LBD08173-07-1
A. 4663--C 2
RATION INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS AN S CORPO-
RATION FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIRE-
MENTS OF THIS SUBDIVISION.
(C) ELECTING PARTNERSHIP. ELECTING PARTNERSHIP MEANS ANY ELIGIBLE
PARTNERSHIP THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT
HUNDRED SIXTY-ONE OF THIS ARTICLE.
(D) ELECTING S CORPORATION. ELECTING S CORPORATION MEANS ANY ELIGIBLE
S CORPORATION THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION
EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE.
(E) TAXPAYER. TAXPAYER MEANS ANY ELECTING PARTNERSHIP OR ELECTING S
CORPORATION.
(F) PASS-THROUGH ENTITY TAX. PASS-THROUGH ENTITY TAX MEANS THE TOTAL
TAX IMPOSED BY THIS ARTICLE ON ELECTING PARTNERSHIPS AND ELECTING S
CORPORATIONS.
(G) PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO). PASS-
THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) MEANS:
(1) IN THE CASE OF AN ELECTING PARTNERSHIP, THE SUM OF (I) ITS SEPA-
RATELY AND NON-SEPARATELY COMPUTED ITEMS, AS DESCRIBED IN SECTION 702(A)
OF THE INTERNAL REVENUE CODE, TO THE EXTENT EARNED DIRECTLY BY SUCH
PARTNERSHIP; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSU-
ANT TO THIS ARTICLE BY A PARTNERSHIP TO THE EXTENT DEDUCTED IN COMPUTING
FEDERAL TAXABLE INCOME; (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX
IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE
YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF
SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN
COMPUTING FEDERAL TAXABLE INCOME; (IV) GUARANTEED PAYMENTS PAID BY THE
PARTNERSHIP TO ITS PARTNERS AS DESCRIBED IN SECTION 707(C) OF THE INTER-
NAL REVENUE CODE; AND (V) THE SUM OF ANY NEW YORK MODIFICATIONS UNDER
SUBSECTION (E) OF SECTION SIX HUNDRED FIFTEEN AND SECTION SIX HUNDRED
SEVENTEEN OF THIS CHAPTER.
(2) IN THE CASE OF AN ELECTING S CORPORATION, THE SUM OF (I) ITS SEPA-
RATELY AND NON-SEPARATELY COMPUTED ITEMS, AS DESCRIBED IN SECTION
1366(A) OF THE INTERNAL REVENUE CODE, WHETHER EARNED BY SUCH S CORPO-
RATION OR BY A PARTNERSHIP OF WHICH THE S CORPORATION IS A PARTNER; (II)
TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSUANT TO THIS ARTICLE
BY AN S CORPORATION TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL ORDINARY
INCOME; (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO
THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE YEAR TO ANOTHER STATE
OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE
DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE
INCOME; AND (IV) THE SUM OF ANY NEW YORK MODIFICATIONS UNDER SUBSECTION
(E) OF SECTION SIX HUNDRED FIFTEEN AND SECTION SIX HUNDRED SEVENTEEN OF
THIS CHAPTER.
(H) PARTNERSHIP TAXABLE INCOME. PARTNERSHIP TAXABLE INCOME OF AN
ELECTING PARTNERSHIP MEANS THE SUM OF (1) THE PRODUCT OF (I) THE ELECT-
ING PARTNERSHIP'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO),
ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (B) OF SECTION EIGHT
HUNDRED SIXTY-TWO OF THIS ARTICLE, AND (II) MULTIPLIED BY THE PERCENTAGE
OF THE PROFITS INTERESTS OF THE ELECTING PARTNERSHIP THAT ARE OWNED BY
PARTNERS OR MEMBERS WHO ARE SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-
TWO OF THIS CHAPTER; AND (2) THE PRODUCT OF (I) THE PORTION OF THE
ELECTING PARTNERSHIP'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN
ZERO) THAT IS NOT SOURCED OR ALLOCATED TO NEW YORK STATE, AND (II)
MULTIPLIED BY THE PERCENTAGE OF THE PROFITS INTERESTS OF THE ELECTING
PARTNERSHIP THAT ARE OWNED BY PARTNERS OR MEMBERS WHO ARE RESIDENTS OF
NEW YORK STATE AS DEFINED IN ARTICLE TWENTY-TWO OF THIS CHAPTER. FOR
A. 4663--C 3
PURPOSES OF DETERMINING PARTNERSHIP TAXABLE INCOME, AN ENTITY THAT IS A
DISREGARDED ENTITY AS DESCRIBED IN SECTION 301.7701-2(C)(2)(I) OF INTER-
NAL REVENUE SERVICE REGULATIONS FOR FEDERAL INCOME TAX PURPOSES IS ALSO
DISREGARDED IN DETERMINING THE PERCENTAGE OF THE PROFITS INTEREST OF THE
ELECTING PARTNERSHIP THAT ARE OWNED BY PARTNERS OR MEMBERS WHO ARE
SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER OR THAT
ARE OWNED BY PARTNERS OR MEMBERS WHO ARE RESIDENTS OF NEW YORK STATE. IN
ADDITION, FOR PURPOSES OF DETERMINING PARTNERSHIP TAXABLE INCOME, THE
PORTION OF A PARTNERSHIP INTEREST TREATED AS OWNED BY THE GRANTOR OF A
TRUST OR BY ANOTHER PERSON PURSUANT TO SECTION 671 OF THE INTERNAL
REVENUE CODE SHALL BE DEEMED OWNED BY SUCH GRANTOR OR OTHER PERSON FOR
THE PURPOSE OF DETERMINING WHETHER THAT PORTION OF THE PARTNERSHIP IS
OWNED BY A PARTNER OR MEMBER WHO IS SUBJECT TO TAX PURSUANT TO ARTICLE
TWENTY-TWO OR IS OWNED BY A PARTNER OR MEMBER WHO IS A RESIDENT OF NEW
YORK STATE AS DEFINED IN ARTICLE TWENTY-TWO OF THIS CHAPTER.
(I) S CORPORATION TAXABLE INCOME. S CORPORATION TAXABLE INCOME OF AN
ELECTING S CORPORATION MEANS THE SUM OF (1) THE PRODUCT OF (I) THE
ELECTING S CORPORATION'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN
ZERO) ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (C) OF SECTION
EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE, AND (II) MULTIPLIED BY THE
PERCENTAGE OF THE PRO RATA SHARES OF THE ELECTING S CORPORATION THAT ARE
OWNED BY INDIVIDUALS, TRUSTS, AND ESTATES WHO ARE SUBJECT TO TAX PURSU-
ANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER; AND (2) THE PRODUCT OF (I)
THE PORTION OF THE ELECTING S CORPORATION'S PASS-THROUGH ADJUSTED NET
INCOME (NOT LESS THAN ZERO) THAT IS NOT ALLOCATED TO NEW YORK STATE
PURSUANT TO SUBDIVISION (C) OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS
ARTICLE, AND (II) MULTIPLIED BY THE PERCENTAGE OF THE PRO RATA SHARES OF
THE ELECTING S CORPORATION THAT ARE OWNED BY INDIVIDUALS, TRUSTS, AND
ESTATES WHO ARE RESIDENTS OF NEW YORK STATE AS DEFINED IN ARTICLE TWEN-
TY-TWO OF THIS CHAPTER. FOR PURPOSES OF DETERMINING S CORPORATION TAXA-
BLE INCOME, AN ENTITY THAT IS A DISREGARDED ENTITY AS DESCRIBED IN REGU-
LATION SECTION 301.7701-2(C)(2)(I) FOR FEDERAL INCOME TAX PURPOSES IS
ALSO DISREGARDED IN DETERMINING THE PERCENTAGE OF THE PROFITS INTEREST
OF THE ELECTING S CORPORATION THAT ARE OWNED BY SHAREHOLDERS WHO ARE
SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER OR THAT
ARE OWNED BY SHAREHOLDERS WHO ARE RESIDENTS OF NEW YORK STATE PURSUANT
TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER. IN ADDITION,
FOR PURPOSES OF DETERMINING S CORPORATION TAXABLE INCOME, THE PORTION OF
AN S CORPORATION INTEREST TREATED AS OWNED BY THE GRANTOR OF A TRUST OR
BY ANOTHER PERSON PURSUANT TO SECTION 671 OF THE INTERNAL REVENUE CODE
SHALL BE DEEMED OWNED BY SUCH GRANTOR OR OTHER PERSON FOR THE PURPOSE OF
DETERMINING WHETHER THAT PORTION OF THE S CORPORATION IS OWNED BY A
SHAREHOLDER WHO IS SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-TWO OR IS
OWNED BY A SHAREHOLDER WHO IS A RESIDENT OF NEW YORK STATE AS DEFINED IN
ARTICLE TWENTY-TWO OF THIS CHAPTER.
§ 861. PASS-THROUGH ENTITY TAX ELECTION. (A) ANY ELIGIBLE PARTNERSHIP
OR ELIGIBLE S CORPORATION DOING BUSINESS WITHIN THIS STATE SHALL BE
ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE.
(B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE (1) IF
THE ENTITY IS AN S CORPORATION, BY ANY OFFICER, MANAGER OR SHAREHOLDER
OF THE S CORPORATION WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE
THE CORPORATION IS INCORPORATED OR UNDER THE S CORPORATION'S ORGANIZA-
TIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH
AUTHORIZATION UNDER PENALTY OF PERJURY; OR (2) IF THE ENTITY IS NOT AN S
CORPORATION, BY ANY MEMBER, PARTNER, OWNER, OR OTHER INDIVIDUAL WITH
A. 4663--C 4
AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS PURSUANT TO SECTION SIX
HUNDRED FIFTY-THREE OF THIS CHAPTER.
(C) THE ANNUAL ELECTION SHALL BE MADE IN SUCH MANNER AS THE COMMIS-
SIONER MAY PRESCRIBE BY REGULATION. AN ELECTION PURSUANT TO THIS
SUBSECTION SHALL BE EFFECTIVE FOR THE AFFECTED PASS-THROUGH ENTITY ONLY
FOR THE TAXABLE YEAR FOR WHICH SUCH ELECTION IS MADE. AN ELECTION UNDER
SUBSECTION (A) OF THIS SECTION MAY BE MADE AT ANY TIME DURING THE
PRECEDING TAXABLE YEAR OF THE PASS-THROUGH ENTITY OR AT ANY TIME DURING
THE TAXABLE YEAR OF THE PASS-THROUGH ENTITY AND ON OR BEFORE THE
FIFTEENTH DAY OF THE THIRD MONTH OF SUCH TAXABLE YEAR. IF AN ELECTION
UNDER SUBSECTION (A) OF THIS SECTION IS MADE FOR ANY TAXABLE YEAR OF THE
PASS-THROUGH ENTITY AND SUCH ELECTION IS MADE AFTER THE FIFTEENTH DAY OF
THE THIRD MONTH OF SUCH TAXABLE YEAR AND ON OR BEFORE THE FIFTEENTH DAY
OF THE THIRD MONTH OF THE FOLLOWING TAXABLE YEAR, SUCH ELECTION SHALL BE
TREATED AS MADE FOR THE FOLLOWING TAXABLE YEAR. PROVIDED, HOWEVER, IN A
TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE
BUT BEFORE JUNE FIFTEENTH, TWO THOUSAND TWENTY-ONE, THE PASS-THROUGH
ENTITY MAY MAKE SUCH ELECTION AT ANY TIME PRIOR TO JUNE FIFTEENTH, TWO
THOUSAND TWENTY-ONE.
(D) (1) TERMINATION OF ELECTION. AN ELECTION PURSUANT TO THIS SECTION
SHALL BE TERMINATED WHENEVER, AT ANY TIME DURING THE TAXABLE YEAR, THE
TAXPAYER CEASES TO BE AN ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION.
(2) EFFECTIVE DATE OF TERMINATION. THE TERMINATION OF AN ELECTION IS
EFFECTIVE IMMEDIATELY UPON THE TAXPAYER CEASING TO BE AN ELIGIBLE PART-
NERSHIP OR ELIGIBLE S CORPORATION AND NO TAX WILL BE DUE PURSUANT TO
THIS ARTICLE FOR THE TAXABLE YEAR. PROVIDED, HOWEVER, IN A TAX YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT BEFORE
JUNE FIFTEENTH, TWO THOUSAND TWENTY-ONE, THE PASS-THROUGH ENTITY MAY
MAKE SUCH ELECTION AT ANY TIME PRIOR TO JUNE FIFTEENTH, TWO THOUSAND
TWENTY-ONE.
(3) ABATEMENT OF PENALTIES. IF A TERMINATION OCCURS PURSUANT TO THIS
SUBDIVISION SOLELY BECAUSE A PARTNER, MEMBER OR SHAREHOLDER OF AN OTHER-
WISE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DIED DURING THE
TAXABLE YEAR AND THE SUCCESSOR TO THE DECEDENT'S INTEREST IN THE PART-
NERSHIP OR S CORPORATION IS AN ENTITY THAT WILL RESULT IN THE PARTNER-
SHIP OR THE S CORPORATION NOT BEING AN ELIGIBLE PARTNERSHIP OR S CORPO-
RATION, NO ADDITION TO TAX WILL BE IMPOSED PURSUANT TO SUBSECTION (C) OF
SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER ON THE PARTNERS, MEMBERS
AND SHAREHOLDERS OF SUCH PARTNERSHIP OR S CORPORATION SOLELY FOR UNDER-
PAYMENT OF ESTIMATED PERSONAL INCOME TAX AS A RESULT OF THE TERMINATION
OF THE ELECTION MADE PURSUANT TO THIS ARTICLE.
§ 862. IMPOSITION AND RATE OF TAX. (A) GENERAL. A TAX IS HEREBY
IMPOSED FOR EACH TAXABLE YEAR ON THE PARTNERSHIP TAXABLE INCOME OF EVERY
ELECTING PARTNERSHIP DOING BUSINESS WITHIN THIS STATE AND ON THE S
CORPORATION TAXABLE INCOME OF EVERY ELECTING S CORPORATION DOING BUSI-
NESS WITHIN THIS STATE. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES
IMPOSED AND SHALL BE AT THE RATE OF SIX AND EIGHTY-FIVE HUNDREDTHS
PERCENT IF THE SUM OF AN ENTITY'S PARTNERS, MEMBERS OR SHAREHOLDERS
SHARE OF DISTRIBUTIVE PROCEEDS ATTRIBUTED TO THE PASS-THROUGH ENTITY IS
LESS THAN FIVE MILLION DOLLARS AND EIGHT AND EIGHTY-TWO HUNDREDTHS
PERCENT IF THE SUM OF AN ENTITY'S PARTNERS, MEMBERS OR SHAREHOLDERS
SHARE OF DISTRIBUTIVE PROCEEDS ATTRIBUTED TO THE PASS-THROUGH ENTITY IS
FIVE MILLION DOLLARS OR MORE FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-ONE.
(B) ALLOCATION TO NEW YORK BY AN ELECTING PARTNERSHIP. IN DETERMINING
THE AMOUNT OF PARTNERSHIP TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE
A. 4663--C 5
ELECTING PARTNERSHIP SHALL BE ALLOCATED TO THIS STATE PURSUANT TO THE
PRINCIPLES OF ARTICLE TWENTY-TWO OF THIS CHAPTER.
(C) ALLOCATION TO NEW YORK BY AN ELECTING S CORPORATION. IN DETERMIN-
ING THE AMOUNT OF S CORPORATION TAXABLE INCOME, THE ADJUSTED NET INCOME
OF THE ELECTING S CORPORATION SHALL BE ALLOCATED TO THIS STATE BY MULTI-
PLYING THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION BY THE
BUSINESS APPORTIONMENT FACTOR OF THE ELECTING S CORPORATION AS CALCU-
LATED PURSUANT TO SECTION TWO HUNDRED TEN-A OF THIS CHAPTER.
§ 863. PASS-THROUGH ENTITY TAX CREDIT. A PARTNER OR MEMBER IN AN
ELECTING PARTNERSHIP OR A SHAREHOLDER OF AN ELECTING S CORPORATION,
WHICH PARTNER, MEMBER OR SHAREHOLDER'S FEDERAL TAXABLE INCOME INCLUDES
SEPARATELY AND NON-SEPARATELY COMPUTED ITEMS FROM THE ELECTING PARTNER-
SHIP AS DESCRIBED IN SECTION 702(A) OF THE INTERNAL REVENUE CODE OR FROM
THE ELECTING S CORPORATION AS DESCRIBED IN SECTION 1366(A) OF THE INTER-
NAL REVENUE CODE AND IS SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS
CHAPTER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURSUANT TO
ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS
OF SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
§ 864. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX.
ESTIMATED TAX MEANS THE AMOUNT THAT AN ELECTING PARTNERSHIP OR ELECTING
S CORPORATION ESTIMATES TO BE THE TAX IMPOSED BY SECTION EIGHT HUNDRED
SIXTY-TWO OF THIS ARTICLE FOR THE CURRENT TAXABLE YEAR.
(B) GENERAL. THE ESTIMATED TAX SHALL BE PAID AS FOLLOWS FOR AN ELECT-
ING PARTNERSHIP AND AN ELECTING S CORPORATION THAT REPORTS ON A CALENDAR
YEAR BASIS:
(1) THE ESTIMATED TAX SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON
MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER
FIFTEENTH.
(2) THE AMOUNT OF ANY REQUIRED INSTALLMENT SHALL BE TWENTY-FIVE
PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(3) THE REQUIRED ANNUAL PAYMENT IS THE LESSER OF: (A) NINETY PERCENT
OF THE TAX SHOWN ON THE RETURN FOR THE TAXABLE YEAR; OR (B) ONE HUNDRED
PERCENT OF THE TAX SHOWN ON THE RETURN OF THE ELECTING PARTNERSHIP OR
ELECTING S CORPORATION FOR THE PRECEDING TAXABLE YEAR.
(C) APPLICATION TO SHORT TAXABLE YEAR. THIS SECTION SHALL APPLY TO A
TAXABLE YEAR OF LESS THAN TWELVE MONTHS AND TO A TAXABLE YEAR FOR WHICH
AN ELECTION IS MADE BEFORE JUNE FIFTEENTH, TWO THOUSAND TWENTY-ONE, IN
ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER.
(D) FISCAL YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OTHER THAN
A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH FISCAL YEAR
FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION.
(E) INSTALLMENTS PAID IN ADVANCE. AN ELECTING PARTNERSHIP OR ELECTING
S CORPORATION MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX
PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THEREOF.
§ 865. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE
THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE
YEAR, EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION MUST
FILE A RETURN FOR THE TAXABLE YEAR REPORTING THE INFORMATION REQUIRED
PURSUANT TO THIS ARTICLE.
(B) CERTIFICATION OF ELIGIBILITY. EVERY RETURN FILED PURSUANT TO
SUBDIVISION (A) OF THIS SECTION SHALL INCLUDE, IN A FORMAT AS PRESCRIBED
BY THE COMMISSIONER, A CERTIFICATION BY AN INDIVIDUAL AUTHORIZED TO ACT
ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION THAT THE
TAXPAYER:
(1) MADE A TIMELY, VALID ELECTION TO BE SUBJECT TO TAX PURSUANT TO
THIS ARTICLE;
A. 4663--C 6
(2) WAS AT ALL TIMES DURING THE TAXABLE YEAR ELIGIBLE TO MAKE SUCH AN
ELECTION, UNLESS SUCH RETURN INCLUDES A NOTIFICATION OF TERMINATION AS
PROVIDED FOR IN SUBDIVISION (C) OF THIS SECTION; AND
(3) THAT ALL STATEMENTS CONTAINED THEREIN ARE TRUE.
(C) NOTIFICATION OF TERMINATION. IF AN ELECTION IS TERMINATED DURING
THE TAXABLE YEAR PURSUANT TO SUBDIVISION (E) OF SECTION EIGHT HUNDRED
SIXTY-ONE OF THIS ARTICLE, THE ELECTING PARTNERSHIP OR ELECTING S CORPO-
RATION IS REQUIRED TO FILE A RETURN PURSUANT TO SUBDIVISION (A) OF THIS
SECTION NOTIFYING THE COMMISSIONER OF SUCH TERMINATION. SUCH NOTIFICA-
TION WILL BE CONSIDERED A CLAIM FOR A CREDIT OR REFUND OF AN OVERPAYMENT
OF PASS-THROUGH ENTITY TAX OF ANY ESTIMATED PAYMENTS MADE PURSUANT TO
THIS ARTICLE FOR THE TAXABLE YEAR CONTAINING THE DATE OF TERMINATION.
(D) INFORMATION ON RETURN. EACH ELECTING PARTNERSHIP AND ELECTING S
CORPORATION SHALL REPORT ON SUCH RETURN:
(1) THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID
AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN;
(2) IDENTIFYING INFORMATION OF ALL PARTNERS, MEMBERS AND/OR SHAREHOLD-
ERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED
SIXTY-THREE OF THIS ARTICLE AND SUCH PARTNER'S, MEMBER'S AND/OR SHARE-
HOLDER'S DISTRIBUTIVE OR PRO RATA SHARE OF THE PASS-THROUGH ENTITY TAX
IMPOSED ON THE ELECTING PARTNERSHIP OR S CORPORATION; AND
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
(E) INFORMATION PROVIDED TO PARTNERS. EACH ELECTING PARTNERSHIP
SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH PARTNER OR MEMBER
ITS DISTRIBUTIVE SHARE OF:
(1) THE PARTNERSHIP TAXABLE INCOME OF THE ELECTING PARTNERSHIP;
(2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP;
AND
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
(F) INFORMATION PROVIDED TO SHAREHOLDERS. EACH ELECTING S CORPORATION
SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH SHAREHOLDER ITS
PRO RATA SHARE OF:
(1) THE S CORPORATION TAXABLE INCOME OF THE ELECTING S CORPORATION;
(2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING S CORPORATION;
AND
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
§ 866. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. AN
ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR PURSUANT
TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR
ELECTING S CORPORATION'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
(B) ACCOUNTING METHODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPO-
RATION'S METHOD OF ACCOUNTING PURSUANT TO THIS ARTICLE SHALL BE THE SAME
AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF
ACCOUNTING FOR FEDERAL INCOME TAX PURPOSES.
(C) CHANGE OF ACCOUNTING PERIOD OR METHOD. (1) IF AN ELECTING PARTNER-
SHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR OR METHOD OF ACCOUNTING
IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, THE TAXABLE YEAR OR METHOD
OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED.
(2) IF AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF
ACCOUNTING IS CHANGED, ANY ADDITIONAL TAX THAT RESULTS FROM ADJUSTMENTS
DETERMINED TO BE NECESSARY SOLELY BY REASON OF SUCH CHANGE SHALL NOT BE
GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLOCATED AND INCLUDED FOR
THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING TAXABLE YEARS, NOT IN
EXCESS OF TWO, DURING WHICH THE ENTITY USED THE METHOD OF ACCOUNTING
FROM WHICH THE CHANGE IS MADE.
A. 4663--C 7
§ 867. 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 PURSUANT TO THIS ARTICLE.
(B) CROSS ARTICLE FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF
THIS ARTICLE:
(1) THE COMMISSIONER MAY REQUIRE THE FILING OF ONE RETURN WHICH, IN
ADDITION TO THE RETURN PROVIDED FOR IN SECTION EIGHT HUNDRED SIXTY-FIVE
OF THIS ARTICLE, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED TO BE
FILED BY A TAXPAYER PURSUANT TO THE PROVISIONS OF SUBSECTION (C) OF
SECTION SIX HUNDRED FIFTY-EIGHT OR ARTICLE NINE-A OF THIS CHAPTER.
(2) WHERE SUCH RETURN IS REQUIRED, THE COMMISSIONER MAY ALSO REQUIRE
THE PAYMENT WITH IT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF
THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) THAT WOULD HAVE
BEEN REQUIRED TO BE PAID WITH THE RETURNS PURSUANT TO THE PROVISIONS OF
THIS ARTICLE AND THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER OR
THE PROVISIONS OF ARTICLE NINE-A OF THIS CHAPTER, WHICHEVER IS APPLICA-
BLE.
(3) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER
MAY REQUIRE THAT ALL FORMS OR RETURNS PURSUANT TO THIS ARTICLE MUST BE
FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON-
ICALLY.
(C) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL-
TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO
THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE
PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
(D) SECRECY PROVISION. ALL THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF
SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL
APPLY TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS
OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMA-
TION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX
IMPOSED BY THIS ARTICLE AND ANY CREDIT CALCULATED ON TAXES PAID PURSUANT
TO THIS ARTICLE BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO
A PARTNER, MEMBER OR SHAREHOLDER OF SUCH ENTITY.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(kkk) to read as follows:
(KKK) CREDIT FOR PASS-THROUGH ENTITY TAX. (1) A TAXPAYER PARTNER OR
MEMBER OF AN ELECTING PARTNERSHIP AND A TAXPAYER SHAREHOLDER OF AN
ELECTING S CORPORATION SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF
THIS CHAPTER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS
SUBSECTION, THE TERMS "ELECTING PARTNERSHIP," "ELECTING S CORPORATION,"
AND "PASS-THROUGH ENTITY TAX" SHALL HAVE THE SAME MEANINGS AS USED IN
ARTICLE TWENTY-FOUR-A OF THIS CHAPTER.
(2) THE CREDIT SHALL BE EQUAL TO (A) THE PRODUCT OF:
(I) THE TAXPAYER'S PERCENTAGE OF THE INTEREST IN THE ELECTING PARTNER-
SHIP OR PRO RATA SHARE OF THE ELECTING S CORPORATION THAT ARE OWNED BY
PARTNERS, MEMBERS OR SHAREHOLDERS WHO ARE SUBJECT TO THE TAX IMPOSED BY
THIS ARTICLE AS DETERMINED PURSUANT TO THE PROVISIONS OF SUBSECTIONS (H)
AND (I) OF SECTION EIGHT HUNDRED SIXTY OF THIS CHAPTER;
A. 4663--C 8
(II) NINETY-TWO PERCENT; AND
(III) THE PASS-THROUGH ENTITY TAX PAID WITH RESPECT TO INCOME THAT IS
SOURCED OR ALLOCATED TO NEW YORK STATE BY THE ELECTING PARTNERSHIP OR
ELECTING S CORPORATION FOR THE TAXABLE YEAR; AND
(B) FOR A TAXPAYER THAT IS A RESIDENT, THE PRODUCT OF: (I) THE TAXPAY-
ER'S PERCENTAGE OF THE INTERESTS IN THE ELECTING S CORPORATION OR ELECT-
ING PARTNERSHIP THAT ARE OWNED BY RESIDENTS OF NEW YORK STATE AS DETER-
MINED PURSUANT TO THE PROVISIONS OF SUBDIVISIONS (H) AND (I) OF SECTION
EIGHT HUNDRED SIXTY OF THIS CHAPTER; (II) NINETY-TWO PERCENT; AND (III)
THE PASS-THROUGH ENTITY TAX PAID WITH RESPECT TO INCOME THAT IS NOT
SOURCED OR ALLOCATED TO NEW YORK STATE BY THE ELECTING PARTNERSHIP OR
THE ELECTING S CORPORATION.
(3) IF A TAXPAYER IS A PARTNER, MEMBER OR SHAREHOLDER IN MULTIPLE
ELECTING PARTNERSHIPS AND/OR ELECTING S CORPORATIONS SUBJECT TO TAX
PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAXPAYER'S CREDIT
SHALL BE THE SUM OF SUCH CREDITS CALCULATED PURSUANT TO PARAGRAPH TWO OF
THIS SUBSECTION WITH REGARD TO EACH ENTITY IN WHICH THE TAXPAYER HAS A
DIRECT OWNERSHIP INTEREST.
(4) IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO THIS SUBSECTION
FOR ANY TAXABLE YEAR EXCEEDS THE TAX DUE FOR SUCH YEAR PURSUANT TO THIS
ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED
OR REFUNDED, WITHOUT INTEREST.
§ 3. Section 620 of the tax law, as amended by chapter 2 of the laws
of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as
added by chapter 274 of the laws of 1987, and subsection (d) as added by
chapter 166 of the laws of 1991, is amended to read as follows:
§ 620. Credit for income tax of another state. (a) General. A resident
shall be allowed a credit against the tax otherwise due under this arti-
cle for any income tax imposed ON SUCH RESIDENT for the taxable year by
another state of the United States, a political subdivision of such
state, the District of Columbia or a province of Canada, upon income
both derived therefrom and subject to tax under this article. The term
"income tax imposed" in the previous sentence shall not include the
portion of such tax (determined in the manner provided for in section
six hundred twenty-A) which is imposed upon the ordinary income portion
(or part thereof) of a lump sum distribution which is subject to the
separate tax imposed by section [six hundred one-C] SIX HUNDRED THREE.
(b) PASS-THROUGH ENTITY TAXES. (1) A RESIDENT SHALL BE ALLOWED A CRED-
IT AGAINST THE TAX OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY PASS-
THROUGH ENTITY TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO
ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IMPOSED ON THE INCOME OF A PART-
NERSHIP OR S CORPORATION OF WHICH THE RESIDENT IS A PARTNER, MEMBER OR
SHAREHOLDER FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES,
A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA UPON
INCOME BOTH DERIVED THEREFROM AND SUBJECT TO TAX UNDER THIS ARTICLE.
(2) SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF:
(A) THE TAXPAYER'S PROFIT PERCENTAGE OF THE PARTNERSHIP OR PRO RATA
SHARE OF THE S CORPORATION;
(B) NINETY-TWO PERCENT; AND
(C) THE PASS-THROUGH ENTITY TAX PAID BY THE PARTNERSHIP OR S CORPO-
RATION TO SUCH OTHER STATE, POLITICAL SUBDIVISION OF SUCH OTHER STATE OR
THE DISTRICT OF COLUMBIA.
(3) HOWEVER, SUCH CREDIT WILL BE ALLOWED ON TAX PAID ONLY IF:
(A) THE STATE OF THE UNITED STATES, POLITICAL SUBDIVISION OF SUCH
STATE, OR THE DISTRICT OF COLUMBIA IMPOSING SUCH TAX ALSO IMPOSES AN
A. 4663--C 9
INCOME TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED UNDER ARTICLE TWEN-
TY-FOUR-A OF THIS CHAPTER; AND
(B) IN THE CASE OF TAXES PAID BY AN S CORPORATION, SUCH S CORPORATION
WAS TREATED AS A NEW YORK S CORPORATION.
(C) Limitations. (1) The credit under this section shall not exceed
the percentage of the tax otherwise due under this article determined by
dividing the portion of the taxpayer's New York income subject to taxa-
tion by such other jurisdiction by the total amount of the taxpayer's
New York income.
(2) The credit under this section shall not reduce the tax otherwise
due under this article to an amount less than would have been due if the
income subject to taxation by such other jurisdiction were excluded from
the taxpayer's New York income.
(3) In the case of a taxpayer who elects to claim the foreign tax
credit for federal income tax purposes, the credit under this section
for income tax imposed by a province of Canada shall be allowed for that
portion of the provincial tax not claimed for federal purposes for the
taxable year or a preceding taxable year, provided however, to the
extent the provincial tax is claimed for federal purposes for a succeed-
ing taxable year, the credit under this section must be added back in
such succeeding taxable year. The provincial tax shall be deemed to be
claimed last for federal income tax purposes and for purposes of this
subsection.
[(c)] (D) Definition. For purposes of this section New York income
means:
(1) the New York adjusted gross income of an individual, or
(2) the amount of the income of an estate or trust, determined as if
the estate or trust were an individual computing his New York adjusted
gross income under section six hundred twelve.
[(d) S corporation shareholders. In the case of a shareholder of an S
corporation, the term "income tax" in subsection (a) of this section
shall not include any such tax imposed upon or payable by the corpo-
ration, but shall include any such tax with respect to the income of the
corporation imposed upon or payable by the shareholder, without regard
to whether an election independent of the federal S election was
required to effect such imposition upon the shareholder.]
§ 4. Subdivision 1 of section 171-a of the tax law, as amended by
chapter 92 of the laws of 2021, is amended to read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, TWENTY-
FOUR-A, twenty-six, twenty-eight (except as otherwise provided in
section eleven hundred two or eleven hundred three thereof),
twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided
in section fourteen hundred twenty-one thereof), thirty-three and thir-
ty-three-A of this chapter shall be deposited daily in one account with
such responsible banks, banking houses or trust companies as may be
designated by the comptroller, to the credit of the comptroller. Such an
account may be established in one or more of such depositories. Such
deposits shall be kept separate and apart from all other money in the
A. 4663--C 10
possession of the comptroller. The comptroller shall require adequate
security from all such depositories. Of the total revenue collected or
received under such articles of this chapter, the comptroller shall
retain in the comptroller's hands such amount as the commissioner may
determine to be necessary for refunds or reimbursements under such arti-
cles of this chapter out of which amount the comptroller shall pay any
refunds or reimbursements to which taxpayers shall be entitled under the
provisions of such articles of this chapter. The commissioner and the
comptroller shall maintain a system of accounts showing the amount of
revenue collected or received from each of the taxes imposed by such
articles. The comptroller, after reserving the amount to pay such
refunds or reimbursements, shall, on or before the tenth day of each
month, pay into the state treasury to the credit of the general fund all
revenue deposited under this section during the preceding calendar month
and remaining to the comptroller's credit on the last day of such
preceding month, (i) except that the comptroller shall pay to the state
department of social services that amount of overpayments of tax imposed
by article twenty-two of this chapter and the interest on such amount
which is certified to the comptroller by the commissioner as the amount
to be credited against past-due support pursuant to subdivision six of
section one hundred seventy-one-c of this article, (ii) and except that
the comptroller shall pay to the New York state higher education
services corporation and the state university of New York or the city
university of New York respectively that amount of overpayments of tax
imposed by article twenty-two of this chapter and the interest on such
amount which is certified to the comptroller by the commissioner as the
amount to be credited against the amount of defaults in repayment of
guaranteed student loans and state university loans or city university
loans pursuant to subdivision five of section one hundred seventy-one-d
and subdivision six of section one hundred seventy-one-e of this arti-
cle, (iii) and except further that, notwithstanding any law, the comp-
troller shall credit to the revenue arrearage account, pursuant to
section ninety-one-a of the state finance law, that amount of overpay-
ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir-
ty-A, thirty-B or thirty-three of this chapter, and any interest there-
on, which is certified to the comptroller by the commissioner as the
amount to be credited against a past-due legally enforceable debt owed
to a state agency pursuant to paragraph (a) of subdivision six of
section one hundred seventy-one-f of this article, provided, however, he
shall credit to the special offset fiduciary account, pursuant to
section ninety-one-c of the state finance law, any such amount credita-
ble as a liability as set forth in paragraph (b) of subdivision six of
section one hundred seventy-one-f of this article, (iv) and except
further that the comptroller shall pay to the city of New York that
amount of overpayment of tax imposed by article nine, nine-A, twenty-
two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any
interest thereon that is certified to the comptroller by the commission-
er as the amount to be credited against city of New York tax warrant
judgment debt pursuant to section one hundred seventy-one-l of this
article, (v) and except further that the comptroller shall pay to a
non-obligated spouse that amount of overpayment of tax imposed by arti-
cle twenty-two of this chapter and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or
one hundred seventy-one-l of this article and which is certified to the
comptroller by the commissioner as the amount due such non-obligated
A. 4663--C 11
spouse pursuant to paragraph six of subsection (b) of section six
hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
a like amount which the comptroller shall pay into the treasury to the
credit of the general fund from amounts subsequently payable to the
department of social services, the state university of New York, the
city university of New York, or the higher education services corpo-
ration, or the revenue arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c of the state
finance law, as the case may be, whichever had been credited the amount
originally withheld from such overpayment, and (vii) with respect to
amounts originally withheld from such overpayment pursuant to section
one hundred seventy-one-l of this article and paid to the city of New
York, the comptroller shall collect a like amount from the city of New
York.
