S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7667
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 31, 2023
                                ___________
 
 Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, the administrative code of the city of  New
   York, chapter 877 of the laws of 1975, chapter 884 of the laws of 1975
   and  chapter  882  of  the laws of 1977, relating to the imposition of
   certain taxes in the city of New York, in relation to  postponing  the
   expiration of certain tax rates and taxes in the city of New York
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3 of subdivision (a) of section 1212-a of the tax
 law, as amended by section 1 of subpart G of part XXX of chapter  58  of
 the laws of 2020, is amended to read as follows:
   (3)  a tax, at the same uniform rate, but at a rate not to exceed four
 and one-half per centum, in multiples of one-half of one per centum,  on
 the  receipts from every sale of any or all of the following services in
 whole or in part: credit rating, credit reporting, credit adjustment and
 collection services, including,  but  not  limited  to,  those  services
 provided  by  mercantile and consumer credit rating or reporting bureaus
 or agencies and credit adjustment or  collection  bureaus  or  agencies,
 whether  rendered in written or oral form or in any other manner, except
 to the extent otherwise taxable under article twenty-eight of this chap-
 ter;  notwithstanding  the  foregoing,  collection  services  shall  not
 include those services performed by a law office or a law and collection
 office,  the maintenance or conduct of which constitutes the practice of
 law, if the services are performed by an attorney at law  who  has  been
 duly  licensed and admitted to practice law in this state. The local law
 imposing the taxes authorized by this paragraph may provide  for  exclu-
 sions  and  exemptions  in  addition to those provided for in such para-
 graph. Provided, however, that the tax hereby authorized  shall  not  be
 imposed   after   November   thirtieth,   two   thousand  [twenty-three]
 TWENTY-SIX.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11209-01-3
              

 A. 7667                             2
 
   § 2. Subsection (a) of section 1301 of the  tax  law,  as  amended  by
 section 2 of subpart G of part XXX of chapter 58 of the laws of 2020, is
 amended to read as follows:
   (a)  Notwithstanding  any  other provision of law to the contrary, any
 city in this state having a population of one million or  more  inhabit-
 ants,  acting  through  its local legislative body, is hereby authorized
 and empowered to adopt and amend local laws imposing in any  such  city,
 for taxable years beginning after nineteen hundred seventy-five:
   (1)  a  tax  on  the personal income of residents of such city, at the
 rates provided for under subsection (a) of section thirteen hundred four
 of this article for taxable years beginning before two  thousand  [twen-
 ty-four]  TWENTY-SEVEN,  and  at the rates provided for under subsection
 (b) of section thirteen hundred four of this article for  taxable  years
 beginning after two thousand [twenty-three] TWENTY-SIX, provided, howev-
 er,  that if, for any taxable year beginning after two thousand [twenty-
 three] TWENTY-SIX, the rates  set  forth  in  such  subsection  (b)  are
 rendered inapplicable and the rates set forth in such subsection (a) are
 rendered  applicable, then the tax for such taxable year shall be at the
 rates provided under subparagraphs (A) of paragraphs one, two and  three
 of such subsection (a),
   (2)  for taxable years beginning after nineteen hundred seventy-six, a
 separate tax on the ordinary income portion of lump sum distributions of
 such residents, at the rates provided  for  herein,  such  taxes  to  be
 administered,  collected and distributed by the commissioner as provided
 for in this article.
   § 3. Subsection (b) of section 1304 of the  tax  law,  as  amended  by
 section 3 of subpart G of part XXX of chapter 58 of the laws of 2020, is
 amended to read as follows:
   (b)  A  tax  other  than  the city separate tax on the ordinary income
 portion of lump sum distributions imposed pursuant to the  authority  of
 section  thirteen  hundred  one  of  this article shall be determined as
 follows:
   (1) Resident married individuals filing  joint  returns  and  resident
 surviving  spouses.  The tax under this section for each taxable year on
 the city taxable income of every city resident  married  individual  who
 makes  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 every city resident surviving spouse shall be deter-
 mined in accordance with the following table:
 
