§ 15-126. Change of residency status.

A. General. If an individual changes his/her status during his/her
taxable year from resident to nonresident, or from nonresident to
resident, he/she shall file a return as a nonresident for the portion of
the year during which he/she is a nonresident if he/she is subject to
the tax imposed by this article or, if not subject to such tax, an
information return for the portion of the year during which he/she is a
nonresident, subject to such exceptions as the State Tax Commission may
prescribe by regulation. Such information return shall be due at the
same time as the return required by Article IX of this chapter for the
portion of the year during which such individual is a resident.

B. City of Yonkers taxable wages and net earnings from self-employment
for portion of year individual is a nonresident. The City of Yonkers
taxable wages and net earnings from self-employment for the portion of
the year during which the taxpayer is a nonresident shall be determined,
except as provided in Subsection C, under this article as if his/her
taxable year for federal income tax purposes were limited to the period
of his/her nonresident status.

C. Special accruals.

(1) If an individual changes his/her status from resident to
nonresident, he/she shall, regardless of his/her method of accounting,
accrue for the portion of the taxable year prior to such change of
status any items of income, gain, loss or deduction accruing prior to
the change of status, if not otherwise properly includable (whether or
not because of an election to report on an installment basis) or
allowable for City of Yonkers earnings tax purposes for such portion of
the taxable year or a prior taxable year. The amounts of such accrued
items shall be determined as such accrued items were includable or
allowable for federal self-employment tax purposes.

(2) If an individual changes his/her status from nonresident to
resident, he/she shall, regardless of his method of accounting, accrue
for the portion of the taxable year prior to such change of status any
items of income, gain, loss or deduction accruing prior to the change of
status, if not otherwise properly includable (whether or not because of
such an election to report on an installment basis) or allowable for
federal self-employment tax purposes for such portion of the taxable
year or a prior taxable year. The amounts of such accrued items shall be
determined as if such accrued items were includable or allowable for
federal self-employment tax purposes.

(3) No item of income, gain, loss or deduction which is accrued under
this subsection shall be taken into account in determining city-adjusted
wages earned or net earnings from self-employment within the City of
Yonkers for any subsequent taxable period.

(4) Where an individual changes his/her status from resident to
nonresident, the accruals under this subsection shall not be required if
the individual files with the State Tax Commission a bond or other
security acceptable to the Commission, conditioned upon the inclusion of
amounts accruable under this subsection in the determination of the City
of Yonkers income tax surcharge under this Article X hereof for one (1)
or more subsequent taxable years as if the individual had not changed
his/her resident status. In such event, the tax under this article shall
not apply to such amounts.

D. Prorations. Where an individual changes his/her status during
his/her taxable year from resident to nonresident or from nonresident to
resident, the exclusion allowable under § 15-116B shall be prorated,
under regulations of the State Tax Commission, to reflect the portions
of the entire taxable year during which the individual was a resident
and a nonresident.