S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3946
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. BENEDET-
   TO,  COOK, DenDEKKER, DINOWITZ, GOTTFRIED -- read once and referred to
   the Committee on Ways and Means
 
 AN ACT to amend the general city law and the tax  law,  in  relation  to
   imposing the earnings tax on nonresidents

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The general city law is amended by adding  a  new  article
 2-E to read as follows:
                                 ARTICLE 2-E
                     CITY EARNINGS TAX ON NONRESIDENTS
 SECTION 25-M. AUTHORIZATION TO IMPOSE TAX.
         25-N. ADMINISTRATIVE PROVISIONS.
         25-O. DEPOSIT AND DISPOSITION OF REVENUES.
   § 25-M.  AUTHORIZATION TO IMPOSE TAX.  IN ADDITION TO ANY OTHER TAXES,
 NOW  AUTHORIZED  BY  LAW, ANY CITY HAVING A POPULATION OF ONE MILLION OR
 MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND  AMEND  LOCAL  LAWS
 IMPOSING A TAX ON THE EARNINGS OF NONRESIDENTS OF SUCH CITY TO BE ADMIN-
 ISTERED  IN THE MANNER PROVIDED FOR IN THIS ARTICLE BY THE ADMINISTRATOR
 AS DEFINED IN SECTION ONE OF THE MODEL LOCAL LAW HEREINAFTER SET FORTH.
   THE TAX AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED  ONLY  IF  THE  CITY
 IMPOSING  THE  TAX  AUTHORIZED BY THIS ARTICLE ALSO IMPOSES A TAX ON THE
 PERSONAL INCOME OF ITS RESIDENTS.  THE RATES OF SUCH TAX  SHALL  BE  THE
 RATES CONTAINED IN SECTION TWO OF THE MODEL LOCAL LAW AND SUCH RATES MAY
 BE  REDUCED  AND  INCREASED,  PROVIDED THAT THE RATES SHALL NOT BE FIXED
 HIGHER THAN THOSE CONTAINED IN SECTION TWO OF SUCH MODEL LOCAL LAW.
   THE TERMS OF SUCH LOCAL LAW SHALL BE SUBSTANTIALLY  THE  SAME  AS  THE
 FOLLOWING MODEL LOCAL LAW EXCEPT THAT THE APPENDIX AND THE SUPPLEMENT TO
 THE  APPENDIX  IN  SUCH  LOCAL  LAW  MAY  BE  AMENDED FOR THE PURPOSE OF
 CONFORMING IT WITH THE UNITED STATES  INTERNAL  REVENUE  CODE  OR  OTHER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07518-01-9
              

