Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 12, 2018 |
signed chap.59 |
Apr 02, 2018 |
delivered to governor |
Mar 30, 2018 |
returned to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.27 substituted for a9509c referred to ways and means delivered to assembly passed senate message of necessity - 3 day message ordered to third reading cal.740 print number 7509c |
Mar 30, 2018 |
amend (t) and recommit to finance |
Mar 13, 2018 |
print number 7509b |
Mar 13, 2018 |
amend (t) and recommit to finance |
Feb 16, 2018 |
print number 7509a |
Feb 16, 2018 |
amend (t) and recommit to finance |
Jan 18, 2018 |
referred to finance |
Senate Bill S7509C
Signed By Governor2017-2018 Legislative Session
Enacts into law major components of legislation which are necesary to impliment the state fiscal plan for the 2018-2019 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Mar 30, 2018
aye (52)- Addabbo Jr.
- Akshar
- Alcantara
- Avella
- Bailey
- Benjamin
- Bonacic
- Boyle
- Breslin
- Brooks
- Carlucci
- Comrie
- DeFrancisco
- Dilan
- Flanagan
- Funke
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Helming
- Jacobs
- Kaminsky
- Kavanagh
- Kennedy
- Klein
- Krueger
- LaValle
- Lanza
- Larkin
- Little
- Marcellino
- Montgomery
- Murphy
- O'Mara
- Parker
- Peralta
- Persaud
- Phillips
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Sanders Jr.
- Savino
- Seward
- Stavisky
- Stewart-Cousins
- Valesky
- Young
excused (1)
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Mar 30, 2018 - Finance Committee Vote
S7509C33Aye0Nay3Aye with Reservations0Absent1Excused0Abstained-
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Finance Committee Vote: Mar 30, 2018
aye (33)excused (1)
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Bill Amendments
2017-S7509 - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509 - Sponsor Memo
BILL NUMBER: S7509 SPONSOR: BUDGET TITLE OF BILL: An act to amend the real property tax law, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufactured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax
law, in relation to taxable state land (Part F); to amend the real prop- erty tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extend- ing the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and bever- ages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller infor- mation regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commission- er of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the administrative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limitations for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relat- ing thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and remov- ing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain part- ners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conform- ity tax and requiring non-collecting sellers to provide specified infor- mation to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to establishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the after- care of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facili- ties, 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 breeding law and other laws relating to simulcasting and 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 provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II) PURPOSE: This bill contains provisions needed to implement the Revenue portion of the FY 2019 Executive Budget. This memorandum describes Parts A through II of the bill which are described wholly within the parts listed below. Part A - Cap annual growth in STAR benefit amounts at 0%. PURPOSE: This bill would impose a zero percent cap upon the growth in Basic and Enhanced STAR benefits, beginning with the 2018-19 school year. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: STAR was enacted in 1997 to offset rising property taxes for homeowners and to provide additional targeted property tax relief to senior citi- zens. Since then, enhancements have been made that have contributed to increases in the current and projected cost of the STAR program. The costs of the STAR program increased approximately 33 percent between FY 2002 and FY 2017. The direct costs of the STAR program in FY 2017 were over $3.3 billion. Existing law allows all savings to grow at a rate not to exceed 2 percent annually, as implemented with the FY 2012 Enacted Budget. This bill would amend Real Property Tax Law § 1306-a to lower the cap on the growth of tax savings under the STAR Program, beginning with the 2018-19 school year. As a result, Basic and Enhanced STAR savings will be capped at the 2017-18 savings amounts for these programs. Capping growth of the program at current levels is critical for a balanced State budget. Notably, school tax levy growth has averaged below 2 percent since the enactment of the Governor's property tax cap; reducing STAR benefit growth reinforces the incentive for school districts to continue to control their costs and minimize the growth in their tax levies. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. Capping the exemption benefits would reduce General Fund spend- ing by $49 million in FY 2019. EFFECTIVE DATE: This bill would take effect immediately. Part B - Make Participation in the Income Verification Program (IVP) Mandatory for Enhanced STAR Recipients. PURPOSE: This bill would make participation in the STAR Income Verification Program (IVP) mandatory for eligible senior citizens wishing to receive Enhanced STAR. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: In order to be eligible for Enhanced STAR, the applicant's income must not exceed a certain ceiling, which is $86,000 for 2018. Under current law, applicants are required to demonstrate their income eligibility in one of two ways: 1. They may bring income documentation (generally, an income tax return) to the assessor's office each year as part of an annual renewal applica- tion. The assessor determines their eligibility annually based on the documentation provided. 2. Alternatively, they may enroll in the STAR IVP. The Department of Taxation and Finance will then annually determine their income eligibil- ity based upon its income tax records, and will notify the assessor of its findings. Applicants who have enrolled in the IVP need not reapply for the exemption thereafter so long as they file a personal income tax return each year. This bill would eliminate the first option and would require all Enhanced STAR recipients to be enrolled in the IVP, effective with applications for the exemption on 2019 assessment rolls. This would include recipients of the senior citizens exemption, who previously received Enhanced STAR automatically. In addition, to ensure that the Department can accurately verify the incomes of low-income persons who are not legally required to file income tax returns, the bill would provide that, in order to receive the exemption, such persons must report the sources and amounts of their income to the Department, in a manner to be prescribed by the Depart- ment. Further, to maximize both administrative efficiency and fairness to the taxpayer, the bill would provide that when an eligibility ques- tion is resolved by the Department after school taxes have been levied, the Department may pay the refund to the taxpayer directly, or collect the deficiency from the taxpayer directly, as appropriate. Verifying eligibility requirements ensures that the appropriate amount of benefit is given to the appropriate taxpayer. Prior to the implemen- tation of the STAR Registration Program, numerous properties received Basic STAR exemptions to which they were not entitled. This was largely due to the fact that before the STAR Registration Program was imple- mented in 2014, the Department had no direct role in the verification of income for Basic STAR (which is subject to a fixed income limit of $500,000). Once a mandated re-registration program was in place and the taxpayer identification numbers of all Basic STAR recipients became available, a more thorough income verification process was implemented, resulting in ongoing estimated savings of more $50 million. The STAR Registration Program does not extend to the Enhanced STAR exemption. As a result, the Department cannot verify that all Enhanced STAR recipients meet the eligibility requirements. This bill would enable it to do so. That will ensure that an Enhanced STAR benefit will be granted only in appropriate cases, and reduce the cost of the program to the State. At the same time, by removing the non-IVP option, the bill would make it easier for qualified senior citizens to keep their Enhanced STAR exemptions, because they will no longer need to reapply for the exemption annually by the locally applicable deadline. This bill would apply to applications for the Enhanced STAR benefit beginning with 2019 assessment rolls. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. Making participation in IVP mandatory would reduce General Fund spending by $35 million annually. EFFECTIVE DATE: This bill would take effect immediately. Part C - Require Filing RP-5217 for Co-Ops and Co-Op Shares. PURPOSE: This bill would require a real property transfer report to be filed with the Department of Taxation and Finance ("DTF") whenever there is a sale of a co-op apartment or unit, or whenever there is a transfer or acqui- sition of a controlling interest in an entity with an interest in real property (i.e., an equity sale). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under existing law, a real property transfer report (Form RP-5217) needs to be filed whenever a deed is recorded. The report is a public record that contains basic information about sale of real property, most nota- bly, the names of the buyers. Because cooperative housing apartment units are transferred by the sale of a share or shares in a cooperative housing corporation, those transactions, like the transfer or acquisi- tion of an entity with an interest in real property, do not require the filing of a deed and, therefore, do not require the filing of a real property transfer report. This bill would require a real property transfer report to be filed with the Department of Taxation and Finance ("DTF") whenever there is a sale of a co-op apartment or unit, or whenever there is a transfer or acqui- sition of a controlling interest in an entity with an interest in real property (i.e., an equity sale). This is beneficial for two reasons. First, assessment records do not typically contain the names and addresses of co-op 'owners' (who technically are not property owners, but are rather shareholders with proprietary leases), which can lead to delays in the issuance of STAR checks to such individuals. Requiring a real property transfer report will provide more information to DTF to help facilitate this process. Second, requiring real property transfer reports for equity sales of business entities would help both local assessors and DTF value complex property for real property tax purposes. For example, DTF is required to provide advisory appraisals for certain "specialty properties" such as power plants. Because these types of sales often occur by way of an equity sale, it is difficult for DTF to obtain data about comparable sales that can be used for valuation purposes. This proposal would assist both DTF and local assessors by placing equity sales on the same footing as other transfers of real property in New York State. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on January 1, 2019 and would apply to trans- fers and acquisitions occurring on and after that date. Part D - Reporting Requirement for Mobile Homes. PURPOSE: This bill would improve the administration of the STAR Credit program by requiring that manufactured home park owners or operators report addi- tional information to the Department of Housing and Community Renewal ("DHCR") and the Department of Taxation and Finance ("DTF"). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under current law, owners of manufactured home parks must file annual registration statements with DHCR. However, these statement do not typi- cally contain the names and addresses of the tenants residing in those locations. The failure to provide this information can delay the issu- ance of STAR checks to these individuals. This bill would amend the Real Property Tax Law to require, beginning in 2019, home park owners to file their registration statements on a quar- terly basis, and would also require the park owners to report, for each calendar quarter, the names of all residents and tenants in the park, and such other information as the DHCR Commissioner may require. DHCR would be required to provide DTF with a copy of each quarterly statement within 15 days of receipt. These reports would help DTF, as well as local assessors, administer the STAR credit and STAR exemption programs and avoid unnecessary delays caused by a lack of tenant information. Many manufactured home parks, by their very nature, regularly have newly manufactured homes entering, and existing manufactured homes leaving, the parks. This results in regular fluctuations in value that have real property tax implications. The transient nature of manufactured home park residents also complicates administration of the STAR credit and exemption, as it is difficult for DTF and local assessors to keep apprised of changes in manufactured home parks because there is no existing requirement that the annual reports that are currently filed with DHCR be shared with DTF, and there is no other source for such information. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part E - Technical amendments to property tax laws. PURPOSE: This bill would make technical amendments to various provisions of law relating to property tax programs. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would update or clarify laws relating to property tax programs in six respects: * PROPERTY TAX FREEZE CREDIT: The property tax freeze credit was effective in taxable years 2014 through 2016. The provisions of law that governed the credit remain on the books, though they are now inoperative and obsolete (see Tax Law § 606(bbb), General Municipal Law § 3-d and Education Law § 2023-b). This bill would repeal those obsolete provisions. At the same time, it would preserve the tax cap reporting requirements that they contain by recodi- fying the substance of subdivision 2 of General Municipal Law § 3-d, and subdivision 2 of Education Law § 2023-b, as a new General Municipal Law § 3-d and Education Law § 2023-b, respectively. * SCHOOL TAX RELIEF FUND: The enacted FY 2018 Budget contained a provision that repealed section 54-f of the State Finance Law, as part of the conversion of the New York City tax rate reduction program into a State tax credit program (L.2017, Ch.59, Pt. C). However, a reference to former SFL § 54-f still appears in SFL § 97-rrr, the statute that establishes a "school tax relief fund." This bill removes that obsolete reference from § 97-rrr. * PARTIAL PAYMENTS OF PROPERTY TAXES: The enacted FY 2018 Budget contained a provision that broadened the authority of local governments to allow partial payments of property taxes (Real Property Tax Law § 928-a). An issue has arisen in connection with counties that prepare tax bills or maintain the accounting system for one or more municipalities within the county. Under the law as writ- ten, if a municipality in such a county adopts a partial payment program, the county could be compelled to make costly software changes to accommodate the municipality's program. The impact upon the county could be magnified if different municipalities adopt different types of programs. This bill would provide that in a county that provides such services, a municipality may not adopt a partial payment program without the county's consent. * PROPERTY TAX PAYMENT DEADLINE EXTENSIONS: Section 925-b of the Real Property Tax Law enables local governments to give senior citizens an extra five days to pay their property taxes if they are receiving Enhanced STAR exemptions or senior citizen exemptions. However, seniors receiving Enhanced STAR credits are not currently eligible for such extensions. This bill would make them eligi- ble for these extensions. To ensure that this can be administered effec- tively, the bill would also modify the Tax Law secrecy provisions to enable the Tax Department to disclose the identities of Enhanced STAR credit recipients to tax receivers and collectors. * CERTIFICATION OF STAR EXEMPT AMOUNTS: The Department of Taxation and Finance is required to compute and certi- fy STAR exempt amounts every year at least 20 days before the filing of the tentative assessment roll. The Department is also required to adjust the Enhanced STAR exempt amounts annually to account for inflation, based upon Consumer Price Index data that is released by the United States Department of Labor in October of each year. These two require- ments are incompatible in the case of school districts whose taxes are levied upon prior year assessment rolls (as is done in Westchester Coun- ty), because the required CPI data does not become available until well after the filing of the applicable tentative - and final - assessment rolls. To ensure that property owners in these school districts receive the benefit of the inflation adjustment provided by law, the Tax Depart- ment has refrained from establishing those exempt amounts until the required CPI data has become available. This bill would ratify the Department's practice. * LIMIT MARRIED COUPLES TO ONE STAR CHECK: A new subparagraph (A) of § 606(eee)(6) of Tax Law would make it clear that the STAR credit may only be claimed upon one residence for a married couple, unless they are legally separated. A similar restriction currently applies to the STAR exemption (Real Property Tax Law, § 425 4-A A). The qualifications for the STAR credit program were designed to mirror those of the STAR exemption program. However, the language in the STAR exemption statute concerning married couples with multiple residences was not carried over into the credit statute due to an oversight. As a result, Tax Law § 606(eee) does not expressly bar married couples from receiving STAR credits on two residences simultane- ously, as the STAR exemption statute does. This bill clears up any possible ambiguity by expressly providing that a married couple may only receive one STAR benefit at a time, unless legally separated. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part F - State-Owned Lands Tax Cap Limitation. PURPOSE: This bill would reform the process for determining the amounts of taxes due on taxable State-owned lands. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would provide that, on and after April 1, 2018, the taxes payable on a taxable parcel of state land shall be equal to (1) the taxes that were payable on that parcel in the prior year multiplied by (2) the "allowable levy growth factor" determined for the applicable local fiscal year or school year under the appropriate tax cap statute (i.e., General Municipal Law § 3-c or Education Law § 2023-a). As a result, the tax payments on these lands would automatically increase each year by the rate of inflation or two percent, whichever is less. Tying the rate of growth to the tax cap formula means that, in most cases, the State land tax payments would grow at a rate that matches the growth rate of the overall local tax levy. In more limited cases - name- ly, where the tax levy has grown at a rate that is below the tax cap - the State land tax payments will increase at a rate in excess of the overall levy. The only time the State land tax payments would grow at a lower rate than the overall tax levy is where the tax cap has been over- ridden, and even in those cases, the tax payments would still grow by the allowable growth factor. This formula would not apply to the initial payment of taxes on taxable State land. Accordingly, in the case of newly-acquired taxable State land, or previously-exempt State land that becomes taxable due to a statutory change, the initial tax payment would be determined in the traditional manner (i.e., the taxable assessed value as determined by the local assessor would be multiplied by the local tax rate). Each year thereafter, the prior year's payment would be annually increased by the allowable levy growth factor. Current law requires State tax payments to be based on property values that must be reassessed and reevaluated every year. This imposes a very substantial administrative burden on both local and State officials, though the benefit associated with performing these tasks is very limit- ed. This proposal would make property valuations necessary only in the initial year the property is taxable. Thereafter, the payments would automatically grow at the same rate as the local tax burden in general, resulting in a system of fair and reasonable tax payments coupled with mandate relief and increased efficiency. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would provide a system of fair and reasonable tax payments. EFFECTIVE DATE: This bill would take effect immediately. Part G - Telecom Mass Property Assessments Extender and Fix. PURPOSE: This bill would extend the law authorizing the State to determine assessment ceilings for telecommunications property for another four years, while providing for a gradual phasing-in of the impacts, in place of the abrupt drop that is now pending. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The assessment ceiling program for telecommunications property would be extended by four years, expiring on January 1, 2023. It is currently set to expire on January 1, 2019. The bill would also provide a smooth transition from current assessment ceiling values to more accurate values. Under existing law, the assess- ment ceiling established each year, from 2015 through 2017, cannot be 10% below or above the assessments that were determined by local asses- sors in 2014. As a result, the taxable assessed values of these proper- ties changed only slightly in 2015, and did not change at all in 2016 or 2017. Generally, this has resulted in values that, as of December of 2017, are dramatically higher than what they will be once the program is fully implemented. This bill would extend and restructure the transitional provisions of the program so these impacts will be phased in gradually. Specifically, it would allow assessment ceilings to deviate from the 2014 assessments by as much as 25% in 2018, 50% in 2019 and 75% in 2020. Then, in 2021, the ceilings will no longer be tied to the 2014 assessments. Absent this provision, the ceilings would generally decline precipitously in 2018, significantly reducing the taxable assessed value of telecommunications property throughout the State and causing a shift in the tax burden to residents and businesses. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part H - Extend the statute of limitations on amended tax returns. PURPOSE: This bill would extend the statute of limitations for assessing addi- tional tax based on changes reported on an amended return for Article 9, Article 9-A, Article 22, and Article 33 taxpayers as well as New York City personal income tax taxpayers. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under current law, the Department of Taxation and Finance, in most cases, has three years from the original filing date of a tax return to audit and assess additional tax. An amended return does not extend the statute of limitations, regardless of when it is filed. Consequently, if a taxpayer amends their return after the three-year statute of limitations expires, and the amended return is audited and subsequently determined by the Department that additional taxes are due, the Department is unable to assess additional tax. This vulnerability encourages the filing of questionable returns on or near the statutory deadline, including amended returns that claim over- payment of tax and request refunds. Under current law, if it is deter- mined, after the statute of limitations has expired, that a refund should not have been issued, the Department cannot recover the money unless the refund is an "erroneous refund" based on the Department's clerical or computational error. This bill would extend the statute of limitations to allow assessments that are based on changes or corrections in an amended return to be made at any time within three years after the amended return is filed. This would allow the Department the time necessary to audit these amended returns and make any necessary additional assessments. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase revenues by $3 million annually begin- ning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately and apply to amended returns filed on or after the date this bill becomes a law. Part I - Provide for employee wage reporting consistency between the Departments of Taxation and Finance and Labor. PURPOSE: This bill would provide for consistent quarterly reporting requirements for employers and other entities responsible for the collection and remittance of withholding taxes. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Employers and other entities responsible for the collection, remittance, and reporting of withholding taxes are required to file a Form NYS-45 on a quarterly basis. The Form NYS-45 operates as a wage reporting vehicle, and is also used to report both the New York withholding and Unemploy- ment Insurance ("UI") amounts collected. It is jointly utilized by the Department of Taxation and Finance (DTF) and the Department of Labor (DOL). Employers and other entities required to file a Form NYS-45 currently provide employee-level detail, including the employee name, social secu- rity number, and total UI renumeration paid on a quarterly basis, as required by DOL. However, the Tax Law currently requires reporting of employee-level wage and withholding amounts to DTF on an annual basis. This bill would amend the Tax Law to provide for consistent quarterly reporting of wage information to both DTF and DOL. The amendments would also require the inclusion of additional employee-level detail on a quarterly basis, including gross federal wage and New York withholding amounts. This additional employee-level information is currently captured and reported to both Departments on an aggregate basis, and the amendments would require only the inclusion of the information already in an employer's possession. The revisions would also provide for the imposition of penalties if the employer fails to complete an accurate withholding reconciliation on a quarterly basis, rather than an annual basis. This bill would provide DTF with the documentation necessary to more readily identify issues on employer filings, correct such filings, and improve the personal income tax refund process. The amendments would also enhance the Department's ability to protect against potential revenue losses and assist in improving the timely issuance of personal income tax refunds. Finally, the amendments would assist in identifying potentially fraudulent filings, including false employer reports and fraudulent personal income tax returns, whereby individuals request personal income tax refunds they are not entitled to. This bill would not add to the record-keeping requirements of an employ- er, nor would it require the creation of additional or new records. The additional information required under this bill is already maintained by New York State employers both large and small, therefore the require- ments would not be burdensome and the impact to any size employer should not be significant. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would provide annual minimal revenue increases begin- ning in FY 2020. EFFECTIVE DATE: This bill would take effect immediately and be applicable for calendar quarters beginning on or after January 1, 2019. Part J - Simplify the sale for resale exemption for prepared food. PURPOSE: This bill would amend the Tax Law to grant a resale exclusion to restau- rants, cafeterias, caterers and others when purchasing prepared food for resale. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Sales tax is intended to be collected only once from a retail customer. When businesses purchase goods and services for resale, those purchases are generally exempt from sales tax with the submission of a properly completed resale certificate to the vendor. However, Tax Law § 1105(d) imposes sales tax on any purchase of sand- wiches or other restaurant-type food when sold in establishments such as restaurants, cafeterias, or taverns, or by caterers. As it does not contain a resale exclusion, sales tax still must be paid by a vendor on any purchase of prepared food, and then it must be collected by a vendor from the customer at the time the prepared food is resold. This bill would instead allow vendors to purchase food exempt from sales tax when they provide a properly completed resale certificate at the time of purchase. This change would promote tax administration efficien- cies and conform the Tax Law to the best practices of other states. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on June 1, 2018 and would apply to sales made on and after that date. Part K - Allow Warrantless Tax Debt to Be Assessed Against Unclaimed Funds. PURPOSE: This bill would aid in the collection of taxes owed to New York State by authorizing the Commissioner of Taxation and Finance to share informa- tion with the Comptroller to collect unclaimed funds for taxpayers that have unwarranted fixed and final debts. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would aid in the collection of taxes owed to New York State. The bill would authorize the Commissioner to share information with the Comptroller to collect unclaimed funds of taxpayers that have unwar- ranted fixed and final debt, and require the Comptroller to keep such information confidential. The authorization would pertain only to infor- mation regarding taxes owed that are fixed and final and no longer subject to administrative or judicial review. Common law and case law authorize and permit the Comptroller to satisfy debt owed to the State with unclaimed funds of a debtor/taxpayer when 1) a debt is owed; 2) the debtor/taxpayer received notice of the debt; and, 3) the debtor/taxpayer no longer has any right to administrative or judicial review of the debt. However, the secrecy statutes in the Tax Law prevent the Commissioner from sharing debtor/taxpayer information with the Comptroller when warrants have not been filed. This legislation is needed so the Commissioner has authorization to share taxpayer infor- mation with the Comptroller regarding unwarranted fixed and final debts so the debts can be satisfied, in whole or in part, with unclaimed funds. Enacting this legislation might allow some individuals to avoid having a tax warrant filed against them. Satisfying unwarranted fixed and final debts from unclaimed funds could reduce the number of warrants filed and enable some taxpayers to resolve their unwarranted fixed and final debt after it is reduced by unclaimed funds utilization. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $3 million annual- ly beginning FY 2019. EFFECTIVE DATE: This bill would take effect immediately. Part L - Allow the Department of Taxation and Finance Access to Depend- ent and Child Care Data from Other State Agencies. PURPOSE: This bill would amend the Social Services Law to allow the Office of Children and Family Services (OCFS) to share day care subsidy informa- tion with the Department of Tax and Finance (DTF) so that DTF can verify child and dependent care credit claims. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The New York State and New York City child and dependent care credits are refundable income tax credits that provide critical support to parents and other caregivers who are working or looking for work. The credit amounts are determined based upon the claimant's income and the claimant's qualified care expenses. The Office of the State Comptroller has recommended that DTF utilize day care subsidy data maintained by OCFS as it reviews child and dependent care credit claims for auditing purposes, but the Social Services Law does not authorize OCFS to share this information with DTF. This bill would amend the Social Services Law to permit that sharing, which would help DTF to verify refund claims by subsidy recipients and would help avoid the payment of ineligible claims. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $5 million annual- ly beginning in FY 2020. EFFECTIVE DATE: The bill takes effect immediately. Part M - Close the carried interest loophole. PURPOSE: This bill would close the carried interest tax loophole at the State level by taxing the carried interest income of hedge fund and private equity investors as ordinary earned income. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The carried interest tax loophole allows hedge fund managers and private equity investors to have favorable federal tax treatment of certain investment management services compensation by treating that income as capital gains, rather than as ordinary income. Further, when these fees are characterized as capital gains, New York cannot tax that income when earned in New York by a non-resident. This bill would close the loophole, for New York State purposes, by requiring this type of income to be treated as income earned from a trade or business. In addition, the income that is treated as income from a trade or business would be subject to a special 17 percent carried interest fairness fee. The fee would remain in effect until federal law is amended to treat the provision of investment management services for federal tax purposes substantially the same as under this legislation. This bill would take effect only if Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substan- tially the same effect as this bill. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it represents the first step necessary to achieve tax treatment parity between carried interest and other forms of earned income. EFFECTIVE DATE: This bill would take effect when the states of Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substantially the same effect as this act, and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if such enactments are already in effect in the states of Connecticut, New Jersey, Massachusetts and Pennsylvania, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided the Commissioner of Taxation and Finance shall notify the Legislative Bill Drafting Commission upon enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennyslvania in order that such commission may maintain an accurate and timely effective database 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 N - DTF Right to Appeal DTA Tribunal Decisions. PURPOSE: This bill would provide the Department of Taxation and Finance (DTF) with the right to appeal adverse Tax Appeals Tribunal decisions. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The Division of Tax Appeals is an independent body with the ability to cancel assessments, invalidate regulations, and reverse prior decisions of the State tax commission. While a taxpayer may seek judicial review of an adverse decision of the Tax Appeals Tribunal, the Commissioner of DTF is not afforded the same opportunity. As a result, the Commissioner is precluded from appealing adverse decisions that DTF believes are contrary to the interests of the people of this State. Judicial review presents the quickest and most efficient method of reaching finality: in the absence of judicial review, the Department's only recourse is to seek legislation to reverse significant Tribunal decisions with which the Department disagreed as a matter of law. The most recent example of such corrective legislation is Part Q of the FY 2018 Enacted Budget (L. 2017, ch. 59.) Moreover, providing DTF with the right to appeal is consistent with the majority of states with similar independent administrative tax bodies, which provide the tax administra- tor with the right to appeal the administrative body's decision to a court. Finally, there are instances where judicial review is the only avenue for seeking reversal of an adverse opinion. In September 2017, the Tax Appeals Tribunal issued two decisions dealing with the franchise tax on insurance companies that cannot be reversed legislatively. For the first time, the Tribunal issued a decision on international law and voided Department assessments on alien insurers, concluding that the assess- ments violated the non-discrimination clause of the tax treaty between the United States and Germany. The Tax Appeals Tribunal's interpretation and application of Article 24, the non-discrimination clause of the United States-Germany 1989 Tax Treaty affects the State's tax treatment of non-resident alien insurance corporations for purposes of Article 33 and, for years beginning on or after January 1, 2015, nonresident alien general business, banking and financial services corporations under Article 9-A. These decisions may also affect the State's taxation of non-resident alien individuals. Because the Legislature does not have the authority to pass a law that would overrule the Tribunal's decision, the Department is currently powerless to have this significant issue of international law reviewed by a Court. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately and apply to decisions and orders of the Tax Appeals Tribunal issued on or after that date. Part O - Clarify New York Residency Requirements for Tax Purposes. PURPOSE: This bill would codify the Department of Taxation and Finance's long standing policy of counting all days an individual is present in New York to determine statutory residency for personal income tax purposes regardless of whether or not an individual is also a part year domicili- ary. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would eliminate confusion that exists among some tax law prac- tioners following a non-precedential determination by an Administrative Law Judge in the Division of Tax Appeals that interpreted the statutory definition of "resident" in Article 22 of the Tax Law to preclude count- ing the portion of the year an individual is domiciled in the State when determining whether the individual meets the "more than 183 days" requirement to be a "statutory resident." Such an interpretation is contrary to the Department's long standing construction of the statutory resident provision. This misinterpretation can lead to absurd results, including the inability to tax those indi- viduals who, "for all intents and purposes," are residents of the state throughout the taxable year. This bill would explicitly provide that the days a person is present in New York State would count toward the "more than183 days" needed to tax such a person as a statutory resident of the State, regardless of wheth- er or not he or she was actually domiciled in New York at some time during the same year. The bill also would make corresponding changes to the New York City personal income tax. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase personal income tax receipts by $3 million annually beginning in FY 2021 EFFECTIVE DATE: This bill would take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. Part P - Maintain 2017 Empire State Child Tax Credit Benefits. PURPOSE: This bill would maintain the amount of the Empire State Child Tax Credit at the same level that existed in 2017, prior to Federal tax reform. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Federal tax reform legislation, enacted as Public Law 115-97, increased and enhanced the Federal child tax credit. Because the amount of the Empire State Child Tax Credit is a percentage of the Federal tax credit, the increase in the Federal tax credit and the broadening of the income thresholds in the credit calculation will necessarily flow through to the Empire State Child Tax Credit. This will result in more claims being filed and higher State credit claim amounts. This bill would tie the New York credit to the 2017 Federal law before reform, thereby avoiding any unintentional revenue loss to the State while preserving the benefits that New York taxpayers currently enjoy. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would maintain the 2017 Credit benefit levels. Fail- ure to enact this bill would reduce All Funds revenue by $503 million annually beginning FY 2020. EFFECTIVE DATE: This bill would take effect immediately and apply to taxable years beginning on or after January 1, 2018. Part Q - Extend the Hire a Vet Tax Credit for two years. PURPOSE: This bill would extend the Hire a Vet Tax Credit for an additional two years, through tax year 2020. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would extend by two years the tax credits provided for hiring veterans under Tax Law §§ 210-B(29) (Franchise Tax on Corporations), 606(a-2) (Personal Income Tax), and 1511(g-1) (Franchise Tax on Insur- ance Corporations). Currently, the Hire a Vet Tax Credit is available for taxable years beginning on or after January 1, 2015 and before January 1, 2019. The credit is available to qualified taxpayers for the hiring of qualified veterans who commenced employment on or after January 1, 2014 and before January 1, 2018. This bill would extend this credit for an additional two years beginning on or after January 1, 2019, and before January 1, 2021, for employment commenced before January 1, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would decrease All Funds revenue by $37 million in each of FY 2021 and FY 2022. EFFECTIVE DATE: This bill takes effect immediately. Part R - Enhance the New York Youth Jobs Program. PURPOSE: This bill would enhance the New York Youth Jobs Program by providing a 50% increase in the amount of tax credits available for employers who hire and employ at-risk youth on a full-time or part-time basis. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Employers in New York State that hire and employ at-risk youth on a full-time or part-time basis are eligible for the Youth Jobs Program Tax Credit. Eligible employers must submit an application to the Department of Labor. If the Department approves, the employers are classified as "qualified employers" and will receive a certificate indicating the maximum amount of credit for which they are eligible. To ensure the continued success of this program, this bill would provide a 50% increase in the credit amounts available for qualified employers beginning on or after January 1, 2018. Further, beginning on or after January 1, 2019, qualified employers would be required to comply with enhanced reporting requirements. The Department of Labor would also be required to issue a final certificate of tax credit to qualified employ- ers detailing the actual amount of credit allowed based on hiring and retention records. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it will enhance the program and provide transparency on program effectiveness. EFFECTIVE DATE: This bill would take effect immediately, provided however that (i) section one of this bill would apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this bill would apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this bill would take effect on January 1, 2019 and would apply to tax years beginning on or after January 1, 2019. Part S - Defer business related tax-credit claims. PURPOSE: This bill would require taxpayers to defer the use and refund of certain business tax related credits for three years. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Beginning on or before January 1, 2018 and before January 1, 2021, this bill would require taxpayers to defer the use and refund of certain tax credits if such credits exceed $2 million in the aggregate. Under this bill, taxpayers would calculate the amount of each credit they would otherwise use and refund absent this provision, and if the total for the specified credits sums to more than $2 million, taxpayers must reduce each credit proportionally. Taxpayers with $2 million or less in credit would not be impacted by this provision. The credits deferred consist generally of business tax credits, with a few specified credits, including the film production, post production and commercial production credits, the New York Youth Jobs credit and the Hire-a-Vet tax credit, excluded from the deferral requirement. Under this bill, only credit that would otherwise have been used or refunded would be deferred; and credits earned but not used or refunded because of statutory limitations or insufficient liability are subject to their normal rules. Credit amounts deferred would be accumulated in one of two new credits - temporary deferral nonrefundable payout credit and temporary deferral refundable payout credit. Taxpayers could begin to use the nonrefundable payout credit on their 2021 tax returns, and any amounts not used could be carried forward indefinitely. Taxpayers would be able to use and refund 50 percent of the refundable payout credit on their 2021 tax return, use and refund 75 percent of the remaining credit on their 2022 tax return, and the entire remainder on their 2023 tax return. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it will increase state revenue by $82 million in FY 2019, $278 million in FY 2020, $199 million in FY 2021, $164 million in FY 2022 and reduce state revenue by $298 million in FY 2023, $173 million in FY 2024 and $49 million in FY 2025. EFFECTIVE DATE: This bill would take effect immediately. Part T Amend the refund and joint liability provisions of the real estate transfer tax. PURPOSE: This bill would extend the statute of limitations for a taxpayer to file an application for a refund of real estate transfer tax (RETT) if the taxpayer claims that the RETT was paid erroneously. The bill would also establish joint liability between the grantor and grantee for payment of the additional tax imposed under the mansion tax component of the RETT. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would amend Tax Law § 1412(a) to extend the statute of limita- tions from two years to three years for filing an application for a refund by a taxpayer who claims that the RETT was paid erroneously. Currently, Article 31 provides a three-year window for the Department of Taxation and Finance (Department) to assess RETT, but a grantor or gran- tee claiming to have erroneously paid RETT must file an application for a refund within two years from the date the tax was paid. For most other taxes, the time allowed for requesting a refund equals the time permit- ted for the Department to assess additional tax. This amendment would promote fairness to taxpayers. This bill also would amend Tax Law § 1402-a(b) to establish joint liability between the grantor and grantee for payment of the mansion tax. Currently, the liability for the mansion tax is imposed on the grantee; the grantor is liable for the payment of the tax only if the grantee is exempt. Under the basic RETT, the grantor is primarily liable for the tax, but the grantee is jointly and severally liable if the grantor fails to pay. The mansion tax does not include that joint and several liability provision. This bill would make the basic RETT and the mansion tax consistent with one another: under both taxes, the grantor and grantee would be jointly and severally liable for the tax when the party who is liable initially for payment of the tax fails to pay the tax. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because the joint liability provision would increase All Funds receipts by $1 million annually beginning in FY 2019, and the extended refund statute of limitations would decrease All Funds receipts by $1 million annually, beginning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately; provided, however, section two of the bill would apply to conveyances occurring on or after the fifteenth day after the bill becomes a law. Part U Improve cigar tax enforcement. PURPOSE: This bill would amend the definition of "wholesale price" on tobacco products such that it would now be defined as the invoice price for which the product is sold to a distributor. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Tax Law § 471-b (a) imposes a tax on cigars at a rate of 75% of the wholesale price. Tax Law § 470 defines wholesale price, but provides opportunities for distributors to manipulate the wholesale price and lower the tax due. The burden then shifts to the Department to dispute a distributor's claimed wholesale price. Over the last several years, New York State has refunded millions of dollars to tobacco distributors who have claimed a lower wholesale cost. These claims are based on intercompany transactions, which often occur outside of the United States, that are recorded internally at a signif- icantly lower cost than distributors within New York State must pay for the products received. These pricing schemes are nearly impossible to verify, and do not actually reflect the sales pricing in the tobacco marketplace. The refunds of this tax go exclusively to the tobacco industry and are not passed through to the consumer. In addition to the revenue loss from refunds paid, manipulation of the wholesale price between related entities has effectively reduced the tobacco tax rate. This bill would stem that loss and return the effective tax rate on other tobacco products to 75%. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $12 million in FY 2019 and $23 million annually thereafter. EFFECTIVE DATE: This bill would take effect on September 1, 2018. Part V - Discontinue the energy services sales tax exemption. PURPOSE: This bill would repeal the sales tax exemption for gas and electric service associated with gas and electricity purchased from an energy service company (ESCO). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Tax Law §§ 1101(b) and 1105(b) impose sales tax on the transportation, transmission, or delivery of gas or electricity. Tax Law § 1105-C reduces the rate of tax on the transportation, transmission or delivery of gas and electricity to zero where it is sold separately from the commodity. This provision was enacted in the late 1990s to provide an incentive for customers to purchase gas and electricity from third-party energy service companies, often referred to as ESCOs. As a result, a business purchasing its electricity from a local utility company will pay sales tax on their total electric or gas bill, while another busi- ness purchasing gas or electricity from an ESCO will pay sales tax only on the gas or electricity, and not on the transportation, transmission or delivery. Today, this exemption is no longer needed. Competition among ESCOs is well developed as New York utilities offer customers the option of *chasing directly from the company as well as multiple ESCO gas and electricity suppliers. This bill would repeal Tax Law § 1105-C and elim- inate unequal treatment among utility customers. As a result, sales tax would apply to charges for transporting, transmitting, or delivering taxable gas or electricity, whether the commodity is purchased from an ESCO or a utility company. The bill would also clarify that transporta- tion, transmission and delivery charges are taxable even if sold sepa- rately from gas or electricity. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $96 million in FY 2019 and $128 million annually thereafter. EFFECTIVE DATE: This bill would take effect immediately and would apply to sales made and services rendered on and after June 1, 2018, whether or not under a prior contract. Part W - Convert the veterinary sales tax credit to an exemption. PURPOSE: This bill would convert the existing sales tax credit or refund for certain drugs or medicine used by veterinarians or farmers for livestock or poultry used in farm production to an upfront exemption. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Drugs and medicine purchased by a veterinarian for treating livestock and poultry used in farm production are currently taxable at the time of purchase. Veterinarians then apply for a credit/refund of the sales tax paid on qualifying purchases of certain drugs and medicine. This bill would repeal the existing refund/credit and create an exemption for drugs and medicine purchased or used by veterinarians for such purposes. The bill would also allow farmers to purchase such drugs exempt from sales tax for livestock and poultry used in farm production. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on June 1, 2018, and apply to sales made and uses on or after that date. Part X- Provide responsible person sales tax relief for minority LLC owners. PURPOSE: This bill would provide relief from responsible persons liability to certain minority members of limited partnerships or limited liability corporations (LLCs). This bill would codify a Department of Taxation and Finance (DTF) policy described in TSB-M-11(17)S. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The Tax Law currently imposes personal responsibility for payment of sales and use taxes on certain owners, officers, directors, employees, managers, partners, or members (responsible persons) of businesses that have outstanding sales tax liabilities. A responsible person is jointly and severally liable for the tax owed, along with the business entity or any of the business's other responsible persons. However, the Tax Law also imposes a strict liability on all members of LLCs and limited part- ners of limited partnerships. Therefore, a member of an LLC or a limit- ed partner of a limited partnership may be held personally liable for the entire tax liability of the limited partnership or LLC, even if the person has no involvement with the day-to-day operations of the business or any duty to act for the business in the collection and payment of sales tax. This per se liability can result in harsh consequences for members that have no direct involvement with the business's operations. This bill would provide relief from this per se personal liability for certain limited partners and members that meet the eligibility require- ments specified below. Under this bill, limited partners of a limited partnership and members of an LLC would be eligible for relief if they demonstrate that: (i) they were not under a duty to act for the limited partnership or LLC in complying with the requirements of the sales tax; and (ii) their owner- ship interest and the percentage of their distributive share of the profits and losses of the limited partnership or LLC are each less than 50%. A limited partner or member must submit an application for relief to the Commissioner. If approved, a limited partner or member will be liable only for their pro-rata share of the original liability of the business, based on the greater of the limited partner's or member's ownership percentage or their distributive share of the business' profits and losses. Such amount would include prorated interest on the business' original liability up to the date of payment of the limited partner or member, but not penalty. The Commissioner would also be empowered to deny the application of any limited partner or member who had acted for the limited partnership or limited liability company with regard to sales tax compliance, who has been convicted of a tax crime or who has a past-due tax liability. Finally, the bill also makes a technical conforming amendment to the definition of "responsible person" in Tax Law § 1131(1). BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would codify existing DTF practice. EFFECTIVE DATE: This bill would take effect immediately. Part Y - Increase the vending machine sales tax exemption. PURPOSE: This bill would amend the exemption from sales and use taxes for certain food and drink purchased from a vending machine. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Currently, purchases of certain food and drink costing $1.50 or less from any vending machine are exempt from sales and use tax. This bill would maintain this exemption for food and drink purchases from vending machines that accept only coin or currency. It would also exempt food and drink purchases of $2.00 or less from vending machines that are capable of accepting payment in a form other than coin or currency ("cashless" purchases), regardless of whether those vending machines also accepts coin or currency. Additionally, this bill corrects an anomaly so that bottled water sold from a vending machine is also covered by this exemption. This bill would not affect the tax on food and drink sold by a restaurant, tavern, or similar establishment under Tax Law § 1105(d). The exemption for food and drink purchased from any type of vending machine would expire on May 31, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase State sales tax receipts by $2 million in FY 2021 and $3 million annually thereafter. Local sales tax receipts would be increased by a commensurate amount. EFFECTIVE DATE: This bill would take effect June 1, 2018, and apply to sales made and uses occurring on and after that date. Part Z - Amend the local sales tax statute for technical changes. PURPOSE: This bill would make technical corrections to Part A of Chapter 61 of the Laws of 2017 related to the additional rates of sales and use tax for Genesee, Monroe, Onondaga and Orange counties. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The authorization for the additional rates of sales and use taxes for counties that currently impose them was extended until November 30, 2020 by Chapter 61 of the Laws of 2017. The revenue distribution provisions for those additional rates were also extended until November 30, 2020, but the revenue distribution provisions for Genesee, Monroe, Onondaga, and Orange Counties were inadvertently extended until November 30, 2019. This bill would extend the revenue distribution provisions for those four counties until November 30, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it makes the revenue distribution provisions related to additional rates of sales and use taxes consistent for all counties. EFFECTIVE DATE: This bill would take effect on the same date as Chapter 61 of the Laws of 2017; provided however, section 1 of this act would be deemed to be in full force and effect on the same day as subpart R of Part A of Chap- ter 61 of the Laws of 2017; section 2 of this act would be deemed to be in full force and effect on the same day as subpart Z of Part A of Chap- ter 61 of the Laws of 2017; section 3 of this act would be deemed to be in full force and effect on the same day as subpart EE of Part A of Chapter 61 of the Laws of 2017; and section 4 of this act would be deemed to be in full force and effect on the same day as subpart GG of Part A of Chapter 61 of the Laws of 2017. Part AA - Impose an Internet fairness conformity tax. PURPOSE: This bill would amend the Tax Law to impose an Internet fairness conformity tax to collect sales and use tax on taxable sales of tangible personal property that they facilitate. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would impose an internet fairness conformity tax by requiring marketplace providers to collect sales tax on taxable sales of tangible personal property by third-party vendors, facilitated by a marketplace that has facilitated over $100 million in sales in each year since 2016. The bill would not expand the rules concerning sales tax nexus. The bill would also require sellers and marketplaces that are not collecting New York sales taxes to file information returns regarding sales of tangible personal property that were delivered in New York and to provide notices to purchasers that tax may be due on those purchases. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $80 million in FY 2019 and $159 million annually thereafter. EFFECTIVE DATE: This bill would take effect September 1, 2018 and would apply to sales made or uses occurring after that date. Part BB - Impose a health tax on vapor products. PURPOSE: This bill would impose a health tax on vapor products for use with elec- tronic cigarettes and similar devices. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Currently, vapor products are not subject to the tax that is imposed on tobacco products pursuant to Article 20 of the Tax Law. This bill would expand Article 20 to impose a tax, at the rate of 10 cents per fluid milliliter, on the sale (or use, if not previously taxed) on vapor products, defined as the liquid or gel commonly used in e-cigarettes and similar devices, regardless of whether or not the device contains nico- tine. To facilitate administration and collection of the tax, whole- salers and distributors would be required to list the amount of vapor products sold, in milliliters, on any invoices issued to their custom- ers. This bill would also add registration and record keeping requirements, and impose civil and criminal penalties for unlawful possession of a vapor product equivalent to those in existing law for other tobacco products. Enactment of this bill would equalize the tax treatment of tobacco products and the equivalent products used in e-cigarettes. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $3 million in 2019 and $5 million annually thereafter. EFFECTIVE DATE: This bill would take effect on the 180th day after it becomes a law and apply to vapor products that first become subject to taxation under Article 20 of the Tax Law on or after that date. Part CC - Establish an opioid epidemic surcharge. PURPOSE: This bill would establish an opioid epidemic surcharge, thereby imposing a surcharge on the first sale of all opioids in the State to fund an opioid prevention, treatment and recovery account. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The use of opioids throughout the State has drastically risen in recent years. As a result, opioid addiction and overdosing has risen to epidem- ic levels. This bill would enact a surcharge on opioid sales to disin- centivize the use of opioids by placing the share of societal costs from opioid use on the manufacturers, producers and distributors who finan- cially gain from the use of these drugs. The bill would establish an opioid epidemic surcharge, and thereby impose a surcharge in the amount of two cents per morphine milligram equivalent sold, on the first sale of any opioid in the State. Sales made directly to chemical abuse or dependence facilities, as defined in Article 32 of the Mental Hygiene Law, would be exempt from this surcharge. The responsibility to pay this surcharge would be on the establishment that makes such first sale. The first receipts from the surcharge would be due by January 20, 2019, and would cover the period from July 1, 2018 through December 31, 2018. Receipts would be collected monthly thereafter. This bill would also establish an opioid prevention, treatment and recovery account in the custody of the state comptroller. Revenue gener- ated from the surcharge imposed by this bill and revenue from litigation or enforcement actions initiated against opioid pharmaceutical manufac- turers, distributors and wholesalers would be directed to this account for the purpose of providing support for the provision of opioid treat- ment, recovery and prevention and education services. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $127 million in FY 2019, $171 million in FY 2020, $154 million in FY 2021, $138 million in FY 2022, and $125 million in FY 2023. EFFECTIVE DATE: This bill would take effect on July 1, 2018. Part DD - Impose a healthcare insurance windfall profit fee. PURPOSE: This bill would impose a healthcare insurance windfall profit fee in the amount of 14% on the net under writing gain from the sale of health insurance in the State. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would impose a healthcare insurance windfall profit fee in the amount of 14% on the net underwriting gain from the sale of health insurance on risks in New York. The federal government has given a 14 percent tax cut to corporations to be paid for by drastic cuts in funding for important public programs that save lives. Specifically, while the federal corporate tax rate applicable to for-profit health insurers is being reduced from 35% to 21%, the federal funds provided to New York State to finance public health initiatives are being drastically reduced with additional cuts threatened for future years. This bill would help close the State budget gap due to the reduction in federal funding without imposing an unexpected burden on the insurers whose health insurance rates for the 2018 calendar year were determined before the Federal corporate tax rate was reduced in December 2017. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $140 million annu- ally beginning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately and apply to all tax periods beginning after December 31, 2017. Part EE - Amend racing operation provisions. PURPOSE: This bill would amend the amount of reserves kept by the New York Racing Association (NYRA), allow nighttime racing (under certain circumstances) and create an advisory committee on equine drug testing and research. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Section 1 of the bill would amend section 208 of the Racing, Pari-Mutuel Wagering and Breeding Law relating to calculating allowable reserves by increasing the number of days of operating expenses from forty-five to ninety days. Section 2 of the bill would amend section 203 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow, under certain limited circumstances, NYRA to conduct racing after sunset. Section 3 of the bill would create an advisory committee to make recom- mendations on the structure, operations and funding of equine drug test- ing and research. Recommendations would be submitted to the Governor and the Legislature by December 1, 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would add flexibility to current racing operations. EFFECTIVE DATE: This bill would take effect immediately. Part FF - Allow breeding funds to be used for equine aftercare. PURPOSE: This bill would allow flexibility so monies from the New York State Thoroughbred Breeding and Development Fund and the Agriculture and New York State Horse Breeding Development Fund may be used for aftercare for retired horses. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The State has shown a strong commitment to the issue of responsive aftercare for retired horses. As part of this effort, this bill would add needed flexibility to the existing allocation of funds so monies could be used for retired standardbred and thoroughbred horse aftercare. Section 1 would amend Section 254 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow monies from the New York State Thoroughbred Breeding and Development Fund to be used for aftercare for retired hors- es. Section 2 would amend Section 332 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow monies from the Agriculture and New York State Horse Breeding Development Fund to be used for aftercare for retired horses. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would add flexibility to the allocation of monies for retired horse aftercare. There is no impact on State revenues. EFFECTIVE DATE: This bill would take effect immediately. Part GG - Extend certain tax rates and certain simulcasting provisions for one year. PURPOSE: This bill would extend for one additional year various provisions of the Racing, PariMutuel Wagering and Breeding (Racing) Law. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Section 1 would amend Racing, Pari-Mutuel Wagering and Breeding Law (PML) § 1003(a) to extend the June 30, 2018 expiration date for in-home simulcasting. Section 2 would amend PML § 1007(3)(d) to extend the current percentage of total pools allocated to purses that a track located in Westchester County receives from a franchised corporation, which currently is sched- uled to expire on June 30, 2018. Section 3 would amend the opening paragraph of PML § 1014, to continue the provisions allowing simulcasting of out-of-state thoroughbred races on any day the Saratoga thoroughbred track is operating, which currently are scheduled to expire on June 30, 2018. Section 4 would amend PML § 1015(1) to extend the provisions governing the simulcasting of races conducted at out-of-state harness tracks, which currently are scheduled to expire on June 30, 2018. Section 5 would amend the opening paragraph of PML § 1016(1) to continue the provisions governing the simulcasting of out-of-state thoroughbred races on any day the Saratoga thoroughbred track is closed, which currently are scheduled to expire on June 30, 2018. Section 6 would amend the opening paragraph of PML § 1018 to extend the current distribution of revenue from out-of-state simulcasting during the Saratoga meet, which expired on September 8, 2017. Section 7 would amend § 32 of chapter 281 of the Laws of 1994 to extend the current amount of off-track betting wagers on New York Racing Asso- ciation, Inc. (NYRA) pools dedicated to purse enhancement, which currently are scheduled to expire on June 30, 2018. Section 8 would amend § 54 of chapter 346 of the Laws of 1990 to contin- ue binding arbitration for disagreements. These provisions currently are scheduled to expire on June 30, 2018. Section 9 would amend PML § 238(1)(a) to continue the current distrib- ution of revenue from on-track wagering on NYRA races, which currently is scheduled to expire on December 31, 2018. Extending these provisions would maintain the pari-mutuel betting and simulcasting structure that is currently in place in New York State. The provisions extended by sections one through six of this bill were first enacted in 1994 and section seven was enacted in 1990. These provisions were extended numerous times since their original enactment, most recently in FY 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it maintains the current pari-mutuel betting structure in New York State. EFFECTIVE DATE: This bill would take effect immediately. Part HH - Eliminate the Video Lottery Gaming (VLG) hold harmless trans- fer provision. PURPOSE: This bill would eliminate the VLG hold harmless transfer provision. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would amend State Finance Law § 97-nnnn to strike the hold harmless language. The intent of the hold harmless language is to provide a transparent measure of the impact of commercial casinos on VLG revenue. Currently, a monthly transfer from the casino education account to the VLG educa- tion account is required if monthly VLG revenue falls below revenue from the corresponding month in the "base year" of October 2015 to September 2016. Annual revenue during the base year was $958.2 million. As the change in VLG revenue is based on factors in addition to commercial casinos (including the opening of a new VLT facility, the change in the number of VLT machines at a facility and the number of reported weeks in a month), the transfer fails to achieve its purpose. Additionally, both VLG and casino revenue are ultimately directed to education. For these reasons, this bill would eliminate this unnecessary and complicated transfer. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would amend the current distribution of VLG and casino education revenues. EFFECTIVE DATE: This bill would take effect April 1, 2018. Part LL - Simplify Video Lottery Gaming (VLG) rate and additional commission provisions. PURPOSE: This bill would simplify the current Video Lottery Gaming (VLG) distrib- ution structure and amend the additional commission provisions to be aligned with the intent of the law. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would repeal and replace subdivision (ii) in § 97-nnnn of the Tax Law. Subsections (A) through (D) would simplify the VLG rate struc- ture; (E) would amend the current additional commission structure; (F) would simplify the capital awards distribution; and (G) would include the free play allowance language. Currently, VLG revenues are distributed for gaming administration, oper- ator commissions, racing support payments, marketing allowances, and capital awards. The remaining amount is directed to education. The distribution formulas change based on certain net machine income (NMI) levels (which vary by facility). Under this bill, the Video Lottery Terminal (VLT) rates would no longer be based on NMI levels, but instead on four categories: VLTs impacted by gaming facilities, those impacted by Native American casinos, those facilities or machines run by OTBs and the larger VLTs. Under current law, there is a separate distribution for marketing allow- ances and capital award monies. Marketing allowance is set at either eight or ten percent of NMI. Most facilities receive four percent of NMI (capped at $2.5 million) for capital awards. Under this bill, the marketing allowance and capital awards would now be included as part of the operator's commission. The amount spent on marketing would shift from a Gaming Commission directive to operator discretion. For capital awards, the Commission would simply approve projects and the reimburse- ment process would be eliminated. Up to $2 million could be used on constructing a turf course at the Finger Lakes racetrack. Three VLG facilities (Finger Lakes, Saratoga and Monticello) are eligi- ble to receive additional commission to be "held harmless" from the impact of a nearby competing casino. Under current law, however, the Finger Lakes and Saratoga facilities will receive an amount in excess of being held harmless. The proposed language would adhere to the intention of the law and keep these facilities held harmless from the casino impact beginning with the State Fiscal Year ending on March 31, 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase State VLG revenue by $22 million in FY 2019 and $20 million annually thereafter. EFFECTIVE DATE: This bill would take effect April 1, 2018. The provisions of this act shall take effect immediately, provided, however, that the applicable effective date of each part of this act shall be as specifically set forth in the last section of such part.
