Enacts "the school district property tax relief act"
download bill text pdf| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Mar 16, 2018 |
referred to education |
Enacts "the school district property tax relief act"; relates to adopting a school income tax surcharge (Part A); provides for the restriction of the school district real property tax on residential property; authorizes the imposition by school districts of a surcharge on the state income tax of district residents to finance public education (Part B).
S T A T E O F N E W Y O R K
________________________________________________________________________
10136
I N A S S E M B L Y
March 16, 2018
___________
Introduced by M. of A. GALEF, GOTTFRIED, GUNTHER, ABINANTI -- read once
and referred to the Committee on Education
AN ACT in relation to enacting the school district property tax relief
act; to amend the education law, in relation to adopting a school
income tax surcharge (Part A); and to amend the real property tax law
and the tax law, in relation to providing for the restriction of the
school district real property tax on residential property and to
authorize the imposition by school districts of a surcharge on the
state income tax of district residents to finance public education
(Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as "the school
district property tax relief act".
§ 2. This act enacts into law major components of legislation which
are necessary to implement the school district property tax relief act.
Each component is wholly contained within a Part identified as Parts A
and B. The effective date for each particular provision contained with-
in such Part is set forth in the last section of such Part. Any
provision in any section contained within a Part, including the effec-
tive date of the Part, which makes reference to a section "of this act",
when used in connection with that particular component, shall be deemed
to mean and refer to the corresponding section of the Part in which it
is found. Section four of this act sets forth the general effective
date of this act.
PART A
Section 1. Legislative findings and declarations. The legislature
finds that the property tax has long been relied upon by school
districts as a principal method to finance public education. The proper-
ty tax, however, is regressive and fails to account for a taxpayer's
ability to pay, and falls hardest on those with reduced or fixed
incomes. Therefore, to relieve the mounting burden on residential prop-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13991-01-7
A. 10136 2
erty taxpayers and to provide local school districts with greater flexi-
bility to finance public education, while assuring the continued deliv-
ery of quality educational services, the legislature finds that school
districts shall be authorized, at local option, to impose a school
district income tax surcharge on the state personal income tax of
district residents to replace a portion of the school district property
tax.
§ 2. The education law is amended by adding a new section 1501-d to
read as follows:
§ 1501-D. ADOPTION OF SCHOOL DISTRICT INCOME TAX SURCHARGE. 1. THE
BOARD OF TRUSTEES OR BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OTHER
THAN A SCHOOL DISTRICT OF A CITY SUBJECT TO THE PROVISIONS OF ARTICLE
FIFTY-TWO OF THIS CHAPTER MAY ADOPT, BY RESOLUTION, A SCHOOL DISTRICT
INCOME TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
TY-C OF THE TAX LAW, TO FINANCE PUBLIC EDUCATION, IN ACCORDANCE WITH A
PROPOSITION SUBMITTED TO AND APPROVED BY ELECTORS OF THE SCHOOL DISTRICT
AS AUTHORIZED PURSUANT TO THIS SECTION.
2. UPON A MAJORITY VOTE OF THE BOARD OF TRUSTEES OR BOARD OF EDUCATION
OF A SCHOOL DISTRICT OR UPON THE FILING OF A PETITION WITH THE CHIEF
EXECUTIVE OFFICER OF THE SCHOOL DISTRICT, A STUDY COMMISSION SHALL BE
CREATED. A PETITION TO CREATE A STUDY COMMISSION WITHIN A SCHOOL
DISTRICT SHALL BE SUFFICIENT IF IT IS SIGNED AND ACKNOWLEDGED BY QUALI-
FIED ELECTORS OF THE SCHOOL DISTRICT, IN NUMBER EQUAL TO FIVE PER CENTUM
OF THE TOTAL NUMBER OF ELECTORS WITHIN THE SCHOOL DISTRICT QUALIFIED TO
VOTE IN THE GENERAL ELECTION IMMEDIATELY PRECEDING FILING OF THE PETI-
TION.
3. (A) THE STUDY COMMISSION FORMED PURSUANT TO THIS SECTION SHALL
PRESENT A WRITTEN REPORT TO THE BOARD OF TRUSTEES OR THE BOARD OF EDUCA-
TION SETTING FORTH EITHER A SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN OR
A WRITTEN RECOMMENDATION THAT NO PLAN BE ADOPTED. SUCH RECOMMENDATION
SHALL INCLUDE THE REASONS FOR REJECTING A SURCHARGE PLAN. THE STUDY
COMMISSION SHALL FILE THE REPORT WITH THE BOARD OF TRUSTEES OR THE BOARD
OF EDUCATION ON OR BEFORE ONE YEAR FROM THE DATE OF PRESENTATION OF THE
PETITION TO THE CHIEF EXECUTIVE OFFICER OF THE SCHOOL DISTRICT OR VOTE
OF THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION DIRECTING THE FORMA-
TION OF THE STUDY COMMISSION. IF THE COMMISSION FAILS TO MAKE A RECOM-
MENDATION WITHIN THE ALLOTTED TIME, THE BOARD SHALL EXTEND THE COMMIS-
SION OR ASSUME ITS RESPONSIBILITIES.
(B) THE COMMISSION SHALL BE COMPOSED OF AT LEAST NINE MEMBERS
APPOINTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION. MEMBER-
SHIP SHALL BE COMPRISED OF REPRESENTATIVES OF PROPERTY OWNERS RESIDING
IN THE SCHOOL DISTRICT, COMMERCIAL PROPERTY OWNERS WHOSE PRINCIPAL PLACE
OF BUSINESS IS LOCATED WITHIN THE SCHOOL DISTRICT, AND THE BOARD OF
TRUSTEES OR BOARD OF EDUCATION, BUT SHALL NOT INCLUDE MORE THAN ONE
TRUSTEE OF A BOARD OF EDUCATION OR MEMBER OF A BOARD OF EDUCATION.
(C) MEMBERS OF A STUDY COMMISSION ESTABLISHED PURSUANT TO THIS SECTION
SHALL FILE OATHS OF OFFICE WITH THE APPOINTING AUTHORITY. THEIR TERMS
SHALL EXTEND TO AND EXPIRE UPON SUBMISSION OF THE REPORT TO THE BOARD OF
TRUSTEES OR THE BOARD OF EDUCATION AS PROVIDED IN THIS SECTION. MEMBERS
SHALL RECEIVE NO COMPENSATION FOR MEMBERSHIP ON THE STUDY COMMISSION.
COSTS AND EXPENSES OF THE STUDY COMMISSION IF APPROVED BY THE BOARD
SHALL BE PAID BY THE SCHOOL DISTRICT. SUCH COMMISSION SHALL ORGANIZE AND
FORM SUCH SUBCOMMITTEES, MAY ESTABLISH MEETINGS AND HOLD INFORMATIONAL
HEARINGS AS IT DEEMS DESIRABLE AND SHALL CONSULT WITH THE DESIGNEES OF
THE DIRECTOR OF THE OFFICE OF REAL PROPERTY TAX SERVICES AND THE COMMIS-
SIONER OF TAXATION AND FINANCE.
A. 10136 3
(D) A STUDY COMMISSION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE
SCHOOL DISTRICT AT LEAST SIXTY DAYS PRIOR TO SUBMISSION OF ITS REPORT TO
THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION, AT WHICH THE PUBLIC
SHALL HAVE AN OPPORTUNITY TO BE HEARD. THE STUDY COMMISSION SHALL
PUBLISH NOTICE OF THE PUBLIC HEARING ON ANY OFFICIAL WEBSITE AND IN AT
LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT
LEAST SEVEN AND NO GREATER THAN TEN DAYS PRIOR TO THE DATE OF SUCH
PUBLIC HEARING. SUCH NOTICE SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH
HEARING SHALL BE HELD.
4. A STUDY COMMISSION RECOMMENDING A SCHOOL DISTRICT INCOME TAX
SURCHARGE SHALL ADOPT A PLAN WHICH DESCRIBES THE RATE OF THE SURCHARGE
TO BE IMPOSED, THE MANNER IN WHICH REAL PROPERTY TAXES FOR SCHOOL
DISTRICT PURPOSES WILL BE RESTRICTED IN ACCORDANCE WITH SECTION THIRTEEN
HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, AND ANY SUCH OTHER MATTERS
AS MAY BE DESIRABLE OR NECESSARY TO DESCRIBE THE INCOME TAX SURCHARGE TO
BE IMPOSED OR ITS ADMINISTRATION. SUCH COMMISSION PLAN SHALL DESCRIBE
RESTRICTIONS, IF ANY, UPON THE AUTHORITY OF A SCHOOL DISTRICT, ACTING
THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION, TO MODIFY THE FIRST
YEAR RATE OF THE INCOME TAX SURCHARGE IN SUBSEQUENT YEARS. THE
RESTRICTIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:
(A) REQUIRING VOTER APPROVAL FOR ANY CHANGE IN THE SURCHARGE RATE;
(B) LIMITING THE AMOUNT OF A RATE CHANGE IN ONE YEAR OR OVER A NUMBER
OF YEARS;
(C) REQUIRING THE COMMISSION TO BE RECONVENED TO STUDY AND ADOPT A
RATE CHANGE;
(D) REQUIRING A SUPERMAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF
EDUCATION TO APPROVE A RATE CHANGE; OR
(E) SOME COMBINATION OF THE ABOVE.