   For taxable years beginning after two thousand [twenty-three]  TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $21,600                       1.18% of the city taxable income
 Over $21,600 but not                   $255 plus 1.435% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $591 plus 1.455% of excess
 over $90,000                             over $45,000
 Over $90,000                           $1,245 plus 1.48% of excess
                                          over $90,000
 
   (2)  Resident heads of households. The tax under this section for each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following table:
 A. 7667                             3
 
   For taxable years beginning after two thousand [twenty-three]  TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       1.18% of the city taxable income
 Over $14,400 but not                   $170 plus 1.435% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $394 plus 1.455% of excess
 over $60,000                             over $30,000
 Over $60,000                           $830 plus 1.48% of excess
                                          over $60,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single  return  jointly  with  his  or  her  spouse under
 subsection (b) of section thirteen hundred six of this article or a city
 resident head of household or a city resident surviving spouse,  and  on
 the city taxable income of every city resident estate and trust shall be
 determined in accordance with the following table:
 
   For  taxable years beginning after two thousand [twenty-three] TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       1.18% of the city taxable income
 Over $12,000 but not                   $142 plus 1.435% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $328 plus 1.455% of excess
 over $50,000                             over $25,000
 Over $50,000                           $692 plus 1.48% of excess
                                          over $50,000
   § 4. Subsection (a) of section 1304-B of the tax law,  as  amended  by
 section 4 of subpart G of part XXX of chapter 58 of the laws of 2020, is
 amended to read as follows:
   (a) (1) In addition to any other taxes authorized by 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 begin-
 ning after nineteen hundred ninety but before two thousand [twenty-four]
 TWENTY-SEVEN, an additional tax on the city taxable income of every city
 resident individual, estate and trust, to be calculated for each taxable
 year as follows: (i) for each  taxable  year  beginning  after  nineteen
 hundred  ninety  but before nineteen hundred ninety-nine, at the rate of
 fourteen percent of the sum of the taxes  for  each  such  taxable  year
 determined  pursuant  to section thirteen hundred four and section thir-
 teen hundred four-A of this article; and  (ii)  for  each  taxable  year
 beginning  after  nineteen hundred ninety-eight, at the rate of fourteen
 percent of the tax for such taxable year  determined  pursuant  to  such
 section thirteen hundred four.
   (2) Notwithstanding paragraph one of this subsection, for each taxable
 year  beginning  after nineteen hundred ninety-nine but before two thou-
 sand [twenty-four] TWENTY-SEVEN, any city imposing such  additional  tax
 may  by  local  law impose such tax at a rate that is less than fourteen
 percent and may impose such tax at more than one rate depending upon the
 A. 7667                             4
 
