S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3998
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced by M. of A. WEPRIN -- 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; to amend the real  property
   tax  law,  in  relation  to  a real property tax credit; and to repeal
   chapter 5 of the laws of 1999, amending the tax law  and  the  general
   city  law relating to the definition of nonresident for the purpose of
   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.  Short  title. This act shall be known and may be cited as
 the "infrastructure jobs act".
   § 2. Chapter 5 of the laws of 1999,  amending  the  tax  law  and  the
 general  city  law  relating  to  the  definition of nonresident for the
 purpose of imposing the earnings tax on nonresidents, is REPEALED.
   § 3. 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  EITHER SECTION TWO OR TWO-A OF THE MODEL LOCAL LAW
 AND SUCH RATES MAY BE REDUCED AND INCREASED,  PROVIDED  THAT  THE  RATES
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07397-01-9

 A. 3998                             2
 
 SHALL  NOT BE FIXED HIGHER THAN THOSE CONTAINED IN SECTION TWO-A 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
 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  FINANCE
 ADMINISTRATOR  OR OTHER FISCAL OFFICER OF THE CITY CHARGED WITH ADMINIS-
 TRATION OF THE TAX ON EARNINGS OF NONRESIDENTS  IMPOSED  BY  THIS  LOCAL
 LAW, EXCEPT WITH RESPECT TO TAXES IMPOSED FOR ANY TAXABLE YEAR BEGINNING
 ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-SIX, SUCH TERM SHALL
 MEAN 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 TITLE THIRTEEN OF THE ADMINISTRATIVE
 CODE OF THE CITY OF NEW YORK OR SUBDIVISION NINETEEN OF SECTION  TWENTY-
 FIVE HUNDRED SEVENTY-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  TREAT-
 MENT 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

 A. 3998                             3
 
 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
 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 OR HER
 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. 3998                             4
 
   (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
 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 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 ENDING ON OR AFTER JULY FIRST,
 NINETEEN HUNDRED SIXTY-SIX ON THE WAGES EARNED, AND  NET  EARNINGS  FROM
 SELF-EMPLOYMENT,  WITHIN  THE  CITY,  OF  EVERY  NONRESIDENT INDIVIDUAL,
 ESTATE AND TRUST WHICH SHALL COMPRISE:
   (1)  A TAX AT THE RATE OF ONE PERCENT ON ALL WAGES.
   (2)  A TAX AT THE RATE OF ONE PERCENT ON 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

 A. 3998                             5
 
 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.
   (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.   2-A. PERSONS SUBJECT TO TAX.--(A) IMPOSITION OF TAX.--(1) A TAX
 IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ENDING ON OR AFTER  JULY  FIRST,
 NINETEEN HUNDRED SIXTY-SIX AND ON OR BEFORE DECEMBER THIRTY-FIRST, NINE-
 TEEN  HUNDRED SEVENTY AND FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER
 THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE, ON THE WAGES EARNED, AND NET
 EARNINGS FROM SELF-EMPLOYMENT, WITHIN THE  CITY,  OF  EVERY  NONRESIDENT
 INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
   (I) A TAX AT THE RATE OF ONE PERCENT ON ALL WAGES.
   (II)  A  TAX AT THE RATE OF ONE PERCENT ON ALL NET EARNINGS FROM SELF-
 EMPLOYMENT.
   (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY  FIRST,  NINE-
 TEEN  HUNDRED SEVENTY-ONE AND ENDING ON OR BEFORE DECEMBER THIRTY-FIRST,
 NINETEEN HUNDRED NINETY-NINE, A TAX  IS  HEREBY  IMPOSED  ON  THE  WAGES
 EARNED, AND NET EARNINGS FROM SELF-EMPLOYMENT, WITHIN THE CITY, OF EVERY
 NONRESIDENT INDIVIDUAL, ESTATE AND TRUST WHICH SHALL COMPRISE:
   (I) A TAX AT THE RATE OF ONE PERCENT ON ALL WAGES.
   (II)  A  TAX AT THE RATE OF ONE PERCENT ON ALL NET EARNINGS FROM SELF-
 EMPLOYMENT.
   (3) FOR EACH TAXABLE YEAR BEGINNING IN NINETEEN  HUNDRED  SEVENTY  AND
 ENDING  IN  NINETEEN  HUNDRED  SEVENTY-ONE, TWO TENTATIVE TAXES SHALL BE
 COMPUTED, THE FIRST AS PROVIDED IN  PARAGRAPH  (1)  AND  THE  SECOND  AS
 PROVIDED  IN  PARAGRAPH (2), AND THE TAX FOR EACH SUCH YEAR SHALL BE THE
 SUM OF THAT PROPORTION OF EACH TENTATIVE TAX WHICH THE NUMBER OF DAYS IN
 NINETEEN HUNDRED SEVENTY AND THE NUMBER  OF  DAYS  IN  NINETEEN  HUNDRED
 SEVENTY-ONE,  RESPECTIVELY,  BEARS  TO  THE NUMBER OF DAYS IN THE ENTIRE
 TAXABLE YEAR.
   (4) FOR EACH TAXABLE YEAR BEGINNING IN  NINETEEN  HUNDRED  NINETY-NINE
 AND  ENDING  IN TWO THOUSAND, TWO TENTATIVE TAXES SHALL BE COMPUTED, THE
 FIRST AS PROVIDED IN PARAGRAPH (2) AND THE SECOND AS PROVIDED  IN  PARA-
 GRAPH  (1),  AND  THE  TAX  FOR  EACH SUCH YEAR SHALL BE THE SUM OF THAT
 PROPORTION OF EACH TENTATIVE TAX WHICH THE NUMBER OF  DAYS  IN  NINETEEN
 HUNDRED  NINETY-NINE AND THE NUMBER OF DAYS IN TWO THOUSAND, RESPECTIVE-
 LY, BEARS TO THE NUMBER OF DAYS IN THE ENTIRE TAXABLE YEAR.
   (B) EXCLUSION.--(1) IN COMPUTING THE AMOUNT OF WAGES AND NET  EARNINGS
 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