5. (A) UPON THE STUDY COMMISSION'S PRESENTATION OF A PLAN, OR RECOM-
MENDATION NOT TO ADOPT A PLAN, THE BOARD OF TRUSTEES OR THE BOARD OF
EDUCATION SHALL DECIDE WHETHER TO ACCEPT OR REJECT THE PLAN OR RECOMMEN-
DATION OF THE STUDY COMMISSION. THE BOARD OF TRUSTEES OR THE BOARD OF
EDUCATION SHALL TAKE SUCH ACTION ON THE STUDY COMMISSION'S RECOMMENDA-
TION WITHIN ONE HUNDRED TWENTY DAYS OF ITS PRESENTMENT TO THE BOARD OF
TRUSTEES OR THE BOARD OF EDUCATION. THE BOARD OF TRUSTEES OR THE BOARD
OF EDUCATION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE SCHOOL
DISTRICT AT LEAST THIRTY DAYS PRIOR TO TAKING ACTION ON THE STUDY
COMMISSION'S RECOMMENDATION, AT WHICH THE PUBLIC SHALL HAVE AN OPPORTU-
NITY TO BE HEARD. THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL
PUBLISH NOTICE OF THE PUBLIC HEARING IN AT LEAST ONE NEWSPAPER OF GENER-
AL CIRCULATION WITHIN THE SCHOOL DISTRICT, AT LEAST SEVEN AND NO GREATER
THAN TEN DAYS, PRIOR TO THE DATE OF SUCH PUBLIC HEARING. SUCH NOTICE
SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH HEARING SHALL BE HELD. IF THE
PLAN IS ACCEPTED BY A MAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF
EDUCATION, A PROPOSITION SHALL BE PREPARED BY THE BOARD OF TRUSTEES OR
THE BOARD OF EDUCATION AND SUBMITTED TO THE VOTERS AT THE NEXT REGULAR
SCHOOL ELECTION.
(B) UPON ACCEPTANCE OF THE PLAN AND FORMULATION OF THE PROPOSITION THE
BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL PUBLISH THE FULL TEXT
OF THE PROPOSITION AND THE SCHOOL DISTRICT TAX SURCHARGE PLAN IN AT
LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT
LEAST THIRTY DAYS PRIOR TO THE DATE OF ELECTION AT WHICH THE SCHOOL
DISTRICT VOTERS SHALL VOTE ON THE PLAN AND PROPOSITION. COPIES OF THE
PLAN AND PROPOSITION SHALL BE MADE AVAILABLE TO THE PUBLIC AT THE
OFFICES OF THE SCHOOL DISTRICT AT ANY TIME DURING REGULAR BUSINESS HOURS
AND ON ANY OFFICIAL WEBSITE MAINTAINED BY THE SCHOOL DISTRICT.
A. 10136 4
6. (A) A PROPOSITION FOR THE IMPOSITION OF A SCHOOL DISTRICT INCOME
TAX SURCHARGE SHALL STATE "SHALL THE (NAME OF SCHOOL DISTRICT) BE
EMPOWERED TO ADOPT A SCHOOL DISTRICT INCOME TAX SURCHARGE PURSUANT TO
THE SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN?" THE PROPOSITION SHALL
ALSO CONTAIN AN ABSTRACT OF SUCH PLAN WHICH SHALL (I) IDENTIFY IN FULL
THE OPTION RESTRICTING THE SCHOOL DISTRICT LEVY OF REAL PROPERTY TAX
CHOSEN PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW, AND (II) CONCISELY STATE IN PLAIN LANGUAGE THE PURPOSE AND
EFFECT OF ADOPTING SUCH PLAN INCLUDING THE GENERAL EFFECT ON RESIDENTIAL
REAL PROPERTY TAXPAYERS, THE INCOME TAX SURCHARGE RATE EXPECTED TO BE
IMPOSED, AND RESTRICTIONS, IF ANY, APPLICABLE TO CHANGES IN SUCH RATE.
(B) UPON APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS WITHIN A
SCHOOL DISTRICT, THE PROPOSITION SHALL BE APPROVED. UPON SUCH APPROVAL A
CERTIFICATE OF SUCH ELECTION SHALL BE FILED WITH THE CLERK OF THE SCHOOL
DISTRICT NAMED IN THE PROPOSITION, THE COMMISSIONER AND THE COMMISSIONER
OF TAXATION AND FINANCE.
7. THE LEVY OF REAL PROPERTY TAXES BY ANY SCHOOL DISTRICT TO FINANCE
EDUCATION WHICH ADOPTS A SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE
SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THE REAL
PROPERTY TAX LAW.
8. IF ADOPTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION ON OR
BEFORE MARCH THIRTY-FIRST IN ANY YEAR, WITH NOTICE TO THE COMMISSIONER
OF TAXATION AND FINANCE, AS PROVIDED IN SECTION THIRTEEN HUNDRED SIXTY-
ONE OF THE TAX LAW ON OR BEFORE SUCH DATE, SUCH SCHOOL DISTRICT INCOME
TAX SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER THE FIRST DAY
OF JANUARY NEXT SUCCEEDING ITS ADOPTION. IF ADOPTED AFTER MARCH THIRTY-
FIRST IN ANY YEAR, OR WITH NOTICE AFTER SUCH DATE, SUCH LOCAL INCOME TAX
SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER ONE YEAR FROM THE
FIRST DAY OF JANUARY NEXT SUCCEEDING ITS ADOPTION.
§ 3. This act shall take effect immediately.
PART B
Section 1. Section 1306 of the real property tax law is amended by
adding a new subdivision 6 to read as follows:
6. THE LEVY OF TAXES BY ANY SCHOOL DISTRICT WHICH IMPOSES A PERSONAL
INCOME TAX PURSUANT TO ARTICLE THIRTY-C OF THE TAX LAW SHALL BE SUBJECT
TO THE RESTRICTIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE.
§ 2. The real property tax law is amended by adding a new section 1307
to read as follows:
§ 1307. REDUCTION IN THE LEVY OF REAL PROPERTY TAXES. 1. WHERE A
SCHOOL DISTRICT ELECTS TO IMPOSE A SCHOOL DISTRICT INCOME TAX SURCHARGE
IN ACCORDANCE WITH ARTICLE THIRTY-C OF THE TAX LAW, THE AMOUNT TO BE
RAISED BY LEVY AGAINST RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT
SHALL BE REDUCED BY THE DOLLAR AMOUNT RAISED PURSUANT TO SUCH SURCHARGE
FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE YEAR OF COMMENCEMENT OF
THE SCHOOL FISCAL YEAR. FOR THE PURPOSES OF THIS SECTION THE TERM "RESI-
DENTIAL REAL PROPERTY" SHALL BE LIMITED TO PRIMARY RESIDENCES AS DEFINED
IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP-
TER.
2. THE AMOUNT OF REDUCTION FOR EACH PARCEL OF RESIDENTIAL REAL PROPER-
TY SHALL BE STATED ON THE SCHOOL TAX BILL. THE SCHOOL TAX BILL ALSO
SHALL SHOW THE AMOUNT OF THE TOTAL LEVY, THE AMOUNT TO BE RAISED BY THE
RESIDENTIAL PROPERTY IN THE SCHOOL DISTRICT, THE AMOUNT OF SURCHARGE
RAISED REDUCING SUCH PORTION OF THE LEVY AND THE AMOUNT TO BE RAISED BY
THE NON-RESIDENTIAL PROPERTY IN THE DISTRICT. COMPARISON TO THE PRECED-
A. 10136 5
ING YEAR SHALL ALSO BE SHOWN IN ADDITION TO SUCH OTHER INFORMATION AS
THE COMMISSIONER OF EDUCATION SHALL SPECIFY. PROPERTY OWNERS NOT
SUBJECT TO THE INCOME TAX SURCHARGE IMPOSED BY ARTICLE THIRTY-C OF THE
TAX LAW SHALL NOT RECEIVE A REDUCTION IN THE REAL PROPERTY TAXES PURSU-
ANT TO THIS SECTION.
§ 3. Subdivision 1 of section 202 of the real property tax law is
amended by adding a new paragraph (q) to read as follows:
(Q) DIRECT THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY
SERVICES TO DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A
STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN
HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS
OF ARTICLE THIRTY-C OF THE TAX LAW AND SECTION THIRTEEN HUNDRED SEVEN OF
THIS CHAPTER.
§ 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as
amended by chapter 166 of the laws of 1991, is amended to read as
follows:
(1) Subject to the requirements contained in subdivisions (c) and (d)
of this section, the commissioner shall require by regulation that any
payment of tax made by a taxpayer who is required, for either of the
semi-annual periods ending June thirtieth or December thirty-first, to
deduct and withhold an aggregate of thirty-five thousand dollars or more
of withholding taxes pursuant to part V of article twenty-two of this
chapter, or pursuant to an equivalent provision enacted under the
authority of article thirty, thirty-A [or], thirty-B OR THIRTY-C of this
chapter[, or article two-E of the general city law,] shall be made, on
or before the date prescribed by law, by electronic funds transfer to a
bank, banking house or trust company designated by the commissioner. The
commissioner shall designate only such banks, banking houses or trust
companies as are or shall be designated by the comptroller as deposito-
ries pursuant to section one hundred seventy-one-a of this chapter, as
added by chapter sixty-nine of the laws of nineteen hundred seventy-
eight. Notwithstanding any provision of law to the contrary, any such
payment shall be deemed to be made on the date the payment is received
by the designated depository of the department; provided, however, that
at the election of a taxpayer subject to the provisions of this subdivi-
sion, mailing by the taxpayer of the applicable withholding tax return
and a certified check for the amount of the tax liability on or before
the second business day prior to the applicable due date otherwise
prescribed by law shall fulfill the requirements of this section and
shall be deemed to be timely payment of such tax liability and timely
filing of such return.
