and two of this subdivision shall be paid with the return required to be filed with respect to such tax or tax surcharge for [such] THE preceding taxable year or with an application for extension of the time for filing such return, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. S 15-c. The paragraph heading of paragraph 1 of subdivision (d) of section 1514 of the tax law, as amended by chapter 166 of the laws of 1991 and such paragraph as designated by section 5 of part L3 of chapter 62 of the laws of 2003, is amended to read as follows: Application of first installments based on SECOND preceding year's tax. S 15-d. The subdivision heading of subdivision (e) of section 1514 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: Interest on certain installments based on the SECOND preceding year's tax. S 16. Subdivision (f) of section 1514 of the tax law, as amended by section 26 of part H3 of chapter 62 of the laws of 2003, is amended to read as follows: (f) The SECOND preceding year's tax defined. As used in this section, "the SECOND preceding year's tax" means, for taxpayers subject to tax under subdivision (b) of section fifteen hundred ten of this article, the taxes imposed upon the taxpayer by sections fifteen hundred one and fifteen hundred ten of this article from the SECOND preceding taxable year or as otherwise determined by subdivision (b) of section fifteen hundred five of this article, and for taxpayers subject to tax under section fifteen hundred two-a of this article, the tax imposed upon the taxpayer by such section fifteen hundred two-a of this article from the SECOND preceding year[, or for purposes of computing the first install- ment of estimated tax when an application has been filed for extension of the time for filing the return required to be filed for such preced- ing taxable year, the amount properly estimated pursuant to paragraph one of subdivision (b) of section fifteen hundred sixteen of this arti- cle as the tax imposed upon the taxpayer for such taxable year]. S 17. Subdivision (a) of section 1515 of the tax law, as added by chapter 649 of the laws of 1974 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows: (a) Every taxpayer and every other foreign and alien insurance corpo- ration having an employee, including any officer, in this state or having an agent or representative in this state, shall annually, on or before the fifteenth day of the third month following the close of its taxable year, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the [tax commission] COMMISSIONER a return in a form prescribed by [it] THE COMMISSIONER setting forth such information as the [tax commission] S. 6409--C 40 A. 9009--C COMMISSIONER may prescribe and every taxpayer which ceases to exercise its franchise or to be subject to the tax imposed by this article shall transmit to the [tax commission] COMMISSIONER a return on the date of such cessation or at such other time as the [tax commission] COMMISSION- ER may require covering each year or period for which no return was theretofore filed. A copy of each return required under this subdivision shall also be transmitted to the superintendent of financial services at or before the times specified for filing such returns with the [tax commission] COMMISSIONER. S 18. Subdivisions (a) and (b) of section 11-514 of the administrative code of the city of New York, subdivision (a) as amended by chapter 183 of the laws of 2009, are amended to read as follows: (a) General. [On or before the fifteenth day of the fourth month following the close of a taxable year, an] AN unincorporated business income tax return shall be made and filed, and the balance of any tax shown on the face of such return, not previously paid as installments of estimated tax, shall be paid, ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN: (1) by or for every unincorporated business, for taxable years begin- ning after nineteen hundred eighty-six but before nineteen hundred nine- ty-seven, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ten thousand dollars, or having any amount of unincorporated business taxable income; (2) by or for every partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unin- corporated business gross income, determined for purposes of this subdi- vision without any deduction for the cost of goods sold or services performed, of more than twenty-five thousand dollars, or having unincor- porated business taxable income of more than fifteen thousand dollars; (3) by or for every unincorporated business other than a partnership, for taxable years beginning after nineteen hundred ninety-six but before two thousand nine, having unincorporated business gross income, deter- mined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than seventy-five thousand dollars, or having unincorporated business taxable income of more than thirty-five thousand dollars; and (4) by or for every unincorporated business, for taxable years begin- ning after two thousand eight, having unincorporated business gross income, determined for purposes of this subdivision without any deduction for the cost of goods sold or services performed, of more than ninety-five thousand dollars. (b) Decedents. The return for any deceased individual shall be made and filed by his or her executor, administrator, or other person charged with his or her property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, the fifteenth day of the fourth month following the close of the twelve- month period [which] THAT began with the first day of such fractional part of the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, THE FIFTEENTH DAY OF THE THIRD MONTH S. 6409--C 41 A. 9009--C FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF THE YEAR. S 19. Subdivision (i) of section 11-527 of the administrative code of the city of New York is amended to read as follows: (i) Prepaid tax. For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment and any amount paid by the taxpayer as estimated tax for a taxable year shall be deemed to have been paid by the taxpayer, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth month following the close of his or her taxable year with respect to which such amount constitutes a credit or payment, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA- BLE YEAR WITH RESPECT TO WHICH SUCH AMOUNT CONSTITUTES A CREDIT OR PAYMENT. S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) For the privilege of doing business, or of employing capital, or of owning or leasing property in the city in a corporate or organized capacity, or of maintaining an office in the city, for all or any part of each of its fiscal or calendar years, every domestic or foreign corporation, except corporations specified in subdivision four of this section, shall annually pay a tax, upon the basis of its business income, or upon such other basis as may be applicable as hereinafter provided, for such fiscal or calendar year or part thereof, on a report [which] THAT shall be filed, except as hereinafter provided, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before the fifteenth day of March next succeeding the close of each such CALEN- DAR year, or, in the case of a taxpayer [which] THAT reports on the basis of a fiscal year, within two and one-half months after the close of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR, and shall be paid as hereinafter provided. S 21. Subdivision 1 of section 11-655 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. Every corporation having an officer, agent or representative within the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, transmit to the commissioner of finance a report, in a form prescribed by the commissioner of finance [(except that a corporation which reports on the basis of a fiscal year shall transmit its report within two and one-half months after the close of its fiscal year)], setting forth such information as the commissioner of finance may prescribe, [and every] EXCEPT THAT A CORPORATION THAT REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND, FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, WITHIN THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR. EVERY taxpayer [which] THAT ceases to do business in the city or to be S. 6409--C 42 A. 9009--C subject to the tax imposed by this subchapter shall transmit to the commissioner of finance a report on the date of such cessation or at such other time as the commissioner of finance may require covering each year or period for which no report was theretofore filed. Every taxpayer shall also transmit such other reports and such facts and information as the commissioner of finance may require in the administration of this subchapter. The commissioner of finance may grant a reasonable extension of time for filing reports whenever good cause exists. An automatic extension of six months for the filing of its annual report shall be allowed any taxpayer if, within the time prescribed by the preceding paragraph, whichever is applicable, such taxpayer files with the commissioner of finance an application for extension in such form as the commissioner of finance may prescribe by regulation and pays on or before the date of such filing the amount properly estimated as its tax. S 22. Subdivision 1 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU- SAND SIXTEEN, EVERY taxpayer subject to the tax imposed by section 11-653 of this subchapter shall pay with the report required to be filed for the preceding privilege period, if any, or with an application for extension of the time and filing such report, an amount equal to twen- ty-five per centum of the preceding year's tax if such preceding year's tax exceeded one thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EVERY TAXPAYER SUBJECT TO THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL PAY ON OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALEN- DAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR AN AMOUNT EQUAL TO TWENTY-FIVE PER CENTUM OF THE SECOND PRECEDING YEAR'S TAX IF THE SECOND PRECEDING YEAR'S TAX EXCEEDED ONE THOUSAND DOLLARS. S 23. Subdivision 6 of section 11-658 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 6. As used in this section, "the preceding year's tax" means the tax imposed upon the taxpayer by section 11-653 of this subchapter for the preceding calendar or fiscal year, or, for purposes of computing the first installment of estimated tax when EITHER THE MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR an application has been filed for extension of the time for filing the report required to be filed for such preceding calendar or fiscal year, the amount properly estimated pursuant to section 11-657 of this subchapter as the tax imposed upon the taxpayer for such calendar or fiscal year. AS USED IN THIS SECTION, "THE SECOND PRECEDING YEAR'S TAX" MEANS THE TAX IMPOSED UPON THE TAXPAYER BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE SECOND PRECEDING CALENDAR OR FISCAL YEAR. S 24. This act shall take effect immediately, provided, however, that sections one and four of this act shall apply to taxable years beginning on or after January 1, 2017 and provided, further, that section five of this act shall take effect on the same date and in the same manner as section 26 of part S of chapter 59 of the laws of 2014 takes effect, and that section five of this act shall apply to taxable years beginning on or after January 1, 2018, and provided, further, that sections seven, seven-a, ten, eleven, thirteen-a, fifteen, fifteen-a, fifteen-c, S. 6409--C 43 A. 9009--C fifteen-d, sixteen, twenty-two and twenty-three of this act shall, to the extent that such sections refer to the second preceding taxable year and the second preceding year's tax, apply to the amount or amounts due to be paid on or after March 15, 2017. PART R Intentionally Omitted PART S Intentionally Omitted PART T Intentionally Omitted PART U Section 1. Section 19 of Part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part V of chapter 59 of the laws of 2014, is amended to read as follows: S 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2016] 2021 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. S 2. This act shall take effect immediately. PART V Section 1. Section 37 of the tax law, as added by chapter 109 of the laws of 2012, subdivision (c) as amended by section 52 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S 37. [Beer] ALCOHOLIC BEVERAGE production credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chap- ter, that is registered as a distributor under article eighteen of this chapter, and that produces sixty million or fewer gallons of beer OR CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT HUNDRED THOU- SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall be allowed a credit against such taxes in the amount specified in subdi- vision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. Provided, however, that no credit shall be allowed for any beer, CIDER, WINE OR LIQUOR produced in excess of S. 6409--C 44 A. 9009--C fifteen million five hundred thousand gallons in the taxable year. If the taxpayer is a partner in a partnership or shareholder of a New York S corporation, then the cap imposed by the preceding sentence shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed that cap. (b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state [on or after April first, two thousand twelve] shall be determined as follows: (1) for the first five hundred thousand gallons of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year, the credit shall equal fourteen cents per gallon; and (2) for each gallon of beer, CIDER, WINE OR LIQUOR produced in this state in the taxable year in excess of five hundred thousand gallons, the credit shall equal four and one-half cents per gallon. (c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article 9-A: Section 210-B, subdivision 39. (2) Article 22: Section 606, subsections (i) and (uu). S 2. Subdivision 39 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 39. [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in para- graph (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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpay- ment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. S 3. Subdivision 3 of section 420 of the tax law, as amended by chap- ter 94 of the laws of 1934, is amended to read as follows: 3. "Alcoholic beverages" mean and include CIDERS, AS DEFINED BY THE ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors. S 4. Section 424 of the tax law is amended by adding a new subdivision 6 to read as follows: 6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE TO A CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING. S 5. Clause (xxxiv) of subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law, as amended by section 68 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (xxxiv) [Beer] ALCOHOLIC BEVERAGE Amount of credit production credit under under subdivision thirty-nine of subsection (uu) section two hundred ten-B S 6. Subsection (uu) of section 606 of the tax law, as added by chap- ter 109 of the laws of 2012, is amended to read as follows: S. 6409--C 45 A. 9009--C (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an 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 7. Subdivision 13 of section 1118 of the tax law, as added by section 2 of part U of chapter 59 of the laws of 2015, is amended to read as follows: (13) In respect to the use of the following items at a tasting held by a licensed [brewery, farm brewery, cider producer, farm cidery, distil- lery or farm distillery] PRODUCER OF ALCOHOLIC BEVERAGES in accordance with the alcoholic beverage control law: (i) the alcoholic beverage or beverages authorized by the alcoholic beverage control law to be furnished at no charge to a customer or prospective customer at such tasting for consumption at such tasting; and (ii) bottles, corks, caps and labels used to package such alcoholic beverages. S 8. This act shall take effect immediately, provided, however, that: sections one, two, five and six of this act shall apply to taxable years beginning on or after January 1, 2016; sections three and four of this act shall apply to taxable periods beginning on or after April 1, 2016; and section seven of this act shall apply to uses occurring on and after June 1, 2016. PART W Intentionally Omitted PART X Section 1. Paragraph 2 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (2) Except as provided in subdivision (r) of section eleven hundred eleven of this part, when occupancy is provided, for a single consider- ation, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this article, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, the entire consideration shall be treated as rent subject to tax under para- graph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated separately from the price of such property, services, amusement charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such rent is reasonable in relation to the value of such property, services, amusement charges or other items, only such separately stated rent will be subject to tax under paragraph one of this subdivision. S 2. Section 1115 of the tax law is amended by adding a new subdivi- sion (kk) to read as follows: (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A ROOM REMARKETER FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED S. 6409--C 46 A. 9009--C THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS- SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL BE ADMINISTERED BY THE COMMISSIONER IN CONFORMITY WITH THE RULES FOR EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE. S 3. Paragraph 4 of subdivision a of section 11-2502 of the adminis- trative code of the city of New York, as amended by section 4 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (4) (i) When occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, the separate sale of which is not subject to tax under this chapter, AND THE RENT PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVI- SION 1 OF THIS SECTION, the entire consideration shall be treated as rent subject to tax under paragraph one of this subdivision; provided, however, that where the amount of the rent for occupancy is stated sepa- rately from the price of such property, services, amusement charges or other items on any sales slip, invoice, receipt, or other statement given the occupant and such rent is reasonable in relation to the value of such property, services, amusement charges, or other items, only such separately stated rent will be subject to tax under this subdivision. (ii) In regard to the collection of tax on occupancies by remarketers, when occupancy is provided, for a single consideration, with property, services, amusement charges, or any other items, whether or not such other items are taxable, the rent portion of the consideration for such sale shall be computed as follows: the total consideration for the sale multiplied by a fraction, the numerator of which shall be the consider- ation paid to the hotel for the occupancy and the denominator of which shall be the consideration paid to the hotel for the occupancy plus the consideration paid to the providers of the other items being sold, or by any other reasonable method pursuant to which the rent portion of consideration would be no less than the computation of rent portion of consideration under subparagraph (i) of this paragraph. Nothing herein shall be construed to subject to tax or exempt from tax any service or property or amusement charge or other items otherwise subject to tax or exempt from tax under this chapter. S 4. Section 11-2502 of the administrative code of the city of New York is amended by adding a new subdivision 1 to read as follows: 1. AN OCCUPANCY THAT AN OPERATOR CONVEYS OR FURNISHES TO A ROOM REMARKETER THAT THE ROOM REMARKETER INTENDS TO CONVEY OR FURNISH, DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS SECTION, PROVIDED THAT SUCH ROOM REMARKETER FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE. THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO THE COMMIS- SIONER OF FINANCE UPON REQUEST. S 5. This act shall take effect immediately and apply to rent paid for occupancies on or after June 1, 2016. PART Y Section 1. The section heading of section 951-a of the tax law, as added by chapter 190 of the laws of 1990, is amended to read as follows: [Definitions] GENERAL PROVISIONS AND DEFINITIONS. S 2. Section 951-a of the tax law is amended by adding a new subsection (f) to read as follows: S. 6409--C 47 A. 9009--C (F) TAX TREATMENT OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI- CILE. NOTWITHSTANDING ANY OTHER PROVISION OF ANY OTHER LAW TO THE CONTRARY, THE MAKING OF A FINANCIAL CONTRIBUTION, GIFT, BEQUEST, DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN ANY AMOUNT OR THE DONATION OR LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING, GIVING OR DONATION OF UNCOMPENSATED TIME, OR ANY COMBINATION OF THE FOREGOING, CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, OR TO A NOT-FOR-PROFIT ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION ONE HUNDRED SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE TIME OF HIS OR HER DEATH. S 3. This act shall take effect immediately. PART Z Section 1. Subdivision 2 of section 89-b of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: 2. The dedicated highway and bridge trust fund shall consist of [two] THREE accounts: (a) the special obligation reserve and payment account; [and] (b) the highway and bridge capital account; AND (C) THE AVIATION PURPOSE ACCOUNT. Moneys in each account shall be kept separate and not commingled with any other moneys in the custody of the comptroller. S 2. Section 89-b of the state finance law is amended by adding a new subdivision 4-a to read as follows: 4-A. (A) THE AVIATION PURPOSE ACCOUNT SHALL CONSIST OF ALL MONEYS REQUIRED TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW AND ANY OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT OR SOURCE. (B) MONEYS IN THE AVIATION PURPOSE ACCOUNT SHALL BE UTILIZED FOR AIRPORTS AND AVIATION FACILITIES AND EQUIPMENT AND RELATED PROJECTS, INCLUDING BUT NOT LIMITED TO THE ACQUISITION OF REAL OR TANGIBLE PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER- VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL- ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT- ED BY FEDERAL LAW. S 3. Section 312 of the tax law, as amended by section 32 of part K of chapter 61 of the laws of 2011, is amended to read as follows: S 312. Deposit and disposition of revenue.