2017-S7509 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 7509 A. 9509 S E N A T E - A S S E M B L Y January 18, 2018 ___________ 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, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufac- tured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax law, in relation to taxable state land (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effective- ness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-01-8 S. 7509 2 A. 9509 restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commis- sioner of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the adminis- trative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mu- tuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); 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 S. 7509 3 A. 9509 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 breeding law and other laws relating to simulcasting and 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 provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II) 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 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through II. 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. 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 SEVENTEEN-TWO THOUSAND EIGHTEEN 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 EIGHTEEN-TWO THOUSAND NINETEEN 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. § 2. This act shall take effect immediately. S. 7509 4 A. 9509 PART B Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 3 of part E of chapter 83 of the laws of 2002, is amended to read as follows: (ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distrib- utions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retire- ment annuity; provided that if no such return was filed for the applica- ble income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. PROVIDED FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART- MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART- MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by chapter 451 of the laws of 2015, is amended to read as follows: (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] NINETEEN, the application form shall indicate that [the] ALL owners of the proper- ty and any owners' spouses residing on the premises [may authorize the assessor to] MUST have their income eligibility verified annually [ther- eafter] 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 identification numbers in order to facilitate matching with records of the department. [Thereafter, their] THE income eligibility OF SUCH PERSONS shall be verified annually 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 requirements]. All APPLI- CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be required to participate in this program, WHICH SHALL BE KNOWN AS THE STAR INCOME VERIFICATION PROGRAM. (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE S. 7509 5 A. 9509 ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE BASIC EXEMPTION HAS ALSO BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, 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 PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION- ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL TO EITHER REPLACE THE ENHANCED EXEMPTION WITH A BASIC EXEMPTION, OR TO REMOVE OR DENY THE ENHANCED EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE. THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION OR APPROVAL. (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL 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 A TAXPAYER IS DISSATISFIED WITH THE DEPART- MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI- NATION. IF DISSATISFIED WITH THE STATE BOARD'S DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY- EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED. § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the real property tax law are REPEALED. § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- ty tax law, as amended by section 5 of part E of chapter 83 of the laws of 2002 and subparagraph (i) 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: (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption may request that a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner and shall be submitted to the assessor of the assessing unit in which the eligible taxpayer resides no later than sixty days before the first taxable status date to which it is to apply. Such form shall provide a section whereby the designated third party shall consent to such desig- nation. Such request shall be effective upon receipt by the assessor. The assessor shall maintain a list of all eligible property owners who have requested notices pursuant to this paragraph AND SHALL FURNISH A COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST. S. 7509 6 A. 9509 (ii) [In the case of a senior citizen who has not elected to partic- ipate in the STAR income verification program, a notice shall be sent to the designated third party at least thirty days prior to each ensuing taxable status date; provided that no such notice need be sent in the first year if the request was not received by the assessor at least sixty days before the applicable taxable status date. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their renewal application for the enhanced STAR exemption must be filed with the assessor no later than (enter date). You are encouraged to remind him, her, or them of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are greatly appreciated." (iii) In the case of a senior citizen who has elected to participate in the STAR income verification program, a] A notice shall be sent to the designated third party whenever the assessor OR DEPARTMENT sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE- MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE ASSESSOR. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are aware of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are great- ly appreciated." [(iv)] (III) The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced STAR exemption. § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law is REPEALED. § 7. Subdivision 9-b of section 425 of the real property tax law, as added by section 8 of part E of chapter 83 of the laws of 2002 and para- graph (b) as amended by chapter 742 of the laws of 2005 and 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: 9-b. Duration of exemption; enhanced exemption. (a) [In the case of persons who have elected to participate in the STAR income verification program, the] THE enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) [In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the commissioner. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the] THE assessor [may review their] SHALL REVIEW THE continued compliance OF S. 7509 7 A. 9509 RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable ownership and residency requirements to the same extent as if they were receiving a basic STAR exemption. [(d) Notwithstanding the foregoing provisions of this subdivision, the enhanced exemption shall be continued without a renewal application as long as the property continues to be eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this title.] § 8. Section 425 of the real property tax law is amended by adding a new subdivision 14-a to read as follows: 14-A. IMPLEMENTATION OF CERTAIN ELIGIBILITY DETERMINATIONS. WHEN A TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS SECTION FOR A SCHOOL YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH (C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI- NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE. (A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI- SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER WITH INTEREST, 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, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 9. Section 171-o of the tax law is REPEALED. § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes 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 S. 7509 8 A. 9509 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. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART- MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT THAT A RETURN WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL- ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further, that if the qualified taxpayer was an owner of the property during the taxable year but did not own it on December thirty-first of the taxable year, then the determination as to whether the income of an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first day of the month during which the qualified taxpayer ceased to be an owner of the proper- ty, rather than as of December thirty-first of the taxable year. § 11. No application for an enhanced exemption on a final assessment roll to be completed in 2019 may be approved if the applicants have not enrolled in the STAR income verification program established by subpara- graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law as amended by section two of this act, regardless of when the application was filed. The assessor shall notify such appli- cants that participation in that program has become mandatory for all applicants and that their applications cannot be approved unless they enroll therein. The commissioner of taxation and finance shall provide a form for assessors to use, at their option, when making this notifica- tion. § 12. This act shall take effect immediately. PART C Section 1. Subdivision 1-e of section 333 of the real property law is amended by adding two new paragraphs ix and x to read as follows: IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A SHARE OR SHARES IN A COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES COME WITH A RIGHT TO OCCUPY A UNIT OR APARTMENT LOCATED IN PROPERTY OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS- FEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXA- TION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF SHARES BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE S. 7509 9 A. 9509 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN REAL PROPERTY, A TRANSFER REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC- IFY THE PERCENTAGE OF THE OWNERSHIP INTEREST BEING TRANSFERRED OR ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN- SACTION THAT IS EXEMPT FROM THE REAL ESTATE TRANSFER TAX AS A MERE CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI- SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU- ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR- RENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST" AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN REAL PROPERTY SUBJECT TO REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS, BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS, AND SHALL NOT INCLUDE DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS. § 2. This act shall take effect January 1, 2019 and shall apply to transfers and acquisitions occurring on and after such date. PART D Section 1. Subdivision v of section 233 of the real property law, as amended by chapter 566 of the laws of 1996, is amended to read as follows: v. 1. On and after April first, nineteen hundred eighty-nine, the commissioner of housing and community renewal shall have the power and duty to enforce and ensure compliance with the provisions of this section. However, the commissioner shall not have the power or duty to enforce manufactured home park rules and regulations established under subdivision f of this section. 2. On or before January first, nineteen hundred eighty-nine, each manufactured home park owner or operator shall file a registration statement with the commissioner and shall thereafter file an annual registration statement on or before January first of each succeeding year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH MANU- FACTURED HOME PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. The commissioner, by regulation, shall provide that such registration statement shall include [only] the names of all persons owning an interest in the park, the names of all tenants S. 7509 10 A. 9509 of the park, all services provided by the park owner to the tenants, and SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION AFTER CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE; PROVIDED THAT IN THE CASE OF A REGISTRATION STATEMENT FOR THE FIRST CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of all current manufactured home park rules and regulations. THE COMMIS- SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION AND FINANCE WITH A COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER THE RECEIPT THEREOF. 3. Whenever there shall be a violation of this section, an application may be made by the commissioner of housing and community renewal in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation and with respect to this subdivision, directing the filing of a registration statement. In any such proceeding, the court may make allowances to the commissioner of housing and community renewal of a sum not exceeding two thousand dollars against each defendant, and direct restitution. When- ever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand five hundred dollars for each violation. Such penalty shall be deposited in the manufactured home cooperative fund, created pursuant to section fifty-nine-h of the private housing finance law. In connection with any such proposed application, the commissioner of housing and community renewal is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. The provisions of this subdivision shall not impair the rights granted under subdivision u of this section. § 2. This act shall take effect immediately. PART E Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX S. 7509 11 A. 9509 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall S. 7509 12 A. 9509 be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 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: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE S. 7509 13 A. 9509 RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Section 1. Subdivision 1 of section 544 of the real property tax law, as amended by chapter 18 of the laws of 2008, is amended and a new subdivision 3 is added to read as follows: 1. The comptroller shall pay taxes levied on lands of the state in each county pursuant to the foregoing sections of this title, out of moneys appropriated by the legislature therefor, to the county treasurer for appropriate distribution upon submission of a statement of such taxes by him or her in such form and executed in such manner by the county treasurer as may be required by the comptroller. Provided, howev- er, that in the case of lands which are taxable pursuant to subdivision (j) of section five hundred thirty-two of this title, the comptroller shall pay such taxes. Such payment shall be requested, processed and paid separately from all other taxes that are payable to the county treasurer pursuant to this section. PROVIDED FURTHER, THAT ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON THAT PARCEL AS FOLLOWS: (A) IN THE CASE OF A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR S. 7509 14 A. 9509 FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU- LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS. THE TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION. (D) THE FOLLOWING PROVISIONS SHALL APPLY TO STATE LANDS THAT ARE SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION: (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY OF THIS TITLE. (II) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE REPORTED TO THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE. (III) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS. (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS- MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE TAXABLE PURSUANT TO THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF STATE AID PAYABLE PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND. (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING STATE EQUALIZA- TION RATES AND TAX RATES. (VI) WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION, ANY ACTUAL VALUATION COMPUTED FOR SUCH SCHOOL DISTRICT PURSUANT TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SHALL INCLUDE THE ACTUAL VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE SUCH ACTUAL VALUATION EQUIVALENT BY DIVIDING THE PAYMENT MADE, AS REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR, IF APPLICABLE, THE SPECIAL APPORTIONMENT RATE DETERMINED PURSUANT TO SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER AND DIVIDING SUCH RESULT BY THE FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND THE COMMISSIONER OF EDUCATION, AND SHALL BE USED BY THE COMMISSIONER OF S. 7509 15 A. 9509 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP- ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE CORRE- SPONDING ASSESSMENT ROLL. EACH SCHOOL DISTRICT RECEIVING PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION, WITH A COPY TO THE COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW. (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE. § 2. This act shall take effect immediately. PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. S. 7509 16 A. 9509 (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOURTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOUR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOURTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI- SION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. S. 7509 17 A. 9509 § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, S. 7509 18 A. 9509 wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED S. 7509 19 A. 9509 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Section 1. Subdivision 2 of section 136 of the social services law, as amended by section 24 of part B of chapter 436 of the laws of 1997, is amended to read as follows: 2. All communications and information relating to a person receiving public assistance or care obtained by any social services official, service officer, or employee in the course of his or her work shall be considered confidential and, except as otherwise provided in this section, shall be disclosed only to the commissioner, or his or her authorized representative, the commissioner of labor, or his or her authorized representative, the commissioner of health, or his or her authorized representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR HIS OR HER AUTHORIZED REPRESENTATIVE (OTHER THAN THE DISCLOSURE OF INFORMATION THAT HAS BEEN PROHIBITED BY FEDERAL LAW), the welfare inspector general, or his or her authorized representative, the county board of supervisors, city council, town board or other board or body authorized and required to appropriate funds for public assistance and care in and for such county, city or town or its authorized represen- tative or, by authority of the county, city or town social services official, to a person or agency considered entitled to such information. Nothing herein shall preclude a social services official from report- ing to an appropriate agency or official, including law enforcement agencies or officials, known or suspected instances of physical or mental injury, sexual abuse or exploitation, sexual contact with a minor or negligent treatment or maltreatment of a child of which the official becomes aware in the administration of public assistance and care nor shall it preclude communication with the federal immigration and natur- alization service regarding the immigration status of any individual. § 2. This act shall take effect immediately. PART M Section 1. The tax law is amended by adding a new section 44 to read as follows: S. 7509 20 A. 9509 § 44. INVESTMENT MANAGEMENT SERVICES. (A) FOR PURPOSES OF THIS SECTION, THE TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING THE PURCHASE OR SALE OF SECURITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (C) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE THEREOF, REAL ESTATE HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, OR OPTIONS OR DERIVATIVE CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING, OR DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI- VISION. (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS. NOTWITHSTANDING ANY STATE OR FEDERAL LAW TO THE CONTRARY: (1) WHERE A PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND DEDUCTION, INCLUDING ANY GUARANTEED PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE WOULD HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS A BUSINESS RECEIPT FOR SERVICES AND FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE BEEN DETERMINED IF THE PARTNER PERFORMED NO INVESTMENT MANAGEMENT SERVICES SHALL NOT BE LESS THAN ZERO. (2) WHERE A SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A SHAREHOLDER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE- HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT IS IN EXCESS OF THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE- HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE PRO RATA SHARE THAT WOULD HAVE BEEN DETERMINED IF THE SHAREHOLDER PERFORMED NO SERVICES SHALL NOT BE LESS THAN ZERO. (3) A PARTNER OR SHAREHOLDER WILL NOT BE DEEMED TO BE PROVIDING INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION IF AT LEAST EIGHTY PERCENT OF THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER- SHIP OR S CORPORATION DURING THE TAXABLE YEAR CONSIST OF REAL ESTATE HELD FOR RENTAL OR INVESTMENT. (C) IN ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY CORPORATION, PARTNER OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT TO AN ADDITIONAL TAX, REFERRED TO AS THE "CARRIED INTEREST FAIRNESS FEE". SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE OF A CORPORATION OR SHAREHOLDER OF AN S CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT APPORTIONED TO THE STATE BY APPLYING THE CORPORATION'S OR S CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED S. 7509 21 A. 9509 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID- ING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES AS DETERMINED UNDER SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN ACCORDANCE WITH ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS- LATIVE BILL DRAFTING COMMISSION THAT FEDERAL LEGISLATION HAS BEEN ENACTED THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION. § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, AND (B) ANY NET CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS A BUSINESS RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER; provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 3. Subsection (b) of section 617 of the tax law, as amended by chap- ter 606 of the laws of 1984, is amended to read as follows: (b) Character of items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY- FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income, gain, loss, or deduction shall have the same character for a partner or shareholder under this article as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner or shareholder as if realized directly from the source from which realized by the partnership or S corporation or incurred in the same manner as incurred by the partner- ship or S corporation. § 4. Subsection (d) of section 631 of the tax law, as amended by chap- ter 28 of the laws of 1987, is amended to read as follows: (d) Purchase and sale for own account.-- A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of his OR HER trade or business OR A PARTNER OR SHAREHOLDER PERFORMING INVESTMENT MANAGEMENT SERVICES AS DESCRIBED IN SECTION FORTY-FOUR OF THIS CHAPTER, shall not be deemed to carry on a business, trade, profession or occupation in this state solely by reason of the purchase and sale of property or the purchase, sale or writing of stock option contracts, or both, for his own account. § 5. The opening paragraph of subsection (b) of section 632 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: S. 7509 22 A. 9509 [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP- TER, IN determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which-- § 6. For taxable years beginning on or after January 1, 2018 and before January 1, 2019, (i) no addition to tax under subsection (c) of section 685 or subsection (c) of section 1085 of the tax law shall be imposed with respect to any underpayment attributable to the amendments made by this act of any estimated taxes that are required to be paid prior to the effective date of this act, provided that the taxpayer timely made those payments; and (ii) the required installment of esti- mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of subsection (c) of section 685 of the tax law, and the exception to addi- tion for underpayment of estimated tax described in paragraph 1 or 2 of subsection (d) of section 1085 of the tax law, in relation to the preceding year's return, shall be calculated as if the amendments made by this act had been in effect for that entire preceding year. § 7. This act shall take effect upon the enactment into law by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania of legislation having substantially the same effect as this act and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if the states of Connecticut, New Jersey, Massachusetts and Pennsylvania have already enacted such legislation, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided further that the commissioner of taxa- tion and finance shall notify the legislative bill drafting commission upon the enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania in order that such 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. PART N Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE S. 7509 23 A. 9509 THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART O Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this state but] maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, WHETHER OR NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as amended by chapter 225 of the laws of 1977, is amended to read as follows: (2) who [is not domiciled in such city but] maintains a permanent place of abode in such city and spends in the aggregate more than one hundred eighty-three days of the taxable year in such city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 11-1705 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this city but] maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 4. This act shall take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. PART P S. 7509 24 A. 9509 Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. 7509 25 A. 9509 § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. 7509 26 A. 9509 week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) 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: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program S. 7509 27 A. 9509 seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYEES THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER S. 7509 28 A. 9509 IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- S. 7509 29 A. 9509 INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE- DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law S. 7509 30 A. 9509 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 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) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to S. 7509 31 A. 9509 the contrary, the commissioner and the commissioner's designees may 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. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law S. 7509 32 A. 9509 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: S. 7509 33 A. 9509 (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may 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 liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Section 1. Section 33 of the tax law, as added by section 1 of part Y of chapter 57 of the laws of 2010, is amended to read as follows: § 33. Temporary deferral of certain tax credits. 1. (a) For taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE, the excess over two million dollars of the total amount of the tax credits speci- fied in subdivision three of this section that in each of those taxable years would otherwise be used to reduce the taxpayer's tax liability to the amount otherwise specified in this chapter or be refunded or credit- ed as an overpayment will be deferred to and used or refunded in taxable years beginning on or after January first, two thousand [thirteen] TWEN- TY-ONE in accordance with the provisions of section thirty-four of this article. Interest shall not be paid on the amounts of credit deferred. (b) To determine the amount of each tax credit allowed for the taxable year to be used, refunded or credited as an overpayment the taxpayer shall multiply the amount of each credit subject to deferral that would have been used, refunded or credited as an overpayment in the absence of this section by a fraction, the numerator of which is two million dollars, and the denominator of which is the total amount of the taxpay- er's credits subject to deferral pursuant to subdivision three of this section that would have been used, refunded or credited as an overpay- ment for the taxable year in the absence of this section. The product is the amount of such credit that is not subject to deferral and thus allowed to be used, refunded or credited as an overpayment for the taxa- ble year. 2. Taxpayers shall calculate and make any estimated tax payments required to be made by taking into account the deferral of credits required by this section. Taxpayers shall calculate any mandatory first installment payments made on or after the effective date of this section as if the deferral of credits required by this section had been in effect for the taxable year upon which that installment is based. In addition, for taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [eleven] S. 7509 34 A. 9509 NINETEEN, (a) no addition to tax under subsection (c) of section six hundred eighty-five of this chapter or subsection (c) of section one thousand eighty-five of this chapter shall be imposed with respect to any underpayment attributable to the deferral required by this section of any estimated taxes that are required to be paid prior to the enact- ment of this section, provided that the taxpayer timely made those payments; and (b) the required installment of estimated tax described in clause (ii) of subparagraph (B) of paragraph three of subsection (c) of section six hundred eighty-five of this chapter, and the exception to addition for underpayment of estimated tax described in paragraph one or two of subsection (d) of section one thousand eighty-five of this chap- ter, in relation to the preceding year's return, shall be calculated as if the deferral required by this section had been in effect for that entire preceding year. 3. (a) This section shall apply to the credits allowed under the following provisions in article nine-a of this chapter and any applica- ble counterpart provisions in articles nine, twenty-two, [thirty-two] and thirty-three of this chapter: Section [210(12)] 210-B(1) investment tax credit Section [210(12-B)] 210-B(3) empire zone investment tax credit Section [210(12-C)] 210-B(4) empire zone employment incentive credit Section [210(12-D)] 210-B(2) employment incentive credit Section [210(12-E)] 210-B(7) QETC employment credit Section [210(12-F)] 210-B(8) QETC capital tax credit [Section 210(12-G) QETC facilities, operations, and training credit] Section [210(17)] 210-B(9) special additional mortgage recording tax credit [Section 210(19) empire zone wage tax credit Section 210(20) empire zone capital tax credit] Section [210(21-a)] 210-B(10) credit for servicing certain mortgages Section [210(23)] 210-B(12) credit for employment of persons with disabilities Section [210(24)] 210-B(30) alternative fuels AND ELECTRIC VEHICLE RECHARGING PROPERTY credit Section [210(25)] 210-B(13) credit for purchase of an automated external defibrillator Section [210(27)] 210-B(5) QEZE credit for real property taxes Section [210(28)] 210-B(6) QEZE tax reduction credit Section [210(30)] 210-B(15) low income housing credit Section [210(31)] 210-B(16) green building credit Section [210(33)] 210-B(17) brownfield redevelopment tax credit Section [210(34)] 210-B(18) remediated brownfield credit for real property taxes for qualified sites Section [210(35)] 210-B(19) environmental remediation insurance credit Section [210(37)] 210-B(21) security training tax credit [Section 210(37) credit for fuel cell electric generating equipment expenditures] Section [210(38)] 210-B(22) conservation easement tax credit [Section 210(38) empire state commercial production credit] Section [210(38)] 210-B(24) biofuel production credit Section [210(39)] 210-B(25) clean heating fuel credit Section [210(40)] 210-B(26) credit for rehabilitation of historic properties Section [210(40)] 210-B(38) credit for companies who provide transpor- tation to individuals with disabilities SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT S. 7509 35 A. 9509 SECTION 210-B(35) ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT CREDIT SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION SERVICES CREDIT SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT (b) This section shall also apply to the credits allowed by the following sections: [Section 186-a(9) power for jobs credit] Section 606(g-1) solar energy system equipment credit Section 606(pp) historic homeownership rehabilitation credit Section 1511(k) credit for certain investments in certified capital companies § 2. Subdivisions 1 and 2 of section 34 of the tax law, as added by section 2 of part Y of chapter 57 of the laws of 2010, are amended to read as follows: 1. The amounts of nonrefundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral nonrefundable payout cred- it. The taxpayer may first claim this credit in the taxable year begin- ning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO. The taxpayer shall be allowed to claim this credit until the accumulated amounts are exhausted. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (a) of subdivision three of this section. 2. The amounts of refundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral refundable payout credit. In the taxable year beginning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO, the taxpayer shall be allowed to claim a credit equal to fifty percent of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fourteen] TWENTY-TWO and before January first, two thousand [fifteen] TWENTY-THREE, the taxpayer shall be allowed to claim a credit equal to seventy-five percent of the balance of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fifteen] TWENTY-THREE and before January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be allowed to claim a credit equal to the remaining balance of the amount accumulated. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (b) of subdivision three of this section. § 3. This act shall take effect immediately. PART T S. 7509 36 A. 9509 Section 1. Subdivision (a) of section 1412 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (a) A grantor or grantee claiming to have erroneously paid the tax imposed by this article or some other person designated by such grantor or grantee may file an application for refund within [two] THREE years from the date of payment. Such application shall be filed with the commissioner [of taxation and finance] on a form which he shall prescribe. § 2. Subdivision (b) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the additional tax imposed by this section shall be paid by the grantee. If the grantee [is exempt from such tax, the grantor shall have the duty to pay the tax] HAS FAILED TO PAY THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN HUNDRED TEN OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to conveyances occurring on or after the fifteenth day after this act shall have become a law. PART U Section 1. Subdivision 6 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 6. "Wholesale price." The [established] INVOICE price for which a manufacturer OR OTHER PERSON sells tobacco products to a distributor, INCLUDING THE FEDERAL EXCISE TAXES PAID BY THE MANUFACTURER OR OTHER PERSON, before the allowance of any discount, trade allowance, rebate or other reduction. [In the absence of such an established price, a manufacturer's invoice price of any tobacco product shall be presumptive evidence of the whole- sale price of such tobacco product, and in its absence the price at which such tobacco products were purchased shall be presumed to be the wholesale price, unless evidence of a lower wholesale price shall be established or any industry standard of markups relating to the purchase price in relation to the wholesale price shall be established.] § 2. This act shall take effect on September 1, 2018 and shall apply to all tobacco products possessed in this state for sale on or after such date. PART V Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of section 1105 of the tax law, as amended by section 9 of part S of chap- ter 85 of the laws of 2002, is amended to read as follows: (A) gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature, INCLUDING THE TRANS- PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF SOLD SEPARATELY; § 2. Section 1105-C of the tax law is REPEALED. S. 7509 37 A. 9509 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (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 what- ever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subparagraph (i) of the opening paragraph of this section; § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York, as amended by chapter 200 of the laws of 2009, is amended to read as follows: (8) [makes inapplicable section eleven hundred five-C of the tax law, and] imposes tax on 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 subdivision (a) of this section. § 5. This act shall take effect immediately; provided however that this act shall apply to sales made and services rendered on and after June 1, 2018 whether or not such sales and services are rendered under a prior contract. PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on S. 7509 38 A. 9509 the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An S. 7509 39 A. 9509 application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: S. 7509 40 A. 9509 (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH S. 7509 41 A. 9509 PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part II of chapter 59 of the laws of 2014, is amended to read as follows: (1) (A) Food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- ic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED AS EXEMPTING FOOD OR DRINK FROM THE TAX IMPOSED UNDER SUBDIVISION (D) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE. [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY, THE food and drink excluded from the exemption provided by [this paragraph under subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A) of this paragraph, AND BOTTLED WATER, shall be exempt under this [paragraph] SUBPARAGRAPH when sold for one dollar and fifty cents or less through any vending machine [activated by the use of] THAT ACCEPTS coin[,] OR currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO DOLLARS OR LESS THROUGH ANY VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT OTHER THAN COIN OR CURRENCY, WHETHER OR NOT IT ALSO ACCEPTS COIN OR CURRENCY. [With the exception of the provision in this paragraph provid- ing for an exemption for certain food or drink sold for one dollar and fifty cents or less through vending machines, nothing herein shall be construed as exempting food or drink from the tax imposed under subdivi- sion (d) of section eleven hundred five of this article.] § 2. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause S. 7509 42 A. 9509 (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and S. 7509 43 A. 9509 distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH, CATALOG, AN INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE SELLER FOR A SALE OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI- TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN. (2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET- PLACE PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF PARAGRAPH ONE OF THIS SUBDIVISION. § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- ter 576 of the laws of 1994, is amended to read as follows: S. 7509 44 A. 9509 (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; [and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH RESPECT TO SALES OF TANGIBLE PERSONAL PROPERTY IT FACILITATES AS DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability compa- ny, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corpo- ration, partnership, limited liability company or individual proprietor- ship in complying with any requirement of this article; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 3. Section 1132 of the tax law is amended by adding a new subdivi- sion (l) to read as follows: (L)(1) A MARKETPLACE PROVIDER WITH RESPECT TO A SALE OF TANGIBLE PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF- ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY SUCH MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER PROVIDING THE MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF- ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH S. 7509 45 A. 9509 CERTIFICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE PERSONAL PROPERTY BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A MARKETPLACE PROVIDER WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM SUCH MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THEMSELVES AND SUCH MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR- TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. S. 7509 46 A. 9509 § 6. Section 1142 of the tax law is amended by adding two new subdivi- sions 15 and 16 to read as follows: 15. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAS BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER- WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. 16. TO ENFORCE THE PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND NON-COLLECTING MARKETPLACE PROVIDERS PROVIDED BY SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED- ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH PROCEEDING SHALL BE ALBANY COUNTY. § 7. The tax law is amended by adding a new section 1135-a to read as follows: § 1135-A. REPORTING REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER: (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER, AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (C) NEW YORK PURCHASER MEANS ANY PERSON WHO PURCHASES TANGIBLE PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE. (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY- TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART, THE PURCHASER'S BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS. (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER: (A) A NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST. THESE RECORDS SHALL INCLUDE, BUT ARE NOT LIMITED TO, EACH NEW YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, AND THE TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF THE NEW YORK PURCHASER. (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL FILE AN ANNUAL INFORMATION RETURN WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF THE NON- COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER- TY THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE COMMIS- S. 7509 47 A. 9509 SIONER MAY PRESCRIBE. SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR, WITH THE FIRST SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN. (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROVIDE AN ANNUAL STATEMENT OF PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE PURCHASER'S TRANSACTIONS IN THE PRIOR CALENDAR YEAR AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION- ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW- ING, THE DATE OF EACH PURCHASE, A GENERAL DESCRIPTION OF EACH ITEM PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA- TION REGARDING WHETHER AND HOW TO REMIT THE SALES OR USE TAX TO THE COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES TO THE COMMISSIONER. SUCH STATEMENT SHALL BE SENT TO EACH NEW YORK PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, UNLESS THE PURCHASER'S LAST KNOWN ADDRESS IS AN E-MAIL ADDRESS, IN WHICH CASE THE STATEMENT IS TO BE SENT BY E-MAIL, THE SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION". (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL ORDER FORMS, AND UPON EACH SALES RECEIPT OR OTHER MEMORANDUM OF THE PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS- ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE THAT NEITHER NEW YORK STATE AND LOCAL SALES NOR USE TAX IS BEING COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER. (3) A NON-COLLECTING SELLER SHALL KEEP RECORDS OF THE INFORMATION DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH TWO OF THIS SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY PER-PURCHASE NOTICES OR ANNUAL STATEMENTS OF PURCHASES REQUIRED. THE NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH PERIODS AND IN SUCH MANNER AS PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS PART, OR AS THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR INSPECTION AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER. (4) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR ANY CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW YORK PURCHASERS ARE LESS THAN FIVE MILLION DOLLARS DURING THE PRIOR CALENDAR YEAR. (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER IN S. 7509 48 A. 9509 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF, THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY: (A) A MARKETPLACE PROVIDER FROM WHOM SUCH NON-COLLECTING SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF. (B) (1) A NON-COLLECTING MARKETPLACE PROVIDER SHALL PERFORM THE REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH NON-COLLECTING SELLER. (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE TO ALL NON-COLLECTING SELLERS FOR WHOM THEY FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN THIS STATE, SUCH NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION: (A) SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND COLLECT THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED TO OBTAIN A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH; (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A LOCATION IN THIS STATE TO THE COMMISSIONER UPON REQUEST; AND (C) THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA- TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY SUCH NON- COLLECTING MARKETPLACE PROVIDER. (C) THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE NOTICE REQUIRED BY THIS SUBDIVISION IF OTHER STATES IMPOSE SIMILAR REQUIREMENTS, IN ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS. § 8. Subdivision (i) of section 1145 of the tax law, as added by section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (i)(1) Every person required to file an information return by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section eleven hundred thirty-six of this part, OR AN ANNUAL STATEMENT OR NOTICE REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who [(A)] fails to provide any of the information required [by paragraph one or two of subdivision (i) of section eleven hundred thirty-six of this part for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART, or who fails to include any such information that is true and correct [(whether or not such a report is filed) for a vendor, operator, or recipient, or (B) fails to provide the information required by para- graph four of subdivision (i) of section eleven hundred thirty-six of this part to a vendor, operator, or recipient specified in paragraph four of subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided in this article or otherwise imposed by law, be subject to a penalty of five hundred S. 7509 49 A. 9509 dollars for ten or fewer failures, and up to fifty dollars for each additional failure. (2) Every person failing to file an information return required by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev- en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR NOTICE BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A of this part within the time required [by subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided for in this article or otherwise imposed by law, be subject to a penalty in an amount not to exceed two thousand dollars for each such failure, provided that the minimum penalty under this paragraph is five hundred dollars. (3) In no event will the penalty imposed by paragraph one of this subdivision, or the aggregate of the penalties imposed under paragraphs one and two of this subdivision, exceed ten thousand dollars for any annual filing period [as described by paragraph three of subdivision (i) of section eleven hundred thirty-six of this part]. (4) If the commissioner determines that any of the failures that are subject to penalty under this subdivision was entirely due to reasonable cause and not due to willful neglect, the commissioner must remit the penalty imposed under this subdivision. These penalties will be deter- mined, assessed, collected, paid, disposed of and enforced in the same manner as taxes imposed by this article and all the provisions of this article relating thereto will be deemed also to refer to these penal- ties. § 9. 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 provision had not been included herein. § 10. This act shall take effect immediately and shall apply to sales made on or after September 1, 2018; provided, however, that the require- ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of section 1135-a as added by section two of this act shall apply to sales made on or after January 1, 2019. PART BB Section 1. Subdivision 2 of section 470 of the tax law, as amended by section 15 of part D of chapter 134 of the laws of 2010, is amended to read as follows: 2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS, VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump- tion by smoking, chewing, INHALING VAPORS or as snuff. § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 12. "Distributor." Any person who imports or causes to be imported into this state any tobacco product (in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale, or who manufactures any tobacco product in this state, and any person within or without the state who is authorized by the commissioner of S. 7509 50 A. 9509 taxation and finance to make returns and pay the tax on tobacco products sold, shipped or delivered by him to any person in the state. § 3. Section 470 of the tax law is amended by adding a new subdivision 20 to read as follows: 20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THIRTY-THREE HUNDRED SIXTY-TWO OF THE PUBLIC HEALTH LAW. § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, as amended by section 18 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price, and is intended to be imposed only once upon the sale of any tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS. § 5. Subdivision 1 of section 471-b of the tax law is amended by adding a new paragraph (d) to read as follows: (D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 6. Subdivision (a) of section 471-c of the tax law, as amended by section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) and (ii) as amended by section 20 and paragraph (iii) as added by section 21 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) There is hereby imposed and shall be paid a tax on all tobacco products used in the state by any person, except that no such tax shall be imposed (1) if the tax provided in section four hundred seventy-one-b of this article is paid, or (2) on the use of tobacco products which are exempt from the tax imposed by said section, or (3) on the use of two hundred fifty cigars or less, [or] five pounds or less of tobacco other than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your- own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought into the state on, or in the possession of, any person. (i) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price. (ii) Such tax on snuff shall be at the rate of two dollars per ounce and a proportionate rate on any fractional parts of an ounce, provided that cans or packages of snuff with a net weight of less than one ounce shall be taxed at the equivalent rate of cans or packages weighing one ounce. Such tax shall be computed based on the net weight as listed by the manufacturer. (iii) Such tax on little cigars shall be at the same rate imposed on cigarettes under this article and is intended to be imposed only once upon the sale of any little cigars. (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. S. 7509 51 A. 9509 § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- ter 552 of the laws of 2008, is amended to read as follows: 2. Every person who shall possess or transport more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll- your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that such person is a dealer in tobacco products in this state and subject to the requirements of this article. § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 3. Every dealer or distributor or employee thereof, or other person acting on behalf of a dealer or distributor, who shall possess or trans- port more than fifty cigars [or], more than one pound of tobacco OR MORE THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that the tax imposed by this article on tobacco products has not been paid and is due and owing. § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2013, is amended to read as follows: (i) In addition to any other penalty imposed by this article, the commissioner may (A) impose a penalty of not more than six hundred dollars for each two hundred cigarettes, or fraction thereof, in excess of one thousand cigarettes in unstamped or unlawfully stamped packages in the possession or under the control of any person or (B) impose a penalty of not more than two hundred dollars for each ten unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, in the possession or under the control of any person. In addition, the commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or] one pound of tobacco[,] OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; provided, however, that any such penalty imposed shall not exceed seven thousand S. 7509 52 A. 9509 five hundred dollars in the aggregate. The commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobac- co OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any tobacco products dealer or distributor appointed by the commissioner, and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any such dealer or distributor, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed shall not exceed fifteen thousand dollars in the aggregate. § 10. Items (I) and (II) of clause (B) and items (I) and (II) of clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of section 481 of the tax law, as added by chapter 262 of the laws of 2000, are amended to read as follows: (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI- LITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI- TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products deal- er; provided, however, that any such penalty imposed under this clause shall not exceed ten thousand dollars in the aggregate. (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed under this clause shall not exceed twenty thousand dollars in the aggregate. § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as amended by chapter 552 of the laws of 2008, is amended to read as follows: (a) The possession within this state of more than four hundred ciga- rettes in unstamped or unlawfully stamped packages [or], more than two S. 7509 53 A. 9509 hundred fifty cigars, [or] more than five pounds of tobacco other than roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco by any person other than an agent or distributor, as the case may be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one time shall be presumptive evidence that such cigarettes or tobacco products are subject to tax as provided by this article. § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as amended by section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009, are amended to read as follows: (a) Any person who willfully attempts in any manner to evade or defeat the taxes imposed by article twenty of this chapter or payment thereof on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars or more, [or] (iii) four hundred forty pounds of tobacco or more, (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT OR MORE or has previ- ously been convicted two or more times of a violation of paragraph one of this subdivision shall be guilty of a class E felony. (h) (1) Any dealer, other than a distributor appointed by the commis- sioner [of taxation and finance] under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than ten pounds of tobacco [or], more than five hundred cigars OR MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner [of taxation and finance] under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seven- ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprison- ment not to exceed thirty days. (2) Any person, other than a dealer or a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than fifteen pounds of tobacco [or], more than seven hundred fifty cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chap- ter shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. (3) Any person, other than a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control twenty-five hundred or more cigars [or],fifty or more pounds of tobacco OR FIVE THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chapter shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this subdivision shall be guilty of a class E felony for any subsequent violation of this section, regardless of the amount of tobac- co products involved in such violation. (4) For purposes of this subdivision, such person shall knowingly transport or have in his custody, possession or under his control tobac- co [or], cigars OR VAPOR PRODUCTS on which such taxes have not been S. 7509 54 A. 9509 assumed paid by a distributor appointed by the commissioner where such person has knowledge of the requirement of the tax on tobacco products and, where to his knowledge, such taxes have not been assumed or paid on such tobacco products by a distributor appointed by the commissioner of taxation and finance. § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as added by chapter 61 of the laws of 1989, are amended to read as follows: (a) Any person who, while not appointed as a distributor of tobacco products pursuant to the provisions of article twenty of this chapter, imports or causes to be imported into the state more than fifty cigars [or], more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED MILLI- LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac- tures or compounds tobacco products within the state shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. If, within any ninety day period, one thousand or more cigars [or five hundred], TWENTY pounds or more of tobacco OR TWO THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT are imported or caused to be imported into the state for sale within the state or are produced, manufactured or compounded within the state by any person while not appointed as a distributor of tobacco products, such person shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this section shall be guilty of a class E felony for any subse- quent violation of this section, regardless of the amount of tobacco products involved in such violation. (b) For purposes of this section, the possession or transportation within this state by any person, other than a tobacco products distribu- tor appointed by the commissioner of taxation and finance, at any one time of seven hundred fifty or more cigars [or], fifteen pounds or more of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall be presumptive evidence that such tobacco products are possessed or transported for the purpose of sale and are subject to the tax imposed by section four hundred seventy-one-b of this chapter. With respect to such possession or transportation, any provisions of article twenty of this chapter providing for a time period during which the tax imposed by such article may be paid shall not apply. § 14. Subdivision (a) of section 1846-a of the tax law, as amended by chapter 556 of the laws of 2011, is amended to read as follows: (a) Whenever a police officer designated in section 1.20 of the crimi- nal procedure law or a peace officer designated in subdivision four of section 2.10 of such law, acting pursuant to his special duties, shall discover any tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are being imported for sale in the state where the person importing or caus- ing such tobacco products to be imported has not been appointed as a distributor pursuant to section four hundred seventy-two of this chap- ter, such police officer or peace officer is hereby authorized and empowered forthwith to seize and take possession of such tobacco products. Such tobacco products seized by a police officer or peace officer shall be turned over to the commissioner. Such seized tobacco products shall be forfeited to the state. All tobacco products forfeited to the state shall be destroyed or used for law enforcement purposes, except that tobacco products that violate, or are suspected of violat- ing, federal trademark laws or import laws shall not be used for law enforcement purposes. If the commissioner determines the tobacco products may not be used for law enforcement purposes, the commissioner S. 7509 55 A. 9509 must, within a reasonable time thereafter, upon publication in the state registry of a notice to such effect before the day of destruction, destroy such forfeited tobacco products. The commissioner may, prior to any destruction of tobacco products, permit the true holder of the trademark rights in the tobacco products to inspect such forfeited products in order to assist in any investigation regarding such tobacco products. § 15. Subdivision (b) of section 1847 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Any peace officer designated in subdivision four of section 2.10 of the criminal procedure law, acting pursuant to his special duties, or any police officer designated in section 1.20 of the criminal procedure law may seize any vehicle or other means of transportation used to import tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale where the person importing or causing such tobacco products to be imported has not been appointed a distributor pursuant to section four hundred seventy-two of this chapter, other than a vehicle or other means of transportation used by any person as a common carrier in transaction of business as such common carrier, and such vehicle or other means of transportation shall be subject to forfeiture as hereinafter in this section provided. § 16. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to vapor products that first become subject to taxation under article 20 of the tax law on or after such date. PART CC Section 1. The tax law is amended by adding a new article 20-C to read as follows: ARTICLE 20-C OPIOID EPIDEMIC SURCHARGE SECTION 492. DEFINITIONS. 493. IMPOSITION OF SURCHARGE. 494. RETURNS TO BE SECRET. § 492. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY- THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON- IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. 2. "UNIT" SHALL MEAN THE DOSAGE FORM OF AN OPIOID-CONTAINING DRUG INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL (TRANSDERMAL), BUCCAL OR ANY OTHER DOSAGE FORM, SUCH AS WEIGHT OR VOLUME. 3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS- URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. 4. "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES IN POTENCY TO MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH. S. 7509 56 A. 9509 5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT. 6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI- ATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT TO SECTION SIXTY-EIGHT HUNDRED EIGHT OR SECTION SIXTY-EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCA- TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION. 7. "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE, OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID. § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT SOLD. SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH OPIOID IN THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW. THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY, THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND SHALL NOT BE ADDED AS A SEPARATE CHARGE OR LINE ITEM ON ANY INVOICE GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER, AN ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE ITS LIABILITY FOR THE SURCHARGE, ALONG WITH ITS NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER. ALL SALES OF AN OPIOID IN THIS STATE SHALL BE PRESUMED TO BE THE FIRST SALE OF SUCH, AND SHALL ALSO BE PRESUMED TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS THE CONTRARY IS ESTABLISHED BY THE SELLER. 2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI- CLE SHALL FILE WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF SUCH OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON OR BEFORE JANUARY TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR- RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM- BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN. EVERY ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF SURCHARGE DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY. 3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN ALL INVOICES PERTAINING TO SUCH SALES FOR SIX YEARS AFTER THE RETURN REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE COMMIS- SIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE COMMIS- SIONER. 4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE THE SAME TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST S. 7509 57 A. 9509 SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR. SUCH INTEREST SHALL BE AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN THIRTY DAYS. PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS- SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS IN THE CUSTODY OF THE COMPTROLLER TO THE CREDIT OF SUCH SURCHARGES PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE. 5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR- PORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. 6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER 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 OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES- SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM- BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE. (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI- VISION, THE COMMISSIONER SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY- SEVEN-AAAAA OF THE STATE FINANCE LAW. 7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER. § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI- CIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- S. 7509 58 A. 9509 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT- TED 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 AN ESTABLISHMENT 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, THE STATE DEPARTMENT OF EDUCATION 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, 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 THEREBY 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 FROM PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE- SENTATIVES 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; NOR TO PROHIBIT THE COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER- EFROM; NOR TO PROHIBIT 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 SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH- MENT, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH ESTABLISHMENT 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. 2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (B) A VIOLATION OF THIS ARTICLE SHALL BE CONSIDERED A VIOLATION OF SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 2. Section 1825 of the tax law, as amended by section 20 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509 59 A. 9509 § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the provisions of [subdivision (b) of section twenty-one,] subdivision one of section two hundred two, subdivision eight of section two hundred eleven, subdivision (a) of section three hundred fourteen, subdivision one or two of section four hundred thirty-seven, section four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred nine- ty-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- sion (a) of section fourteen hundred eighteen, subdivision (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of this chapter, and subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. The state finance law is amended by adding a new section 97-aaaaa to read as follows: § 97-AAAAA. OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP- TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE ACCOUNT TO BE KNOWN AS THE "OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT". 2. MONEYS IN THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. 3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS- FERRED TO SUCH ACCOUNT PURSUANT TO LAW, CONTRIBUTIONS CONSISTING OF PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY OTHER THING OF VALUE, INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO THIS ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST OF MONEYS RECEIVED FROM ANY LITIGATION OR ENFORCEMENT ACTIONS INITIATED AGAINST OPIOID PHARMACEU- TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS. 4. MONEYS OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR AGENCIES CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE FUNDED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES TO PROVIDE OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO PROVIDE SUPPORT FOR THE PRESCRIPTION MONITORING PROGRAM REGISTRY IF ESTABLISHED. 5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL TRANSFER MONEYS TO SUPPORT THE COSTS OF OPIOID TREATMENT, RECOVERY, PREVENTION, EDUCATION SERVICES, AND OTHER RELATED PROGRAMS, FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF THE STATE. 6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO MONEYS SHALL BE AVAILABLE FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION AND A SCHEDULE OF AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF- S. 7509 60 A. 9509 ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. 7. THE MONEYS, WHEN ALLOCATED, SHALL BE PAID OUT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI- FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE. § 4. This act shall take effect July 1, 2018. PART DD Section 1. The tax law is amended by adding a new section 1521 to read as follows: § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR- ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE OF EVERY CORPORATION (1) AUTHOR- IZED TO TRANSACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAINTENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW. (B) FOR PURPOSES OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL MEAN COMPREHENSIVE HOSPITAL AND MEDICAL EXPENSE INSURANCE INCLUDING, WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY A HEALTH MAINTE- NANCE ORGANIZATION, DISABILITY INCOME INSURANCE, ACCIDENT INSURANCE, MEDICARE SUPPLEMENT INSURANCE, SPECIFIED DISEASE INSURANCE, DENTAL INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR- ANCE, AND HOSPITAL INDEMNITY INSURANCE. (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (2) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA- TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO SUCH GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO S. 7509 61 A. 9509 GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU- LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW. (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB- LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI- CY. (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR LOSS FROM ANY OTHER PERIOD. (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER, DUTY AND RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER INFOR- MATION WITHIN HIS OR HER POSSESSION OR THAT MAY COME INTO HIS OR HER POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN ESTIMATE OF THE SURCHARGE LIABILITY UNDER THIS SECTION OF ANY CORPORATION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN. (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES ASCERTAINS THAT THE AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION- ER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT DUE. IF A CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF FINANCIAL SERVICES WITHIN THE TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN- DENT OF FINANCIAL SERVICES SHALL MAKE AN ESTIMATE OF THE AMOUNT OF SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR- MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT OF SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS PARAGRAPH SHALL SET FORTH THE BASIS THEREOF AND THE DETAILS OF ITS COMPUTATION. (3) THE COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER- INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI- VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER FOR THE ASSESSMENT AND COLLECTION OF THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND PENALTIES, SHOWN BY SUCH PROPOSAL TO BE DUE. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL BE REQUIRED TO ASSIST THE COMMISSIONER IN DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT ANY CONFERENCE AT THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF TAX APPEALS. (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR HER POWERS AND DUTIES WITH RESPECT TO THE ADMINISTRATION AND COLLECTION OF THE TAXES IMPOSED S. 7509 62 A. 9509 UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES, AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINISTRATION AND COLLECTION. (5) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE AUTHORITY TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE SUPERINTENDENT OF FINANCIAL SERVICES A RETURN IN A FORM PRESCRIBED BY THE SUPERINTENDENT OF FINANCIAL SERVICES SETTING FORTH SUCH INFORMATION AS SUCH SUPERINTENDENT MAY PRESCRIBE AND EVERY CORPORATION WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO THE SUPERINTENDENT OF FINANCIAL SERVICES A RETURN ON THE DATE OF SUCH CESSATION OR AT SUCH OTHER TIME AS SUCH SUPERINTENDENT 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 COMMISSIONER AT OR BEFORE THE TIMES SPECIFIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER. (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND SUCH FACTS AND INFORMATION AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY REQUIRE IN THE ADMINISTRATION OF THIS SECTION. (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY GRANT A REASONABLE EXTENSION OF TIME FOR FILING RETURNS WHENEVER GOOD CAUSE EXISTS. AN AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE ALLOWED ANY CORPORATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH CORPORATION FILES WITH THE SUPERINTENDENT OF FINANCIAL SERVICES AN APPLICATION FOR EXTENSION IN SUCH FORM AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PRESCRIBE AND PAYS ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE. (4) EVERY RETURN SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE PRESIDENT, VICE PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF ACCOUNTING OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR- IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR- IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION. (5) EACH CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION IS SUBJECT TO THE SURCHARGE. (6) IN CASE IT SHALL APPEAR TO THE SUPERINTENDENT OF FINANCIAL SERVICES THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIV- ITY, BUSINESS, INCOME OR CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED, THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER AS HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPI- TAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPO- RATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY AGREEMENT, ARRANGE- MENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY S. 7509 63 A. 9509 ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPO- RATION ON SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE SUPERINTENDENT OF FINANCIAL SERVICES MAY INCLUDE IN THE CORPORATION'S GAIN SUBJECT TO THE SURCHARGE THE FAIR AMOUNTS, WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT HAVE DERIVED FROM SUCH TRANSACTION. (I) (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE SUPERINTENDENT OF FINANCIAL SERVICES IN FULL AT THE TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED. (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION (F) OF THIS SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE SUPERINTENDENT OF FINANCIAL SERVICES ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROPERLY ESTIMATED AS PROVIDED BY SAID SUBDIVISION, THE ONLY AMOUNT PAYABLE IN ADDITION TO THE SURCHARGE SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E) OF SECTION ONE THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM UPON THE AMOUNT BY WHICH THE SURCHARGE, OR PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR THE PURPOSES OF THE PRECEDING SENTENCE: (A) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS EITHER (I) NOT LESS THAN NINETY PERCENT OF THE SURCHARGE AS FINALLY DETERMINED, OR (II) NOT LESS THAN THE SURCHARGE SHOWN ON THE CORPO- RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF TWELVE MONTHS; AND (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN. (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY GRANT A REASONABLE EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER. (J) ALL SURCHARGES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES UNDER THIS SECTION SHALL BE DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW. (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THIS SECTION. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE SAME POWER AND AUTHORITY THAT THE COMMISSIONER HAS UNDER ARTICLE TWENTY-SEVEN OF THIS CHAPTER. § 2. This act shall take effect immediately. PART EE Section 1. Subdivision 1 of Section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) S. 7509 64 A. 9509 or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] NINETY days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] NINETY. § 2. Section 203 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: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research S. 7509 65 A. 9509 conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by Decem- ber 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate 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 FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG 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 OO of chapter 59 of the laws of 2017, 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 S. 7509 66 A. 9509 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 [eighteen] NINETEEN; 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 [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, 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. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 S. 7509 67 A. 9509 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN 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 [eighteen] NINETEEN. 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: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. 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: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track S. 7509 68 A. 9509 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. § 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. § 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. § 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 OO of chapter 59 of the laws of 2017, 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. S. 7509 69 A. 9509 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 [eighteen] NINETEEN, 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 [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Section 1. Subdivision 4 of section 97-nnnn of the state finance law is REPEALED. § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law are renumbered subdivisions 4 and 5. § 3. This act shall take effect April 1, 2018. PART II S. 7509 70 A. 9509 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE MAXIMUM ADDITIONAL COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR FEE LESS THE ADJUSTED CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE S. 7509 71 A. 9509 VENDOR FEE THAT THE FACILITY WOULD HAVE RECEIVED DURING THE CURRENT FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS IT EXISTED ON MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE BASE VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE OPENING OF A GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADJUSTED COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (III) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL S. 7509 72 A. 9509 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (I) NOTWITHSTANDING CLAUSE (F) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (F) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. § 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 S. 7509 73 A. 9509 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. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Parts A through II of this act shall be as specifically set forth in the last section of such Parts.
