LBD11907-02-9
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REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO ALL
COVERED EMPLOYEES.
(C) COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE WHO IS
EMPLOYED IN A CITY WITH A POPULATION OF ONE MILLION OR MORE.
§ 861. IMPOSITION OF TAX AND RATE. FOR THE PURPOSE OF PROVIDING AN
ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE TO ADDRESS CHILD
CARE AFFORDABILITY, ACCESSIBILITY, AND QUALITY FOR FAMILIES WITH CHIL-
DREN FOUR YEARS OF AGE AND UNDER IN A CITY WITH A POPULATION OF ONE
MILLION OR MORE, A TAX IS HEREBY IMPOSED ON EMPLOYERS AND INDIVIDUALS AS
FOLLOWS: FOR EMPLOYERS WHO ENGAGE IN BUSINESS IN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE, THE TAX IS IMPOSED AT A RATE OF (A)
FIFTEEN HUNDREDTHS (.15) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS
WITH PAYROLL EXPENSE GREATER THAN TWO MILLION FIVE HUNDRED THOUSAND
DOLLARS AND NO GREATER THAN FIVE MILLION DOLLARS IN ANY CALENDAR YEAR,
(B) EIGHTEEN HUNDREDTHS (.18) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOY-
ERS WITH PAYROLL EXPENSE GREATER THAN FIVE MILLION DOLLARS AND NO GREAT-
ER THAN TEN MILLION DOLLARS IN ANY CALENDAR YEAR, AND (C) TWENTY-TWO
HUNDREDTHS (.22) PERCENT OF THE PAYROLL EXPENSE FOR EMPLOYERS WITH
PAYROLL EXPENSE IN EXCESS OF TEN MILLION DOLLARS IN ANY CALENDAR YEAR.
IF THE EMPLOYER IS A PROFESSIONAL EMPLOYER ORGANIZATION, AS DEFINED IN
SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S TAX SHALL
BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE ATTRIBUTABLE TO EACH
CLIENT WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT WITH SUCH
ORGANIZATION AND THE PAYROLL EXPENSE ATTRIBUTABLE TO SUCH ORGANIZATION
ITSELF, MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS BY THE APPLI-
CABLE RATE SET FORTH IN THIS PARAGRAPH AND ADDING THOSE PRODUCTS TOGETH-
ER.
§ 862. PASS THROUGH OF TAX PROHIBITED. 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.
§ 863. EXEMPTION OVERRIDE. (A) EXCEPT AS PROVIDED IN SUBDIVISION (B)
OF THIS SECTION, ANY EXEMPTION FROM TAX SPECIFIED IN ANY OTHER NEW YORK
STATE LAW WILL NOT APPLY TO THE TAX IMPOSED BY THIS ARTICLE.
(B) IF A TAX-FREE NY AREA APPROVED PURSUANT TO THE PROVISIONS OF ARTI-
CLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW IS LOCATED WITHIN A CITY
WITH A POPULATION OF ONE MILLION OR MORE, THE PAYROLL EXPENSE IN SUCH
TAX-FREE NY AREA OF ANY EMPLOYER THAT IS LOCATED IN SUCH AREA AND
ACCEPTED INTO THE START-UP NY PROGRAM SHALL BE EXEMPT FROM THE TAX
IMPOSED UNDER THIS ARTICLE.
§ 864. PAYMENT OF TAX. EMPLOYERS WITH PAYROLL EXPENSE. THE TAX IMPOSED
ON THE PAYROLL EXPENSE OF EMPLOYERS UNDER SECTION EIGHT HUNDRED SIXTY-
ONE OF THIS ARTICLE MUST BE PAID AT THE SAME TIME THE EMPLOYER IS
REQUIRED TO REMIT PAYMENTS UNDER SECTION SIX HUNDRED SEVENTY-FOUR OF
THIS CHAPTER; PROVIDED HOWEVER, THAT 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 ELECTRONIC FUNDS TRANSFER SYSTEM
AUTHORIZED BY SECTION NINE OF THIS CHAPTER.
§ 865. DEPOSIT AND DISPOSITION OF REVENUE. (A) THE TAXES, INTEREST,
AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE
COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER,
TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE COMMISSIONER OF THE
OFFICE OF CHILDREN AND FAMILY SERVICES. 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 COMPTROLLER. THE
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COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES.
OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMP-
TROLLER 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 COMPTROLLER, A
REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF
THE DEPARTMENT TO REIMBURSE THE DEPARTMENT FOR THE COSTS INCURRED TO
ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES 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 SUBSECTION (A) OF THIS
SECTION, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF
ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH AS A RESULT OF THE
TAXES, 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 WITHOUT APPROPRIATION INTO
THE NEW YORK CITY QUALITY CHILD CARE FUND ESTABLISHED PURSUANT TO
SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW, PROVIDED, HOWEVER, THAT
THE COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE NEW YORK CITY
QUALITY CHILD CARE FUND WHICH ARE DUE TO BE PAID BY THE FINAL BUSINESS
DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBSECTION SHALL BE
RECEIVED BY THE NEW YORK CITY QUALITY CHILD CARE FUND ON THE SAME BUSI-
NESS DAY IN WHICH IT IS PAID.
§ 866. 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.
(B) COMBINED FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
ARTICLE:
(1) THE COMMISSIONER MAY REQUIRE THE FILING OF A COMBINED RETURN WHICH
MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED TO BE FILED BY A TAXPAYER
PURSUANT TO THE PROVISIONS OF SECTION SIX HUNDRED FIFTY-ONE OF THIS
CHAPTER AND WHICH MAY BE REQUIRED TO BE FILED BY SUCH TAXPAYER PURSUANT
TO ANY LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY,
THIRTY-A OR THIRTY-B OF THIS CHAPTER.
(2) WHERE A COMBINED RETURN IS REQUIRED, AND WITH RESPECT TO THE
PAYMENT OF ESTIMATED TAX, THE COMMISSIONER MAY ALSO REQUIRE THE PAYMENT
TO IT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF THE AMOUNTS
(TOTAL TAXES LESS ANY CREDITS OR REFUNDS) WHICH WOULD HAVE BEEN REQUIRED
TO BE PAID WITH THE RETURNS OR IN PAYMENT OF ESTIMATED TAX PURSUANT TO
THE PROVISIONS OF THIS ARTICLE, THE PROVISIONS OF ARTICLE TWENTY-TWO OF
THIS CHAPTER, AND THE PROVISIONS OF LOCAL LAWS ENACTED UNDER THE AUTHOR-
ITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER.
(3) 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.
§ 867. ENFORCEMENT WITH OTHER TAXES. (A) JOINT ASSESSMENT. IF THERE IS
ASSESSED A TAX UNDER THIS ARTICLE AND THERE IS ALSO ASSESSED A TAX
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AGAINST THE SAME TAXPAYER PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER
OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
TY, ARTICLE THIRTY-A, OR ARTICLE THIRTY-B OF THIS CHAPTER, AND PAYMENT
OF A SINGLE AMOUNT IS REQUIRED UNDER THE PROVISIONS OF THIS ARTICLE,
SUCH PAYMENT SHALL BE DEEMED TO HAVE BEEN MADE WITH RESPECT TO THE TAXES
SO ASSESSED IN PROPORTION TO THE AMOUNTS OF SUCH TAXES DUE, INCLUDING
TAX, PENALTIES, INTEREST AND ADDITIONS TO TAX.
(B) JOINT ACTION. IF THE COMMISSIONER TAKES ACTION UNDER SUCH ARTICLE
TWENTY-TWO OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF
ARTICLE THIRTY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER WITH RESPECT TO
THE ENFORCEMENT AND COLLECTION OF THE TAX OR TAXES ASSESSED UNDER SUCH
ARTICLES, THE COMMISSIONER SHALL, WHENEVER POSSIBLE AND NECESSARY,
ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION UNDER SIMILAR ENFORCEMENT
AND COLLECTION PROVISIONS OF THE TAX IMPOSED BY THIS ARTICLE.