§ 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the
tax law, as added by chapter 770 of the laws of 1992, are amended to
read as follows:
Eighteenth-b. Where the filing requirement arises under article twen-
ty-two of this chapter or under a law enacted pursuant to the authority
of article thirty [or], thirty-A OR THIRTY-C of this chapter, have
authority to require a husband and wife whose federal income tax liabil-
ities are determined on a joint federal return and who have not filed a
joint New York income tax return to file separate income tax returns, in
which case their income tax liabilities shall be separate. Such authori-
ty shall be exercised only where one of such persons demonstrates, to
the satisfaction of the commissioner, that (a) the address or where-
abouts of his or her spouse is unknown to him or her, (b) reasonable
efforts have been made by him or her to locate such spouse, and (c) good
A. 10136 6
cause existed for the failure to file a joint New York income tax
return.
Eighteenth-c. Where the filing requirement arises under article twen-
ty-two of this chapter or under a law enacted pursuant to the authority
of article thirty [or], thirty-A OR THIRTY-C of this chapter, have
authority to require a husband and wife whose federal income tax liabil-
ities are determined on a joint federal return and who have not filed a
joint New York income tax return to file separate income tax returns, in
which case their income tax liabilities shall be separate. Such authori-
ty shall be exercised only where one of such persons demonstrates, to
the satisfaction of the commissioner, that (a) his or her spouse has
refused to sign a joint New York income tax return, (b) reasonable
efforts have been made by him or her to have such spouse sign a joint
New York income tax return, (c) there exists objective evidence of
alienation of such person from his or her spouse such as a judicial
order of protection, legal separation under a decree of divorce or sepa-
rate maintenance, separation under a written separation agreement or
judicial decree of separation, living apart at all times during the
twelve months immediately preceding the application for exercise of
authority under this provision, the commencement of an action for
divorce, or the commencement of proceedings in family court which
evidence such alienation, and (d) good cause existed for the failure to
file a joint New York income tax return.
§ 6. Subdivision 1 of section 171-a of the tax law, as amended by
section 15 of part AAA of chapter 59 of the laws of 2017, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-B, twenty-one, twenty-two, twenty-six, twenty-eight (except
as otherwise provided in section eleven hundred two or eleven hundred
three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as
otherwise provided in section fourteen hundred twenty-one thereof),
thirty-three and thirty-three-A of this chapter shall be deposited daily
in one account with such responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of the
comptroller. Such an account may be established in one or more of such
depositories. Such deposits shall be kept separate and apart from all
other money in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories. Of the total
revenue collected or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount as the
commissioner may determine to be necessary for refunds or reimbursements
under such articles of this chapter out of which amount the comptroller
shall pay any refunds or reimbursements to which taxpayers shall be
entitled under the provisions of such articles of this chapter. The
commissioner and the comptroller shall maintain a system of accounts
showing the amount of revenue collected or received from each of the
taxes imposed by such articles. The comptroller, after reserving the
amount to pay such refunds or reimbursements, shall, on or before the
tenth day of each month, pay into the state treasury to the credit of
A. 10136 7
the general fund all revenue deposited under this section during the
preceding calendar month and remaining to the comptroller's credit on
the last day of such preceding month, (i) except that the comptroller
shall pay to the state department of [social services] FAMILY ASSISTANCE
that amount of overpayments of tax imposed by article twenty-two of this
chapter and the interest on such amount which is certified to the comp-
troller by the commissioner as the amount to be credited against past-
due support pursuant to subdivision six of section one hundred seventy-
one-c of this article, (ii) and except that the comptroller shall pay to
the New York state higher education services corporation and the state
university of New York or the city university of New York respectively
that amount of overpayments of tax imposed by article twenty-two of this
chapter and the interest on such amount which is certified to the comp-
troller by the commissioner as the amount to be credited against the
amount of defaults in repayment of guaranteed student loans and state
university loans or city university loans pursuant to subdivision five
of section one hundred seventy-one-d and subdivision six of section one
hundred seventy-one-e of this article, (iii) and except further that,
notwithstanding any law, the comptroller shall credit to the revenue
arrearage account, pursuant to section ninety-one-a of the state finance
law, that amount of overpayment of tax imposed by article nine, nine-A,
twenty-two, thirty, thirty-A, thirty-B, THIRTY-C or thirty-three of this
chapter, and any interest thereon, which is certified to the comptroller
by the commissioner as the amount to be credited against a past-due
legally enforceable debt owed to a state agency pursuant to paragraph
(a) of subdivision six of section one hundred seventy-one-f of this
article, provided, however, [he] THE COMMISSIONER shall credit to the
special offset fiduciary account, pursuant to section ninety-one-c of
the state finance law, any such amount creditable as a liability as set
forth in paragraph (b) of subdivision six of section one hundred seven-
ty-one-f of this article, (iv) and except further that the comptroller
shall pay to the city of New York that amount of overpayment of tax
imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
THIRTY-C or thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to be
credited against city of New York tax warrant judgment debt pursuant to
section one hundred seventy-one-l of this article, (v) and except
further that the comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant to
section one hundred seventy-one-c, one hundred seventy-one-d, one
hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
ty-one-l of this article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter; and (vi) the comptroller shall deduct a like amount which the
comptroller shall pay into the treasury to the credit of the general
fund from amounts subsequently payable to the department of social
services, the state university of New York, the city university of New
York, or the higher education services corporation, or the revenue
arrearage account or special offset fiduciary account pursuant to
section ninety-one-a or ninety-one-c of the state finance law, as the
case may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii) with respect to amounts originally
withheld from such overpayment pursuant to section one hundred seventy-
A. 10136 8
one-l of this article and paid to the city of New York, the comptroller
shall collect a like amount from the city of New York.
§ 6-a. Subdivision 1 of section 171-a of the tax law, as amended by
section 16 of part AAA of chapter 59 of the laws of 2017, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-one, twenty-two, twenty-six, twenty-eight (except as other-
wise provided in section eleven hundred two or eleven hundred three
thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise
provided in section fourteen hundred twenty-one thereof), thirty-three
and thirty-three-A of this chapter shall be deposited daily in one
account with such responsible banks, banking houses or trust companies
as may be designated by the comptroller, to the credit of the comp-
troller. Such an account may be established in one or more of such
depositories. Such deposits shall be kept separate and apart from all
other money in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories. Of the total
revenue collected or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount as the
commissioner may determine to be necessary for refunds or reimbursements
under such articles of this chapter out of which amount the comptroller
shall pay any refunds or reimbursements to which taxpayers shall be
entitled under the provisions of such articles of this chapter. The
commissioner and the comptroller shall maintain a system of accounts
showing the amount of revenue collected or received from each of the
taxes imposed by such articles. The comptroller, after reserving the
amount to pay such refunds or reimbursements, shall, on or before the
tenth day of each month, pay into the state treasury to the credit of
the general fund all revenue deposited under this section during the
preceding calendar month and remaining to the comptroller's credit on
the last day of such preceding month, (i) except that the comptroller
shall pay to the state department of [social services] FAMILY ASSISTANCE
that amount of overpayments of tax imposed by article twenty-two of this
chapter and the interest on such amount which is certified to the comp-
troller by the commissioner as the amount to be credited against past-
due support pursuant to subdivision six of section one hundred seventy-
one-c of this article, (ii) and except that the comptroller shall pay to
the New York state higher education services corporation and the state
university of New York or the city university of New York respectively
that amount of overpayments of tax imposed by article twenty-two of this
chapter and the interest on such amount which is certified to the comp-
troller by the commissioner as the amount to be credited against the
amount of defaults in repayment of guaranteed student loans and state
university loans or city university loans pursuant to subdivision five
of section one hundred seventy-one-d and subdivision six of section one
hundred seventy-one-e of this article, (iii) and except further that,
notwithstanding any law, the comptroller shall credit to the revenue
arrearage account, pursuant to section ninety-one-a of the state finance
law, that amount of overpayment of tax imposed by article nine, nine-A,
A. 10136 9
twenty-two, thirty, thirty-A, thirty-B, THIRTY-C or thirty-three of this
chapter, and any interest thereon, which is certified to the comptroller
by the commissioner as the amount to be credited against a past-due
legally enforceable debt owed to a state agency pursuant to paragraph
(a) of subdivision six of section one hundred seventy-one-f of this
article, provided, however, [he] THE COMMISSIONER shall credit to the
special offset fiduciary account, pursuant to section ninety-one-c of
the state finance law, any such amount creditable as a liability as set
forth in paragraph (b) of subdivision six of section one hundred seven-
ty-one-f of this article, (iv) and except further that the comptroller
shall pay to the city of New York that amount of overpayment of tax
imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
THIRTY-C or thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to be
credited against city of New York tax warrant judgment debt pursuant to
section one hundred seventy-one-l of this article, (v) and except
further that the comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant to
section one hundred seventy-one-c, one hundred seventy-one-d, one
hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
ty-one-l of this article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter; and (vi) the comptroller shall deduct a like amount which the
comptroller shall pay into the treasury to the credit of the general
fund from amounts subsequently payable to the department of social
services, the state university of New York, the city university of New
York, or the higher education services corporation, or the revenue
arrearage account or special offset fiduciary account pursuant to
section ninety-one-a or ninety-one-c of the state finance law, as the
case may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii) with respect to amounts originally
withheld from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the comptroller
shall collect a like amount from the city of New York.
§ 7. Subdivision 1 of section 171-c of the tax law, as amended by
chapter 601 of the laws of 2007, is amended to read as follows:
(1) The commissioner, on behalf of the department, shall enter into a
written agreement with the commissioner of the office of temporary and
disability assistance, on behalf of the state office of temporary and
disability assistance, which shall set forth the procedures for credit-
ing any overpayment by an individual, estate or trust of income tax
imposed by article twenty-two of this chapter, city personal income tax
on residents imposed pursuant to the authority of article thirty of this
chapter, city income tax surcharge on residents imposed pursuant to the
authority of article thirty-A of this chapter and city earnings tax on
nonresidents imposed pursuant to the authority of article thirty-B of
this chapter AND SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED PURSUANT
TO THE AUTHORITY OF ARTICLE THIRTY-C OF THIS CHAPTER and the interest on
such overpayments against past-due support owed by such individual,
estate or trust of which the commissioner has been notified by the
commissioner of the office of temporary and disability assistance pursu-
ant to the provisions of such agreement.