 A. 3998                             6
 
                   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 ALLOWABLE
 SHALL BE PRORATED PURSUANT TO REGULATIONS OF THE ADMINISTRATOR.
   (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 OR THE TAX LAW.
   SEC. 3.  TAXABLE YEARS TO WHICH TAX IMPOSED BY THIS LOCAL LAW APPLIES;
 TAX FOR TAXABLE YEARS BEGINNING PRIOR TO AND ENDING  AFTER  JULY  FIRST,
 NINETEEN  HUNDRED  SIXTY-SIX.--(A)    GENERAL.-- THE TAX IMPOSED BY THIS
 LOCAL LAW IS IMPOSED FOR EACH TAXABLE YEAR BEGINNING WITH TAXABLE  YEARS
 ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.
   (B)  ALTERNATE METHODS FOR DETERMINING TAX FOR TAXABLE YEARS ENDING ON
 OR  AFTER  JULY FIRST, NINETEEN HUNDRED SIXTY-SIX.-- (1) THE TAX FOR ANY
 TAXABLE YEAR ENDING ON OR AFTER JULY FIRST, NINETEEN  HUNDRED  SIXTY-SIX
 AND  ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, SHALL BE
 THE SAME PART OF THE TAX WHICH WOULD HAVE BEEN IMPOSED  HAD  THIS  LOCAL
 LAW  BEEN  IN EFFECT FOR THE ENTIRE TAXABLE YEAR AS THE NUMBER OF MONTHS
 (OR MAJOR PORTIONS THEREOF) OF THE TAXABLE  YEAR  OCCURRING  AFTER  JULY
 FIRST,  NINETEEN  HUNDRED SIXTY-SIX IS OF THE NUMBER OF MONTHS (OR MAJOR
 PORTIONS THEREOF) IN THE TAXABLE YEAR.
   (2) (I)  IN LIEU OF THE METHOD OF COMPUTATION  OF  TAX  PRESCRIBED  IN
 PARAGRAPH  (1), IF THE TAXPAYER MAINTAINS ADEQUATE RECORDS FOR ANY TAXA-
 BLE YEAR ENDING ON OR AFTER JULY FIRST, NINETEEN HUNDRED  SIXTY-SIX  AND
 ON  OR  BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN, THE TAX FOR
 SUCH TAXABLE YEAR, AT THE ELECTION OF THE TAXPAYER, MAY BE  COMPUTED  ON
 THE  BASIS OF THE WAGES WHICH THE TAXPAYER WOULD HAVE REPORTED HAD HE OR
 SHE FILED A FEDERAL INCOME TAX RETURN FOR A TAXABLE YEAR BEGINNING  JULY
 FIRST,  NINETEEN  HUNDRED  SIXTY-SIX  AND  ENDING WITH THE CLOSE OF SUCH
 TAXABLE YEAR ENDING  ON  OR  BEFORE  JUNE  THIRTIETH,  NINETEEN  HUNDRED
 SIXTY-SEVEN, AND THE NET EARNINGS FROM SELF-EMPLOYMENT WHICH THE TAXPAY-
 ER  WOULD  HAVE  REPORTED  FOR FEDERAL INCOME TAX PURPOSES HAD HE OR SHE
 FILED A SELF-EMPLOYMENT TAX RETURN FOR A  TAXABLE  YEAR  BEGINNING  JULY
 FIRST,  NINETEEN  HUNDRED  SIXTY-SIX  AND  ENDING WITH THE CLOSE OF SUCH
 TAXABLE YEAR ENDING  ON  OR  BEFORE  JUNE  THIRTIETH,  NINETEEN  HUNDRED
 SIXTY-SEVEN.
   (II)  FOR  PURPOSES  OF THIS PARAGRAPH, THE EXCLUSIONS ALLOWABLE UNDER
 SECTION TWO SHALL BE REDUCED BY A FRACTION THE NUMERATOR OF WHICH IS THE
 NUMBER OF MONTHS (OR MAJOR PORTIONS THEREOF) OF THE TAXABLE YEAR  OCCUR-
 RING  BEFORE  JULY FIRST, NINETEEN HUNDRED SIXTY-SIX AND THE DENOMINATOR
 OF WHICH IS THE NUMBER OF MONTHS (OR  MAJOR  PORTIONS  THEREOF)  IN  THE
 TAXABLE  YEAR.    EXCEPT AS PROVIDED IN THIS PARAGRAPH, THE TAX FOR SUCH
 PERIOD ENDING ON OR BEFORE JUNE THIRTIETH, NINETEEN HUNDRED SIXTY-SEVEN,
 SHALL BE COMPUTED IN ACCORDANCE WITH THE OTHER PROVISIONS OF THIS  LOCAL
 LAW.
   SEC. 4.  ALLOCATION TO THE CITY.--(A)  GENERAL.-- IF NET EARNINGS FROM
 SELF-EMPLOYMENT  ARE  DERIVED  FROM SERVICES PERFORMED, OR FROM SOURCES,
 WITHIN AND WITHOUT THE CITY, THERE SHALL BE ALLOCATED TO THE CITY A FAIR
 AND EQUITABLE PORTION OF SUCH EARNINGS.

