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SECTION 624
Computation of separate tax on the ordinary income portion of lump sum distributions received by resident individuals, estates and trusts
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 2
§ 624. Computation of separate tax on the ordinary income portion of
lump sum distributions received by resident individuals, estates and
trusts. (a) Amount of separate tax. The amount of tax imposed under
section six hundred three for any taxable year, with respect to the
ordinary income portion of a lump sum distribution received by a
resident individual, estate or trust is an amount equal to five times
the tax which would be imposed by subsection (c) of section six hundred
one if the recipient of such lump sum distribution were an individual
referred to in such subsection and the New York taxable income were an
amount equal to one-fifth of the excess of:

(1) the total taxable amount of the lump sum distribution for the
taxable year, over

(2) the minimum distribution allowance.

(b) Minimum distribution allowance. For purposes of this section, the
minimum distribution allowance shall be that which is calculated
according to subparagraph (C) of paragraph one of subsection (e) of
section four hundred two of the internal revenue code.

(c) Multiple distributions and distributions of annuity contracts. For
purposes of this section, the rules concerning multiple distributions
and distributions of annuity contracts as specified by paragraph two of
subsection (e) of section four hundred two of the internal revenue code
shall be applicable, except that references to "paragraph (1) (A)" shall
be deemed to be references to this section, and except that only lump
sum distributions (or portions thereof) and distributions of annuity
contracts subject to tax under this article shall be included, and
except that references to the secretary shall be deemed to be references
to the tax commission.

(d) Definitions and special rules. For purposes of this section, the
following provisions shall apply, to the extent applicable to the
taxpayer's federal tax on lump sum distributions: (1) the definitions
and special rules as specified in paragraph four of subsection (e) of
section four hundred two of the internal revenue code; and (2) the
special rules relating to (A) individuals who have attained the age of
fifty before January first, nineteen hundred eighty-six and (B) capital
gains, as specified in paragraphs three, four, five and six of
subsection (h) of section eleven hundred twenty-two of the tax reform
act of nineteen hundred eighty-six as enacted by public law 99-514, but
(i) in the event that paragraph three of such subsection is applicable,
clause (ii) of subparagraph (B) of such paragraph shall be applied using
a rate of five and four-tenths percent, and (ii) in the event that
paragraph five of such subsection is applicable, the words "five" and
"one-fifth" in subsection (a) of this section shall be read as "ten" and
"one-tenth", respectively, and subsection (a) of this section shall be
applied by using the rate of tax specified in subsection (f) of section
six hundred two as such subsection was in effect for taxable years
beginning in nineteen hundred eighty-six.