A. 10136 10
§ 8. Subdivision 1 of section 171-d of the tax law, as amended by
section 2 of part M of chapter 57 of the laws of 2008, is amended to
read as follows:
(1) The commissioner, on behalf of the [tax commission] DEPARTMENT,
shall enter into a written agreement with the president of the New York
state higher education services corporation, on behalf of such corpo-
ration, which shall set forth the procedures for crediting any overpay-
ment by an individual, estate or trust of income tax imposed by article
twenty-two of this chapter, city personal income tax on residents
imposed pursuant to the authority of article thirty of this chapter,
city income tax surcharge on residents imposed pursuant to the authority
of article thirty-A of this chapter, [city earnings tax on nonresidents
imposed pursuant to the authority of former article two-E of the general
city law and] city earnings tax on nonresidents imposed pursuant to the
authority of article thirty-B of this chapter, SCHOOL DISTRICT INCOME
TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF
THIS CHAPTER and the interest on such overpayments against the amount of
any default in repayment of any governmental education loan owed by such
individual, estate or trust of which the commissioner has been notified
by the president of the New York state higher education services corpo-
ration pursuant to the provisions of such agreement. For purposes of
this section, "governmental education loan" shall mean any education
loan debt, including judgments, owed to the federal or New York state
government that is being collected by the New York state higher educa-
tion services corporation.
§ 9. Subdivision 2 of section 171-e of the tax law, as separately
amended by chapters 222 and 638 of the laws of 1985, is amended to read
as follows:
(2) The commissioner [of taxation and finance], on behalf of the [tax
commission] DEPARTMENT, shall enter into a written agreement with the
state university of New York or the city university of New York respec-
tively which shall set forth the procedures for crediting any overpay-
ment by an individual, estate or trust of income tax imposed by article
twenty-two of this chapter, city personal income tax on residents
imposed pursuant to the authority of article thirty of this chapter,
city income tax surcharge on residents imposed pursuant to the authority
of article thirty-A of this chapter, [city earnings tax on nonresidents
imposed pursuant to the authority of article two-E of the general city
law and] city earnings tax on nonresidents imposed pursuant to the
authority of article thirty-B of this chapter AND SCHOOL DISTRICT INCOME
TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF
THIS CHAPTER and the interest on such overpayments against the amount of
any default in repayment of a state university loan or city university
loan owed by such individual, estate or trust of which the commissioner
[of taxation and finance] has been notified by the state university of
New York or the city university of New York respectively pursuant to the
provisions of such agreement.
§ 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi-
sion 1 as amended by chapter 81 of the laws of 1995, paragraphs (b) and
(c) of subdivision 1 as amended by section 56 and subdivision 2 as
amended by section 57 of part A of chapter 59 of the laws of 2014, are
amended to read as follows:
(1) For the purposes of this section, (a) "state agency" shall mean
any state department, board, bureau, division, commission, committee,
public authority, public benefit corporation, council, office, or other
governmental entity performing a governmental or proprietary function
A. 10136 11
for the state, or, solely for purposes of this section, a local social
services district; (b) "taxpayer" shall mean a corporation, association,
company, partnership, estate, trust, liquidator, fiduciary or other
entity or individual who or which is liable for any tax or other imposi-
tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty,
thirty-A, thirty-B, THIRTY-C or thirty-three of this chapter [or article
two-E of the general city law], which tax or other imposition is admin-
istered by the commissioner [of taxation and finance], or who or which
is under a duty to perform an act under or pursuant to such tax or impo-
sition, excluding a state agency, a municipal corporation or a district
corporation; and (c) "overpayment" shall mean an overpayment which has
been requested or determined to be refunded, a refund or a reimburse-
ment, of a tax or other imposition imposed by or pursuant to article
nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, THIRTY-C or thir-
ty-three of this chapter or FORMER article two-E of the general city
law, which is administered by the commissioner [of taxation and
finance].
(2) The commissioner [of taxation and finance], upon agreement with
the state comptroller and acting as an agent for the state comptroller,
shall set forth the procedures for crediting any overpayment by a
taxpayer of any tax or other imposition imposed by or authorized to be
imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A,
thirty-B, THIRTY-C or thirty-three of this chapter [or article two-E of
the general city law], which is administered by the commissioner [of
taxation and finance], and the interest on any such overpayments,
against the amount of a past-due legally enforceable debt owed by such
taxpayer to a state agency. An implementation plan shall be developed by
the division of the budget and the department of taxation and finance
which shall provide, but not be limited to, guidance with respect to
coordination of debt collection pursuant to this section and subdivision
twenty-seventh of section one hundred seventy-one of this article. This
section shall not be deemed to abrogate or limit in any way the powers
and authority of the state comptroller to set off debts owed the state
against payments from the state, under the constitution of the state or
any other law.
§ 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as
amended by section 1 of part CC of chapter 57 of the laws of 2010, is
amended to read as follows:
(1) state and local general sales taxes as defined in subsection (b)
of section one hundred sixty-four of the internal revenue code, to the
extent included in federal itemized deductions or income taxes imposed
by this state or any other taxing jurisdiction, except (A) city earnings
taxes on nonresidents that are imposed upon and paid by taxpayers for
taxable years beginning after December thirty-first, nineteen hundred
seventy and before January first, two thousand, pursuant to the authori-
ty of former section twenty-five-m of the general city law, to the
extent that the amount of such tax exceeds the tax computed as if the
rates were one-fourth of one percent of wages subject to tax and three-
eighths of one percent of net earnings from self-employment subject to
tax, AND (B) ANY SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED PURSUANT
TO THE AUTHORITY OF ARTICLE THIRTY-C OF THIS CHAPTER;
§ 12. The tax law is amended by adding a new article 30-C to read as
follows:
ARTICLE 30-C
SCHOOL DISTRICT INCOME TAX SURCHARGE
SECTION 1360. SHORT TITLE.
A. 10136 12
1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE.
1362. MODEL RESOLUTION.
1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX
SURCHARGE.
1364. DEPOSIT AND DISPOSITION OF REVENUES.
§ 1360. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "SCHOOL DISTRICT INCOME TAX SURCHARGE".
§ 1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE. (A)
GENERAL. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BUT
SUBJECT TO THE LIMITATIONS AND CONDITIONS SET FORTH IN THIS ARTICLE, ANY
SCHOOL DISTRICT IN THIS STATE (OTHER THAN A SCHOOL DISTRICT OF A CITY
SUBJECT TO THE PROVISIONS OF ARTICLE FIFTY-TWO OF THE EDUCATION LAW),
ACTING THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION IN ACCORDANCE
WITH SECTION FIFTEEN HUNDRED ONE-D OF THE EDUCATION LAW, IS HEREBY
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND RESOLUTIONS IMPOSING IN ANY
SUCH SCHOOL DISTRICT, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND
TEN, A SCHOOL DISTRICT INCOME TAX SURCHARGE ON THE NET STATE TAX (AS
DEFINED IN SECTION THREE OF THE MODEL SCHOOL DISTRICT INCOME TAX
SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS
ARTICLE) OF RESIDENTS OF THE SCHOOL DISTRICT, AT A RATE PERMISSIBLE
UNDER SUBSECTION (C) OF THIS SECTION. SUCH SCHOOL DISTRICT INCOME TAX
SURCHARGE SHALL BE ADMINISTERED, COLLECTED AND DISTRIBUTED BY THE
COMMISSIONER AS PROVIDED FOR IN THIS ARTICLE.
(B) FORM OF ADOPTION OF RESOLUTION. ADOPTION OF AN INCOME TAX
SURCHARGE PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY ADOPTION
OF A RESOLUTION, SUBSTANTIALLY SIMILAR IN TERMS TO THE MODEL RESOLUTION
SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE, SETTING
FORTH ONE OF THE RATES OF INCOME TAX SURCHARGE PROVIDED IN SUBSECTION
(C) OF THIS SECTION AND SPECIFYING THE TAXABLE YEARS FOR WHICH THE RATE
IS TO BE EFFECTIVE. SUCH RESOLUTION SHALL BE DEEMED TO INCORPORATE THER-
EIN ALL OF THE PROVISIONS OF THE MODEL SCHOOL DISTRICT INCOME TAX
SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS
ARTICLE, AS AMENDED FROM TIME TO TIME.
(C) RATE OF SURCHARGE. THE PERMISSIBLE RATES OF INCOME TAX SURCHARGE
AUTHORIZED BY THIS SECTION SHALL BE WHOLE NUMBER MULTIPLES OF ONE
PERCENT AND SHALL NOT EXCEED TWENTY-FIVE PERCENT. DIFFERENT PERMISSIBLE
RATES MAY BE IMPOSED WITH RESPECT TO DIFFERENT CALENDAR YEARS, BUT ONLY
ONE SUCH RATE MAY BE IMPOSED WITH RESPECT TO A SINGLE CALENDAR YEAR, AND
ANY SUCH RATE SHALL REMAIN IN EFFECT FOR THE ENTIRE YEAR AND SHALL APPLY
TO ALL TAXABLE YEARS BEGINNING IN SUCH CALENDAR YEAR.