(C) APPORTIONMENT OF MONEYS COLLECTED BY JOINT ACTION. ANY MONEYS
COLLECTED AS A RESULT OF SUCH JOINT ACTION SHALL BE DEEMED TO HAVE BEEN
COLLECTED IN PROPORTION TO THE AMOUNTS DUE, INCLUDING TAX, PENALTIES,
INTEREST AND ADDITIONS TO TAX, UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER
OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
TY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER AND THE TAX IMPOSED BY THIS
ARTICLE.
(D) JOINT DEFICIENCY ACTION. WHENEVER THE COMMISSIONER TAKES ANY
ACTION WITH RESPECT TO A DEFICIENCY OF INCOME TAX UNDER ARTICLE TWENTY-
TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHOR-
ITY OF ARTICLE THIRTY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER, OTHER THAN
THE ACTION SET FORTH IN SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER
MAY IN HIS OR HER DISCRETION ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION
UNDER THIS ARTICLE.
§ 2. The state finance law is amended by adding a new section 99-hh to
read as follows:
§ 99-HH. NEW YORK CITY QUALITY CHILD CARE FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "NEW YORK
CITY QUALITY CHILD CARE FUND".
2. THE NEW YORK CITY QUALITY CHILD CARE FUND SHALL CONSIST OF MONEYS
RECEIVED BY THE STATE PURSUANT TO ARTICLE TWENTY-FOUR-A OF THE TAX LAW
AND ALL OTHER MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM
ANY OTHER FUND OR SOURCE.
3. MONEYS OF THE NEW YORK CITY QUALITY CHILD CARE FUND, FOLLOWING
APPROPRIATION BY THE LEGISLATURE AND ALLOCATION BY THE DIRECTOR OF THE
BUDGET, SHALL BE MADE AVAILABLE TO THE COMMISSIONER OF THE OFFICE OF
CHILDREN AND FAMILY SERVICES FOR THE PURPOSE OF ADDRESSING CHILD CARE
AFFORDABILITY, ACCESSIBILITY, AND QUALITY FOR FAMILIES WITH CHILDREN
FOUR YEARS OF AGE AND UNDER IN A CITY WITH A POPULATION OF ONE MILLION
OR MORE BY SUBSIDIZING THE COST TO PROVIDERS OF CONSTRUCTING CHILD CARE
FACILITIES, MEETING TRAINING REQUIREMENTS, EXPANDING CHILD CARE PROVID-
ERS' ACCESS TO PROFESSIONAL DEVELOPMENT AND COACHING, AND SUPPORTING
EDUCATION SCHOLARSHIPS.
§ 3. The sum of five hundred million dollars ($500,000,000), or so
much thereof as may be necessary, is hereby appropriated to the office
of children and family services out of the moneys in the state treasury
in the general fund to the credit of the New York city quality child
care fund established pursuant to section 99-hh of the state finance law
not otherwise appropriated, and made immediately available, for the
purpose of addressing child care affordability, accessibility, and qual-
ity for families with children four years of age and under in a city
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with a population of one million or more and carrying out the provisions
of this act. The office of children and family services shall develop a
request for applications soliciting potential applicants seeking assist-
ance for subsidizing the cost to providers of constructing child care
facilities, meeting training requirements, expanding child care provid-
ers' access to professional development and coaching, and providing
education scholarships for families with children four years of age and
under in a city with a population of one million or more. Funds for such
purpose shall be distributed over a period of five years; provided that
in the event that the commissioner of the office of children and family
services elects to discontinue the program after the initial five year
period, any remaining funding shall be returned to the state treasury to
the credit of the general fund.
§ 4. This act shall take effect immediately.