S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4886
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2019
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  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
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (i) of section 612 of the tax law is REPEALED.
   §  2. Subdivision (i) of section 11-1712 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:
   (i)  In  the case of mines, oil and gas wells and other natural depos-
 its, any allowance for percentage  depletion  pursuant  to  section  six
 hundred  thirteen  or  section  six  hundred  thirteen A of the internal
 revenue code shall be added to federal adjusted gross  income.  However,
 with  respect  to  the  property  as  to  which such addition to federal
 adjusted gross income is required, an allowance for depletion  shall  be
 subtracted  from  federal adjusted gross income in the amount that would
 be deductible under section six hundred  eleven  of  such  code  if  the
 deduction for an allowance for depletion were computed without reference
 to  such section six hundred thirteen or section six hundred thirteen A.
 [With respect to the computation of depletion pursuant to this  subdivi-
 sion, the basis for such computation shall be the basis for state income
 tax  purposes  provided  for  in  subsection  (i) of section six hundred
 twelve of the tax law.] The portion of any gain from the sale  or  other
 disposition  of  such  property  having a higher adjusted basis for city
 income tax purposes than for federal income tax purposes, that does  not
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00107-01-9
              

 A. 4886                             2
 
 exceed  such  difference  in  basis,  shall  be  subtracted from federal
 adjusted gross income.
   §  3.  Paragraph 10 of subsection (b) of section 612 of the tax law is
 REPEALED.
   § 4. Paragraph 13 of subsection (c) of section 612 of the tax  law  is
 REPEALED.
   § 5. Subsection 4 of section 618 of the tax law, as amended by section
 9  of  part  C  of chapter 25 of the laws of 2009, is amended to read as
 follows:
   (4) There shall be added or  subtracted  (as  the  case  may  be)  the
 modifications  described  in  paragraphs  (6)[, (10)], (17), (18), (19),
 (20), (21), (22), (23), (24), (25), (26), (27), (29), (38) and  (39)  of
 subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21),
 (22),  (23),  (24), (25), (26) and (28) of subsection (c) of section six
 hundred twelve of this part.
   § 6. Subsection 4 of section 618 of the tax law, as separately amended
 by section 5 of part HH-1 of chapter 57 of the laws of 2008 and  section
 9  of  part  C  of chapter 25 of the laws of 2009, is amended to read as
 follows:
   (4) There shall be added or  subtracted  (as  the  case  may  be)  the
 modifications  described  in  paragraphs  (6)[, (10)], (17), (18), (19),
 (20), (21), (22), (23), (24), (25), (26), (27), [(28),] (29),  (38)  and
 (39)  of  subsection  (b)  and in paragraphs (11)[, (13)], (15), [(19),]
 (20), (21), (22), (23), (24), (25), (26) and (28) of subsection  (c)  of
 section six hundred twelve of this part.
   §  7.  This  act  shall take effect immediately and shall apply to all
 taxable years beginning on or after January 1, 2019; provided  that  the
 amendments to subsection 4 of section 618 of the tax law made by section
 five  of  this  act  shall be subject to the expiration and reversion of
 such subsection pursuant to section 8 of chapter  782  of  the  laws  of
 1988,  as  amended, when upon such date the provisions of section six of
 this act shall take effect.