(D) EFFECTIVENESS OF RESOLUTION AND FILING WITH COMMISSIONER. (1)
INITIAL ADOPTION. A RESOLUTION IMPOSING AN INCOME TAX SURCHARGE PURSUANT
TO THE AUTHORITY OF THIS SECTION WHICH IS ADOPTED ON OR BEFORE MARCH
THIRTY-FIRST OF ANY CALENDAR YEAR WITH NOTICE TO THE COMMISSIONER ON OR
BEFORE SUCH DATE SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE
FIRST SUCCEEDING CALENDAR YEAR, AND ANY SUCH LOCAL LAW ENACTED AFTER, OR
WITH NOTICE AFTER, SUCH MARCH THIRTY-FIRST SHALL GO INTO EFFECT ON THE
FIRST DAY OF JANUARY OF THE SECOND SUCCEEDING CALENDAR YEAR, AND IN
EITHER CASE SHALL APPLY TO TAXABLE YEARS BEGINNING ON AND AFTER SUCH
FIRST DAY OF JANUARY.
(2) AMENDMENT. A RESOLUTION AMENDING SUCH AN INCOME TAX SURCHARGE,
WHICH RESOLUTION IS ADOPTED ON OR BEFORE JUNE THIRTIETH OF ANY CALENDAR
YEAR WITH NOTICE TO THE COMMISSIONER ON OR BEFORE SUCH DATE SHALL GO
INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE FIRST SUCCEEDING CALENDAR
YEAR, AND ANY SUCH RESOLUTION ADOPTED AFTER, OR WITH NOTICE AFTER, SUCH
JUNE THIRTIETH SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE
A. 10136 13
SECOND SUCCEEDING CALENDAR YEAR, AND IN EITHER CASE SHALL APPLY TO TAXA-
BLE YEARS BEGINNING ON AND AFTER SUCH FIRST DAY OF JANUARY.
(3) NOTICE. NOTICE TO THE COMMISSIONER OF ADOPTION OF ANY RESOLUTION
PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY MAILING BY REGIS-
TERED MAIL A CERTIFIED COPY OF SUCH RESOLUTION TO THE COMMISSIONER AT
THE COMMISSIONER'S OFFICE IN ALBANY.
(E) FILING OF RESOLUTION WITH OTHERS. CERTIFIED COPIES OF ANY SUCH
RESOLUTION SHALL ALSO BE FILED, WITHIN THIRTY DAYS OF THE DATE OF ENACT-
MENT, WITH THE CLERK OF THE SCHOOL DISTRICT WHEREIN THE SURCHARGE IS
IMPOSED.
(F) COOPERATION. (1) EVERY SCHOOL DISTRICT IMPOSING A SCHOOL DISTRICT
INCOME TAX SURCHARGE UNDER THE AUTHORITY OF THIS SECTION SHALL FURNISH
THE COMMISSIONER SUCH INFORMATION AS HE OR SHE MAY REQUIRE IN THE ADMIN-
ISTRATION OF SUCH SURCHARGE, ANY OTHER LAW TO THE CONTRARY NOTWITHSTAND-
ING.
(2) THE COMMISSIONER SHALL ADVISE AND COOPERATE WITH SCHOOL DISTRICT
OFFICIALS FOR THE PURPOSE OF UNIFORM ADMINISTRATION, COLLECTION AND
DISTRIBUTION OF THE TAX AUTHORIZED BY THIS SECTION.
(3) ANY AMENDMENT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS
CHAPTER, TO THE EXTENT THAT SUCH AMENDMENT IS APPLICABLE TO THE MODEL
SCHOOL DISTRICT INCOME TAX SURCHARGE, SHALL BE DEEMED TO HAVE BEEN
INCORPORATED IN THE ANALOGOUS PROVISION OR PROVISIONS OF SUCH MODEL
SURCHARGE.
§ 1362. MODEL RESOLUTION. THE RESOLUTION DESCRIBED IN SUBSECTION (B)
OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THIS ARTICLE SHALL BE IN
SUBSTANTIALLY THE FOLLOWING FORM:
IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE.
THE SCHOOL DISTRICT HEREBY ADOPTS THE MODEL SCHOOL
DISTRICT INCOME TAX SURCHARGE, FOR TAXABLE YEARS BEGINNING ON AND AFTER
JANUARY 1, 20 , AT THE RATE OF PERCENT.
§ 1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE.
ADOPTION BY A SCHOOL DISTRICT OF THE RESOLUTION SET FORTH IN SECTION
THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE SHALL BE DEEMED TO BE
ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE SET FORTH
BELOW.
MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE
SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
2. RENTER'S CREDIT.
3. NET STATE TAX.
4. SCHOOL DISTRICT RESIDENT DEFINED.
5. RETURNS AND LIABILITIES.
6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES.
7. CREDIT FOR TAX WITHHELD.
8. ENFORCEMENT WITH OTHER TAXES.
9. ADMINISTRATION, COLLECTION AND REVIEW.
SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX
SURCHARGE. (A) GENERAL. THE SCHOOL DISTRICT INCOME TAX SURCHARGE AT THE
RATE ADOPTED SHALL BE IMPOSED FOR EACH TAXABLE YEAR ON EVERY SCHOOL
DISTRICT RESIDENT INDIVIDUAL, ESTATE AND TRUST. A TAXPAYER'S TAXABLE
YEAR FOR PURPOSES OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE
THE SAME AS THE TAXPAYER'S TAXABLE YEAR UNDER ARTICLE TWENTY-TWO OF THE
TAX LAW.
(B) PARTNERS AND PARTNERSHIPS. A PARTNERSHIP AS SUCH SHALL NOT BE
SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE. PERSONS CARRYING ON
BUSINESS AS PARTNERS SHALL BE LIABLE FOR SUCH SCHOOL DISTRICT INCOME TAX
SURCHARGE ONLY IN THEIR SEPARATE OR INDIVIDUAL CAPACITIES.
A. 10136 14
(C) ASSOCIATIONS TAXABLE AS CORPORATIONS. AN ASSOCIATION, TRUST OR
OTHER UNINCORPORATED ORGANIZATION WHICH IS TAXABLE AS A CORPORATION FOR
FEDERAL INCOME TAX PURPOSES SHALL NOT BE SUBJECT TO THE SCHOOL DISTRICT
INCOME TAX SURCHARGE.
(D) EXEMPT TRUSTS AND ORGANIZATIONS. A TRUST OR OTHER UNINCORPORATED
ORGANIZATION WHICH BY REASON OF ITS PURPOSES OR ACTIVITIES IS EXEMPT
FROM FEDERAL INCOME TAX SHALL BE EXEMPT FROM THE SCHOOL DISTRICT INCOME
TAX SURCHARGE (REGARDLESS OF WHETHER SUBJECT TO FEDERAL INCOME TAX ON
UNRELATED BUSINESS TAXABLE INCOME).
§ 2. RENTER'S CREDIT. (A) GENERAL. A TAXPAYER WHO IS A QUALIFIED
LESSEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS MODEL
SURCHARGE EQUAL TO ONE AND ONE-QUARTER PERCENT OF HIS OR HER ADJUSTED
RENT.
(B) QUALIFIED LESSEE. A QUALIFIED LESSEE IS AN INDIVIDUAL WHOSE RESI-
DENCE WITHIN THE SCHOOL DISTRICT IS LEASED REAL PROPERTY WHICH IS NOT
RESIDENTIAL REAL PROPERTY.
(C) ADJUSTED RENT. THE TERM ADJUSTED RENT SHALL HAVE THE SAME MEANING
AS IN SUBPARAGRAPH (G) OF PARAGRAPH ONE OF SUBSECTION (E) OF SECTION SIX
HUNDRED SIX OF THE TAX LAW, WITH RESPECT TO THE RENTAL PAID BY THE QUAL-
IFIED LESSEE DURING THE TAXABLE YEAR FOR THE RESIDENCE REFERRED TO IN
SUBSECTION (B) OF THIS SECTION.
§ 3. NET STATE TAX. (A) GENERAL. THE NET STATE TAX OF A SCHOOL
DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST SHALL MEAN THE SUM OF ALL
OF THE TAXES IMPOSED ON SUCH INDIVIDUAL, ESTATE OR TRUST UNDER ARTICLE
TWENTY-TWO OF THE TAX LAW FOR THE TAXABLE YEAR LESS THE APPLICABLE CRED-
ITS (OTHER THAN THE CREDIT FOR TAX WITHHELD) ALLOWED TO SUCH INDIVIDUAL,
ESTATE OR TRUST UNDER SUCH ARTICLE FOR THE TAXABLE YEAR.
(B) CHANGE OF RESIDENCE. WHEN AN INDIVIDUAL OR TRUST CHANGES SCHOOL
DISTRICT RESIDENT STATUS DURING THE TAXABLE YEAR, THE NET STATE TAX
SHALL BE THE NET STATE TAX DETERMINED UNDER SUBSECTION (A) OF THIS
SECTION MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE NUMBER
OF MONTHS OF RESIDENCE IN THE SCHOOL DISTRICT IN THE TAXABLE YEAR AND
THE DENOMINATOR OF WHICH IS THE NUMBER OF MONTHS IN THE TAXABLE YEAR.
FOR PURPOSES OF THIS SUBSECTION, A MONTH SHALL CONSTITUTE A MONTH OF
RESIDENCE IF THE INDIVIDUAL OR TRUST IS A RESIDENT FOR MORE THAN FIFTEEN
DAYS OF THAT MONTH.
