Senate Bill S3623

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3623
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2025
                                ___________
 
 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
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  public  authorities  law  is amended by adding a new
 section 1270-k to read as follows:
   § 1270-K. 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.
   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.
   3. MONEYS IN THE NEW YORK CITY DEDICATED PERSONAL INCOME TAX SURCHARGE
 FUND (A) SHALL BE USED TO FUND CAPITAL PROJECTS THAT SATISFY THE FOLLOW-
 ING 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  STRUCTURES,  SIGNALS AND COMMUNICATIONS, TRACTION POWER, SHOPS AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08068-01-5
              

 S. 3623                             2
 
 YARDS, DEPOTS, SERVICE VEHICLES, PASSENGER STATION PROJECTS,  AS  NEEDED
 TO  COMPLY WITH THE AMERICANS WITH DISABILITIES ACT, STATEN ISLAND RAIL-
 WAY 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-FIVE TO FINANCE CAPI-
 TAL 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 NEW YORK
 CITY DEDICATED  PERSONAL INCOME TAX SURCHARGE FUND 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 NEW
 YORK  CITY  DEDICATED  PERSONAL  INCOME TAX SURCHARGE FUND TO THE EXTENT
 NECESSARY TO MAKE PAYMENTS PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVI-
 SION.  AFTER MAKING SUCH PAYMENTS, MONEYS DEPOSITED IN THE NEW YORK CITY
 DEDICATED PERSONAL INCOME TAX SURCHARGE  FUND  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
 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. TWICE EACH CALENDAR YEAR, THE MAYOR OF THE CITY OF NEW  YORK  SHALL
 CONDUCT  A REVIEW OF THE AMOUNT OF MONEYS DEPOSITED IN THE NEW YORK CITY
 DEDICATED  PERSONAL INCOME TAX SURCHARGE FUND. TO THE EXTENT SUCH REVIEW
 INDICATES THAT THE MONEYS IN THE NEW YORK CITY DEDICATED PERSONAL INCOME
 TAX SURCHARGE FUND ARE SUFFICIENT TO SATISFY  THE  REQUIREMENTS  OF  ANY
 DEBT  SERVICE  INCURRED IN SUCH CALENDAR YEAR AS A RESULT OF OBLIGATIONS
 ISSUED AND SECURED PURSUANT TO PARAGRAPH (B)  OF  SUBDIVISION  THREE  OF
 THIS SECTION.
   §  2.  Subdivision 5 of section 2799-hh of the public authorities law,
 as amended by section 6 of subpart B of part MM of  chapter  59  of  the
 laws of 2022, is amended to read as follows:
   5.  Tax  revenues received by the authority pursuant to subsection (d)
 of section eight hundred  seventy-three,  or  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-
 S. 3623                             3

 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.
   §  3. The tax law is amended by adding a new section 1304-E to read as
 follows:
   § 1304-E. TAX SURCHARGE FOR TRANSIT INFRASTRUCTURE  IMPROVEMENTS.  (A)
 IN  ADDITION  TO THE TAXES AUTHORIZED BY SUBSECTION (A) OF SECTION THIR-
 TEEN 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 TWENTY-
 FOUR, A TAX SURCHARGE ON THE CITY TAXABLE INCOME OF CERTAIN  CITY  RESI-
 DENT INDIVIDUALS, 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 THEIR 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 ACCORD-
 ANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR:
   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-FOUR:
   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 THEIR 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 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-FOUR:
   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
 S. 3623                             4
 
 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
 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.
   (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  IN  ACCORDANCE
 WITH  THE  PROVISIONS  OF SECTION TWELVE HUNDRED SEVENTY-K 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.
   §  4.  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
 three of this subsection, provided, however, such portion shall  not  be
 less than:
 S. 3623                             5
 
   (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.
   §  5.  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:
   §  6.  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. (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 TAXA-
 BLE  YEAR  BEGINNING  AFTER TWO THOUSAND TWENTY-FOUR, 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
 TAXABLE  INCOME  OF CERTAIN CITY RESIDENT MARRIED INDIVIDUALS WHO MAKE A
 SINGLE RETURN JOINTLY WITH THEIR SPOUSE UNDER SUBDIVISION (B) OF SECTION
 S. 3623                             6

 11-1751 OF THIS CHAPTER 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-FOUR:
   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-FOUR:
   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 THEIR SPOUSE UNDER SUBDIVISION (B)  OF
 SECTION  11-1751 OF THIS CHAPTER OR CITY RESIDENT HEADS OF HOUSEHOLDS OR
 CITY RESIDENT SURVIVING SPOUSES, AND  ON  THE  CITY  TAXABLE  INCOME  OF
 CERTAIN  CITY RESIDENT ESTATES AND TRUSTS SHALL BE DETERMINED IN ACCORD-
 ANCE WITH THE FOLLOWING TABLE:
   FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR:
   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.
   § 7. 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:
   (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.
 S. 3623                             7

   (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.
   § 8. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after January 1, 2025.