2017-S7509A - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 7509--A A. 9509--A S E N A T E - A S S E M B L Y January 18, 2018 ___________ 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, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufac- tured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax law, in relation to taxable state land (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effective- ness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-04-8 S. 7509--A 2 A. 9509--A consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commis- sioner of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the adminis- trative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mu- tuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part S. 7509--A 3 A. 9509--A FF); 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 breeding law and other laws relating to simulcasting and 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 provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administrative code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code (Part KK); to amend the state finance law, in relation to establishing the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; to amend the tax law, in relation to credits for contributions to accounts in the charitable gifts trust fund; to amend the education law and the general municipal law, in relation to authorizing school districts, counties and New York city to establish charitable funds; and to amend the real property tax law, in relation to authorizing such localities to provide a credit against real prop- erty taxes for such contributions (Part LL); and to amend the tax law and state finance law, in relation to the imposition of an employer compensation expense tax (Part MM) 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 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through MM. 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. 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: S. 7509--A 4 A. 9509--A (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 SEVENTEEN-TWO THOUSAND EIGHTEEN 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 EIGHTEEN-TWO THOUSAND NINETEEN 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. § 2. This act shall take effect immediately. PART B Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 3 of part E of chapter 83 of the laws of 2002, is amended to read as follows: (ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distrib- utions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retire- ment annuity; provided that if no such return was filed for the applica- ble income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. PROVIDED FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART- MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART- MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by chapter 451 of the laws of 2015, is amended to read as follows: (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] NINETEEN, the application form shall indicate that [the] ALL owners of the proper- ty and any owners' spouses residing on the premises [may authorize the assessor to] MUST have their income eligibility verified annually [ther- eafter] by the [state] department [of taxation and finance, in lieu of S. 7509--A 5 A. 9509--A 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 identification numbers in order to facilitate matching with records of the department. [Thereafter, their] THE income eligibility OF SUCH PERSONS shall be verified annually 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 requirements]. All APPLI- CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be required to participate in this program, WHICH SHALL BE KNOWN AS THE STAR INCOME VERIFICATION PROGRAM. (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE BASIC EXEMPTION HAS ALSO BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, 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 PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION- ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL TO EITHER REPLACE THE ENHANCED EXEMPTION WITH A BASIC EXEMPTION, OR TO REMOVE OR DENY THE ENHANCED EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE. THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION OR APPROVAL. (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL 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 A TAXPAYER IS DISSATISFIED WITH THE DEPART- MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI- NATION. IF DISSATISFIED WITH THE STATE BOARD'S DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY- EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. S. 7509--A 6 A. 9509--A § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED. § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the real property tax law are REPEALED. § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- ty tax law, as amended by section 5 of part E of chapter 83 of the laws of 2002 and subparagraph (i) 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: (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption may request that a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner and shall be submitted to the assessor of the assessing unit in which the eligible taxpayer resides no later than sixty days before the first taxable status date to which it is to apply. Such form shall provide a section whereby the designated third party shall consent to such desig- nation. Such request shall be effective upon receipt by the assessor. The assessor shall maintain a list of all eligible property owners who have requested notices pursuant to this paragraph AND SHALL FURNISH A COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST. (ii) [In the case of a senior citizen who has not elected to partic- ipate in the STAR income verification program, a notice shall be sent to the designated third party at least thirty days prior to each ensuing taxable status date; provided that no such notice need be sent in the first year if the request was not received by the assessor at least sixty days before the applicable taxable status date. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their renewal application for the enhanced STAR exemption must be filed with the assessor no later than (enter date). You are encouraged to remind him, her, or them of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are greatly appreciated." (iii) In the case of a senior citizen who has elected to participate in the STAR income verification program, a] A notice shall be sent to the designated third party whenever the assessor OR DEPARTMENT sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE- MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE ASSESSOR. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are aware of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are great- ly appreciated." [(iv)] (III) The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced STAR exemption. § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law is REPEALED. S. 7509--A 7 A. 9509--A § 7. Subdivision 9-b of section 425 of the real property tax law, as added by section 8 of part E of chapter 83 of the laws of 2002 and para- graph (b) as amended by chapter 742 of the laws of 2005 and 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: 9-b. Duration of exemption; enhanced exemption. (a) [In the case of persons who have elected to participate in the STAR income verification program, the] THE enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) [In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the commissioner. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the] THE assessor [may review their] SHALL REVIEW THE continued compliance OF RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable ownership and residency requirements to the same extent as if they were receiving a basic STAR exemption. [(d) Notwithstanding the foregoing provisions of this subdivision, the enhanced exemption shall be continued without a renewal application as long as the property continues to be eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this title.] § 8. Section 425 of the real property tax law is amended by adding a new subdivision 14-a to read as follows: 14-A. IMPLEMENTATION OF CERTAIN ELIGIBILITY DETERMINATIONS. WHEN A TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS SECTION FOR A SCHOOL YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH (C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI- NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE. (A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI- SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE S. 7509--A 8 A. 9509--A TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 9. Section 171-o of the tax law is REPEALED. § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes 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. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART- MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT THAT A RETURN WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL- ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further, that if the qualified taxpayer was an owner of the property during the taxable year but did not own it on December thirty-first of the taxable year, then the determination as to whether the income of an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first day of the month during which the qualified taxpayer ceased to be an owner of the proper- ty, rather than as of December thirty-first of the taxable year. § 11. No application for an enhanced exemption on a final assessment roll to be completed in 2019 may be approved if the applicants have not enrolled in the STAR income verification program established by subpara- graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law as amended by section two of this act, regardless of when the application was filed. The assessor shall notify such appli- cants that participation in that program has become mandatory for all applicants and that their applications cannot be approved unless they enroll therein. The commissioner of taxation and finance shall provide S. 7509--A 9 A. 9509--A a form for assessors to use, at their option, when making this notifica- tion. § 12. This act shall take effect immediately. PART C Section 1. Subdivision 1-e of section 333 of the real property law is amended by adding two new paragraphs ix and x to read as follows: IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A SHARE OR SHARES IN A COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES COME WITH A RIGHT TO OCCUPY A UNIT OR APARTMENT LOCATED IN PROPERTY OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS- FEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXA- TION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF SHARES BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN REAL PROPERTY, A TRANSFER REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC- IFY THE PERCENTAGE OF THE OWNERSHIP INTEREST BEING TRANSFERRED OR ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN- SACTION THAT IS EXEMPT FROM THE REAL ESTATE TRANSFER TAX AS A MERE CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI- SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU- ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR- RENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST" AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN REAL PROPERTY SUBJECT TO REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS, BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS, AND SHALL NOT INCLUDE DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS. § 2. This act shall take effect January 1, 2019 and shall apply to transfers and acquisitions occurring on and after such date. S. 7509--A 10 A. 9509--A PART D Section 1. Subdivision v of section 233 of the real property law, as amended by chapter 566 of the laws of 1996, is amended to read as follows: v. 1. On and after April first, nineteen hundred eighty-nine, the commissioner of housing and community renewal shall have the power and duty to enforce and ensure compliance with the provisions of this section. However, the commissioner shall not have the power or duty to enforce manufactured home park rules and regulations established under subdivision f of this section. 2. On or before January first, nineteen hundred eighty-nine, each manufactured home park owner or operator shall file a registration statement with the commissioner and shall thereafter file an annual registration statement on or before January first of each succeeding year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH MANU- FACTURED HOME PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. The commissioner, by regulation, shall provide that such registration statement shall include [only] the names of all persons owning an interest in the park, the names of all tenants of the park, all services provided by the park owner to the tenants, and SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION AFTER CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE; PROVIDED THAT IN THE CASE OF A REGISTRATION STATEMENT FOR THE FIRST CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of all current manufactured home park rules and regulations. THE COMMIS- SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION AND FINANCE WITH A COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER THE RECEIPT THEREOF. 3. Whenever there shall be a violation of this section, an application may be made by the commissioner of housing and community renewal in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation and with respect to this subdivision, directing the filing of a registration statement. In any such proceeding, the court may make allowances to the commissioner of housing and community renewal of a sum not exceeding two thousand dollars against each defendant, and direct restitution. When- ever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand five hundred dollars for each violation. Such penalty shall be deposited in the manufactured home cooperative fund, created pursuant to section fifty-nine-h of the private housing finance law. In connection with any such proposed application, the commissioner of housing and community renewal is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. The provisions of this subdivision shall not impair the rights granted under subdivision u of this section. § 2. This act shall take effect immediately. PART E S. 7509--A 11 A. 9509--A Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: S. 7509--A 12 A. 9509--A 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 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: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to S. 7509--A 13 A. 9509--A certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Section 1. Subdivision 1 of section 544 of the real property tax law, as amended by chapter 18 of the laws of 2008, is amended and a new subdivision 3 is added to read as follows: 1. The comptroller shall pay taxes levied on lands of the state in each county pursuant to the foregoing sections of this title, out of moneys appropriated by the legislature therefor, to the county treasurer for appropriate distribution upon submission of a statement of such taxes by him or her in such form and executed in such manner by the S. 7509--A 14 A. 9509--A county treasurer as may be required by the comptroller. Provided, howev- er, that in the case of lands which are taxable pursuant to subdivision (j) of section five hundred thirty-two of this title, the comptroller shall pay such taxes. Such payment shall be requested, processed and paid separately from all other taxes that are payable to the county treasurer pursuant to this section. PROVIDED FURTHER, THAT ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON THAT PARCEL AS FOLLOWS: (A) IN THE CASE OF A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU- LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS. THE TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION. (D) THE FOLLOWING PROVISIONS SHALL APPLY TO STATE LANDS THAT ARE SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION: (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY OF THIS TITLE. (II) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE REPORTED TO THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE. (III) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS. (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS- MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE TAXABLE PURSUANT TO THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN S. 7509--A 15 A. 9509--A ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF STATE AID PAYABLE PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND. (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING STATE EQUALIZA- TION RATES AND TAX RATES. (VI) WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION, ANY ACTUAL VALUATION COMPUTED FOR SUCH SCHOOL DISTRICT PURSUANT TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SHALL INCLUDE THE ACTUAL VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE SUCH ACTUAL VALUATION EQUIVALENT BY DIVIDING THE PAYMENT MADE, AS REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR, IF APPLICABLE, THE SPECIAL APPORTIONMENT RATE DETERMINED PURSUANT TO SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER AND DIVIDING SUCH RESULT BY THE FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND THE COMMISSIONER OF EDUCATION, AND SHALL BE USED BY THE COMMISSIONER OF EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP- ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE CORRE- SPONDING ASSESSMENT ROLL. EACH SCHOOL DISTRICT RECEIVING PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION, WITH A COPY TO THE COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW. (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE. § 2. This act shall take effect immediately. PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred S. 7509--A 16 A. 9509--A ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. S. 7509--A 17 A. 9509--A § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI- SION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all S. 7509--A 18 A. 9509--A employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and S. 7509--A 19 A. 9509--A (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Section 1. Subdivision 2 of section 136 of the social services law, as amended by section 24 of part B of chapter 436 of the laws of 1997, is amended to read as follows: 2. All communications and information relating to a person receiving public assistance or care obtained by any social services official, service officer, or employee in the course of his or her work shall be considered confidential and, except as otherwise provided in this section, shall be disclosed only to the commissioner, or his or her authorized representative, the commissioner of labor, or his or her authorized representative, the commissioner of health, or his or her authorized representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR HIS OR HER AUTHORIZED REPRESENTATIVE (OTHER THAN THE DISCLOSURE OF INFORMATION THAT HAS BEEN PROHIBITED BY FEDERAL LAW), the welfare S. 7509--A 20 A. 9509--A inspector general, or his or her authorized representative, the county board of supervisors, city council, town board or other board or body authorized and required to appropriate funds for public assistance and care in and for such county, city or town or its authorized represen- tative or, by authority of the county, city or town social services official, to a person or agency considered entitled to such information. Nothing herein shall preclude a social services official from report- ing to an appropriate agency or official, including law enforcement agencies or officials, known or suspected instances of physical or mental injury, sexual abuse or exploitation, sexual contact with a minor or negligent treatment or maltreatment of a child of which the official becomes aware in the administration of public assistance and care nor shall it preclude communication with the federal immigration and natur- alization service regarding the immigration status of any individual. § 2. This act shall take effect immediately. PART M Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. INVESTMENT MANAGEMENT SERVICES. (A) FOR PURPOSES OF THIS SECTION, THE TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING THE PURCHASE OR SALE OF SECURITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (C) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE THEREOF, REAL ESTATE HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, OR OPTIONS OR DERIVATIVE CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING, OR DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI- VISION. (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS. NOTWITHSTANDING ANY STATE OR FEDERAL LAW TO THE CONTRARY: (1) WHERE A PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND DEDUCTION, INCLUDING ANY GUARANTEED PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE WOULD HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS A BUSINESS RECEIPT FOR SERVICES AND FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE BEEN DETERMINED IF THE PARTNER PERFORMED NO INVESTMENT MANAGEMENT SERVICES SHALL NOT BE LESS THAN ZERO. (2) WHERE A SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A SHAREHOLDER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE- HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT IS IN EXCESS OF THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE- HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF S. 7509--A 21 A. 9509--A THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE PRO RATA SHARE THAT WOULD HAVE BEEN DETERMINED IF THE SHAREHOLDER PERFORMED NO SERVICES SHALL NOT BE LESS THAN ZERO. (3) A PARTNER OR SHAREHOLDER WILL NOT BE DEEMED TO BE PROVIDING INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION IF AT LEAST EIGHTY PERCENT OF THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER- SHIP OR S CORPORATION DURING THE TAXABLE YEAR CONSIST OF REAL ESTATE HELD FOR RENTAL OR INVESTMENT. (C) IN ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY CORPORATION, PARTNER OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT TO AN ADDITIONAL TAX, REFERRED TO AS THE "CARRIED INTEREST FAIRNESS FEE". SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE OF A CORPORATION OR SHAREHOLDER OF AN S CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT APPORTIONED TO THE STATE BY APPLYING THE CORPORATION'S OR S CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID- ING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES AS DETERMINED UNDER SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN ACCORDANCE WITH ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS- LATIVE BILL DRAFTING COMMISSION THAT FEDERAL LEGISLATION HAS BEEN ENACTED THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION. § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, AND (B) ANY NET CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS A BUSINESS RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER; provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 3. Subsection (b) of section 617 of the tax law, as amended by chap- ter 606 of the laws of 1984, is amended to read as follows: (b) Character of items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY- FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income, gain, loss, or deduction shall have the same character for a partner or S. 7509--A 22 A. 9509--A shareholder under this article as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner or shareholder as if realized directly from the source from which realized by the partnership or S corporation or incurred in the same manner as incurred by the partner- ship or S corporation. § 4. Subsection (d) of section 631 of the tax law, as amended by chap- ter 28 of the laws of 1987, is amended to read as follows: (d) Purchase and sale for own account.-- A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of his OR HER trade or business OR A PARTNER OR SHAREHOLDER PERFORMING INVESTMENT MANAGEMENT SERVICES AS DESCRIBED IN SECTION FORTY-FOUR OF THIS CHAPTER, shall not be deemed to carry on a business, trade, profession or occupation in this state solely by reason of the purchase and sale of property or the purchase, sale or writing of stock option contracts, or both, for his own account. § 5. The opening paragraph of subsection (b) of section 632 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP- TER, IN determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which-- § 6. For taxable years beginning on or after January 1, 2018 and before January 1, 2019, (i) no addition to tax under subsection (c) of section 685 or subsection (c) of section 1085 of the tax law shall be imposed with respect to any underpayment attributable to the amendments made by this act of any estimated taxes that are required to be paid prior to the effective date of this act, provided that the taxpayer timely made those payments; and (ii) the required installment of esti- mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of subsection (c) of section 685 of the tax law, and the exception to addi- tion for underpayment of estimated tax described in paragraph 1 or 2 of subsection (d) of section 1085 of the tax law, in relation to the preceding year's return, shall be calculated as if the amendments made by this act had been in effect for that entire preceding year. § 7. This act shall take effect upon the enactment into law by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania of legislation having substantially the same effect as this act and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if the states of Connecticut, New Jersey, Massachusetts and Pennsylvania have already enacted such legislation, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided further that the commissioner of taxa- tion and finance shall notify the legislative bill drafting commission upon the enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania in order that such 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. PART N S. 7509--A 23 A. 9509--A Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART O Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this state but] maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, WHETHER OR NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as amended by chapter 225 of the laws of 1977, is amended to read as follows: (2) who [is not domiciled in such city but] maintains a permanent place of abode in such city and spends in the aggregate more than one S. 7509--A 24 A. 9509--A hundred eighty-three days of the taxable year in such city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 11-1705 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this city but] maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 4. This act shall take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. PART P Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 S. 7509--A 25 A. 9509--A 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 [eighteen] TWENTY; 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. § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 S. 7509--A 26 A. 9509--A 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 [eighteen] TWENTY; 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. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) 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: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N S. 7509--A 27 A. 9509--A of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to S. 7509--A 28 A. 9509--A employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE S. 7509--A 29 A. 9509--A ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE- DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS S. 7509--A 30 A. 9509--A SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR S. 7509--A 31 A. 9509--A WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 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) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may 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. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has S. 7509--A 32 A. 9509--A been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- S. 7509--A 33 A. 9509--A tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may 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 liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Section 1. Section 33 of the tax law, as added by section 1 of part Y of chapter 57 of the laws of 2010, is amended to read as follows: § 33. Temporary deferral of certain tax credits. 1. (a) For taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE, the excess over two million dollars of the total amount of the tax credits speci- fied in subdivision three of this section that in each of those taxable years would otherwise be used to reduce the taxpayer's tax liability to the amount otherwise specified in this chapter or be refunded or credit- ed as an overpayment will be deferred to and used or refunded in taxable years beginning on or after January first, two thousand [thirteen] TWEN- TY-ONE in accordance with the provisions of section thirty-four of this article. Interest shall not be paid on the amounts of credit deferred. (b) To determine the amount of each tax credit allowed for the taxable year to be used, refunded or credited as an overpayment the taxpayer shall multiply the amount of each credit subject to deferral that would S. 7509--A 34 A. 9509--A have been used, refunded or credited as an overpayment in the absence of this section by a fraction, the numerator of which is two million dollars, and the denominator of which is the total amount of the taxpay- er's credits subject to deferral pursuant to subdivision three of this section that would have been used, refunded or credited as an overpay- ment for the taxable year in the absence of this section. The product is the amount of such credit that is not subject to deferral and thus allowed to be used, refunded or credited as an overpayment for the taxa- ble year. 2. Taxpayers shall calculate and make any estimated tax payments required to be made by taking into account the deferral of credits required by this section. Taxpayers shall calculate any mandatory first installment payments made on or after the effective date of this section as if the deferral of credits required by this section had been in effect for the taxable year upon which that installment is based. In addition, for taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [eleven] NINETEEN, (a) no addition to tax under subsection (c) of section six hundred eighty-five of this chapter or subsection (c) of section one thousand eighty-five of this chapter shall be imposed with respect to any underpayment attributable to the deferral required by this section of any estimated taxes that are required to be paid prior to the enact- ment of this section, provided that the taxpayer timely made those payments; and (b) the required installment of estimated tax described in clause (ii) of subparagraph (B) of paragraph three of subsection (c) of section six hundred eighty-five of this chapter, and the exception to addition for underpayment of estimated tax described in paragraph one or two of subsection (d) of section one thousand eighty-five of this chap- ter, in relation to the preceding year's return, shall be calculated as if the deferral required by this section had been in effect for that entire preceding year. 3. (a) This section shall apply to the credits allowed under the following provisions in article nine-a of this chapter and any applica- ble counterpart provisions in articles nine, twenty-two, [thirty-two] and thirty-three of this chapter: Section [210(12)] 210-B(1) investment tax credit Section [210(12-B)] 210-B(3) empire zone investment tax credit Section [210(12-C)] 210-B(4) empire zone employment incentive credit Section [210(12-D)] 210-B(2) employment incentive credit Section [210(12-E)] 210-B(7) QETC employment credit Section [210(12-F)] 210-B(8) QETC capital tax credit [Section 210(12-G) QETC facilities, operations, and training credit] Section [210(17)] 210-B(9) special additional mortgage recording tax credit [Section 210(19) empire zone wage tax credit Section 210(20) empire zone capital tax credit] Section [210(21-a)] 210-B(10) credit for servicing certain mortgages Section [210(23)] 210-B(12) credit for employment of persons with disabilities Section [210(24)] 210-B(30) alternative fuels AND ELECTRIC VEHICLE RECHARGING PROPERTY credit Section [210(25)] 210-B(13) credit for purchase of an automated external defibrillator Section [210(27)] 210-B(5) QEZE credit for real property taxes Section [210(28)] 210-B(6) QEZE tax reduction credit Section [210(30)] 210-B(15) low income housing credit S. 7509--A 35 A. 9509--A Section [210(31)] 210-B(16) green building credit Section [210(33)] 210-B(17) brownfield redevelopment tax credit Section [210(34)] 210-B(18) remediated brownfield credit for real property taxes for qualified sites Section [210(35)] 210-B(19) environmental remediation insurance credit Section [210(37)] 210-B(21) security training tax credit [Section 210(37) credit for fuel cell electric generating equipment expenditures] Section [210(38)] 210-B(22) conservation easement tax credit [Section 210(38) empire state commercial production credit] Section [210(38)] 210-B(24) biofuel production credit Section [210(39)] 210-B(25) clean heating fuel credit Section [210(40)] 210-B(26) credit for rehabilitation of historic properties Section [210(40)] 210-B(38) credit for companies who provide transpor- tation to individuals with disabilities SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT SECTION 210-B(35) ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT CREDIT SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION SERVICES CREDIT SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT (b) This section shall also apply to the credits allowed by the following sections: [Section 186-a(9) power for jobs credit] Section 606(g-1) solar energy system equipment credit Section 606(pp) historic homeownership rehabilitation credit Section 1511(k) credit for certain investments in certified capital companies § 2. Subdivisions 1 and 2 of section 34 of the tax law, as added by section 2 of part Y of chapter 57 of the laws of 2010, are amended to read as follows: 1. The amounts of nonrefundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral nonrefundable payout cred- it. The taxpayer may first claim this credit in the taxable year begin- ning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO. The taxpayer shall be allowed to claim this credit until the accumulated amounts are exhausted. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (a) of subdivision three of this section. 2. The amounts of refundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral refundable payout credit. In the taxable year beginning on or after January first, two thousand S. 7509--A 36 A. 9509--A [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO, the taxpayer shall be allowed to claim a credit equal to fifty percent of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fourteen] TWENTY-TWO and before January first, two thousand [fifteen] TWENTY-THREE, the taxpayer shall be allowed to claim a credit equal to seventy-five percent of the balance of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fifteen] TWENTY-THREE and before January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be allowed to claim a credit equal to the remaining balance of the amount accumulated. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (b) of subdivision three of this section. § 3. This act shall take effect immediately. PART T Section 1. Subdivision (a) of section 1412 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (a) A grantor or grantee claiming to have erroneously paid the tax imposed by this article or some other person designated by such grantor or grantee may file an application for refund within [two] THREE years from the date of payment. Such application shall be filed with the commissioner [of taxation and finance] on a form which he shall prescribe. § 2. Subdivision (b) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the additional tax imposed by this section shall be paid by the grantee. If the grantee [is exempt from such tax, the grantor shall have the duty to pay the tax] HAS FAILED TO PAY THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN HUNDRED TEN OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to conveyances occurring on or after the fifteenth day after this act shall have become a law. PART U Section 1. Subdivision 6 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 6. "Wholesale price." The [established] INVOICE price for which a manufacturer OR OTHER PERSON sells tobacco products to a distributor, INCLUDING THE FEDERAL EXCISE TAXES PAID BY THE MANUFACTURER OR OTHER PERSON, before the allowance of any discount, trade allowance, rebate or other reduction. [In the absence of such an established price, a manufacturer's invoice price of any tobacco product shall be presumptive evidence of the whole- sale price of such tobacco product, and in its absence the price at which such tobacco products were purchased shall be presumed to be the wholesale price, unless evidence of a lower wholesale price shall be S. 7509--A 37 A. 9509--A established or any industry standard of markups relating to the purchase price in relation to the wholesale price shall be established.] § 2. This act shall take effect on September 1, 2018 and shall apply to all tobacco products possessed in this state for sale on or after such date. PART V Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of section 1105 of the tax law, as amended by section 9 of part S of chap- ter 85 of the laws of 2002, is amended to read as follows: (A) gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature, INCLUDING THE TRANS- PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF SOLD SEPARATELY; § 2. Section 1105-C of the tax law is REPEALED. § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (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 what- ever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subparagraph (i) of the opening paragraph of this section; § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York, as amended by chapter 200 of the laws of 2009, is amended to read as follows: (8) [makes inapplicable section eleven hundred five-C of the tax law, and] imposes tax on 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 subdivision (a) of this section. § 5. This act shall take effect immediately; provided however that this act shall apply to sales made and services rendered on and after June 1, 2018 whether or not such sales and services are rendered under a prior contract. PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed S. 7509--A 38 A. 9509--A a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- S. 7509--A 39 A. 9509--A nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any S. 7509--A 40 A. 9509--A employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. S. 7509--A 41 A. 9509--A (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part II of chapter 59 of the laws of 2014, is amended to read as follows: (1) (A) Food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- ic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED AS EXEMPTING FOOD OR DRINK FROM THE TAX IMPOSED UNDER SUBDIVISION (D) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE. [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY, THE food and drink excluded from the exemption provided by [this paragraph under subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A) of this paragraph, AND BOTTLED WATER, shall be exempt under this [paragraph] SUBPARAGRAPH when sold for one dollar and fifty cents or less through any vending machine [activated by the use of] THAT ACCEPTS coin[,] OR currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO DOLLARS OR LESS THROUGH ANY VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT OTHER THAN COIN OR CURRENCY, WHETHER OR NOT IT ALSO ACCEPTS COIN OR CURRENCY. [With the exception of the provision in this paragraph provid- ing for an exemption for certain food or drink sold for one dollar and S. 7509--A 42 A. 9509--A fifty cents or less through vending machines, nothing herein shall be construed as exempting food or drink from the tax imposed under subdivi- sion (d) of section eleven hundred five of this article.] § 2. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located S. 7509--A 43 A. 9509--A within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH, CATALOG, AN INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE SELLER FOR A SALE OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR S. 7509--A 44 A. 9509--A WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI- TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN. (2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET- PLACE PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF PARAGRAPH ONE OF THIS SUBDIVISION. § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- ter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; [and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH RESPECT TO SALES OF TANGIBLE PERSONAL PROPERTY IT FACILITATES AS DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability compa- ny, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corpo- ration, partnership, limited liability company or individual proprietor- ship in complying with any requirement of this article; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 3. Section 1132 of the tax law is amended by adding a new subdivi- sion (l) to read as follows: (L)(1) A MARKETPLACE PROVIDER WITH RESPECT TO A SALE OF TANGIBLE PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF- ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS S. 7509--A 45 A. 9509--A TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY SUCH MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER PROVIDING THE MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF- ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIFICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE PERSONAL PROPERTY BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A MARKETPLACE PROVIDER WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM SUCH MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the S. 7509--A 46 A. 9509--A provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THEMSELVES AND SUCH MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR- TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding two new subdivi- sions 15 and 16 to read as follows: 15. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAS BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER- WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. 16. TO ENFORCE THE PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND NON-COLLECTING MARKETPLACE PROVIDERS PROVIDED BY SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED- ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH PROCEEDING SHALL BE ALBANY COUNTY. § 7. The tax law is amended by adding a new section 1135-a to read as follows: § 1135-A. REPORTING REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER: (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER, AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (C) NEW YORK PURCHASER MEANS ANY PERSON WHO PURCHASES TANGIBLE PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE. (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY- TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART, THE PURCHASER'S BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S S. 7509--A 47 A. 9509--A SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS. (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER: (A) A NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST. THESE RECORDS SHALL INCLUDE, BUT ARE NOT LIMITED TO, EACH NEW YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, AND THE TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF THE NEW YORK PURCHASER. (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL FILE AN ANNUAL INFORMATION RETURN WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF THE NON- COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER- TY THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE COMMIS- SIONER MAY PRESCRIBE. SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR, WITH THE FIRST SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN. (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROVIDE AN ANNUAL STATEMENT OF PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE PURCHASER'S TRANSACTIONS IN THE PRIOR CALENDAR YEAR AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION- ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW- ING, THE DATE OF EACH PURCHASE, A GENERAL DESCRIPTION OF EACH ITEM PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA- TION REGARDING WHETHER AND HOW TO REMIT THE SALES OR USE TAX TO THE COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES TO THE COMMISSIONER. SUCH STATEMENT SHALL BE SENT TO EACH NEW YORK PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, UNLESS THE PURCHASER'S LAST KNOWN ADDRESS IS AN E-MAIL ADDRESS, IN WHICH CASE THE STATEMENT IS TO BE SENT BY E-MAIL, THE SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION". (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL ORDER FORMS, AND UPON EACH SALES RECEIPT OR OTHER MEMORANDUM OF THE PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS- ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE THAT NEITHER NEW YORK STATE AND LOCAL SALES NOR USE TAX IS BEING COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER. (3) A NON-COLLECTING SELLER SHALL KEEP RECORDS OF THE INFORMATION DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH TWO OF THIS S. 7509--A 48 A. 9509--A SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY PER-PURCHASE NOTICES OR ANNUAL STATEMENTS OF PURCHASES REQUIRED. THE NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH PERIODS AND IN SUCH MANNER AS PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS PART, OR AS THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR INSPECTION AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER. (4) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR ANY CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW YORK PURCHASERS ARE LESS THAN FIVE MILLION DOLLARS DURING THE PRIOR CALENDAR YEAR. (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF, THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY: (A) A MARKETPLACE PROVIDER FROM WHOM SUCH NON-COLLECTING SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF. (B) (1) A NON-COLLECTING MARKETPLACE PROVIDER SHALL PERFORM THE REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH NON-COLLECTING SELLER. (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE TO ALL NON-COLLECTING SELLERS FOR WHOM THEY FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN THIS STATE, SUCH NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION: (A) SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND COLLECT THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED TO OBTAIN A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH; (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A LOCATION IN THIS STATE TO THE COMMISSIONER UPON REQUEST; AND (C) THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA- TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY SUCH NON- COLLECTING MARKETPLACE PROVIDER. (C) THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE NOTICE REQUIRED BY THIS SUBDIVISION IF OTHER STATES IMPOSE SIMILAR REQUIREMENTS, IN ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS. § 8. Subdivision (i) of section 1145 of the tax law, as added by section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (i)(1) Every person required to file an information return by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section eleven S. 7509--A 49 A. 9509--A hundred thirty-six of this part, OR AN ANNUAL STATEMENT OR NOTICE REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who [(A)] fails to provide any of the information required [by paragraph one or two of subdivision (i) of section eleven hundred thirty-six of this part for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART, or who fails to include any such information that is true and correct [(whether or not such a report is filed) for a vendor, operator, or recipient, or (B) fails to provide the information required by para- graph four of subdivision (i) of section eleven hundred thirty-six of this part to a vendor, operator, or recipient specified in paragraph four of subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided in this article or otherwise imposed by law, be subject to a penalty of five hundred dollars for ten or fewer failures, and up to fifty dollars for each additional failure. (2) Every person failing to file an information return required by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev- en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR NOTICE BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A of this part within the time required [by subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided for in this article or otherwise imposed by law, be subject to a penalty in an amount not to exceed two thousand dollars for each such failure, provided that the minimum penalty under this paragraph is five hundred dollars. (3) In no event will the penalty imposed by paragraph one of this subdivision, or the aggregate of the penalties imposed under paragraphs one and two of this subdivision, exceed ten thousand dollars for any annual filing period [as described by paragraph three of subdivision (i) of section eleven hundred thirty-six of this part]. (4) If the commissioner determines that any of the failures that are subject to penalty under this subdivision was entirely due to reasonable cause and not due to willful neglect, the commissioner must remit the penalty imposed under this subdivision. These penalties will be deter- mined, assessed, collected, paid, disposed of and enforced in the same manner as taxes imposed by this article and all the provisions of this article relating thereto will be deemed also to refer to these penal- ties. § 9. 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 provision had not been included herein. § 10. This act shall take effect immediately and shall apply to sales made on or after September 1, 2018; provided, however, that the require- ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of section 1135-a as added by section two of this act shall apply to sales made on or after January 1, 2019. PART BB S. 7509--A 50 A. 9509--A Section 1. Subdivision 2 of section 470 of the tax law, as amended by section 15 of part D of chapter 134 of the laws of 2010, is amended to read as follows: 2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS, VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump- tion by smoking, chewing, INHALING VAPORS or as snuff. § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 12. "Distributor." Any person who imports or causes to be imported into this state any tobacco product (in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale, or who manufactures any tobacco product in this state, and any person within or without the state who is authorized by the commissioner of taxation and finance to make returns and pay the tax on tobacco products sold, shipped or delivered by him to any person in the state. § 3. Section 470 of the tax law is amended by adding a new subdivision 20 to read as follows: 20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THIRTY-THREE HUNDRED SIXTY-TWO OF THE PUBLIC HEALTH LAW. § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, as amended by section 18 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price, and is intended to be imposed only once upon the sale of any tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS. § 5. Subdivision 1 of section 471-b of the tax law is amended by adding a new paragraph (d) to read as follows: (D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 6. Subdivision (a) of section 471-c of the tax law, as amended by section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) and (ii) as amended by section 20 and paragraph (iii) as added by section 21 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) There is hereby imposed and shall be paid a tax on all tobacco products used in the state by any person, except that no such tax shall be imposed (1) if the tax provided in section four hundred seventy-one-b of this article is paid, or (2) on the use of tobacco products which are exempt from the tax imposed by said section, or (3) on the use of two hundred fifty cigars or less, [or] five pounds or less of tobacco other than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your- own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought into the state on, or in the possession of, any person. (i) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price. S. 7509--A 51 A. 9509--A (ii) Such tax on snuff shall be at the rate of two dollars per ounce and a proportionate rate on any fractional parts of an ounce, provided that cans or packages of snuff with a net weight of less than one ounce shall be taxed at the equivalent rate of cans or packages weighing one ounce. Such tax shall be computed based on the net weight as listed by the manufacturer. (iii) Such tax on little cigars shall be at the same rate imposed on cigarettes under this article and is intended to be imposed only once upon the sale of any little cigars. (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- ter 552 of the laws of 2008, is amended to read as follows: 2. Every person who shall possess or transport more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll- your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that such person is a dealer in tobacco products in this state and subject to the requirements of this article. § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 3. Every dealer or distributor or employee thereof, or other person acting on behalf of a dealer or distributor, who shall possess or trans- port more than fifty cigars [or], more than one pound of tobacco OR MORE THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that the tax imposed by this article on tobacco products has not been paid and is due and owing. § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2013, is amended to read as follows: (i) In addition to any other penalty imposed by this article, the commissioner may (A) impose a penalty of not more than six hundred dollars for each two hundred cigarettes, or fraction thereof, in excess of one thousand cigarettes in unstamped or unlawfully stamped packages in the possession or under the control of any person or (B) impose a penalty of not more than two hundred dollars for each ten unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, in the possession or under the control S. 7509--A 52 A. 9509--A of any person. In addition, the commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or] one pound of tobacco[,] OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; provided, however, that any such penalty imposed shall not exceed seven thousand five hundred dollars in the aggregate. The commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobac- co OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any tobacco products dealer or distributor appointed by the commissioner, and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any such dealer or distributor, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed shall not exceed fifteen thousand dollars in the aggregate. § 10. Items (I) and (II) of clause (B) and items (I) and (II) of clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of section 481 of the tax law, as added by chapter 262 of the laws of 2000, are amended to read as follows: (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI- LITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI- TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products deal- er; provided, however, that any such penalty imposed under this clause shall not exceed ten thousand dollars in the aggregate. (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for S. 7509--A 53 A. 9509--A each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed under this clause shall not exceed twenty thousand dollars in the aggregate. § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as amended by chapter 552 of the laws of 2008, is amended to read as follows: (a) The possession within this state of more than four hundred ciga- rettes in unstamped or unlawfully stamped packages [or], more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco by any person other than an agent or distributor, as the case may be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one time shall be presumptive evidence that such cigarettes or tobacco products are subject to tax as provided by this article. § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as amended by section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009, are amended to read as follows: (a) Any person who willfully attempts in any manner to evade or defeat the taxes imposed by article twenty of this chapter or payment thereof on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars or more, [or] (iii) four hundred forty pounds of tobacco or more, (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT OR MORE or has previ- ously been convicted two or more times of a violation of paragraph one of this subdivision shall be guilty of a class E felony. (h) (1) Any dealer, other than a distributor appointed by the commis- sioner [of taxation and finance] under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than ten pounds of tobacco [or], more than five hundred cigars OR MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner [of taxation and finance] under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seven- ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprison- ment not to exceed thirty days. (2) Any person, other than a dealer or a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than fifteen pounds of tobacco [or], more than seven hundred fifty cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chap- ter shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. (3) Any person, other than a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control twenty-five hundred S. 7509--A 54 A. 9509--A or more cigars [or],fifty or more pounds of tobacco OR FIVE THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chapter shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this subdivision shall be guilty of a class E felony for any subsequent violation of this section, regardless of the amount of tobac- co products involved in such violation. (4) For purposes of this subdivision, such person shall knowingly transport or have in his custody, possession or under his control tobac- co [or], cigars OR VAPOR PRODUCTS on which such taxes have not been assumed paid by a distributor appointed by the commissioner where such person has knowledge of the requirement of the tax on tobacco products and, where to his knowledge, such taxes have not been assumed or paid on such tobacco products by a distributor appointed by the commissioner of taxation and finance. § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as added by chapter 61 of the laws of 1989, are amended to read as follows: (a) Any person who, while not appointed as a distributor of tobacco products pursuant to the provisions of article twenty of this chapter, imports or causes to be imported into the state more than fifty cigars [or], more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED MILLI- LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac- tures or compounds tobacco products within the state shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. If, within any ninety day period, one thousand or more cigars [or five hundred], TWENTY pounds or more of tobacco OR TWO THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT are imported or caused to be imported into the state for sale within the state or are produced, manufactured or compounded within the state by any person while not appointed as a distributor of tobacco products, such person shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this section shall be guilty of a class E felony for any subse- quent violation of this section, regardless of the amount of tobacco products involved in such violation. (b) For purposes of this section, the possession or transportation within this state by any person, other than a tobacco products distribu- tor appointed by the commissioner of taxation and finance, at any one time of seven hundred fifty or more cigars [or], fifteen pounds or more of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall be presumptive evidence that such tobacco products are possessed or transported for the purpose of sale and are subject to the tax imposed by section four hundred seventy-one-b of this chapter. With respect to such possession or transportation, any provisions of article twenty of this chapter providing for a time period during which the tax imposed by such article may be paid shall not apply. § 14. Subdivision (a) of section 1846-a of the tax law, as amended by chapter 556 of the laws of 2011, is amended to read as follows: (a) Whenever a police officer designated in section 1.20 of the crimi- nal procedure law or a peace officer designated in subdivision four of section 2.10 of such law, acting pursuant to his special duties, shall discover any tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are S. 7509--A 55 A. 9509--A being imported for sale in the state where the person importing or caus- ing such tobacco products to be imported has not been appointed as a distributor pursuant to section four hundred seventy-two of this chap- ter, such police officer or peace officer is hereby authorized and empowered forthwith to seize and take possession of such tobacco products. Such tobacco products seized by a police officer or peace officer shall be turned over to the commissioner. Such seized tobacco products shall be forfeited to the state. All tobacco products forfeited to the state shall be destroyed or used for law enforcement purposes, except that tobacco products that violate, or are suspected of violat- ing, federal trademark laws or import laws shall not be used for law enforcement purposes. If the commissioner determines the tobacco products may not be used for law enforcement purposes, the commissioner must, within a reasonable time thereafter, upon publication in the state registry of a notice to such effect before the day of destruction, destroy such forfeited tobacco products. The commissioner may, prior to any destruction of tobacco products, permit the true holder of the trademark rights in the tobacco products to inspect such forfeited products in order to assist in any investigation regarding such tobacco products. § 15. Subdivision (b) of section 1847 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Any peace officer designated in subdivision four of section 2.10 of the criminal procedure law, acting pursuant to his special duties, or any police officer designated in section 1.20 of the criminal procedure law may seize any vehicle or other means of transportation used to import tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale where the person importing or causing such tobacco products to be imported has not been appointed a distributor pursuant to section four hundred seventy-two of this chapter, other than a vehicle or other means of transportation used by any person as a common carrier in transaction of business as such common carrier, and such vehicle or other means of transportation shall be subject to forfeiture as hereinafter in this section provided. § 16. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to vapor products that first become subject to taxation under article 20 of the tax law on or after such date. PART CC Section 1. The tax law is amended by adding a new article 20-C to read as follows: ARTICLE 20-C OPIOID EPIDEMIC SURCHARGE SECTION 492. DEFINITIONS. 493. IMPOSITION OF SURCHARGE. 494. RETURNS TO BE SECRET. § 492. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY- THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON- IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR S. 7509--A 56 A. 9509--A TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. 2. "UNIT" SHALL MEAN THE DOSAGE FORM OF AN OPIOID-CONTAINING DRUG INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL (TRANSDERMAL), BUCCAL OR ANY OTHER DOSAGE FORM, SUCH AS WEIGHT OR VOLUME. 3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS- URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. 4. "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES IN POTENCY TO MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH. 5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT. 6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI- ATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT TO SECTION SIXTY-EIGHT HUNDRED EIGHT OR SECTION SIXTY-EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCA- TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION. 7. "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE, OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID. § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT SOLD. SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH OPIOID IN THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW. THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY, THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND SHALL NOT BE ADDED AS A SEPARATE CHARGE OR LINE ITEM ON ANY INVOICE GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER, AN ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE ITS LIABILITY FOR THE SURCHARGE, ALONG WITH ITS NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER. ALL SALES OF AN OPIOID IN THIS STATE SHALL BE PRESUMED TO BE THE FIRST SALE OF SUCH, AND SHALL ALSO BE PRESUMED TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS THE CONTRARY IS ESTABLISHED BY THE SELLER. 2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI- CLE SHALL FILE WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF SUCH OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON OR BEFORE JANUARY TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR- RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM- BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN. EVERY ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF SURCHARGE DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, S. 7509--A 57 A. 9509--A THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY. 3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN ALL INVOICES PERTAINING TO SUCH SALES FOR SIX YEARS AFTER THE RETURN REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE COMMIS- SIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE COMMIS- SIONER. 4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE THE SAME TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR. SUCH INTEREST SHALL BE AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN THIRTY DAYS. PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS- SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS IN THE CUSTODY OF THE COMPTROLLER TO THE CREDIT OF SUCH SURCHARGES PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE. 5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR- PORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. 6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER 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 OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES- SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM- BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE. (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI- VISION, THE COMMISSIONER SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE S. 7509--A 58 A. 9509--A SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY- SEVEN-AAAAA OF THE STATE FINANCE LAW. 7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER. § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI- CIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT- TED 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 AN ESTABLISHMENT 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, THE STATE DEPARTMENT OF EDUCATION 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, 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 THEREBY 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 FROM PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE- SENTATIVES 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; NOR TO PROHIBIT THE COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER- EFROM; NOR TO PROHIBIT 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 SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH- MENT, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A S. 7509--A 59 A. 9509--A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH ESTABLISHMENT 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. 2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (B) A VIOLATION OF THIS ARTICLE SHALL BE CONSIDERED A VIOLATION OF SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 2. Section 1825 of the tax law, as amended by section 20 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the provisions of [subdivision (b) of section twenty-one,] subdivision one of section two hundred two, subdivision eight of section two hundred eleven, subdivision (a) of section three hundred fourteen, subdivision one or two of section four hundred thirty-seven, section four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred nine- ty-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- sion (a) of section fourteen hundred eighteen, subdivision (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of this chapter, and subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. The state finance law is amended by adding a new section 97-aaaaa to read as follows: § 97-AAAAA. OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP- TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE ACCOUNT TO BE KNOWN AS THE "OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT". 2. MONEYS IN THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. 3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS- FERRED TO SUCH ACCOUNT PURSUANT TO LAW, CONTRIBUTIONS CONSISTING OF PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY OTHER THING OF VALUE, INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO THIS ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST OF MONEYS RECEIVED FROM ANY LITIGATION OR ENFORCEMENT ACTIONS INITIATED AGAINST OPIOID PHARMACEU- TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS. 4. MONEYS OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR AGENCIES CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE FUNDED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES TO PROVIDE OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO S. 7509--A 60 A. 9509--A PROVIDE SUPPORT FOR THE PRESCRIPTION MONITORING PROGRAM REGISTRY IF ESTABLISHED. 5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL TRANSFER MONEYS TO SUPPORT THE COSTS OF OPIOID TREATMENT, RECOVERY, PREVENTION, EDUCATION SERVICES, AND OTHER RELATED PROGRAMS, FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF THE STATE. 6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO MONEYS SHALL BE AVAILABLE FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION AND A SCHEDULE OF AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF- ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. 