§ 4. SCHOOL DISTRICT RESIDENT DEFINED. (A) SCHOOL DISTRICT RESIDENT
INDIVIDUAL. A SCHOOL DISTRICT RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL
WHO IS DOMICILED IN THE SCHOOL DISTRICT WHEREIN THE SCHOOL DISTRICT
INCOME TAX SURCHARGE IS IMPOSED, UNLESS
(1) SUCH INDIVIDUAL MAINTAINS NO PERMANENT PLACE OF ABODE IN SUCH
SCHOOL DISTRICT, MAINTAINS A PERMANENT PLACE OF ABODE ELSEWHERE, AND
SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS OF THE TAXABLE YEAR IN
SUCH SCHOOL DISTRICT, OR
(2)(A) WITHIN ANY PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS
SUCH INDIVIDUAL IS PRESENT IN A FOREIGN COUNTRY OR COUNTRIES FOR AT
LEAST FOUR HUNDRED FIFTY DAYS, AND (B) DURING SUCH PERIOD OF FIVE
HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS NOT PRESENT IN SUCH
SCHOOL DISTRICT FOR MORE THAN NINETY DAYS AND DOES NOT MAINTAIN A PERMA-
NENT PLACE OF ABODE IN SUCH SCHOOL DISTRICT AT WHICH HIS OR HER SPOUSE
(UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE PRESENT
FOR MORE THAN NINETY DAYS, AND (C) DURING THE NONRESIDENT PORTION OF THE
TAXABLE YEAR WITH OR WITHIN WHICH SUCH PERIOD OF FIVE HUNDRED FORTY-
EIGHT CONSECUTIVE DAYS BEGINS AND THE NONRESIDENT PORTION OF THE TAXABLE
YEAR WITH OR WITHIN WHICH SUCH PERIOD ENDS, HE OR SHE IS PRESENT IN SUCH
SCHOOL DISTRICT FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN AMOUNT
A. 10136 15
WHICH BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS CONTAINED IN
SUCH PORTION OF THE TAXABLE YEAR BEARS TO FIVE HUNDRED FORTY-EIGHT.
(B) SCHOOL DISTRICT RESIDENT ESTATE OR TRUST. A SCHOOL DISTRICT RESI-
DENT ESTATE OR TRUST MEANS: (1) THE ESTATE OF A DECEDENT WHO AT HIS OR
HER DEATH WAS DOMICILED IN SUCH SCHOOL DISTRICT,
(2) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS-
FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN
SUCH SCHOOL DISTRICT, OR
(3) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
(A) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH PROP-
ERTY WAS TRANSFERRED TO THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST
WAS THEN IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSE-
QUENTLY BECOME IRREVOCABLE; OR
(B) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH TRUST
OR PORTION OF A TRUST BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH
PROPERTY WAS TRANSFERRED TO THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREV-
OCABLE.
FOR THE PURPOSES OF THE FOREGOING, A TRUST OR A PORTION OF A TRUST IS
REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY
FUTURE TIME, TO REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTITUTES
SUCH TRUST OR PORTION OF A TRUST AND A TRUST OR PORTION OF A TRUST
BECOMES IRREVOCABLE WHEN THE POSSIBILITY THAT SUCH POWER MAY BE EXER-
CISED HAS BEEN TERMINATED.
§ 5. RETURNS AND LIABILITIES. (A) GENERAL. ON OR BEFORE THE FIFTEENTH
DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR, A SCHOOL
DISTRICT INCOME TAX SURCHARGE RETURN SHALL BE MADE AND FILED BY OR FOR
EVERY SCHOOL DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST REQUIRED TO
FILE A NEW YORK STATE PERSONAL INCOME TAX RETURN FOR THE TAXABLE YEAR.
(B) HUSBAND AND WIFE. (1) IF THE NEW YORK STATE PERSONAL INCOME TAX
LIABILITIES OF HUSBAND AND WIFE ARE DETERMINED ON SEPARATE RETURNS,
THEIR SCHOOL DISTRICT INCOME TAX SURCHARGE LIABILITIES AND RETURNS SHALL
BE SEPARATE.
(2) IF THE NEW YORK STATE PERSONAL INCOME TAX LIABILITIES OF HUSBAND
AND WIFE (OTHER THAN A HUSBAND AND WIFE DESCRIBED IN PARAGRAPH THREE OF
THIS SUBSECTION) ARE DETERMINED ON A JOINT RETURN, THEY SHALL FILE A
JOINT SCHOOL DISTRICT INCOME TAX SURCHARGE RETURN, AND THEIR SCHOOL
DISTRICT INCOME TAX SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL
EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN
SUBSECTION (E) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THE TAX LAW.
(3) IF EITHER HUSBAND OR WIFE IS A SCHOOL DISTRICT RESIDENT AND THE
OTHER IS A SCHOOL DISTRICT NONRESIDENT, AND THEIR NEW YORK STATE
PERSONAL INCOME TAX LIABILITIES ARE DETERMINED ON A JOINT RETURN:
(A) THE RESIDENT SPOUSE MAY ELECT TO FILE A SEPARATE SCHOOL DISTRICT
INCOME TAX SURCHARGE RETURN, IN WHICH CASE THE SURCHARGE SHALL BE
APPLIED TO A SEPARATE NET STATE TAX, SUCH SEPARATE NET STATE TAX TO BE
THAT PORTION OF THE TOTAL NET STATE TAX DETERMINED FROM THE JOINT STATE
RETURN WHICH BEARS THE SAME RELATION TO SUCH TOTAL NET STATE TAX AS THE
NEW YORK ADJUSTED GROSS INCOME (AS DEFINED IN SECTION SIX HUNDRED TWELVE
OF THE TAX LAW) OF THE RESIDENT SPOUSE BEARS TO THE JOINT NEW YORK
ADJUSTED GROSS INCOME, OR
(B) THEY MAY ELECT TO FILE A JOINT SCHOOL DISTRICT INCOME TAX
SURCHARGE RETURN, IN WHICH CASE THEIR SCHOOL DISTRICT INCOME TAX
SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL EXCEPT AS PROVIDED IN
PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN SUBSECTION (E) OF
SECTION SIX HUNDRED EIGHTY-FIVE OF THE TAX LAW, PROVIDED THAT (I) IF THE
SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A SURCHARGE, BUT AT
A. 10136 16
DIFFERENT RATES, THEY SHALL FILE THE JOINT SCHOOL DISTRICT INCOME TAX
SURCHARGE RETURN WITH THE SCHOOL DISTRICT IMPOSING THE HIGHER RATE OF
SURCHARGE, AND THERE SHALL BE NO SURCHARGE LIABILITY TO THE OTHER SCHOOL
DISTRICT, OR
(II) IF THE SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A
SURCHARGE AND THE RATES ARE THE SAME, THEY SHALL FILE A JOINT SCHOOL
DISTRICT INCOME TAX SURCHARGE RETURN WITH EACH SCHOOL DISTRICT, BUT THE
SURCHARGE ON EACH SUCH RETURN SHALL BE APPLIED TO ONE-HALF OF THE NET
STATE TAX.
(4) UNDER REGULATIONS PRESCRIBED BY THE COMMISSIONER, IF
(A) A JOINT NEW YORK STATE PERSONAL INCOME TAX RETURN HAS BEEN MADE
UNDER SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW FOR
A TAXABLE YEAR, (B) ON SUCH RETURN THERE IS A SUBSTANTIAL UNDERSTATEMENT
OF TAX ATTRIBUTABLE TO GROSSLY ERRONEOUS ITEMS OF ONE SPOUSE, (C) THE
OTHER SPOUSE IS RELIEVED OF LIABILITY FOR NEW YORK STATE PERSONAL INCOME
TAX (INCLUDING INTEREST, PENALTIES AND OTHER AMOUNTS) FOR SUCH TAXABLE
YEAR TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE TO SUCH SUBSTAN-
TIAL UNDERSTATEMENT, AND (D) A JOINT SCHOOL DISTRICT PERSONAL INCOME TAX
SURCHARGE RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR THE TAXA-
BLE YEAR, THEN SUCH OTHER SPOUSE SHALL BE RELIEVED OF LIABILITY FOR
SCHOOL DISTRICT INCOME TAX SURCHARGE (INCLUDING INTEREST, PENALTIES AND
OTHER AMOUNTS) FOR SUCH TAXABLE YEAR UNDER THE SCHOOL DISTRICT INCOME
TAX SURCHARGE, TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE TO SUCH
SUBSTANTIAL UNDERSTATEMENT.
(5) IF A JOINT RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR A
TAXABLE YEAR AND ONLY ONE SPOUSE IS LIABLE FOR PAST-DUE SUPPORT, OR A
PAST-DUE LEGALLY ENFORCEABLE DEBT, OR AN AMOUNT OF A DEFAULT IN REPAY-
MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN
OF WHICH THE COMMISSIONER HAS BEEN NOTIFIED PURSUANT TO SECTION ONE
HUNDRED SEVENTY-ONE-C, ONE HUNDRED SEVENTY-ONE-D, ONE HUNDRED SEVENTY-
ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF THE TAX LAW, AS THE CASE MAY BE,
THEN AN OVERPAYMENT AND INTEREST THEREON SHALL BE CREDITED AGAINST SUCH
PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH AMOUNT
OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR
CITY UNIVERSITY LOAN, UNLESS THE SPOUSE NOT LIABLE FOR SUCH PAST-DUE
SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH AMOUNT OF A
DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY
UNIVERSITY LOAN DEMANDS, ON A DECLARATION MADE IN ACCORDANCE WITH REGU-
LATIONS OR INSTRUCTIONS PRESCRIBED BY THE COMMISSIONER, THAT THE PORTION
OF THE OVERPAYMENT AND INTEREST ATTRIBUTABLE TO SUCH SPOUSE NOT BE CRED-
ITED AGAINST THE PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE
DEBT, OR AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE
UNIVERSITY OR CITY UNIVERSITY LOAN OWED BY THE OTHER SPOUSE. UPON SUCH
DEMAND THE COMMISSIONER SHALL DETERMINE THE AMOUNT OF THE OVERPAYMENT
ATTRIBUTABLE TO EACH SPOUSE IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY
THE COMMISSIONER AND CREDIT ONLY THAT PORTION OF THE OVERPAYMENT AND
INTEREST THEREON ATTRIBUTABLE TO THE SPOUSE LIABLE FOR PAST-DUE SUPPORT,
OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR AMOUNT OF A DEFAULT IN REPAY-
MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN
AGAINST SUCH PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT,
OR SUCH AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE
UNIVERSITY OR CITY UNIVERSITY LOAN.