 A. 3946                             2
 
 FEDERAL  LAWS RELATING TO TAXATION AS PRESENTLY IN EFFECT OR AS THEY MAY
 BE AMENDED.
                       EARNINGS TAX ON NONRESIDENTS
   SEC.  1.   MEANING OF TERMS.--AS USED IN THIS LOCAL LAW, THE FOLLOWING
 TERMS SHALL MEAN AND INCLUDE: (A) "ADMINISTRATOR" MEANS  THE  STATE  TAX
 COMMISSION.
   (B) "CITY" MEANS THE CITY IMPOSING THE TAX.
   (C)  "PAYROLL  PERIOD"  AND  "EMPLOYER" SHALL MEAN THE SAME AS PAYROLL
 PERIOD AND EMPLOYER AS DEFINED IN SUBSECTIONS (B)  AND  (D)  OF  SECTION
 THIRTY-FOUR  HUNDRED  ONE  OF  THE INTERNAL REVENUE CODE, AND "EMPLOYEE"
 SHALL ALSO INCLUDE ALL THOSE INCLUDED AS EMPLOYEES IN SUBSECTION (C)  OF
 SUCH SECTION OF SUCH CODE.
   (D)  "WAGES"  SHALL MEAN WAGES AS DEFINED IN SUBSECTION (A) OF SECTION
 THIRTY-FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE,  EXCEPT  THAT  (1)
 WAGES  SHALL  NOT INCLUDE PAYMENTS FOR ACTIVE SERVICE AS A MEMBER OF THE
 ARMED FORCES OF THE UNITED STATES AND SHALL NOT INCLUDE, IN THE CASE  OF
 A  NONRESIDENT INDIVIDUAL OR PARTNER OF A PARTNERSHIP DOING AN INSURANCE
 BUSINESS AS A MEMBER OF THE NEW YORK  INSURANCE  EXCHANGE  DESCRIBED  IN
 SECTION  SIX  THOUSAND TWO HUNDRED ONE OF THE INSURANCE LAW, ANY ITEM OF
 INCOME, GAIN, LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS SUCH  INDIVID-
 UAL'S  DISTRIBUTIVE OR PRO RATA SHARE FOR FEDERAL INCOME TAX PURPOSES OR
 WHICH SUCH INDIVIDUAL IS REQUIRED TO TAKE INTO  ACCOUNT  SEPARATELY  FOR
 FEDERAL  INCOME  TAX PURPOSES AND (2) WAGES SHALL INCLUDE (I) THE AMOUNT
 OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT  SYSTEM  OR  PENSION
 FUND PICKED UP BY THE EMPLOYER PURSUANT TO SUBDIVISION F OF SECTION FIVE
 HUNDRED  SEVENTEEN  OR  SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN OF
 THE RETIREMENT AND SOCIAL SECURITY LAW OR  SECTION  13-225.1,  13-327.1,
 13-125.1, 13-125.2 OR 13-521.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
 NEW  YORK  OR SUBDIVISION NINETEEN OF SECTION TWENTY-FIVE HUNDRED SEVEN-
