S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6143
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2019
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the tax law and the state finance law,  in  relation  to
   establishing  the  New York city quality child care tax; and providing
   for an appropriation therefor

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 24-A to read
 as follows:
                               ARTICLE 24-A
                     NEW YORK CITY QUALITY CHILD CARE
                                    TAX
 SECTION 860. DEFINITIONS.
         861. IMPOSITION OF TAX AND RATE.
         862. PASS THROUGH OF TAX PROHIBITED.
         863. EXEMPTION OVERRIDE.
         864. PAYMENT OF TAX.
         865. DEPOSIT AND DISPOSITION OF REVENUE.
         866. PROCEDURAL PROVISIONS.
         867. ENFORCEMENT WITH OTHER TAXES.
   § 860. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   (A)  EMPLOYER.  EMPLOYER  MEANS  AN  EMPLOYER  REQUIRED BY SECTION SIX
 HUNDRED SEVENTY-ONE OF THIS CHAPTER TO  DEDUCT  AND  WITHHOLD  TAX  FROM
 WAGES,  THAT HAS A PAYROLL EXPENSE IN EXCESS OF TWO MILLION FIVE HUNDRED
 THOUSAND DOLLARS IN ANY CALENDAR QUARTER; OTHER THAN
   (1) ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES;
   (2) THE UNITED NATIONS; OR
   (3) AN INTERSTATE AGENCY OR PUBLIC CORPORATION CREATED PURSUANT TO  AN
 AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA.
   (B)  PAYROLL  EXPENSE. PAYROLL EXPENSE MEANS WAGES AND COMPENSATION AS
 DEFINED IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE  (WITHOUT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11907-02-9

 S. 6143                             2
 
 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

 S. 6143                             3
 
 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

 S. 6143                             4
 
 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

 S. 6143                             5
 
 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.