(C) 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 THE
A. 10136 17
FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TWELVE-
MONTH PERIOD WHICH BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL PART OF
THE YEAR.
(D) INDIVIDUALS UNDER A DISABILITY. THE RETURN FOR AN INDIVIDUAL WHO
IS UNABLE TO MAKE A RETURN BY REASON OF MINORITY OR OTHER DISABILITY
SHALL BE MADE AND FILED BY HIS OR HER GUARDIAN, COMMITTEE, FIDUCIARY OR
OTHER PERSON CHARGED WITH THE CARE OF HIS OR HER PERSON OR PROPERTY
(OTHER THAN A RECEIVER IN POSSESSION OF ONLY A PART OF HIS OR HER PROP-
ERTY), OR BY HIS OR HER DULY AUTHORIZED AGENT.
(E) ESTATES AND TRUSTS. THE RETURN FOR AN ESTATE OR TRUST SHALL BE
MADE AND FILED BY THE FIDUCIARY.
(F) JOINT FIDUCIARIES. IF TWO OR MORE FIDUCIARIES ARE ACTING JOINTLY,
THE RETURN MAY BE MADE BY ANY ONE OF THEM.
§ 6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES. THE SCHOOL DISTRICT
INCOME TAX SURCHARGE SHALL BE WITHHELD FROM THE WAGES OF SCHOOL DISTRICT
RESIDENTS IN THE SAME MANNER AND SUBJECT TO THE SAME REQUIREMENTS, TO
THE GREATEST EXTENT POSSIBLE, AS PROVIDED IN SECTIONS SIX HUNDRED SEVEN-
TY-ONE THROUGH SIX HUNDRED SEVENTY-EIGHT OF THE TAX LAW EXCEPT THAT THE
TERM "AGGREGATE AMOUNT" CONTAINED IN PARAGRAPHS ONE, TWO AND THREE OF
SUBSECTION (A) OF SECTION SIX HUNDRED SEVENTY-FOUR OF THE TAX LAW SHALL
MEAN THE AGGREGATE OF THE AMOUNTS REQUIRED TO BE DEDUCTED AND WITHHELD
OF THE NEW YORK STATE PERSONAL INCOME TAX, THE CITY INCOME AND EARNINGS
TAXES AUTHORIZED PURSUANT TO ARTICLES THIRTY, THIRTY-A AND THIRTY-B OF
THE TAX LAW, AND THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
§ 7. CREDIT FOR TAX WITHHELD. THE SCHOOL DISTRICT INCOME TAX SURCHARGE
WITHHELD SHALL NOT REDUCE NET STATE TAX FOR PURPOSES OF COMPUTING THE
SCHOOL DISTRICT INCOME TAX SURCHARGE, BUT ANY AMOUNT OF TAX ACTUALLY
DEDUCTED AND WITHHELD UNDER THIS MODEL SURCHARGE IN ANY CALENDAR YEAR
SHALL BE DEEMED TO HAVE BEEN PAID TO THE DEPARTMENT OF TAXATION AND
FINANCE ON BEHALF OF THE PERSON FROM WHOM WITHHELD, AND SUCH PERSON
SHALL BE CREDITED WITH HAVING PAID THE AMOUNT OF TAX FOR THE TAXABLE
YEAR BEGINNING IN SUCH CALENDAR YEAR. FOR A TAXABLE YEAR OF LESS THAN
TWELVE MONTHS, THE CREDIT SHALL BE MADE UNDER REGULATIONS OF THE COMMIS-
SIONER.
§ 8. ENFORCEMENT WITH OTHER TAXES. (A) JOINT ASSESSMENT. IF THERE IS
ASSESSED A TAX UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE AND THERE
IS ALSO ASSESSED A TAX AGAINST THE SAME TAXPAYER PURSUANT TO ARTICLE
TWENTY-TWO OF THE TAX LAW OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE
AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THE TAX LAW AND
PAYMENT OF A SINGLE AMOUNT IS REQUIRED UNDER THE PROVISIONS OF THIS
MODEL SURCHARGE, PAYMENT SHALL BE DEEMED TO HAVE BEEN MADE WITH RESPECT
TO THE TAXES SO ASSESSED IN PROPORTION TO THE AMOUNTS OF SUCH TAXES DUE,
INCLUDING TAX, PENALTIES, INTEREST AND ADDITIONS TO TAX.
(B) JOINT ACTION. IF THE COMMISSIONER TAKES ACTION UNDER SUCH ARTICLE
TWENTY-TWO OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF
ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THE TAX LAW WITH RESPECT TO THE
ENFORCEMENT AND COLLECTION OF THE TAX OR TAXES ASSESSED UNDER SUCH ARTI-
CLES THE COMMISSIONER SHALL, WHEREVER POSSIBLE, ACCOMPANY SUCH ACTION
WITH A SIMILAR ACTION UNDER SIMILAR ENFORCEMENT AND COLLECTION
PROVISIONS OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
(C) APPORTIONMENT OF MONEYS COLLECTED BY JOINT ACTION. ANY MONEYS
COLLECTED AS A RESULT OF SUCH JOINT ACTION SHALL BE DEEMED TO HAVE BEEN
COLLECTED IN PROPORTION TO THE AMOUNTS DUE, INCLUDING TAX, PENALTIES,
INTEREST AND ADDITIONS TO TAX, UNDER ARTICLE TWENTY-TWO OF THE TAX LAW
OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
A. 10136 18
TY, THIRTY-A, OR THIRTY-B OF THE TAX LAW AND THE SCHOOL DISTRICT INCOME
TAX SURCHARGE.
(D) JOINT DEFICIENCY ACTION. WHENEVER THE COMMISSIONER TAKES ANY
ACTION WITH RESPECT TO A DEFICIENCY OF INCOME TAX UNDER ARTICLE TWENTY-
TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHOR-
ITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THE TAX LAW, OTHER THAN
THE ACTION SET FORTH IN SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER
MAY IN HIS OR HER DISCRETION ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION
UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
§ 9. ADMINISTRATION, COLLECTION AND REVIEW. (A) GENERAL. EXCEPT AS
OTHERWISE PROVIDED IN THIS ARTICLE, THE SCHOOL DISTRICT INCOME TAX
SURCHARGE SHALL BE ADMINISTERED AND COLLECTED BY THE COMMISSIONER IN THE
SAME MANNER AS THE TAX IMPOSED BY ARTICLE TWENTY-TWO OF THE TAX LAW IS
ADMINISTERED AND COLLECTED BY THE COMMISSIONER. ALL OF THE PROVISIONS OF
ARTICLE TWENTY-TWO OF THE TAX LAW RELATING TO OR APPLICABLE TO PAYMENT
OF ESTIMATED TAX, RETURNS, PAYMENT OF TAX, WITHHOLDING OF TAX FROM
WAGES, EMPLOYER'S STATEMENTS AND RETURNS, EMPLOYER'S LIABILITY FOR TAXES
REQUIRED TO BE WITHHELD AND ALL OTHER PROVISIONS OF ARTICLE TWENTY-TWO
RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, LIABILITY
FOR AND REVIEW OF THE TAX IMPOSED BY ARTICLE TWENTY-TWO, INCLUDING
SECTIONS SIX HUNDRED FIFTY-TWO AND SIX HUNDRED FIFTY-THREE, SECTIONS SIX
HUNDRED FIFTY-SEVEN THROUGH SIX HUNDRED FIFTY-NINE, SECTION SIX HUNDRED
SIXTY-ONE, SECTIONS SIX HUNDRED SEVENTY-ONE AND SIX HUNDRED SEVENTY-TWO,
SECTIONS SIX HUNDRED SEVENTY-FOUR THROUGH SIX HUNDRED SEVENTY-EIGHT AND
SECTIONS SIX HUNDRED EIGHTY-ONE THROUGH SIX HUNDRED NINETY-SEVEN OF THE
TAX LAW, INCLUSIVE, SHALL APPLY TO THE SCHOOL DISTRICT INCOME TAX
SURCHARGE WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN
INCORPORATED IN FULL INTO THIS MODEL SURCHARGE, AND HAD EXPRESSLY
REFERRED TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE, EXCEPT WHERE ANY
SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS MODEL
SURCHARGE OR IS NOT RELEVANT TO THIS MODEL SURCHARGE. WHENEVER THERE IS
JOINT COLLECTION OF STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR
EARNINGS TAXES OR SCHOOL DISTRICT INCOME TAX SURCHARGE, IT SHALL BE
DEEMED THAT SUCH COLLECTION SHALL REPRESENT PROPORTIONATELY THE APPLICA-
BLE STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR EARNINGS TAX OR
SCHOOL DISTRICT INCOME TAX SURCHARGE IN DETERMINING THE AMOUNT TO BE
REMITTED TO THE SCHOOL DISTRICT.
(B) PAYMENT TO DESIGNATED DEPOSITORIES. THE COMMISSIONER, IN HIS OR
HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR ALL PERSONS LIABLE FOR ANY
SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS MODEL SURCHARGE
TO MAKE PAYMENTS ON ACCOUNT OF ESTIMATED SCHOOL DISTRICT INCOME TAX
SURCHARGE AND PAYMENT OF ANY SCHOOL DISTRICT INCOME TAX SURCHARGE,
PENALTY OR INTEREST TO SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES
DESIGNATED BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS,
BANKING HOUSES OR TRUST COMPANIES, AS AGENT OF THE COMMISSIONER, IN LIEU
OF PAYING A SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS
MODEL SURCHARGE DIRECTLY TO THE COMMISSION. HOWEVER, THE COMMISSIONER
SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES WHICH
ARE DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES OF THE STATE.