 TY-FIVE OF THE EDUCATION LAW, (II) THE AMOUNT DEDUCTED OR DEFERRED  FROM
 AN  EMPLOYEE'S  SALARY  UNDER  A  FLEXIBLE  BENEFITS PROGRAM ESTABLISHED
 PURSUANT TO SECTION TWENTY-THREE OF THE GENERAL MUNICIPAL LAW OR SECTION
 TWELVE HUNDRED TEN-A OF THE PUBLIC AUTHORITIES LAW, (III) THE AMOUNT  BY
 WHICH  AN  EMPLOYEE'S  SALARY  IS  REDUCED PURSUANT TO THE PROVISIONS OF
 SUBDIVISION B OF SECTION 12-126.1 AND SUBDIVISION B OF SECTION  12-126.2
 OF  THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND (IV) THE AMOUNT
 OF MEMBER OR EMPLOYEE CONTRIBUTIONS TO A RETIREMENT  SYSTEM  OR  PENSION
 FUND  PICKED UP OR PAID BY THE EMPLOYER FOR MEMBERS OF THE MANHATTAN AND
 BRONX SURFACE TRANSPORTATION  AUTHORITY  PENSION  PLAN  AND  TREATED  AS
 EMPLOYER CONTRIBUTIONS IN DETERMINING INCOME TAX TREATMENT UNDER SECTION
 414(H) OF THE INTERNAL REVENUE CODE.
   (E)  "NET  EARNINGS  FROM  SELF-EMPLOYMENT" SHALL MEAN THE SAME AS NET
 EARNINGS FROM SELF-EMPLOYMENT AS DEFINED IN SUBSECTION  (A)  OF  SECTION
 FOURTEEN  HUNDRED  TWO  OF  THE  INTERNAL  REVENUE CODE, EXCEPT THAT THE
 DEDUCTION FOR WAGES AND SALARIES PAID OR INCURRED FOR THE  TAXABLE  YEAR
 WHICH  IS  NOT  ALLOWED PURSUANT TO SECTION TWO HUNDRED EIGHTY-C OF SUCH
 CODE SHALL BE ALLOWED, AND EXCEPT THAT  AN  ESTATE  OR  TRUST  SHALL  BE
 DEEMED  TO HAVE NET EARNINGS FROM SELF-EMPLOYMENT DETERMINED IN THE SAME
 MANNER AS IF IT WERE AN INDIVIDUAL SUBJECT TO THE TAX ON SELF-EMPLOYMENT
 INCOME IMPOSED BY SECTION FOURTEEN HUNDRED ONE OF THE  INTERNAL  REVENUE
 CODE DIMINISHED BY (1) THE AMOUNT OF ANY DEDUCTION ALLOWED BY SUBSECTION
 (C)  OF  SECTION  SIX HUNDRED FORTY-TWO OF THE INTERNAL REVENUE CODE AND
 (2) THE DEDUCTIONS ALLOWED BY SECTIONS SIX  HUNDRED  FIFTY-ONE  AND  SIX
 HUNDRED  SIXTY-ONE  OF  SAID  CODE  TO  THE  EXTENT  THAT THEY REPRESENT
 DISTRIBUTIONS OR PAYMENTS TO A RESIDENT OF THE CITY.  HOWEVER, "TRADE OR
 BUSINESS" AS USED IN SUBSECTION (A) OF SECTION FOURTEEN HUNDRED  TWO  OF