 filing status and city taxable income of such city resident  individual,
 estate or trust.
   (3)  A  local law enacted pursuant to paragraph two of this subsection
 shall be applicable with respect to any taxable year only if it has been
 enacted on or before July thirty-first of such year. A certified copy of
 such local law shall be mailed by registered mail to the  department  at
 its  office in Albany within fifteen days of its enactment. However, the
 department may allow additional time  for  such  certified  copy  to  be
 mailed  if  it  deems such action to be consistent with its duties under
 this article.
   § 5. Paragraph E of subdivision 1 of section 11-604 of the administra-
 tive code of the city of New York, as amended by section 5 of subpart  G
 of  part  XXX  of  chapter 58 of the laws of 2020, is amended to read as
 follows:
   E. For taxable years beginning on or  after  January  first,  nineteen
 hundred  seventy-eight  but  before January first, two thousand [twenty-
 four] TWENTY-SEVEN, the tax imposed by subdivision one of section 11-603
 of this subchapter shall be, in the case of each taxpayer:
   (a) whichever of the following amounts is the greatest:
   (1) an amount computed, for taxable years  beginning  before  nineteen
 hundred  eighty-seven,  at  the rate of nine per centum, and for taxable
 years beginning after nineteen hundred eighty-six, at the rate of  eight
 and  eighty-five  one-hundredths per centum, of its entire net income or
 the portion of such entire net income allocated within the city as here-
 inafter provided, subject to any modification required by paragraphs (d)
 and (e) of subdivision three of this section,
   (2) an amount computed at one and one-half mills for  each  dollar  of
 its  total business and investment capital, or the portion thereof allo-
 cated within the city, as hereinafter provided, except that in the  case
 of  a cooperative housing corporation as defined in the internal revenue
 code, the applicable rate shall be four-tenths of one mill,
   (3) an amount computed, for taxable years  beginning  before  nineteen
 hundred  eighty-seven,  at  the rate of nine per centum, and for taxable
 years beginning after nineteen hundred eighty-six, at the rate of  eight
 and  eighty-five  one-hundredths per centum, on thirty per centum of the
 taxpayer's entire net income plus salaries and other  compensation  paid
 to the taxpayer's elected or appointed officers and to every stockholder
 owning  in  excess  of five per centum of its issued capital stock minus
 fifteen thousand dollars (subject to proration as hereinafter  provided)
 and  any  net  loss for the reported year, or on the portion of any such
 sum allocated within the city as hereinafter provided for the allocation
 of entire net income, subject to any modification required by paragraphs
 (d) and (e) of subdivision three of  this  section,  provided,  however,
 that  for  taxable  years  beginning  on  or  after July first, nineteen
 hundred ninety-six, the provisions of paragraph H  of  this  subdivision
 shall apply for purposes of the computation under this clause, or
   (4)  for  taxable  years  ending on or before June thirtieth, nineteen
 hundred eighty-nine, one hundred twenty-five dollars, for taxable  years
 ending  after June thirtieth, nineteen hundred eighty-nine and beginning
 before two thousand nine, three hundred dollars, and for  taxable  years
 beginning after two thousand eight:
     If New York city receipts are:          Fixed dollar minimum tax is:
   Not more than $100,000                              $25
   More than $100,000 but not over $250,000            $75
   More than $250,000 but not over $500,000            $175
   More than $500,000 but not over $1,000,000          $500
 A. 7667                             5
 
   More than $1,000,000 but not over $5,000,000        $1,500
   More than $5,000,000 but not over $25,000,000       $3,500
   Over $25,000,000                                    $5,000
 For  purposes  of  this  clause, New York city receipts are the receipts
 computed in accordance with subparagraph two of paragraph (a) of  subdi-
 vision  three  of  this  section for the taxable year. For taxable years
 beginning after two thousand eight, if the taxable  year  is  less  than
 twelve  months, the amount prescribed by this clause shall be reduced by
 twenty-five percent if the period for which the taxpayer is  subject  to
 tax  is  more than six months but not more than nine months and by fifty
 percent if the period for which the taxpayer is subject to  tax  is  not
 more  than  six  months. If the taxable year is less than twelve months,
 the amount of New York city receipts for  purposes  of  this  clause  is
 determined  by  dividing the amount of the receipts for the taxable year
 by the number of months in the taxable year and multiplying  the  result
 by twelve, plus;
   (b)  an  amount  computed  at the rate of three-quarters of a mill for
 each dollar of the portion of its subsidiary  capital  allocated  within
 the city as hereinafter provided.
   In  the  case  of a taxpayer which is not subject to tax for an entire
 year, the exemption allowed in clause three of subparagraph (a) of  this
 paragraph  shall  be  prorated according to the period such taxpayer was
 subject to tax. Provided, however, that this paragraph shall  not  apply
 to  taxable  years  beginning  after December thirty-first, two thousand
 [twenty-three] TWENTY-SIX.   For the  taxable  years  specified  in  the
 preceding sentence, the tax imposed by subdivision one of section 11-603
 of this subchapter shall be, in the case of each taxpayer, determined as
 specified  in  paragraph  A of this subdivision, provided, however, that
 the provisions of paragraphs G and H of this subdivision shall apply for
 purposes of the computation under clause three of  subparagraph  (a)  of
 such paragraph A.
   §  6.  The  opening paragraph of section 11-1701 of the administrative
 code, as amended by section 6 of subpart G of part XXX of chapter 58  of
 the laws of 2020, is amended to read as follows:
   A tax is hereby imposed on the city taxable income of every city resi-
 dent  individual,  estate  and  trust  determined in accordance with the
 rates set forth in subdivision (a) of this  section  for  taxable  years
 beginning before two thousand [twenty-four] TWENTY-SEVEN, and in accord-
 ance  with  the  rates  set forth in subdivision (b) of this section for
 taxable years beginning after two  thousand  [twenty-three]  TWENTY-SIX.
 Provided,  however,  that  if,  for any taxable year beginning after two
 thousand [twenty-three] TWENTY-SIX, the rates set forth in such subdivi-
 sion (b) are rendered inapplicable and  the  rates  set  forth  in  such
 subdivision  (a)  are rendered applicable, then the tax for such taxable
 year shall be at the rates provided under subparagraph (A) of paragraphs
 one, two and three of such subdivision (a).
   § 7. Subdivision (b) of section 11-1701 of the administrative code  of
 the  city  of New York, as amended by section 7 of subpart G of part XXX
 of chapter 58 of the laws of 2020, is amended to read as follows:
   (b) Rate of tax. A tax imposed  pursuant  to  this  section  shall  be
 determined as follows:
   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with his or her spouse  under  subdivision
 (b)  of  section 11-1751 of this title and on the city taxable income of
 A. 7667                             6
 
 every city resident surviving spouse shall be determined  in  accordance
 with the following table:
   For  taxable years beginning after two thousand [twenty-three] TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $21,600                       1.18% of the city taxable income
 Over $21,600 but not                   $255 plus 1.435% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $591 plus 1.455% of excess
 over $90,000                             over $45,000
 Over $90,000                           $1,245 plus 1.48% of excess
                                          over $90,000
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following table:
   For  taxable years beginning after two thousand [twenty-three] TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       1.18% of the city taxable income
 Over $14,400 but not                   $170 plus 1.435% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $394 plus 1.455% of excess
 over $60,000                             over $30,000
 Over $60,000                           $830 plus 1.48% of excess
                                          over $60,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing  separate  returns and resident estates and trusts. The tax under
 this section for each taxable year on the city taxable income  of  every
 city  resident  individual  who  is not a married individual who makes a
 single return jointly with his or her spouse under  subdivision  (b)  of
 section  11-1751 of this title or a city resident head of a household or
 a city resident surviving spouse, and on  the  city  taxable  income  of
 every  city  resident estate and trust shall be determined in accordance
 with the following table:
   For taxable years beginning after two thousand [twenty-three]  TWENTY-
 SIX:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       1.18% of the city taxable income
 Over $12,000 but not                   $142 plus 1.435% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $328 plus 1.455% of excess
 over $50,000                             over $25,000
 Over $50,000                           $692 plus 1.48% of excess
                                          over $50,000
 
   § 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin-
 istrative  code  of  the  city  of  New York, as amended by section 8 of
 subpart G of part XXX of chapter 58 of the laws of 2020, is  amended  to
 read as follows:
   (1)  In  addition to any other taxes imposed by this chapter, there is
 hereby imposed for each taxable year beginning  after  nineteen  hundred
 ninety but before two thousand [twenty-four] TWENTY-SEVEN, an additional
 A. 7667                             7
 
 tax on the city taxable income of every city resident individual, estate
 and  trust,  to  be calculated for each taxable year as follows: (i) for
 each taxable year beginning after nineteen  hundred  ninety  but  before
 nineteen hundred ninety-nine, at the rate of fourteen percent of the sum
 of  the  taxes for each such taxable year determined pursuant to section
 11-1701 and section 11-1704 of this subchapter; and (ii) for each  taxa-
 ble  year  beginning after nineteen hundred ninety-eight, at the rate of
 fourteen percent of the tax for such taxable year determined pursuant to
 such section 11-1701.
   § 9. Subdivision (a) of section 11-2002 of the administrative code  of
 the  city  of New York, as amended by section 9 of subpart G of part XXX
 of chapter 58 of the laws of 2020, is amended to read as follows:
   (a) There are hereby imposed and there shall be paid  sales  taxes  at
 the rate of four and one-half percent on receipts from every sale of the
 services  of  beauty, barbering, hair restoring, manicuring, pedicuring,
 electrolysis, massage services and similar services, and every  sale  of
 services  by  weight  control salons, health salons, gymnasiums, turkish
 and sauna bath and similar establishments and every charge for  the  use
 of  such  facilities,  whether  or not any tangible personal property is
 transferred in conjunction therewith; but excluding services rendered by
 a physician, osteopath, dentist, nurse,  physiotherapist,  chiropractor,
 podiatrist,  optometrist,  ophthalmic  dispenser  or a person performing
 similar services licensed under title eight of  the  education  law,  as
 amended,  and  excluding  such services when performed on pets and other
 animals, as authorized by subdivision  (a)  of  section  twelve  hundred
 twelve-A  of the tax law. Provided, however, that the tax hereby imposed
 shall not be imposed after November  thirtieth,  two  thousand  [twenty-
 three] TWENTY-SIX.
   §  10.  The opening paragraph of subdivision (a) of section 11-2040 of
 the administrative code of the city of New York, as amended  by  section
 10  of  subpart  G  of  part  XXX  of chapter 58 of the laws of 2020, is
 amended to read as follows:
   There is hereby imposed within the city and there shall be paid a  tax
 at  the  rate  of four and one-half percent upon the receipts from every
 sale, except for resale, of the following services,  provided,  however,
 that  the tax hereby imposed shall not be imposed after November thirti-
 eth, two thousand [twenty-three] TWENTY-SIX, on receipts from  sales  of
 the services specified in paragraph one of this subdivision:
   §  11.  Section  4 of chapter 877 of the laws of 1975, relating to the
 imposition of certain taxes in the city  of  New  York,  as  amended  by
 section  11  of subpart G of part XXX of chapter 58 of the laws of 2020,
 is amended to read as follows:
   § 4. This act shall expire on  December  31,  [2023]  2026,  provided,
 however,  that  it is hereby declared to be the express intention of the
 legislature that the provisions of sections two and three of  this  act,
 except with respect to the enforcement and collection of any tax arising
 thereunder, shall remain in full force and effect only until the date of
 such expiration, at which time the provisions of law amended by this act
 shall be continued in full force and effect as they existed prior to the
 enactment of this act.
   §  12.  Section  6 of chapter 884 of the laws of 1975, relating to the
 imposition of certain taxes in the city  of  New  York,  as  amended  by
 section  12  of subpart G of part XXX of chapter 58 of the laws of 2020,
 is amended to read as follows:
   § 6. This act shall expire on  December  31,  [2023]  2026,  provided,
 however,  that  it is hereby declared to be the express intention of the
 A. 7667                             8
 
 legislature that the provisions of sections two, three and four of  this
 act,  except  with  respect to the enforcement and collection of any tax
 arising thereunder, shall remain in full force and effect only until the
 date  of such expiration, at which time the provisions of law amended by
 this act shall be continued in full force and  effect  as  they  existed
 prior to the enactment of this act.
   §  13.  Section  2 of chapter 882 of the laws of 1977, relating to the
 imposition of certain taxes in the city  of  New  York,  as  amended  by
 section  13  of subpart G of part XXX of chapter 58 of the laws of 2020,
 is amended to read as follows:
   § 2. This act shall expire on  December  31,  [2023]  2026,  provided,
 however,  that  it is hereby declared to be the express intention of the
 legislature that the provisions of section one of this act, except  with
 respect to the enforcement and collection of any tax arising thereunder,
 shall  remain in full force and effect only until the date of such expi-
 ration, at which time the provisions of law amended by this act shall be
 continued in full force and effect as they existed prior to  the  enact-
 ment of this act.
   § 14. This act shall take effect immediately.