 A. 3998                             7
 
   (B)  ALLOCATION OF NET EARNINGS FROM SELF-EMPLOYMENT.--(1)   PLACE  OF
 BUSINESS.--  IF  A TAXPAYER HAS NO REGULAR PLACE OF BUSINESS OUTSIDE THE
 CITY ALL OF HIS OR HER NET EARNINGS FROM SELF-EMPLOYMENT SHALL BE  ALLO-
 CATED TO THE CITY.
   (2)    ALLOCATION  BY  TAXPAYER'S BOOKS.-- THE PORTION OF NET EARNINGS
 FROM SELF-EMPLOYMENT ALLOCABLE TO THE CITY MAY BE  DETERMINED  FROM  THE
 BOOKS AND RECORDS OF A TAXPAYER'S TRADE OR BUSINESS, IF THE METHODS USED
 IN  KEEPING  SUCH  BOOKS  AND  THE  ACCURACY THEREOF ARE APPROVED BY THE
 ADMINISTRATOR AS FAIRLY AND EQUITABLY REFLECTING NET EARNINGS FROM SELF-
 EMPLOYMENT WITHIN THE CITY.
   (3)  ALLOCATION BY FORMULA.-- IF PARAGRAPH (2) DOES NOT APPLY  TO  THE
 TAXPAYER,  THE PORTION OF NET EARNINGS FROM SELF-EMPLOYMENT ALLOCABLE TO
 THE CITY SHALL BE DETERMINED BY MULTIPLYING (A) NET EARNINGS FROM  SELF-
 EMPLOYMENT  WITHIN  AND  WITHOUT  THE  CITY,  BY  (B) THE AVERAGE OF THE
 FOLLOWING THREE PERCENTAGES:
   (I)  PROPERTY PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
 AVERAGE OF THE VALUE, AT THE BEGINNING AND END OF THE TAXABLE  YEAR,  OF
 REAL AND TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM
 SELF-EMPLOYMENT  AND  LOCATED WITHIN THE CITY, BY (B) THE AVERAGE OF THE
 VALUE, AT THE BEGINNING AND END OF THE TAXABLE YEAR,  OF  ALL  REAL  AND
 TANGIBLE PERSONAL PROPERTY CONNECTED WITH THE NET EARNINGS FROM SELF-EM-
 PLOYMENT  AND  LOCATED  BOTH  WITHIN  AND  WITHOUT  THE CITY.   FOR THIS
 PURPOSE, REAL PROPERTY SHALL INCLUDE REAL  PROPERTY,  WHETHER  OWNED  OR
 RENTED.
   (II)  PAYROLL PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING (A) THE
 TOTAL  WAGES,  SALARIES  AND OTHER PERSONAL SERVICE COMPENSATION PAID OR
 INCURRED DURING THE TAXABLE YEAR TO EMPLOYEES IN CONNECTION WITH THE NET
 EARNINGS FROM SELF-EMPLOYMENT DERIVED FROM A TRADE OR  BUSINESS  CARRIED
 ON  WITHIN  THE  CITY, BY (B) THE TOTAL OF ALL WAGES, SALARIES AND OTHER
 PERSONAL SERVICE COMPENSATION PAID OR INCURRED DURING THE  TAXABLE  YEAR
 TO  EMPLOYEES  IN  CONNECTION WITH THE NET EARNINGS FROM SELF-EMPLOYMENT
 DERIVED FROM A TRADE OR BUSINESS CARRIED ON BOTH WITHIN AND WITHOUT  THE
 CITY.
   (III)    GROSS INCOME PERCENTAGE.  THE PERCENTAGE COMPUTED BY DIVIDING
 (A) THE GROSS SALES OR CHARGES FOR SERVICES PERFORMED BY OR  THROUGH  AN
 AGENCY  LOCATED  WITHIN THE CITY, BY (B) THE TOTAL OF ALL GROSS SALES OR
 CHARGES FOR SERVICES PERFORMED WITHIN AND WITHOUT THE CITY.   THE  SALES
 OR  CHARGES  TO BE ALLOCATED TO THE CITY SHALL INCLUDE ALL SALES NEGOTI-
 ATED OR CONSUMMATED, AND CHARGES FOR SERVICES PERFORMED, BY AN EMPLOYEE,
 AGENT, AGENCY OR INDEPENDENT CONTRACTOR CHIEFLY SITUATED  AT,  CONNECTED
 BY  CONTRACT OR OTHERWISE WITH, OR SENT OUT FROM, OFFICES OR OTHER AGEN-
 CIES OF THE TRADE OR BUSINESS FROM WHICH  A  TAXPAYER  IS  DERIVING  NET
 EARNINGS FROM SELF-EMPLOYMENT, SITUATED WITHIN THE CITY.
   (C) OTHER ALLOCATION METHODS.-- THE PORTION OF NET EARNINGS FROM SELF-
 EMPLOYMENT  ALLOCABLE TO THE CITY SHALL BE DETERMINED IN ACCORDANCE WITH
 RULES AND REGULATIONS OF THE ADMINISTRATOR IF IT  SHALL  APPEAR  TO  THE
 ADMINISTRATOR  THAT THE NET EARNINGS FROM SELF-EMPLOYMENT ARE NOT FAIRLY
 AND EQUITABLY REFLECTED UNDER THE PROVISIONS OF SUBSECTION (B).
   (D)  SPECIAL RULES FOR REAL ESTATE.-- INCOME AND DEDUCTIONS  FROM  THE
 RENTAL  OF  REAL  PROPERTY  AND GAIN AND LOSS FROM THE SALE, EXCHANGE OR
 OTHER DISPOSITION OF REAL PROPERTY, SHALL NOT BE SUBJECT  TO  ALLOCATION
 UNDER SUBSECTION (B) OR (C), BUT SHALL BE CONSIDERED AS ENTIRELY DERIVED
 FROM OR CONNECTED WITH THE PLACE IN WHICH SUCH PROPERTY IS LOCATED.
   SEC. 5.  ACCOUNTING PERIODS AND METHODS.--(A)  ACCOUNTING PERIODS.-- A
 TAXPAYER'S TAXABLE YEAR UNDER THIS LOCAL LAW SHALL BE THE SAME AS HIS OR
 HER TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.