 A. 3946                             3

 SUCH  CODE  SHALL  MEAN  THE  SAME  AS  TRADE  OR BUSINESS AS DEFINED IN
 SUBSECTION (C) OF SECTION FOURTEEN HUNDRED TWO OF SUCH CODE, EXCEPT THAT
 PARAGRAPHS (4), (5) AND (6) OF SUCH SUBSECTION SHALL NOT APPLY IN DETER-
 MINING  NET  EARNINGS FROM SELF-EMPLOYMENT TAXABLE UNDER THIS LOCAL LAW.
 PROVIDED HOWEVER, IN THE CASE OF A NONRESIDENT INDIVIDUAL OR PARTNER  OF
 A PARTNERSHIP DOING AN INSURANCE BUSINESS DESCRIBED IN SECTION SIX THOU-
 SAND  TWO  HUNDRED  ONE  OF THE INSURANCE LAW, ANY ITEM OF INCOME, GAIN,
 LOSS OR DEDUCTION OF SUCH BUSINESS WHICH IS THE  INDIVIDUAL'S  DISTRIBU-
 TIVE  OR  PRO  RATA  SHARE  FOR FEDERAL INCOME TAX PURPOSES OR WHICH THE
 INDIVIDUAL IS REQUIRED TO  TAKE  INTO  ACCOUNT  SEPARATELY  FOR  FEDERAL
 INCOME  TAX  PURPOSES  SHALL  NOT BE CONSIDERED TO BE "NET EARNINGS FROM
 SELF-EMPLOYMENT".
   (F) "TAXABLE YEAR" SHALL MEAN THE TAXPAYER'S TAXABLE YEAR FOR  FEDERAL
 INCOME TAX PURPOSES.
   (G) RESIDENT INDIVIDUAL.--A RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL:
   (1)  WHO  IS  DOMICILED IN THE CITY, UNLESS (A) HE OR SHE MAINTAINS NO
 PERMANENT PLACE OF ABODE IN THE CITY, MAINTAINS  A  PERMANENT  PLACE  OF
 ABODE  ELSEWHERE,  AND SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS
 OF THE TAXABLE YEAR IN THE CITY, OR (B) (I) WITHIN ANY  PERIOD  OF  FIVE
 HUNDRED  FORTY-EIGHT  CONSECUTIVE DAYS HE OR SHE IS PRESENT IN A FOREIGN
 COUNTRY OR COUNTRIES FOR AT LEAST FOUR  HUNDRED  FIFTY  DAYS,  AND  (II)
 DURING  SUCH  PERIOD  OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR
 SHE IS NOT PRESENT IN THE CITY FOR MORE THAN NINETY DAYS  AND  DOES  NOT
 MAINTAIN  A  PERMANENT  PLACE  OF  ABODE IN THE CITY AT WHICH HIS SPOUSE
 (UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE  PRESENT
 FOR  MORE  THAN  NINETY  DAYS,  AND (III) DURING ANY PERIOD OF LESS THAN
 TWELVE MONTHS, WHICH WOULD BE TREATED AS A SEPARATE TAXABLE PERIOD BASED
 ON A CHANGE OF RESIDENT STATUS, AND WHICH  PERIOD  IS  CONTAINED  WITHIN
 SUCH  PERIOD  OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS, HE OR SHE IS
 PRESENT IN THE CITY FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN AMOUNT
 WHICH BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS CONTAINED  IN
 SUCH  PERIOD  OF  LESS  THAN  TWELVE MONTHS BEARS TO FIVE HUNDRED FORTY-
 EIGHT, OR
   (2) WHO IS NOT DOMICILED IN THE CITY BUT MAINTAINS A  PERMANENT  PLACE
 OF  ABODE  IN THE CITY AND SPENDS IN THE AGGREGATE MORE THAN ONE HUNDRED
 EIGHTY-THREE DAYS OF THE TAXABLE YEAR IN THE CITY, UNLESS SUCH  INDIVID-
 UAL IS IN ACTIVE SERVICE IN THE ARMED FORCES OF THE UNITED STATES.
   (H)  NONRESIDENT  INDIVIDUAL.--A NONRESIDENT INDIVIDUAL MEANS AN INDI-
 VIDUAL WHO IS NOT A RESIDENT.
   (I) RESIDENT ESTATE OR TRUST.--A RESIDENT ESTATE OR TRUST MEANS:   (1)
 THE  ESTATE  OF  A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN THE
 CITY,
   (2) A TRUST, OR A PORTION OF A TRUST, CONSISTING  OF  PROPERTY  TRANS-
 FERRED  BY  WILL  OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN
 THE CITY, OR
   (3) A TRUST, OR PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
   (A) A PERSON DOMICILED IN THE CITY  AT  THE  TIME  SUCH  PROPERTY  WAS
 TRANSFERRED  TO  THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST WAS THEN
 IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSEQUENTLY BECOME
 IRREVOCABLE; OR
   (B) A PERSON DOMICILED IN THE CITY AT THE TIME SUCH TRUST, OR  PORTION
 OF  A  TRUST, BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH PROPERTY
 WAS TRANSFERRED TO THE TRUST BUT HAS  SUBSEQUENTLY  BECOME  IRREVOCABLE.
 FOR  THE  PURPOSES  OF  THE  FOREGOING, A TRUST OR PORTION OF A TRUST IS
 REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY
 FUTURE TIME, TO REVEST TITLE IN THE PERSON  WHOSE  PROPERTY  CONSTITUTES