§ 5. Subdivision 1 of section 171-a of the tax law, as amended by
section 4 of part XX of chapter 59 of the laws of 2019, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-D, twenty-one, twenty-two, twenty-four, TWENTY-FOUR-A, twen-
ty-six, twenty-eight (except as otherwise provided in section eleven
hundred two or eleven hundred three thereof), twenty-eight-A, twenty-
nine-B, thirty-one (except as otherwise provided in section fourteen
hundred twenty-one thereof), thirty-three and thirty-three-A of this
chapter shall be deposited daily in one account with such responsible
banks, banking houses or trust companies as may be designated by the
comptroller, to the credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the possession of the
comptroller. The comptroller shall require adequate security from all
such depositories. Of the total revenue collected or received under such
articles of this chapter, the comptroller shall retain in the comp-
troller's hands such amount as the commissioner may determine to be
necessary for refunds or reimbursements under such articles of this
chapter out of which amount the comptroller shall pay any refunds or
reimbursements to which taxpayers shall be entitled under the provisions
of such articles of this chapter. The commissioner and the comptroller
shall maintain a system of accounts showing the amount of revenue
collected or received from each of the taxes imposed by such articles.
The comptroller, after reserving the amount to pay such refunds or
reimbursements, shall, on or before the tenth day of each month, pay
into the state treasury to the credit of the general fund all revenue
deposited under this section during the preceding calendar month and
remaining to the comptroller's credit on the last day of such preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two of this chapter and the interest on such amount which is
certified to the comptroller by the commissioner as the amount to be
credited against past-due support pursuant to subdivision six of section
one hundred seventy-one-c of this article, (ii) and except that the
A. 4663--C 12
comptroller shall pay to the New York state higher education services
corporation and the state university of New York or the city university
of New York respectively that amount of overpayments of tax imposed by
article twenty-two of this chapter and the interest on such amount which
is certified to the comptroller by the commissioner as the amount to be
credited against the amount of defaults in repayment of guaranteed
student loans and state university loans or city university loans pursu-
ant to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-one-e of this article, (iii)
and except further that, notwithstanding any law, the comptroller shall
credit to the revenue arrearage account, pursuant to section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
or thirty-three of this chapter, and any interest thereon, which is
certified to the comptroller by the commissioner as the amount to be
credited against a past-due legally enforceable debt owed to a state
agency pursuant to paragraph (a) of subdivision six of section one
hundred seventy-one-f of this article, provided, however, he shall cred-
it to the special offset fiduciary account, pursuant to section ninety-
one-c of the state finance law, any such amount creditable as a liabil-
ity as set forth in paragraph (b) of subdivision six of section one
hundred seventy-one-f of this article, (iv) and except further that the
comptroller shall pay to the city of New York that amount of overpayment
of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A,
thirty-B or thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to be
credited against city of New York tax warrant judgment debt pursuant to
section one hundred seventy-one-l of this article, (v) and except
further that the comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant to
section one hundred seventy-one-c, one hundred seventy-one-d, one
hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
ty-one-l of this article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter; and (vi) the comptroller shall deduct a like amount which the
comptroller shall pay into the treasury to the credit of the general
fund from amounts subsequently payable to the department of social
services, the state university of New York, the city university of New
York, or the higher education services corporation, or the revenue
arrearage account or special offset fiduciary account pursuant to
section ninety-one-a or ninety-one-c of the state finance law, as the
case may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii) with respect to amounts originally
withheld from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the comptroller
shall collect a like amount from the city of New York.
§ 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section
92-z of the state finance law, as amended by section 5 of part MM of
chapter 59 of the laws of 2018, are amended to read as follows:
2. Such fund shall consist of (a) fifty percent of receipts from the
imposition of personal income taxes pursuant to article twenty-two of
the tax law, less such amounts as the commissioner of taxation and
finance may determine to be necessary for refunds, [and] (b) fifty
percent of receipts from the imposition of employer compensation expense
A. 4663--C 13
taxes pursuant to article twenty-four of the tax law, less such amounts
as the commissioner of taxation and finance may determine to be neces-
sary for refunds, AND (C) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION
OF THE PASS-THROUGH ENTITY TAXES PURSUANT TO ARTICLE TWENTY-FOUR-A OF
THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSION OF TAXATION AND FINANCE
MAY DETERMINE TO BE NECESSARY FOR REFUNDS.
3. (a) Beginning on the first day of each month, the comptroller shall
deposit all of the receipts collected pursuant to section six hundred
seventy-one of the tax law in the revenue bond tax fund until the amount
of monthly receipts anticipated to be deposited pursuant to the certif-
icate required in paragraph (b) of subdivision five of this section are
met. On or before the twelfth day of each month, the commissioner of
taxation and finance shall certify to the state comptroller the amounts
specified in paragraph (a) of subdivision two of this section relating
to the preceding month and, in addition, no later than March thirty-
first of each fiscal year the commissioner of taxation and finance shall
certify such amounts relating to the last month of such fiscal year. The
amounts so certified shall be deposited by the state comptroller in the
revenue bond tax fund.
(b) Beginning on the first day of each month, the comptroller shall
deposit all of the receipts collected pursuant to section eight hundred
fifty-four of the tax law in the revenue bond tax fund until the amount
of monthly receipts anticipated to be deposited pursuant to the certif-
icate required in paragraph (b) of subdivision five of this section are
met. On or before the twelfth day of each month, the commissioner of
taxation and finance shall certify to the state comptroller the amounts
specified in paragraph (b) of subdivision two of this section relating
to the preceding month and, in addition, no later than March thirty-
first of each fiscal year the commissioner of taxation and finance shall
certify such amounts relating to the last month of such fiscal year. The
amounts so certified shall be deposited by the state comptroller in the
revenue bond tax fund.
(C) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL
DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTIONS EIGHT HUNDRED
SIXTY-FOUR AND EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW IN THE REVENUE
BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE
DEPOSITED PURSUANT TO THE CERTIFICATE REQUIRED IN PARAGRAPH (B) OF
SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY
OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO
THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVI-
SION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDI-
TION, NO LATER THAN MARCH THIRTY-FIRST OF EACH FISCAL YEAR THE COMMIS-
SIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO
THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE
DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND.
(a) The state comptroller shall from time to time, but in no event
later than the fifteenth day of each month (other than the last month of
the fiscal year) and no later than the thirty-first day of the last
month of each fiscal year, pay over and distribute to the credit of the
general fund of the state treasury all moneys in the revenue bond tax
fund, if any, in excess of the aggregate amount required to be set aside
for the payment of cash requirements pursuant to paragraph (b) of this
subdivision, provided that an appropriation has been made to pay all
amounts specified in any certificate or certificates delivered by the
director of the budget pursuant to paragraph (b) of this subdivision as
being required by each authorized issuer as such term is defined in
A. 4663--C 14
section sixty-eight-a of this chapter for the payment of cash require-
ments of such issuers for such fiscal year. Subject to the rights of
holders of debt of the state, in no event shall the state comptroller
pay over and distribute any moneys on deposit in the revenue bond tax
fund to any person other than an authorized issuer pursuant to such
certificate or certificates (i) unless and until the aggregate of all
cash requirements certified to the state comptroller as required by such
authorized issuers to be set aside pursuant to paragraph (b) of this
subdivision for such fiscal year shall have been appropriated to such
authorized issuers in accordance with the schedule specified in the
certificate or certificates filed by the director of the budget or (ii)
if, after having been so certified and appropriated, any payment
required to be made pursuant to paragraph (b) of this subdivision has
not been made to the authorized issuers which was required to have been
made pursuant to such certificate or certificates; provided, however,
that no person, including such authorized issuers or the holders of
revenue bonds, shall have any lien on moneys on deposit in the revenue
bond tax fund. Any agreement entered into pursuant to section sixty-
eight-c of this chapter related to any payment authorized by this
section shall be executory only to the extent of such revenues available
to the state in such fund. Notwithstanding subdivisions two and three of
this section, in the event the aggregate of all cash requirements certi-
fied to the state comptroller as required by such authorized issuers to
be set aside pursuant to paragraph (b) of this subdivision for the
fiscal year beginning on April first shall not have been appropriated to
such authorized issuers in accordance with the schedule specified in the
certificate or certificates filed by the director of the budget or, (ii)
if, having been so certified and appropriated, any payment required to
be made pursuant to paragraph (b) of this subdivision has not been made
pursuant to such certificate or certificates, all receipts collected
pursuant to section six hundred seventy-one of the tax law, [and]
section eight hundred fifty-four of the tax law, SECTION EIGHT HUNDRED
SIXTY-FOUR OF THE TAX LAW, AND SECTION EIGHT HUNDRED SIXTY-FIVE OF THE
TAX LAW shall be deposited in the revenue bond tax fund until the great-
er of forty percent of the aggregate of the receipts from the imposition
of (A) the personal income tax imposed by article twenty-two of the tax
law, [and] (B) the employer compensation expense tax imposed by article
twenty-four of the tax law, AND (C) THE PASS-THROUGH ENTITY TAX IMPOSED
BY ARTICLE TWENTY-FOUR-A OF THE TAX LAW for the fiscal year beginning on
April first and as specified in the certificate or certificates filed by
the director of the budget pursuant to this paragraph or a total of
twelve billion dollars has been deposited in the revenue bond tax fund.
Notwithstanding any other provision of law, if the state has appropri-
ated and paid to the authorized issuers the amounts necessary for the
authorized issuers to meet their requirements for the current fiscal
year pursuant to the certificate or certificates submitted by the direc-
tor of the budget pursuant to paragraph (b) of this section, the state
comptroller shall, on the last day of each fiscal year, pay to the
general fund of the state all sums remaining in the revenue bond tax
fund on such date except such amounts as the director of the budget may
certify are needed to meet the cash requirements of authorized issuers
during the subsequent fiscal year.
§ 7. Subdivision 5 of section 68-c of the state finance law, as
amended by section 6 of part MM of chapter 59 of the laws of 2018, is
amended to read as follows:
A. 4663--C 15
5. Nothing contained in this article shall be deemed to restrict the
right of the state to amend, repeal, modify or otherwise alter statutes
imposing or relating to the taxes imposed pursuant to article
twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the
tax law. The authorized issuers shall not include within any resolution,
contract or agreement with holders of the revenue bonds issued under
this article any provision which provides that a default occurs as a
result of the state exercising its right to amend, repeal, modify or
otherwise alter the taxes imposed pursuant to article twenty-two, [and]
article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law.
§ 8. This act shall take effect immediately and shall apply to all
taxable years beginning on or after January 1, 2021; provided, however,
that the amendments to subdivision 1 of section 171-a of the tax law
made by section four of this act shall not affect the expiration and
reversion of such subdivision pursuant to chapter 90 of the laws of
2014, as amended, when upon such date the provisions of section five of
this act shall take effect.