 A. 3998                             8
 
   (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 OR TWO-A  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, NINETEEN  HUNDRED  SIXTY-SIX,
 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. 6.  WITHHOLDING OF TAX ON WAGES.--GENERAL.--ON OR AFTER THE FIRST
 PAYROLL PERIOD BEGINNING FORTY-FIVE DAYS AFTER THE DATE THIS  LOCAL  LAW
 BECOMES  EFFECTIVE  EVERY  EMPLOYER MAINTAINING AN OFFICE OR TRANSACTING
 BUSINESS WITHIN THIS STATE AND MAKING PAYMENT OF ANY WAGES TAXABLE UNDER
 THIS LOCAL LAW SHALL DEDUCT  AND  WITHHOLD  FROM  SUCH  WAGES  FOR  EACH
 PAYROLL  PERIOD  A  TAX  COMPUTED IN SUCH MANNER AS TO RESULT, SO FAR AS
 PRACTICABLE, IN WITHHOLDING FROM THE EMPLOYEE'S WAGES DURING EACH CALEN-
 DAR YEAR AN AMOUNT SUBSTANTIALLY EQUIVALENT TO THE TAX REASONABLY  ESTI-
 MATED  TO  BE DUE FROM THE EMPLOYEE UNDER THIS LOCAL LAW.  THE METHOD OF
 DETERMINING THE AMOUNT TO BE WITHHELD SHALL BE PRESCRIBED BY REGULATIONS
 OF THE ADMINISTRATOR.
   SEC. 7. WITHHOLDING OF TAX ON WAGES FOR TAXABLE PERIODS COMMENCING  ON
 OR  AFTER  JANUARY  FIRST, NINETEEN HUNDRED SEVENTY-SIX.--THE PROVISIONS
 CONTAINED IN SECTIONS SIX, EIGHT, NINE, TEN, ELEVEN AND TWELVE  OF  THIS
 LOCAL  LAW  SHALL NOT BE APPLICABLE TO TAXES IMPOSED FOR TAXABLE PERIODS
 COMMENCING ON OR  AFTER  JANUARY  FIRST,  NINETEEN  HUNDRED  SEVENTY-SIX
 PROVIDED HOWEVER, WITH RESPECT TO SUCH PERIODS, THE PROVISIONS CONTAINED
 IN  PART  FIVE  OF ARTICLE TWENTY-TWO OF THE TAX LAW SHALL BE APPLICABLE
 WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN  INCORPO-
 RATED  IN  FULL  IN  THIS  SECTION  EXCEPT  WHERE  INCONSISTENT WITH THE
 PROVISIONS OF THIS ARTICLE, EXCEPT  THAT  THE  TERM  "AGGREGATE  AMOUNT"
 CONTAINED  IN PARAGRAPHS ONE, TWO AND THREE OF SUBSECTION (A) OF SECTION
 SIX HUNDRED SEVENTY-FOUR OF THE TAX LAW SHALL MEAN THE AGGREGATE OF  THE
 AGGREGATE  AMOUNTS  OF NEW YORK STATE PERSONAL INCOME TAX, CITY EARNINGS
 TAX ON NONRESIDENTS AND CITY PERSONAL INCOME TAX ON RESIDENTS AUTHORIZED