 A. 3946                             4
 
 SUCH  TRUST  OR  PORTION  OF  A TRUST, AND A TRUST OR PORTION OF A TRUST
 BECOMES IRREVOCABLE WHEN THE POSSIBILITY THAT SUCH POWER  MAY  BE  EXER-
 CISED HAS BEEN TERMINATED.
   (J)  NONRESIDENT ESTATE OR TRUST.--A NONRESIDENT ESTATE OR TRUST MEANS
 AN ESTATE OR TRUST WHICH IS NOT A RESIDENT.
   (K) UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED, ANY TERM  USED  IN
 THIS  LOCAL LAW SHALL HAVE THE SAME MEANING AS WHEN USED IN A COMPARABLE
 CONTEXT IN THE LAWS OF THE UNITED STATES RELATING TO FEDERAL  TAXES  BUT
 SUCH  MEANING  SHALL  BE  SUBJECT  TO  THE  EXCEPTIONS  OR MODIFICATIONS
 PRESCRIBED IN OR PURSUANT TO ARTICLE TWO-E OF THE GENERAL CITY LAW OR BY
 THE LAWS OF THIS STATE. ANY REFERENCE IN THIS LOCAL LAW TO THE  INTERNAL
 REVENUE  CODE,  THE INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX
 OR TO THE LAWS OF THE UNITED STATES SHALL MEAN  THE  PROVISIONS  OF  THE
 INTERNAL REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX (UNLESS A REFERENCE
 TO  THE  INTERNAL REVENUE CODE OF NINETEEN HUNDRED FIFTY-FOUR IS CLEARLY
 INTENDED), AND AMENDMENTS THERETO, AND OTHER PROVISIONS OF THE  LAWS  OF
 THE UNITED STATES RELATING TO FEDERAL TAXES, AS THE SAME ARE INCLUDED IN
 THIS  LOCAL  LAW  AS  AN  APPENDIX  AND SUPPLEMENT TO THE APPENDIX OR AS
 INCLUDED BY REFERENCE TO AN APPENDIX AND SUPPLEMENT TO THE APPENDIX OF A
 TITLE ENACTED BY THE SAME LOCAL LAW  AS  ENACTS  THIS  LOCAL  LAW.  (THE
 QUOTATION OF THE AFORESAID LAWS OF THE UNITED STATES IS INTENDED TO MAKE
 THEM  A PART OF THIS LOCAL LAW AND TO AVOID CONSTITUTIONAL UNCERTAINTIES
 WHICH MIGHT RESULT IF SUCH LAWS WERE MERELY INCORPORATED  BY  REFERENCE.
 THE  QUOTATION OF A PROVISION OF THE FEDERAL INTERNAL REVENUE CODE OR OF
 ANY OTHER LAW OF THE UNITED STATES SHALL NOT NECESSARILY MEAN THAT IT IS
 APPLICABLE TO OR HAS RELEVANCE TO THIS LOCAL LAW.)
   (L) THE TERM "PARTNERSHIP" SHALL INCLUDE, UNLESS A  DIFFERENT  MEANING
 IS  CLEARLY REQUIRED, A SUBCHAPTER K LIMITED LIABILITY COMPANY. THE TERM
 "SUBCHAPTER K LIMITED LIABILITY COMPANY" SHALL MEAN A LIMITED  LIABILITY
 COMPANY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES.
   THE  TERM "LIMITED LIABILITY COMPANY" MEANS A DOMESTIC LIMITED LIABIL-
 ITY COMPANY OR A  FOREIGN  LIMITED  LIABILITY  COMPANY,  AS  DEFINED  IN
 SECTION  ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, A LIMITED
 LIABILITY INVESTMENT COMPANY FORMED PURSUANT  TO  SECTION  FIVE  HUNDRED
 SEVEN  OF  THE  BANKING LAW, OR A LIMITED LIABILITY TRUST COMPANY FORMED
 PURSUANT TO SECTION ONE HUNDRED TWO-A OF THE BANKING LAW.
   SEC. 2.  PERSONS SUBJECT TO TAX.--(A)   IMPOSITION OF TAX.--A  TAX  IS
 HEREBY  IMPOSED  FOR  EACH  TAXABLE YEAR BEGINNING AFTER JULY FIRST, TWO
 THOUSAND EIGHTEEN ON THE WAGES EARNED, AND NET  EARNINGS  FROM  SELF-EM-
 PLOYMENT,  WITHIN  THE CITY, OF EVERY NONRESIDENT INDIVIDUAL, ESTATE AND
 TRUST WHICH SHALL COMPRISE A TAX AT THE RATE OF ONE PERCENT ON ALL WAGES
 AND ALL NET EARNINGS FROM SELF-EMPLOYMENT.
   (B)  EXCLUSION.--(1)  IN COMPUTING THE AMOUNT OF WAGES AND  NET  EARN-
 INGS  FROM  SELF-EMPLOYMENT TAXABLE UNDER SUBSECTION (A), THERE SHALL BE
 ALLOWED AN EXCLUSION AGAINST THE TOTAL OF WAGES AND  NET  EARNINGS  FROM
 SELF-EMPLOYMENT IN ACCORDANCE WITH THE FOLLOWING TABLE:
   TOTAL OF WAGES AND NET EARNINGS
   FROM SELF-EMPLOYMENT                 EXCLUSION ALLOWABLE
                    NOT OVER $10,000               $3,000
   OVER $10,000 BUT NOT OVER $20,000               $2,000
   OVER $20,000 BUT NOT OVER $30,000               $1,000
   OVER $30,000                                      NONE
   (2)    THE EXCLUSION ALLOWABLE SHALL BE APPLIED PRO RATA AGAINST WAGES
 AND NET EARNINGS FROM SELF-EMPLOYMENT.
   (3)  FOR TAXABLE PERIODS OF LESS THAN ONE YEAR, THE  EXCLUSION  ALLOW-
 ABLE SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.