7. THE MONEYS, WHEN ALLOCATED, SHALL BE PAID OUT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI- FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE. § 4. This act shall take effect July 1, 2018. PART DD Section 1. The tax law is amended by adding a new section 1521 to read as follows: § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR- ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE AND THE NET UNDERWRITING GAIN FROM THE OPERATION OF A MEDICAID MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH OF EVERY CORPORATION (1) AUTHORIZED TO TRAN- SACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAIN- TENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW. (B) FOR PURPOSES OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL MEAN COMPREHENSIVE HOSPITAL AND MEDICAL EXPENSE INSURANCE INCLUDING, WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY A HEALTH MAINTE- NANCE ORGANIZATION, DISABILITY INCOME INSURANCE, ACCIDENT INSURANCE, MEDICARE SUPPLEMENT INSURANCE, SPECIFIED DISEASE INSURANCE, DENTAL INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR- ANCE, AND HOSPITAL INDEMNITY INSURANCE. (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK S. 7509--A 61 A. 9509--A LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (2) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA- TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO SUCH GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU- LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW. (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB- LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI- CY. (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR LOSS FROM ANY OTHER PERIOD. (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL, ON BEHALF OF THE COMMISSIONER, HAVE THE POWER, DUTY AND RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER INFORMATION WITHIN HIS OR HER POSSESSION OR THAT MAY COME INTO HIS OR HER POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN ESTIMATE OF THE SURCHARGE LIABILITY UNDER THIS SECTION OF ANY CORPORATION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN. (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES ASCERTAINS THAT THE AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION- ER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT DUE. IF A CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF FINANCIAL SERVICES WITHIN THE TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN- DENT OF FINANCIAL SERVICES SHALL MAKE AN ESTIMATE OF THE AMOUNT OF SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR- MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT OF SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS S. 7509--A 62 A. 9509--A PARAGRAPH SHALL SET FORTH THE BASIS THEREOF AND THE DETAILS OF ITS COMPUTATION. (3) THE COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER- INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI- VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER FOR THE ASSESSMENT AND COLLECTION OF THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND PENALTIES, SHOWN BY SUCH PROPOSAL TO BE DUE. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL BE REQUIRED TO ASSIST THE COMMISSIONER IN DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT ANY CONFERENCE AT THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF TAX APPEALS. (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR HER POWERS AND DUTIES WITH RESPECT TO THE ADMINISTRATION AND COLLECTION OF THE SURCHARGE IMPOSED UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES, AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINIS- TRATION AND COLLECTION. (5) THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE COMMISSIONER SHALL EACH HAVE THE AUTHORITY TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. (6) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT IN ANY WAY BE DEEMED TO LIMIT THE POWER OF THE COMMISSIONER TO CONDUCT AN EXAMINATION OR INVESTIGATION AS HE OR SHE DEEMS NECESSARY IN ORDER TO CARRY OUT HIS OR HER DUTIES WITH RESPECT TO THE SURCHARGE IMPOSED UNDER THIS SECTION. (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE COMMISSIONER A RETURN IN A FORM PRESCRIBED BY THE COMMISSIONER SETTING FORTH SUCH INFORMATION AS THE COMMISSIONER MAY PRESCRIBE AND EVERY CORPORATION WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO THE COMMISSIONER A RETURN ON THE DATE OF SUCH CESSATION OR AT SUCH OTHER TIME AS THE COMMISSIONER 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 SPECI- FIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER. (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND SUCH FACTS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE IN THE ADMINIS- TRATION OF THIS SECTION. (3) THE COMMISSIONER MAY GRANT A REASONABLE EXTENSION OF TIME FOR FILING RETURNS WHENEVER GOOD CAUSE EXISTS. AN AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE ALLOWED ANY CORPO- RATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVI- SION, SUCH CORPORATION FILES WITH THE COMMISSIONER AN APPLICATION FOR EXTENSION IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE AND PAYS ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE. (4) EVERY RETURN SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE PRESIDENT, VICE PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF ACCOUNTING OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR- IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR- IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION. S. 7509--A 63 A. 9509--A (5) EACH CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION IS SUBJECT TO THE SURCHARGE. (6) IN CASE IT SHALL APPEAR TO THE COMMISSIONER THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIVITY, BUSINESS, INCOME OR CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED, THE COMMISSIONER IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER AS HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPITAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPORATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY AGREE- MENT, ARRANGEMENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPORATION ON SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE COMMISSIONER MAY INCLUDE IN THE CORPORATION'S GAIN SUBJECT TO THE SURCHARGE THE FAIR AMOUNTS, WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT HAVE DERIVED FROM SUCH TRANSACTION. (I) (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE COMMISSIONER IN FULL AT THE TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED. (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION (F) OF THIS SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE SUPERINTENDENT OF FINANCIAL SERVICES ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROPERLY ESTIMATED AS PROVIDED BY SAID SUBDIVISION, THE ONLY AMOUNT PAYABLE IN ADDITION TO THE SURCHARGE SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E) OF SECTION ONE THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM UPON THE AMOUNT BY WHICH THE SURCHARGE, OR PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR THE PURPOSES OF THE PRECEDING SENTENCE: (A) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS EITHER (I) NOT LESS THAN NINETY PERCENT OF THE SURCHARGE AS FINALLY DETERMINED, OR (II) NOT LESS THAN THE SURCHARGE SHOWN ON THE CORPO- RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF TWELVE MONTHS; AND (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN. (3) THE COMMISSIONER MAY GRANT A REASONABLE EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER. (J) ALL SURCHARGES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS SECTION SHALL BE DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW. (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME S. 7509--A 64 A. 9509--A FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THIS SECTION. § 2. This act shall take effect immediately. PART EE Section 1. Subdivision 1 of Section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] NINETY days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] NINETY. § 2. Section 203 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: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK S. 7509--A 65 A. 9509--A POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by Decem- ber 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate 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 FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509--A 66 A. 9509--A (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 [eighteen] NINETEEN; 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 [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by S. 7509--A 67 A. 9509--A section 2 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, 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. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN 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 [eighteen] NINETEEN. 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: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. 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- S. 7509--A 68 A. 9509--A 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: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, 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. § 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. § 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. 7509--A 69 A. 9509--A § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, 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 S. 7509--A 70 A. 9509--A first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Section 1. Subdivision 4 of section 97-nnnn of the state finance law is REPEALED. § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law are renumbered subdivisions 4 and 5. § 3. This act shall take effect April 1, 2018. PART II Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE S. 7509--A 71 A. 9509--A WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE MAXIMUM ADDITIONAL COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR FEE LESS THE ADJUSTED CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY WOULD HAVE RECEIVED DURING THE CURRENT FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS IT EXISTED ON MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE BASE VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE OPENING OF A GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADJUSTED COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (III) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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 S. 7509--A 72 A. 9509--A ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (I) NOTWITHSTANDING CLAUSE (F) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND S. 7509--A 73 A. 9509--A WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (F) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. PART JJ Section 1. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 2. Section 612 of the tax law is amended by adding two new subsections (w) and (x) to read as follows: (W) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. S. 7509--A 74 A. 9509--A (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 3. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, he OR SHE may elect to deduct his OR HER New York itemized deduction [in lieu of] OR CLAIM his OR HER New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than feder- al deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subsections (f) and (g) of this section. § 4. Subdivision (a) of section 11-1714 of the administrative code of the city of New York, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the city standard deduction of a city resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 5. Section 11-1712 of the administrative code of the city of New York is amended by adding two new subdivisions (u) and (v) to read as follows: (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND S. 7509--A 75 A. 9509--A MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 6. Subdivision (a) of section 11-1715 of the administrative code of the city of New York, as amended by section 5 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a city resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, such resident individual may elect to deduct his OR HER city itemized deduction [in lieu of] OR CLAIM his OR HER city standard deduction. The city itemized deduction of a city resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subdivi- sions (f) and (g) of this section. § 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART KK Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax law, as amended by section 5-a of part T of chapter 59 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) TO THE EXTENT NOT INCLUDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, SUCH INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (III) in the discretion of the commissioner, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in S. 7509--A 76 A. 9509--A paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (6) any amount treated as dividends pursuant to section seventy-eight of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT INCLUDED IN THE COMPUTATION OF THE DEDUCTION ALLOWED UNDER SECTION TWO HUNDRED FIFTY OF SUCH CODE; § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 23 to read as follow: (23) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 13-a of part Q of chapter 60 of the laws of 2016, 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] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI- RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE. 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 install- ment 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 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 otherwise due on or after the termination of existence of the taxpayer. S. 7509--A 77 A. 9509--A § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART LL Section 1. The state finance law is amended by adding a new section 92-gg to read as follows: § 92-GG. CHARITABLE GIFTS TRUST FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE STATE COMPTROLLER A SPECIAL FUND PURSUANT TO SECTION ELEVEN OF THIS CHAPTER TO BE KNOWN AS THE "CHARITABLE GIFTS TRUST FUND". 2. MONEYS IN THE CHARITABLE GIFTS TRUST FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY MONEYS OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND AS ASSETS TO BE USED FOR PURPOSES OF THE FUND. 3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION, NO MONEYS FROM THE CHARITABLE GIFTS TRUST FUND SHALL BE TRANSFERRED TO ANY OTHER FUND, NOR SHALL MONEYS FROM THE FUND BE USED TO MAKE PAYMENTS FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION. 4. THE CHARITABLE GIFTS TRUST FUND SHALL HAVE TWO SEPARATE AND DISTINCT ACCOUNTS, AS SET FORTH IN PARAGRAPHS A AND B OF THIS SUBDIVI- SION. MONEYS IN EACH OF THE ACCOUNTS SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF ANY OTHER ACCOUNT WITH- IN THE FUND. A. THE "HEALTH CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE, AND ALL OTHER MONEYS CREDITED OR TRANS- FERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE SUPPORT OF SERVICES RELATING TO PRIMARY, PREVENTIVE, AND INPATIENT HEALTH CARE, ROUTINE DENTAL AND VISION CARE, HUNGER PREVENTION AND NUTRITIONAL ASSISTANCE, AND OTHER SERVICES PROVIDED TO NEW YORK STATE RESIDENTS WITH THE OVERALL GOAL OF ENSURING THAT NEW YORK STATE RESIDENTS HAVE ACCESS TO QUALITY HEALTH CARE AND OTHER RELATED SERVICES. B. THE "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE FOR THE SUPPORT OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE STATE AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE PROVISION OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE STATE. § 2. Section 606 of the tax law is amended by adding a new subsection (iii) to read as follows: (III) CREDIT FOR CONTRIBUTIONS TO CERTAIN FUNDS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN INDIVID- UAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER THIS ARTICLE FOR AN AMOUNT EQUAL TO EIGHTY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY THE TAXPAYER DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW: THE HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTA- S. 7509--A 78 A. 9509--A RY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW. § 3. Section 1604 of the education law is amended by adding a new subdivision 44 to read as follows: 44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES, TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE TRUSTEES, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 4. Section 1709 of the education law is amended by adding a new subdivision 12-b to read as follows: 12-B. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE BOARD, TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE BOARD, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 5. Section 2590-h of the education law is amended by adding a new subdivision 54 to read as follows: 54. TO ESTABLISH A CHARITABLE FUND TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE CITY SCHOOL DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICI- PAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE CHANCELLOR, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE CITY SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE CITY FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE CITY SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOS- ITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 6. The general municipal law is amended by adding two new sections 6-t and 6-u to read as follows: S. 7509--A 79 A. 9509--A § 6-T. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY COUNTY OR NEW YORK CITY MAY ESTABLISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND, THE MONEYS OF WHICH ARE TO BE USED FOR THE PAYMENT OF HEALTH CARE EXPENSES AND MAY BE USED TO DEFRAY THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSISTANCE EXPENDITURES. 2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS OF THE COUNTY OR NEW YORK CITY. 3. THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH COUNTY, OR NEW YORK CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE COUNTY OR NEW YORK CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, SHALL TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION FOR THE PURPOSE OF PAYING HEALTH CARE EXPENSES, INCLUDING THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSIST- ANCE EXPENDITURES. 5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS OF THE COUNTY OR NEW YORK CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. 6. NOTHING IN THIS SECTION SHALL RELIEVE THE LOCAL SOCIAL SERVICES DISTRICT OF ITS ONGOING OBLIGATION TO PAY THE YEARLY NET SHARE OF MEDICAL ASSISTANCE EXPENDITURES, NOR RELIEVE A LOCAL DISTRICT OF SOCIAL SERVICES OF ITS STATUTORY AND REGULATORY FUNCTIONS IN THE ADMINIS- TRATION, SUPERVISION AND OPERATION OF THE MEDICAL ASSISTANCE PROGRAM IN ITS LOCALITY. § 6-U. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY CITY WITH A POPULATION LESS THAN ONE MILLION, TOWN OR VILLAGE MAY ESTAB- LISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND. 2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS OF THE TOWN, VILLAGE OR CITY. 3. THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH TOWN, VILLAGE OR CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE TOWN, VILLAGE OR CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, MAY TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES. 5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS OF THE TOWN, VILLAGE OR CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. S. 7509--A 80 A. 9509--A § 7. The real property tax law is amended by adding a new section 980-a to read as follows: § 980-A. TAX CREDITS FOR CONTRIBUTIONS TO CERTAIN FUNDS. 1. (A) A MUNICIPAL CORPORATION THAT HAS ESTABLISHED A FUND PURSUANT TO SUBDIVI- SION FORTY-FOUR OF SECTION SIXTEEN HUNDRED FOUR OF THE EDUCATION LAW, SUBDIVISION TWELVE-B OF SECTION SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW, SUBDIVISION FIFTY-FOUR OF SECTION TWENTY-FIVE HUNDRED NINETY-H OF THE EDUCATION LAW, OR SECTION SIX-T OR SIX-U OF THE GENERAL MUNICIPAL LAW, MAY ADOPT A LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, A RESOLUTION, AUTHORIZING A TAX CREDIT TO BE PROVIDED PURSUANT TO THIS SECTION FOR CONTRIBUTIONS TO SUCH FUND. FOR PURPOSES OF THIS SECTION, A MUNICIPAL CORPORATION THAT HAS ESTABLISHED SUCH A FUND AND AUTHORIZED SUCH A CREDIT SHALL BE REFERRED TO AS A "PARTICIPATING" MUNICIPAL CORPO- RATION. (B) ON AND AFTER DECEMBER FIRST, TWO THOUSAND EIGHTEEN, THE OWNER OR OWNERS OF REAL PROPERTY SHALL BE ALLOWED A CREDIT AGAINST THE REAL PROP- ERTY TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED UPON SUCH PROPERTY. THE AMOUNT OF SUCH CREDIT SHALL EQUAL NINE- TY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY ONE OR MORE OF THE OWNERS OF SUCH PROPERTY DURING THE "ASSOCIATED CREDIT YEAR" AS DEFINED IN THIS SECTION, TO ANY OR ALL OF THE FUNDS ESTABLISHED BY SUCH MUNICIPAL CORPO- RATION, SUBJECT TO THE LIMIT ESTABLISHED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, IF ANY. (C) THE PARTICIPATING MUNICIPAL CORPORATION MAY ESTABLISH A LIMIT UPON THE AMOUNT OF SUCH CREDIT TO BE ALLOWED IN ANY GIVEN FISCAL YEAR, IN WHICH CASE THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED THE LIMIT SO ESTABLISHED. ANY SUCH LIMIT SHALL BE ADOPTED BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, WHICH LOCAL LAW OR RESOLUTION MAY EITHER BE THE SAME AS OR SEPARATE FROM THE LOCAL LAW OR RESOLUTION THAT INITIALLY AUTHORIZED THE CREDIT. ONCE SUCH A LIMIT HAS BEEN ADOPTED, IT MAY BE AMENDED OR REPEALED THEREAFTER BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, PROVIDED THAT ANY SUCH AMENDMENT OR REPEAL SHALL ONLY APPLY TO TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION FOR FISCAL YEARS COMMENCING AFTER THE ADOPTION OF SUCH LOCAL LAW OR RESOLUTION. A COPY OF ANY LOCAL LAW OR RESOLUTION ESTABLISHING, AMENDING OR REPEALING SUCH A LIMIT SHALL BE PROVIDED TO THE COLLECTING OFFICER WHO COLLECTS THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION. 2. FOR PURPOSES OF THIS SECTION, THE "ASSOCIATED CREDIT YEAR" SHALL BE THE TWELVE-MONTH PERIOD DURING WHICH THE OWNER OF THE PROPERTY HAS MADE A CONTRIBUTION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION THAT ENDS ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION MAY BE PAID WITHOUT INTEREST OR PENALTIES, SUBJECT TO THE FOLLOWING: (A) WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (B) WHERE A PARTICIPATING MUNICIPAL CORPORATION IS A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH CITY TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES, OR IF APPLICABLE, ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (C) EACH SUCH TWELVE-MONTH PERIOD SHALL BE DETERMINED WITHOUT REGARD TO THE POSSIBILITY THAT THE PERIOD PRESCRIBED BY LAW FOR PAYING SUCH TAXES WITHOUT INTEREST OR PENALTIES MAY BE EXTENDED DUE TO A DELAY IN S. 7509--A 81 A. 9509--A THE FIRST PUBLICATION OF THE COLLECTING OFFICER'S NOTICE AS PROVIDED BY SECTIONS THIRTEEN HUNDRED TWENTY-TWO OR THIRTEEN HUNDRED TWENTY-FOUR OF THIS CHAPTER OR A COMPARABLE LAW, OR DUE TO AN EXECUTIVE ORDER ISSUED IN CONNECTION WITH A STATE DISASTER EMERGENCY AS PROVIDED BY SUBDIVISION TWO OF SECTION NINE HUNDRED TWENTY-FIVE-A OF THIS CHAPTER. 3. THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE ADMINISTERED AS FOLLOWS: (A) THE ADMINISTRATOR OF THE ACCOUNT OR ITS DESIGNATED AGENT SHALL, UPON RECEIVING A CONTRIBUTION TO AN ACCOUNT SPECIFIED IN SUBDIVISION ONE OF THIS SECTION DURING A CREDIT YEAR, FURNISH THE PROPERTY OWNER WITH AN ACKNOWLEDGEMENT IN DUPLICATE. SUCH ACKNOWLEDGEMENT SHALL BE PROVIDED ON A FORM PRESCRIBED BY THE COMMISSIONER AND SHALL SPECIFY THE AMOUNT OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE DONOR, THE DATE THE CONTRIBUTION WAS RECEIVED, THE AUTHORIZED SIGNATURE OF THE ADMINISTRATOR OR AGENT, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. (B) AFTER RECEIVING SUCH AN ACKNOWLEDGEMENT, THE PROPERTY OWNER MAY PRESENT IT TO THE APPROPRIATE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTY, TOGETHER WITH A CREDIT CLAIM ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH CREDIT CLAIM FORM SHALL CONTAIN THE NAME OF THE PROPERTY OWNER OR OWNERS, THE DATE AND AMOUNT OF THE CONTRIBUTIONS MADE TO THE ACCOUNT DURING THE ASSOCIATED CREDIT YEAR, THE ADDRESS OF THE PROPERTY TO WHICH THE CREDIT CLAIM RELATES, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COLLECTING OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A TAX CREDIT EQUAL TO NINETY- FIVE PERCENT OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING THE ASSOCI- ATED CREDIT YEAR AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE THE TAX LIABILITY ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT MAY NOT EXCEED THE LIMIT ESTABLISHED BY THE PARTICIPATING MUNICIPAL CORPO- RATION PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF SUCH A LIMIT HAS BEEN ESTABLISHED. WHERE TAXES ARE PAYABLE IN INSTALL- MENTS, IF THE CREDIT EXCEEDS THE AMOUNT OF THE FIRST INSTALLMENT, THE EXCESS SHALL BE APPLIED TO FUTURE INSTALLMENTS UNTIL EXHAUSTED. (C) IF THE PROPERTY OWNER FAILS TO PRESENT THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM TO THE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR PENAL- TY, HE OR SHE MAY PRESENT THE SAME TO THE CHIEF FISCAL OFFICER OR CHIEF FINANCIAL OFFICER OF THE PARTICIPATING MUNICIPAL CORPORATION, OR TO A MEMBER OF HIS OR HER STAFF. SUCH OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A REFUND OF SCHOOL DISTRICT TAXES IN THE AMOUNT OF THE CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINE- TY-FIVE PERCENT OF THE TOTAL CONTRIBUTIONS MADE DURING THE ASSOCIATED CREDIT YEAR, PROVIDED THAT SUCH REFUND SHALL NOT EXCEED THE SCHOOL DISTRICT TAXES THAT HAVE BEEN PAID ON THE PROPERTY OR THE LIMIT ESTAB- LISHED PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF ANY. PROVIDED FURTHER, THAT NO INTEREST SHALL BE PAYABLE ON SUCH REFUND IF PAID WITHIN FORTY-FIVE DAYS OF THE RECEIPT OF THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM. THE OWNER OF THE PROPERTY MAY FILE SUCH REFUND CLAIM WITH THE AUTHORIZED OFFICER AT ANY TIME DURING THE THREE YEAR PERIOD BEGINNING IMMEDIATELY AFTER THE LAST DAY SUCH TAXES WERE PAYABLE WITHOUT INTEREST OR PENALTY. 4. THE AMOUNT OF THE ITEMIZED DEDUCTION THAT MAY BE CLAIMED BY A TAXPAYER UNDER SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW WITH RESPECT TO THE TAXES PAID ON SUCH PROPERTY MAY NOT EXCEED THE AMOUNT OF THE TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED S. 7509--A 82 A. 9509--A UPON SUCH PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION. § 8. This act shall take effect immediately; provided, however, that the amendments to section 2590-h of the education law made by section five of this act shall not affect the expiration and reversion of such section and shall expire and be deemed repealed therewith; and provided further that if section 2590-h of the education law expires or is repealed and is reverted prior to the effective date of this act, section five of this act shall not take effect. PART MM Section 1. The tax law is amended by adding a new article 24 to read as follows: ARTICLE 24 EMPLOYER COMPENSATION EXPENSE TAX SECTION 850. DEFINITIONS. 851. EMPLOYER ELECTION. 852. IMPOSITION AND RATE OF TAX. 853. PASS THROUGH OF TAX. 854. PAYMENT OF TAX. 855. EMPLOYEE CREDIT. 856. DEPOSIT AND DISPOSITION OF REVENUE. 857. PROCEDURAL PROVISIONS. § 850. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) EMPLOYER. EMPLOYER MEANS AN EMPLOYER THAT IS REQUIRED BY SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER TO DEDUCT AND WITHHOLD TAX FROM WAGES. (B) ELECTING EMPLOYER. ELECTING EMPLOYER IS AN EMPLOYER THAT HAS MADE THE ELECTION PROVIDED FOR IN SECTION EIGHT HUNDRED FIFTY-ONE OF THIS ARTICLE. (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND COMPENSATION AS DEFINED IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO ALL COVERED EMPLOYEES. (D) COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE OF AN ELECT- ING EMPLOYER WHO IS REQUIRED TO HAVE AMOUNTS WITHHELD UNDER SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER AND RECEIVES ANNUAL WAGES AND COMPENSATION FROM HIS OR HER EMPLOYER OF MORE THAN FORTY THOUSAND DOLLARS ANNUALLY. § 851. EMPLOYER ELECTION. (A) ANY EMPLOYER WHO EMPLOYS COVERED EMPLOY- EES IN THE STATE SHALL BE ALLOWED TO MAKE AN ELECTION TO BE TAXED UNDER THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ELECTION MUST BE MADE BY (1) UNANI- MOUS CONSENT OF ALL OWNERS OF THE EMPLOYER AT THE TIME THE ELECTION IS MADE IF THE EMPLOYER IS NOT A CORPORATION; OR (2) IF THE EMPLOYER IS A FOR-PROFIT OR NOT-FOR-PROFIT CORPORATION, BY ANY OFFICER OR MANAGER OF THE EMPLOYER WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE EMPLOYER'S ORGANIZATIONAL DOCU- MENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORI- ZATION UNDER PENALTY OF PERJURY; OR (3) IF THE EMPLOYER IS A TRUST, BY THE UNANIMOUS CONSENT OF ALL TRUSTEES; OR (4) IF THE EMPLOYER IS A GOVERNMENTAL ENTITY, BY THE CHIEF EXECUTIVE OFFICER OF SUCH GOVERNMENTAL ENTITY. (C) THE ELECTION MUST BE MADE BY OCTOBER FIRST OF A CALENDAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEEDING CALENDAR YEAR. IF AN S. 7509--A 83 A. 9509--A ELECTION IS MADE AFTER OCTOBER FIRST OF A CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALENDAR YEAR. § 852. IMPOSITION AND RATE OF TAX. A TAX IS HEREBY IMPOSED ON THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES. FOR TWO THOUSAND NINETEEN, THE TAX SHALL BE EQUAL TO ONE AND ONE-HALF PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWENTY, THE TAX SHALL BE EQUAL TO THREE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWEN- TY-ONE AND THEREAFTER, THE TAX SHALL BE EQUAL TO FIVE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. AN ELECTING EMPLOYER SHALL ONLY BE SUBJECT TO THE TAX IMPOSED UNDER THIS ARTICLE ON THE PAYROLL EXPENSE PAID TO ANY COVERED EMPLOYEE DURING THE CALENDAR YEAR IN EXCESS OF FORTY THOUSAND DOLLARS. § 853. PASS THROUGH OF TAX. AN EMPLOYER CANNOT DEDUCT FROM THE WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE. § 854. PAYMENT OF TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX IMPOSED ON THE PAYROLL EXPENSE OF ELECTING EMPLOYERS UNDER SECTION EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE MUST BE PAID AT THE SAME TIME THE ELECTING EMPLOYER IS REQUIRED TO REMIT PAYMENTS UNDER SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER; PROVIDED HOWEVER, THAT ELECTING EMPLOYERS SUBJECT TO THE PROVISIONS IN SECTION NINE OF THIS CHAPTER MUST PAY THE TAX ON THE PAYROLL EXPENSE AT THE SAME TIME AS THE WITHHOLDING TAX REMITTED UNDER THE ELECTRONIC PAYMENT REPORTING SYSTEM AND THE ELEC- TRONIC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER. (B) RESPONSIBLE PERSON LIABILITY. ANY OFFICER, DIRECTOR OR EMPLOYEE OF A CORPORATION OR OF A DISSOLVED CORPORATION, ANY EMPLOYEE OF A PARTNER- SHIP, ANY EMPLOYEE OR MANAGER OF A LIMITED LIABILITY COMPANY, ANY TRUS- TEE OF A TRUST, OR ANY EMPLOYEE OF AN INDIVIDUAL PROPRIETORSHIP, ANY PARTNER OF A PARTNERSHIP OR ANY MEMBER OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, DIRECTOR, EMPLOYEE, MANAGER, PARTNER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE ELECTING EMPLOYER FOR ANY TAX, PENALTY OR INTEREST OWED UNDER THIS ARTICLE. § 855. EMPLOYEE CREDIT. A COVERED EMPLOYEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (AAAA) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 856. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. § 857. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE UNDER THIS ARTICLE. S. 7509--A 84 A. 9509--A (B) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER, IF THE COMMISSIONER DETERMINES THAT A PERSON IS LIABLE FOR ANY TAX, PENALTY OR INTEREST UNDER THIS ARTICLE PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS ARTICLE, UPON REQUEST IN WRITING OF SUCH PERSON, THE COMMISSIONER SHALL DISCLOSE IN WRITING TO SUCH PERSON (1) THE NAME OF ANY OTHER PERSON THE COMMISSIONER HAS DETERMINED TO BE LIABLE FOR SUCH TAX, PENALTY OR INTEREST UNDER THIS ARTICLE FOR THE ELECTING EMPLOYER, AND (2) WHETHER THE COMMISSIONER HAS ATTEMPTED TO COLLECT SUCH TAX, PENALTY OR INTEREST FROM SUCH OTHER PERSON OR ELECTING EMPLOYER, THE GENERAL NATURE OF SUCH COLLECTION ACTIVITIES, AND THE AMOUNT COLLECTED. (C) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FILINGS OF FORMS OR RETURNS UNDER THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. THE COMMISSIONER MAY PRESCRIBE THE METHODS FOR QUARTERLY FILINGS BY ELECTING EMPLOYERS, INCLUDING BUT NOT LIMITED TO, THE INCLU- SION OF SPECIFIC EMPLOYEE-LEVEL DETAIL. § 2. Section 606 of the tax law is amended by adding a new subsection (aaaa) to read as follows: (AAAA) ARTICLE TWENTY-FOUR EMPLOYEE CREDIT. A COVERED EMPLOYEE OF AN ELECTING EMPLOYER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION THE TERMS "COVERED EMPLOYEE" AND "ELECTING EMPLOYER" SHALL HAVE THE SAME MEANINGS AS UNDER SECTION EIGHT HUNDRED FIFTY OF THIS CHAPTER. (1) FOR TWO THOUSAND NINETEEN, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) ONE AND ONE-HALF PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (2) FOR TWO THOUSAND TWENTY, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) THREE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (3) FOR TWO THOUSAND TWENTY-ONE AND THERE- AFTER, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) FIVE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. IF THE AMOUNT OF THE 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 S. 7509--A 85 A. 9509--A YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 3. 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-FOUR, 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 taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- S. 7509--A 86 A. 9509--A ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 4. 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-FOUR, 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 S. 7509--A 87 A. 9509--A 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 taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated S. 7509--A 88 A. 9509--A spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, subdivision 2 as amended by section 30 of part T of chapter 57 of the laws of 2007, and subdivision 3 and para- graph (a) of subdivision 5 as added by section 1 of part I of chapter 383 of the laws of 2001, are amended to read as follows: 2. Such fund shall consist of [twenty-five] (A) FIFTY percent of receipts from the imposition of personal income taxes pursuant to arti- cle twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, AND (B) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF EMPLOYER COMPENSATION EXPENSE TAXES PURSUANT TO ARTICLE TWENTY-FOUR OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSIONER OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (A) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in PARAGRAPH (A) OF subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (B) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIF- ICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDITION, NO LATER THAN MARCH THIRTY- FIRST OF EACH FISCAL YEAR THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last S. 7509--A 89 A. 9509--A month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law AND SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW shall be deposited in the reven- ue bond tax fund until the greater of [twenty-five] FORTY percent of the AGGREGATE OF THE receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law AND (B) THE EMPLOYER COMPENSATION EXPENSE TAX IMPOSED BY ARTICLE TWENTY-FOUR OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or [six] A TOTAL OF TWELVE billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropriated and paid to the author- ized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certif- icate or certificates submitted by the director of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the S. 7509--A 90 A. 9509--A cash requirements of authorized issuers during the subsequent fiscal year. § 6. Subdivision 5 of section 68-c of the state finance law, as added by section 2 of part I of chapter 383 of the laws of 2001, is amended to read as follows: 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. § 7. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 171-a of the tax law made by section three of this act shall not affect the expiration of such subdi- vision and shall expire therewith, when upon such date the provisions of section four of this act shall take effect. § 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. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Parts A through MM of this act shall be as specifically set forth in the last section of such Parts.