 A. 3998                             9
 
 PURSUANT TO ARTICLE THIRTY OF THE TAX LAW REQUIRED TO  BE  DEDUCTED  AND
 WITHHELD  AND  PROVIDED, HOWEVER, THAT THE PROVISIONS OF SUCH PARAGRAPHS
 SHALL NOT BE APPLICABLE TO EMPLOYER'S RETURNS REQUIRED TO BE FILED  WITH
 RESPECT  TO TAXES REQUIRED TO BE DEDUCTED AND WITHHELD DURING THE CALEN-
 DAR YEAR  NINETEEN  HUNDRED  SEVENTY-SIX,  BUT  SUCH  RETURNS  SHALL  BE
 REQUIRED  TO  BE  FILED WITH THE COMMISSIONER OF TAXATION AND FINANCE AT
 THE TIMES AND IN THE MANNER PROVIDED FOR IN SUBSECTION  (A)  OF  SECTION
 TEN  OF  THIS  LOCAL  LAW,  EXCEPT  THE  TERM  "ADMINISTRATOR"  IN  SUCH
 SUBSECTION SHALL BE READ AS "COMMISSIONER OF TAXATION AND FINANCE."
   SEC.  8. INFORMATION STATEMENT FOR EMPLOYEE.--EVERY EMPLOYER  REQUIRED
 TO  DEDUCT  AND  WITHHOLD  TAX UNDER THIS LOCAL LAW FROM THE WAGES OF AN
 EMPLOYEE, SHALL FURNISH TO EACH SUCH EMPLOYEE IN RESPECT  OF  THE  WAGES
 PAID  BY  SUCH  EMPLOYER TO SUCH EMPLOYEE DURING THE CALENDAR YEAR ON OR
 BEFORE FEBRUARY FIFTEENTH OF THE SUCCEEDING YEAR,  OR,  IF  HIS  OR  HER
 EMPLOYMENT  IS TERMINATED BEFORE THE CLOSE OF SUCH CALENDAR YEAR, WITHIN
 THIRTY DAYS FROM THE DATE ON WHICH THE LAST  PAYMENT  OF  THE  WAGES  IS
 MADE, A WRITTEN STATEMENT AS PRESCRIBED BY THE ADMINISTRATOR SHOWING THE
 TOTAL  AMOUNT  OF WAGES PAID BY THE EMPLOYER TO THE EMPLOYEE, THE AMOUNT
 OF WAGES PAID  FOR  SERVICES  PERFORMED  WITHIN  THE  CITY,  THE  AMOUNT
 DEDUCTED AND WITHHELD AS TAX, AND SUCH OTHER INFORMATION AS THE ADMINIS-
 TRATOR MAY PRESCRIBE.
   SEC. 9.  CREDIT FOR TAX WITHHELD.--WAGES UPON WHICH TAX IS REQUIRED TO
 BE  WITHHELD  SHALL BE TAXABLE UNDER THIS LOCAL LAW AS IF NO WITHHOLDING
 WERE REQUIRED, BUT ANY AMOUNT OF  TAX  ACTUALLY  DEDUCTED  AND  WITHHELD
 UNDER  THIS  LOCAL LAW IN ANY CALENDAR YEAR SHALL BE DEEMED TO HAVE BEEN
 PAID ON BEHALF OF THE EMPLOYEE FROM WHOM  WITHHELD,  AND  SUCH  EMPLOYEE
 SHALL  BE  CREDITED WITH HAVING PAID THAT AMOUNT OF TAX IN SUCH CALENDAR
 YEAR.  FOR A TAXABLE YEAR OF LESS THAN TWELVE MONTHS, THE  CREDIT  SHALL
 BE MADE UNDER REGULATIONS OF THE ADMINISTRATOR.
   SEC. 10.  EMPLOYER'S RETURN AND PAYMENT OF WITHHELD TAXES.--(A) GENER-
 AL.--ON  OR  AFTER  THE  FIRST  PAYROLL PERIOD BEGINNING FORTY-FIVE DAYS
 AFTER THE EFFECTIVE DATE OF THIS LOCAL LAW, EVERY EMPLOYER  REQUIRED  TO
 DEDUCT  AND  WITHHOLD  TAX UNDER THIS LOCAL LAW SHALL, FOR EACH CALENDAR
 MONTH, ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING  THE  CLOSE
 OF  SUCH  CALENDAR  MONTH FILE A WITHHOLDING RETURN AS PRESCRIBED BY THE
 ADMINISTRATOR AND PAY OVER TO THE ADMINISTRATOR  OR  TO  THE  DEPOSITORY
 DESIGNATED  BY  THE  ADMINISTRATOR, THE TAXES SO REQUIRED TO BE DEDUCTED
 AND WITHHELD, EXCEPT THAT FOR THE MONTH OF  DECEMBER  IN  ANY  YEAR  THE
 RETURNS  SHALL  BE FILED AND THE TAXES PAID ON OR BEFORE JANUARY THIRTY-
 FIRST OF THE SUCCEEDING YEAR.  WHERE THE AGGREGATE AMOUNT REQUIRED TO BE
 DEDUCTED AND WITHHELD BY ANY EMPLOYER UNDER THIS LOCAL LAW AND UNDER ANY
 LOCAL LAW IMPOSING A TAX ON PERSONAL INCOME OF  RESIDENTS  OF  THE  CITY
 ADOPTED  BY  THE  CITY PURSUANT TO AUTHORITY GRANTED BY THE GENERAL CITY
 LAW IS LESS THAN TWENTY-FIVE DOLLARS IN A CALENDAR MONTH AND THE  AGGRE-
 GATE  OF  SUCH TAXES FOR THE SEMI-ANNUAL PERIOD ENDING ON JUNE THIRTIETH
 AND DECEMBER THIRTY-FIRST CAN REASONABLY BE EXPECTED TO BE LESS THAN ONE
 HUNDRED FIFTY DOLLARS, THE ADMINISTRATOR MAY, BY REGULATION,  PERMIT  AN
 EMPLOYER  TO  FILE A RETURN ON OR BEFORE JULY THIRTY-FIRST FOR THE SEMI-
 ANNUAL PERIOD ENDING ON JUNE THIRTIETH AND ON OR BEFORE JANUARY  THIRTY-
 FIRST  FOR  THE SEMI-ANNUAL PERIOD ENDING ON DECEMBER THIRTY-FIRST.  THE
 ADMINISTRATOR MAY, IF HE OR SHE BELIEVES SUCH ACTION NECESSARY  FOR  THE
 PROTECTION  OF  THE  REVENUES, REQUIRE ANY EMPLOYER TO MAKE A RETURN AND
 PAY TO HIM THE TAX DEDUCTED AND WITHHELD AT ANY TIME, OR  FROM  TIME  TO
 TIME.    WHERE THE AMOUNT OF WAGES PAID BY AN EMPLOYER IS NOT SUFFICIENT
 UNDER THIS LOCAL LAW AND UNDER ANY LOCAL LAW IMPOSING A TAX ON  PERSONAL
 INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORI-