 A. 3946                             5
 
   (C)    LIMITATION.--IN NO EVENT SHALL A TAXPAYER BE SUBJECT TO THE TAX
 UNDER THIS LOCAL LAW IN AN AMOUNT  GREATER  THAN  HE  OR  SHE  WOULD  BE
 REQUIRED  TO PAY IF HE OR SHE WERE A RESIDENT OF THE CITY AND SUBJECT TO
 A TAX ON PERSONAL INCOME OF RESIDENTS OF THE CITY ADOPTED  BY  THE  CITY
 PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY LAW.
   SEC.  3.    TAXABLE  YEARS  TO WHICH THE TAX IMPOSED BY THIS LOCAL LAW
 APPLIES; TAX FOR TAXABLE YEARS BEGINNING AFTER JULY FIRST, TWO  THOUSAND
 TWENTY.--THE  TAX  IMPOSED BY THIS LOCAL LAW IS IMPOSED FOR EACH TAXABLE
 YEAR BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY.
   SEC. 4.  ACCOUNTING PERIODS AND METHODS.--(A)  ACCOUNTING PERIODS.-- A
 TAXPAYER'S TAXABLE YEAR UNDER THIS LOCAL LAW SHALL BE THE  SAME  AS  HIS
 TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
   (B)    CHANGE  OF ACCOUNTING PERIODS.--IF A TAXPAYER'S TAXABLE YEAR IS
 CHANGED FOR FEDERAL INCOME TAX PURPOSES, HIS OR  HER  TAXABLE  YEAR  FOR
 PURPOSES  OF  THIS  LOCAL  LAW SHALL BE SIMILARLY CHANGED.  IF A TAXABLE
 PERIOD OF LESS THAN TWELVE MONTHS RESULTS FROM A CHANGE OF TAXABLE YEAR,
 THE EXCLUSION ALLOWABLE UNDER SECTION TWO OF THIS  LOCAL  LAW  SHALL  BE
 PRORATED UNDER REGULATIONS OF THE ADMINISTRATOR.
   (C)  ACCOUNTING METHODS.--A TAXPAYER'S METHOD OF ACCOUNTING UNDER THIS
 SECTION SHALL BE THE SAME AS HIS OR HER METHOD OF ACCOUNTING FOR FEDERAL
 INCOME  TAX  PURPOSES.    IN THE ABSENCE OF ANY METHOD OF ACCOUNTING FOR
 FEDERAL INCOME TAX PURPOSES, NET EARNINGS  FROM  SELF-EMPLOYMENT  WITHIN
 THE  CITY  SHALL  BE COMPUTED UNDER SUCH METHOD AS IN THE OPINION OF THE
 ADMINISTRATOR CLEARLY REFLECTS NET EARNINGS FROM SELF-EMPLOYMENT  WITHIN
 THE CITY.
   (D)    CHANGE  OF ACCOUNTING METHODS.--(1)   IF A TAXPAYER'S METHOD OF
 ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, HIS OR HER METHOD
 OF ACCOUNTING FOR PURPOSES OF THIS LOCAL LAW SHALL BE SIMILARLY CHANGED.
   (2)  IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED, OTHER THAN  FROM
 AN  ACCRUAL  TO  AN INSTALLMENT METHOD, ANY ADDITIONAL TAX WHICH RESULTS
 FROM ADJUSTMENTS DETERMINED TO BE NECESSARY  SOLELY  BY  REASON  OF  THE
 CHANGE  SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLO-
 CATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE  PRECEDING
 TAXABLE  YEARS,  BEGINNING AFTER JULY FIRST, TWO THOUSAND TWENTY, NOT IN
 EXCESS OF TWO, DURING WHICH THE TAXPAYER USED THE METHOD  OF  ACCOUNTING
 FROM WHICH THE CHANGE IS MADE.
   (3)    IF A TAXPAYER'S METHOD OF ACCOUNTING IS CHANGED FROM AN ACCRUAL
 TO AN INSTALLMENT METHOD, ANY ADDITIONAL TAX FOR THE YEAR OF SUCH CHANGE
 OF METHOD AND FOR ANY SUBSEQUENT  YEAR  WHICH  IS  ATTRIBUTABLE  TO  THE
 RECEIPT  OF INSTALLMENT PAYMENTS PROPERLY ACCRUED IN A PRIOR YEAR, SHALL
 BE REDUCED BY THE PORTION OF TAX FOR ANY PRIOR TAXABLE YEAR ATTRIBUTABLE
 TO THE ACCRUAL OF SUCH INSTALLMENT PAYMENTS, IN  ACCORDANCE  WITH  REGU-
 LATIONS OF THE ADMINISTRATOR.
   SEC.  5.   RETURNS AND PAYMENT OF TAX.--ON OR BEFORE THE FIFTEENTH DAY
 OF THE FOURTH MONTH FOLLOWING THE  CLOSE  OF  THE  TAXABLE  YEAR,  EVERY
 PERSON  SUBJECT  TO THE TAX SHALL MAKE AND FILE A RETURN AND ANY BALANCE
 OF THE TAX SHOWN DUE ON THE FACE OF SUCH RETURN SHALL BE PAID THEREWITH.
 THE ADMINISTRATOR MAY, BY REGULATION, PROVIDE FOR THE FILING OF  RETURNS
 AND  PAYMENT OF THE TAX AT SUCH OTHER TIMES AS HE OR SHE DEEMS NECESSARY
 FOR THE PROPER ENFORCEMENT OF THIS LOCAL LAW.    THE  ADMINISTRATOR  MAY
 ALSO PROVIDE BY REGULATION THAT ANY RETURN OTHERWISE REQUIRED TO BE MADE
 AND FILED UNDER THIS LOCAL LAW BY ANY NONRESIDENT INDIVIDUAL NEED NOT BE
 MADE  AND  FILED  IF SUCH NONRESIDENT INDIVIDUAL HAD, DURING THE TAXABLE
 YEAR TO WHICH THE RETURN WOULD RELATE, NO NET EARNINGS FROM SELF-EMPLOY-
 MENT WITHIN THE CITY.  ANY REGULATION ALLOWING SUCH WAIVER OF RETURN MAY