-- (a) Except as otherwise provided, of all taxes, interest and penalties collected or received on or after April first, two thousand one, from the taxes imposed by [sections] SECTION three hundred one-a [and three hundred one-e] of this article, (i) initially eighty and three-tenths percent shall be deposit- ed, as prescribed by subdivision (d) of section three hundred one-j of this article and (ii) nineteen and seven-tenths percent shall be depos- ited in such mass transportation operating assistance fund to the credit of the metropolitan mass transportation operating assistance account and the public transportation systems operating assistance account thereof in the manner provided by subdivision eleven of section one hundred eighty-two-a of this chapter. Provided, further that on or before the twenty-fifth day of each month commencing with April, two thousand one, the comptroller shall deduct the amount of six hundred twenty-five thou- sand dollars prior to any deposit or disposition of the taxes, interest, and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall deposit such S. 6409--C 48 A. 9009--C amount in the dedicated fund accounts pursuant to subdivision (d) of section three hundred one-j of this article. Provided, further, that commencing January fifteenth, nineteen hundred ninety-one, and on or before the tenth day of March and the fifteenth day of June and Septem- ber of such year, the commissioner shall, based on information supplied by taxpayers and other appropriate sources, estimate the amount of the utility credit authorized by section three hundred one-d of this article which has been accrued to reduce tax liability under section one hundred eighty-six-a of this chapter during the period covered by such estimate and certify to the state comptroller such estimated amount. The comp- troller shall forthwith, after receiving such certificate, deduct the amount of such credit so certified by the commissioner prior to any deposit or disposition of the taxes, interest and penalties collected or received pursuant to such [sections] SECTION three hundred one-a [and three hundred one-e] and shall pay such amount so certified and deducted into the state treasury to the credit of the general fund. Also, subse- quently, during the fiscal year when the commissioner becomes aware of changes or modifications with respect to actual credit usage, the commissioner shall, as soon as practicable, issue a certification setting forth the amount of any required adjustment to the amount of actual credit usage previously certified. After receiving the certif- icate of the commissioner with respect to actual credit usage or modifi- cation of the same, the comptroller shall forthwith adjust general fund receipts and the revenues to be deposited or disposed of under this article to reflect the difference so certified by the commissioner. The commissioner shall not be liable for any overestimate or underestimate of the amount of the utility credit which has been accrued to reduce tax liability under such section one hundred eighty-six-a. Nor shall the commissioner be liable for any inaccuracy in any certificate with respect to the amount of such credit actually used or any required adjustment with respect to actual credit usage, but the commissioner shall as soon as practicable after discovery of any error adjust the next certification under this section to reflect any such error. Prior to making deposits as provided in this section, the comptroller shall retain such amount as the commissioner may determine to be neces- sary, subject to the approval of the director of the budget, for reason- able costs of the department in administering and collecting the taxes deposited pursuant to this section and for refunds and reimbursements with respect to such taxes, out of which the comptroller shall pay any refunds or reimbursements of such taxes to which taxpayers shall be entitled. (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E OF THIS ARTICLE SHALL BE DEPOSITED IN THE AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as amended by section 8 of part W-1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) Every distributor of motor fuel shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the author- ity of article twenty-nine of this chapter, a tax on each gallon of motor fuel (i) which he imports or causes to be imported into this state for use, distribution, storage or sale in the state or produces, refines, manufactures or compounds in this state or (ii) if the tax has S. 6409--C 49 A. 9009--C not been imposed prior to its sale in this state, which he sells (which acts shall in regard to motor fuel hereinafter in this article be encom- passed by the phrase "imported, manufactured or sold"), except when imported, manufactured or sold under circumstances which preclude the collection of such tax by reason of the United States constitution and of the laws of the United States enacted pursuant thereto or when imported or manufactured by an organization described in paragraph one or two of subdivision (a) of section eleven hundred sixteen of this article or a hospital included in the organizations described in para- graph four of such subdivision for its own use and consumption and except kero-jet fuel when imported by an airline for use in its airplanes, and except CNG, and except hydrogen, and except E85 when delivered to a filling station and placed in a storage tank of such filling station for such E85 to be dispensed directly into a motor vehi- cle for use in the operation of such vehicle, AND EXCEPT AVIATION GASO- LINE SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 4-a. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as amended by chapter 261 of the laws of 1988, is amended to read as follows: (1) Every distributor of motor fuel shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the author- ity of article twenty-nine of this chapter, a tax on each gallon of motor fuel (i) which he imports or causes to be imported into this state for use, distribution, storage or sale in the state or produces, refines, manufactures or compounds in this state or (ii) if the tax has not been imposed prior to its sale in this state, which he sells (which acts shall in regard to motor fuel hereinafter in this article be encom- passed by the phrase "imported, manufactured or sold"), except when imported, manufactured or sold under circumstances which preclude the collection of such tax by reason of the United States constitution and of the laws of the United States enacted pursuant thereto or when imported or manufactured by an organization described in paragraph one or two of subdivision (a) of section eleven hundred sixteen of this article or a hospital included in the organizations described in para- graph four of such subdivision for its own use and consumption and except kero-jet fuel when imported by an airline for use in its airplanes, AND EXCEPT AVIATION GASOLINE SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 5. Subparagraph (i) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; AND ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT; and, unless such city, county or school district elects other- wise, shall omit the provision for credit or refund contained in clause S. 6409--C 50 A. 9009--C six of subdivision (a) or subdivision (d) of section eleven hundred nineteen of this chapter. S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, are amended and a new subparagraph (xiv) is added to read as follows: (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of section eleven hundred fifteen of this chapter[.]; AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES ALL SALES OF FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION AIRCRAFT. S 7. Notwithstanding any law to the contrary, the comptroller is here- by authorized and directed to transfer from the general fund for deposit into the mass transportation operating assistance fund, pursuant to section 88-a of the state finance law and the dedicated mass transporta- tion trust fund, pursuant to section 89-c of the state finance law, upon request of the director of the budget, on or before March 31 of each year, an amount equal to the amount of revenue received by the commis- sioner of taxation and finance during the state fiscal year from petro- leum business taxes imposed pursuant to the authority of section 301-e of the tax law that would have otherwise been directed to such funds pursuant to section 312 of the tax law as such section was in effect on the day before this act became a law. S 8. This act shall take effect immediately, provided however that sections one, two and seven of this act shall take effect April 1, 2017; provided further that sections three, four, five and six of this act shall take effect December 1, 2017; and provided further that the amend- ments to paragraph 1 of subdivision (a) of section 1102 of the tax law made by section four of this act shall be subject to the expiration and reversion of such paragraph pursuant to section 19 of part W-1 of chap- ter 109 of the laws of 2006, as amended, when upon such date the provisions of section four-a of this act shall take effect. PART AA Intentionally Omitted PART BB Section 1. Subdivision 1 of section 236 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: 1. Every corporation authorized under this chapter to conduct pari-mu- tuel betting at a race meeting on races run thereat, except as provided in section two hundred thirty-eight of this article with respect to the franchised corporation, shall distribute all sums deposited in any pari- mutuel pool to the holders of winning tickets therein, providing such tickets be presented for payment before April first of the year follow- ing the year of their purchase, less an amount [which] THAT shall be established and retained by such racing corporation of between fourteen to twenty [per centum] PERCENT of the total deposits in pools resulting from regular on-track bets and less sixteen to twenty-two [per centum] S. 6409--C 51 A. 9009--C PERCENT of the total deposits in pools resulting from multiple on-track bets and less twenty to thirty [per centum] PERCENT of the total depos- its in pools resulting from exotic on-track bets and less twenty to thirty-six [per centum] PERCENT of the total pools resulting from super exotic on-track bets, plus the breaks. The retention rate to be estab- lished is subject to the prior approval of the [racing and wagering board] GAMING COMMISSION. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter and breaks are hereby defined as [the odd cents over any multiple of ten, or for exotic bets over any multiple of fifty, or for super exotic bets, over any multiple of one hundred, calculated on the basis of one dollar, other- wise payable to a patron provided, however, that effective after October fifteenth, nineteen hundred ninety-four breaks are hereby defined as] the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. Of the amount so retained there shall be paid by such corpo- ration to the department of taxation and finance as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meeting held by such corporation, which tax is hereby levied, the following percentages of the total pool, plus fifty- five [per centum] PERCENT of the breaks; the applicable rates for regu- lar and multiple bets shall be one and one-half [per centum] PERCENT; the applicable rates for exotic bets shall be six and three-quarter [per centum] PERCENT and the applicable rate for super exotic bets shall be seven and three-quarter [per centum] PERCENT. Effective on and after September first, nineteen hundred ninety-four, the applicable tax rate shall be one [per centum] PERCENT of all wagers, provided that, an amount equal to one-half the difference between the taxation rate for on-track regular, multiple and exotic bets as of December thirty-first, nineteen hundred ninety-three and the rates on such on-track wagers as herein provided shall be used exclusively for purses. Provided, however, that for any twelve-month period beginning on April first in nineteen hundred ninety and any year thereafter, each of the applicable rates set forth above shall be increased by one-quarter of one [per centum] PERCENT on all on-track bets of any such racing corporation that did not expend an amount equal to at least one-half of one [per centum] PERCENT of its on-track bets during the immediately preceding calendar year for enhancements consisting of capital improvements as defined by section two hundred thirty-seven of this article, repairs to its physical plant, structures, and equipment used in its racing or wagering operations as certified by the [state racing and wagering board] GAMING COMMISSION to the commissioner of taxation and finance no later than eighty days after the close of such calendar year, and five special events at each track in each calendar year, not otherwise conducted in the ordinary course of business, the purpose of which shall be to encourage, attract and promote track attendance and encourage new and continued patronage, which events shall be [approved by the racing and wagering board] SUBJECT TO THE PRIOR APPROVAL OF THE GAMING COMMISSION for purposes of this subdivision. In the determination of the amounts expended for such S. 6409--C 52 A. 9009--C enhancements, the [board] GAMING COMMISSION may consider the immediately preceding [twelve month] TWELVE-MONTH calendar period or the average of the two immediately preceding [twelve month] TWELVE-MONTH calendar peri- ods. Provided further, however, that of the portion of the increased amounts retained by such corporation above those amounts retained in nineteen hundred eighty-four, an amount of such increase shall be distributed to purses in the same proportion as commissions and purses were distributed during nineteen hundred eighty-four as certified by the [board] GAMING COMMISSION. Such corporation in the second zone shall receive a credit against the daily tax imposed by this subdivision in an amount equal to FOUR-TENTHS OF one [per centum] PERCENT of total daily pools resulting from the simulcast of such corporation's races to licensed facilities operated by regional off-track betting corporations in accordance with section one thousand eight of this chapter, provided however, that sixty [per centum] PERCENT of the amount of such credit shall be used exclusively to increase purses for overnight races conducted by such corporation; and, provided further, that in no event shall such total daily credit exceed FOUR-TENTHS OF one [per centum] PERCENT of the total daily pool of such corporation. [Provided, however, that on and after September first, nineteen hundred ninety-four such credit shall be four-tenths percent of total daily pools resulting from such simulcasting and that in no event shall such total daily credit equal four-tenths percent of the total daily pool of such corporation.] Such corporation shall pay to the New York state thoroughbred breeding and development fund one-half of one [per centum] PERCENT of the total daily on-track pari-mutuel pools from regular, multiple and exotic bets, and three [per centum] PERCENT of super exotic bets. The corporation shall receive credit as a reduction of the tax by the state for the privilege of conducting pari-mutuel betting for the amounts, except amounts paid from super exotic betting pools, paid to the New York state thoroughbred breeding and development fund after January first, nineteen hundred seventy-eight. Such corporation shall distribute to purses an amount equal to fifty [per centum] PERCENT of any compensation it receives from simulcasting or from wagering conducted outside the United States. Such corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari- mutuel pools of such corporation. S 2. Paragraph (d) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (d) (I) The pari-mutuel tax rate authorized by paragraph (a) of this subdivision shall be effective so long as a franchised corporation noti- fies the [racing and wagering board] GAMING COMMISSION by August fifteenth of each year that such pari-mutuel tax rate is effective of its intent to conduct a race meeting at Aqueduct racetrack during the months of December, January, February, March and April. For purposes of this paragraph such race meeting shall consist of not less than ninety- five days of racing. Not later than May first of each year that such pari-mutuel tax rate is effective, the [racing and wagering board] GAMING COMMISSION shall determine whether a race meeting at Aqueduct racetrack consisted of the number of days as required by this paragraph. In determining the number of race days, cancellation of a race day because of an act of God[, which] THAT the [racing and wagering board] GAMING COMMISSION approves or because of weather conditions that are S. 6409--C 53 A. 9009--C unsafe or hazardous which the [racing and wagering board] GAMING COMMIS- SION approves shall not be construed as a failure to conduct a race day. Additionally, cancellation of a race day because of circumstances beyond the control of such franchised corporation for which the [racing and wagering board] GAMING COMMISSION gives approval shall not be construed as a failure to conduct a race day. If the [racing and wagering board] GAMING COMMISSION determines that the number of days of racing as required by this paragraph have not occurred then the pari-mutuel tax rate in paragraph (a) of this subdivision shall revert to the pari-mutu- el tax rates in effect prior to January first, nineteen hundred ninety- five. (II) Such franchised corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari-mutuel pools of such franchised corporation. S 3. Paragraph d of subdivision 1 of section 318 of the racing, pari- mutuel wagering and breeding law, as amended by section 3 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. Every harness racing association or corporation shall pay to the [board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily on-track pari-mutuel pools of such association or corporation. S 4. The opening paragraph and the opening paragraph of subdivision 1 of section 527 of the racing, pari-mutuel wagering and breeding law, the opening paragraph as amended by chapter 18 of the laws of 2008 and the opening paragraph of subdivision 1 as amended by chapter 300 of the laws of 2015, are amended to read as follows: Each regional corporation conducting off-track betting shall distrib- ute all sums deposited in any pari-mutuel pool through such corporation to the holders of winning tickets therein, providing such tickets be presented for payment prior to April first of the year following the year of their purchase, less an amount [which] THAT it shall retain at the same rate established by the track accepting wagers from each such regional corporation. The disposition of the retained commission from pools resulting from regular, multiple or exotic bets, as the case may be, whether placed on races run within a region or outside a region, conducted by racing corporations, harness racing associations or corporations, quarter horse racing associations or corporations or races run outside the state shall be governed by the tables in paragraphs a and b of this subdivision. The rate denominated "state tax" shall represent the rate of a reasonable tax imposed upon the retained commission for the privilege of conducting off-track pari-mutuel betting, which tax is hereby levied and shall be payable in the manner set forth in this section. Each off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools of such corporation. Each corporation shall also pay twenty [per centum] PERCENT of the breaks derived from bets on harness races and fifty [per centum] PERCENT of the breaks derived from bets on all other races to the agriculture and New York State horse breeding and development fund and to the thoroughbred breeding and development fund, the total of such payments to be apportioned fifty [per centum] PERCENT to each such fund. For the purposes of this section, the New York city, Suffolk, Nassau, and the Catskill regions shall constitute a single region and any thoroughbred track located within the Capital District region shall be deemed to be S. 6409--C 54 A. 9009--C within such single region. A "regional meeting" shall refer to either harness or thoroughbred meetings, or both, except that a franchised corporation shall not be a regional track for the purpose of receiving distributions from bets on thoroughbred races conducted by a thorough- bred track in the Catskill region conducting a mixed meeting. With the exception of a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Tioga or Saratoga county after January first, two thousand five, racing corporations first licensed to conduct pari-mutuel racing after January first, nineteen hundred eighty-six or a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Genesee County after January first, two thousand five, and quarter horse tracks shall not be "regional tracks"; if there is more than one harness track within a region, such tracks shall evenly divide payments made pursuant to the tables in paragraphs a and b of this subdivision when neither track is running. In the event a track elects to reduce its retained percentage from any or all of its pari-mutuel pools, the payments to the track holding the race and the regional track required by paragraphs a and b of this subdivision shall be reduced in proportion to such reduction. Nothing in this section shall be construed to authorize the conduct of off-track betting contrary to the provisions of section five hundred twenty-three of this article. S 5. Paragraph a of subdivision 1 of section 904 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, are amended to read as follows: a. The applicable state tax provided for in paragraphs a and b of subdivision one of section five hundred twenty-seven of this chapter shall be one-half [per centum] PERCENT for regular, multiple and exotic bets. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 6. Paragraph g of subdivision 3 of section 1007 of the racing, pari- mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: g. Any harness racing or association or corporation, or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 7. Paragraph b of subdivision 3 of section 1008 of the racing, pari- mutuel wagering and breeding law, as amended by section 7 of part B of chapter 59 of the laws of 2005, is amended to read as follows: b. Of the sums received by the sending track, fifty percent shall be distributed to purses in addition to moneys distributed pursuant to section five hundred twenty-seven of this chapter. The off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S 8. Paragraph d of subdivision 4 of section 1009 of the racing, pari- mutuel wagering and breeding law, as amended by section 8 of part B of chapter 59 of the laws of 2005, is amended to read as follows: d. The operator shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pools. S. 6409--C 55 A. 9009--C S 9. Subparagraph (iv) of paragraph i of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (iv) Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 10. Paragraph e of subdivision 3 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: e. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMIS- SION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 11. Clause (B) of subparagraph 2 of paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: (B) Any harness racing or association or corporation or thoroughbred racing corporation authorized pursuant to this section shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of the total daily pari-mutuel pools. S 12. Paragraph b of subdivision 2 of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: b. Any thoroughbred racing corporation or harness racing association or corporation or off-track betting corporation shall pay to the [racing and wagering board] GAMING COMMISSION as a regulatory fee, which fee is hereby levied, [fifty hundredths] SIX-TENTHS of one percent of all wagering pools. S 13. This act shall take effect immediately. PART CC Section 1. Section 308 of the racing, pari-mutuel wagering and breed- ing law, as amended by section 1 of part Y of chapter 58 of the laws of 2012, is amended to read as follows: S 308. Officials at harness horse race meetings. 1. At all harness race meetings licensed by the [state racing and wagering board] GAMING COMMISSION in accordance with the provisions of sections two hundred twenty-two through seven hundred five of this chapter qualified judges and starters shall be designated by the [state racing and wagering board] GAMING COMMISSION. Such officials shall enforce the rules and regulations of the [state racing and wagering board] GAMING COMMISSION and shall render regular written reports of the activities and conduct of such race meetings to the [state racing and wagering board] GAMING COMMISSION. 2. The licensed racing corporations shall reimburse the [state racing and wagering board] GAMING COMMISSION for the per diem cost to the [board] COMMISSION to employ one associate judge and the starter to serve at harness race meetings. The [board] COMMISSION shall notify EACH such licensed racing [corporations] CORPORATION of the per diem cost of the associate judge and the starter [prior to the beginning] AT THE S. 6409--C 56 A. 9009--C TRACK OF SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END of each month. Payment of the reimbursement required by this section shall be made to the [board] COMMISSION by each entity required to make such payments [on the last business day of each month] WITHIN THIRTY DAYS OF SUCH NOTIFICATION BY THE COMMISSION and shall cover all the costs incurred during that month. A penalty of five percent of payment due, and interest at the rate of one percent per month calculated from such [last day of each month] DATE THAT PAYMENT IS DUE to the date of the payment of the per diem cost shall be payable in case any per diem cost imposed by this subdivision is not paid when due. The [board] COMMISSION shall promulgate rules and regulations to ensure the proper reimbursement of such costs. 3. The [board] COMMISSION shall pay into the racing regulation account, as defined in section ninety-nine-i of the state finance law, under the joint custody of the comptroller and the [board] COMMISSION, the total amount of the reimbursements collected pursuant to this section. With the approval of the director of the budget, monies [utilized] USED to pay the costs and expenses of the operations of the [board] COMMISSION shall be paid out of such account on the audit and warrant of the comptroller on vouchers, certified and approved by the director of the division of the budget or his or her duly designated official. 4. Any associate judge and starter whose per diem costs are reimbursed by a licensed racing corporation shall remain employees of the [state racing and wagering board] GAMING COMMISSION and shall retain all the rights and privileges of their current civil service jurisdictional classification and status and collective bargaining unit representation. S 2. This act shall take effect immediately. PART DD Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law is amended by adding a new clause (G-2) to read as follows: (G-2) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK RETAINED BY THE COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES; AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO THE VENDOR TRACK PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN SENECA OR WAYNE COUNTIES PURSUANT TO SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA OR WAYNE COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF- ICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION SET FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON THE CALCU- LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR. S. 6409--C 57 A. 9009--C S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART EE Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part WW of chapter 59 of the laws of 2015, is amended to read as follows: (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- agraph, when a vendor track, is located in Sullivan county and within sixty miles from any gaming facility in a contiguous state such vendor fee shall, for a period of [eight] NINE years commencing April first, two thousand eight, be at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, after which time such rate shall be as for all tracks in clause (C) of this subparagraph. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART FF Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting S. 6409--C 58 A. 9009--C corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [sixteen] SEVENTEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [sixteen] SEVENTEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [sixteen] SEVENTEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. S 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [sixteen] SEVENTEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative S. 6409--C 59 A. 9009--C horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [sixteen] SEVENTEEN. This section shall super- sede all inconsistent provisions of this chapter. S 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [sixteen] SEVENTEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: S 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [fifteen] SIXTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. S 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S. 6409--C 60 A. 9009--C S 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2016] 2017; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. S 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: S 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2016] 2017; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. S 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part NN of chapter 59 of the laws of 2015, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state S. 6409--C 61 A. 9009--C for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [sixteen] SEVENTEEN, such payment shall be seven-tenths of one per centum of such pools. S 10. This act shall take effect immediately. PART GG Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part MM of chapter 59 of the laws of 2015, is amended to read as follows: (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of this subparagraph, the track operator of a vendor track shall be eligi- ble for a vendor's capital award of up to four percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which shall be used exclusively for capital project investments to improve the facilities of the vendor track which promote or encourage increased attendance at the video lottery gaming facility including, but not limited to hotels, other lodging facilities, enter- tainment facilities, retail facilities, dining facilities, events arenas, parking garages and other improvements that enhance facility amenities; provided that such capital investments shall be approved by the division, in consultation with the state racing and wagering board, and that such vendor track demonstrates that such capital expenditures will increase patronage at such vendor track's facilities and increase the amount of revenue generated to support state education programs. The annual amount of such vendor's capital awards that a vendor track shall be eligible to receive shall be limited to two million five hundred thousand dollars, except for Aqueduct racetrack, for which there shall be no vendor's capital awards. Except for tracks having less than one thousand one hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, each track operator shall be required to S. 6409--C 62 A. 9009--C co-invest an amount of capital expenditure equal to its cumulative vendor's capital award. For all tracks, except for Aqueduct racetrack, the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand [sixteen] SEVENTEEN. Any amount attributable to a capital expenditure approved prior to April first, two thousand [sixteen]SEVENTEEN and completed before April first, two thousand [eigh- teen] NINETEEN; or approved prior to April first, two thousand [twenty] TWENTY-ONE and completed before April first, two thousand [twenty-two] TWENTY-THREE for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligi- ble to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the division prior to April first, two thousand [sixteen] SEVENTEEN and completed prior to April first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumu- lative capital award during the five year period ending April first, two thousand [sixteen] SEVENTEEN, the vendor shall continue to receive the capital award after April first, two thousand [sixteen] SEVENTEEN until such approved capital expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph be eligible for a vendor's capital award under this section. Any opera- tor of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with generally accepted accounting principles, shall reim- burse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand [sixteen] SEVENTEEN shall be deposited into the state lottery fund for education aid; and S 2. This act shall take effect immediately. PART HH Section 1. Paragraph b of subdivision 3 of section 97-nnnn of the state finance law, as added by chapter 174 of the laws of 2013, is amended to read as follows: b. ten percent of the moneys in such fund, AS ATTRIBUTABLE TO A SPECIFIC LICENSED GAMING FACILITY, shall be appropriated or transferred from the commercial gaming revenue fund equally between the host munici- pality and host county OF SUCH FACILITY. S 2. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by chapter 174 of the laws of 2013, is amended to read as follows: (G) Notwithstanding any provision to the contrary, when a vendor track is located within regions one, two, or five of development zone two as defined by section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law, such vendor track shall receive an additional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, WHICH PERCENTAGE SHALL BE ONE HUNDRED, less [ten percent] THE SUM OF THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained by the commission for operation, administration, and procurement purposes; and [payment of] the vendor's fee, marketing allowance[,] and capital award paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax rate paid on all gross gaming revenue paid by a gaming facility within S. 6409--C 63 A. 9009--C the same region pursuant to section thirteen hundred fifty-one of the racing, pari-mutuel wagering and breeding law, PROVIDED, HOWEVER, SUCH ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME REGION IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. The additional commission SET FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2014. PART II Section 1. Subdivision 1 of section 491 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: 1. Except in accordance with proper judicial order or as in this section or otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the department, or any officer or person who, pursuant to this section, is permitted to inspect any return or report or to whom a copy, an abstract or a portion of any return or report is furnished, or to whom any information contained in any return or report is furnished, or any person engaged or retained by such department on an independent contract basis or any person who in any manner may acquire knowledge of the contents of a return or report filed pursuant to this article to divulge or make known in any manner the contents or any other information relating to the business of a distributor, owner or other person contained in any return or report required under this article. The officers charged with the custody of such returns or reports shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the state, the state department of health, or the commissioner in an action or proceeding under the provisions of this chapter or on behalf of the state or the commissioner in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the commissioner is a party or a claimant or on behalf of any party to any action or proceeding under the provisions of this article, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical marihuana on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, in any of which events the court may require the production of, and may admit in evidence so much of said returns or reports or of the facts shown there- by as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the commissioner, in his or her discretion, from allowing the inspection or delivery of a certified copy of any return or report filed under this article or of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the state department of health; or by or to the attorney general or other legal representatives of the state when an action shall have been recommended or commenced pursuant to this chapter in which such returns or reports or the facts shown thereby are directly involved; or the inspection of the returns or reports required under this article by the comptroller or duly designated officer or employee S. 6409--C 64 A. 9009--C of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organ- ization, or a duly authorized representative of such registered organ- ization, a certified copy of any return or report filed by such regis- tered organization pursuant to this article, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns or reports and the items thereof. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINIS- TRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL THE REGISTERED ORGANIZATIONS MAKING SALES OF, OR MANUFACTURING, MEDICAL MARIHUANA IN A SPECIFIED COUNTY, WHETHER THE NUMBER OF SUCH REGISTERED ORGANIZATIONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITH- STANDING THE PROVISIONS OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE AN ALLOCATION, FOLLOWING APPROPRIATION BY THE LEGISLATURE, PURSUANT TO THIS ARTICLE AND SECTION EIGHTY-NINE-H OF THE STATE FINANCE LAW, OR THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH OFFICER OR SUCH REPRESENTATIVE WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE. S 2. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 491 of the tax law made by section one of this act shall be deemed to have been in full force and effect on and after January 1, 2016, and shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART JJ Section 1. Subdivision 15 of section 425 of the real property tax law, as added by section 1 of part E of chapter 59 of the laws of 2015, is amended to read as follows: 15. Recoupment of exemptions by commissioner. (a) Generally. If the commissioner should determine, based upon data collected under the STAR registration program, that property improperly received the basic STAR exemption [on] IN THE CURRENT SCHOOL YEAR OR one or more of the three preceding [assessment rolls] SCHOOL YEARS, the commissioner shall treat the exemption as an improperly granted exemption and proceed in the manner provided by this subdivision; provided that final assessment rolls that were filed prior to April first, two thousand eleven shall not be subject to the provisions of this subdivision. (b) Procedure. The tax savings attributable to each such improperly granted exemption shall be collected from the owners whose property improperly received the exemption for the applicable year, together with interest as specified in this subdivision, by utilizing any of the procedures for collection, levy, and lien of personal income tax set forth in article twenty-two of the tax law, any other relevant proce- dures referenced within the provisions of that article, and any other law as may be applicable, so far as practicable when recouping the exemption amount pursuant to this subdivision, except that: (i) IN ORDER FOR THE RECOUPMENT PROCEDURE TO BE CONSIDERED TIMELY, THE NOTICE REQUIRED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH MUST BE MAILED NO LATER THAN THREE YEARS AFTER THE CONCLUSION OF THE SCHOOL YEAR FOR WHICH S. 6409--C 65 A. 9009--C THE EXEMPTION IN QUESTION WAS GRANTED, OR IN THE CASE OF AN EXEMPTION THAT WAS GRANTED FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR, NO LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN; (II) prior to directing that an improperly granted exemption be recouped pursuant to this subdivision, the commissioner shall provide the owners with notice and an opportunity to show the commissioner that the exemption was properly granted. If the owners fail to respond to such notice within forty-five days from the mailing thereof, or if their response does not show to the commissioner's satisfaction that the eligibility requirements were in fact satisfied, the commissioner shall proceed with the recoupment of the improperly granted exemption in accordance with the provisions of this subdivision; and [(ii)] (III) notwithstanding the provisions of paragraph (b) of subdi- vision six of this section, neither an assessor nor a board of assess- ment review has the authority to consider an objection to the recoupment of an exemption pursuant to this subdivision, nor may such an action be reviewed in a proceeding to review an assessment pursuant to title one or one-A of article seven of this chapter. Such an action may only be challenged before the department. If an owner is dissatisfied with the department's final determination, the owner may appeal that determi- nation to the board in a form and manner to be prescribed by the commis- sioner. Such appeal shall be filed within forty-five days from the issu- ance of the department's final determination. If dissatisfied with the board's determination, the owner may seek judicial review thereof pursu- ant to article seventy-eight of the civil practice law and rules. The owner shall otherwise have no right to challenge such final determi- nation in a court action, administrative proceeding, including but not limited to an administrative proceeding pursuant to article forty of the tax law, or any other form of legal recourse against the commissioner, the department, the board, the assessor, or any other person, state agency, or local government. (c) The amount to be recouped for each improperly received exemption shall have interest added at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereof since the levy of school taxes upon such assessment roll. (d) In the event that a revocation of prior exemption pursuant to subdivision twelve of this section or a voluntary renunciation of the STAR exemption pursuant to section four hundred ninety-six of this [chapter] ARTICLE has occurred, the provisions of this subdivision shall not be applicable to the exemptions so revoked or voluntarily renounced. S 2. This act shall take effect immediately. PART KK Section 1. Paragraphs a and b of subdivision 1 of section 502 of the tax law, paragraph a as amended by section 1 of part E of chapter 60 of the laws of 2007, and paragraph b as amended by section 1 of part T-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. Each carrier shall apply to the commissioner for a certificate of registration for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state. Application shall be made upon a form prescribed by such commissioner and shall set forth the gross and unloaded weight of each motor vehicle, license plate informa- tion for each motor vehicle and such other information as the commis- sioner may require. Such weights shall be subject to audit and approval S. 6409--C 66 A. 9009--C by the commissioner. [The application shall be accompanied by a fee of fifteen dollars for each motor vehicle listed in the application.] The commissioner shall issue [without further charge] a certificate of registration for each motor vehicle or a consolidated certificate of registration for all or any portion of such vehicles of such carrier which shall contain such information and be in such form as the commis- sioner shall prescribe. In the case of the loss, mutilation or destruction of a certificate of registration, the commissioner shall issue a duplicate thereof [upon payment of a fee of two dollars]. Any such certificate of registration shall not be transferable, except as hereinafter provided, and shall be valid until revoked, suspended or surrendered. Such certificate of registration shall be maintained in the carrier's regular place of business. In the event of an increase in the gross or unloaded weight of any motor vehicle subject to this article, application for a corrected certificate of registration shall be made upon a form prescribed by such commissioner setting forth the previous gross or unloaded weight, the new gross or unloaded weight and such other information as the commissioner may require. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, application may be made for a corrected certificate of registration in a similar manner, provided that any such application on the basis of a decrease in the gross or unloaded weight of any motor vehicle may be made only during the month of January. In the event of a decrease in the gross or unloaded weight of any motor vehicle subject to this article, an application to cancel a certificate of registration on the basis of such decrease may be made during any month. The corrected gross or unloaded weight shall be subject to audit and approval by the commissioner. In the event of a change to the license plate information of any motor vehicle subject to this article, an application for a corrected certificate of registration shall be made upon a form prescribed by the commissioner setting forth the previous license plate information, the new license plate information and such other informa- tion as the commissioner may require. Upon surrendering the certificate of registration previously issued, the commissioner shall[, without further charge,] issue a corrected certificate of registration. b. Every automotive fuel carrier shall apply to the commissioner for a special certificate of registration, in place of the certificate of registration described in paragraph a of this subdivision, for each motor vehicle operated or to be operated by [him] SUCH CARRIER on the public highways in this state to transport automotive fuel. Provided, however, a special certificate of registration shall not be required under this paragraph for a tractor or other self-propelled device which, except with respect to the fuel in the ordinary fuel tank intended for its propulsion, transports automotive fuel solely by means of a trailer, dolly or other device drawn by such tractor or other self-propelled device if a certificate of registration prescribed by paragraph a of this subdivision has been issued for the self-propelled device. Applica- tion shall be made upon an application form prescribed by the commis- sioner. [The application shall be accompanied by a fee of fifteen dollars for each trailer, semi-trailer, dolly or other device listed in the application.] The commissioner shall issue [without further charge] such special certificate of registration for each motor vehicle listed in the application or a consolidated certificate of registration for all or any portion of such vehicles of such carrier. All of the provisions of this article with respect to certificates of registration shall be applicable to the special certificates of registration issued to automo- S. 6409--C 67 A. 9009--C tive fuel carriers under this paragraph as if those provisions had been set forth in full in this paragraph and expressly referred to the special certificates of registration required by this paragraph except to the extent that any such provision is either inconsistent with a provision of this paragraph or not relevant to the certificates of registration required by this paragraph. Any certificate of registration shall not be transferable, and shall be valid until revoked, suspended or surrendered. Such special certificate of registration shall be main- tained in the carrier's regular place of business. Nothing contained in this paragraph shall in any way exempt an automotive fuel carrier from payment of the taxes imposed pursuant to this article. S 2. Paragraphs a and b of subdivision 6 of section 502 of the tax law, as added by section 1 of part K-1 of chapter 57 of the laws of 2009, are amended to read as follows: a. The commissioner may require the use of decals as evidence that a carrier has a valid certificate of registration for each motor vehicle operated or to be operated on the public highways of this state as required by paragraph a of subdivision one of this section. If the commissioner requires the use of decals, the commissioner shall issue for each motor vehicle with a valid certificate of registration a decal that shall be of a size and design and containing such information as the commissioner prescribes. [The fee for any decal issued pursuant to this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a decal, the commissioner shall issue a new decal upon proof of the facts [and payment of four dollars]. The decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued as closely as practical to the registration or license plates and at all times be visible and legible. No decal is transferable. A decal shall be valid until it expires or is revoked, suspended, or surren- dered. b. The commissioner may require the use of special decals as evidence that an automotive fuel carrier has a valid special certificate of registration for each motor vehicle operated or to be operated on the public highways of this state to transport automotive fuel as required by paragraph b of subdivision one of this section. If the commissioner requires the use of special decals, the commissioner shall issue for each motor vehicle with a valid special certificate of registration a special decal that shall be distinctively colored and of a size and design and containing such information as the commissioner prescribes. [The fee for any special decal issued pursuant to this paragraph is four dollars.] In the case of the loss, mutilation, or destruction of a special decal, the commissioner shall issue a new special decal upon proof of the facts [and payment of four dollars]. The special decal shall be firmly and conspicuously affixed upon the motor vehicle for which it is issued pursuant to the rules and regulations prescribed by the commissioner to enable the easy identification of the automotive fuel carrier certificate of registration number and at all times be visible and legible. No special decal is transferable and shall be valid until it expires or is revoked, suspended, or surrendered. S 3. The tax law is amended by adding a new section 502-a to read as follows: S 502-A. CERTIFICATE OF REGISTRATION AND DECAL FEES. THE APPLICATION FOR A CERTIFICATE OF REGISTRATION AND DECAL DESCRIBED IN PARAGRAPH A OF SUBDIVISION ONE AND PARAGRAPH A OF SUBDIVISION SIX OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE, OR A SPECIAL CERTIFICATE OF REGISTRATION AND SPECIAL DECAL AS DESCRIBED IN PARAGRAPH B OF SUBDIVISION ONE AND S. 6409--C 68 A. 9009--C PARAGRAPH B OF SUBDIVISION SIX OF SUCH SECTION, SHALL BE ACCOMPANIED BY A FEE OF ONE DOLLAR AND FIFTY CENTS. IN THE CASE OF THE LOSS, MUTILA- TION OR DESTRUCTION OF ANY SUCH DOCUMENTS, THE COMMISSIONER SHALL ISSUE A DUPLICATE SET THEREOF UPON PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY CENTS. PROVIDED, HOWEVER, THERE SHALL BE NO ADDITIONAL CHARGE FOR THE ISSUANCE OF A CORRECTED CERTIFICATE OF REGISTRATION PURSUANT TO PARA- GRAPH A OF SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE. S 4. Subdivision 8 of section 509 of the tax law, as separately amended by section 3 of part K-1 and section 2 of part T-1 of chapter 57 of the laws of 2009, is amended to read as follows: 8. To issue replacement certificates of registration or decals at such times as the commissioner may deem necessary for the proper and effi- cient enforcement of the provisions of this article, but not more often than once every year and to require the surrender of the then outstand- ing certificates of registration and decals. All of the provisions of this article with respect to certificates of registration and decals shall be applicable to replacement certificates of registration and decals issued hereunder, except that the replacement certificate of registration or decal shall be issued upon payment of a fee of [fifteen dollars] ONE DOLLAR AND FIFTY CENTS for each motor vehicle and for any trailer, semi-trailer, dolly or other device drawn thereby for which a certificate of registration or decal is required to be issued under this article; S 5. Section 515 of the tax law, as added by chapter 329 of the laws of 1991, is amended to read as follows: S 515. Disposition of revenues. All taxes, interest, penalties and fees collected or received pursuant to this article shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, and to the credit of the comptroller on account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. Such an account may be established in one or more of such depositories and such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the revenues so deposited, the comptroller shall retain in his hands such amount as the commissioner of taxation and finance may deter- mine to be necessary for refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under the provisions of this article, out of which amount the comptroller shall pay any refunds or reimbursements of the taxes collected or received pursuant to this article to which taxpayers shall be entitled under such provisions. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the last day of each month, pay the balance of the revenue so deposited during such month into the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law. NOTWITHSTANDING THE FOREGOING OR ANY OTHER LAW TO THE CONTRARY, THE COMPTROLLER SHALL DEPOSIT ALL MONIES COLLECTED ON ACCOUNT OF THE REGIS- TRATION FEES IMPOSED PURSUANT TO SECTION FIVE HUNDRED TWO-A AND SUBDIVI- SION EIGHT OF SECTION FIVE HUNDRED NINE OF THIS ARTICLE INTO THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-NINE-Y OF THE STATE FINANCE LAW. THE MONIES DEPOSITED IN SUCH ACCOUNT SHALL BE AVAILABLE TO THE COMMISSIONER FOR THE COSTS OF ISSUING THE CERTIFICATES OF REGISTRATION AND HIGHWAY USE TAX DECALS REQUIRED BY THIS ARTICLE AND FOR ANY OTHER COSTS OF ADMINISTERING THE PROVISIONS OF S. 6409--C 69 A. 9009--C SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THIS ARTICLE. ANY MONEYS NOT USED IN A GIVEN YEAR SHALL BE RETURNED TO SUCH ACCOUNT AND BE ADDED TO THE TOTAL FUNDS AVAILABLE FOR DISBURSEMENT IN THE SUCCEEDING YEAR. S 6. The state finance law is amended by adding a new section 99-y to read as follows: S 99-Y. HIGHWAY USE TAX ADMINISTRATION ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL ACCOUNT TO BE KNOWN AS THE "HIGHWAY USE TAX ADMINISTRATION ACCOUNT". 2. THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT SHALL CONSIST OF ALL MONIES COLLECTED FROM THE HIGHWAY USE TAX REGISTRATION AND DECAL FEES COLLECTED PURSUANT TO SECTIONS FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND ANY OTHER MONIES DEPOSITED INTO THE ACCOUNT PURSUANT TO LAW. 3. MONIES OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE, SHALL BE USED FOR THE COSTS OF THE COMMISSIONER OF TAXATION AND FINANCE IN ADMINISTERING SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED NINE OF THE TAX LAW, AND EXPENDED FOR THE PURPOSES SET FORTH IN SECTION FIVE HUNDRED FIFTEEN OF THE TAX LAW. S 7. This act shall take effect immediately. PART LL Section 1. Paragraph (b) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (b) Carryover OR REFUND. In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. If, however, the amount of credit allowable under this subdivision for any taxable year, including any credit carried over from a prior taxable year, reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. IN LIEU OF CARRYING OVER TO THE FOLLOWING YEAR OR YEARS, THE UNUSED PORTION OF CREDITS ATTRIBUTABLE TO THE SPECIAL ADDITIONAL MORT- GAGE RECORDING TAX PAID BY THE TAXPAYER AS MORTGAGEE WITH RESPECT TO MORTGAGES OF REAL PROPERTY PRINCIPALLY IMPROVED OR TO BE IMPROVED BY ONE OR MORE STRUCTURES CONTAINING IN THE AGGREGATE NOT MORE THAN SIX RESI- DENTIAL DWELLING UNITS, EACH DWELLING UNIT HAVING ITS OWN SEPARATE COOK- ING FACILITIES, SUCH TAXPAYER MAY ELECT TO TREAT SUCH UNUSED PORTION AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER, EXCEPT THAT NO INTEREST SHALL BE PAID ON SUCH OVERPAYMENT. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect. PART MM Section 1. Subparagraph 2 of paragraph (b) of subdivision 43 of section 210-B of the tax law, as added by section 17 of part A of chap- ter 59 of the laws of 2014, is amended to read as follows: S. 6409--C 70 A. 9009--C (2) In addition, the term real property tax includes taxes paid by the taxpayer upon real property principally used during the taxable year by the taxpayer in manufacturing where the taxpayer leases such real prop- erty from an unrelated third party if the following conditions are satisfied: (i) the tax must be paid by the taxpayer as lessee pursuant to explicit requirements in a written lease, and (ii) the taxpayer as lessee has paid such taxes directly to the taxing authority and has received a written receipt for payment of taxes from the taxing authori- ty. In the case of a combined group that constitutes a qualified New York manufacturer, the conditions in the preceding sentence are satis- fied if one corporation in the combined group is the lessee and another corporation in the combined group makes the payments to the taxing authority. IN THE CASE OF A TAXPAYER THAT, DURING THE TAXABLE YEAR, IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE, VITICULTURE, OR COMMERCIAL FISHING, THE TAXPAYER IS ELIGIBLE IF THE TAXPAYER SATISFIES THE CONDITIONS STIPULATED IN THIS SUBDIVISION AND THE TAXPAYER LEASES SUCH REAL PROPERTY FROM A RELATED OR UNRELATED PARTY. S 2. This act shall take effect immediately. PART NN Section 1. Items (I) and (III) of the subclause (ii) of clause (B) of subparagraph 1 of paragraph (r) of subdivision 9 of section 208 of the tax law, as amended by section 6 of part T of chapter 59 of the laws of 2015, are amended to read as follows: (I) Total assets are those assets that are properly reflected on a balance sheet, computed in the same manner as is required by the banking regulator of the taxpayers included in the combined return. IN ADDITION, TOTAL ASSETS INCLUDES LEASED REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET. (III) Tangible real and personal property, such as buildings, land, machinery, and equipment shall be valued at cost. Leased [assets] REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET will be valued at the annual lease payment multiplied by eight. Intangible prop- erty, such as loans and investments, shall be valued at book value exclusive of reserves. S 2. Items (I) and (III) of subclause (ii) of clause (B) of subpara- graph 3 of paragraph (s) of subdivision 9 of section 208 of the tax law, as added by section 4 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (I) Total assets are those assets that are properly reflected on a balance sheet, computed in the same manner as is required by the banking regulator of the taxpayers included in the combined return. IN ADDITION, TOTAL ASSETS INCLUDES LEASED REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET. (III) Tangible real and personal property, such as buildings, land, machinery, and equipment shall be valued at cost. Leased [assets] REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON THAT BALANCE SHEET will be valued at the annual lease payment multiplied by eight. Intangible prop- erty, such as loans and investments, shall be valued at book value exclusive of reserves. S 3. Items (I) and (III) of subclause (B) of clause (ii) of subpara- graph 3 of paragraph (q) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of S. 6409--C 71 A. 9009--C part D of chapter 60 of the laws of 2015, are amended to read as follows: (I) Total assets are those assets that are properly reflected on a balance sheet, computed in the same manner as is required by the banking regulator of the taxpayers included in the combined return. IN ADDITION, TOTAL ASSETS INCLUDES LEASED REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET. (III) Tangible real and personal property, such as buildings, land, machinery, and equipment, shall be valued at cost. Leased [assets] REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON THE BALANCE SHEET will be valued at the annual lease payment multiplied by eight. Intangible prop- erty, such as loans and investments, shall be valued at book value exclusive of reserves. S 4. Items (I) and (III) of subclause (B) of clause (ii) of subpara- graph 1 of paragraph (s) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, are amended to read as follows: (I) Total assets are those assets that are properly reflected on a balance sheet, computed in the same manner as is required by the banking regulator of the taxpayers included in the combined return. IN ADDITION, TOTAL ASSETS INCLUDES LEASED REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET. (III) Tangible real and personal property, such as buildings, land, machinery, and equipment shall be valued at cost. Leased [assets] REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET will be valued at the annual lease payment multiplied by eight. Intangible prop- erty, such as loans and investments, shall be valued at book value exclusive of reserves. S 5. Items (I) and (III) of subclause (C) of clause (ii) of subpara- graph 2 of paragraph (t) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, are amended to read as follows: (I) Total assets are those assets that are properly reflected on a balance sheet, computed in the same manner as is required by the banking regulator, if applicable, of the taxpayers included in the combined return. IN ADDITION, TOTAL ASSETS INCLUDES LEASED REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET. (III) Tangible real and personal property, such as buildings, land, machinery, and equipment, shall be valued at cost. Leased [assets] REAL PROPERTY THAT IS NOT PROPERLY REFLECTED ON A BALANCE SHEET will be valued at the annual lease payment multiplied by eight. Intangible prop- erty, such as loans and investments, shall be valued at book value exclusive of reserves. S 6. This act shall take effect immediately, provided that sections one and two of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014 took effect, and sections three, four and five of this act shall be deemed to have been in full force and effect on the same date and in the same manner as part D of chapter 60 of the laws of 2015 took effect. PART OO S. 6409--C 72 A. 9009--C Section 1. Section 221-a of the racing, pari-mutuel wagering and breeding law, as added by section 3 of part OO of chapter 59 of the laws of 2014, is amended to read as follows: S 221-a. Health insurance for jockeys. 1. A franchised corporation shall, as a condition of racing, establish a program to administer the purchase of health insurance for eligible jockeys. Such program shall be funded through the deposit of one and one-half percent of the gross purse enhancement amount from video lottery gaming at a thoroughbred track pursuant to paragraph two of subdivision b and paragraph one of subdivision f of section sixteen hundred twelve of the tax law. The franchised corporation shall establish a segregated account for the receipt of these monies and these monies shall remain separate from any other funds. Any corporation or association licensed pursuant to this article shall pay into such account any amount due within ten days of the receipt of revenue pursuant to section sixteen hundred twelve of the tax law. Any portion of such funding to the account unused during a calendar year, less an amount sufficient to cover anticipated premium liabilities over the next sixty days, shall be returned on a pro rata basis in accordance with the amounts originally contributed and shall be used for the purpose of enhancing purses at such tracks. Provided, however, if a corporation or association licensed pursuant to this article provides an alternative source of funding for this program, an amount equal to this alternative funding, but not in excess of the amount originally contributed during the year from the gross purse enhancement amount from video lottery gaming attributable to such corpo- ration or association, shall be returned to the corporation or associ- ation and used for the purpose of enhancing purses at such track. Provided, further, any such alternative source of funding must be approved by the gaming commission. 2. The franchised corporation shall enter into a memorandum of under- standing with the jockey's organization that represents at least fifty- one percent of eligible active jockeys establishing a plan of operation for the program, provided that such memorandum of understanding shall be approved by the gaming commission UPON A DETERMINATION THAT SUCH MEMO- RANDUM OF UNDERSTANDING MEETS THE STATUTORY REQUIREMENTS OF THIS SECTION AND IS IN THE BEST INTEREST OF RACING and SHALL include, but not be limited to, the following conditions: a. health insurance policies must be purchased on an American health benefit exchange established pursuant to 42 U.S.C. S 18031(b) by the insured; b. health insurance policies eligible to be purchased under the program shall be any policy that is silver level of coverage or lower as defined by 42 U.S.C.S18022(d). Provided, however, the insured may elect to purchase a gold level or platinum level of coverage as defined by 42 U.S.C. S 18022(d) if the insured pays the difference in premiums between such policy and the premium for the silver level policy offered by the same insurer. Such payments shall be paid into the account established in subdivision one of this section and shall be governed by the terms of the memorandum of understanding required by this section; C. NOTWITHSTANDING THE CONDITIONS SET FORTH IN PARAGRAPHS A AND B OF THIS SUBDIVISION, A MEMORANDUM OF UNDERSTANDING WITH THE JOCKEYS ORGAN- IZATION THAT REPRESENTS AT LEAST FIFTY-ONE PERCENT OF THE ELIGIBLE ACTIVE JOCKEYS MAY BE APPROVED BY THE COMMISSION UPON A DETERMINATION THAT SUCH MEMORANDUM OF UNDERSTANDING IS IN THE BEST INTEREST OF RACING THAT CREATES A JOCKEYS HEALTH TRUST TO BE ADMINISTERED BY THE FRANCHISED CORPORATION FOR THE PURPOSE OF OBTAINING JOCKEY HEALTH BENEFITS FROM A S. 6409--C 73 A. 9009--C HEALTH INSURANCE PROVIDER THAT COVERS JOCKEYS AND THEIR DEPENDENTS WITH A HEALTH INSURANCE POLICY THAT IS NOT PURCHASED ON AN AMERICAN HEALTH BENEFIT EXCHANGE ESTABLISHED PURSUANT TO 42 U.S.C. S 18031(B) BUT DOES PROVIDE SILVER LEVEL COVERAGE OR LOWER AS DEFINED BY 42 U.S.C. S 18022(D); [c.]D. the payment of premiums PURSUANT TO THIS SECTION shall be made on behalf of eligible jockeys pursuant to paragraph [d] E of this subdi- vision by the franchised corporation from monies in the account estab- lished in subdivision one of this section directly to the health plan selected pursuant to paragraph b OR C of this subdivision; [d.]E. to be eligible to receive health insurance through this program, an individual must meet one of the following requirements: (i) have ridden in at least two hundred fifty races conducted by the franchised corporation during the prior calendar year or in at least one hundred fifty races conducted by any other corporation or association licensed pursuant to this article during the prior calendar year; provided, however, if an individual qualified for coverage in any prior year and fails to meet the qualification due to an injury not resulting in a permanent disability, that individual shall be deemed to have met the qualification; or (ii) have retired from racing on or after January first, two thousand ten after having ridden in at least seventy-five hundred races conducted by any corporation or association licensed pursuant to this article. For the purposes of this section, an individual shall be considered retired from racing if they have ridden in fewer than fifty races at any track in the nation licensed to conduct thoroughbred racing during the calen- dar year; or (iii) have become permanently disabled due to a racing accident while eligible to receive benefits or would become eligible to receive bene- fits in the following year pursuant to subparagraph (i) of this para- graph; provided, however, if an individual fails to meet the qualifica- tion of such subparagraph (i) due to an injury resulting in a permanent disability, that individual shall be deemed to have met the qualifica- tion; and [e.]F. the gaming commission shall have the following powers: (i) to rule on eligibility in the event of a denial of coverage pursu- ant to paragraph [d] E of this subdivision. In the event of a denial of coverage, such individual denied eligibility may appeal to the gaming commission; (ii) to make a determination if an individual would have qualified pursuant to subparagraph (i) of paragraph [d] E of this subdivision in the event that the individual suffers an injury and contends that he or she would have qualified had they not suffered such injury; and (iii) to audit the books and records of the program. S 2. This act shall take effect immediately. PART PP Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part VV of chapter 59 of the laws of 2015, is amended to read as follows: In order to pay the costs of the insurance required by this section and by the workers' compensation law and to carry out its other powers and duties and to pay for any of its liabilities under section four- teen-a of the workers' compensation law, the New York Jockey Injury S. 6409--C 74 A. 9009--C Compensation Fund, Inc. shall ascertain the total funding necessary and establish the sums that are to be paid by all owners and trainers licensed or required to be licensed under section two hundred twenty of this article, to obtain the total funding amount required annually. In order to provide that any sum required to be paid by an owner or trainer is equitable, the fund shall establish payment schedules which reflect such factors as are appropriate, including where applicable, the geographic location of the racing corporation at which the owner or trainer participates, the duration of such participation, the amount of any purse earnings, the number of horses involved, or such other factors as the fund shall determine to be fair, equitable and in the best inter- ests of racing. In no event shall the amount deducted from an owner's share of purses exceed two per centum; PROVIDED, HOWEVER, FOR TWO THOU- SAND SIXTEEN THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. MAY USE UP TO TWO MILLION DOLLARS FROM THE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE TO PAY THE ANNUAL COSTS REQUIRED BY THIS SECTION AND THE FUNDS FROM SUCH ACCOUNT SHALL NOT COUNT AGAINST THE TWO PER CENTUM OF PURSES DEDUCTED FROM AN OWNER'S SHARE OF PURSES. The amount deducted from an owner's share of purses shall not exceed one per centum after April first, two thousand seventeen. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required. S 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as added by chapter 18 of the laws of 2008, is amended to read as follows: (a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by the individual horseman. FOR TWO THOUSAND SIXTEEN THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. MAY USE UP TO TWO MILLION DOLLARS FROM THE ACCOUNT ESTABLISHED PURSUANT TO THIS SUBDIVISION TO PAY THE ANNUAL COSTS REQUIRED BY SECTION TWO HUNDRED TWENTY-ONE OF THIS ARTICLE. S 3. This act shall take effect immediately. PART QQ Section 1. Subdivision 4 of section 400 of the economic development law is amended by adding a new paragraph (e) to read as follows: (E) PROVIDED, HOWEVER THAT THE REQUIREMENT IN PARAGRAPH (A) OF THIS SUBDIVISION THAT THE PARTICIPANT BE A NEW BUSINESS SHALL NOT APPLY TO A CLOSED FACILITY AS DEFINED IN PARAGRAPH (D) OF SUBDIVISION ELEVEN OF THIS SECTION. S 2. Subdivision 10 of section 400 of the economic development law is amended by adding a new paragraph (d) to read as follows: (D) NOTWITHSTANDING PARAGRAPH (B) OF THIS SUBDIVISION, WITH RESPECT TO A CLOSED FACILITY DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ELEVEN OF THIS SECTION, THE ECONOMIC TRANSFORMATION AREA SHALL CONSIST ONLY OF THE ACREAGE OF THE CLOSED FACILITY. S 3. Subdivision 11 of section 400 of the economic development law, as added by section 2 of part V of chapter 61 of the laws of 2011, is amended to read as follows: 11. "Closed facility" means: (a) a correctional facility, as defined in paragraph (a) of subdivi- sion four of section two of the correction law, that has been selected S. 6409--C 75 A. 9009--C by the governor of the state of New York for closure after April first, two thousand eleven but no later than March thirty-first, two thousand twelve; or (b) a facility operated by the office of children and family services under article nineteen-G of the executive law that is closed pursuant to authority granted to such office in a chapter of the laws of two thou- sand eleven; [and] OR (c) which has been closed provided that the commissioner of correc- tional services or the commissioner of the office of children and family services has notified the commissioner of such closure[.]; OR (D) A FACILITY PREVIOUSLY OWNED BY THE STATE, AND WHEN OPERATED, WAS OPERATED AS A PSYCHIATRIC FACILITY PURSUANT TO SECTION 7.17 OF THE MENTAL HYGIENE LAW, AND LOCATED WITHIN THE METROPOLITAN COMMUTER TRANS- PORTATION DISTRICT BUT OUTSIDE NEW YORK CITY. S 4. Subdivision 1 of section 402 of the economic development law, as added by section 2 of part V of chapter 61 of the laws of 2011, is amended to read as follows: 1. A business entity must submit a completed application as prescribed by the commissioner by the later of (a) the date that is three years after the date of the closure of the closed facility located in the economic transformation area in which the business entity would operate or (b) January first, two thousand fifteen. PROVIDED HOWEVER, IN THE CASE OF A CLOSED FACILITY DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED OF THIS ARTICLE, A BUSINESS ENTITY MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER BY SEPTEMBER FIRST, TWO THOUSAND SIXTEEN. S 5. Paragraph 1 of subdivision (h) of section 35 of the tax law, as added by section 3 of part V of chapter 61 of the laws of 2011, is amended to read as follows: (1) A taxpayer which meets the requirements in this section shall be eligible to claim a credit on qualified investments with respect to the project for which the certificate of eligibility is issued. The credit shall be equal to ten percent of the cost or other basis for federal income tax purposes of the qualified investment at a closed facility. PROVIDED HOWEVER, FOR PURPOSES OF THIS CREDIT ONLY, A TAXPAYER THAT IS THE OWNER OF A CLOSED FACILITY DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED OF THE ECONOMIC DEVELOPMENT LAW, SHALL BE ALLOWED TO INCLUDE IN ITS COST OR OTHER BASIS OF THE QUALIFIED INVEST- MENT AT THE CLOSED FACILITY, ANY DEMOLITION COSTS INCURRED AT SUCH CLOSED FACILITY. THOSE DEMOLITION COSTS SHALL BE LIMITED TO THE FOLLOW- ING COSTS: (I) ASBESTOS REMOVAL COSTS, (II) RENTAL OF DEMOLITION EQUIP- MENT, (III) PERSONNEL COSTS TO OPERATE THE DEMOLITION EQUIPMENT, (IV) COSTS TO REMOVE AND DISPOSE OF DEMOLITION DEBRIS, (V) THE COSTS OF ANY PERMITS, LICENSES AND INSURANCE NECESSARY FOR THE DEMOLITION. The total amount of investment tax credit allowed for all eligible participants under this subdivision for qualified investments located at each closed facility shall not exceed eight million dollars. The credit shall be equal to six percent of the cost or other basis for federal income tax purposes for all other qualified investments, but the credit allowed to a taxpayer may not exceed four million dollars. S 6. This act shall take effect immediately, provided however, that the amendments made to sections 400 and 402 of the economic development law by sections one, two, three and four of this act and section 35 of the tax law made by section five of this act shall not affect the repeal of such sections and shall be deemed repealed therewith. S. 6409--C 76 A. 9009--C PART RR Section 1. The tax law is amended by adding a new section 42 to read as follows: S 42. FARM WORKFORCE RETENTION CREDIT. (A) A TAXPAYER THAT IS A FARM EMPLOYER OR AN OWNER OF A FARM EMPLOYER SHALL BE ELIGIBLE FOR A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (G) OF THIS SECTION. (B) A FARM EMPLOYER IS A CORPORATION (INCLUDING A NEW YORK S CORPO- RATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY COMPANY OR A PART- NERSHIP WHO IS ALSO AN ELIGIBLE FARMER. (C) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR IN EXCESS OF THIRTY THOUSAND DOLLARS. FOR THE PURPOSES OF THIS SUBDIVISION, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. (D) AN ELIGIBLE FARM EMPLOYEE IS AN INDIVIDUAL WHO IS EMPLOYED FOR FIVE HUNDRED HOURS OR MORE PER TAXABLE YEAR, BY A FARM EMPLOYER IN NEW YORK STATE, BUT EXCLUDING GENERAL EXECUTIVE OFFICERS OF THE FARM EMPLOY- ER; PROVIDED, HOWEVER, THAT WHERE AN INDIVIDUAL EMPLOYED BY A FARM EMPLOYER IN NEW YORK STATE BECOMES UNABLE TO WORK DUE TO A DOCUMENTED ILLNESS OR DISABILITY, THE HOURS SUCH INDIVIDUAL IS EMPLOYED MAY BE COMBINED WITH THE HOURS WORKED BY AN INDIVIDUAL HIRED TO REPLACE SUCH INDIVIDUAL WHEN DETERMINING WHETHER THE FIVE HUNDRED HOUR THRESHOLD HAS BEEN MET. (E) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND TWO HUNDRED FIFTY DOLLARS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND THREE HUNDRED DOLLARS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND FIVE HUNDRED DOLLARS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND FOUR HUNDRED DOLLARS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND SIX HUNDRED DOLLARS. (F) A TAXPAYER CLAIMING THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT BE ALLOWED TO CLAIM ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER WITH RESPECT TO ANY ELIGIBLE FARM EMPLOYEE INCLUDED IN THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES USED TO DETERMINE THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION. S. 6409--C 77 A. 9009--C (G) CROSS REFERENCES: FOR APPLICATION OF THE CREDIT PROVIDED IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 51. (2) ARTICLE 22: SECTION 606, SUBSECTION (EEE). S 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 51 to read as follows: 51. FARM WORKFORCE RETENTION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. (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 CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM 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. 