 A. 3998                            10
 
 TY  GRANTED  BY  THE  GENERAL CITY LAW TO REQUIRE THE WITHHOLDING OF TAX
 FROM THE WAGES OF ANY OF HIS OR HER EMPLOYEES, THE ADMINISTRATOR MAY, BY
 REGULATION, PERMIT SUCH EMPLOYER TO FILE AN ANNUAL RETURN ON  OR  BEFORE
 FEBRUARY TWENTY-EIGHTH OF THE FOLLOWING CALENDAR YEAR.
   (B)    COMBINED  RETURNS.--THE ADMINISTRATOR MAY BY REGULATION PROVIDE
 FOR THE FILING OF ONE RETURN WHICH SHALL INCLUDE THE RETURN REQUIRED  TO
 BE  FILED  UNDER  THIS  SECTION,  TOGETHER  WITH  THE  EMPLOYER'S RETURN
 REQUIRED TO BE FILED UNDER ANY LOCAL LAW  IMPOSING  A  TAX  ON  PERSONAL
 INCOME OF RESIDENTS OF THE CITY ADOPTED BY THE CITY PURSUANT TO AUTHORI-
 TY GRANTED BY THE GENERAL CITY LAW.
   (C)    DEPOSIT  IN  TRUST  FOR  CITY.--WHENEVER  ANY EMPLOYER FAILS TO
 COLLECT, TRUTHFULLY ACCOUNT FOR, PAY OVER THE TAX, OR  MAKE  RETURNS  OF
 THE  TAX  AS  REQUIRED  IN  THIS  SECTION, THE ADMINISTRATOR MAY SERVE A
 NOTICE REQUIRING SUCH EMPLOYER TO COLLECT THE TAXES WHICH BECOME COLLEC-
 TIBLE AFTER SERVICE OF SUCH NOTICE, TO DEPOSIT  SUCH  TAXES  IN  A  BANK
 APPROVED  BY  THE ADMINISTRATOR, IN A SEPARATE ACCOUNT, IN TRUST FOR THE
 CITY AND PAYABLE TO THE ADMINISTRATOR, AND TO KEEP THE  AMOUNT  OF  SUCH
 TAX  IN  SUCH  ACCOUNT  UNTIL  PAYMENT OVER TO THE ADMINISTRATOR.   SUCH
 NOTICE SHALL REMAIN IN EFFECT UNTIL A NOTICE OF CANCELLATION  IS  SERVED
 BY THE ADMINISTRATOR.
   SEC.  11.    EMPLOYER'S  LIABILITY FOR WITHHELD TAXES.--EVERY EMPLOYER
 REQUIRED TO DEDUCT AND WITHHOLD THE TAX UNDER THIS LOCAL LAW  IS  HEREBY
 MADE  LIABLE  FOR SUCH TAX.   FOR PURPOSES OF ASSESSMENT AND COLLECTION,
 ANY AMOUNT REQUIRED TO BE WITHHELD AND PAID OVER TO  THE  ADMINISTRATOR,
 AND  ANY  ADDITIONS  TO TAX, PENALTIES AND INTEREST WITH RESPECT THERETO
 SHALL BE CONSIDERED THE TAX OF THE EMPLOYER.  ANY AMOUNT OF TAX ACTUALLY
 DEDUCTED AND WITHHELD UNDER THIS LOCAL LAW SHALL BE HELD TO BE A SPECIAL
 FUND IN TRUST FOR THE CITY.
   NO EMPLOYEE SHALL HAVE ANY RIGHT OF ACTION AGAINST HIS OR HER EMPLOYER
 IN RESPECT TO ANY MONIES DEDUCTED AND WITHHELD FROM HIS OR HER WAGES AND
 PAID OVER TO THE ADMINISTRATOR IN COMPLIANCE OR IN  INTENDED  COMPLIANCE
 WITH THIS LOCAL LAW.
   SEC.  12.    EMPLOYER'S  FAILURE TO WITHHOLD.--IF AN EMPLOYER FAILS TO
 DEDUCT AND WITHHOLD THE TAX, AS REQUIRED, AND THEREAFTER THE TAX AGAINST
 WHICH SUCH TAX MAY BE CREDITED IS  PAID,  THE  TAX  SO  REQUIRED  TO  BE
 DEDUCTED  AND WITHHELD SHALL NOT BE COLLECTED FROM THE EMPLOYER, BUT THE
 EMPLOYER SHALL NOT BE RELIEVED FROM LIABILITY FOR ANY PENALTIES,  INTER-
 EST  OR  ADDITIONS  TO  THE  TAX OTHERWISE APPLICABLE IN RESPECT OF SUCH
 FAILURE TO DEDUCT AND WITHHOLD.
   SEC. 13.  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
 PROVIDE  FOR  ADDITIONAL LIMITATIONS ON AND CONDITIONS AND PREREQUISITES
 TO THE PRIVILEGE OF NOT FILING A RETURN.
   SEC. 14. COMBINED RETURNS, EMPLOYER'S RETURNS AND PAYMENTS.--THE STATE
 TAX COMMISSION MAY REQUIRE:
   (1) THE FILING OF ANY OR ALL OF THE FOLLOWING:

 A. 3998                            11
 
   (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
 THIS  ARTICLE,  ARTICLE  THIRTY  OF  THE  TAX  LAW  AND  PURSUANT TO THE
 PROVISIONS OF ARTICLE TWENTY-TWO OF THE TAX LAW.
   SEC. 15.  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,  EXCEPT  THAT  WITH RESPECT TO ANY TAXABLE YEAR BEGINNING IN
 NINETEEN HUNDRED SEVENTY, UNTIL AND INCLUDING THE  THIRTY-FIRST  DAY  OF
 DECEMBER,  NINETEEN  HUNDRED SEVENTY-ONE, ANY LOCAL LAW ADOPTED PURSUANT
 TO THIS ARTICLE SHALL CONTAIN THE SAME PROVISIONS AS  ARE  CONTAINED  IN
 CHAPTER  NINETEEN OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY
 OF NEW YORK, BUT "ADMINISTRATOR" SHALL BE READ "STATE  TAX  COMMISSION";
 "ADMINISTRATIVE  AGENCIES  OF THE CITY" SHALL BE READ AS "ADMINISTRATIVE
 AGENCIES OF THE STATE"; "DEPOSITORIES OR FINANCIAL AGENTS OF  THE  CITY"
 SHALL BE READ AS "DEPOSITORIES OR FINANCIAL AGENTS OF THE STATE"; "OFFI-
 CERS  OR  EMPLOYEES  OF  THE DEPARTMENT OF FINANCE OF THE CITY" SHALL BE
 READ "OFFICERS OR EMPLOYEES OF THE  STATE  DEPARTMENT  OF  TAXATION  AND
 FINANCE"; IN SECTIONS 11-1934, 11-1936, 11-1939, AND 11-1942 (EXCEPT FOR
 THE  LAST  SENTENCE  THEREOF) OF CHAPTER NINETEEN OF TITLE ELEVEN OF THE
 ADMINISTRATIVE CODE OF THE CITY OF NEW YORK  "CITY"  SHALL  BE  READ  AS
 "STATE";  "CORPORATION COUNSEL OR OTHER APPROPRIATE OFFICER OF THE CITY"
 OR "CORPORATION COUNSEL OF THE CITY" SHALL BE READ  AS  "STATE  ATTORNEY
 GENERAL";  AND  THE  WORDS  "IT"  OR  "ITS"  SHALL  APPLY INSTEAD OF THE
 PRONOUNS USED WHERE THE REFERENCE IS TO STATE TAX COMMISSION.  PROVIDED,
 HOWEVER,  WITH  RESPECT TO DECLARATIONS OF ESTIMATED TAX AND PAYMENTS OF
 SUCH TAX AND THE WITHHOLDING TAX REQUIREMENTS, UNTIL AND  INCLUDING  THE
 THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN HUNDRED SEVENTY-ONE, ANY SUCH

 A. 3998                            12
 
 TERMS SHALL BE SO READ WITH RESPECT TO ANY TAXABLE YEAR OR OTHER  PERIOD
 BEGINNING IN NINETEEN HUNDRED SEVENTY-ONE.
   (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
 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) BULK SALES.-- SUCH LOCAL LAW MAY CONTAIN A PROVISION SUBSTANTIALLY
 THE SAME AS THE FOLLOWING:
   WHENEVER  THERE  IS MADE A SALE, TRANSFER OR ASSIGNMENT IN BULK OF ANY
 PART OR THE WHOLE OF A STOCK OF MERCHANDISE OR OF FIXTURES, OR  MERCHAN-
 DISE AND OF FIXTURES PERTAINING TO THE CONDUCTING OF THE BUSINESS OF THE

 A. 3998                            13
 
 SELLER,  TRANSFERRER  OR ASSIGNOR, OTHERWISE THAN IN THE ORDINARY COURSE
 OF TRADE AND IN THE REGULAR PROSECUTION OF SAID BUSINESS, THE PURCHASER,
 TRANSFEREE OR ASSIGNEE SHALL AT LEAST TEN DAYS BEFORE TAKING  POSSESSION
 OF  SUCH  MERCHANDISE,  FIXTURES, OR MERCHANDISE AND FIXTURES, OR PAYING
 THEREFOR, NOTIFY THE ADMINISTRATOR BY REGISTERED MAIL  OF  THE  PROPOSED
 SALE  AND OF THE PRICE, TERMS AND CONDITIONS THEREOF, WHETHER OR NOT THE
 SELLER, TRANSFERRER OR ASSIGNOR, HAS REPRESENTED  TO,  OR  INFORMED  THE
 PURCHASER, TRANSFEREE OR ASSIGNEE, THAT IT OWES ANY TAX PURSUANT TO THIS
 LOCAL  LAW,  WHETHER  OR  NOT  THE PURCHASER, TRANSFEREE OR ASSIGNEE HAS
 KNOWLEDGE THAT SUCH TAXES ARE OWING, AND WHETHER OR NOT ANY  SUCH  TAXES
 ARE IN FACT OWING.
   WHENEVER  THE PURCHASER, TRANSFEREE OR ASSIGNEE SHALL FAIL TO GIVE THE
 NOTICE TO THE ADMINISTRATOR REQUIRED  BY  THE  PRECEDING  PARAGRAPH,  OR
 WHENEVER  THE  ADMINISTRATOR  SHALL  INFORM THE PURCHASER, TRANSFEREE OR
 ASSIGNEE THAT A POSSIBLE CLAIM FOR SUCH TAX OR TAXES EXISTS, ANY SUMS OF
 MONEY, PROPERTY OR CHOSES IN ACTION, OR OTHER CONSIDERATION,  WHICH  THE
 PURCHASER,  TRANSFEREE  OR  ASSIGNEE IS REQUIRED TO TRANSFER OVER TO THE
 SELLER, TRANSFERRER OR ASSIGNOR SHALL BE SUBJECT  TO  A  FIRST  PRIORITY
 RIGHT  AND  LIEN FOR ANY SUCH TAXES THERETOFORE OR THEREAFTER DETERMINED
 TO BE DUE FROM THE SELLER, TRANSFERRER OR ASSIGNOR TO THE CITY, AND  THE
 PURCHASER,  TRANSFEREE OR ASSIGNEE IS FORBIDDEN TO TRANSFER TO THE SELL-
 ER, TRANSFERRER OR ASSIGNOR ANY SUCH SUMS OF MONEY, PROPERTY  OR  CHOSES
 IN  ACTION TO THE EXTENT OF THE AMOUNT OF THE CITY'S CLAIM.  FOR FAILURE
 TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION THE PURCHASER,  TRANS-
 FEREE OR ASSIGNEE, IN ADDITION TO BEING SUBJECT TO LIABILITIES AND REME-
 DIES IMPOSED UNDER ANY PROVISIONS OF LAW, SHALL BE PERSONALLY LIABLE FOR
 THE  PAYMENT  TO  THE  CITY OF ANY SUCH TAXES, THERETOFORE OR THEREAFTER
 DETERMINED TO BE DUE TO THE CITY FROM THE SELLER, TRANSFERRER OR  ASSIG-
 NOR  AND  SUCH LIABILITY MAY BE ASSESSED AND ENFORCED IN THE SAME MANNER
 AS THE LIABILITY FOR TAX IS IMPOSED UNDER THIS LOCAL LAW.
   (D) 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.
   (E) THE PROVISIONS CONTAINED IN SUBSECTIONS  (A),  (B),  (C)  AND  (D)
 SHALL  NOT BE APPLICABLE WITH RESPECT TO TAXES IMPOSED FOR TAXABLE PERI-
 ODS COMMENCING ON OR AFTER JANUARY FIRST, NINETEEN  HUNDRED  SEVENTY-SIX
 BUT,  WITH  RESPECT  TO  THE TAX IMPOSED FOR SUCH PERIODS THE PROVISIONS
 CONTAINED IN PART SIX OF ARTICLE TWENTY-TWO OF THE TAX LAW AND  SECTIONS
 SIX  HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, SIX HUNDRED SIXTY-TWO
 AND THIRTEEN HUNDRED ELEVEN OF THE TAX LAW INCLUDING THE  PROVISIONS  OF
 JUDICIAL REVIEW BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL
 PRACTICE  LAW  AND  RULES  SHALL  BE  APPLICABLE WITH THE SAME FORCE AND
 EFFECT AS IF THOSE PROVISIONS HAD BEEN  INCORPORATED  IN  FULL  IN  THIS
 SECTION EXCEPT WHERE INCONSISTENT WITH THE PROVISIONS OF THIS LOCAL LAW.
   § 25-O. DEPOSIT  AND  DISPOSITION OF REVENUES. REVENUES RESULTING FROM
 THE IMPOSITION OF THE TAX AUTHORIZED BY THIS ARTICLE SHALL BE 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. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, NINETEEN
 HUNDRED  SEVENTY-SIX 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.