 A. 3946                             6

 PROVIDE FOR ADDITIONAL LIMITATIONS ON AND CONDITIONS  AND  PREREQUISITES
 TO THE PRIVILEGE OF NOT FILING A RETURN.
   SEC.  6. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS.--THE STATE
 TAX COMMISSION MAY REQUIRE:
   (1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
   (A) A COMBINED RETURN WHICH IN ADDITION TO THE RETURN PROVIDED FOR  IN
 A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO INCLUDE RETURNS REQUIRED
 TO  BE  FILED  UNDER A LOCAL LAW AUTHORIZED BY ARTICLE THIRTY OF THE TAX
 LAW AND UNDER ARTICLE TWENTY-TWO OF THE TAX LAW.
   (B) A COMBINED EMPLOYER'S RETURN WHICH IN ADDITION TO  THE  EMPLOYER'S
 RETURN  PROVIDED  FOR IN A LOCAL LAW AUTHORIZED BY THIS ARTICLE MAY ALSO
 INCLUDE EMPLOYER'S RETURNS REQUIRED  TO  BE  FILED  UNDER  A  LOCAL  LAW
 AUTHORIZED BY ARTICLE THIRTY OF THE TAX LAW AND UNDER ARTICLE TWENTY-TWO
 OF THE TAX LAW.
   (2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
 RESPECT  TO  THE  PAYMENT OF ESTIMATED TAX, THE STATE TAX COMMISSION MAY
 ALSO REQUIRE PAYMENT OF A SINGLE AMOUNT WHICH SHALL BE THE TOTAL OF  THE
 AMOUNTS  (TOTAL  TAXES  LESS ANY CREDITS OR REFUNDS) REQUIRED TO BE PAID
 WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN PAYMENT  OF  ESTIMATED  TAX
 PURSUANT  TO THE PROVISIONS OF LOCAL LAWS IMPOSED UNDER THE AUTHORITY OF
 ARTICLE TWO-E OF THE GENERAL CITY LAW, ARTICLE THIRTY OF THE TAX LAW AND
 PURSUANT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
   SEC. 7.   EFFECT OF INVALIDITY IN  PART;  INCONSISTENCIES  WITH  OTHER
 LAWS.--(A)  IF  ANY  CLAUSE,  SENTENCE,  PARAGRAPH, SUBSECTION, SECTION,
 PROVISION OR OTHER PORTION OF THIS LOCAL LAW OR THE APPLICATION  THEREOF
 TO ANY PERSON OR CIRCUMSTANCES SHALL BE HELD TO BE INVALID, SUCH HOLDING
 SHALL  NOT  AFFECT, IMPAIR OR INVALIDATE THE REMAINDER OF THIS LOCAL LAW
 OR THE APPLICATION OF SUCH PORTION HELD INVALID, TO ANY OTHER PERSON  OR
 CIRCUMSTANCES,  BUT  SHALL  BE  CONFINED IN ITS OPERATION TO THE CLAUSE,
 SENTENCE, PARAGRAPH, SUBSECTION, SECTION,  PROVISION  OR  OTHER  PORTION
 THEREOF  DIRECTLY  INVOLVED IN SUCH HOLDING OR TO THE PERSON AND CIRCUM-
 STANCES THEREIN INVOLVED.
   (B)   IF ANY PROVISION OF THIS LOCAL  LAW  IS  INCONSISTENT  WITH,  IN
 CONFLICT WITH, OR CONTRARY TO ANY OTHER PROVISION OF LAW, SUCH PROVISION
 OF THIS LOCAL LAW SHALL PREVAIL OVER SUCH OTHER PROVISION AND SUCH OTHER
 PROVISION  SHALL  BE DEEMED TO HAVE BEEN AMENDED, SUPERSEDED OR REPEALED
 TO THE EXTENT OF SUCH INCONSISTENCY, CONFLICT OR CONTRARIETY.
   § 25-N. ADMINISTRATIVE PROVISIONS. (A) GENERAL. ANY LOCAL LAW  ADOPTED
 PURSUANT  TO  THIS  ARTICLE  SHALL ALSO CONTAIN PROVISIONS NECESSARY AND
 APPROPRIATE FOR THE COLLECTION AND THE ADMINISTRATION OF THE TAX  HEREIN
 AUTHORIZED.
   (B)  METHODS  OF REVIEW.--SUCH LOCAL LAW SHALL ALSO CONTAIN PROVISIONS
 SUBSTANTIALLY THE SAME AS THE FOLLOWING:
   (I) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
 SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR  ANY
 OTHER  REASON  WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
 THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO  THE
 SUPREME  COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH
 FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH  PROCEEDING  UNDER
 ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
 INSTITUTED UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED,  WITH
 SUCH  INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL LAW
 OR REGULATION, SHALL BE FIRST DEPOSITED AND THERE IS FILED AN  UNDERTAK-
 ING,  ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS
 STATE AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES  OF  THIS
 STATE  AS TO SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF

 A. 3946                             7
 
 THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE
 DISMISSED OR THE TAX CONFIRMED THE PETITIONER WILL  PAY  ALL  COSTS  AND
 CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT
 THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT
 TO  COVER THE TAXES, INTEREST AND PENALTIES STATED IN SUCH DETERMINATION
 PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST  IT  IN  THE  PROSE-
 CUTION  OF  THE  PROCEEDING,  IN WHICH EVENT THE PETITIONER SHALL NOT BE
 REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION  PRECE-
 DENT TO THE APPLICATION.
   (II)  WHERE  ANY  TAX  IMPOSED  HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,
 ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
 THEREOF DULY MADE TO THE PROPER FISCAL OFFICER  OR  OFFICERS,  AND  SUCH
 OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
 SUCH  DETERMINATION  SHALL  BE  REVIEWABLE BY A PROCEEDING UNDER ARTICLE
 SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND  RULES,  PROVIDED,  HOWEVER,
 THAT  SUCH  PROCEEDING IS INSTITUTED WITHIN FOUR MONTHS AFTER THE GIVING
 OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE  WAS
 NOT  PREVIOUSLY  MADE,  AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
 FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH  SURETIES  AS  A
 JUSTICE  OF  THE  SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
 PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE  PETITIONER  WILL  PAY
 ALL  COSTS  AND  CHARGES  WHICH  MAY  ACCRUE  IN THE PROSECUTION OF SUCH
 PROCEEDING.
   (III) NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE AFTER THE  EXPIRA-
 TION  OF MORE THAN THREE YEARS FROM THE DATE OF THE FILING OF THE RETURN
 EXCEPT THAT WHERE NO RETURN HAS BEEN FILED OR, IN THE CASE OF THE FILING
 OF A WILFULLY FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE  THE  TAX,
 THE TAX MAY BE ASSESSED AT ANY TIME; PROVIDED, HOWEVER, WHERE A TAXPAYER
 OMITS FROM HIS OR HER RETURN AN AMOUNT WHICH SHOULD BE PROPERLY INCLUDED
 THEREIN  WHICH  IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT OF THE
 GROSS INCOME DERIVED BY HIM OR  HER  FROM  ANY  TRADE  OR  BUSINESS,  NO
 ASSESSMENT  OF ADDITIONAL TAX SHALL BE MADE AFTER THE EXPIRATION OF MORE
 THAN SIX YEARS FROM THE DATE OF THE FILING  OF  THE  RETURN,  EXCEPT  AS
 OTHERWISE PROVIDED HEREIN.
   (C)  DELEGATION  OF  FUNCTIONS.--THE  LOCAL  LAW  MAY PROVIDE THAT THE
 ADMINISTRATOR OF THE TAX IMPOSED, AS DEFINED IN THE LOCAL LAW, MAY DELE-
 GATE HIS OR HER POWERS AND FUNCTIONS UNDER THE LOCAL LAW TO ONE  OF  HIS
 OR HER DEPUTIES OR TO ANY EMPLOYEE OR EMPLOYEES OF HIS OR HER DEPARTMENT
 AND  AUTHORIZE BANKS OR TRUST COMPANIES WHICH ARE DEPOSITORIES OR FINAN-
 CIAL AGENTS OF THE CITY TO RECEIVE  AND  GIVE  A  RECEIPT  FOR  ANY  TAX
 IMPOSED UNDER THE LOCAL LAW.
   § 25-O. DEPOSIT  AND  DISPOSITION OF REVENUES.   ONE-HALF THE REVENUES
 RESULTING FROM THE IMPOSITION OF THE  TAX  AUTHORIZED  BY  THIS  ARTICLE
 SHALL BE:
   (A)  PAID  INTO  THE TREASURY OF THE CITY AND SHALL BE CREDITED TO AND
 DEPOSITED IN THE GENERAL FUND OF SUCH CITY AND SHALL  BE  AVAILABLE  FOR
 ANY LAWFUL CITY PURPOSE; AND
   (B)  DEPOSITED  IN THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
 ASSISTANCE FUND ESTABLISHED PURSUANT TO  SECTION  NINETY-TWO-FF  OF  THE
 STATE FINANCE LAW.
   (C)  SUCH  REVENUES  SHALL  BE  DEPOSITED  AND DISPOSED OF IN THE SAME
 MANNER AS REVENUES RESULTING FROM THE IMPOSITION OF THE TAXES AUTHORIZED
 BY ARTICLE THIRTY OF THE TAX LAW.
   § 2. Section 1301 of the tax law is amended by adding a new subsection
 (c) to read as follows:

 A. 3946                             8
 
   (C) THE TAXES AUTHORIZED BY THIS ARTICLE MAY BE IMPOSED  ONLY  IF  THE
 GENERAL  CITY  LAW AUTHORIZES THE ADOPTION OF A CITY TAX ON THE EARNINGS
 OF NONRESIDENTS AND THE CITY IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE
 ALSO IMPOSES SUCH TAX ON THE EARNINGS OF NONRESIDENTS.
   §  3.  Subsection  (b)  of  section 1305 of the tax law, as amended by
 chapter 5 of the laws of 1999, is amended to read as follows:
   (b) City nonresident individual. A city nonresident  individual  means
 an  individual  who  is not a resident of such city [or the state of New
 York].
   § 4. Separability. If any clause, sentence, paragraph or part of  this
 act  shall  be adjudged to be unconstitutional or invalid, such judgment
 shall not affect, impair, or  invalidate,  the  remainder  thereof,  but
 shall  be  confined in its operation to the clause, sentence, paragraph,
 section or part thereof directly involved in the  controversy  in  which
 such judgment shall have been rendered.
   §  5.  This  act  shall take effect immediately.   The commissioner of
 taxation and finance is authorized to promulgate immediately and  on  an
 emergency  basis  all necessary and reasonable rules and regulations for
 the timely implementation of this act.