2017-S7509B - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7509--B I N S E N A T E January 18, 2018 ___________ A BUDGET BILL, submitted by the Governor pursuant to article 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 AN ACT intentionally omitted (Part A); intentionally omitted (Part B); intentionally omitted (Part C); intentionally omitted (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); intentionally omitted (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real prop- erty tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assess- ing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); intentionally omitted (Part L); intentionally omitted (Part M); intentionally omitted (Part N); intentionally omit- ted (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); intentionally omitted (Part S); intentionally omitted (Part T); intentionally omitted (Part U); inten- tionally omitted (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medi-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-06-8 S. 7509--B 2 cines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); intentionally omitted (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relat- ing to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); 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 breeding law and other laws relating to simulcasting and 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 provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); intentionally omitted (Part HH); to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administra- tive code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law and the administrative code of the city of New York, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code (Part KK); intentionally omitted (Part LL); intentionally omitted (Part MM); to amend the real property tax law, in relation to establishing the senior capped real property school tax rate; and to amend the tax law, in relation to increasing the property tax relief credit (Part NN); to amend chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local govern- ment tax levies, in relation to eliminating the expiration of and making permanent certain provisions thereof (Part OO); to amend the tax law, in relation to tax on the furnishing of utility services (Part PP); to amend the public service law, in relation to certain costs and expenses (Part QQ); to amend the tax law, in relation to increasing the exemption for pensions and annuities for certain persons (Part RR); to amend the legislative law, in relation to requiring assent of two-thirds of the members for any bill that enacts or increases tax revenues (Part SS); to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund (Part TT); to amend the tax law, in relation to establishing a credit for customers of certain private S. 7509--B 3 water utilities, in relation to requiring a feasibility study relating to the Jericho Water District; and providing for the repeal of such provisions upon the expiration thereof (Part UU); to amend the tax law and the administrative code of the city of New York, in relation to business income base and certain small business taxpayers (Part VV); to amend the real property tax law, in relation to the STAR exemption for property owned by small businesses (Part WW); to amend the tax law, in relation to minimum wage reimbursement credit (Part XX); to amend the tax law, in relation to extending the minimum wage reimbursement credit to seasonal employees (Part YY); to amend the tax law, in relation to tax credits for qualified pass-through manufactur- ers (Part ZZ); to amend the real property tax law, in relation to providing an exemption for security cameras installed on real property owned by a public utility (Part AAA); to amend the tax law, in relation to providing an exemption for tangible personal property and services sold by a cemetery; in relation to establishing an amnesty program for cemetery corporations (Part BBB); to amend the tax law and the parks, recreation and historic preservation law, in relation to the tax credit for rehabilitation of historic properties (Part CCC); to amend the tax law, in relation to establishing a personal income tax credit to preceptor clinicians who provide preceptor instruction (Part DDD); to amend the tax law, in relation to a television writers' and directors' fees and salaries credit (Part EEE); to amend the tax law and the administrative code of the city of New York, in relation to making technical corrections thereto; to repeal subsection (i) of section 612 of the tax law relating to the elimination of the personal income tax deduction for percentage depletion; and to repeal certain provisions of the tax law relating thereto (Part FFF); to amend the tax law, in relation to the donation of a human organ (Part GGG); to amend the tax law, in relation to the musical and theatrical production credit; and to amend part HH of chapter 59 of the laws of 2014 amending the tax law relating to a musical and theatrical production credit, in relation to extending the effectiveness of such provisions (Part HHH); to amend the education law and the tax law, in relation to establishing the college debt freedom account pilot program (Part III); to amend the tax law, in relation to establishing a reduction of certain taxpayer's federal adjusted gross income, for state personal income tax purposes, for student loan interest payments made by the taxpayer (Part JJJ); to amend the tax law, in relation to establishing a residential fuel oil storage tank credit and to direct the office of temporary and disability assistance to establish a program to assist eligible households in the replacement of residen- tial fuel oil storage tanks (Part KKK); to amend the tax law and the insurance law, in relation to credits for premiums paid for long-term care insurance policies (Part LLL); to amend the tax law, in relation to providing insurance corporations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund (Part MMM); to amend the tax law, in relation to exempting school buses and certain equipment from sales and compensating use tax; and to amend the education law, in relation to the extension of certain transportation contracts (Part NNN); to amend the tax law and the education law, in relation to enacting the "education affordabili- ty act" (Part OOO); to amend the racing, pari-mutuel wagering and breeding law, in relation to the definition and licensing fees for dealer-controlled electronic table games (Part PPP); to amend the tax S. 7509--B 4 law, in relation to the percentage of free play allowance credits (Part QQQ); to amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games (Part RRR); to amend the general municipal law, in relation to participation in games of bingo by minors (Part SSS); to amend the tax law, in relation to the disposition of vender fees for the operation of video lottery gaming at certain race tracks (Part TTT); to amend the racing, pari-mutuel wagering and breeding law, in relation to the disposition of net revenues of regional off-track betting corporations to participating counties (Part UUU); to amend the racing, pari-mutuel wagering and breeding law, in relation to creating the racing fan advisory council (Part VVV); to amend the racing, pari-mutuel wagering and breeding law, in relation to establishing the advisory council on retired race horses, within the New York state gaming commission, and providing for its powers and duties (Part WWW); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports betting (Part XXX); to amend the racing, pari-mutuel wagering and breeding law, in relation to funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage (Part YYY); to amend the tax law, in relation to exempting coin-operated tire inflation equipment from sales and use taxes (Part ZZZ); to amend the real property tax law, in relation to extending certain provisions exempting lands devoted to agricultural or horticultural use from taxation (Part AAAA); to amend the education law and the tax law, in relation to expanding the New York state college choice tuition savings program to include costs of elementary and secondary education (Part BBBB); to amend the tax law, in relation to the imposition of tax on combative sport matches or exhibitions (Part CCCC); to amend the tax law, in relation to gifts for the New York state general fund (Part DDDD); to amend the tax law and the economic development law, in relation to the creation of the empire state digital gaming media production credit; and providing for the repeal of such provisions upon expiration thereof (Part EEEE); to amend the civil practice law and rules, in relation to enacting the "local government jobs and revenue protection act of 2018" (Part FFFF); and to amend the tax law, in relation to the disposition of a portion of sales taxes collected for hotel occupancy in cities having a population of one million or more (Part GGGG) 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 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through GGGG. 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 S. 7509--B 5 Intentionally Omitted PART B Intentionally Omitted PART C Intentionally Omitted PART D Intentionally Omitted PART E Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. S. 7509--B 6 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509--B 7 (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 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: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit S. 7509--B 8 program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Intentionally Omitted PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE S. 7509--B 9 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. S. 7509--B 10 PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful S. 7509--B 11 neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- S. 7509--B 12 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Intentionally Omitted PART M Intentionally Omitted PART N Intentionally Omitted PART O Intentionally Omitted PART P Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. S. 7509--B 13 § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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; S. 7509--B 14 (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; 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. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, 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 [nineteen] TWENTY-ONE, 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 [eighteen] TWENTY; 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. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) 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: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified S. 7509--B 15 employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- S. 7509--B 16 sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: S. 7509--B 17 (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- S. 7509--B 18 fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of S. 7509--B 19 section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 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) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may 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. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional S. 7509--B 20 [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- S. 7509--B 21 FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may 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 liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Intentionally Omitted PART T S. 7509--B 22 Intentionally Omitted PART U Intentionally Omitted PART V Intentionally Omitted PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- S. 7509--B 23 ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of S. 7509--B 24 the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A S. 7509--B 25 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y S. 7509--B 26 Intentionally Omitted PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section S. 7509--B 27 shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Intentionally Omitted PART EE Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, S. 7509--B 28 each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] THREE HUNDRED SIXTY-FIVE days of oper- ating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] THREE HUNDRED SIXTY-FIVE. § 2. Section 203 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: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance S. 7509--B 29 of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. At a minimum, the advisory committee established pursuant to this section shall include among its membership: the presi- dent or executive director of a horsemen's organization representing at least fifty-one percent of the owners and trainers utilizing the facili- ties of the franchised corporation; the president or executive director of the statewide thoroughbred breeders association representing the majority of breeders of registered thoroughbreds in New York state; the president or executive director of a horsemen's organization represent- ing at least fifty-one percent of the owners and trainers utilizing a facility licensed to conduct racing pursuant to article three of the racing, pari-mutuel wagering and breeding law; the president or execu- tive director of the statewide Standardbred breeders association repres- enting the majority of breeders of registered Standardbreds in New York state; a representative of the franchised corporation established pursu- ant to section two hundred six of the racing, pari-mutuel wagering and breeding law; a representative of a corporation licensed to conduct racing pursuant to article two of the racing, pari-mutuel wagering and breeding law that is not a franchised corporation; two representatives from separate corporations licensed to conduct racing pursuant to arti- cle three of the racing, pari-mutuel wagering and breeding law; and a representative from a state college within this state with an approved equine science program. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by December 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate 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 FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY S. 7509--B 30 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN; 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 S. 7509--B 31 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 [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, 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. § 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN 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 [eighteen] NINETEEN. 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: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 S. 7509--B 32 of part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN. 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: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, 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. § 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 OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. § 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 S. 7509--B 33 8 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 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, [2018] 2019; 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. § 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 OO of chapter 59 of the laws of 2017, 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 S. 7509--B 34 through December thirty-first, two thousand [eighteen] NINETEEN, 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 [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Intentionally Omitted PART II Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; S. 7509--B 35 (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE ADDITIONAL COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8), SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL HOLD HARMLESS COMMIS- SION. THE ADDITIONAL HOLD HARMLESS COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE ADDITIONAL HOLD HARMLESS COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR COMMISSION LESS THE CURRENT VENDOR FEE. THE BASE VENDOR COMMISSION IS CALCULATED BY ADDING TOGETHER THE VENDOR FEE, MARKETING ALLOWANCE, AND VENDOR CAPITAL AWARD, THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING JUNE FIRST, TWO THOUSAND FIFTEEN. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. (II) THE ADDITIONAL HOLD HARMLESS COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL HOLD HARMLESS COMMIS- SION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN AT A VENDOR TRACK WHILE THE NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) WITHIN FORTY MILES OF THAT VENDOR TRACK IS OPEN AND OPERATING. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE S. 7509--B 36 INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE S. 7509--B 37 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (J) NOTWITHSTANDING CLAUSE (G) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (G) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (J) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. PART JJ Section 1. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 2. Section 612 of the tax law is amended by adding two new subsections (w) and (x) to read as follows: (W) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND S. 7509--B 38 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 3. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, he OR SHE may elect to deduct his OR HER New York itemized deduction [in lieu of] OR CLAIM his OR HER New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than feder- al deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subsections (f) and (g) of this section. § 4. Subdivision (a) of section 11-1714 of the administrative code of the city of New York, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the city standard deduction of a city resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 5. Section 11-1712 of the administrative code of the city of New York is amended by adding two new subdivisions (u) and (v) to read as follows: (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. S. 7509--B 39 (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 6. Subdivision (a) of section 11-1715 of the administrative code of the city of New York, as amended by section 5 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a city resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, such resident individual may elect to deduct his OR HER city itemized deduction [in lieu of] OR CLAIM his OR HER city standard deduction. The city itemized deduction of a city resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subdivi- sions (f) and (g) of this section. § 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART KK Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax law, as amended by section 5-a of part T of chapter 59 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT TO ANY INCOME DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF S. 7509--B 40 THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, LESS, AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVEN- UE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, in the discretion of the commissioner, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in para- graph (b) of subdivision six of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 1-a. Paragraph (b) of subdivision 5-a 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, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT TO ANY INCOME DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section nine hundred fifty-one of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, (II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVENUE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (IV) in the discretion of the commissioner of finance, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of S. 7509--B 41 this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (6) any amount treated as dividends pursuant to section seventy-eight of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SUBPARAGRAPH (B)(II) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 250 OF SUCH CODE; § 2-a. Subparagraph 2-a of paragraph (a) 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, is amended to read as follows: (2-a) any amounts treated as dividends pursuant to section seventy- eight of the internal revenue code, TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SUBPARAGRAPH (B)(II) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF SUCH CODE; § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding four new subparagraphs 23, 24, 25, and 26 to read as follow: (23) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. (24) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA- GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE INTERNAL REVENUE CODE. (25) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. (26) ANY AMOUNT DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. § 3-a. Subparagraph 19 of paragraph (b) 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, is amended and four new subparagraphs 20, 21, 22, and 23 are added to read as follows: (19) the amount of any federal deduction for taxes imposed under arti- cle twenty-three of the tax law[.]; (20) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE; (21) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA- GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE INTERNAL REVENUE CODE; (22) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE; (23) ANY AMOUNT DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 13-a of part Q of chapter 60 of the laws of 2016, 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 S. 7509--B 42 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] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI- RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE. 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 install- ment 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 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 otherwise due on or after the termination of existence of the taxpayer. § 4-a. Subdivision 3 of section 11-676 of the administrative code of the city of new York, as amended by section 12 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 3. Failure to file declaration or underpayment of estimated tax. If any taxpayer fails to file a declaration of estimated tax under subchap- ter two, three or three-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such esti- mated 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 underpayment rate set by the commissioner of finance pursuant to section 11-687 of this subchapter, 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] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of the preceding year's tax, the excess of the amount required S. 7509--B 43 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 percent of the tax shown on the return for the taxable year (or if no return was filed, ninety 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 percent" each place it appears in this subdivision, 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 otherwise due on or after the termination of existence of the taxpayer. § 4-b. Subparagraph 11 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended and a new paragraph (u) is added to read as follows: (11) the amount deductible pursuant to [paragraph] PARAGRAPHS (j) AND (U) of this subdivision; and (U) A TAXPAYER SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY THE TAXPAYER THAT IS DISALLOWED AS A DEDUCTION UNDER SUBSECTION (R) OF SECTION 162 OF THE INTERNAL REVENUE CODE. § 4-c. Subparagraph 10 of paragraph (a) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as amended by section 1 of part D of chapter 60 of the laws of 2015, is amended and a new paragraph (u) is added to read as follows: (10) the amount deductible pursuant to [paragraph] PARAGRAPHS (j) AND (U) of this subdivision; (U) A TAXPAYER SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY THE TAXPAYER THAT IS DISALLOWED AS A DEDUCTION UNDER SUBSECTION (R) OF SECTION 162 OF THE INTERNAL REVENUE CODE. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART LL Intentionally omitted PART MM Intentionally omitted PART NN Section 1. The real property tax law is amended by adding a new section 431 to read as follows: § 431. SENIOR CAPPED REAL PROPERTY SCHOOL TAX RATE. 1. (A) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SEVENTY YEARS OF AGE OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN TAXABLE YEAR TWO THOUSAND NINETEEN AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, OR RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SEVENTY YEARS OF AGE OR S. 7509--B 44 OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A RESOLUTION PROVIDING THEREFOR. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE IN CALENDAR YEAR TWO THOUSAND EIGHTEEN. (B) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN TAX YEAR TWO THOUSAND TWENTY AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, OR RESIDEN- TIAL REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A RESOLUTION PROVIDING THEREFOR. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON THE TAXABLE STATUS DATE SUBSEQUENT TO THE TAXABLE STATUS DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS. 2. ANY PERSON ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE. SUCH APPLICATION SHALL BE MADE IN A MANNER AND FORM DETERMINED BY THE STATE BOARD AND SHALL REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION SHALL BE FILED WITH THE LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR SUCH DISTRICT. 3. BEGINNING IN THE SECOND YEAR OF QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION, THE RATE OF TAX OWED BY A PERSON OWNING REAL PROPERTY IN YEAR ONE OF QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE WOULD BE REDUCED BY THE FOLLOWING SCHEDULE: YEAR TWO: TEN PERCENT YEAR THREE: TWENTY PERCENT YEAR FOUR: THIRTY PERCENT YEAR FIVE: FORTY PERCENT YEAR SIX: FIFTY PERCENT YEAR SEVEN: SIXTY PERCENT YEAR EIGHT: SEVENTY PERCENT YEAR NINE: EIGHTY PERCENT YEAR TEN: NINETY PERCENT YEAR ELEVEN AND THEREAFTER: ONE HUNDRED PERCENT 4. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE NOTIFIED, EACH PERSON OWNING RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT OF THE PROVISIONS OF THIS SECTION. THE PROVISIONS OF THIS SUBDIVISION MAY BE MET BY A NOTICE SENT TO SUCH PERSONS IN SUBSTANTIALLY THE FOLLOWING FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE. TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST FILE AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA- BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION, PLEASE CONTACT YOUR LOCAL ASSESSOR." 5. A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX RATE FOR PERSONS SIXTY-FIVE YEARS OF AGE OR OVER PURSUANT TO THIS S. 7509--B 45 SECTION SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA- TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, FOR ONE HUNDRED PERCENT OF THE DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING FROM THE IMPLEMENTATION OF THIS SECTION. SUCH DIRECT COST SHALL BE CALCULATED PURSUANT TO REGU- LATIONS OF THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE. A CLAIM FOR SUCH REIMBURSEMENT SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY THE COMMISSIONER OF EDUCATION. § 2. Paragraph 3 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 as follows: (3) Amount of credit. (a) For the two thousand sixteen taxable year (i) for a taxpayer residing in real property located within the metro- politan commuter transportation district (MCTD) and outside the city of New York, the amount of the credit shall be $130; (ii) for a taxpayer residing in real property located outside the MCTD, the amount of the credit shall be $185. (b) For the two thousand seventeen, two thousand eighteen and two thousand nineteen taxable years (i) For a taxpayer who owned and prima- rily resided in real property receiving the basic STAR exemption, the amount of the credit shall equal the STAR tax savings associated with such basic STAR exemption, multiplied by the following percentage: (A) for the two thousand seventeen taxable year: Qualified Gross Income Percentage Not over $75,000 28% Over $75,000 but not over $150,000 20.5% Over $150,000 but not over $200,000 13% Over $200,000 but not over $275,000 5.5% Over $275,000 No credit (B) for the two thousand eighteen taxable year: Qualified Gross Income Percentage Not over $75,000 60% Over $75,000 but not over $150,000 42.5% Over $150,000 but not over $200,000 25% Over $200,000 but not over $275,000 7.5% Over $275,000 No credit (C) for the two thousand nineteen taxable year AND THEREAFTER: Qualified Gross Income Percentage Not over $75,000 [85%] 100% Over $75,000 but not over $150,000 [60%] 75% Over $150,000 but not over $200,000 [35%] 43.75% Over $200,000 but not over $275,000 [10%] 12.5% Over $275,000 No credit (c) For a taxpayer who owned and primarily resided in real property receiving the enhanced STAR exemption, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption, multiplied by the following percentage: Taxable Year Percentage two thousand seventeen 12% two thousand eighteen 26% two thousand nineteen AND THEREAFTER [34%] 42.5% (d) In no case may the amount of the credit allowed under this subsection exceed the school district taxes due with respect to the residence for that school year. S. 7509--B 46 § 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date. PART OO Section 1. Section 13 of part A of chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local government tax levies, as amended by section 18 of part A of chapter 20 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided, however, that sections two through eleven of this act shall take effect July 1, 2011 and shall first apply to school district budgets and the budget adoption process for the 2012-13 school year; and shall continue to apply to school district budgets and the budget adoption process for any school year beginning in any calendar year during which this act is in effect; provided further, that if section 26 of part A of chapter 58 of the laws of 2011 shall not have taken effect on or before such date then section ten of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2011, takes effect; provided further, that section one of this act shall first apply to the levy of taxes by local governments for the fiscal year that begins in 2012 and shall continue to apply to the levy of taxes by local governments for any fiscal year beginning in any calendar year during which this act is in effect[; provided, further, that this act shall remain in full force and effect at a minimum until and including June 15, 2020 and shall remain in effect thereafter only so long as the public emergency requir- ing the regulation and control of residential rents and evictions and all such laws providing for such regulation and control continue as provided in subdivision 3 of section 1 of the local emergency rent control act, sections 26-501, 26-502 and 26-520 of the administrative code of the city of New York, section 17 of chapter 576 of the laws of 1974 and subdivision 2 of section 1 of chapter 274 of the laws of 1946 constituting the emergency housing rent control law, and section 10 of chapter 555 of the laws of 1982, amending the general business law and the administrative code of the city of New York relating to conversions of residential property to cooperative or condominium ownership in the city of New York as such laws are continued by chapter 93 of the laws of 2011 and as such sections are amended from time to time]. § 2. This act shall take effect immediately. PART PP Section 1. Paragraph (b) of subdivision 1 of section 186-a of the tax law, as amended by section 4 of part Y of chapter 63 of the laws of 2000, is amended to read as follows: (b) a tax equal to (1) two and five-tenths percent on and after Janu- ary first, two thousand through December thirty-first, two thousand, two and forty-five one hundredths percent from January first, two thousand one through December thirty-first, two thousand one, two and four-tenths percent from January first, two thousand two through December thirty- first, two thousand two, two and twenty-five one hundredths percent from January first, two thousand three through December thirty-first, two thousand three, two and one hundred twenty-five one thousandths percent S. 7509--B 47 from January first, two thousand four through December thirty-first, two thousand four and two percent [commencing] FROM January first, two thou- sand five, THROUGH DECEMBER THIRTY-FIRST TWO THOUSAND EIGHTEEN, ONE AND FIVE-TENTHS PERCENT FROM JANUARY FIRST, TWO THOUSAND NINETEEN THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, ONE PERCENT FROM JANUARY FIRST, TWO THOUSAND TWENTY THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, FIVE-TENTHS OF A PERCENT FROM JANUARY FIRST, TWO THOUSAND TWEN- TY-ONE TO DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, AND ZERO PERCENT COMMENCING JANUARY FIRST, TWO THOUSAND TWENTY-TWO and thereafter of that portion of its gross income derived from the transportation, transmission or distribution of gas or electricity by means of conduits, mains, pipes, wires, lines or the like and (2) two and one-tenth percent from January first, two thousand through December thirty-first, two thousand, two percent from January first, two thousand one through December thirty-first, two thousand one, one and nine-tenths percent from January first, two thousand two through December thirty-first, two thousand two, eighty-five one hundredths of one percent from January first, two thousand three through December thirty-first, two thousand three, four-tenths of one percent from January first, two thousand four through December thirty-first, two thousand four and zero percent commencing January first, two thousand five of all of its other gross income, is hereby imposed upon every utility not taxed under paragraph (a) of this subdivision doing business in this state which is subject to the supervision of the state department of public service which has a gross income for the year ending December thirty-first in excess of five hundred dollars, except motor carriers or brokers subject to such super- vision under the public service law; and § 2. This act shall take effect immediately. PART QQ Section 1. Subdivisions 1 and 1-a of section 18-a of the public service law, subdivision 1 as amended by section 2 of part NN of chapter 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part A of chapter 173 of the laws of 2013, are amended to read as follows: 1. All costs and expenses of the department and commission shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. The state treasury shall be reimbursed therefore by payments to be made thereto from all moneys collected pursuant to this chapter. [The] FOR STATE FISCAL YEARS BEGINNING PRIOR TO APRIL 1, 2019, THE total of such costs and expenses shall be borne by the public utility companies (including for the purposes of this section municipalities other than municipalities as defined in section eighty-nine-l of this chapter), corporations (including the power authority of the state of New York), and persons subject to the commission's regulation, to be assessed in the manner provided in subdivisions two, three and four of this section and section two hundred seventeen of this chapter. PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN, SUCH ASSESSMENT SHALL BE IN AN AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER. PROVIDED FURTHER FOR STATE FISCAL YEARS THAT BEGIN ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY, THE AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS S. 7509--B 48 CHAPTER SHALL BE ZERO AND ALL COSTS OF THE DEPARTMENT AND COMMISSION SHALL BE PAID BY THE STATE TREASURY. 1-a. All costs and expenses of the department related to the depart- ment's responsibilities under section three-b of this chapter shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. For the state fiscal [year] YEARS beginning on April first, two thousand fourteen and [each state fiscal year thereafter] BEGINNING PRIOR TO APRIL FIRST, TWO THOUSAND TWENTY, payments are to be made from all moneys collected from the Long Island power authority pursuant to this section. The total of such costs and expenses shall be assessed on such authority in the manner provided in subdivisions two, three and four of this section. PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN, SUCH ASSESSMENT SHALL BE IN AN AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION. PROVIDED FURTHER FOR STATE FISCAL YEARS THAT BEGIN ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY, THE AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION SHALL BE ZERO AND ALL COSTS OF THE DEPARTMENT AND COMMISSION SHALL BE PAID BY THE STATE TREASURY. § 2. This act shall take effect immediately. PART RR Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2015, is amended to read as follows: (3-a) Pensions and annuities received by an individual who has attained the age of fifty-nine and one-half, not otherwise excluded pursuant to paragraph three of this subsection, to the extent includible in gross income for federal income tax purposes, but not in excess of [twenty] TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUA