Senate Bill S1194

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1194
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2021
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the public authorities law, the tax law and the adminis-
   trative code of the city of New York, in relation to  authorizing  and
   imposing a tax surcharge on the personal income of certain high-income
   residents  of  such  city  in  order  to  fund  transit infrastructure
   improvements and reduced fares for low-income residents of such city
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1205 of the public authorities law is amended by
 adding a new subdivision 9 to read as follows:
   9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE AUTHORITY  AND  ANY
 OF ITS SUBSIDIARY CORPORATIONS SHALL ESTABLISH AND IMPLEMENT A HALF-FARE
 RATE PROGRAM FOR LOW-INCOME RESIDENTS OF THE CITY WHO ARE EIGHTEEN YEARS
 OF  AGE  OR OLDER AND YOUNGER THAN SIXTY-FIVE YEARS OF AGE. FOR PURPOSES
 OF THIS SUBDIVISION, THE TERM "LOW-INCOME" SHALL MEAN AN  ANNUAL  INCOME
 THAT  IS  BELOW  THE  FEDERAL  POVERTY  LINE AS DETERMINED BY THE UNITED
 STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES PURSUANT TO SUBDIVISION 2
 OF SECTION 9902 OF TITLE 42 OF THE UNITED STATES CODE.    THE  HALF-FARE
 RATE  PROGRAM  ESTABLISHED  AND IMPLEMENTED PURSUANT TO THIS SUBDIVISION
 SHALL INCLUDE SUBWAY AND BUS SERVICE, EXCLUSIVE OF EXPRESS  BUS  SERVICE
 DURING PEAK HOURS. SUCH HALF-RATE PROGRAM SHALL NOT BE MADE AVAILABLE TO
 SUCH LOW-INCOME RESIDENTS OF THE CITY EIGHTEEN YEARS OF AGE OR OLDER AND
 YOUNGER  THAN SIXTY-FIVE YEARS OF AGE WHO ARE ELIGIBLE FOR THE HALF-FARE
 RATE PROGRAMS AVAILABLE TO SENIORS AND PEOPLE WITH DISABILITIES PURSUANT
 TO SUBDIVISION TWO OR EIGHT OF THIS SECTION. UPON THE WRITTEN REQUEST OF
 THE MAYOR AND IN ACCORDANCE WITH SUCH  REQUEST,  THE  AUTHORITY  OR  ITS
 SUBSIDIARY  CORPORATIONS  SHALL DELEGATE AUTHORITY TO THE CITY TO ASSIST
 WITH THE ADMINISTRATION OF SUCH HALF-FARE RATE  PROGRAM,  INCLUDING  THE
 ELIGIBILITY OF APPLICANTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03576-01-1
              

 S. 1194                             2
 
   §  2.  The  public  authorities law is amended by adding a new section
 1270-j to read as follows:
   §  1270-J. NEW YORK CITY DEDICATED PERSONAL INCOME TAX SURCHARGE FUND.
 1. THE AUTHORITY SHALL ESTABLISH A FUND TO BE KNOWN  AS  THE  "NEW  YORK
 CITY  DEDICATED  PERSONAL INCOME TAX SURCHARGE FUND" WHICH SHALL BE KEPT
 SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS  OF  THE
 AUTHORITY.  THE FUND SHALL CONSIST OF A "TRANSIT INFRASTRUCTURE IMPROVE-
 MENT ACCOUNT" AND A "LOW-INCOME RESIDENT REDUCED FARE ACCOUNT."
   2. THERE SHALL BE DEPOSITED INTO THE NEW YORK CITY DEDICATED  PERSONAL
 INCOME  TAX  SURCHARGE  FUND  THE MONEYS TRANSFERRED TO THE METROPOLITAN
 TRANSPORTATION AUTHORITY FROM THE NEW  YORK  CITY  TRANSITIONAL  FINANCE
 AUTHORITY  PURSUANT TO SUBSECTION (E) OF SECTION THIRTEEN HUNDRED FOUR-E
 OF THE TAX LAW, AND ANY OTHER PROVISION OF LAW DIRECTING  OR  PERMITTING
 THE  DEPOSIT  OF  MONEYS  IN  SUCH  FUND, TO BE USED EXCLUSIVELY FOR THE
 FINANCING OF TRANSIT INFRASTRUCTURE IMPROVEMENTS AND REDUCED  FARES  FOR
 LOW-INCOME RESIDENTS OF THE CITY OF NEW YORK.
   3.  MONEYS IN THE TRANSIT INFRASTRUCTURE IMPROVEMENT ACCOUNT (A) SHALL
 BE USED TO FUND CAPITAL PROJECTS THAT SATISFY  THE  FOLLOWING  CRITERIA:
 (I) DEFINED AS STATE OF GOOD REPAIR, NORMAL REPLACEMENT, OR AN AMERICANS
 WITH  DISABILITIES  ACT  RELATED  SYSTEM  IMPROVEMENT WITHIN THE CAPITAL
 PROGRAM OF THE AUTHORITY; AND (II) INCLUDED  IN  ANY  OF  THE  FOLLOWING
 CATEGORIES  WITHIN  THE  CAPITAL PROGRAM OF THE AUTHORITY: NEW YORK CITY
 TRANSIT AUTHORITY BUSES, SUBWAY CARS, TRACK, LINE EQUIPMENT, LINE STRUC-
 TURES, SIGNALS AND COMMUNICATIONS,  TRACTION  POWER,  SHOPS  AND  YARDS,
 DEPOTS,  SERVICE  VEHICLES,  PASSENGER  STATION  PROJECTS,  AS NEEDED TO
 COMPLY WITH THE AMERICANS WITH DISABILITIES ACT, STATEN  ISLAND  RAILWAY
 AND  AUTHORITY  BUS  COMPANY PROJECTS; AND (B) MAY BE (I) PLEDGED BY THE
 AUTHORITY AS SECURITY FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON BONDS
 ISSUED AFTER JULY FIRST, TWO  THOUSAND  TWENTY-ONE  TO  FINANCE  CAPITAL
 PROJECTS  THAT  MEET  THE  CRITERIA  IDENTIFIED IN PARAGRAPH (A) OF THIS
 SUBDIVISION, INCLUDING BONDS ISSUED TO REFUND SUCH BONDS AND  (II)  USED
 FOR PAYMENT OF PRINCIPAL AND INTEREST ON SUCH BONDS, FUNDING OF RESERVES
 REQUIRED  IN  CONNECTION  WITH  SUCH  BONDS, AND THE PAYMENT OF COSTS OF
 ISSUANCE RELATED TO SUCH BONDS. TO THE  EXTENT  MONEYS  IN  THE  TRANSIT
 INFRASTRUCTURE IMPROVEMENT ACCOUNT HAVE BEEN PLEDGED BY THE AUTHORITY TO
 SECURE  THE  PAYMENT  OF  PRINCIPAL  AND  INTEREST  ON  BONDS  AS HEREIN
 PROVIDED, MONEYS DEPOSITED INTO THE NEW  YORK  CITY  DEDICATED  PERSONAL
 INCOME  TAX  SURCHARGE  FUND  SHALL  FIRST BE DEPOSITED INTO THE TRANSIT
 INFRASTRUCTURE ACCOUNT TO THE EXTENT NECESSARY TO MAKE PAYMENTS PURSUANT
 TO PARAGRAPH (B) OF THIS SUBDIVISION. AFTER MAKING SUCH PAYMENTS, MONEYS
 DEPOSITED IN THE TRANSIT INFRASTRUCTURE  IMPROVEMENT  ACCOUNT  SHALL  BE
 USED TO FUND PROJECTS THAT MEET THE CRITERIA IDENTIFIED IN PARAGRAPH (A)
 OF THIS SUBDIVISION.
   4.  THE  STATE  DOES  HEREBY  PLEDGE AND AGREE WITH THE HOLDERS OF ANY
 ISSUE OF BONDS SECURED BY PLEDGE DESCRIBED IN PARAGRAPH (B) OF  SUBDIVI-
 SION  THREE  OF  THIS SECTION THAT THE STATE WILL NOT LIMIT OR ALTER THE
 RIGHTS HEREBY VESTED IN THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  TO
 FULFILL  THE  TERMS  OF ANY AGREEMENTS MADE WITH BONDHOLDERS PURSUANT TO
 THIS TITLE, OR IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF SUCH HOLDERS
 OR THE SECURITY FOR SUCH BONDS UNTIL  SUCH  BONDS  ARE  FULLY  PAID  AND
 DISCHARGED.  NOTHING  CONTAINED  IN  THIS  SECTION  SHALL  BE  DEEMED TO
 RESTRICT THE RIGHT OF THE STATE TO AMEND, MODIFY,  REPEAL  OR  OTHERWISE
 ALTER STATUTES IMPOSING OR RELATING TO THE TAXES PAYABLE TO THE NEW YORK
 CITY TRANSITIONAL FINANCE AUTHORITY PURSUANT TO SECTION THIRTEEN HUNDRED
 THIRTEEN  OF THE TAX LAW, BUT SUCH TAXES SHALL IN ALL EVENTS CONTINUE TO
 BE SO PAYABLE SO LONG AS ANY SUCH TAXES ARE  IMPOSED.  NOTHING  IN  THIS

 S. 1194                             3
 
 SECTION  SHALL  BE  DEEMED  TO OBLIGATE THE STATE TO MAKE ANY ADDITIONAL
 PAYMENTS OR IMPOSE ANY TAXES TO SATISFY THE DEBT SERVICE OBLIGATIONS  OF
 THE METROPOLITAN TRANSPORTATION AUTHORITY.
   5.  MONEYS  IN  THE  LOW-INCOME RESIDENT REDUCED FARE ACCOUNT SHALL BE
 USED TO FUND THE HALF-FARE RATE PROGRAM FOR LOW-INCOME RESIDENTS OF  THE
 CITY  OF NEW YORK PURSUANT TO SUBDIVISION NINE OF SECTION TWELVE HUNDRED
 FIVE OF THIS ARTICLE AND MAY BE USED FOR PAYMENT OF THE REASONABLE OPER-
 ATING COSTS INCURRED BY THE NEW YORK  CITY  TRANSIT  AUTHORITY  FOR  THE
 ADMINISTRATION OF THE HALF-FARE RATE PROGRAM, PROVIDED THAT NO MORE THAN
 ONE PERCENT OF THE MONEYS DEPOSITED INTO THE LOW-INCOME RESIDENT REDUCED
 FARE  ACCOUNT  PURSUANT TO SUBDIVISION SIX OF THIS SECTION SHALL BE USED
 FOR SUCH COSTS.
   6. THE MONEYS DEPOSITED INTO THE FUND FROM THE NEW YORK  CITY  TRANSI-
 TIONAL  FINANCE  AUTHORITY  SHALL BE EQUALLY DIVIDED BETWEEN THE TRANSIT
 INFRASTRUCTURE IMPROVEMENT ACCOUNT AND THE LOW-INCOME  RESIDENT  REDUCED
 FARE ACCOUNT.
   7.  TWICE  EACH CALENDAR YEAR, THE MAYOR OF THE CITY OF NEW YORK SHALL
 CONDUCT A REVIEW OF THE AMOUNT OF MONEYS DEPOSITED IN EACH  OF  THE  TWO
 ACCOUNTS. TO THE EXTENT SUCH REVIEW INDICATES THAT:
   A.  THE  MONEYS  IN THE TRANSIT INFRASTRUCTURE IMPROVEMENT ACCOUNT ARE
 SUFFICIENT TO SATISFY THE REQUIREMENTS OF ANY DEBT SERVICE  INCURRED  IN
 SUCH  CALENDAR YEAR AS A RESULT OF OBLIGATIONS ISSUED AND SECURED PURSU-
 ANT TO PARAGRAPH B OF SUBDIVISION THREE OF THIS SECTION, AND THE  MONEYS
 IN  THE  LOW-INCOME  RESIDENT  REDUCED  FARE ACCOUNT ARE INSUFFICIENT TO
 SATISFY THE TOTAL NEEDS OF THE LOW-INCOME RESIDENT REDUCED FARE  PROGRAM
 ESTABLISHED  PURSUANT TO SUBDIVISION NINE OF SECTION TWELVE HUNDRED FIVE
 OF THIS ARTICLE, THE MAYOR OF THE CITY OF  NEW  YORK,  OR  SUCH  MAYOR'S
 DESIGNEE, MAY DIRECT THE METROPOLITAN TRANSPORTATION AUTHORITY TO TRANS-
 FER  A  SPECIFIED  AMOUNT  OF  MONEYS  FROM  THE  TRANSIT INFRASTRUCTURE
 IMPROVEMENT ACCOUNT TO THE LOW-INCOME RESIDENT REDUCED FARE ACCOUNT; AND
   B. THE MONEYS IN THE LOW-INCOME  RESIDENT  REDUCED  FARE  ACCOUNT  ARE
 SUFFICIENT  TO  SATISFY THE NEEDS OF THE HALF-FARE RATE PROGRAM FOR LOW-
 INCOME RESIDENTS OF THE CITY OF NEW YORK ESTABLISHED PURSUANT TO  SUBDI-
 VISION  NINE  OF  SECTION  TWELVE  HUNDRED FIVE OF THIS ARTICLE, IN SUCH
 CALENDAR YEAR, THE MAYOR OF THE CITY OF NEW YORK, OR SUCH MAYOR'S DESIG-
 NEE, MAY DIRECT THE METROPOLITAN TRANSPORTATION AUTHORITY TO TRANSFER  A
 SPECIFIED  AMOUNT  OF  MONEYS  FROM THE LOW-INCOME RESIDENT REDUCED FARE
 ACCOUNT TO THE TRANSIT INFRASTRUCTURE IMPROVEMENT ACCOUNT.
   § 3. Subdivision 5 of section 2799-hh of the public  authorities  law,
 as  added  by  chapter  16  of  the  laws of 1997, is amended to read as
 follows:
   5. Tax revenues received by the authority pursuant to section thirteen
 hundred thirteen of the tax law, together with any alternative  revenues
 received  by  the  authority, shall be applied in the following order of
 priority: first pursuant to the authority's contracts with  bondholders,
 then  to  pay  the authority's operating expenses not otherwise provided
 for, THEN TO A DEDICATED PERSONAL INCOME TAX SURCHARGE FUND PURSUANT  TO
 SUBSECTION  (D) OF SECTION THIRTEEN HUNDRED FOUR-E OF THE TAX LAW IN THE
 AMOUNT PROVIDED FOR IN SUCH SECTION, and then pursuant to  the  authori-
 ty's  agreements  with  the  city,  which  agreements  shall require the
 authority to transfer the balance of such taxes  not  required  to  meet
 contractual  or  other  obligations  of  the  authority  to  the city as
 frequently as practicable.
   § 4. The tax law is amended by adding a new section 1304-E to read  as
 follows:

 S. 1194                             4
 
   §  1304-E.  TAX  SURCHARGE FOR TRANSIT INFRASTRUCTURE IMPROVEMENTS AND
 REDUCED FARES FOR LOW-INCOME RESIDENTS OF THE CITY OF NEW YORK.  (A)  IN
 ADDITION  TO  THE TAXES AUTHORIZED BY SUBSECTION (A) OF SECTION THIRTEEN
 HUNDRED ONE OF THIS ARTICLE, ANY CITY  IMPOSING  SUCH  TAXES  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
 SUCH CITY FOR EACH TAXABLE YEAR BEGINNING AFTER TWO THOUSAND EIGHTEEN, A
 TAX SURCHARGE ON THE CITY TAXABLE INCOME OF CERTAIN CITY RESIDENT  INDI-
 VIDUALS, ESTATES AND TRUSTS.
   (B)  A TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION
 SHALL BE DETERMINED AS FOLLOWS:
   (1) RESIDENT MARRIED INDIVIDUALS FILING  JOINT  RETURNS  AND  RESIDENT
 SURVIVING  SPOUSES.  THE  TAX  SURCHARGE  UNDER THIS SECTION ON THE CITY
 TAXABLE INCOME OF CERTAIN CITY RESIDENT MARRIED INDIVIDUALS WHO  MAKE  A
 SINGLE  RETURN  JOINTLY  WITH  HIS OR HER SPOUSE UNDER SUBSECTION (B) OF
 SECTION THIRTEEN HUNDRED SIX OF THIS ARTICLE AND  ON  THE  CITY  TAXABLE
 INCOME OF CERTAIN CITY RESIDENT SURVIVING SPOUSES SHALL BE DETERMINED IN
 ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:        THE TAX SURCHARGE IS:
   OVER $1,000,000                       .534% OF EXCESS OVER $1,000,000
   (2) RESIDENT HEADS OF HOUSEHOLDS. THE TAX SURCHARGE UNDER THIS SECTION
 ON  THE CITY TAXABLE INCOME OF CERTAIN CITY RESIDENT HEADS OF HOUSEHOLDS
 SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:           THE TAX SURCHARGE IS:
   OVER $750,000                            .534% OF EXCESS OVER $750,000
   (3)  RESIDENT  UNMARRIED  INDIVIDUALS,  RESIDENT  MARRIED  INDIVIDUALS
 FILING  SEPARATE  RETURNS  AND  RESIDENT  ESTATES  AND  TRUSTS.  THE TAX
 SURCHARGE UNDER THIS SECTION ON THE CITY TAXABLE INCOME OF CERTAIN  CITY
 RESIDENT  INDIVIDUALS  WHO ARE NOT CITY RESIDENT MARRIED INDIVIDUALS WHO
 MAKE A SINGLE RETURN JOINTLY WITH HIS OR HER SPOUSE UNDER SUBSECTION (B)
 OF SECTION THIRTEEN HUNDRED SIX OF THIS ARTICLE OR CITY  RESIDENT  HEADS
 OF  HOUSEHOLDS OR CITY RESIDENT SURVIVING SPOUSES, AND ON THE CITY TAXA-
 BLE INCOME OF CERTAIN CITY RESIDENT ESTATES AND TRUSTS SHALL  BE  DETER-
 MINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:           THE TAX SURCHARGE IS:
   OVER $500,000                            .534% OF EXCESS OVER $500,000
   (C)  A TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION
 SHALL BE ADMINISTERED AND COLLECTED IN THE  SAME  MANNER  AS  THE  TAXES
 IMPOSED  PURSUANT  TO  THE  AUTHORITY  OF  THIS  ARTICLE, AND ALL OF THE
 PROVISIONS OF THIS ARTICLE,  INCLUDING  SECTION  THIRTEEN  HUNDRED  TEN,
 SHALL  APPLY  TO  THE TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF
 THIS SECTION.
   (D) SUBJECT TO THE PRIORITY OF PAYMENTS IDENTIFIED IN SECTION  TWENTY-
 SEVEN HUNDRED NINETY-NINE-HH OF THE PUBLIC AUTHORITIES LAW, THE NEW YORK
 CITY  TRANSITIONAL  FINANCE AUTHORITY SHALL TRANSFER TO THE METROPOLITAN
 TRANSPORTATION AUTHORITY THE AMOUNT ESTIMATED BY THE MAYOR OF  THE  CITY
 OF  NEW YORK TO BE THE AMOUNT RECEIVED BY THE NEW YORK CITY TRANSITIONAL
 FINANCE AUTHORITY FROM THE TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHOR-
 ITY OF THIS SECTION, UP TO THE TOTAL AMOUNT  AVAILABLE  AFTER  DEDUCTING
 FROM REVENUES RECEIVED BY THE NEW YORK CITY TRANSITIONAL FINANCE AUTHOR-
 ITY  PURSUANT  TO  THIS  SECTION  AND SUBSECTION (C) OF SECTION THIRTEEN
 HUNDRED THIRTEEN OF THIS ARTICLE AMOUNTS TO BE PAID PURSUANT TO THE  NEW
 YORK  CITY  TRANSITIONAL  FINANCE AUTHORITY'S CONTRACTS WITH BONDHOLDERS
 AND  THE  NEW  YORK  CITY  TRANSITIONAL  FINANCE  AUTHORITY'S  OPERATING

 S. 1194                             5
 
 EXPENSES  NOT OTHERWISE PROVIDED FOR. AFTER THE MAYOR OF THE CITY OF NEW
 YORK HAS RECEIVED DATA FROM THE DEPARTMENT ALLOWING SUCH MAYOR TO DETER-
 MINE THE ACTUAL AMOUNT OF REVENUES RECEIVED BY THE NEW YORK CITY TRANSI-
 TIONAL  FINANCE  AUTHORITY  THAT  ARE  ATTRIBUTABLE TO THE TAX SURCHARGE
 IMPOSED PURSUANT TO THE AUTHORITY OF  THIS  SECTION,  SUCH  MAYOR  SHALL
 INFORM  THE  NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY OF SUCH ACTUAL
 AMOUNT, MINUS ANY ACTUAL OPERATING COSTS ASSUMED BY THE CITY OF NEW YORK
 ATTRIBUTABLE TO THE HALF-FARE RATE PROGRAM PURSUANT TO SUBDIVISION  NINE
 OF  SECTION  TWELVE  HUNDRED FIVE OF THE PUBLIC AUTHORITIES LAW, AND THE
 NEW YORK CITY TRANSITIONAL  FINANCE  AUTHORITY  SHALL  ADJUST  THE  NEXT
 PAYMENT TO BE MADE TO THE METROPOLITAN TRANSPORTATION AUTHORITY PURSUANT
 TO  THIS  SECTION  TO  REFLECT ANY DIFFERENCE BETWEEN SUCH ACTUAL AMOUNT
 MINUS SUCH OPERATING COSTS AND THE ESTIMATE PREVIOUSLY PROVIDED BY  SUCH
 MAYOR.
   (E)  ANY  REVENUES  TRANSFERRED  TO  THE  METROPOLITAN  TRANSPORTATION
 AUTHORITY PURSUANT TO SUBSECTION (D) OF THIS SECTION SHALL BE PAID  INTO
 A  DEDICATED  PERSONAL  INCOME TAX SURCHARGE FUND TO BE USED EXCLUSIVELY
 FOR THE FINANCING OF TRANSIT  INFRASTRUCTURE  IMPROVEMENTS  AND  REDUCED
 FARES  FOR  LOW-INCOME  RESIDENTS  OF THE CITY OF NEW YORK IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION TWELVE HUNDRED SEVENTY-J  OF  THE  PUBLIC
 AUTHORITIES  LAW.  SUCH  REVENUES  SHALL  ONLY  SUPPLEMENT AND SHALL NOT
 SUPPLANT ANY FEDERAL, STATE, OR LOCAL FUNDS EXPENDED BY THE METROPOLITAN
 TRANSPORTATION AUTHORITY FOR NEW YORK CITY TRANSIT AUTHORITY, THE METRO-
 POLITAN TRANSPORTATION AUTHORITY BUS  COMPANY  OR  STATEN  ISLAND  RAPID
 TRANSIT  OPERATING  AUTHORITY PROJECTS, AND SHALL NOT AFFECT ANY PAYMENT
 BY THE CITY OF NEW YORK PURSUANT TO AGREEMENTS RELATING TO THE METROPOL-
 ITAN TRANSPORTATION AUTHORITY BUS COMPANY AND STATEN ISLAND RAPID TRANS-
 IT OPERATING AUTHORITY.
   § 5. Paragraphs 1 and 2 of subsection (e) of section 1310 of  the  tax
 law, as added by chapter 481 of the laws of 1997, are amended to read as
 follows:
   (1)  Notwithstanding  any  other provision of law to the contrary, any
 city imposing  a  tax  under  this  article  is  hereby  authorized  and
 empowered  to  adopt and amend local laws for any taxable year beginning
 after nineteen hundred ninety-seven, as specified in  such  local  laws,
 providing  for  a credit as provided in paragraph two of this subsection
 against the taxes imposed pursuant to the authority granted  by  section
 thirteen  hundred  one of this article on the city taxable income deter-
 mined pursuant to  sections  thirteen  hundred  four,  thirteen  hundred
 four-A  [and],  thirteen  hundred  four-B AND THIRTEEN HUNDRED FOUR-E of
 this article and on the ordinary income portion of a lump  sum  distrib-
 ution  determined  pursuant  to  section  thirteen hundred one-B of this
 article, to any city resident individual, estate  or  trust  whose  city
 adjusted gross income includes income, gain, loss or deductions from one
 or  more unincorporated businesses conducted by such city resident indi-
 vidual, estate or trust on which a tax is imposed  by  chapter  five  of
 title  eleven  of  the administrative code of the city of New York, or a
 distributive share of income, gain, loss and deductions of,  or  guaran-
 teed  payments  from, one or more partnerships on which a tax is imposed
 by such chapter. Any such local laws may contain  provisions  to  ensure
 that  such credit shall not reduce the tax paid by a city resident below
 that which would be paid by such city resident  if  such  city  resident
 were a city nonresident.
   (2)  (A)  Subject  to  the limitation set forth in subparagraph (B) of
 this paragraph, the credit allowed to a  taxpayer  for  a  taxable  year
 shall be equal to all or a portion of the amount determined in paragraph

 S. 1194                             6
 
 three  of  this subsection, provided, however, such portion shall not be
 less than:
   (i)  If the city taxable income is forty-two thousand dollars or less,
 sixty-five percent of the amount determined in paragraph three  of  this
 subsection.
   (ii)  If  the  city  taxable income is greater than forty-two thousand
 dollars but not greater than one hundred forty-two thousand  dollars,  a
 percentage   of  the  amount  determined  in  paragraph  three  of  this
 subsection to be determined by subtracting from sixty-five percent,  one
 tenth  of  a  percentage point (.001) for every increment of two hundred
 dollars, or fractional part thereof, of city taxable income in excess of
 forty-two thousand dollars.
   (iii) If the city taxable income is greater than one hundred forty-two
 thousand dollars, fifteen percent of the amount determined in  paragraph
 three of this subsection.
   (B)  Notwithstanding  anything  to the contrary in subparagraph (A) of
 this paragraph, the credit allowed to a  taxpayer  for  a  taxable  year
 under  this  subsection shall not exceed the sum of the taxes that would
 otherwise be imposed on such taxpayer for such taxable year pursuant  to
 the authority granted by section thirteen hundred one of this article on
 the city taxable income determined pursuant to sections thirteen hundred
 four,  thirteen  hundred four-A [and], thirteen hundred four-B AND THIR-
 TEEN HUNDRED FOUR-E of this article and on the ordinary  income  portion
 of  a  lump  sum  distribution  determined  pursuant to section thirteen
 hundred one-B of this article, reduced by the credits  allowed  to  such
 taxpayer pursuant to subsections (a), (c) and (d) of this section.
   §  6.  The  opening paragraph of subsection (c) of section 1313 of the
 tax law, as amended by section 8 of part C of chapter 58 of the laws  of
 2005, is amended to read as follows:
   Subject to the provisions of subsection (g) of this section, the comp-
 troller, after reserving such refund fund and such costs shall, commenc-
 ing  on  or  before the fifteenth day of each month, pay to the New York
 city transitional finance authority on a  daily  basis  the  balance  of
 taxes  imposed pursuant to the authority of this article or former arti-
 cle two-E of the general city law to be applied by the authority, in the
 following order of priority: first pursuant to the authority's contracts
 with bondholders, then to pay the  authority's  operating  expenses  not
 otherwise  provided  for,  THEN  TO  A  DEDICATED  PERSONAL  INCOME  TAX
 SURCHARGE FUND PURSUANT TO SUBSECTION (D) OF  SECTION  THIRTEEN  HUNDRED
 FOUR-E  OF  THIS ARTICLE and then pursuant to the authority's agreements
 with the city, which agreements shall require the authority to  transfer
 the  balance  of  such  taxes  not required to meet contractual or other
 obligations of the authority to the city as frequently  as  practicable;
 except that the comptroller shall:
   §  7.  The  administrative  code of the city of New York is amended by
 adding a new section 11-1704.2 to read as follows:
   § 11-1704.2 TAX SURCHARGE FOR TRANSIT INFRASTRUCTURE IMPROVEMENTS  AND
 REDUCED  FARES  FOR LOW-INCOME RESIDENTS OF THE CITY. (A) IN ADDITION TO
 THE TAXES IMPOSED BY SECTIONS 11-1701, 11-1703, 11-1704 AND 11-1704.1 OF
 THIS SUBCHAPTER, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING
 AFTER TWO THOUSAND EIGHTEEN, A TAX SURCHARGE ON THE CITY TAXABLE  INCOME
 OF CERTAIN CITY RESIDENT INDIVIDUALS, ESTATES AND TRUSTS.
   (B) THE TAX SURCHARGE IMPOSED PURSUANT TO THIS SECTION SHALL BE DETER-
 MINED AS FOLLOWS:
   (1)  RESIDENT  MARRIED  INDIVIDUALS  FILING JOINT RETURNS AND RESIDENT
 SURVIVING SPOUSES. THE TAX SURCHARGE UNDER  THIS  SECTION  ON  THE  CITY

 S. 1194                             7
 
 TAXABLE  INCOME  OF CERTAIN CITY RESIDENT MARRIED INDIVIDUALS WHO MAKE A
 SINGLE RETURN JOINTLY WITH HIS OR HER SPOUSE UNDER  SUBDIVISION  (B)  OF
 SECTION  11-1751  OF  THIS  CHAPTER  AND  ON  THE CITY TAXABLE INCOME OF
 CERTAIN  CITY  RESIDENT SURVIVING SPOUSES SHALL BE DETERMINED IN ACCORD-
 ANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:        THE TAX SURCHARGE IS:
   OVER $1,000,000                       .534% OF EXCESS OVER $1,000,000
   (2) RESIDENT HEADS OF HOUSEHOLDS. THE TAX SURCHARGE UNDER THIS SECTION
 ON THE CITY TAXABLE INCOME OF CERTAIN CITY RESIDENT HEADS OF  HOUSEHOLDS
 SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:           THE TAX SURCHARGE IS:
   OVER $750,000                            .534% OF EXCESS OVER $750,000
   (3)  RESIDENT  UNMARRIED  INDIVIDUALS,  RESIDENT  MARRIED  INDIVIDUALS
 FILING SEPARATE  RETURNS  AND  RESIDENT  ESTATES  AND  TRUSTS.  THE  TAX
 SURCHARGE  UNDER THIS SECTION ON THE CITY TAXABLE INCOME OF CERTAIN CITY
 RESIDENT INDIVIDUALS WHO ARE NOT CITY RESIDENT MARRIED  INDIVIDUALS  WHO
 MAKE  A  SINGLE  RETURN JOINTLY WITH HIS OR HER SPOUSE UNDER SUBDIVISION
 (B) OF SECTION 11-1751 OF THIS CHAPTER OR CITY RESIDENT HEADS OF  HOUSE-
 HOLDS OR CITY RESIDENT SURVIVING SPOUSES, AND ON THE CITY TAXABLE INCOME
 OF  CERTAIN  CITY  RESIDENT  ESTATES  AND  TRUSTS SHALL BE DETERMINED IN
 ACCORDANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY:
   IF THE CITY TAXABLE INCOME IS:           THE TAX SURCHARGE IS:
   OVER $500,000                            .534% OF EXCESS OVER $500,000
   (C) THE TAX SURCHARGE IMPOSED PURSUANT TO THIS SECTION SHALL BE ADMIN-
 ISTERED AND COLLECTED IN THE SAME MANNER AS THE TAXES  IMPOSED  PURSUANT
 TO  SECTIONS  11-1701,  11-1703,  11-1704  AND  11-1704.1,  AND SHALL BE
 DISTRIBUTED IN ACCORDANCE WITH SUBSECTION (D) OF SECTION 1304-E  OF  THE
 TAX  LAW,  AND  ALL OF THE PROVISIONS OF THIS CHAPTER, INCLUDING SECTION
 11-1706 OF THIS SUBCHAPTER, AND SECTIONS 11-1721  AND  11-1773  OF  THIS
 CHAPTER,  SHALL  APPLY  TO  THE  TAX  SURCHARGE IMPOSED PURSUANT TO THIS
 SECTION.
   § 8. Paragraphs 1 and 2 of subdivision (c) of section 11-1706  of  the
 administrative  code of the city of New York, as added by chapter 481 of
 the laws of 1997, subparagraph (A) of paragraph 2 as  amended  by  local
 law  number 35 of the city of New York for the year 2007, are amended to
 read as follows:
   (1) A city resident individual, estate or trust  whose  city  adjusted
 gross  income includes income, gain, loss or deductions from one or more
 unincorporated businesses conducted by such  city  resident  individual,
 estate  or  trust that are subject to the tax imposed by chapter five of
 this title, or a distributive share of income, gain, loss and deductions
 of, or guaranteed payments from,  one  or  more  partnerships  that  are
 subject to the tax imposed by such chapter, shall be allowed a credit as
 provided  in paragraph two of this subdivision against the tax otherwise
 due under  sections  11-1701,  11-1703,  11-1704  [and],  11-1704.1  AND
 11-1704.2 of this [chapter] SUBCHAPTER.
   (2)  (A)  Subject  to  the limitation set forth in subparagraph (B) of
 this paragraph, the credit allowed to a  taxpayer  for  a  taxable  year
 under this subdivision shall be determined as follows:
   (i)  For  taxable  years beginning on or after January first, nineteen
 hundred ninety-seven and before January first, two thousand seven:

 S. 1194                             8
 
   (I) If the city taxable income is forty-two thousand dollars or  less,
 the credit shall be sixty-five percent of the amount determined in para-
 graph three of this subdivision.
   (II)  If  the  city  taxable income is greater than forty-two thousand
 dollars but not greater than one hundred forty-two thousand dollars, the
 amount of the credit shall be a percentage of the amount  determined  in
 paragraph three of this subdivision, such percentage to be determined by
 subtracting  from  sixty-five  percent,  one-tenth of a percentage point
 (.001) for every increment of two hundred dollars,  or  fractional  part
 thereof, of city taxable income in excess of forty-two thousand dollars.
   (III) If the city taxable income is greater than one hundred forty-two
 thousand  dollars,  the  credit  shall  be fifteen percent of the amount
 determined in paragraph three of this subdivision.
   (ii) For taxable years beginning on or after January first, two  thou-
 sand seven:
   (I)  If the city taxable income is forty-two thousand dollars or less,
 the credit shall be one hundred percent  of  the  amount  determined  in
 paragraph three of this subdivision.
   (II)  If  the  city  taxable income is greater than forty-two thousand
 dollars but less than one hundred forty-two thousand dollars, the amount
 of the credit shall be a percentage of the amount  determined  in  para-
 graph  three  of  this  subdivision, such percentage to be determined by
 subtracting  from  one  hundred  percent,  a  percentage  determined  by
 subtracting  forty-two thousand dollars from city taxable income, divid-
 ing the result by one hundred thousand dollars and multiplying by seven-
 ty-seven percent.
   (III) If the city taxable income is  one  hundred  forty-two  thousand
 dollars  or  greater,  the  credit  shall be twenty-three percent of the
 amount determined in paragraph three of this subdivision.
   (B) Notwithstanding anything to the contrary in  subparagraph  (A)  of
 this  paragraph,  the  credit  allowed  to a taxpayer for a taxable year
 under this subdivision shall not exceed the sum of the taxes that  would
 otherwise  be  imposed  by  sections  11-1701,  11-1703,  11-1704 [and],
 11-1704.1 AND 11-1704.2 of this [chapter] SUBCHAPTER  on  such  taxpayer
 for  such  taxable year after the allowance of any other credits allowed
 by this section or section 11-1721 of this chapter.
   § 9. This act shall take effect immediately and  shall  be  deemed  to
 have  been  in  full  force  and  effect  on  and after January 1, 2021;
 provided that subdivision 9 of section 1205 of  the  public  authorities
 law,  as  added by section one of this act, shall take effect January 1,
 2022.