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) FARM WORKFORCE RETENTION AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (EEE) SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B S 4. Section 606 of the tax law is amended by adding a new subsection (eee) to read as follows: (EEE) FARM WORKFORCE RETENTION CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF THIS CHAP- TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISION OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. S 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, 2022. PART SS Section 1. Section 1617-a of the tax law, as amended by section 2 of part Z-3 of chapter 62 of the laws of 2003, subdivision a as amended by section 2 and subdivision e as added by section 3 of part O-1 of chapter 57 of the laws of 2009, subdivision b and paragraph 3 of subdivision f as amended by chapter 137 of the laws of 2014, paragraph 4 of subdivi- sion a and subdivision (h) as added by chapter 174 of the laws of 2013, subdivision f as added by section 2 of part O of chapter 61 of the laws of 2011, and subdivision g as amended by section 5 of part EE of chapter 59 of the laws of 2014, is amended to read as follows: S 1617-a. Video lottery gaming. a. The [division of the lottery] GAMING COMMISSION is hereby authorized to license, pursuant to rules and S. 6409--C 78 A. 9009--C regulations to be promulgated by the [division of the lottery] GAMING COMMISSION, the operation of video lottery gaming at; (1) Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs racetracks[, or at]; (2) any other racetrack licensed pursuant to article three of the racing, pari-mutuel wagering and breeding law [that are] located in a county or counties in which video lottery gaming has been authorized pursuant to local law, excluding the licensed racetrack commonly referred to in article three of the racing, pari-mutuel wagering and breeding law as the "New York state exposition" held in Onondaga county and the racetracks of the non-profit racing association known as Belmont Park racetrack and the Saratoga thoroughbred racetrack[.]; (3) A MAXIMUM OF TWO FACILITIES, WHICH SHALL BE VENDORS FOR ALL PURPOSES UNDER THIS ARTICLE, NEITHER TO EXCEED ONE THOUSAND VIDEO LOTTERY GAMING DEVICES, ESTABLISHED WITHIN REGION THREE OF ZONE ONE AS DEFINED BY SECTION ONE THOUSAND THREE HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, ONE EACH OPERATED BY A CORPO- RATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE SUFFOLK REGION AND THE NASSAU REGION TO BE LOCATED WITHIN A FACILITY AUTHORIZED PURSUANT TO SECTIONS ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW; AND (4) AQUEDUCT RACETRACK, WITHIN THE LOTTERY TERMINAL FACILITY, PURSUANT TO AN AGREEMENT BETWEEN THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE NASSAU REGION AND THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK, WHEN SUCH AGREEMENT IS APPROVED BY THE GAMING COMMISSION AND AS LONG AS SUCH AGREEMENT IS IN PLACE, AND WHEN SUCH AGREEMENT IS ACCOM- PANIED BY A DETAILED SPENDING PLAN FOR THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE NASSAU REGION, WHICH INCLUDES A PLAN FOR THE TIMELY PAYMENT OF LIABILITIES DUE TO THE FRANCHISED CORPORATION, AND WHEN SUCH VIDEO LOTTERY DEVICES ARE HOSTED BY THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK ON BEHALF OF THE CORPORATION ESTAB- LISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE NASSAU REGION IN LIEU OF THE DEVELOP- MENT OF A FACILITY IN NASSAU COUNTY AS AUTHORIZED BY PARAGRAPH THREE OF SUBDIVISION A OF THIS SECTION. SUCH AGREEMENT REACHED BY THE PARTIES SHALL IDENTIFY THE AGENCY PRINCIPALLY RESPONSIBLE FOR FUNDING, APPROVING OR UNDERTAKING ANY ACTIONS OF SUCH AGREEMENT. PROVIDED, HOWEVER, NOTHING IN THIS PARAGRAPH SHALL INFRINGE UPON THE RIGHTS OF THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW IN THE NASSAU REGION TO DEVELOP A FACILI- TY PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION UPON THE EXPIRATION, TERMINATION, OR WITHDRAWAL OF SUCH AGREEMENT. B. Such rules and regulations shall provide, as a condition of licen- sure, that racetracks to be licensed are certified to be in compliance with all state and local fire and safety codes, that the [division] GAMING COMMISSION is afforded adequate space, infrastructure, and amen- ities consistent with industry standards for such video LOTTERY gaming operations as found at racetracks in other states, that racetrack employees involved in the operation of video lottery gaming pursuant to this section are licensed by the [racing and wagering board,] GAMING COMMISSION and such other terms and conditions of licensure as the [division] GAMING COMMISSION may establish. Notwithstanding any incon- sistent provision of law, video lottery gaming at a racetrack pursuant S. 6409--C 79 A. 9009--C to this section shall be deemed an approved activity for such racetrack under the relevant city, county, town, or village land use or zoning ordinances, rules, or regulations. No entity licensed by the [division] GAMING COMMISSION operating video lottery gaming pursuant to this section may house such gaming activity in a structure deemed or approved by the division as "temporary" for a duration of longer than eighteen- months. Nothing in this section shall prohibit the [division] GAMING COMMISSION from licensing an entity to operate video lottery gaming at an existing racetrack as authorized in this subdivision whether or not a different entity is licensed to conduct horse racing and pari-mutuel wagering at such racetrack pursuant to article two or three of the racing, pari-mutuel wagering and breeding law. The [division, in consultation with the racing and wagering board,] GAMING COMMISSION shall establish standards for approval of the tempo- rary and permanent physical layout and construction of any facility or building devoted to a video lottery gaming operation. In reviewing such application for the construction or reconstruction of facilities related or devoted to the operation or housing of video lottery gaming oper- ations, the [division, in consultation with the racing and wagering board,] GAMING COMMISSION shall ensure that such facility: (1) possesses superior consumer amenities and conveniences to encour- age and attract the patronage of tourists and other visitors from across the region, state, and nation. (2) has adequate motor vehicle parking facilities to satisfy patron requirements. (3) has a physical layout and location that facilitates access to and from the horse racing track portion of such facility to encourage patro- nage of live horse racing events that are conducted at such track. [(4) at a maximum of two facilities, neither to exceed one thousand video lottery gaming devices, established within region three of zone one as defined by section one thousand three hundred ten of the racing, pari-mutuel wagering and breeding law, one each operated by a corpo- ration established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Suffolk region and the Nassau region to be located within a facility authorized pursuant to sections one thousand eight or one thousand nine of the racing, pari-mu- tuel wagering and breeding law.] C. The [facilities] TERMINALS author- ized pursuant to [this] paragraph FOUR OF SUBDIVISION A OF THIS SECTION shall [be deemed vendors for all purposes under this article.]: (I) BE DEEMED AS OPERATED BY THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED- ING LAW IN THE NASSAU REGION FOR THE PURPOSES OF SECTION SIXTEEN HUNDRED TWELVE OF THIS CHAPTER AND THE DISTRIBUTIONS THEREFROM MADE AS IF THE VIDEO LOTTERY DEVICES WERE LOCATED IN NASSAU COUNTY; (II) CONSIST EXCLUSIVELY OF ELECTRONIC TABLE GAMES, UNLESS OTHERWISE APPROVED BY THE GAMING COMMISSION AND THE DIRECTOR OF THE DIVISION OF THE BUDGET; AND (III) BE INDIVIDUALLY DESIGNATED AS HOSTED. D. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, ABSENT THE ENACTMENT OF SUFFICIENT ALTERNATIVE REVENUE SOURCES FOR THE FRAN- CHISED CORPORATION IN A CHAPTER OF LAW PROVIDING A STATUTORY PLAN FOR THE PROSPECTIVE NOT-FOR-PROFIT GOVERNING STRUCTURE OF THE NEW YORK RACING ASSOCIATION, INC., ANY AGREEMENT FOR THE OPERATION OF TERMINALS AUTHORIZED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF THIS SECTION SHALL REQUIRE THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK TO MAINTAIN RACING SUPPORT FOR GENERAL THOROUGHBRED RACING OPERATIONS S. 6409--C 80 A. 9009--C AND CAPITAL EXPENDITURES FROM VIDEO LOTTERY GAMING AT AQUEDUCT RACE- TRACK, AT THE SAME LEVEL REALIZED IN TWO THOUSAND THIRTEEN, TO BE ADJUSTED BY THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS. [b.] E. Video lottery gaming shall only be permitted for no more than twenty consecutive hours per day and on no day shall such operation be conducted past 6:00 a.m. [c.] F. The [division] GAMING COMMISSION shall promulgate such rules and regulations as may be necessary for the implementation of video lottery gaming in accordance with the provisions of this section and paragraph five of subdivision a of section sixteen hundred twelve of this article. [d.] G. All workers engaged in the construction, reconstruction, development, rehabilitation, or maintenance of any area for the purpose of the installation, maintenance, or removal of video lottery GAMING terminals shall be subject to the provisions of articles eight and nine of the labor law to the extent provided in such articles. [e.] H. The [division] GAMING COMMISSION shall not approve the construction or alteration of any facility or building devoted to the operation or housing of video lottery gaming until the person or entity selected to operate such video lottery gaming shall have submitted to the [division] GAMING COMMISSION a statement of the location of the proposed facility or building, together with a plan of such racetrack, and plans of all existing buildings, seating stands and other structures on the grounds of such racetrack, in such form as the [division] GAMING COMMISSION may prescribe, and such plans shall have been approved by the [division] GAMING COMMISSION. The [division] GAMING COMMISSION, at the expense of the applicant, may order such engineering examination thereof as the [division] GAMING COMMISSION may deem necessary. Such construction or alteration may be made only with the approval of the [division] GAMING COMMISSION and after examination and inspection of the plans thereof and the issuance of a permit [therefor] by the [division] GAMING COMMISSION. [f.] I. (1) The [division] GAMING COMMISSION may administer a free play allowance program to offer players or prospective players of video lottery games free play credits for the purpose of increasing revenues earned by the video lottery GAMING program for the support of education. For the purposes of this subdivision, "free play allowance credit" means a specified dollar amount that (i) may be used by a player to play a video lottery game without paying any other consideration, and (ii) is not used in the calculation of total revenue wagered after payout of prizes. (2) For each video lottery GAMING facility, the [division] GAMING COMMISSION shall authorize the use of free play allowance credits if the operator of such facility submits a written plan for the use of the free play allowance that the [division] GAMING COMMISSION determines is designed to increase the amount of revenue earned by video lottery gaming at such facility for the support of education. (3) For each video lottery facility, the annual value of the free play allowance credits authorized for use by the operator pursuant to this subdivision shall not exceed an amount equal to fifteen percent of the total amount wagered on video lottery games after payout of prizes. The [division] GAMING COMMISSION shall establish procedures to assure that free play allowance credits do not exceed such amount. S. 6409--C 81 A. 9009--C (4) The [division] GAMING COMMISSION, in conjunction with the director of the budget, may suspend the use of free play allowance credits authorized pursuant to this subdivision whenever they jointly determine that the use of free play allowance credits are not effective in increasing the amount of revenue earned for the support of education, and such use may not be resumed unless the operator of such facility submits a new or revised written plan for the use of the free play allowance that the [division] GAMING COMMISSION determines is designed more effectively to produce an increase in the amount of revenue earned by video lottery gaming at such facility for the support of education. (5) Nothing in this subdivision shall be deemed to prohibit the opera- tor of a video lottery facility from offering free play credits to play- ers or prospective players of video lottery games when the value of such free play credits is included in the calculation of the total amount wagered on video lottery games and the total amount wagered after payout of prizes, and the operator of such facility pays the [division] GAMING COMMISSION the full amount due as the result of such calculations. (6) The [division] GAMING COMMISSION may amend the contract with the provider of the central computer system that controls the video lottery network during the term of such contract in effect on the effective date of this subdivision to provide additional consideration to such provider in an amount determined by the [division] GAMING COMMISSION to be neces- sary to compensate for (i) processing free play allowance transactions and (ii) system updates and modifications otherwise needed as of such effective date. [g.] J. Every video lottery gaming license, and every renewal license, shall be valid for a period of five years, except that video LOTTERY gaming licenses issued before the effective date of this subdivision shall be for a term expiring on the applicant's next birthday following June thirtieth, two thousand fourteen. The gaming commission may decline to renew any license after notice and an opportunity for hearing if it determines that: (1) the licensee has violated section one thousand six hundred seven of this article; (2) the licensee has violated any rule, regulation or order of the gaming commission; (3) the applicant or its officers, directors or significant stockhold- ers, as determined by the gaming commission, have been convicted of a crime involving moral turpitude; or (4) that the character or fitness of the licensee and its officers, directors, and significant stockholders, as determined by the gaming commission is such that the participation of the applicant in video lottery gaming or related activities would be inconsistent with the public interest, convenience or necessity or with the best interests of video LOTTERY gaming generally. [(h)] K. The gaming commission, subject to notice and an opportunity for hearing, may revoke, suspend, and condition the license of the video LOTTERY gaming licensee, order the video LOTTERY gaming licensee to terminate the continued appointment, position or employment of officers and directors, or order the video LOTTERY gaming licensee to require significant stockholders to divest themselves of all interests in the video LOTTERY gaming licensee. S 2. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by section 1 of part MM of chapter 59 of the laws of 2015, is amended to read as follows: S. 6409--C 82 A. 9009--C (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of this subparagraph, the track operator of a vendor track AND IN THE CASE OF AQUEDUCT, THE VIDEO LOTTERY TERMINAL FACILITY OPERATOR, shall be eligible for a vendor's capital award of up to four percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which shall be used exclusively for capital project investments to improve the facilities of the vendor track which promote or encourage increased attendance at the video lottery gaming facility including, but not limited to hotels, other lodging facilities, enter- tainment facilities, retail facilities, dining facilities, events arenas, parking garages and other improvements that enhance facility amenities; provided that such capital investments shall be approved by the division, in consultation with the state racing and wagering board, and that such vendor track demonstrates that such capital expenditures will increase patronage at such vendor track's facilities and increase the amount of revenue generated to support state education programs. The annual amount of such vendor's capital awards that a vendor track shall be eligible to receive shall be limited to two million five hundred thousand dollars, except for Aqueduct racetrack, for which there [shall be no vendor's capital awards] SHALL BE NO ANNUAL LIMIT, PROVIDED, HOWEVER, THAT ANY SUCH CAPITAL AWARD FOR THE AQUEDUCT VIDEO LOTTERY TERMINAL FACILITY OPERATOR SHALL BE ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY TERMINAL FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS CHAPTER OR APRIL FIRST, TWO THOUSAND NINETEEN AND SHALL THEN BE FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY TERMINAL FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER, PROVIDED, FURTHER, THAT SUCH CAPITAL AWARD SHALL ONLY BE PROVIDED PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILITY, HOTEL, AND CONVEN- TION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS. Except for tracks having less than one thousand one hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, AND EXCEPT FOR AQUEDUCT RACETRACK each track operator shall be required to co-invest an amount of capital expenditure equal to its cumulative vendor's capital award. For all tracks, except for Aqueduct racetrack, the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand sixteen. Any amount attributable to a capital expenditure approved prior to April first, two thousand sixteen and completed before April first, two thousand eigh- teen; or approved prior to April first, two thousand twenty and completed before April first, two thousand twenty-two for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligible to receive the vendor's capi- tal award. In the event that a vendor track's capital expenditures, approved by the division prior to April first, two thousand sixteen and completed prior to April first, two thousand eighteen, exceed the vendor track's cumulative capital award during the five year period ending April first, two thousand sixteen, the vendor shall continue to receive the capital award after April first, two thousand sixteen until such approved capital expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph S. 6409--C 83 A. 9009--C be eligible for a vendor's capital award under this section. Any opera- tor of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with generally accepted accounting principles, shall reim- burse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand sixteen shall be deposited into the state lottery fund for education aid; and S 3. Section 503 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 14 to read as follows: 14. NASSAU REGIONAL OFF-TRACK BETTING IS AUTHORIZED TO ENTER INTO AND PERFORM AN AGREEMENT PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW TO HAVE VIDEO LOTTERY TERMINALS AUTHORIZED PURSUANT TO PARAGRAPH THREE OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW HOSTED WITHIN THE AQUEDUCT VIDEO LOTTERY TERMINAL FACILITY. S 4. This act shall take effect immediately, provided, however, that section two of this act shall take effect upon the designation of four hundred video lottery devices as hosted pursuant to paragraph (4) of subdivision a of section 1617-a of the tax law, as added by section one of this act; provided, further, that the New York State gaming commis- sion shall notify the legislative bill drafting commission upon the occurrence of the enactment of the legislation provided for in section two of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public offi- cers law. PART TT Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law is REPEALED and a new subparagraph (B) is added to read as follows: (B)(I) FOR TAX YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE BRACKETS AND DOLLARS AMOUNTS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN, SHALL APPLY. IN ADDITION, THE TAX RATES IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL APPLY, EXCEPT AS NOTED IN CLAUSE (II) OF THIS SUBPARAGRAPH, AND EXCEPT