 A. 3998                            14
 
   § 4. Section 1301 of the tax law is amended by adding a new subsection
 (c) to read as follows:
   (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.
   §  5.  The  real  property  tax law is amended by adding a new section
 556-a to read as follows:
   § 556-A. CREDIT AGAINST CITY EARNINGS TAXES.  1.  ANY  PERSON  WHO  IS
 REQUIRED  TO  PAY  A  CITY EARNINGS TAX PURSUANT TO ARTICLE TWO-E OF THE
 GENERAL CITY LAW SHALL BE GIVEN A REAL PROPERTY TAX CREDIT AGAINST  REAL
 PROPERTY  TAXATION  AND  SPECIAL AD VALOREM LEVIES IN AN AMOUNT EQUAL TO
 THE AMOUNT OF SUCH CITY EARNINGS TAX ACTUALLY PAID BY THE PERSON.
   2. SUCH CREDIT MAY BE TRANSFERRED FROM A TENANT TO AN OWNER IN LIEU OF
 ALL, OR A PORTION OF, RENTAL PAYMENTS DUE TO THE OWNER.  THE  OWNER  MAY
 THEN  USE SUCH CREDIT TO LOWER HIS OR HER REAL PROPERTY TAX LIABILITY ON
 THE RENTAL PROPERTY.
   3. THE COMMISSIONER SHALL ESTABLISH THE PROPER  PROCEDURE  FOR  TRANS-
 FERRING  ANY  REAL  PROPERTY CREDITS PURSUANT TO THIS SECTION, AND SHALL
 CREATE ALL APPROPRIATE PAPERWORK TO BE SIGNED AND/OR FILED BY THE TENANT
 AND PROPERTY OWNER.
   § 6. The tax authorized by this act shall  allow  a  dollar-for-dollar
 tax  credit  for  commuters  which  shall be applied to their local real
 property tax bill at their local tax assessor's office.
   § 7. All local tax assessors and real property offices which subscribe
 to New York state municipal law, are subject to New York state subpoenas
 and participate in the New York state STAR program shall be entitled  to
 full reimbursement of funds dispersed.
   §  8. A metropolitan transit authority (MTA) infrastructure bank shall
 be created to fund capital improvements to the MTA system-wide with  the
 ability  for  the MTA infrastructure bank to issue both taxable and non-
 taxable revenue bonds in the municipal marketplace.
   Net revenues generated from nonresident earnings tax collected by  the
 New  York  state tax department to be directed to the MTA infrastructure
 bank biannually to coordinate with bonded debt service obligations.
   § 9. 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 controversy in  which  such
 judgment shall have been rendered.
   §  10.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after July 1,  1999.  The  tax
 authorized, administered, enforced and levied in accordance with article
 2-E  and subsection (h) of section 1 of section 25-m of the general city
 law, and subsection (c) of section 1301 and subsection  (b)  of  section
 1305 of the tax law shall be continuously computed and shall be adminis-
 tered,  enforced, and levied as if chapter 5 of the laws of 1999 had not
 been enacted. 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.