(C) COMBINED FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
ARTICLE, THE COMMISSIONER MAY REQUIRE:
(1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
(A) A COMBINED RETURN WHICH, IN ADDITION TO THE RETURN PROVIDED FOR IN
SECTION FIVE HEREOF, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED PURSU-
ANT TO THE PROVISIONS OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW TO
BE FILED BY AN INDIVIDUAL, ESTATE OR TRUST WHO OR WHICH IS A RESIDENT OF
A. 10136 19
NEW YORK STATE, AND WHICH MAY BE REQUIRED TO BE FILED BY SUCH INDIVID-
UAL, ESTATE OR TRUST PURSUANT TO ANY LOCAL LAW ENACTED PURSUANT TO THE
AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THE TAX LAW, AND
(B) A COMBINED EMPLOYER'S RETURN WHICH, IN ADDITION TO THE EMPLOYER'S
RETURN PROVIDED FOR BY THIS MODEL SURCHARGE, MAY ALSO INCLUDE ANY OF THE
EMPLOYER'S RETURNS REQUIRED TO BE FILED BY THE SAME EMPLOYER PURSUANT TO
THE PROVISIONS OF SECTION SIX HUNDRED SEVENTY-FOUR OF THE TAX LAW AND
REQUIRED TO BE FILED BY SUCH EMPLOYER PURSUANT TO ANY LOCAL LAW ENACTED
UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THE TAX
LAW.
(2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
RESPECT TO THE PAYMENT OF ESTIMATED TAX, THE COMMISSIONER MAY ALSO
REQUIRE THE PAYMENT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF
THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) WHICH WOULD HAVE
BEEN REQUIRED TO BE PAID WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN
PAYMENT OF ESTIMATED TAX PURSUANT TO THE PROVISIONS OF ARTICLE TWENTY-
TWO OF THE TAX LAW AND THIS MODEL SURCHARGE AND THE PROVISIONS OF LOCAL
LAWS ENACTED UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B
OF THE TAX LAW.
§ 1364. DEPOSIT AND DISPOSITION OF REVENUES. (A) DEPOSIT OF REVENUES.
ALL REVENUE COLLECTED BY THE COMMISSIONER FROM THE TAX IMPOSED BY ANY
SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE SHALL BE
DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST
COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO THE CREDIT
OF THE COMPTROLLER, IN TRUST FOR SUCH SCHOOL DISTRICT. SUCH DEPOSITS
SHALL BE KEPT IN TRUST AND SEPARATE AND APART FROM ALL OTHER MONEYS IN
THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL REQUIRE
ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES OF SUCH REVENUE COLLECTED
BY THE COMMISSIONER.
(B) RESERVES. THE COMPTROLLER SHALL RETAIN A RESERVE FOR REFUNDS IN
SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS IN RESPECT TO SUCH TAX AND A RESERVE FOR REASONABLE COSTS OF THE
COMMISSIONER IN ADMINISTERING, COLLECTING AND DISTRIBUTING SUCH TAX.
(1) FROM THE RESERVE FOR REFUNDS THE COMPTROLLER SHALL PAY ANY REFUNDS
OF SUCH TAX TO WHICH A TAXPAYER SHALL BE ENTITLED UNDER ANY SURCHARGE
ENACTED BY A SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE,
EXCEPT THAT
(A) THE COMPTROLLER SHALL PAY TO THE STATE DEPARTMENT OF SOCIAL
SERVICES THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH
AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS THE
AMOUNT TO BE CREDITED AGAINST PAST-DUE SUPPORT PURSUANT TO SUBDIVISION
SIX OF SECTION ONE HUNDRED SEVENTY-ONE-C OF THIS CHAPTER,
(B) THE COMPTROLLER SHALL PAY TO THE NEW YORK STATE HIGHER EDUCATION
SERVICES CORPORATION THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE
INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMIS-
SIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT OF DEFAULTS IN
REPAYMENT OF GUARANTEED STUDENT LOANS PURSUANT TO SUBDIVISION FIVE OF
SECTION ONE HUNDRED SEVENTY-ONE-D OF THIS CHAPTER,
(C) THE COMPTROLLER SHALL PAY TO THE STATE UNIVERSITY OF NEW YORK OR
THE CITY UNIVERSITY OF NEW YORK RESPECTIVELY THAT AMOUNT OF OVERPAYMENT
OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR
HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT
OF DEFAULTS IN REPAYMENT OF STATE OR CITY UNIVERSITY LOANS PURSUANT TO
SUBDIVISION SIX OF SECTION ONE HUNDRED SEVENTY-ONE-E OF THIS CHAPTER,
(D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMPTROLLER SHALL
CREDIT TO THE REVENUE ARREARAGE ACCOUNT, PURSUANT TO SECTION
A. 10136 20
NINETY-ONE-A OF THE STATE FINANCE LAW, THAT AMOUNT OF OVERPAYMENT OF
SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR
HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST A PAST-DUE
LEGALLY ENFORCEABLE DEBT OWED TO A STATE AGENCY PURSUANT TO SUBDIVISION
SIX OF SECTION ONE HUNDRED SEVENTY-ONE-F OF THIS CHAPTER, AND
(E) THE COMPTROLLER SHALL PAY TO A NON-OBLIGATED SPOUSE THAT AMOUNT OF
OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH HAS BEEN
CREDITED PURSUANT TO SECTION ONE HUNDRED SEVENTY-ONE-C, ONE HUNDRED
SEVENTY-ONE-D, ONE HUNDRED SEVENTY-ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF
THIS CHAPTER AND WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS
THE AMOUNT DUE SUCH NON-OBLIGATED SPOUSE PURSUANT TO PARAGRAPH SIX OF
SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, AND THE
COMPTROLLER SHALL DEDUCT A LIKE AMOUNT WHICH HE OR SHE SHALL PAY INTO
THE TREASURY TO THE CREDIT OF THE GENERAL FUND FROM AMOUNTS SUBSEQUENTLY
PAYABLE TO THE DEPARTMENT OF FAMILY ASSISTANCE, THE STATE UNIVERSITY OF
NEW YORK, THE CITY UNIVERSITY OF NEW YORK, THE HIGHER EDUCATION SERVICES
CORPORATION OR TO THE REVENUE ARREARAGE ACCOUNT PURSUANT TO SECTION
NINETY-ONE-A OF THE STATE FINANCE LAW, AS THE CASE MAY BE, WHICHEVER HAD
BEEN CREDITED THE AMOUNT ORIGINALLY WITHHELD FROM SUCH OVERPAYMENT.
(2) THE AMOUNT RESERVED FOR ADMINISTERING, COLLECTING AND DISTRIBUTING
SUCH TAX SHALL BE PAID BY THE COMPTROLLER ON OR BEFORE THE FIFTEENTH DAY
OF EACH MONTH INTO THE GENERAL FUND OF THE STATE TREASURY TO THE CREDIT
OF THE STATE PURPOSES ACCOUNT THEREIN.
§ 13. Subdivision (e) of section 1800 of the tax law, as added by
chapter 65 of the laws of 1985, is amended to read as follows:
(e) As used in this article, the term "related income or earnings tax
statute" means any law, ordinance or resolution imposed pursuant to the
authority of article thirty, [thirty-a or thirty-b] THIRTY-A, THIRTY-B
OR THIRTY-C of this chapter [or article two-E of the general city law,
while such article two-E shall remain in full force and effect].
§ 14. Subdivision (c) of section 3008 of the tax law, as added by
chapter 770 of the laws of 1992, is amended to read as follows:
(c) Assessments attributable to certain mathematical errors by the
department. In the case of an assessment of any tax imposed by or pursu-
ant to the authority of article twenty-two, thirty, thirty-A [or], thir-
ty-B OR THIRTY-C of this chapter [or article two-E of the general city
law] attributable in whole or in part to a mathematical error described
in subparagraph (A) of paragraph two of subsection (g) of section
sixty-two hundred thirteen of the federal internal revenue code, if the
return was prepared by an officer or employee of the department acting
in his or her official capacity to provide assistance to taxpayers in
the preparation of income tax returns, the commissioner is authorized to
abate the assessment of all or any part of any interest on such defi-
ciency for any period ending on or before the tenth day following the
date of notice and demand by the commissioner for payment of the defi-
ciency.
§ 15. Section 171 of the tax law is amended by adding a new subdivi-
sion twenty-ninth to read as follows:
TWENTY-NINTH. DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A
STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN
HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS
OF ARTICLE THIRTY-C OF THIS CHAPTER AND SECTION THIRTEEN HUNDRED SEVEN
OF THE REAL PROPERTY TAX LAW.
§ 16. The state education department and the department of taxation
and finance are hereby directed to conduct a joint study on whether this
act has provided school districts with greater flexibility to finance
A. 10136 21
public education and afforded relief to residential property taxpayers,
and report jointly to the governor and the legislature together with any
recommendations for change to meet these purposes. Said study shall not
commence until this act has been in effect for five years upon which the
aforementioned agencies shall file a joint written report to the gover-
nor and the legislature by no later than the sixth year after this act
takes effect.
§ 17. This act shall take effect immediately; provided that the amend-
ments to subdivision 1 of section 171-a of the tax law made by section
six of this act shall be subject to the expiration and reversion of such
subdivision pursuant to section 12 of chapter 90 of the laws of 2014, as
amended, when upon such date the provisions of section six-a of this act
shall take effect.
§ 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.
§ 4. This act shall take effect immediately provided, however, that
the applicable effective dates of Parts A and B of this act shall be as
specifically set forth in the last section of such Parts.
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