THAT THE RATE APPLICABLE TO NEW YORK TAXABLE INCOMES IN EXCESS OF $300,000 AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN, SHALL BE THE HIGHEST TAX RATE SPECIFIED IN THE PROVISIONS OF THIS SUBPARAGRAPH AS ENACTED BY CHAPTER FIFTY-NINE OF THE LAWS OF TWO THOU- SAND THIRTEEN PRIOR TO ITS REPEAL BY A CHAPTER OF THE LAWS OF TWO THOU- SAND SIXTEEN THAT ADDED THIS SUBPARAGRAPH. FOR PURPOSES OF CLAUSE (II) OF THIS SUBPARAGRAPH, THE BRACKETS SPECIFIED SHALL BE AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN. AFTER MAKING THE COST OF LIVING ADJUSTMENTS TO THE DOLLAR AMOUNTS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE DOLLAR AMOUNTS IN THE TAX CALCULATIONS FOR THE INCOME BRACKETS FOR NEW YORK TAXABLE INCOME S. 6409--C 84 A. 9009--C OVER $26,000 SHALL BE ADJUSTED TO REFLECT THE RATE REDUCTIONS IN CLAUSE (II) OF THIS SUBPARAGRAPH. (II) (I) FOR TAX YEAR TWO THOUSAND EIGHTEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $40,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $40,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 6.33%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.57%. (II) FOR TAX YEAR TWO THOUSAND NINETEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $40,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $40,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 6.21%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.49%. (III) FOR TAX YEAR TWO THOUSAND TWENTY, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $40,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $40,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 6.09%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.41%. (IV) FOR TAX YEAR TWO THOUSAND TWENTY-ONE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $40,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $40,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 5.97%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.33%. (V) FOR TAX YEAR TWO THOUSAND TWENTY-TWO, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 5.85%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.25%. (VI) FOR TAX YEAR TWO THOUSAND TWENTY-THREE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 5.73%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.17%. (VII) FOR TAX YEAR TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 5.61%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.09%. (VIII) FOR TAX YEARS AFTER TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $26,000 BUT NOT OVER $150,000, THE TAX RATE SHALL BE 5.50%. IF NEW YORK TAXABLE INCOME IS OVER $150,000 BUT NOT OVER $300,000, THE TAX RATE SHALL BE 6.00%. S 2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law is REPEALED and a new subparagraph (B) is added to read as follows: (B) (I) FOR TAX YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE BRACKETS AND DOLLARS AMOUNTS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN, SHALL APPLY. IN ADDITION, THE TAX RATES IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL APPLY, EXCEPT AS NOTED IN CLAUSE (II) OF THIS SUBPARAGRAPH, AND EXCEPT THAT THE RATE APPLICABLE TO NEW YORK TAXABLE INCOMES IN EXCESS OF $250,000 AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN SHALL BE THE HIGHEST TAX RATE SPECIFIED IN THE PROVISIONS OF THIS S. 6409--C 85 A. 9009--C SUBPARAGRAPH AS ENACTED BY CHAPTER FIFTY-NINE OF THE LAWS OF TWO THOU- SAND THIRTEEN PRIOR TO ITS REPEAL BY A CHAPTER OF THE LAWS OF TWO THOU- SAND SIXTEEN THAT ADDED THIS SUBPARAGRAPH. FOR PURPOSES OF CLAUSE (II) OF THIS SUBPARAGRAPH, THE BRACKETS SPECIFIED SHALL BE AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN. AFTER MAKING THE COST OF LIVING ADJUSTMENTS TO THE DOLLAR AMOUNTS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE DOLLAR AMOUNTS IN THE TAX CALCULATIONS FOR THE INCOME BRACKETS FOR NEW YORK TAXABLE INCOME OVER $19,500 SHALL BE ADJUSTED TO REFLECT THE RATE REDUCTIONS IN CLAUSE (II) OF THIS SUBPARAGRAPH. (II) (I) FOR TAX YEAR TWO THOUSAND EIGHTEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $30,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $30,000 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 6.33%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.57%. (II) FOR TAX YEAR TWO THOUSAND NINETEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $30,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $30,000 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 6.21%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.49%. (III) FOR TAX YEAR TWO THOUSAND TWENTY, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $30,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $30,000 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 6.09%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.41%. (IV) FOR TAX YEAR TWO THOUSAND TWENTY-ONE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $30,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $30,000 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 5.97%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.33%. (V) FOR TAX YEAR TWO THOUSAND TWENTY-TWO, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 5.85%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.25%. (VI) FOR TAX YEAR TWO THOUSAND TWENTY-THREE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 5.73%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.17%. (VII) FOR TAX YEAR TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 5.61%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.09%. (VIII) FOR TAX YEARS AFTER TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $19,500 BUT NOT OVER $100,000, THE TAX RATE SHALL BE 5.50%. IF NEW YORK TAXABLE INCOME IS OVER $100,000 BUT NOT OVER $250,000, THE TAX RATE SHALL BE 6.00%. S 3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law is REPEALED and a new subparagraph (B) is added to read as follows: (B)(I) FOR TAX YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE BRACKETS AND DOLLARS AMOUNT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, AS S. 6409--C 86 A. 9009--C ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN, SHALL APPLY. IN ADDITION, THE TAX RATES IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL APPLY, EXCEPT AS NOTED IN CLAUSE (II) OF THIS SUBPARAGRAPH, AND EXCEPT THAT THE RATE APPLICABLE TO NEW YORK TAXABLE INCOME IN EXCESS OF $200,000 AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN SHALL BE THE HIGHEST TAX RATE SPECIFIED IN THE PROVISIONS OF THIS SUBPARAGRAPH AS ENACTED BY CHAPTER FIFTY-NINE OF THE LAWS OF TWO THOUSAND THIRTEEN PRIOR TO ITS REPEAL BY A CHAPTER OF THE LAWS OF TWO THOUSAND SIXTEEN THAT ADDED THIS SUBPARAGRAPH. FOR PURPOSES OF CLAUSE (II) OF THIS SUBPARAGRAPH, THE BRACKETS SPECIFIED SHALL BE AS ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN THROUGH TWO THOUSAND SEVENTEEN. AFTER MAKING THE COST OF LIVING ADJUSTMENTS TO THE DOLLAR AMOUNTS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE DOLLAR AMOUNTS IN THE TAX CALCU- LATIONS FOR THE INCOME BRACKETS FOR NEW YORK TAXABLE INCOME OVER $13,000 SHALL BE ADJUSTED TO REFLECT THE RATE REDUCTIONS IN CLAUSE (II) OF THIS SUBPARAGRAPH. (II)(I) FOR TAX YEAR TWO THOUSAND EIGHTEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $20,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $20,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 6.33%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.57%. (II) FOR TAX YEAR TWO THOUSAND NINETEEN, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $20,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $20,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 6.21%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.49%. (III) FOR TAX YEAR TWO THOUSAND TWENTY, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $20,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $20,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 6.09%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.41%. (IV) FOR TAX YEAR TWO THOUSAND TWENTY-ONE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $20,000, THE TAX RATE SHALL BE 5.90%. IF NEW YORK TAXABLE INCOME IS OVER $20,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 5.97%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.33%. (V) FOR TAX YEAR TWO THOUSAND TWENTY-TWO, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 5.85%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.25%. (VI) FOR TAX YEAR TWO THOUSAND TWENTY-THREE, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 5.73%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.17%. (VII) FOR TAX YEAR TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 5.61%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.09%. S. 6409--C 87 A. 9009--C (VIII) FOR TAX YEARS AFTER TWO THOUSAND TWENTY-FOUR, THE FOLLOWING TAX RATES SHALL APPLY: IF NEW YORK TAXABLE INCOME IS OVER $13,000 BUT NOT OVER $75,000, THE TAX RATE SHALL BE 5.50%. IF NEW YORK TAXABLE INCOME IS OVER $75,000 BUT NOT OVER $200,000, THE TAX RATE SHALL BE 6.00%. S 4. The opening paragraph of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: Alternative tax table benefit recapture. Notwithstanding the provisions of subsection (d) of this section, for taxable years begin- ning after two thousand eleven [and before two thousand eighteen], there is hereby imposed a supplemental tax in addition to the tax imposed under subsections (a), (b) and (c) of this section for the purpose of recapturing the benefit of the tax tables contained in such subsections. During these taxable years, any reference in this chapter to subsection (d) of this section shall be read as a reference to this subsection. S 5. The opening paragraph of paragraph 1 of subsection (d-1) of section 601 of the tax law, as added by section 7 of part A of chapter 56 of the laws of 2011, is amended to read as follows: For resident married individuals filing joint returns and resident surviving spouses, the supplemental tax shall be an amount equal to the sum of the tax table benefits described in subparagraphs (A), (B), (C) and (D) of this paragraph multiplied by their respective fractions in such subparagraphs. FURTHERMORE, IN MAKING THE CALCULATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION SHALL BE SUBSTI- TUTED FOR THE RATES REFERENCED IN THESE SUBPARAGRAPHS. S 6. The opening paragraph of paragraph 2 of subsection (d-1) of section 601 of the tax law, as added by section 7 of part A of chapter 56 of the laws of 2011, is amended to read as follows: For resident heads of households, the supplemental tax shall be an amount equal to the sum of the tax table benefits described in subpara- graphs (A), (B) and (C) of this paragraph multiplied by their respective fractions in such subparagraphs. FURTHERMORE, IN MAKING THE CALCU- LATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECI- FIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION SHALL BE SUBSTITUTED FOR THE RATES REFERENCED IN THESE SUBPARA- GRAPHS. S 7. The opening paragraph of paragraph 3 of subsection (d-1) of section 601 of the tax law, as added by section 7 of part A of chapter 56 of the laws of 2011, is amended to read as follows: For resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts, the supple- mental tax shall be an amount equal to the sum of the tax table benefits described in subparagraphs (A), (B) and (C) of this paragraph multiplied by their respective fractions in such subparagraphs. FURTHERMORE, IN MAKING THE CALCULATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION SHALL BE SUBSTITUTED FOR THE RATES REFERENCED IN THESE SUBPARAGRAPHS. S 8. Subsection (d-2) of section 601 of the tax law is REPEALED. S 9. Notwithstanding any provision in the state administrative proce- dure act to the contrary, the cost of living adjustment of the tax brackets and dollar amounts in the tax tables and the withholding tables S. 6409--C 88 A. 9009--C and methods required as a result of this act shall not be prescribed by regulation. S 10. This act shall take effect immediately. PART UU Section 1. Section 282 of the tax law is amended by adding a new subdivision 27 to read as follows: 27. "WHOLESALER OF MOTOR FUEL" MEANS ANY PERSON, FIRM, ASSOCIATION OR CORPORATION WHO OR WHICH: (1) IS NOT A DISTRIBUTOR OF MOTOR FUEL; (2) MAKES A SALE OF MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK; AND (3)(A) MAKES ANY PURCHASES OF MOTOR FUEL FOR RESALE WITHIN THE REGION SET FORTH IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH ONE OF SUBDI- VISION (E) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER; OR (B) MAKES ANY SALES OF MOTOR FUEL, OTHER THAN RETAIL SALES NOT IN BULK, WITHIN THE REGION SET FORTH IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER. FOR THE PURPOSES OF THIS ARTICLE WHEN USED WITH RESPECT TO MOTOR FUEL, A "RETAIL SALE NOT IN BULK" MEANS THE MAKING OR OFFERING TO MAKE ANY SALE OF MOTOR FUEL TO A CONSUMER OF SUCH FUEL WHICH IS DELIVERED DIRECTLY INTO A MOTOR VEHICLE FOR USE IN THE OPERATION OF SUCH VEHICLE. A "RETAIL SALE IN BULK" MEANS THE MAKING OR OFFERING TO MAKE ANY SALE OF MOTOR FUEL TO A CONSUMER WHICH IS OTHER THAN A "RETAIL SALE NOT IN BULK". S 2. The tax law is amended by adding a new section 283-d to read as follows: S 283-D. REGISTRATION OF WHOLESALERS OF MOTOR FUEL. (A) REGISTRATION REQUIRED. EACH WHOLESALER OF MOTOR FUEL MUST BE REGISTERED WITH THE DEPARTMENT UNDER THIS SECTION. NO WHOLESALER OF MOTOR FUEL SHALL MAKE A SALE OF MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK UNLESS SUCH WHOLESALER IS SO REGISTERED. THE DEPARTMENT, UPON THE APPLICATION OF A PERSON, SHALL REGISTER SUCH PERSON AS A WHOLESALER OF MOTOR FUEL EXCEPT THAT THE COMMISSIONER MAY REFUSE TO REGISTER AN APPLI- CANT FOR ANY OF THE GROUNDS SPECIFIED IN SUBDIVISION TWO OR FIVE OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE OR IN SUBDIVISION (C) OF THIS SECTION. THE APPLICATION SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE. ALL OF THE PROVISIONS OF SUBDIVISIONS TWO, FOUR, FIVE, SIX, SEVEN, EIGHT, NINE AND TEN OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE RELATING TO REGISTRA- TION OF DISTRIBUTORS SHALL BE APPLICABLE TO THE REGISTRATION OF WHOLE- SALERS OF MOTOR FUEL UNDER THIS SECTION WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH SUBDIVISIONS HAD BEEN INCORPORATED IN FULL IN THIS SECTION AND HAD EXPRESSLY REFERRED TO THE REGISTRATION OF WHOLE- SALERS OF MOTOR FUEL, WITH SUCH MODIFICATION AS MAY BE NECESSARY IN ORDER TO ADAPT THE LANGUAGE OF SUCH PROVISIONS TO THE PROVISIONS OF THIS SECTION, PROVIDED, SPECIFICALLY, THAT THE TERM "DISTRIBUTOR" SHALL BE READ AS "WHOLESALER OF MOTOR FUEL." PROVIDED, HOWEVER, THAT IF THE COMMISSIONER IS SATISFIED THAT THE REQUIREMENTS OF SUCH PROVISIONS FOR REGISTRATION ARE NOT NECESSARY IN ORDER TO PROTECT TAX REVENUES, THE COMMISSIONER MAY LIMIT OR MODIFY SUCH REQUIREMENTS WITH RESPECT TO ANY PERSON NOT REQUIRED TO BE REGISTERED AS A DISTRIBUTOR OF MOTOR FUEL. (B) BOND OR OTHER SECURITY. THE COMMISSIONER MAY REQUIRE A WHOLESALER OF MOTOR FUEL SEEKING A REGISTRATION TO FILE WITH THE DEPARTMENT A BOND ISSUED BY A SURETY COMPANY APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE OR OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN SUCH AMOUNT AS THE COMMISSIONER MAY FIX TO SECURE THE PERFORMANCE BY S. 6409--C 89 A. 9009--C SUCH WHOLESALER OF MOTOR FUEL OF THE DUTIES AND RESPONSIBILITIES REQUIRED (I) PURSUANT TO THIS ARTICLE AND (II) PURSUANT TO ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER WITH RESPECT TO MOTOR FUEL. THE COMMISSIONER MAY REQUIRE THAT SUCH A BOND OR OTHER SECURITY BE FILED BEFORE A WHOLESALER OF MOTOR FUEL IS REGISTERED, AND THE AMOUNT THEREOF MAY BE INCREASED AT ANY TIME WHEN IN THE COMMISSIONER'S JUDGMENT THE SAME IS NECESSARY. IF SECURITIES ARE DEPOSITED AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER AND MAY BE SOLD BY THE COMMISSIONER IF IT BECOMES NECESSARY SO TO DO IN ORDER TO RECOVER AGAINST SUCH WHOLE- SALER OF MOTOR FUEL BUT NO SUCH SALE SHALL BE HAD UNTIL AFTER SUCH WHOLESALER OF MOTOR FUEL SHALL HAVE HAD OPPORTUNITY TO LITIGATE THE VALIDITY OF THE LIABILITY IF IT ELECTS TO DO SO. UPON ANY SUCH SALE THE SURPLUS, IF ANY, ABOVE THE SUMS DUE SHALL BE RETURNED TO SUCH WHOLESALER OF MOTOR FUEL. THE DEPARTMENT, WHEN AUTHORIZED BY THE WHOLESALER OF MOTOR FUEL, SHALL FURNISH INFORMATION REGARDING THE REGISTRATION OF THE WHOLESALER OF MOTOR FUEL AND ANY OTHER INFORMATION WHICH THE WHOLESALER OF MOTOR FUEL AUTHORIZES IT TO DISCLOSE. (C) REFUSAL TO REGISTER. FOR THE PURPOSES OF DETERMINING WHETHER TO REFUSE AN APPLICATION FOR REGISTRATION UNDER THIS SECTION, THE REFER- ENCES IN SUBDIVISION TWO OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE TO EMPLOYEES OR SHAREHOLDERS UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF THE APPLICANT OR ANOTHER PERSON SHALL BE DEEMED TO ALSO INCLUDE AN EMPLOYEE UNDER A DUTY TO FILE A RETURN OR PAY TAXES UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF SUCH APPLICANT OR OTHER PERSON. IN ADDITION TO THE GROUNDS SPECIFIED IN SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTI- CLE, THE COMMISSIONER MAY REFUSE TO REGISTER AN APPLICANT WHERE THE COMMISSIONER ASCERTAINS THAT THE APPLICANT, AN OFFICER, DIRECTOR OR PARTNER OF THE APPLICANT, A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF SUCH APPLICANT (WHERE SUCH APPLICANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR AN EMPLOYEE OR SHARE- HOLDER OF SUCH APPLICANT WHO, AS SUCH EMPLOYEE OR SHAREHOLDER IS UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF THE APPLICANT; (1) HAS COMMITTED ANY OF THE ACTS OR OMISSIONS WHICH ARE, OR WAS CONVICTED AS, SPECIFIED IN SUBDIVISION (D) OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS; OR (2) WAS AN OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON, OR WHO DIRECTLY OR INDIRECTLY OWNED MORE THAN TEN PERCENT OF THE SHARES OF STOCK OF ANOTHER PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR WHO WAS AN EMPLOY- EE OR SHAREHOLDER OF ANOTHER PERSON UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF SUCH OTHER PERSON AT THE TIME SUCH OTHER PERSON COMMITTED ANY OF THE ACTS OR OMIS- SIONS WHICH ARE, OR WAS CONVICTED AS, SPECIFIED IN SUBDIVISION (D) OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS. (D) CANCELLATION OR SUSPENSION OF REGISTRATION. THE GROUNDS FOR A CANCELLATION OR SUSPENSION OF A REGISTRATION UNDER THIS SECTION AS A WHOLESALER OF MOTOR FUEL ARE THE SAME AS THOSE GROUNDS SPECIFIED IN SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE AND, IN ADDITION TO SUCH GROUNDS, THE FOLLOWING GROUNDS RELATING TO THIS ARTICLE SHALL APPLY: S. 6409--C 90 A. 9009--C (1) A REGISTRATION AS A WHOLESALER OF MOTOR FUEL MAY BE CANCELLED OR SUSPENDED IF THE COMMISSIONER DETERMINES THAT A REGISTRANT OR AN OFFI- CER, DIRECTOR OR PARTNER OF THE REGISTRANT, A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF SUCH REGISTRANT (WHERE SUCH REGISTRANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR AN EMPLOYEE OR SHAREHOLDER OF SUCH REGISTRANT UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF THE REGISTRANT (A) FAILS TO FILE OR MAINTAIN IN FULL FORCE AND EFFECT A BOND OR OTHER SECURITY WHEN REQUIRED PURSUANT TO SUBDIVISION (B) OF THIS SECTION OR WHEN THE AMOUNT THEREOF IS INCREASED, (B) FAILS TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTICLE OR ANY RULE OR REGULATION ADOPTED PURSUANT TO THIS ARTICLE BY THE COMMISSIONER, (C) KNOWINGLY AIDS AND ABETS ANOTHER PERSON IN VIOLATING ANY OF THE PROVISIONS OF THIS ARTICLE OR ANY RULE OR REGULATION ADOPTED PURSUANT TO THIS ARTICLE BY THE COMMISSIONER, (D) TRANSFERS ITS REGISTRATION AS A WHOLESALER OF MOTOR FUEL WITHOUT THE PRIOR WRITTEN APPROVAL OF THE COMMISSIONER, (E) WITH RESPECT TO A WHOLESALER OF MOTOR FUEL WHICH IS A CORPORATION, HAS BEEN DISSOLVED PURSUANT TO SECTION TWO HUNDRED THREE-A AND SUBDIVI- SION (D) OF SECTION THREE HUNDRED TEN OF THIS CHAPTER, (F) COMMITS FRAUD OR DECEIT IN HIS, HER OR ITS OPERATIONS AS A WHOLE- SALER OF MOTOR FUEL OR HAS COMMITTED FRAUD OR DECEIT IN PROCURING HIS, HER OR ITS REGISTRATION, (G) HAS IMPERSONATED ANY PERSON REPRESENTED TO BE A WHOLESALER OF MOTOR FUEL UNDER THIS ARTICLE BUT NOT IN FACT REGISTERED AS A WHOLESALER OF MOTOR FUEL, OR (H) HAS KNOWINGLY AIDED AND ABETTED THE DISTRIBUTION OF MOTOR FUEL, BY ANY PERSON WHICH SUCH REGISTRANT OR SUCH OTHER PERSON KNOWS HAS NOT BEEN REGISTERED BY THE COMMISSIONER AS REQUIRED UNDER THIS ARTICLE. (2) A REGISTRATION AS A WHOLESALER OF MOTOR FUEL MAY BE CANCELLED OR SUSPENDED IF THE COMMISSIONER DETERMINES THAT A REGISTRANT OR AN OFFI- CER, DIRECTOR OR PARTNER OF THE REGISTRANT, A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF SUCH REGISTRANT (WHERE SUCH REGISTRANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR AN EMPLOYEE OR SHAREHOLDER OF SUCH REGISTRANT UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF THE REGISTRANT, WAS AN OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON OR WAS A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF ANOTHER PERSON (WHERE SUCH OTHER PERSON IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR WAS AN EMPLOYEE OR SHAREHOLDER OF ANOTHER PERSON UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF SUCH OTHER PERSON AT THE TIME SUCH OTHER PERSON COMMITTED ANY OF THE ACTS SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION WITHIN THE PRECEDING FIVE YEARS. (E) CANCELLATION OR SUSPENSION OF REGISTRATION PRIOR TO A HEARING. THE GROUNDS FOR CANCELLING OR SUSPENDING A REGISTRATION AS A WHOLESALER OF MOTOR FUEL PRIOR TO A HEARING SHALL BE THE SAME AS THOSE SPECIFIED IN SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE S. 6409--C 91 A. 9009--C AND, IN ADDITION TO SUCH GROUNDS, THE FOLLOWING GROUNDS RELATING TO THIS ARTICLE SHALL APPLY: (1) THE FAILURE TO FILE A RETURN WITHIN TEN DAYS OF THE DATE PRESCRIBED FOR FILING A RETURN UNDER THIS ARTICLE IF THE REGISTRANT SHALL HAVE FAILED TO FILE SUCH RETURN WITHIN TEN DAYS AFTER THE DATE THE DEMAND THEREFOR IS SENT BY REGISTERED OR CERTIFIED MAIL TO THE ADDRESS OF THE WHOLESALER OF MOTOR FUEL GIVEN IN ITS APPLICATION, OR AN ADDRESS SUBSTITUTED THEREFOR AS PROVIDED IN SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE, (2) THE FAILURE TO CONTINUE TO MAINTAIN IN FULL FORCE AND EFFECT AT ALL TIMES THE BOND OR OTHER SECURITY REQUIRED TO BE FILED PURSUANT TO SUBDIVISION (B) OF THIS SECTION, PROVIDED, HOWEVER, THAT IF A SURETY BOND IS CANCELLED PRIOR TO EXPIRATION, THE COMMISSIONER MAY AFTER CONSIDERING ALL THE RELEVANT CIRCUMSTANCES MAKE SUCH OTHER ARRANGEMENTS, AND MAY REQUIRE THE FILING OF SUCH OTHER BOND OR OTHER SECURITY AS IT DEEMS APPROPRIATE, (3) THE TRANSFER OF A REGISTRATION AS A WHOLESALER OF MOTOR FUEL WITH- OUT THE PRIOR WRITTEN APPROVAL OF THE COMMISSIONER, OR (4) WITH RESPECT TO A WHOLESALER OF MOTOR FUEL WHICH IS A CORPORATION, THE DISSOLUTION OR ANNULMENT OF SUCH CORPORATION PURSUANT TO SECTION THREE HUNDRED TEN OF THIS CHAPTER. S 3. Section 287 of the tax law is amended by adding a new subdivision 3 to read as follows: 3. EVERY WHOLESALER OF MOTOR FUEL SHALL, ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, FILE WITH THE DEPARTMENT A RETURN, ON FORMS PRESCRIBED BY THE COMMISSIONER STATING THE NUMBER OF GALLONS OF MOTOR FUEL PURCHASED AND SOLD BY SUCH WHOLESALER IN THE STATE DURING THE PRECEDING CALENDAR MONTH. FOR EACH PURCHASE AND SALE, THE DATE, NUMBER OF GALLONS OF MOTOR FUEL PURCHASED OR SOLD, AND THE NAME OF THE SELLER OR PURCHASER SHALL BE SET FORTH ON THE RETURN. SUCH RETURNS SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. THE FACT THAT A WHOLESALER'S NAME IS SIGNED TO A FILED RETURN SHALL BE PRIMA FACIE EVIDENCE FOR ALL PURPOSES THAT THE RETURN WAS ACTUALLY SIGNED BY SUCH WHOLESALER OF MOTOR FUEL. S 4. Section 1102 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) EVERY WHOLESALER OF MOTOR FUEL, AS SUCH TERM IS DEFINED BY SUBDI- VISION TWENTY-SEVEN OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER, SHALL PAY OR BE ENTITLED TO A CREDIT OR REFUND OF THE TAX IMPOSED BY THIS SECTION ON GALLONS OF MOTOR FUEL UNDER THE CIRCUMSTANCES SET FORTH IN PARAGRAPH THREE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. S 5. Subdivision (e) of section 1111 of the tax law is amended by adding a new paragraph 3 to read as follows: (3) WHEN A WHOLESALER OF MOTOR FUEL SELLS MOTOR FUEL IN A REGION, AS DEFINED IN PARAGRAPH ONE OF THIS SUBDIVISION, DIFFERENT FROM THE REGION IN WHICH SUCH MOTOR FUEL WAS PURCHASED: (I) IF THE REGION IN WHICH IT SELLS THE MOTOR FUEL HAS A HIGHER PREPAID RATE AS SET FORTH IN THIS SUBDIVISION THAN THE REGION IN WHICH THE WHOLESALER PURCHASED THE MOTOR FUEL IN, THE WHOLESALER SHALL PAY TO THE DEPARTMENT THE DIFFERENCE IN THE RATES FOR THE GALLONAGE SOLD. (II) IF THE REGION IN WHICH IT SELLS THE MOTOR FUEL HAS A LOWER PREPAID RATE AS SET FORTH IN THIS SUBDIVISION THAN THE REGION IN WHICH THE WHOLESALER PURCHASED THE MOTOR FUEL, THE WHOLESALER SHALL BE ENTI- TLED TO A CREDIT OR REFUND FOR THE DIFFERENCE IN THE RATES FOR THE GALLONAGE SOLD. S. 6409--C 92 A. 9009--C S 6. The tax law is amended by adding a new section 1812-g to read as follows: S 1812-G. PERSON NOT REGISTERED AS A WHOLESALER OF MOTOR FUEL. ANY PERSON WHO, WHILE NOT REGISTERED AS A WHOLESALER OF MOTOR FUEL PURSUANT TO THE PROVISIONS OF ARTICLE TWELVE-A OF THIS CHAPTER, MAKES A SALE OF MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK, SHALL BE GUILTY OF A CLASS E FELONY. S 7. This act shall take effect immediately; provided, however, that sections two, three, four, five and six of this act shall take effect December 1, 2016. Effective immediately, any rules, regulations and agreements necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date. PART VV Section 1. Subdivision (a) of section 25-a of the labor law, as amended by section 1 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) The commissioner is authorized to establish and administer the program established under this section to provide tax incentives to employers for employing at risk youth in part-time and full-time posi- tions. There will be five distinct pools of tax incentives. Program one will cover tax incentives allocated for two thousand twelve and two thousand thirteen. Program two will cover tax incentives allocated in two thousand fourteen. Program three will cover tax incentives allocated in two thousand fifteen. Program four will cover tax incentives allo- cated in two thousand sixteen. Program five will cover tax incentives allocated in two thousand seventeen. The commissioner is authorized to allocate up to twenty-five million dollars of tax credits under program one, ten million dollars of tax credits under program two, [and] twenty million dollars of tax credits under [each of programs] PROGRAM three, AND FIFTY MILLION DOLLARS OF TAX CREDITS UNDER EACH OF PROGRAMS four[,] and five. S 2. Subdivision (b) of section 25-a of the labor law is amended by adding a new paragraph 3 to read as follows: (3) FOR PROGRAMS FOUR AND FIVE, THE TAX CREDIT UNDER EACH PROGRAM SHALL BE ALLOCATED AS FOLLOWS: (I) THIRTY MILLION DOLLARS OF TAX CREDIT FOR QUALIFIED EMPLOYEES; AND (II) TWENTY MILLION DOLLARS OF TAX CREDIT FOR INDIVIDUALS WHO MEET ALL OF THE REQUIREMENTS FOR A QUALIFIED EMPLOY- EE EXCEPT FOR THE RESIDENCY REQUIREMENT OF SUBPARAGRAPH (II) OF PARA- GRAPH TWO OF THIS SUBDIVISION, WHICH INDIVIDUALS SHALL BE DEEMED TO MEET THE RESIDENCY REQUIREMENTS OF SUBPARAGRAPH (II) OF PARAGRAPH TWO OF THIS SUBDIVISION IF THEY RESIDE IN NEW YORK STATE. S 3. This act shall take effect immediately. PART WW Section 1. Section 1115 of the tax law is amended by adding a new subdivision (kk) to read as follows: (KK) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1) RECEIPTS FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND THE SERVICE OF INSTALLING AND MAINTAIN- ING SUCH SYSTEMS. FOR THE PURPOSES OF THIS SUBDIVISION, "FUEL CELL ELEC- TRICITY GENERATING SYSTEMS EQUIPMENT" SHALL MEAN AN ELECTRIC GENERATING S. 6409--C 93 A. 9009--C ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL PREMISES THAT UTILIZE SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL, OR FOR THE PURPOSES OF THIS SECTION ONLY, LINEAR GENERATOR. (2) RECEIPTS FROM THE SALE OF HYDROGEN GAS OR ELECTRICITY BY A PERSON PRIMARILY ENGAGED IN THE SALE OF FUEL CELL ELECTRICITY GENERATING SYSTEM EQUIPMENT AND/OR ELECTRICITY GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH THE ELECTRICITY IS GENERATED BY COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEM EQUIPMENT THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELECTRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER OF SUCH ELECTRICITY; (C) PLACED IN SERVICE; AND (D) USED TO PROVIDE HEATING, COOLING, HOT WATER OR ELECTRICITY TO SUCH PREMISES. S 2. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part Z of chapter 59 of the laws of 2015, are amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes author- ized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), THE COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT EXEMPTION PROVIDED FOR IN SUBDIVISION (KK) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to [either] such residential solar energy systems equipment and electricity exemption, such commercial solar ener- S. 6409--C 94 A. 9009--C gy systems equipment and electricity exemption, COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT EXEMPTION or such clothing and footwear exemption. (4) Notwithstanding any other provision of law to the contrary, any local law enacted by any city of one million or more that imposes the taxes authorized by this subdivision (i) may omit the exception provided in subparagraph (ii) of paragraph three of subdivision (c) of section eleven hundred five of this chapter for receipts from laundering, dry- cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining; (ii) may impose the tax described in paragraph six of subdivision (c) of section eleven hundred five of this chapter at a rate in addition to the rate prescribed by this section not to exceed two percent in multiples of one-half of one percent; (iii) shall provide that the tax described in paragraph six of subdivision (c) of section eleven hundred five of this chapter does not apply to facilities owned and operated by the city or an agency or instrumentality of the city or a public corporation the majority of whose members are appointed by the chief executive officer of the city or the legislative body of the city or both of them; (iv) shall not include any tax on receipts from, or the use of, the services described in paragraph seven of subdivision (c) of section eleven hundred five of this chapter; (v) shall provide that, for purposes of the tax described in subdivision (e) of section eleven hundred five of this chapter, "permanent resident" means any occupant of any room or rooms in a hotel for at least one hundred eighty consecutive days with regard to the period of such occupancy; (vi) may omit the exception provided in paragraph one of subdivision (f) of section eleven hundred five of this chapter for charges to a patron for admission to, or use of, facilities for sporting activities in which the patron is to be a participant, such as bowling alleys and swimming pools; (vii) may provide the clothing and footwear exemption in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, and, notwithstanding any provision of subdivision (d) of this section to the contrary, any local law providing for such exemption or repealing such exemption, may go into effect on any one of the following dates: March first, June first, September first or December first; (viii) shall omit the exemption provided in paragraph forty-one of subdivision (a) of section eleven hundred fifteen of this chapter; (ix) shall omit the exemption provided in subdivision (c) of section eleven hundred fifteen of this chapter insofar as it applies to fuel, gas, electricity, refrig- eration and steam, and gas, electric, refrigeration and steam service of whatever nature for use or consumption directly and exclusively in the production of gas, electricity, refrigeration or steam; (x) shall omit, unless such city elects otherwise, the provision for refund or credit contained in clause six of subdivision (a) or in subdivision (d) of section eleven hundred nineteen of this chapter; (xi) shall provide that section eleven hundred five-C of this chapter does not apply to such taxes, and shall tax receipts from every sale, other than sales for resale, of gas service or electric service of whatever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subpara- graph (i) of the opening paragraph of this section; (xii) shall omit, unless such city elects otherwise, the exemption for residential solar energy systems equipment and electricity provided in subdivision (ee) of section eleven hundred fifteen of this chapter; [and] (xiii) shall omit, unless such city elects otherwise, the exemption for commercial solar energy systems equipment and electricity provided in subdivision (ii) of S. 6409--C 95 A. 9009--C section eleven hundred fifteen of this chapter; AND (XIV) SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER. Any reference in this chapter or in any local law, ordinance or resolution enacted pursuant to the authority of this article to former subdivisions (n) or (p) of this section shall be deemed to be a reference to clauses (xii) or (xiii) of this paragraph, respectively, and any such local law, ordinance or resolution that provides the exemptions provided in such former subdivisions (n) and/or (p) shall be deemed instead to provide the exemptions provided in claus- es (xii) and/or (xiii) of this paragraph. S 3. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 4 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; [and] (C) the exemption provided in paragraph two of subdivision (ii) of section elev- en hundred fifteen of this chapter, unless such county or city elects otherwise; AND (D) THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVI- SION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE. S 4. Subdivision (d) of section 1210 of the tax law, as amended by section 4-a of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (d) A local law, ordinance or resolution imposing any tax pursuant to this section, increasing or decreasing the rate of such tax, repealing or suspending such tax, exempting from such tax the energy sources and services described in paragraph three of subdivision (a) or of subdivi- sion (b) of this section or changing the rate of tax imposed on such energy sources and services or providing for the credit or refund described in clause six of subdivision (a) of section eleven hundred nineteen of this chapter, or electing or repealing the exemption for residential solar equipment and electricity in subdivision (ee) of section eleven hundred fifteen of this article, or the exemption for commercial solar equipment and electricity in subdivision (ii) of section eleven hundred fifteen of this article, OR ELECTING OR REPEALING THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT IN SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must go into S. 6409--C 96 A. 9009--C effect only on one of the following dates: March first, June first, September first or December first; provided, that a local law, ordinance or resolution providing for the exemption described in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter or repealing any such exemption or a local law, ordinance or resolution providing for a refund or credit described in subdivision (d) of section eleven hundred nineteen of this chapter or repealing such provision so provided must go into effect only on March first. No such local law, ordinance or resolution shall be effective unless a certified copy of such law, ordinance or resolution is mailed by registered or certified mail to the commissioner at the commissioner's office in Albany at least ninety days prior to the date it is to become effective. However, the commissioner may waive and reduce such ninety-day minimum notice requirement to a mailing of such certified copy by registered or certi- fied mail within a period of not less than thirty days prior to such effective date if the commissioner deems such action to be consistent with the commissioner's duties under section twelve hundred fifty of this article and the commissioner acts by resolution. Where the restriction provided for in section twelve hundred twenty-three of this article as to the effective date of a tax and the notice requirement provided for therein are applicable and have not been waived, the restriction and notice requirement in section twelve hundred twenty- three of this article shall also apply. S 5. Subdivision (a) of section 1212 of the tax law, as amended by section 6 of part Z of chapter 59 of the laws of 2015, is amended to read as follows: (a) Any school district which is coterminous with, partly within or wholly within a city having a population of less than one hundred twen- ty-five thousand, is hereby authorized and empowered, by majority vote of the whole number of its school authorities, to impose for school district purposes, within the territorial limits of such school district and without discrimination between residents and nonresidents thereof, the taxes described in subdivision (b) of section eleven hundred five (but excluding the tax on prepaid telephone calling services) and the taxes described in clauses (E) and (H) of subdivision (a) of section eleven hundred ten, including the transitional provisions in subdivision (b) of section eleven hundred six of this chapter, so far as such provisions can be made applicable to the taxes imposed by such school district and with such limitations and special provisions as are set forth in this article, such taxes to be imposed at the rate of one-half, one, one and one-half, two, two and one-half or three percent which rate shall be uniform for all portions and all types of receipts and uses subject to such taxes. In respect to such taxes, all provisions of the resolution imposing them, except as to rate and except as otherwise provided herein, shall be identical with the corresponding provisions in such article twenty-eight of this chapter, including the applicable definition and exemption provisions of such article, so far as the provisions of such article twenty-eight of this chapter can be made applicable to the taxes imposed by such school district and with such limitations and special provisions as are set forth in this article. The taxes described in subdivision (b) of section eleven hundred five (but excluding the tax on prepaid telephone calling service) and clauses (E) and (H) of subdivision (a) of section eleven hundred ten, including the transitional provision in subdivision (b) of such section eleven hundred six of this chapter, may not be imposed by such school district unless the resolution imposes such taxes so as to include all portions and all S. 6409--C 97 A. 9009--C types of receipts and uses subject to tax under such subdivision (but excluding the tax on prepaid telephone calling service) and clauses. Provided, however, that, where a school district imposes such taxes, such taxes shall omit the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section elev- en hundred five unless such school district elects to provide such provision or, if so elected, to repeal such provision, and shall omit the exemptions provided in paragraph two of subdivision (ee) and para- graph two of subdivision (ii) of section eleven hundred fifteen of this chapter unless such school district elects otherwise, AND SHALL OMIT THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVISION (KK) OF SECTION ELEV- EN HUNDRED FIFTEEN OF THIS CHAPTER UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE. S 6. Section 1224 of the tax law is amended by adding a new subdivi- sion (c-2) to read as follows: (C-2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW: (1) WHERE A COUNTY CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERAT- ING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SUCH SECTION ELEVEN HUNDRED FIFTEEN, A CITY WITHIN SUCH COUNTY SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE; (2) WHERE A CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION FOR COMMERCIAL FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT AND ELECTRICITY GENERATED BY SUCH EQUIPMENT PROVIDED IN SUBDIVISION (KK) OF SUCH SECTION ELEVEN HUNDRED FIFTEEN, THE COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIP- MENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. S 7. This act shall take effect June 1, 2016 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through WW of this act shall be as specifically set forth in the last section of such Parts.
Comments
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.